Document:

SALE AND PURCHASE AGREEMENT

                                     BETWEEN

                           THE SELLER POOL COMPANIES,
                            as set forth on Exhibit A
                                    (SELLER)

                                       AND

                               PGI-WvF 180 , L.P.
                                   (PURCHASER)

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                                TABLE OF CONTENTS

Section                                                             Page

                                    ARTICLE I

                                    RECITALS

  1.1    Real Property.................................................1
  1.2    Personal Property.............................................1
  1.3    Purchase and Sale.............................................1

                                   ARTICLE II

                                 PURCHASE PRICE

  2.1    Price.........................................................2
         2.1.1   Deposit...............................................2
         2.1.2   Balance of Purchase Price.............................2
  2.2    Investment....................................................2
  2.3    Interest on the Cash Deposit..................................3

                                   ARTICLE III

                              DUE DILIGENCE PERIOD

  3.1    Due Diligence Materials.......................................3
  3.2    Inspection of Property........................................3
  3.3    Title and Survey..............................................4
  3.4    Violations....................................................5
  3.5    Seller's Obligations During Due Diligence Period..............6
         3.5.1   27th Floor............................................6
         3.5.2   Authority of Seller...................................6
  3.6    Intentionally Deleted.........................................6
  3.7    Seller's Payment to Purchaser.................................7
  3.8    Purchaser's Termination Rights................................7

                                   ARTICLE IV

                     CONDITIONS TO THE PARTIES' OBLIGATIONS

  4.1    Conditions to Purchaser's Obligation to Purchase..............8
         4.1.1   Performance by Seller.................................8
         4.1.2   Delivery of Title and Possession.....................10
         4.1.3   Tenant Estoppels.....................................10

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         4.1.4   Seller's Representations.............................12
         4.1.5   No Breach............................................12
  4.2    Conditions to Seller's Obligation to Sell....................12
         4.2.1   Performance by Purchaser.............................12
         4.2.2   Receipt of Purchase Price............................12

                                    ARTICLE V

                        PURCHASER'S DELIVERIES TO SELLER

  5.1    Deliveries...................................................12
         5.1.1   Purchase Price.......................................12
         5.1.2   Assignment of Leases and Contracts...................12
         5.1.3   Bill of Sale.........................................12
         5.1.4   State Transfer Tax Form..............................12
         5.1.5   City Transfer Tax Form...............................12
         5.1.6   27th Floor Lease.....................................13
         5.1.7   Closing Statement....................................13
         5.1.8   Cash - Prorations....................................13
         5.1.9   Resolutions..........................................13
         5.1.10  Required Items.......................................13
         5.1.11  Other Documents......................................13

                                   ARTICLE VI

                        SELLER'S DELIVERIES TO PURCHASER

  6.1    Delivery of Instruments and Documents........................13
         6.1.1   Deed.................................................13
         6.1.2   Assignment of Leases and Contracts...................13
         6.1.3   Bill of Sale.........................................14
         6.1.4   Notices to Tenants...................................14
         6.1.5   FIRPTA Affidavit.....................................14
         6.1.6   State Transfer Tax Form..............................14
         6.1.7   City Transfer Tax Form...............................14
         6.1.8   Closing Statement....................................14
         6.1.9   Cash - Prorations....................................14
         6.1.10  Estoppel Certificates................................14
         6.1.11  Letters of Credit....................................14
         6.1.12  Title Company Requirements...........................15
         6.1.13  Assignment - Warranties/Guarantees...................15
         6.1.14  Keys.................................................15
         6.1.15  Licenses and Permits.................................15
         6.1.16  Resolutions..........................................15

                                       ii
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         6.1.17  Required Items.......................................15
         6.1.18  Rent Roll............................................15
         6.1.19  Utility Bills........................................15
         6.1.20  Guarantee............................................15
         6.1.21  Updated Representation Certificate...................16
         6.1.22  Terminated Contracts.................................16
         6.1.23  Assignment and Assumption of Contracts for
                 Work in Progress.....................................16
         6.1.24  G.S. Waiver..........................................16
         6.1.25  Lien Waivers.........................................16
         6.1.26  The 27th Floor Lease.................................16
         6.1.27  The 27th Floor Lease Guarantee.......................16

                                   ARTICLE VII

                              BROKERS AND ADVISORS

  7.1    Brokers and Advisors.........................................16

                                  ARTICLE VIII

                                   THE CLOSING

  8.1    Date and Manner of Closing...................................17
         8.1.1   Funds and Documents..................................17
         8.1.2   Title Insurance......................................17
  8.2    Additional Title Insurance...................................17

                                   ARTICLE IX

                     PRORATION, FEES, COSTS AND ADJUSTMENTS

  9.1    Prorations...................................................18
         9.1.1   Leasing Costs Credited to Purchaser..................18
         9.1.2   Leasing Costs During Contract Period.................19
         9.1.3   Taxes................................................19
         9.1.4   Security and Other Deposits..........................20
         9.1.5   Rent.................................................20
         9.1.6   Additional Rent......................................20
  9.2    Seller's Closing Costs.......................................22
  9.3    Purchaser's Closing Costs....................................22

                                      iii
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                                    ARTICLE X

                                     ESCROW

  10.1   Escrow.......................................................22

                                   ARTICLE XI

                 RETURN OF DOCUMENTS AND FUNDS UPON TERMINATION

  11.1   Return of Seller's Documents.................................22
  11.2   Deposit......................................................23
  11.3   No Effect on Rights of Parties; Survival.....................23

                                   ARTICLE XII

                                     DEFAULT

  12.1   Seller's Remedies............................................23
  12.2   Purchaser's Remedies.........................................23

                                  ARTICLE XIII

                         REPRESENTATIONS AND WARRANTIES

  13.1   Seller's Warranties and Representations......................24
         13.1.1  Power and Authority..................................24
         13.1.2  Proceedings..........................................25
         13.1.3  Contravention........................................25
         13.1.4  Leases and Contracts.................................25
         13.1.5  Compliance...........................................26
         13.1.6  Employees............................................26
         13.1.7  Litigation...........................................27
         13.1.8  Notice of Violations.................................27
         13.1.9  Licenses and Permits.................................28
         13.1.10 Allowances; Leasing Commissions......................28
         13.1.11 Tax Proceedings......................................28
         13.1.12 Insurance............................................29
         13.1.13 Personal Property....................................29
         13.1.14 Environmental and Engineering Reports................29
         13.1.15 Utilities............................................29
         13.1.16 Business Improvement District........................29
         13.1.17 Non-Foreign Person...................................29
         13.1.18 Access to Documents..................................29
         13.1.19 Brokerage Agreements.................................29

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         13.1.20 Work.................................................30
         13.1.21 Rezoning.............................................30
         13.1.22 Financial Statements.................................30
  13.2   Purchaser's Warranties and Representations...................30
         13.2.1  Power and Authority..................................30
         13.2.2  Execution and Delivery...............................30
         13.2.3  Independent Investigation............................31
         13.2.4  Purchaser Reliance...................................31
  13.3   No Other Warranties and Representations......................31
         13.3.1  No Environmental Representations.....................31
         13.3.2  Release of Claims....................................32

                                   ARTICLE XIV

                            CASUALTY AND CONDEMNATION

  14.1   Insured Casualty.............................................32
  14.2   Uninsured Casualty...........................................33
  14.3   Condemnation.................................................33
  14.4   Purchaser's Right to Participate and/or Consent..............34
  14.5   General Obligations Law......................................34

                                   ARTICLE XV

                          CONDUCT PRIOR TO THE CLOSING

  15.1   Conduct by Seller............................................34
  15.2   Actions Prohibited...........................................35
  15.3   Leases and Contracts During Due Diligence Period.............36
  15.4   After Due Diligence Period...................................36
  15.5   Conduct by Purchaser.........................................37
  15.6   Confidentiality..............................................37

                                   ARTICLE XVI

                                     NOTICES

                                  ARTICLE XVII

                        TRANSFER OF TITLE AND POSSESSION

  17.1   Transfer of Possession.......................................39
         17.1.1  Delivery of Documents at Closing.....................39

                                       v
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                                  ARTICLE XVIII

                               GENERAL PROVISIONS

  18.1   Captions.....................................................39
  18.2   Exhibits.....................................................39
  18.3   Entire Agreement.............................................39
  18.4   Modification.................................................39
  18.5   Attorneys' Fees..............................................40
  18.6   Governing Law................................................40
  18.7   Time of Essence..............................................40
  18.8   Survival of Warranties.......................................40
  18.9   Assignment by Purchaser......................................41
  18.10  Severability.................................................41
  18.11  Successors and Assigns.......................................41
  18.12  Interpretation...............................................41
  18.13  Counterparts.................................................41
  18.14  Recordation..................................................41
  18.15  Limitation on Liability......................................41
  18.16  WAIVER OF JURY TRIAL.........................................41
  18.17  Further Assurances...........................................42
  18.18  Non-Waiver of Rights.........................................42
  18.19  Mortgage Transactions........................................42
  18.20  Credit Lyonnaise Rouse (USA) ("Credit Lyonnaise")
         Transaction..................................................43
  18.21  Indemnity by Seller..........................................44
  18.22  Indemnity by Purchaser.......................................44
  18.23  Counterparts.................................................44
  18.24  Indemnification..............................................45
  18.25  Definitions..................................................45

                                       vi
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                           SALE AND PURCHASE AGREEMENT

     This Agreement, dated as of October 13, 2000, is made by and between the
companies listed on Exhibit A (the "Seller Pool Companies"), located at 180
Maiden Lane, New York, New York 10038 ("Seller"), for which TCC ACQUISITION
CORP., a Delaware corporation acts as Agent ("Agent"), and PGI-WvF 180, L.P., a
New York limited partnership ("Purchaser").

                                    ARTICLE I

                                    RECITALS

     1.1 Real Property. Seller owns and holds fee title to that certain land
(the "Land") described in Exhibit B, together with all improvements, buildings
and structures and all fixtures and equipment (including, without limitation,
all of the following (other than the property of tenants under Leases (the
"Tenants") or of public or private utilities): plumbing, electrical, mechanical,
elevator, communication, heating, air conditioning and ventilating components,
lines and systems and boilers and each and every other type of physical
improvement located at, on or affixed to the Land to the full extent such items
constitute or are or can or may be construed as realty under the laws of the
State of New York (collectively, the "Improvements") located thereon known as
180 Maiden Lane and located at New York, New York (collectively, the "Real
Property").

     1.2 Personal Property. In connection with the Real Property, Seller has (i)
obtained certain governmental permits and approvals, (ii) obtained certain
contractual rights and other intangible assets, and (iii) acquired certain other
items of tangible personal property more completely described in Exhibit C
together with all of Seller's rights to the name of the Real Property
(collectively, the "Personal Property"). The Real Property and the Personal
Property together with all appurtenances, rights and privileges pertaining
thereto including, without limitation, all of Seller's right, title and interest
in and to the rights of way, streets, alleys, easements, strips or gores of land
adjacent thereto are collectively referred to as the "Property." The parties
agree that the Personal Property being conveyed by Seller to Purchaser is de
minimis and no portion of the Purchase Price is attributable thereto.

     1.3 Purchase and Sale. Seller now desires to sell and Purchaser now desires
to purchase all of Seller's right, title and interest in and to the Property,
upon the terms and covenants and subject to the conditions set forth below.

                                       1
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                                   ARTICLE II

                                 PURCHASE PRICE

     2.1 Price. In consideration of the covenants herein contained, Seller
hereby agrees to sell and Purchaser hereby agrees to purchase the Property for a
total purchase price of Two Hundred Ninety Million Six Hundred Fifteen Thousand
and 00/100 Dollars ($290,615,000) subject to prorations and adjustments as set
forth herein (the "Purchase Price"), which shall be paid by Purchaser as
follows:

          2.1.1 Deposit. Purchaser has, concurrently herewith, deliver to a
     TitleServ Agency of New York ("Escrow Agent") having an address at 9 West
     57th Street, New York, New York 10019, pursuant to the terms of the Escrow
     Agreement attached hereto as Exhibit X by bank wire of immediately
     available funds or by delivering to Escrow Agent a clean, unconditional and
     irrevocable letter of credit in favor of Seller in such amount (the
     "Deposit Letter of Credit"), issued or confirmed for direct payment by Bank
     of New York or other bank which is rated AA and is reasonably acceptable to
     Seller, in the form of the letter of credit annexed hereto as Exhibit D,
     the sum of Fifteen Million and 00/100 Dollars ($15,000,000) (together with
     any interest earned thereon if the deposit was made in cash, the
     "Deposit").

          2.1.2 Balance of Purchase Price. Purchaser shall at the Closing (as
     defined in Section 8.1), deliver to Seller, by bank wire transfer of
     immediately available funds to an account designated by Seller no less than
     3 days prior to Closing, (i) in the event that the Deposit was in cash, the
     additional sum of Two Hundred Seventy-Five Million Six Hundred Fifteen
     Thousand and 00/100 Dollars ($275,615,000) representing the balance of the
     Purchase Price or (ii) in the event that the Deposit was the Deposit Letter
     of Credit, the sum of Two Hundred Ninety Million Six Hundred Fifteen
     Thousand and 00/100 Dollars ($290,615,000) upon receipt of which, Escrow
     Agent shall return the Deposit Letter of Credit to Purchaser. The balance
     of the Purchase Price received by Seller at the Closing shall be adjusted
     to reflect prorations and other adjustments pursuant to Section 2.3 and
     Section 9.1 and, if applicable, Sections 3.5.1, 4.1.1.1, 4.1.1.2, 4.1.1.3
     and 18.20.

     2.2 Investment. Following the collection of the Deposit if in cash (the
"Cash Deposit"), Escrow Agent shall invest the Cash Deposit in an
interest-bearing account at Citibank, N.A. or, at the request of Purchaser,
shall invest the Cash Deposit in short-term United States Treasury securities or
other insured, low-risk, short-term securities mutually agreed upon by both
parties.

                                       2
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     2.3 Interest on the Cash Deposit. If the transaction does not close, any
interest earned on the Cash Deposit shall be credited and delivered to the party
receiving the Cash Deposit. If the transaction closes, at the Closing any
interest earned on the Cash Deposit shall be credited to Purchaser.

                                  ARTICLE III

                              DUE DILIGENCE PERIOD

     3.1 Due Diligence Materials. Seller made available to Purchaser and
Purchaser's representatives, for their review and approval during the period
prior to the date hereof (the "Due Diligence Period"), copies of all Leases,
subleases, license and concession agreements, Contracts, records, employment
rosters and other information regarding employees who are employed at the
Property, tenant files, accounting records, correspondence, service and
management agreements, plans, specifications, "as-builts", surveys, permits and
engineering and environmental reports, financial information (including, without
limitation, books and records), appraisals and reports and any other information
or documents reasonably requested by Purchaser (to the extent that any of such
items are in Seller's possession or control and have not yet been delivered to
Purchaser) (the "Due Diligence Materials"). The Due Diligence Materials were
made available to Purchaser and its representatives at the offices of Seller or
its property manager at reasonable times and upon reasonable telephone notice
during the Due Diligence Period and Purchaser made copies of any such materials,
all of which Purchaser will return to Seller in the event that this Agreement is
terminated prior to Closing. In addition, Purchaser, at its sole cost and
expense, was permitted, during the Due Diligence Period, to make a complete
review and inspection of the physical condition of the Property, including,
without limitation, the mechanical, electrical and HVAC systems, roof, facade
and elevator inspections, and a complete ADA compliance, fire safety and
environmental review.

     3.2 Inspection of Property. During the term of this Agreement, Purchaser
shall have the right to enter the Property subject to the following limitations:
(A) any entry onto the Property by Purchaser, its agents or representatives,
shall be during normal business hours, following reasonable prior telephone
notice to Seller and delivery to Seller of satisfactory evidence of Purchaser's
general liability insurance, and, at Seller's discretion, Purchaser, its agents
or representatives shall be accompanied by a representative of Seller; (B)
Purchaser shall not conduct any drilling, test borings or other invasive testing
or disturbance of the Property for review of soils, compaction, environmental,
structural or other conditions without Seller's prior written consent; (C) any
discussions or interviews with any of the tenants of the Property or their
personnel or counsel shall be conducted in the presence of Seller or its
representatives; (D) Purchaser shall exercise reasonable diligence not to
disturb the use or occupancy of any occupant of the Property; and (E) Purchaser
shall indemnify, defend and hold Seller

                                       3
<PAGE>

harmless from all loss, cost, and expense (including, without limitation,
reasonable attorney's fees and disbursements), resulting from any personal
injury or property damage caused by any entry or inspections or other due
diligence activities performed by Purchaser, its agents and representatives.
Purchaser's obligations under this Section shall survive any termination of this
Agreement. Seller hereby grants Purchaser from and after the date hereof, and
continuing through the date of Closing the right to have discussions with and
interview representatives of GS (hereinafter defined) and Stroock & Stroock &
Lavan LLP ("SSL") provided that a representative of Seller is present during
such discussions and interviews. During the term of this Agreement, Seller shall
cooperate with Purchaser in scheduling any inspections, tests and tenant
interviews in an expeditious fashion so as to enable Purchaser to fully
investigate the Property, which Purchaser shall have the right to do at any time
prior to Closing in accordance with the provisions of this Agreement, and shall
provide Purchaser with the Due Diligence Materials, provided that subsequent to
the Due Diligence Period, Purchaser shall have no right to terminate this
Agreement based on its continued investigation of the Property except as
specifically set forth in this Agreement.

     3.3 Title and Survey. Purchaser acknowledges that prior to the execution
and delivery of this Agreement, Purchaser has received a Certificate and Report
of Title from New York Land Services Inc. (the "Title Company") and ordered a
survey of the Property from a licensed surveyor (the "Survey"). On or prior to
the Closing Date, Seller shall remove, discharge or insure over any lien or
encumbrance on the Property which is not listed on Exhibit E attached hereto
(the "Permitted Encumbrances") (a "Title Defect"), provided that Seller shall
only be required to cure Title Defects that are liquidated in amount if the
aggregate cost of the cure shall not exceed $2,500,000 (the "Title Cap"), except
for monetary liens created by Seller (including the First Mortgage and the
Second Mortgage, as defined below) all of which shall be cured by Seller
regardless of cost. Notwithstanding the foregoing, Seller shall not be required
to cure any mechanic's liens created by GS, or any of its affiliates in
connection with the performance of work under the GS Lease. Any liens evidencing
liquidated claims created by any Tenant (except the mechanic's liens created by
GS described above) shall be cured by Seller, up to the amount of the Title Cap,
and Seller shall have the right to bond such lien and to seek recovery from the
Tenant, including by instituting suit for the amount expended by Seller to
effect such cure. If such liens or encumbrances are not bonded or discharged,
Purchaser shall have the right to terminate this Agreement as described in the
last paragraph of this Section 3.3.

     Seller may use any proceeds of the sale to remove, discharge, insure over
or otherwise satisfy (at Closing) any Title Defect.

     If, on the date on which the Closing occurs (the "Closing Date"), the Title
Company fails to deliver to Purchaser and Purchaser's lender a title policy in
form and substance substantially the same as the pro forma title policy attached
hereto as Exhibit F,

                                       4
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Purchaser may, at its option, (i) accept title to the Property subject to any
Title Defects and receive at Closing a credit against the Purchase Price in an
amount required to cure, as determined by the Title Company, any such Title
Defects, provided that the total amount of credit shall not exceed the amount of
the Title Cap (excluding any monetary liens created by Seller which Seller shall
cure regardless of the cost of cure (including the First Mortgage and the Second
Mortgage) or (ii) if the Title Defects, excluding any monetary liens created by
Seller, exceed the Title Cap, terminate this Agreement by written notice to
Seller, in which event the Deposit shall be returned to Purchaser and thereafter
neither party shall have any further rights or obligations hereunder, except
those specifically stated to survive a termination of this Agreement.
Notwithstanding anything to the contrary in the foregoing, Seller has advised
Purchaser that it is currently disputing with the holder of a mortgage
encumbering the Property the amount which may be due and owing to satisfy such
mortgage and Seller acknowledges that it shall be Seller's obligation to deliver
at Closing to the Title Company any instrument as shall be required by the Title
Company to remove of record the mortgage, identified as Mortgages A-K (the
"First Mortgage") in the Report of Title dated June 1, 2000 (the "Report of
Title") issued by the Title Company; which obligation may include the deposit of
a sum of money with an escrow agent until resolution of the dispute, a procedure
more particularly described in the First Mortgage. In addition to the First
Mortgage, Seller shall also remove of record at or prior to Closing the Mortgage
identified as Mortgage L (the "Second Mortgage") on the Report of Title.

     With respect to any Title Defect as to which Seller did not have notice at
least ten days prior to the Closing Date (a "New Exception"), Seller shall be
entitled to a reasonable adjournment of the Closing Date provided for herein
(which adjournment period shall not exceed thirty (30) days) time being of the
essence during which to remove or cure any such New Exception, subject to the
limitations on cure costs set forth in this Section 3.3. If the cost to cure the
New Exception is less than the Title Cap and for a liquidated sum, Purchaser
shall close with a credit for the cost of cure; if the cost to cure is greater
than the Title Cap, Purchaser shall have the option (x) to close subject to
Seller expending up to the Title Cap to cure such New Exception or Seller giving
a credit to Purchaser at Closing for the amount necessary to effect such cure
(up to the amount of the Title Cap), and so long as Seller cures all monetary
liens created by Seller or (y) to terminate this Agreement as set forth in the
preceding paragraph.

     3.4 Violations. If the Land or the Improvements is or becomes subject to
any notes or notices of violation of any Laws that have been noted in or issued
by any federal, state or municipal department having jurisdiction prior to the
date of this Agreement, and which have not been fully remedied or discharged of
record ("Violations"), Seller shall remedy such Violations prior to Closing and
shall discharge such Violations of record prior to Closing. Except as otherwise
provided in the next sentence of this Section, in the event that any material
Violations have not been cured prior to Closing, Purchaser may, at its option,
(i) accept title to the Property subject to such Violations and receive a credit

                                       5
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at Closing in the amount necessary to effect such cure or (ii) terminate this
Agreement by written notice to Seller, in which event the Deposit shall be
returned to Purchaser and neither party shall have any further rights or
obligations hereunder, except those specifically stated to survive a termination
of this Agreement. Notwithstanding the foregoing, in the event that any of the
Violations listed on Exhibit Z are the responsibility of any Tenant to cure
pursuant to its Lease, Seller shall not be responsible to cure any such
Violations, and Purchaser shall have no right to terminate as a result thereof
so long as Seller is using commercially reasonable methods to enforce the
Tenant's obligations to cure the Violations, which shall include Seller's
request in writing that such Tenant cure such Violation. A copy of such request
shall be delivered by Seller to Purchaser.

     3.5 Seller's Obligations During Due Diligence Period. Seller shall, within
the time periods set forth below, complete the following (the obligations
described in Section 3.5.1 and Section 3.5.2 are hereinafter defined as
"Seller's Due Diligence Obligations"):

          3.5.1 27th Floor. Seller has entered into an amendment of the GS Lease
     to include the entire 27th Floor in the GS Lease, in form and substance
     reasonably acceptable to Purchaser (the "GS 27th Floor Amendment"). Seller
     shall cause to be executed and delivered at Closing a new lease for the
     entire 27th floor (the "27th Floor Lease"), between Purchaser, as Landlord,
     and The Continental Insurance Company, as Tenant, in the form of Exhibit G,
     which 27th Floor Lease shall be subordinate to the GS 27th Floor Amendment
     in accordance with the terms of the subordination provisions of Article 33
     of the 27th Floor Lease without the need for any further documents or
     agreements. In the event that the Rent Commencement Date (as defined in the
     GS 27th Floor Amendment) has not occurred on or prior to the Closing Date,
     Seller shall be liable to Purchaser for the amount of Fixed Rent (as
     defined in the GS Lease) that would have been payable by GS for the time
     period from the Closing Date to the date that the Rent Commencement Date
     under the GS 27th Floor Amendment occurs (the "27th Floor Fixed Rent
     Differential"). If the amount of the credit cannot be calculated at
     Closing, Seller shall make such payment to Purchaser monthly and the 27th
     Floor Fixed Rent Differential payment obligations shall survive Closing.
     The Seller's obligation for the GS 27th Floor Fixed Rent Differential shall
     be guaranteed pursuant to the terms of the Guarantee (as defined below).

          3.5.2 Authority of Seller. Seller has delivered confirmation,
     reasonably acceptable to Purchaser, that TCC Acquisition Corp. is
     authorized by the Seller Pool Companies, to enter into the Letter of
     Intent, dated August 16, 2000, between Seller and Purchaser ("LOI") with
     respect to the Property and that the Seller Pool Companies are authorized
     to enter into this Agreement.

     3.6 Intentionally Deleted.

                                       6
<PAGE>

     3.7 Seller's Payment to Purchaser. In the event that this Agreement has
been terminated in accordance with its terms and Seller enters into a contract
to sell the Property to GS or any of its Affiliates on or prior to
December 31, 2000, Seller shall pay to Purchaser the amount of $1,000,000 in
immediately available funds to an account designated by Purchaser no later than
3 business days after entering into such contract.

     If any payment required to be made by Seller under this Section is not made
within the time period set forth herein, all outstanding amounts shall accrue
interest at the rate of 10% per annum. The obligations of Seller set forth in
this Section shall survive a termination of this Agreement.

     3.8 Purchaser's Termination Rights. If Purchaser, after the date hereof,
obtains knowledge at or prior to Closing of any matter entitling Purchaser to
terminate this Agreement (individually or collectively, as applicable, a "Post
Signing Termination Matter"), including without limitation a breach of a
representation or warranty or an unacceptable Estoppel Certificate (as
hereinafter defined), and the aggregate amount of the loss to Purchaser in
connection with the Post Signing Termination Matter is reasonably quantifiable
and is for an amount of $2,500,000 or less in the aggregate, Purchaser shall
remain obligated to acquire the Property on the terms set forth in this
Agreement and Seller shall indemnify Purchaser for all losses suffered in
connection with such Post Signing Termination Matters up to the amount of
$2,500,000 in the aggregate. If Purchaser obtains knowledge at or prior to
Closing of any Post Signing Termination Matter which is reasonably quantifiable
and the aggregate loss exceeds $2,500,000 in the aggregate, Purchaser may (x)
terminate this Agreement and receive a return of the Deposit in which case the
parties hereto shall have no further rights or obligations hereunder, except
those specifically stated to survive a termination of this Agreement or (y)
acquire the Property. If Purchaser shall acquire the Property, Purchaser agrees
that (except as provided in Section 3.3.) it shall not have the right to raise a
claim pursuant to Section 18.21 with respect to the Post Signing Termination
Matter of which Purchaser had prior knowledge and Seller shall indemnify
Purchaser for all losses suffered in connection with such Post Signing
Termination Matter up to $2,500,000 in the aggregate. Seller's indemnity in this
Section 3.8 shall be covered by the Guaranty. It is understood that the Post
Signing Termination Matters shall not include any issues relating to the
following: base year amounts; costs for cleaning; insurance; taxes and
electricity; reduction of sundry income; income and expense of fitness center;
or the physical condition of the Building (except that the Post Signing
Termination Matters shall include matters related to Seller's obligations herein
to (a) repair and maintain the Building from the date hereof to the date of
Closing, (b) comply with its obligations pursuant to Article XIV and (c) perform
the items set forth on Exhibits H and I) and Purchaser waives all rights to
terminate this Agreement or to claim for indemnity or breach of representation
with respect thereto. Purchaser shall notify Seller, promptly when it becomes
aware of a Post Signing Termination Matter and in any event, prior to Closing.
The obligations of

                                       7
<PAGE>

Seller pursuant to this Section 3.8 are in addition to the obligations of Seller
pursuant to Section 18.21.

                                   ARTICLE IV

                     CONDITIONS TO THE PARTIES' OBLIGATIONS

     4.1 Conditions to Purchaser's Obligation to Purchase. Purchaser's
obligation to purchase is expressly conditioned upon each of the following:

          4.1.1 Performance by Seller. Performance in all material respects of
     the obligations and covenants of, and deliveries required of, Seller
     hereunder, including, without limitation, the following:

               4.1.1.1 Capital Improvements. Seller shall complete, prior to the
          Closing, and in accordance with the original scope of work which
          supports the estimated costs as itemized, all work ("Work") shown in
          Exhibit H annexed hereto pursuant to Contracts and agreements approved
          in writing by Purchaser to the extent such Work has not been
          previously completed. The Contracts and agreements existing on the
          date hereof are approved or deemed approved and are listed on Exhibit
          H and Exhibit I (the "Prior Agreements"). To the extent that any of
          the Work shown on Exhibit H or Exhibit I is not completed as of the
          date of this Agreement, Purchaser shall have the right to reasonably
          supervise the performance and completion of the Work and to approve
          all Contracts and agreements (other than the Prior Agreements). In the
          event that any portion of the Work shown on Exhibit H or Exhibit I
          remains incomplete as of the Closing, Seller shall credit against the
          balance of the Purchase Price owed by Purchaser an amount equal to (a)
          the unpaid balances on any contracts for performance of the Work which
          have been executed by Seller and approved by Purchaser or which are
          Prior Agreements plus (b) the amount required to complete any Work
          which has not yet been contracted for, which amount shall be agreed to
          in good faith by Seller and Purchaser, (except in any case where the
          amount of the credit for any unfinished Work is set forth on Exhibit H
          in which case the amount so set forth shall be the amount of the
          credit) and Seller shall assign to Purchaser at Closing all of the
          Contracts and agreements for the Work approved by Purchaser and the
          Prior Agreements. Seller shall deliver at Closing lien waivers for
          Work that is shown on Exhibit H and Exhibit I that Seller has
          completed prior to Closing.

               4.1.1.2 Ricker Auditorium. Seller and GS have entered into an
          amendment of the GS Lease to include an additional 8,111 rentable
          square

                                       8
<PAGE>

          feet, identified in the GS Lease as the Ricker Auditorium, at an
          annual Fixed Rent in the amount of not less than Three Hundred Fifty
          Thousand Dollars ($350,000), to be co-terminus with the GS Lease,
          subject to Article 38 of the GS Lease, and otherwise on terms and
          conditions agreed upon between Seller and GS, with the approval of
          Purchaser (the "Ricker Amendment"). Any costs incurred in connection
          with the Ricker Amendment shall be for the account of Seller and paid
          for by Seller at or prior to Closing. At the Closing, in order to
          compensate Purchaser for Fixed Rent for the number of days between the
          Closing and the date GS is required to commence paying Fixed Rent,
          Purchaser shall receive a credit in the amount of the per diem Fixed
          Rent that Purchaser would have been entitled to receive from GS had
          Fixed Rent pursuant to the Ricker Amendment been payable on or before
          the Closing Date. Any revenue that Purchaser, as landlord, shall
          receive from the Ricker Auditorium attributable to the period from the
          Closing to the date GS is required to commence paying Fixed Rent shall
          be for the account of Seller and Purchaser shall collect such revenue
          in the normal course of business and shall remit such revenue net of
          any actual expenses incurred by Purchaser and attributable to the
          Ricker Auditorium during such period to Seller promptly upon receipt.
          The obligations of Purchaser in this Section shall survive Closing.

               4.1.1.3 Management Office. Prior to the Closing, Seller and
          Purchaser shall identify available space in the Real Property for use
          by Purchaser as a management office. The location shall be at
          Purchaser's sole discretion from the available space and shall be
          selected by Purchaser prior to Closing. The costs of construction of
          the management office shall be shared equally between Seller and
          Purchaser; provided, however, that the maximum amount of Seller's
          contribution shall be Twenty-Five Thousand Dollars ($25,000). In the
          event that the construction of and payment for the management office
          are not completed prior to the Closing, Purchaser shall be entitled to
          a credit at the Closing in the amount of $25,000 less any amounts
          previously paid by Seller towards the cost of the management office.
          In the event that it is determined that Seller's share of the costs is
          less than $25,000, Purchaser shall promptly reimburse Seller for the
          excess amount paid by Seller. Purchaser shall make all decisions with
          respect to the design, construction, and layout of the management
          office. All contracts and agreements to be entered into for the
          construction of the management office shall be negotiated by Purchaser
          and, upon the request of Purchaser, executed by Seller, subject to the
          provisions set forth in this Section regarding payment of costs
          related to the management office. All work in connection with the
          management office shall be performed by Purchaser; provided, however,
          that in the

                                       9
<PAGE>

          event that Purchaser shall desire to commence work prior to the
          Closing, Purchaser shall provide to Seller evidence of such insurance
          as shall be reasonably required by Seller naming Seller as an insured
          in respect of any and all claims for personal injury, death or
          property damage occurring in connection with Purchaser's performance
          of the work. Purchaser acknowledges and agrees that the existing
          management office located on the 27th floor will not be available to
          Purchaser to use as a management office.

               4.1.1.4 Guarantee. At the Closing, Seller shall deliver to
          Purchaser a guarantee in the form attached hereto as Exhibit J (the
          "Guarantee") of CNA Financial Corp. (the "Guarantor").

               4.1.1.5 Contingent Obligations. Seller shall be liable for and
          shall pay to Purchaser upon demand any of the Contingent Obligations
          if and to the extent that any shall become due. This obligation of
          Seller should survive the Closing and be covered by the Guarantee.

          4.1.2 Delivery of Title and Possession. Delivery at the Closing of (i)
     all the items listed in Section 6.1 hereof including, without limitation,
     the Deed (as defined in Section 6.1.1) and issuance of the Title Policy (as
     defined in Section 8.1.2) showing title in Purchaser in the condition
     described in Section 8.1.2, and (ii) possession as provided in Section
     17.1.

          4.1.3 Tenant Estoppels. Receipt by Purchaser of estoppel certificates
     (collectively, the "Estoppel Certificates") dated not more than 45 days
     prior to the Closing Date executed by each of (i) subject to clause (iii)
     below, GS, SSL, Weitz & Luxenburg, PC. and Nomura Asset Management
     (collectively, the "Major Tenants"), in the form attached hereto as Exhibit
     L with respect to all of the Major Tenants (provided that if any of the
     Leases for such Major Tenants prescribes the form or requirements of the
     estoppel certificate, then an estoppel certificate in conformity with the
     such form or requirements shall be an acceptable substitute for the form
     attached as Exhibit L and shall be deemed an acceptable estoppel
     certificate hereunder); (ii) subject to clause (iii) below, Tenants
     occupying in the aggregate not less than ninety percent (90%) of the total
     rentable area of the Property not occupied by the Major Tenants
     (collectively, the "Other Tenants"), in the form attached hereto as Exhibit
     L (except that if any of the Leases for Other Tenants prescribes the form
     or requirements of the estoppel certificate, then an estoppel certificate
     in conformity with the such form or requirements shall be an acceptable
     substitute for the form attached as Exhibit L and shall be deemed an
     acceptable estoppel certificate hereunder); and (iii) to the extent, if
     any, that estoppel certificates from the Major Tenants and/or Other Tenants
     are not all obtained, a certificate of Seller in the form of Exhibit N
     attached hereto (the

                                       10
<PAGE>

     "Landlord Estoppel") with respect to each Major Tenant and/or Other Tenant
     from whom Seller has not obtained an estoppel certificate. Notwithstanding
     this Section 4.1.3(iii), in the event that an Estoppel Certificate is not
     obtained from any Major Tenant and Seller delivers a Landlord Estoppel
     therefor, Purchaser may either elect to terminate this Agreement in
     accordance with the terms hereof or waive the requirement for such Major
     Tenant Estoppel Certificate and accept a Landlord Estoppel in lieu of such
     Major Tenant Estoppel Certificate. If Purchaser elects to terminate this
     Agreement pursuant to the immediately preceding sentence, this Agreement
     shall immediately terminate and the Deposit shall be returned to Purchaser
     and the parties hereto shall have no liability hereunder except as
     specifically stated to survive a termination of this Agreement, except that
     if Purchaser shall elect to terminate this Agreement pursuant to the
     immediately preceding sentence, Seller shall have the right, but not the
     obligation, to elect to adjourn the Closing for a reasonable period of time
     not to exceed thirty (30) days in order to obtain a Tenant Estoppel from
     such Major Tenant that was not previously delivered.

          The Landlord Estoppel, if any, delivered hereunder and Seller's
     liability thereunder shall survive the Closing, on a Lease by Lease basis,
     until the delivery of an estoppel certificate from the Major Tenants and/or
     Other Tenant for which such Landlord Estoppel was substituted. For purposes
     of satisfying the 90% requirement set forth in the foregoing clause (ii),
     the Tenants shall conclusively be deemed to occupy the rentable area set
     forth opposite their names in Exhibit Y attached hereto. Seller agrees to
     deliver the appropriate form of Estoppel Certificate to each Tenant and to
     request execution of the same. No Estoppel Certificate shall be deemed
     obtained if it contains information materially inconsistent with the Rent
     Roll or Seller's representations and warranties made herein or the Leases
     delivered or made available to Purchaser, provided, however, that if any
     Estoppel Certificate would otherwise be deemed not obtained pursuant to
     this sentence, Purchaser's right to terminate this Agreement as a result
     shall be subject to Section 3.8. To the extent Seller elects to send any of
     the Major Tenants or Other Tenants an estoppel certificate in the form
     prescribed by, or in accordance with the requirements of, the Lease for
     such Tenant, Purchaser shall promptly review the form of such estoppel
     certificate proposed by Seller prior to Seller sending such form to such
     Tenant, and promptly confirm whether it is consistent with the requirements
     of such Lease. In the event that any Estoppel Certificate required to be
     delivered by a Tenant is dated more than thirty (30) days prior to the
     Closing, Seller shall deliver a certificate with respect to any such
     Estoppel Certificate that there have been no defaults or, to Seller's
     knowledge, events with which the passage of time or giving of notice would
     result in a default since the date of the Estoppel Certificate.

                                       11
<PAGE>

          4.1.4 Seller's Representations. The representations and warranties by
     Seller set forth in Section 13.1 being true and correct in all material
     respects as of the Closing except as modified by notice (in accordance with
     Section 13.1) to which Purchaser does not object in writing within 3
     business days after receipt of such notice.

          4.1.5 No Breach. There shall be no material breach of a covenant,
     undertaking and/or agreement of Seller to be performed hereunder.

     4.2 Conditions to Seller's Obligation to Sell. Seller's obligation to sell
is expressly conditioned upon each of the following:

          4.2.1 Performance by Purchaser. Performance in all material respects
     of the obligations and covenants of, and deliveries required of, Purchaser
     hereunder.

          4.2.2 Receipt of Purchase Price. Receipt of the Purchase Price and any
     adjustments due Seller under Article IX at the Closing in the manner herein
     provided.

                                   ARTICLE V

                        PURCHASER'S DELIVERIES TO SELLER

     5.1 Deliveries. Purchaser shall, at or before the Closing, deliver to
Seller each of the following:

          5.1.1 Purchase Price. The Purchase Price as set forth in Article II,
     subject to adjustments and prorations in accordance with this Agreement.

          5.1.2 Assignment of Leases and Contracts. Four executed counterparts
     of the Assignment and Assumption of Leases, Contracts and Other Property
     Interests (the "Assignment of Leases and Contracts") in the form of
     Exhibit O.

          5.1.3 Bill of Sale. Four executed counterparts of a bill of sale (the
     "Bill of Sale") in the form of Exhibit P, pursuant to which Seller shall
     convey and transfer to Purchaser all of its right, title and interest in
     and to the Personal Property.

          5.1.4 State Transfer Tax Form. An executed New York State Combined
     Real Estate Transfer Tax Return and Credit Line Mortgage Certificate
     (TP-584).

          5.1.5 City Transfer Tax Form. An executed New York City Real Property
     Transfer Tax Return (RPT).

                                       12
<PAGE>

          5.1.6 27th Floor Lease. An executed 27th Floor Lease.

          5.1.7 Closing Statement. An executed settlement statement reflecting
     the adjustments and prorations required under this Agreement.

          5.1.8 Cash - Prorations. The amount, if any, required of Purchaser
     under this Agreement.

          5.1.9 Resolutions. Purchaser's resolutions authorizing this
     transaction and the assignment to the Affiliate to which the Agreement is
     being assigned and resolutions of the Affiliate authorizing the assumption
     of the Agreement.

          5.1.10 Required Items. All other items or amounts required by the
     terms of this Agreement to be delivered at or prior to Closing by a party.

          5.1.11 Other Documents. Such other documents, closing statements, and
     other instruments as may be reasonably required from Purchaser to
     consummate the purchase of the Property as contemplated by this Agreement.

                                   ARTICLE VI

                        SELLER'S DELIVERIES TO PURCHASER

     6.1 Delivery of Instruments and Documents. Seller shall, at or before the
Closing, deliver to Purchaser the following instruments and documents:

          6.1.1 Deed. A Bargain and Sale Deed without Covenants against
     Grantor's Acts (the "Deed") with respect to the Real Property, in the form
     of Exhibit Q executed and acknowledged by Seller, pursuant to which Seller
     shall convey title to the Real Property subject only to the Permitted
     Encumbrances.

          6.1.2 Assignment of Leases and Contracts. Four executed counterparts
     of the Assignment of Leases and Contracts which shall assign to Purchaser
     the Leases and, to the extent not objected to by Purchaser, the Contracts,
     together with original executed counterparts (or copies if originals are
     not in Seller's possession which copies shall be certified by Seller as
     being true, correct and complete) of the leases affecting the Property
     enumerated in Exhibit R and any leases executed in accordance with this
     Agreement after the date hereof and all amendments and modifications
     thereto (collectively, the "Leases") and the service contracts, equipment
     leases, maintenance agreements and other contracts for goods, services and
     equipment entered into by Seller and affecting the Property enumerated in
     Exhibit S (the "Contracts") assigned thereby.

                                       13
<PAGE>

          6.1.3 Bill of Sale. Four executed counterparts of the Bill of Sale
     which shall transfer to Purchaser all of Seller's right, title and interest
     in the Personal Property.

          6.1.4 Notices to Tenants. Notices signed by Seller (or Seller's
     manager for the Improvements) addressed to each tenant under each Lease in
     the form of Exhibit T.

          6.1.5 FIRPTA Affidavit. Executed copies of an affidavit in the form of
     Exhibit U, with respect to the Foreign Investment in Real Property Tax Act.

          6.1.6 State Transfer Tax Form. An executed and acknowledged New York
     State Combined Real Estate Transfer Tax Return and Credit Line Mortgage
     Certificate (TP-584) together with all taxes shown due thereon.

          6.1.7 City Transfer Tax Form. An executed and acknowledged New York
     City Real Property Transfer Tax Return (RPT) together with all taxes shown
     due thereon.

          6.1.8 Closing Statement. An executed settlement statement reflecting
     the adjustments and prorations required under this Agreement.

          6.1.9 Cash - Prorations. The amount, if any, required of Seller under
     this Agreement.

          6.1.10 Estoppel Certificates. The Estoppel Certificates (and, if
     applicable, the Landlord's Estoppel(s)).

          6.1.11 Letters of Credit. Originals of any letters of credit
     (collectively, "Letters of Credit") identified on the Rent Roll (as
     hereinafter defined) which are held by Seller as security deposits for the
     account of those Tenants listed on the Rent Roll, if such Letters of Credit
     in their present form (including amendments thereto) permit Purchaser to
     exercise the rights of beneficiary thereunder without amendment of such
     Letters of Credit; provided, however, that as for those Letters of Credit
     that require amendment in order to enable Purchaser to exercise the rights
     of beneficiary thereunder, copies thereof shall be delivered to Purchaser
     at Closing and Seller and Purchaser shall cooperate and expend commercially
     reasonable efforts to obtain such amendments after the Closing, for the
     benefit of and delivery to Purchaser. Should the issuer of any such Letter
     of Credit charge for such amendment, Seller shall pay all costs in
     connection therewith and Purchaser and/or Seller shall seek recovery of
     such costs from the Tenants who delivered the Letters of Credit if required
     to be paid by such Tenant, which amounts when received shall be paid to
     Seller. This Section 6.1.11 shall survive the Closing.

                                       14
<PAGE>

          6.1.12 Title Company Requirements. Any and all reasonable and
     customary documents and/or affidavits executed and delivered by Seller,
     and/or Purchaser required by the Title Company.

          6.1.13 Assignment - Warranties/Guarantees. An Assignment in favor of
     Purchaser in the form attached hereto as Exhibit V of any unexpired
     warranties and guarantees in Seller's possession to the extent assignable,
     relating to the construction, operation and/or repair of the Property,
     together with original copies of any such warranties and guarantees in
     Seller's possession or control.

          6.1.14 Keys. Keys to all locks on the Property, except secured areas
     of Tenants to the extent such areas are permitted under Leases.

          6.1.15 Licenses and Permits. Licenses and Permits (as hereinafter
     defined), plans and specifications, technical manuals, originals of all
     Tenant files and correspondence and any similar materials for the Property
     to the extent same have not been previously delivered to Purchaser and to
     the extent in Seller's possession or control and, to the extent originals
     are not available, copies of the foregoing.

          6.1.16 Resolutions. A resolution of each of the Seller Pool Companies
     with respect to Agent's authority to act on such entities' behalf and
     authorizing each Seller Pool Company to enter into this Agreement and to
     consummate this transaction and binding each such entity to the obligations
     set forth in this Agreement, together with such other documentation as may
     be reasonably required by the Title Company or Purchaser in order to
     evidence Seller's due authorization.

          6.1.17 Required Items. All other items or amounts required by the
     terms of this Agreement to be delivered at or prior to Closing by a party,
     which shall include originals of all Due Diligence Materials which shall be
     delivered to Purchaser, to the extent Seller or its managing agent has such
     originals, and to the extent originals are not available, copies of such
     Due Diligence Materials shall be delivered.

          6.1.18 Rent Roll. A Rent Roll that has been updated as of a date not
     more than two (2) days before the Closing Date shall be delivered to
     Purchaser.

          6.1.19 Utility Bills. All water, sewer and utility bills and copies of
     all operating statements relating to the Property, to the extent available
     and in Seller's possession, for the calendar year ending 12/31/99 and the
     period from 1/1/00 through the month prior to the month in which the
     Closing Date occurs.

          6.1.20 Guarantee. The Guarantee.

                                       15
<PAGE>

          6.1.21 Updated Representation Certificate. A certificate of Seller
     updating the representations and warranties set forth herein.

          6.1.22 Terminated Contracts. To the extent that any Contracts
     (including, without limitation, the management agreement which shall be
     terminated at or prior to Closing) have been canceled or terminated on or
     before the Closing Date (other than termination by expiration of time),
     Seller shall deliver evidence of such cancellation or termination.

          6.1.23 Assignment and Assumption of Contracts for Work in Progress. To
     the extent any work required to be completed by Seller under Prior
     Agreements or contracts approved by Purchaser pursuant to Section 4.1.1.1
     has not been completed, an Assignment in favor of Purchaser in the form
     attached hereto as Exhibit O of any such contracts.

          6.1.24 G.S. Waiver. The Original waiver by GS of its right, pursuant
     to Article 37 of the GS Lease, to purchase the Property (the "GS Waiver").

          6.1.25 Lien Waivers. Original Lien waivers in recordable form for any
     Work listed on Exhibit H and Exhibit I completed prior to the Closing, or,
     to the extent Seller shall be unable, using commercially reasonable efforts
     to obtain such lien waivers, other evidence, reasonably satisfactory to
     Purchaser and the Title Company, that Seller has paid for any portion of
     the Work listed on Exhibit H or Exhibit I that has been completed prior to
     Closing.

          6.1.26 The 27th Floor Lease. The 27th Floor Lease executed by The
     Continental Insurance Company.

          6.1.27 The 27th Floor Lease Guarantee. The 27th Floor Lease Guaranty
     executed by the Guarantor.

                                  ARTICLE VII

                              BROKERS AND ADVISORS

     7.1 Brokers and Advisors. Purchaser and Seller acknowledge and represent to
one another than no investment banker, advisor, or brokers have been involved in
this transaction on behalf of either of them other than The Georgetown Group
("Georgetown") and Newmark & Company Real Estate, Inc. ("Newmark"). Seller shall
pay all brokerage commissions due to Georgetown and Purchaser shall pay all
brokerage commissions due to Newmark. Seller agrees to indemnify and hold
Purchaser harmless from and against all loss, liability or expense (including,
without limitation, reasonable attorneys fees and disbursements) arising out of
any claim or claims by Georgetown and any other broker, finder or similar agent
(excluding Newmark) for commissions, fees or

                                       16
<PAGE>

other compensation in connection with this transaction, which claims are based
on contracts between Seller and such other broker, finder or similar agent and
are not based on any dealings between Purchaser and any other broker, finder or
similar agent. Purchaser agrees to indemnify and hold Seller harmless from and
against all loss, liability or expenses (including, without limitation,
reasonable attorneys fees and disbursements) arising out of any claim or claims
by Newmark and any broker, finder or similar agent (excluding Georgetown) for
commissions, fees or other compensation in connection with this transaction,
which claims are based on contracts between Purchaser and such other broker,
finder or similar agent and are not based on any dealings between Seller and any
other broker, finder or similar agent. This Section shall survive the Closing or
termination of this Agreement.

                                  ARTICLE VIII

                                   THE CLOSING

     8.1 Date and Manner of Closing. The closing of the transaction contemplated
herein (the "Closing") shall occur at the offices of Debevoise & Plimpton, 875
Third Avenue, New York, New York or, at Purchaser's election, at the offices in
Manhattan of Purchaser's lender or their counsel on January 16, 2001 (the "Final
Closing Date"), time being of the essence, subject only to (i) Seller's
adjournment rights with respect to New Exceptions or Major Tenant Estoppels, in
which event Seller will give Purchaser not less than three business days' notice
of the date of the Closing and (ii) Purchaser's and Seller's right,
respectively, to extend the Closing Date on three business days' notice, to not
later than January 31, 2001, time being of the essence (subject to Purchaser's
right to an additional fifteen days' if Seller adjourns in accordance with (i)
above.)

          8.1.1 Funds and Documents. At the Closing all funds and instruments
     required to be delivered pursuant to Articles V and VI shall be or shall
     have been so delivered.

          8.1.2 Title Insurance. The Title Company shall issue a standard 1992
     form of American Land Title Association owner's policy of title insurance
     and a standard form of Lender's policy of title insurance (collectively,
     the "Title Policy") with liability in the amount of the Purchase Price or
     mortgage, as applicable, insuring that fee title to the Real Property vests
     in Purchaser or the priority of the mortgage, as applicable, subject only
     to the Permitted Encumbrances.

     8.2 Additional Title Insurance. Purchaser may, at Purchaser's option,
direct the Title Company to issue additional title insurance endorsements, at
Purchaser's cost, provided that the Title Company's failure to issue any such
additional endorsements shall not affect Purchaser's obligations under this
Agreement.

                                       17
<PAGE>

                                   ARTICLE IX

                     PRORATION, FEES, COSTS AND ADJUSTMENTS

     9.1 Prorations. At or prior to the Closing, the parties shall prorate, as
of 11:59 p.m. the day prior to the Closing, all income and expenses with respect
to the Property and payable to or by the owner of the Property, including,
without limitation: (i) all real property taxes on the basis of the fiscal
period for which assessed (if the Closing shall occur before the tax rate is
fixed, the apportionment of taxes shall be based on the tax rate for the
preceding period applied to the latest assessed valuation; (ii) "BID" payments
required as a result of the Property being in a Business Improvement District;
(iii) rents and other tenant payments and tenant reimbursement, if any, received
under the Leases as provided in this Article; (iv) charges for water, sewer,
electricity, gas, fuel, steam, vault taxes and other utility charges (other than
those charges required to be paid directly to the utility company by a Tenant)
all of which shall be read promptly before the Closing, unless Seller elects to
close its own applicable account, in which event Purchaser shall open its own
account and the respective charges shall not be prorated; (v) amounts prepaid
and amounts accrued but unpaid on Contracts which are to be assumed by
Purchaser; (vi) periodic fees for licenses, permits or other authorizations with
respect to the Property; (vii) salaries, wages and fringe benefits with respect
to Employees that Purchaser will employ after the Closing, and (viii) all other
items customarily prorated in connection with transactions of the type
contemplated by this Agreement. A further proration of (i) above shall be made
between the parties when the final tax bill for the tax year in which the
Closing occurs becomes available. Seller shall pay any taxes or fees assessed
for periods prior to the Closing with respect to emergency generators and fuel
tanks which are the property of Seller and are located on the Property. In
conjunction with such prorations, Seller will assign to Purchaser all utility
deposits which are assignable (and Seller shall be credited with such amounts)
and notify, or cause to be notified, all utilities servicing the Property of the
change in ownership and direct that all future billings be made to Purchaser at
the address of the Property with no interruption of service.

          9.1.1 Leasing Costs Credited to Purchaser. Seller shall credit
     Purchaser with an amount equal to any then outstanding tenant improvement
     allowance, landlord work obligations, leasing commissions, free rent
     periods, or any other monetary obligations with respect to executed leases
     or extensions, expansions or modifications thereof as of the date hereof
     and with respect to the Ricker Amendment, the GS 27th Floor Amendment, and
     the 27th Floor Lease, regardless of when the same shall be due as set forth
     on Exhibit EE. Notwithstanding the foregoing, the 25th floor of the
     Building has been leased to GS for a term to commence upon the expiration
     or sooner termination of the Lease to ASARCO Incorporated, the existing
     tenant of the 25th Floor, on the terms set forth on Exhibit W and otherwise
     in form and substance satisfactory to Purchaser, and

                                       18
<PAGE>

     Purchaser shall be responsible for the tenant improvement allowance and
     landlord work obligations due under such lease amendment to the extent set
     forth on Exhibit W. The credit for any amounts accruing or payable more
     than thirty (30) days after the Closing shall be discounted to a net
     present value at an annual discount rate of 6%.

          9.1.2 Leasing Costs During Contract Period. Subject to the provisions
     of Section 9.1.1 with respect to the Ricker Amendment, the GS 27th Floor
     Amendment, the 27th Floor Lease and the lease of the 25th Floor of the
     Building to GS, the amount of any Tenant improvement allowances, landlord
     work obligations, leasing commissions, free rent periods and any other
     monetary obligations, if any, due in respect of Leases or modifications,
     renewals, extensions or expansions of Leases entered into after the date
     hereof and prior to Closing (the "Contract Period") in accordance with
     Article 15 shall be the responsibility of Purchaser and shall be paid by
     Purchaser, (other than any free rent for any period prior to Closing which
     shall be for the account of Seller) as and when due, except that to the
     extent Seller has paid all or any part of such leasing commissions, tenant
     allowances, or other similar monetary payments for which Purchaser is
     responsible Seller shall provide Purchaser to its reasonable satisfaction
     with evidence of such payment and Purchaser shall reimburse Seller for such
     payments at Closing.

          9.1.3 Taxes. If any proceeding for certiorari or other proceeding to
     determine the assessed value of the Property or the real property taxes
     payable with respect to the Property shall have been commenced prior to,
     and is pending as of, the Closing Date (a "Tax Protest"), Purchaser and
     Seller hereby agree that Joel Marcus of Pottish, Freyburg, Marcus &
     Velasquez shall be designated at Closing as the certiorari counsel who
     shall continue the prosecution of such proceeding or proceedings to
     completion. Purchaser shall have the authority to settle or compromise any
     claim relating to the 2000/2001 fiscal tax years without Seller's consent.
     With respect to any fiscal tax year prior to the 2000/2001 fiscal tax year,
     Seller shall have the authority to settle or compromise any claim relating
     to such period using Seller's certiorari counsel. The parties agree to
     cooperate with each other, and to execute any and all documents reasonably
     requested by the other party, in furtherance of the foregoing. Real
     property tax refunds and credits received after the Closing which are
     attributable to a fiscal tax year prior to the Closing shall belong to
     Seller and shall be paid promptly to Seller when received by Purchaser, net
     of reasonable out-of-pocket expenses of collection thereof and amounts owed
     Tenants. Any such refunds and credits attributable to the fiscal tax year
     during which the Closing occurs shall be apportioned between Seller and
     Purchaser after deducting the reasonable out-of-pocket expenses of
     collection thereof and payments required to be made to Tenants. This

                                       19
<PAGE>

     apportionment obligation shall survive the Closing. Any such refunds and
     credits attributable to the fiscal tax year after the Closing shall belong
     to Purchaser.

          9.1.4 Security and Other Deposits. At the Closing, Seller shall (i)
     credit to Purchaser with the amount of all refundable security deposits
     (plus interest accrued thereon to the extent required to be paid by the
     applicable Lease or applicable law) and (ii) deliver to Purchaser all
     Letters of Credit as required in Section 6.1.11.

          9.1.5 Rent. Basic rents and payments or reimbursements for taxes,
     utilities and operating expenses and all other charges or reimbursables as
     and when collected under the Leases including without limitation charges
     for any special services provided to any Tenant, overtime HVAC or special
     cleaning (collectively, the "Rents") shall be prorated; provided, however,
     that all Rents collected after the Closing under the Leases shall be
     applied, on a Lease by Lease basis, first, to satisfy obligations
     attributable to the payment period in which Closing occurs, second, in
     payment of all current Rents due and payable for the period after the
     Closing, third, after Rents for all current periods have been satisfied in
     full in payment of Rents in arrears for the periods prior to the payment
     period in which the Closing occurs. At Closing, Seller shall assign to
     Purchaser all of its claims or causes of action against existing Tenants,
     if any. If at the time of Closing (as reflected in a Schedule to be
     delivered by Seller at Closing of all amounts known to Seller as due and
     payable by any Tenant for the period prior to Closing but uncollected as of
     Closing, whether or not past due) or thereafter there are Rents owed by
     Tenants to Seller, then Purchaser will make commercially reasonable
     efforts, without suit, to collect the same for the account of Seller and
     any such Rents, if received, shall have been received by Purchaser for the
     account of Seller and will be remitted by Purchaser to Seller within 15
     days of receipt. Seller expressly agrees that if Seller receives any Rents
     directly from Tenants after the Closing Date, Seller shall remit same to
     Purchaser within 15 days after receipt thereof and Purchaser shall deliver
     to Seller the amount thereof, if any, to which Seller is entitled pursuant
     to the terms hereof within 15 days after receipt thereof. All prepaid Rents
     and charges for the period following the Closing shall be paid over (or
     credited) by Seller to Purchaser at Closing. After the Closing, Seller
     shall not be entitled to collect or attempt to collect Rents from Tenants
     due and owing to Seller, except those whose Lease or right to possession
     under the Lease has been terminated and in connection with which the Tenant
     has either vacated its premises or summary proceedings have been
     instituted.

          9.1.6 Additional Rent. Charges to or contributions by Tenants under
     the Leases for the period under such Leases which includes the Closing
     Date, including without limitation, payments or reimbursements, whether for
     taxes, utilities, other operating expenses or otherwise, shall be
     apportioned on the basis

                                       20
<PAGE>

     of the ratio which the expenses actually paid by each party for such period
     bears to the total of all expenses with respect to such period for which
     such payment was made by the Tenant. Such apportionments shall be adjusted
     as soon as practicable after the end of the current lease year in which the
     Closing occurs, and at such time Purchaser shall furnish Seller with
     statements in reasonable detail showing the calculation of such
     apportionments, rents and payments, and any adjustments shall be allocated
     for the portion to which it applies. If either Seller or Purchaser shall
     have collected more than its share of such amounts payable under any Lease
     pursuant to this Section, such party shall promptly remit to the other the
     amount of such excess. If any Tenant is entitled to refunds of any such
     rents or charges, such refunds shall be paid by the party hereto that
     received such rents or charges, provided, however, that any amounts
     collected by Seller to which Tenants are entitled shall be paid to
     Purchaser who shall remit such amounts to Tenants entitled thereto.
     Purchaser shall indemnify Seller from and against any claims by Tenants for
     amounts remitted by Seller to Purchaser pursuant to this Section.

          Purchaser shall prepare and deliver to Seller for its review and
     approval the operating expense and real estate tax escalation statements
     and adjustments for the calendar year 2000 no later than March 31, 2001.
     The reasonable costs incurred by Purchaser or its accountants in preparing
     such statements (including without limitation the costs of an audit) shall
     be paid by Seller. Upon Seller's approval of the same, Purchaser shall
     invoice Tenant's for the amounts set forth thereon. If Seller does not
     approve the same and Purchaser and Seller are unable to agree on the
     amounts to be billed to the Tenants within fifteen (15) days after Seller's
     receipt of Purchaser's initial statements, Purchaser may invoice Tenants
     for the amounts it in good faith determines to be correct and any dispute
     between Seller and Purchaser shall be resolved in good faith between the
     parties.

          Purchaser shall prepare and deliver to Seller for its review
     statements for the calendar year 2001 no later than March 31, 2002 and
     Seller and Purchaser shall follow the same procedures as described above.

          Seller hereby agrees, that provided Purchaser follows the procedures
     described in this Section 9.1.6, Seller shall have no claim against
     Purchaser in connection with any matter related to the escalation
     statements prepared by Purchaser in accordance with this Section.

          At least three (3) business days prior to Closing, Purchaser and
     Seller jointly shall prepare a closing statement, subject to and in
     accordance with the terms hereof, indicating the net amount due to either
     party as a result of the adjustments and prorations provided for herein.
     Any errors in the calculation of apportionments shall be corrected or
     adjusted as soon as practicable (but not more

                                       21
<PAGE>

     often than monthly) after the Closing Date. If it is impracticable to
     apportion certain items hereunder on the Closing Date, such items shall be
     apportioned and paid as soon as practicable thereafter. Purchaser agrees to
     take necessary actions after Closing in a timely manner in order to make
     the adjustments and prorations provided for hereunder, including, without
     limitation, billings to Tenants. The provisions of this Section 9.1
     (including, without limitation, Sections 9.1.1 through 9.1.6) shall survive
     Closing.

     9.2 Seller's Closing Costs. Seller shall pay (i) the New York City and New
York State transfer taxes in the amount required by law, (ii) Seller's own
attorneys' fees and (iii) any brokerage or investment banking fee payable to
Georgetown.

     9.3 Purchaser's Closing Costs. Purchaser shall pay (i) all recording fees,
and all mortgage recording taxes, (ii) the cost of the Title Report, the title
premium for the Title Policy and any lender's title policy and the cost of any
other title insurance endorsements ordered by Purchaser, (iii) survey costs,
(iv) Purchaser's due diligence expenses, including all professional fees, (v)
Purchaser's own attorneys' fees, and (vi) any brokerage or investment banking
fees payable to Newmark in connection with this transaction.

                                   ARTICLE X

                                     ESCROW

     10.1 Escrow. TitleServ Agency of New York will act as Escrow Agent pursuant
to the agreement attached hereto as Exhibit X which shall be executed
simultaneously with this Agreement.

                                   ARTICLE XI

                 RETURN OF DOCUMENTS AND FUNDS UPON TERMINATION

     11.1 Return of Seller's Documents. If this Agreement is terminated for any
reason (other than the material default of Seller), Purchaser shall, within five
days following such termination, deliver to Seller all documents and materials
relating to the Property previously delivered to Purchaser by Seller, copies
made by or on behalf of Purchaser of any documents during the Due Diligence
Period or the Contract Period and copies of all reports, studies, documents and
materials obtained by Purchaser from third parties in connection with the
Property and Purchaser's investigation thereof. Such items shall be delivered
without representation or warranty as to accuracy or completeness and with no
right of Seller to rely thereon without the consent of the third party.

                                       22
<PAGE>

     11.2 Deposit. If this Agreement is terminated for any reason other than
Purchaser's default, which defaults shall be governed by Article XII, (i) then
Purchaser shall be entitled to obtain the return of the Deposit or so much
thereof as Purchaser has previously deposited with Escrow Agent.

     11.3 No Effect on Rights of Parties; Survival. The return of documents and
monies as set forth above shall not affect the right of either party to seek
such legal or equitable remedies as such party may have under Article XII or
otherwise hereunder with respect to the enforcement of this Agreement. The
obligations under this Article XI shall survive termination of this Agreement.

                                   ARTICLE XII

                                     DEFAULT

     12.1 Seller's Remedies. If, (i) at the closing, Seller is ready, willing
and able to convey the Property to Purchaser in accordance with the terms hereof
and Purchaser does not deliver the Purchase Price to Seller in accordance with
the provisions of Section 2.1.2 or refuses to execute and deliver a closing
document required to be executed and delivered to Seller or (ii) Purchaser takes
any action that makes it impossible for Seller to fulfill any obligations
required to be fulfilled by Seller prior to the Closing, then Seller may
terminate this Agreement upon written notice to Purchaser and Seller may retain
the Deposit as liquidated damages. Seller and Purchaser agree that upon the
occurrence of one of the events listed in subclause (i) or (ii) of the preceding
sentence it would be extremely impracticable and difficult to estimate any and
all damage and harm, losses and expenses which Seller would suffer due to such
failure, and insofar as a reasonable estimate of the total net detriment that
Seller would suffer from such failure is the amount of the Deposit, Seller shall
be entitled to retain the Deposit, which amount is not intended to be and is not
a penalty, and which shall be Seller's sole remedy for damages arising from
Purchaser's failure to complete the acquisition.

     12.2 Purchaser's Remedies. If the sale and purchase of the Property is not
completed as herein provided solely by reason of any material default of Seller,
Purchaser shall be entitled to (i) terminate this Agreement by delivering notice
to Seller and to obtain the return of the Deposit or (ii) treat this Agreement
as being in full force and effect and pursue only the remedy of specific
performance of this Agreement. Purchaser waives any right to pursue any other
remedy at law or equity for such default of Seller, including, without
limitation, any right to seek, claim or obtain damages, other than in the case
of Seller's fraud, but in no case shall Purchaser seek punitive damages or
consequential damages. Notwithstanding the foregoing, if Seller shall willfully
default in any of its obligations under this Agreement that are solely within
the control of Seller or one of its Affiliates (i.e. those obligations not in
any manner involving third party execution or delivery of documents or
cooperation), then Purchaser may seek damages

                                       23
<PAGE>

on account of such willful breach from Seller (not to exceed Fifteen Million
Dollars ($15,000,000) in the aggregate), regardless of whether Purchaser has
elected to acquire the Property. This provision shall survive Closing or
termination of this Agreement provided however that any action must be commenced
within one year of the scheduled Closing Date.

                                  ARTICLE XIII

                         REPRESENTATIONS AND WARRANTIES

     13.1 Seller's Warranties and Representations. The matters set forth in this
Section 13.1 constitute representations and warranties by Seller which are now
and (subject to actions taken by Seller in accordance with the provisions of
Article IV and Article XV) shall, in all material respects, at the Closing be
true and correct as restated on the Closing Date. If Seller learns of, or has a
reason to believe that any of the following representations and warranties may
cease to be true, Seller shall give prompt notice to Purchaser (which notice
shall include copies of the instrument, correspondence, or document, if any,
upon which Seller's notice is based). As used in this Section 13.1, the phrase
"to the extent of Seller's actual knowledge" or "actually known to Seller" shall
mean the actual knowledge of Tara Molnar, Assistant Vice President, National
Property Management, CNA, the asset manager responsible for the Property and
Michael Versace, on-site property manager employed by Cushman & Wakefield, Inc.
("C&W") There shall be no duty imposed or implied to investigate, inspect, or
audit any such matters, and there shall be no personal liability on the part of
such individuals.

          13.1.1Power and Authority. Each of the Seller Pool Companies has the
     legal power, right and authority to enter into this Agreement and to
     consummate the transactions contemplated hereby, and each is duly formed,
     validly existing and in good standing under the Laws of the State of each
     of its respective formation/organization/incorporation and is authorized to
     do business in the State of New York; each has granted Seller and Agent
     full power and authority to act on its behalf and has authorized Seller and
     Agent to consummate this transaction and bind each of them to the
     obligations set forth in this Agreement (and shall be liable, jointly and
     severally, for all of the obligations of Seller hereunder). Agent is a
     Delaware corporation, duly organized and validly existing and in good
     standing under the laws of the State of Delaware and has the requisite
     power and authority to carry on its business in the State of New York as it
     is now being conducted. This Agreement constitutes the legal, valid and
     binding obligation of Seller enforceable in accordance with its terms and
     Seller has the legal power, right and authority to enter into this
     Agreement and to consummate the transactions contemplated hereby. Each of
     the persons signing this Agreement on behalf of Seller is authorized to do
     so.

                                       24
<PAGE>

          13.1.2 Proceedings. There is no pending or, to the extent of Seller's
     actual knowledge threatened condemnation or similar proceeding affecting
     any part of the Real Property.

          13.1.3 Contravention. Neither Seller nor any Seller Pool Company nor
     Agent is prohibited from consummating the transactions contemplated by this
     Agreement or from executing or delivering this Agreement by any Law, or any
     agreement to which Seller or any Seller Pool Company or Agent is a party or
     by which it is bound.

          13.1.4 Leases and Contracts. The Leases, listed on the Rent Roll and
     Contracts comprise all of the leases and contracts which will affect the
     Property on the Closing, true, correct and complete copies of which have
     been delivered to Purchaser, other than those leases and contracts entered
     into in accordance with Article XV. Except as disclosed in the Rent Roll
     attached hereto as Exhibit Y, which lists the tenants name, space, all
     leases, amendments, letter agreements and assignments and the dates thereof
     the expiration date of the lease and current rent and charges tenant
     security deposits, prepaid rent and arrearages, base year and base year
     amounts on account of operating expenses and real estate taxes (the "Rent
     Roll"), no base rent or additional rent or other fees or charges due under
     the respective Leases has been paid more than one (1) month in advance by
     any Tenant. Base Year and base year amounts on account of operating
     expenses and taxes are listed for information only and no representation
     and warranty is made with respect thereto. The Rent Roll lists all of the
     Leases as of the date of this Agreement. Except as otherwise set forth in
     the Rent Roll, all of the Leases are in full force and effect and none of
     them has been modified, amended, supplemented or extended. Except as
     otherwise set forth in the Rent Roll, as of the date hereof, no Tenant is
     in arrears in the payment of rent and Seller has not sent written notice to
     any Tenant claiming that such Tenant is in default, which default remains
     uncured. Except as otherwise disclosed to Purchaser as set forth on the
     Rent Roll, as of the date hereof, Seller has received no written notice of
     any claim by a Tenant against Seller or any prior landlord that has not
     been resolved for any security deposit or of any Tenant defense or off-sets
     to rent or additional rent. To the knowledge of Seller, Seller is not in
     default of any of its monetary obligations or in default of any material
     obligation as landlord under any Lease. No action or proceeding instituted
     against Seller by any Tenant is currently pending in any court with respect
     to the Property. There are no security deposits not set forth in the Rent
     Roll that have been paid (or, with respect to Letters of Credit, delivered)
     to Seller by or on behalf of any Tenant, or with respect to any of the
     Leases. Seller has not received any written notice from any Tenant claiming
     that Seller is in monetary or other material default under the Lease with
     such Tenant, which default remains uncured.

                                       25
<PAGE>

          Exhibit S lists all of the Contracts in effect as of the date hereof
     with respect to the Property and there are no service, maintenance, supply
     or management contracts or similar agreements affecting the Property,
     either written or oral, which will remain in effect beyond the Closing,
     except for those described in Section 4.1.1.1 and except for contracts that
     can be cancelled on not more than 30 days' notice without penalty or fee
     except for penalty or fee which Seller agrees to pay; there are no
     agreements which will bind the Property (including all amendments,
     modifications and supplements thereto) after the Closing other than the
     Permitted Encumbrances. To Seller's knowledge, all of the Contracts are in
     full force and effect as of the date of this Agreement, (ii) no action or
     proceeding instituted against Seller by any party to a Contract (each, a
     "Contract Party") is presently pending in any court and Seller has not
     received any written notice from any Contract Party claiming that Seller is
     in monetary or other material default under the Contract with such Contract
     Party, which default remains uncured, (iii) to Seller's knowledge, Seller
     has paid all sums currently due and payable under the Contracts except for
     sums which are not more than 30 days' past due, (iv) Seller has delivered
     to Purchaser true, correct and complete copies of all Contracts and (v)
     except as set forth on Exhibit S, all Contracts are terminable upon not
     more than 30 days' notice without penalty or fee except for fees or
     penalties which Seller is willing to pay.

          13.1.5 Compliance. Except as listed on Exhibit Z, Seller has not
     received written notice from any Governmental Authority that the Property
     is not in material compliance with all applicable Laws, except for such
     failures to comply, if any, which have been remedied.

          13.1.6 Employees. Seller represents that the employees listed on
     Exhibit AA (the "Employees") are the only employees employed at the
     Property all of whom are employed by C&W and not by Seller, and that with
     the exception of the Property Manager, the Secretary and the
     Accountant/Bookkeeper, (collectively, the "Non-Union Employees"), all
     employees on Exhibit AA are Union Employees. Exhibit BB contains a true,
     correct and complete list of all the Union Contracts with respect to the
     Employees and to Seller's knowledge, all of the Union Contracts are in full
     force and effect. "Union Contracts" shall mean all contracts, agreements,
     collective bargaining agreements and union agreements related to all
     Employees. Purchaser agrees to assume or cause a company with whom it has a
     contractual relationship ("Employer Company") to assume the Union Contracts
     with respect to such Employees and to comply with the terms thereof with
     respect to the Employees from and after the Closing. Purchaser shall offer
     to hire or cause the Employer Company to offer to hire the Employees, other
     than the Non-Union Employees, commencing on the date of the Closing and
     shall assume all liabilities and obligations to such Employees accruing
     from and after the Closing under the Union Contracts, including, without
     limitation, all salaries

                                       26
<PAGE>

     and wages, payable thereunder, all severance pay and other obligations as a
     result of any termination by Purchaser or the Employer Company of any of
     such Employees after the Closing and any liabilities or obligations under
     any employee benefit plans as defined in Section 3(3) of the Employee
     Retirement Income Security Act of 1974, as amended, maintained by Purchaser
     and with respect to any employee benefit or fringe benefit plans or
     arrangements maintained by Purchaser, in each case, to the extent such
     payments or benefits are required to be made or provided pursuant to the
     Union Contracts. Seller represents that (i) it has not entered into any
     voluntary modifications of the Union Contracts and (ii) it has made all
     payments required by the Union Contracts prior to the date of Closing.
     Seller will cause C &W to request from each of the Unions listed on Exhibit
     BB a letter dated prior to Closing stating the amount of any underfunded
     obligation, if any. Purchaser shall indemnify, defend and hold harmless
     Seller from and against any and all claims, liabilities, damages, costs and
     expenses (including, without limitation, reasonable attorneys' fees and
     disbursements) arising from Purchaser's or the Employer Company's failure
     to pay and perform its obligations with respect to the Employees hired by
     Purchaser accruing from and after the Closing under this Section 13.1.6.
     Seller shall indemnify, defend and hold harmless Purchaser from and against
     any and all claims, liabilities, damages, costs and expenses (including,
     without limitation, reasonable attorneys' fees and disbursements) arising
     from any failure by Seller to pay or perform any obligations to the
     Employees accruing prior to the Closing, provided, however, that Seller
     shall not be liable for payment of any severance pay, employee benefit plan
     obligations or other obligations (whether nor not relating to any period
     prior to the Closing) to or for the benefit of any of the Employees hired
     by Purchaser arising as a result of any termination of any such Employees
     by Purchaser or the Employer Company after the Closing. The indemnities set
     forth in this Section 13.1.6 shall survive the Closing.

          13.1.7 Litigation. There is no pending litigation affecting the
     Property except for litigation which, to Seller's knowledge, is covered by
     insurance. Seller has not received written notice from any insurance
     company that it has denied coverage in any such insured litigation. Seller
     does not have any knowledge of any threatened material litigation.

          13.1.8 Notice of Violations. Seller has not received any written
     notice from any governmental agency, lender or any Tenant that the Property
     (or any portion thereof) is in violation (which has not heretofore been
     corrected or otherwise satisfied and in connection with which all penalties
     have been paid) of (1) any of the requirements of restrictive covenants or
     other encumbrances affecting the Property (or any portion thereof) except
     as set forth on Exhibit CC and (2) any Laws bearing on the ownership,
     operation or use of the Property, including, without limitation, those
     relating to health, safety, building, fire,

                                       27
<PAGE>

     zoning, accessibility, and land use except as set forth on Exhibit Z. No
     casualty has occurred with respect to the Property within eighteen (18)
     months preceding the date hereof that has not heretofore been repair or
     restored.

          13.1.9 Licenses and Permits. Exhibit DD contains a list of all permits
     and licenses and applications for permits (including, but not limited to, a
     certificate of occupancy relating to the Improvements) from Governmental
     Authorities currently maintained by Seller in connection with its ownership
     of the Property (collectively, the "Licenses and Permits"), all of which
     Licenses and Permits (i) have been issued, or duly transferred, to Seller
     (to the extent assignable), (ii) have been paid for in full and (iii)
     Seller has not received any written notice revoking or threatening to
     revoke or terminating any License or Permit except that as of the date
     hereof, the Public Assembly Permit for the Ricker Auditorium has expired
     and although Seller has made timely application for renewal and has paid
     all application fees required to be paid in connection with the renewal,
     the current Public Assembly Permit has not been issued. Any fines or
     penalties imposed by any Governmental Authority in connection with the
     expired Public Assembly Permit shall be Seller's obligation to pay. This
     obligation of Seller shall survive Closing. Seller has delivered to
     Purchaser true, correct and complete copies of all of the Licenses and
     Permits.

          13.1.10 Allowances; Leasing Commissions. Except as otherwise set forth
     on Exhibit EE attached hereto, Seller has paid or provided for all
     construction allowances, brokerage commissions, leasing commissions,
     takeover obligations or similar tenant inducements required to be paid,
     provided or credited with respect to the current lease term of any Lease
     (as opposed to any renewal, extension or expansion term of any Lease).
     Initial installations by Seller for Tenants required with respect to the
     current term of their respective Leases, except as set forth in Exhibit FF,
     have been completed in all material respects and Seller has performed all
     other material work required to be performed by the Seller under the Leases
     up to the date of the Closing. Except as otherwise set forth on Exhibit H
     and Exhibit I, Seller is not performing any ongoing construction work in,
     on or about the Property other than normal maintenance being performed by
     Seller in the ordinary course of business. Except as set forth in the
     Leases, there are no takeback or takeover obligations under any of the
     Leases or which would otherwise be enforceable against the owner of the
     Property after the Closing.

          13.1.11 Tax Proceedings. Except as set forth on Exhibit GG , there are
     no tax reduction proceedings pending with respect to all or any portion of
     the Property. Except as disclosed on the tax bills with respect to the Real
     Property, Seller has no knowledge of, any tax abatements, deferrals or
     exemptions in effect with respect to the Property and Seller has received
     no written notice of any

                                       28
<PAGE>

     proposed increase in the assessed value of the Property or of any proposed
     public improvement assessments.

          13.1.12 Insurance. Exhibit HH attached hereto is a true, correct and
     complete list of the types and amounts of insurance coverage maintained by
     Seller and in force with respect to the Property. Except as otherwise set
     forth on Exhibit HH , Seller has not received any written notice from any
     of the insurers of the Improvements of any physical condition of the
     improvements with respect to which such insurer has required correction or
     change which has not been corrected or changed.

          13.1.13 Personal Property. Except as set forth on Exhibit C, all of
     the Personal Property, if any, to be transferred by Seller to Purchaser has
     been paid for in full and is free of all liens, claims and encumbrances.

          13.1.14 Environmental and Engineering Reports. Exhibit II is a list of
     environmental and engineering reports in Seller's possession or control
     relating to the Property, and true and complete copies of same have
     heretofore been delivered by Seller to Purchaser.

          13.1.15 Utilities. Seller has received no written notice from any
     utility company or governmental or quasi-governmental entity of any fact or
     condition which could result in the discontinuation of presently available
     public utilities for the Property.

          13.1.16 Business Improvement District. The Property is located in and
     subject to assessments imposed by a Business Improvement District. Seller
     has furnished to Purchaser copies of the current bills for assessments
     required to be paid in connection with the Business Improvement District.

          13.1.17 Non-Foreign Person. Seller is a "United States Person" within
     the meaning of Section 1445(f)(3) and 7701(a)(30) of the Internal Revenue
     Code of 1986, as amended.

          13.1.18 Access to Documents. To Seller's knowledge, Seller has
     provided Purchaser with access to any and all Leases, Contracts, Licenses
     and Permits, books and records, plans, documents and information relating
     to the Property and the ownership and operation thereof which are in the
     possession or control of Seller.

          13.1.19 Brokerage Agreements. The only brokerage or leasing agreements
     relating to the Leases existing on the date hereof or that will be binding
     on Purchaser after the Closing are those set forth on Exhibit JJ (the
     "Brokerage Agreements"). Seller has delivered or caused to be delivered to

                                       29
<PAGE>

     Purchaser true, correct and complete copies of each Brokerage Agreement
     listed on Exhibit JJ.

          13.1.20 Work. Exhibit H and Exhibit I contains a list of all material
     work in progress by Seller at the Property, the Contracts or agreements
     entered into with respect to such work, a description of such work, an
     estimate of the percentage of such work which is complete and an estimate
     of the cost to complete.

          13.1.21 Rezoning. There is no pending request by Seller for a rezoning
     of the Property or any other variance for the Property.

          13.1.22 Financial Statements. Seller has delivered to Purchaser its
     audited Financial Statements for the period 1997 to 1999. Expenses in
     connection with the operation and ownership of the Property (other than
     with respect to the Ricker Auditorium and Fitness Center and the
     Continental Club) are shown on the books and records of Seller delivered to
     Purchaser and not instead on the books and records of any other entity
     (except in accordance with accounting, regulatory or reporting matters), it
     being understood that the foregoing representation is not a representation
     or warranty as to the amount of any such expenses.

     13.2 Purchaser's Warranties and Representations. The matters set forth in
this Section 13.2 constitute representations and warranties by Purchaser which
are now and shall, at the Closing, be true and correct.

          13.2.1 Power and Authority. Purchaser is a Delaware corporation, duly
     organized and validly existing and in good standing under the laws of the
     State of Delaware and has the requisite power and authority to carry on its
     business in the State of New York as it is now being conducted. This
     Agreement constitutes the legal, valid and binding obligation of Purchaser
     enforceable in accordance with its terms; Purchaser has the legal power,
     right and authority to enter into this Agreement and to consummate the
     transactions contemplated hereby.

          13.2.2 Execution and Delivery. The execution and delivery of this
     Agreement and the performance by Purchaser of its obligations hereunder are
     not and will not violate any law, rule, judgment, regulation, order, writ,
     injunction or decree of any court or the United States of America or the
     State of New York or any political subdivision of either of the foregoing,
     to the extent any of the foregoing have jurisdiction over the Purchaser or
     the Property, or any decision or ruling of any arbitrator to which
     Purchaser is a party or by which Purchaser or the Property is bound or
     affected, such that Purchaser's performance hereunder would be materially
     and adversely impacted on account of such violation.

                                       30
<PAGE>

          13.2.3 Independent Investigation. The consummation of this transaction
     shall constitute Purchaser's acknowledgment that it has independently
     inspected and investigated the Property and has made and entered into this
     Agreement based upon such inspection and investigation and its own
     examination of the condition of the Property and the representations and
     warranties of Seller set forth herein.

          13.2.4 Purchaser Reliance. Purchaser is experienced in and
     knowledgeable about the ownership and management of commercial real estate
     properties, and it has relied and will rely exclusively on its own
     consultants, advisors, counsel, employees, agents, principals and/or
     studies, investigations and/or inspections with respect to the Property,
     its condition, value and potential except as expressly set forth in Section
     13.1 or elsewhere herein. Purchaser agrees that, notwithstanding the fact
     that it has received certain information from Seller or its agents or
     consultants, Purchaser has relied solely upon and will continue to rely
     solely upon its own analysis and will not rely on any information provided
     by Seller or its agents or consultants, except as expressly set forth in
     Section 13.1.

     13.3 No Other Warranties and Representations. Except as specifically set
forth in this Article XIII or elsewhere herein, neither Seller nor Purchaser
have made, make or have authorized anyone to make, any warranty or
representation as to the Leases, the Contracts, any written materials delivered
to Purchaser or the persons preparing such materials, the present or future
physical condition, development potential, zoning, building or land use law or
compliance therewith (including, without limitation, the Americans with
Disabilities Act),operation, income generated by, or any other matter or thing
affecting or relating to the Property or any matter or thing pertaining to this
Agreement. Purchaser expressly acknowledges that no such warranty or
representation has been made and that Purchaser is not relying on any warranty
or representation whatsoever other than as is expressly set forth in this
Article XIII or elsewhere herein. Purchaser shall accept the Property "as is"
and in its condition on the date hereof subject only to the express provisions
of this Agreement and ordinary wear and tear.

          13.3.1 No Environmental Representations. Seller makes no
     representations or warranties as to whether the Property contains asbestos,
     radon or any hazardous materials or harmful or toxic substances, or
     pertaining to the extent, location or nature of same, if any. Further, to
     the extent that Seller has provided to Purchaser information from any
     inspection, engineering or environmental reports concerning asbestos, radon
     or any hazardous materials or harmful or toxic substances, Seller makes no
     representations or warranties with respect to the accuracy or completeness,
     methodology of preparation or otherwise concerning the contents of such
     reports.

                                       31
<PAGE>

          13.3.2 Release of Claims. Purchaser acknowledges and agrees that
     Seller makes no representation or warranty as to, and Purchaser waives and
     releases Seller from any present or future claims arising from or relating
     to, the presence or alleged presence of asbestos, radon or any hazardous
     materials or harmful or toxic substances in, on, under or about the
     Property, including without limitation any claims under or on account of
     (i) the Comprehensive Environmental Response, Compensation and Liability
     Act of 1980, as the same may have been or may be amended from time to time,
     and similar state statutes, and any regulations promulgated thereunder,
     (ii) any other federal, state or local law, ordinance, rule or regulation,
     now or hereafter in effect, that deals with or otherwise in any manner
     relates to, environmental matters of any kind, (iii) this Agreement, or
     (iv) the common law. The provisions of this Section 13.3.2 shall not be
     deemed to limit the right of Purchaser to name Seller as a party defendant
     in any action brought by any third party including any governmental entity
     for damages which such third party alleges have been caused by
     environmental conditions affecting or related to the property which existed
     prior to the Closing.

                                  ARTICLE XIV

                            CASUALTY AND CONDEMNATION

     14.1 Insured Casualty. Promptly upon learning thereof, Seller shall give
Purchaser written notice of any damage or destruction of the Property occurring
prior to the Closing. If prior to the Closing the Property is materially damaged
or destroyed, which damage or destruction is covered by insurance, Purchaser
shall have the option of either (i) applying the proceeds of payment under any
insurance policies toward the payment of the Purchase Price to the extent
insurance payments have been received by Seller, receiving from Seller an amount
equal to any applicable deductible under any such insurance policy and receiving
an assignment from Seller of Seller's right, title and interest in any such
awards or payments, or (ii) terminating this Agreement by delivering written
notice of such termination to Seller within 30 days after Purchaser has received
written notice from Seller of such material damage or destruction in which event
this Agreement shall terminate immediately and Purchaser shall receive the
return of the Deposit and thereafter neither party shall have any further rights
or obligations hereunder except those specifically stated to survive a
termination of this Agreement. If prior to the Closing an immaterial portion of
the Property is damaged or destroyed, which damage or destruction is covered by
insurance, then Purchaser shall have the option to either (i) cause Seller to
commence to repair or replace such damage to or destruction of the Property or
the applicable portion thereof or (ii) proceed to Closing with, the proceeds of
any insurance policies and any applicable deductible under any insurance
policies being applied toward the payment of the Purchase Price to the extent
such insurance payments have been received by Seller and Seller shall assign to
Purchaser all of Seller's right, title and interest in any such awards or
payments. For purposes of this Section, the word

                                       32
<PAGE>

"material" shall mean any damage or destruction which Seller and Purchaser, in
its respective reasonable judgment, believes will cost more than $10,000,000 to
repair and/or replace.

     14.2 Uninsured Casualty. In the event of any uninsured damage to or
destruction of the Property or any portion thereof (notice of which shall be
given to Purchaser by Seller promptly following its occurrence) prior to the
Closing, which damage or destruction can, in Purchaser's reasonable judgment
based upon the written advice of engineers and/or architect be repaired or
replaced for a cost not to exceed $10,000,000. at Purchaser's option, Seller
shall either (i) commence to repair or replace such damage to or destruction of
the Property or the applicable portion thereof or (ii) proceed to Closing,
whereupon Purchaser will accept the Property as it is together with a reduction
of the Purchase Price in the amount of the engineer/architect's estimate of the
cost to replace the damaged portion of the Property. If the cost of such repair
or replacement exceeds $10,000,000, as reasonably determined by Purchaser then
Purchaser may, at its option, by notice to Seller given within thirty (30) days
after the date that the cost to repair or replace such damage is determined,
unilaterally terminate this Agreement, in which event this Agreement shall
terminate immediately, the Deposit shall be returned to Purchaser and thereafter
neither party shall have any further rights or obligations hereunder except
those expressly stated to survive a termination hereof. If Purchaser does not
elect to terminate this Agreement as provided in this Section 14.2 , then this
Agreement shall continue between Purchaser and Seller and Purchaser shall
receive a credit, at Closing, in an amount equal to the estimated cost of such
restoration as reasonably determined by Purchaser.

     14.3 Condemnation. Promptly upon learning thereof, Seller shall give
Purchaser written notice of any threatened or commenced or consummated
condemnation. If prior to the Closing, a material portion (as hereinafter
defined) of the Property is condemned, Purchaser may, at its option, by notice
to Seller given thirty (30) days after Purchaser is notified of such actual or
possible proceedings, terminate this Agreement, in which event the Deposit shall
be returned to Purchaser and thereafter neither party shall have any further
rights or obligations hereunder, except those expressly stated to survive the
termination hereof. If Purchaser fails to do so, Purchaser shall be deemed to
have elected to continue this Agreement, in which event Seller shall, at the
Closing, assign to Purchaser its entire right, title and interest in and to any
condemnation award (and Seller shall pay to Purchaser any such compensation and
damages already received) and Purchaser shall have the sole right from the date
thereof through the Closing to negotiate and otherwise deal with the condemning
authority in respect of such matter. In the event that less than a material
portion of the Property is condemned, this Agreement shall continue and Seller
shall, at the Closing, assign to Purchaser its entire right, title and interest
in and to any condemnation award (and Seller shall pay to Purchaser any such
compensation and damages already received) and Purchaser shall have the sole
right from the date hereof through the Closing to negotiate and otherwise deal
with the condemning

                                       33
<PAGE>

authority in respect of such matter. For purposes of this Section 14.3,
"material" shall mean a condemnation which Seller and Purchaser, in its
respective reasonable judgment, believes effects more than five percent (5%) of
the Building or affects access to or the ability to use the Property as
presently used or has a material adverse effect on the income from the Property.

     14.4 Purchaser's Right to Participate and/or Consent. In the event that
there is a casualty or condemnation as set forth in Section 14.1-14.3 above and
Purchaser does not terminate this Agreement, Purchaser shall (i) in the event of
an insured casualty, have the right to participate in any insurance settlement
and, if Purchaser elects to have Seller repair or replace such damage, approve
(which approval shall not be unreasonably withheld or delayed) all plans and
specification, contractors and material terms of any contracts for such repair
or replacement, (ii) in the event of an uninsured casualty, if Purchaser elects
to have Seller repair or replace such damage, have the right to approve (which
approval shall not be unreasonably withheld or delayed) all plans and
specifications, contractors and material terms of any contracts for such repair
or replacement and (iii) in the event of a condemnation, have the right to
participate in any condemnation award proceeding.

     14.5 General Obligations Law. The parties understand and agree that the
provisions of this Article XIV shall govern and supersede the provisions of
Section 5-1311 of the General Obligations Law of the State of New York.

                                   ARTICLE XV

                          CONDUCT PRIOR TO THE CLOSING

     15.1 Conduct by Seller. Seller hereby covenants and agrees with Purchaser
that during the Contract Period, Seller shall operate the Property in a first
class manner in accordance with its past business practices. Without limiting
the foregoing, Seller shall:

          (i) maintain in full force and effect the insurance policies described
     in Exhibit HH;

          (ii) between the date hereof and the Closing, Seller will advise
     Purchaser of any written notice Seller receives after the date hereof from
     any Governmental Authority relating to the violation of any Law regulating
     the condition or use of the Property; and

          (iii) reasonably cooperate with Purchaser's attempts to obtain
     subordination and/or non-disturbance and attornment agreements from Tenants
     to the extent requested by Purchaser's lender.

                                       34
<PAGE>

     15.2 Actions Prohibited. During the Contract Period Seller shall not,
without the prior written approval of Purchaser:

          (i) make any unreimbursed capital expenditures in an amount not to
     exceed $30,000 in the aggregate with respect to the Property other than (a)
     in the ordinary course of operating the Property, (b) required for
     maintenance and repair, (c) required by any of the Leases or the Contracts
     or by governmental requirements affecting the Property, (d) required by
     Section 4.1.1.1 or (e) required by Section 4.1.1.3 all of which shall be
     made at Seller's expense unless otherwise set forth in Section 4.1.1.1 and
     Section 4.1.1.3;

          (ii) sell, transfer, encumber or change the status of title of all or
     any portion of the Property;

          (iii) change or attempt to change, directly or indirectly, the current
     zoning of the Real Property;

          (iv) cancel, amend or modify any Licenses and Permits held by Seller
     with respect to the Property or any part thereof which would be binding
     upon Purchaser after the Closing.

          (v) grant any consent of landlord under a Lease unless such consent is
     for a de minimis matter or unless required by the terms of the Lease;

          (vi) bring (or permit, to the extent within Seller's knowledge and
     control, to be brought) Hazardous Materials or substances on or into the
     Property in violation of Environmental Laws;

          (vii) remove or dispose of (or permit, to the extent within Seller's
     knowledge and control, to be removed or disposed of) any Hazardous
     Materials or substances existing on or in the Property in violation of
     Environmental Laws;

          (viii) remove (unless the same are replaced with similar or comparable
     items of at least equal quality prior to the Closing) any fixtures,
     equipment or Personal Property included hereunder;

          (ix) create any encumbrances affecting title to the Land or sell or
     transfer any portion of or interest in the Property;

          (x) unless and until this Agreement shall be terminated in accordance
     with the terms hereof, Seller shall not solicit or pursue or entertain any
     offers to purchase the Property, nor shall Seller enter into any
     negotiations with third parties with respect to a sale of the Property;

                                       35
<PAGE>

          (xi) enter into, amend, modify or terminate any Union Contract; or

          (xii) terminate the lease dated May 1, 1992 between Seller, as
     landlord, and ASARCO Incorporated, as tenant, as amended from time to time
     (the "ASARCO Lease") for the entire 25th Floor unless and until Seller has
     entered into an amendment of the GS Lease to include the 25th Floor or a
     new lease for such space has been entered into with GS; provided that such
     amendment or lease with GS (i) commences upon the expiration of the ASARCO
     Lease with respect to the 25th Floor, (ii) is on the same terms and
     conditions set forth on Exhibit W and (iii) is otherwise in form and
     substance reasonably acceptable to Purchaser.

     15.3 Leases and Contracts During Due Diligence Period. Prior to the end of
the Due Diligence Period, Seller may not enter into, cancel, amend, or modify
any Contracts or any Leases without approval by Purchaser which approval will
not be unreasonably withheld or delayed. In addition, Seller shall not consent
to any assignment or sublease in connection with any Lease, unless required to
do so pursuant to the terms of the Lease. To the extent that any Contracts
(including, without limitation, the management agreement) have been canceled or
terminated on or before the Closing Date (other than termination by expiration
of time), Seller shall deliver evidence of such cancellation or termination to
Purchaser at the Closing.

     15.4 After Due Diligence Period. After the Due Diligence Period, if
Purchaser does not terminate this Agreement, Seller may not enter into any new
lease or contract (unless such contracts are terminable on thirty (30) days'
notice) or cancel, amend or modify any Contracts or any Leases without
Purchaser's consent, which consent may be withheld by Purchaser in its sole and
absolute discretion. In addition, Seller shall not consent to any assignment or
sublease in connection with any Lease unless required to do so pursuant to the
terms of the Lease, subject to Purchaser's consent based on the standard for
consent set forth in the relevant Lease. To the extent that any Contracts
(including, without limitation, the management agreement) have been canceled or
terminated on or before the Closing Date (other than termination by expiration
of time), Seller shall deliver evidence of such cancellation or termination to
Purchaser at the Closing. Notwithstanding the preceding sentence, Seller may
enter into any new contracts without Purchaser's consent if doing so is in the
ordinary course of operating the Property and the contract (i) will not be
binding on Purchaser or (ii) is cancelable on 30 days or less notice without
penalty or premium.

     If Seller shall request Purchaser's approval to any of the foregoing
matters, Purchaser shall have ten days from its receipt of such request to give
Seller notice of its approval or disapproval of such matter. If Purchaser does
not give such notice, such matter shall be deemed approved by Purchaser. Any
unreimbursed capital expenditure approved by Purchaser or deemed approved by
Purchaser shall be at Purchaser's expense.

                                       36
<PAGE>

     15.5 Conduct by Purchaser. No later than 75 days prior to Closing,
Purchaser shall notify Seller in writing of any Contract that Purchaser does not
desire to assume. Seller shall pay all costs associated with such termination(s)
and terminate the same prior to Closing and provide written evidence of such
termination to Purchaser at Closing.

     15.6 Confidentiality. Seller and Purchaser shall, prior to the Closing,
maintain the confidentiality of this sale and purchase and shall not, except as
required by law or governmental regulation applicable to Seller or Purchaser,
which, with respect to Seller, shall include Standard & Poor's and insurance
regulators, disclose the terms of this Agreement or of such sale and purchase to
any third parties whomsoever other than the principals of Georgetown, Newmark,
the Title Company and such other persons whose assistance is required in
carrying out the terms of this Agreement including, without limitation, any
potential or actual lenders or partners of Purchaser. Neither Seller nor
Purchaser shall at any time issue a press release or otherwise communicate with
media representatives regarding this sale and purchase unless such release or
communication has received the prior approval of the other party hereto.
Purchaser agrees that the Confidentiality Agreement, dated as of June 23, 2000
from Purchaser for the benefit of Seller is in effect, that all documents and
information regarding the Property of whatsoever nature made available to it by
Seller or Seller's agents and the results of all tests and studies of the
Property (collectively, the "Proprietary Information") are confidential and
Purchaser shall not disclose any Proprietary Information to any other person
except those assisting it with the analysis of the Property and any potential or
actual lenders or partners of Purchaser, and only after procuring such person's
agreement to abide by these confidentiality restrictions. This Section 15.5
shall survive the Closing or termination of the Agreement.

                                  ARTICLE XVI

                                     NOTICES

     All notices, demands or other communications given hereunder shall be in
writing and shall be deemed to have been duly delivered upon the receipt by
facsimile transmission as evidenced by receipt transmission report, or upon the
delivery by overnight express delivery service or by hand or 3 business days
after mailing by certified mail postage prepaid, return receipt requested,
addressed as follows:

     If to Purchaser, to:

     PGI-WvF 180, L.P.
     c/o Paramount Group, Inc.
     1633 Broadway, Suite 1801
     New York, New York, 10019
     Attention: Albert P. Behler

                                       37
<PAGE>

     Phone: 212-237-3110
     Fax: 212-974-6435

     Paramount Group, Inc.
     1633 Broadway, Suite 1801
     New York, New York, 10019
     Attention: Daniel A. Lauer
     Phone: 212-237-3109
     Fax: 212-237-3197

     with a copy to:

     Willkie Farr & Gallagher
     787 Seventh Avenue
     New York, New York 10019
     Attention: Eugene A. Pinover, Esq.
     Phone: 212-728-8254
     Fax: 212-728-8111

     If to Seller, to:

     Margaret M. Steck
     Vice President
     CNA
     CNA Plaza - 14 North
     Chicago, IL  60685

     and

     Thomas Pontarelli
     Senior Vice President
     CNA
     CNA Plaza - 40 South
     Chicago, IL  60685

     and

     Jacquelyne Belcastro, Esq.
     CNA
     CNA Plaza - 43 South
     Chicago, IL  60685

                                       38
<PAGE>

     with a copy to:

     Barry Mills, Esq.
     Debevoise & Plimpton
     875 Third Avenue
     New York, New York  10022

or to such other address or to such other person as any party shall designate to
the others for such purpose in the manner hereinabove set forth.

                                  ARTICLE XVII

                        TRANSFER OF TITLE AND POSSESSION

     17.1 Transfer of Possession. Possession of the Property shall be
transferred to Purchaser at the Closing subject to the Permitted Encumbrances.

          17.1.1 Delivery of Documents at Closing. At the Closing, Seller shall
     deliver to Purchaser originals or copies of any additional documents,
     instruments or records in the possession of Seller or its agents which are
     necessary for the ownership and operation of the Property.

                                 ARTICLE XVIII

                               GENERAL PROVISIONS

     18.1 Captions. Captions in this Agreement are inserted for convenience of
reference only and do not define, describe or limit the scope or the intent of
this Agreement or any of the terms hereof.

     18.2 Exhibits. All Exhibits referred to herein and attached hereto are a
part hereof.

     18.3 Entire Agreement. This Agreement contains the entire agreement between
the parties relating to the transaction contemplated hereby and all prior or
contemporaneous agreements, including without limitation, the LOI,
understandings, representations and statements, oral or written, are merged
herein.

     18.4 Modification. No modification, waiver, amendment, discharge or change
of this Agreement shall be valid unless the same is in writing and signed by the
party against which the enforcement of such modification, waiver, amendment,
discharge or change is or may be sought.

                                       39
<PAGE>

     18.5 Attorneys' Fees. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all reasonable attorneys' fees and all costs, including but not limited to
service of process, filing fees, court and court reporter costs, investigative
costs, expert witness fees and the cost of any bonds, whether taxable or not,
and such reimbursement shall be included in any judgment, decree or final order
issued in that proceeding. The "prevailing party" means the party in whose favor
a judgment, decree, or final order is rendered. This provision shall survive
Closing.

     18.6 Governing Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of New York, subject to any adjournment
rights set forth in this Agreement.

     18.7 Time of Essence. Time is of the essence to this Agreement and to all
dates and time periods set forth herein.

     18.8 Survival of Warranties. Except as otherwise specifically set forth in
this Agreement, only the warranties and representations contained in Sections
13.1 and 13.2 and the provisions of Section 13.3 shall survive the Closing, the
delivery of the Deed and the payment of the Purchase Price, provided that (i)
the representations and warranties set forth in Sections 13.1.1-13.1.3, 13.2.1,
13.2.2 and 13.1.17 shall survive indefinitely and all other representations and
warranties set forth in Article 13 shall survive for a period of 12 months after
the Closing, except to the extent that Purchaser or Seller, as the case may be,
shall have commenced, on or before such 12 month anniversary (the "Warranty
Period"), a legal proceeding based on the breach thereof as of the date of the
Closing, and (ii) the maximum total liability for which Seller shall be
responsible with respect to all representations and warranties and each Landlord
Estoppel shall not exceed Seven Million Five Hundred Thousand Dollars
($7,500,000) in the aggregate, and no claim for breach of representation or
warranty may be made unless the claims, individually or in the aggregate, shall
be in excess of $100,000 after taking account all prior claims, and if such
claims in the aggregate exceed $100,000, Purchaser may make claims for all
breaches without regard to the $100,000 deductible. Unless otherwise expressly
herein stated to survive, all other representations, covenants, conditions and
agreements contained herein shall merge into and be superseded by the various
documents executed and delivered at the Closing and shall not survive the
Closing. The liability of the Seller to Purchaser for any matter disclosed by
Seller or learned by Purchaser prior to the Closing shall be governed by Section
3.8. At Closing, Seller shall deliver to Purchaser a guarantee in the form of
Exhibit J from the Guarantor agreeing to guarantee the obligations of Seller
with respect to representations and warranties of Seller set forth herein and
Seller's statements in the Landlord Estoppels up to the amount of $7,500,000.

                                       40
<PAGE>

The liability of Seller pursuant to this Section 18.8 is in addition to and
independent of any liability of Seller pursuant to Section 3.8.

     18.9 Assignment by Purchaser. Purchaser may not assign its rights under
this Agreement except to an Affiliate (as herein defined) provided, that any
such Affiliate shall expressly assume, in writing, the covenants, undertakings,
warranties, representations and all other obligations of Purchaser under this
Agreement, whether before or after Closing and upon such assignment Purchaser
shall be released from its obligations hereunder.

     18.10 Severability. If any term, covenant, condition, provision or
agreement herein contained is held to be invalid, void or otherwise
unenforceable by any court of competent jurisdiction, the fact that such term,
covenant, condition, provision or agreement is invalid, void or otherwise
unenforceable shall in no way affect the validity or enforceability of any other
term, covenant, condition, provision or agreement herein contained.

     18.11 Successors and Assigns. All terms of this Agreement shall be binding
upon, inure to the benefit of and be enforceable by, the parties hereto and
their respective legal representatives, successors and assigns (subject to
Section 18.9).

     18.12 Interpretation. Seller and Purchaser acknowledge each to the other
that both they and their counsel have reviewed and revised 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.

     18.13 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed original; such
counterparts shall together constitute but one agreement.

     18.14 Recordation. This Agreement may not be recorded and any attempt to do
so shall be of no effect whatsoever.

     18.15 Limitation on Liability. In any action brought to enforce the
obligations of Seller under this Agreement, the judgment or decree shall be
enforceable against Seller only to the extent of its interest in the Property,
including any proceeds thereof, and no other property or assets of Seller shall
be subject to levy, execution or lien for the satisfaction of any remedies
against Seller unless Seller has committed fraud, in which event there shall be
no limit to the liability of Seller. This provision shall survive the Closing.

     18.16 WAIVER OF JURY TRIAL. THE PARTIES HERETO HEREBY EXPRESSLY WAIVE ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM,

                                       41
<PAGE>

DEMAND, ACTION OR CAUSE OF ACTION (a) ARISING UNDER THIS AGREEMENT OR THE OTHER
AGREEMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION
THEREOF OR (b) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR
THE OTHER AGREEMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND THE PARTIES HEREBY AGREE AND
CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY
MIGHT OTHERWISE HAVE TO TRIAL BY JURY. THIS SECTION SHALL SURVIVE CLOSING OR
TERMINATION OF THIS AGREEMENT.

     18.17 Further Assurances. Seller, Agent and Purchaser each agree to do such
further acts and things and to execute and deliver such additional agreements
and instruments as the other may reasonably require to consummate, evidence or
confirm the sale or any other agreement contained herein in the manner
contemplated hereby. This Section shall survive the Closing.

     18.18 Non-Waiver of Rights. No failure or delay of either party in the
exercise of any right given to such party hereunder shall constitute a waiver
thereof unless the time specified herein for exercise of such right has expired,
nor shall any single or partial exercise of any right preclude other or further
exercise thereof or of any other right. The waiver of any breach hereunder shall
not be deemed to be a waiver of any other or any subsequent breach hereof.

     18.19 Mortgage Transactions. Notwithstanding anything to the contrary set
forth herein, Purchaser may, if it so elects, take such steps as Purchaser shall
deem necessary or desirable to encumber the Property at or immediately prior to
the Closing with a mortgage (the "Mortgage") that encumbers other premises
located in the City and State of New York (a "Mortgage Transaction"). Seller
shall use reasonable efforts to cooperate (which cooperation shall be at
Purchaser's sole cost and expense) in so effecting a Mortgage Transaction, if so
desired by Purchaser, provided that such structuring shall not increase Seller's
liabilities or obligations hereunder or adversely affect Seller's rights
hereunder and provided further that the following conditions shall be satisfied
prior to the Mortgage encumbering the Property: (i) there shall only be one
Mortgage and one

                                       42
<PAGE>

Mortgage lender (" Mortgagee"), (ii) the Mortgage shall be prepayable at any
time, (iii) Purchaser shall deposit with Agent an irrevocable Letter of Credit
acceptable to Seller, drawn on a Bank acceptable to Seller in its sole
discretion, in an amount equivalent to 125% of the Mortgage, naming Agent as
beneficiary and giving Agent the absolute right to draw down the Letter of
Credit on the date following the date of Closing (the "Pay-off Date"), if the
Closing does not occur, (iv) Purchaser shall deliver a pay-off letter from the
Mortgagee stating the full amount required to satisfy the Mortgage on the
Pay-off Date, and the per diem amount required for each day thereafter, and, (v)
Purchaser shall deliver to Seller a cash deposit in an amount sufficient to pay
the first two monthly installments due on the note secured by the Mortgage. In
providing such assistance, Seller shall execute such documents, if any, as may
be reasonably required by Purchaser to effectuate such encumbrance ("Mortgage
Documents") and otherwise comply with the provisions of this Section 18.19,
provided that the Mortgage Transaction and the Mortgage Documents shall not (a)
require Seller to execute any contract, make any commitment, or incur any
obligations, contingent or otherwise, to third parties which are not fully
released as part of the Closing, (b) delay the Closing, and (c) otherwise be
contrary to or inconsistent with the terms of this Agreement. Any Mortgage
Document that Purchaser shall request Seller to execute shall be prepared and
submitted to Seller at least five (5) business days prior to the date that
Seller's execution thereof is requested. Seller shall execute any such Mortgage
Document only if it conforms in all respects to the provisions of this Agreement
relating to a Mortgage Document. Purchaser hereby agrees to indemnify, defend
and hold Seller, its respective partners and the heirs, successors and assigns
thereof, harmless from, against and in respect of, and shall on demand reimburse
Seller, its respective partners and the heirs, successors and assigns thereof
for, any and all loss, liability, damage or expense, including but not limited
to reasonable attorneys' fees and disbursements, arising out of or in any way
connected with the Mortgage Transaction or any Mortgage Document which would not
have been incurred if there was no Mortgage Transaction.

     18.20 Credit Lyonnaise Rouse (USA) ("Credit Lyonnaise") Transaction. Prior
to Closing, Seller may (i) enter into an agreement with Credit Lyonnaise
pursuant to which Credit Lyonnaise will agree to surrender its leasehold
interest on a portion of the 19th floor of the Property on or prior to December
31, 2000, (the "Credit Lyonnaise Surrender") and otherwise on terms and
conditions reasonably acceptable to Purchaser and Seller and (ii) enter into an
amendment to the GS Lease (the "19th Floor Amendment") pursuant to which GS will
agree to lease the portion of the 19th floor surrendered by Credit Lyonnaise on
terms and conditions set forth on Exhibit LL and otherwise reasonably acceptable
to Purchaser. Seller's right to enter into the Credit Lyonnaise Surrender or the
19th Floor Amendment shall be contingent upon Seller's entering into the other
such agreement. In the event that the Credit Lyonnaise Surrender and the 19th
Floor Amendment have not both been executed prior to Closing, Purchaser shall
receive a credit at Closing in the amount of One Million One Hundred Ninety Two
Thousand ($1,192,000) Dollars and shall be required to close. In the event that
the

                                       43
<PAGE>

Credit Lyonnaise Surrender and the 19th Floor Amendment are in full force and
effect at Closing, but the Fixed Rent pursuant to the 19th Floor Amendment is
not payable by GS on the Closing Date, Seller shall pay to Purchaser (or credit
against he Purchase Price) the difference between (x) the per diem Fixed Rent
that would be payable by GS pursuant to the 19th floor Amendment and (y) the per
diem fixed rent that is payable by Credit Lyonnaise, from the Closing Date until
the date that GS is required to begin paying Fixed Rent, or, in the event that
the Credit Lyonnaise lease is terminated prior to the Closing Date and the GS
obligation to pay Fixed Rent has not commenced, the amount of Fixed Rent that GS
would be obligated to pay pursuant to the 19th Floor Amendment from the Closing
Date until the date that Fixed Rent is payable by GS pursuant to the 19th Floor
Amendment. If the amount of the payment or credit cannot be calculated at
Closing, Seller shall make such payments to Purchaser monthly and such payment
obligations shall survive Closing and shall be covered by the Guarantee.

     18.21 Indemnity by Seller. Seller shall indemnify, defend, and hold
Purchaser harmless from and against any and all loss, cost, expense (including
reasonable attorneys' fees and disbursements), damage or liability arising out
of, directly or indirectly, (a) tort claims, (including those for bodily injury,
wrongful death, or property damage) against Purchaser or the Property based on
causes of action which arose, accrued or relate to facts occurring prior to the
Closing, not caused by Purchaser, its agents, contractors and other
representatives and (b) claims by Tenants (including, without limitation, claims
with respect to overcharges of rent or additional rent but only to the extent of
amounts received by Seller from Tenants), employees, contractors or parties
under the Contracts and utility companies, with respect to matters that occurred
or obligations which accrued prior to the Closing. The provisions of this
Section 18.21 shall survive the Closing for the statute of limitation with
respect to each specific claim.

     18.22 Indemnity by Purchaser. Purchaser shall indemnify, defend, and hold
Seller harmless from and against any and all loss, cost, expense (including
reasonable attorneys' fees and disbursements), damage or liability arising out
of, directly or indirectly, (a) tort claims, (including those for bodily injury,
wrongful death, or property damage) against Seller or the Property based on
causes of action which arose, accrued or relate to facts occurring after the
Closing not caused by Seller, its agents, contractors and other representatives
and (b) claims by Tenants, employees, contractors under the Contracts, utility
companies, and the holder of any mortgage on the Property (or any portion
thereof), with respect to matters that occurred or obligations which accrued
after the Closing. The provisions of this Section 18.22 shall survive the
Closing for the statute of limitations with respect to each specific claim.

     18.23 Counterparts. This Agreement may be executed in any number of
counterparts, and each counterpart hereof shall be deemed an Original
instrument. But all counterparts together shall constitute but one agreement.
Facsimile signatures shall be deemed originals.

                                       44
<PAGE>

     18.24 Indemnification. If, pursuant to this Agreement, Seller has agreed to
indemnify Purchaser with respect to a particular matter, Seller shall be deemed
to have agreed to indemnify Purchaser for all losses, costs, liabilities,
damages and expenses (including, without limitation (provided Purchaser shall
prevail in the enforcement of the indemnity in connection with such matter)
reasonable attorneys' fees and disbursements, court costs and enforcement costs)
suffered or incurred by Purchaser with respect to such matter, provided,
however, that in no event shall Seller's liability exceed the maximum amounts,
if any, provided for in this Agreement, including, without limitation, in
Section 3.8, and 18.8.

     18.25 Definitions. The following terms used but not otherwise defined
herein shall have the following meanings.

     "Affiliate" as used with respect to Seller or any other Person, shall mean
any Person controlled, controlled by or under common control with Seller. The
term "control" and the correlative terms controlled, controlled by and under
common control with shall mean the power to direct the management and policies
of such Person.

     "Affiliate" as used with respect to Purchaser, shall mean (i) Werner Otto
and/or his direct descendants, (ii) Wilhelm von Finck, Sr., Wilhelm von Finck,
Jr. and their descendants (iii) trusts for the benefit of any person(s)
described in clauses (i) and (ii) and (iv) entities which one or more of the
persons or entities described in clauses (i), (ii) or (iii) control. As used
herein, "descendants" shall include legally adopted persons; and "control" shall
mean the ability to direct the management and operation of the entity and the
ability of another party to approve management decisions shall not be deemed a
lack of control.

     "business day" shall mean any day other than a Saturday, Sunday or other
day on which commercial banks are permitted or required to be closed in the
State of New York.

     "Closing Date" shall mean the date on which the Closing occurs as provided
in Section 8.1.

     "Environmental Laws" mean the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Resource Conservation and Recovery
Act of 1976, each as amended, together with all other applicable laws (including
rules, regulations, codes, plans, contaminant levels, clean-up levels,
injunctions, judgments, orders, decrees, rulings, and charges thereunder) of
federal, state, local, and foreign governments (and all agencies thereof)
concerning pollution or protection of the environment, including laws relating
to emissions, discharges, releases, or threatened releases of pollutants,
contaminants, or chemical, industrial, hazardous, or toxic or other materials or
wastes into ambient air, surface water, ground water, or lands or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage,
disposal,

                                       45
<PAGE>

transport, or handling of pollutants, contaminants, or chemical, industrial,
hazardous, or toxic or other materials or wastes; all to the extent applicable
to the Property or any operations conducted thereat.

     "Governmental Authority" means any agency, bureau, commission, court,
department, official political subdivision, tribunal or other instrumentality of
any government whether federal, state, local, domestic or foreign.

     "Hazardous Materials" means any substance, material, waste, gas or
particulate matter which (i) is regulated by the United States Government, the
State of New York, any other state with jurisdiction, or any local governmental
authority, or (ii) the exposure to, or manufacture, possession, presence, use,
generation, storage, transportation, treatment, release, disposal, abatement,
cleanup, removal, remediation or handling of is prohibited, controlled or
regulated by any Environmental Law, or (iii) requires investigation or
remediation under any Environmental Law or common law; provided, however, that
solvents, paints, cleaning materials and any other substances commonly used in
connection with the operation and/or maintenance of the Property shall not be
included in the foregoing definition so long as such materials are used, stored
and disposed of in accordance with Environmental Laws.

     "Laws" shall mean any applicable law, rule, regulation (including, without
limitation, the Americans with Disabilities Act) or municipal ordinances, orders
or requirements that have been noted in or issued by any federal, state or
municipal department with competent jurisdiction.

     "Person" shall mean an association, corporation, stock company, estate,
general partnership (including any Registered Limited Liability Partnership or
Foreign Limited Liability Partnership), limited association, limited liability
company, foreign limited liability company, joint venture, limited partnership,
natural person, real estate investment trust, business trust or other trust,
custodian, nominee or other individual in its own or any representative
capacity. In addition, the term means the heirs, executors, administrators,
legal representatives, successors and assigns of that "Person" where the context
so permits.

                            SIGNATURE PAGES TO FOLLOW

                                       46
<PAGE>

     IN WITNESS WHEREOF, this Agreement has been executed as of the date first
set forth above.

                                   SELLER POOL COMPANIES:

                                   BOSTON OLD COLONY INSURANCE COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                   THE BUCKEYE UNION INSURANCE COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                   COMMERCIAL INSURANCE COMPANY OF NEWARK, N.J.

                                   By: _________________________
                                       Name:
                                       Title:

                                   THE CONTINENTAL INSURANCE COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                       47
<PAGE>

                                   THE CONTINENTAL INSURANCE COMPANY OF
                                   NEWARK, NEW JERSEY

                                   By: _________________________
                                       Name:
                                       Title:

                                   THE FIDELITY AND CASUALTY INSURANCE
                                   COMPANY OF NEW YORK

                                   By: _________________________
                                       Name:
                                       Title:

                                   FIREMEN'S INSURANCE COMPANY OF NEWARK,
                                   NEW JERSEY

                                   By: _________________________
                                       Name:
                                       Title:

                                   THE GLENS FALLS INSURANCE COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                   KANSAS CITY FIRE AND MARINE INSURANCE
                                   COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                       48
<PAGE>

                                   THE MAYFLOWER INSURANCE COMPANY, LTD.

                                   By: _________________________
                                       Name:
                                       Title:

                                   NATIONAL BEN FRANKLIN INSURANCE COMPANY
                                   OF ILLINOIS

                                   By: _________________________
                                       Name:
                                       Title:

                                   NIAGARA FIRE INSURANCE COMPANY

                                   By: _________________________
                                       Name:
                                       Title:

                                   PURCHASER:
                                   PGI-WvF 180, L.P.

                                   By: _________________________
                                       Name:
                                       Title:

<PAGE>

                                       49

                 FIRST AMENDMENT TO SALE AND PURCHASE AGREEMENT

     THIS FIRST AMENDMENT TO SALE AND PURCHASE AGREEMENT (this "Amendment"),
dated as of the 26th day of January, 2001, is made by the SELLER POOL COMPANIES
listed on Exhibit A attached hereto having an office at CNA Plaza, 333 South
Wabash Avenue, Chicago, Illinois 60685 ("Seller") and MAIDEN LANE, L.P. a New
York limited partnership having an office at c/o Paramount Group, Inc, 1633
Broadway, Suite 1801, New York, New York 10019 ("Purchaser").

                              W I T N E S S E T H:

     WHEREAS, Seller and PGI-WvF 180, L.P., a New York limited partnership,
entered into a Sale and Purchase Agreement (as the same may be amended from time
to time, referred to hereinafter as the "Sale Agreement") for the sale of that
certain premises (the "Property") known as 180 Maiden Lane, New York, New York;

     WHEREAS, PGI-WvF 180, L.P. has changed its name to Paramount 180, L.P.
pursuant to that Second Amendment to Limited Partnership Agreement of PGI-WvF
180, L.P., dated as of December 15, 2000;

     WHEREAS, Paramount 180, L.P. has assigned its interest in the Sale
Agreement to Purchaser pursuant to that certain Assignment and Assumption of
Sale and Purchase Agreement dated as of January 4 2001;

     WHEREAS, Purchaser has elected to extend the Closing Date until
January 30, 2001 pursuant to Section 8.1(ii) of the Sale Agreement; and

     WHEREAS, Seller and Purchaser desire to amend and modify the Sale Agreement
as hereinafter set forth.

     NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller and Purchaser agree that the Sale Agreement is hereby
amended as follows:

     1. All capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to them in the Sale Agreement.

     2. Exhibit A of the Sale Agreement is hereby deleted in its entirety, and
Exhibit A attached hereto is hereby substituted therefor, as Exhibit A to the
Sale Agreement.

     3. Each of the entities executing this Amendment hereby agrees that it is
the Seller pursuant to the Sale Agreement and hereby ratifies, confirms and
agrees to be bound by the terms of the Sale Agreement, as modified by this
Amendment.

     4. Each entity constituting Seller hereby agrees that upon request of
Purchaser it shall execute any documents, instruments, agreements or
certificates which Purchaser, in its reasonable discretion, deems necessary or
advisable in order to correct any document, instrument, agreement or certificate
executed by Seller at or prior to Closing in connection with the Sale Agreement
or in order to consummate the transaction contemplated by the Sale Agreement, as
modified by this Amendment.

<PAGE>

     5. Each entity constituting Seller hereby jointly and severally agrees to
indemnify, defend and hold harmless Purchaser, its partners and their respective
officers, directors, members, partners and affiliates from and against any and
all loss, cost, damage, liability or expense (including, without limitation,
reasonable attorneys fees and disbursements) suffered or incurred by such entity
as a result of any discrepancies between the legal and valid names of any entity
constituting Seller and the name of any entity constituting or purporting to
constitute a Seller as shown in the Sale Agreement, this Amendment or any
document, instrument, agreement or certificate executed by any entity
constituting or purporting to constitute a Seller at or prior to Closing.

     6. The terms "this Agreement" or "Sale Agreement" as used herein or in the
Sale Agreement prior to the execution of this Amendment shall mean the Sale
Agreement as modified hereby.

     7. Except as amended hereby, the terms and provisions of the Sale Agreement
remain unmodified and in full force and effect and are hereby in all respects
ratified and confirmed.

     8. This Amendment may be executed in any number of counterparts, each of
which shall be an original, but all of such counterparts together shall
constitute one and the same instrument.

     IN WITNESS WHEREOF, Seller and Purchaser have caused this Amendment to be
executed as of the day and year first above written.

                               SELLER:

                               BOSTON OLD COLONY INSURANCE COMPANY

                               THE BUCKEYE UNION INSURANCE COMPANY

                               COMMERCIAL INSURANCE COMPANY OF NEWARK, N.J.

                               THE CONTINENTAL INSURANCE COMPANY

                               THE CONTINENTAL INSURANCE COMPANY OF NEW JERSEY

                               THE FIDELITY AND CASUALTY COMPANY OF NEW YORK

                               FIREMEN'S INSURANCE COMPANY OF NEWARK, NEW JERSEY

                               THE GLENS FALLS INSURANCE COMPANY

                                      -2-
<PAGE>

                               KANSAS CITY FIRE AND MARINE
                               INSURANCE COMPANY

                               THE MAYFLOWER INSURANCE COMPANY, LTD.

                               NATIONAL-BEN FRANKLIN INSURANCE
                               COMPANY OF ILLINOIS

                               NIAGARA FIRE INSURANCE COMPANY

                                  By:
                                     Name:  Margaret M. Steck
                                     as Vice President of each of the
                                     companies listed above

                               PURCHASER:

                               MAIDEN LANE, L.P.

                               By:   Paramount 180, L.P., its general partner

                                     By: MRI-180 GP, LLC, its managing
                                         general partner

                                         By: ____________________________
                                             Name:
                                             Title:

                                      -3-
<PAGE>

                                    EXHIBIT A

                              SELLER POOL COMPANIES

1.    Boston Old Colony Insurance Company

2.    The Buckeye Union Insurance Company

3.    Commercial Insurance Company of Newark, N.J.

4.    The Continental Insurance Company

5.    The Continental Insurance Company of New Jersey

6.    The Fidelity and Casualty Company of New York

7.    Firemen's Insurance Company of Newark, New Jersey

8.    The Glens Falls Insurance Company

9.    Kansas City Fire and Marine Insurance Company

10.   The Mayflower Insurance Company, Ltd.

11.   National-Ben Franklin Insurance Company of Illinois

12.   Niagara Fire Insurance Company<PAGE>   1

                                                                   Exhibit 10.13

                              LSI LOGIC CORPORATION
                          EMPLOYEE STOCK PURCHASE PLAN
                              AMENDED AND RESTATED

     The following constitutes the provisions of the Employee Stock Purchase
Plan (the "Plan") of LSI Logic Corporation amended and restated effective March
31, 1999.

1.   PURPOSE. The purpose of the Plan is to provide employees of the Company and
its Designated Subsidiaries with an opportunity to purchase Common Stock of the
Company through accumulated payroll deductions. It is the intention of the
Company that the Plan qualify as an "Employee Stock Purchase Plan" under Section
423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan
shall, accordingly, be construed so as to extend and limit participation in a
manner consistent with the requirements of that section of the Code.

2.   DEFINITIONS.

     (a)  "Board" means the Board of Directors of the Company, or to the extent
authorized by the Board, a Committee of the Board.

     (b)  "Code" means the Internal Revenue Code of 1986, as amended.

     (c)  "Common Stock" means the common stock of the Company.

     (d)  "Company" means LSI Logic Corporation and any Designated Subsidiary of
the Company.

     (e)  "Compensation" means, for Offering Periods commencing prior to
November 15, 2000, all regular straight time earnings, exclusive of payments for
overtime, shift premium, incentive compensation, incentive payments, bonuses,
commissions and other compensation. For Offering Periods commencing on or after
November 15, 2000, "Compensation" shall mean all regular and recurring straight
time earnings, payments for overtime, shift premium, incentive compensation,
incentive payments, bonuses, commissions, but exclusive of other compensation.

     (f)  "Designated Subsidiary" means any Subsidiary which has been designated
by the Board from time to time in its sole discretion as eligible to participate
in the Plan.

     (g)  "Employee" means any individual who is an Employee of the Company for
tax purposes whose customary employment with the Company is at least 20 hours
per week and more than five months in a calendar year. For purposes of the Plan,
the employment relationship will be treated as continuing intact while the
individual is on sick leave or other leave of absence approved in writing by the
Company. Where the period of leave exceeds 90 days and the individual's right to
reemployment is not guaranteed either by statute or by contract, the employment
relationship shall be deemed to have terminated on the 91st day of such leave.
It shall not include any independent contractors providing services to the
Company or its Subsidiaries, regardless of the length of such service.

<PAGE>   2

     (h)  "Enrollment Date" means the first Trading Day of each Offering Period.

     (i)  "Exercise Date" means the last Trading Day of each Purchase Period.

     (j)  "Fair Market Value" means, as of any date, the value of the Common
Stock determined as follows:

          (1)  If the Common Stock is listed on any established stock exchange
or a national market system, its Fair Market Value shall be the closing sales
price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange or system for the last market trading day on the date of such
determination, as reported in The Wall Street Journal or such other source as
the Board deems reliable;

          (2)  If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on
the date of such determination, as reported in The Wall Street Journal or such
other source as the Board deems reliable; or

          (3)  In the absence of an established market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Board.

     (k)  "Offering Periods" means a period of approximately 12 months during
which an option granted pursuant to the Plan may be exercised as further
described in Section 4, except that the Offering Period that began October 1,
1998 will end on September 29, 2000 and an Offering Period shall commence on
October 1, 2000 and end on November 14, 2000. The duration and timing of
Offering Periods may be changed pursuant to Sections 4 and 20 of this Plan.

     (l)  "Plan" means this Amended and Restated Employee Stock Purchase Plan.

     (m)  "Purchase Period" means the approximately six-month period commencing
after one Exercise Date and ending with the next Exercise Date, except that the
first Purchase Period of any Offering Period will commence on the Enrollment
Date and end with the next Exercise Date. Notwithstanding the foregoing, with
respect to the Offering Period commencing upon October 1, 2000 and ending on
November 14, 2000 , "Purchase Period" shall be the same (approximately) six week
period.

     (n)  "Purchase Price" means 85% of the Fair Market Value of a share of
Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower;
provided, however, that with respect to the Offering Periods commencing on or
after January 1, 1999, unless otherwise directed by the Board, if the Fair
Market Value of a share of Common Stock on the date on which additional shares
of Common Stock (the "New Shares") are authorized for issuance hereunder by the
Company's stockholders (the "Authorization Date") is higher than the Fair Market
Value of a share of Common Stock on the Enrollment Date of any outstanding
Offering Period that commenced prior to the Authorization Date, the Purchase
Price for only New Shares to be issued on any remaining Exercise Date of any
Offering Period in effect on the Authorization Date shall be 85% of the Fair
Market Value of a share of Common Stock on the Authorization Date or on the
Exercise Date, whichever is lower. The Purchase Price may be adjusted by the
Board pursuant to Section 20.

<PAGE>   3

     (o)  "Reserves" means the number of shares of Common Stock covered by each
option under the Plan which have not yet been exercised and the number of shares
of Common Stock that have been authorized for issuance under the Plan but not
yet placed under option.

     (p)  "Subsidiary" means any corporation, domestic or foreign, of which not
less than 50% of the voting shares are held by the Company or a Subsidiary,
whether or not such corporation now exists or is hereafter organized or acquired
by the Company or a Subsidiary.

     (q)  "Trading Day" means a day on which national stock exchanges and the
Nasdaq System are open for trading.

3.   ELIGIBILITY.

     (a)  Any Employee who is employed by the Company on a given Enrollment Date
shall be eligible to participate in the Plan, subject to the requirements of
Section 5(a) and the limitations imposed by Section 423(b) of the Code.

     (b)  Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) to the extent that,
immediately after the grant, such Employee (or any other person whose stock
ownership would be attributed to such Employee pursuant to Section 424(d) of the
Code) would own capital stock and/or hold outstanding options to purchase shares
possessing five percent or more of the total combined voting power or value of
all classes of the capital stock of the Company or of any Subsidiary, or (ii) to
the extent that his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries accrue (i.e., become exercisable) at a rate which exceeds $25,000
worth of stock (determined at the fair market value of the shares at the time
such option is granted) for each calendar year in which such option is
outstanding at any time.

4.   OFFERING PERIODS. The Plan shall be implemented by consecutive, overlapping
Offering Periods with a new Offering Period commencing on the first Trading Day
on or after May 15 and November 15 each year, or on such other date as the Board
shall determine, and continuing thereafter until terminated in accordance with
Section 20 hereof, except as set forth in this Section 4. The first Offering
Period of the Plan as amended and restated shall commence with the first Trading
Day on or after May 15, 1999 and end on the last Trading Day on or before May
14, 2000. The Offering Period which began on October 1, 1998 will end on
September 29, 2000 and an Offering Period shall commence on October 1, 2000 and
end on November 14, 2000. The Board shall have the power to change the duration
of Offering Periods (including the commencement dates thereof) with respect to
future offerings without stockholder approval, if such change is announced prior
to the scheduled beginning of the first Offering Period to be affected
thereafter.

5.   PARTICIPATION.

     (a)  An eligible Employee may become a participant in the Plan by
completing a subscription agreement authorizing payroll deductions in the form
provided by the Company and filing it with the Company payroll office prior to
the applicable Enrollment Date, unless a later time for filing the subscription
agreement is set for all eligible Employees with respect to such Offering
Period.

<PAGE>   4

     (b)  Payroll deductions for a participant shall commence with the first
payroll following the Enrollment Date and shall end on the last payroll in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10.

6.   PAYROLL DEDUCTIONS.

     (a)  At the time a participant files his or her subscription agreement, he
or she shall elect to have payroll deductions made on each payday during all
subsequent Offering Periods commencing prior to November 15, 2000 in an amount
not exceeding 10%, and during all Offering Periods commencing on or after
November 15, 2000 in an amount not exceeding 15%, or such other rate as may be
determined from time to time by the Board, expressed as a whole percent, of the
Compensation which he or she receives on such payday during said Offering Period
and the aggregate of such deduction during the Offering Period shall not exceed
10% or 15%, as applicable in accordance with the foregoing, of the aggregate
Compensation during such Offering Period.

     (b)  All payroll deductions authorized by a participant shall be credited
to his or her account under the Plan and shall be withheld in whole percentages
only. A participant may not make any additional payments into such account.

     (c)  A participant may discontinue his or her participation in the Plan as
provided in Section 10, or may decrease the rate of his or her payroll
deductions (but not below 1%) effective immediately or may increase (but not
above 10% and for Offering Periods commencing on or after November 15, 2000, not
above 15%) the rate of his payroll deductions effective as of the first date of
the next Purchase Period within such Offering Period by completing and filing
with the Company a new subscription agreement authorizing a change in payroll
deduction. The Board may, in its discretion, limit the number of participation
rate changes during any Offering Period. The change in rate shall be effective
as soon as administratively feasible following the Company's receipt of the new
authorization. A participant's subscription agreement shall remain in effect for
successive Offering Periods unless terminated as provided in Section 10.

     (d)  Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(b) of the Plan, a participant's
payroll deductions may be automatically decreased to zero percent at any time
during a Purchase Period. Payroll deductions shall recommence at the rate
provided in such participant's subscription agreement at the beginning of the
first Purchase Period which is scheduled to end in the following calendar year,
unless terminated by the participant as provided in Section 10.

     (e)  At the time the option is exercised, in whole or in part, or at the
time some or all of the Company's Common Stock issued under the Plan is disposed
of, the participant must make adequate provision for the Company's federal,
state or other tax withholding obligations, if any, which arise on the exercise
of the option or the disposition of the Common Stock. At any time the Company
may, but shall not be obligated to, withhold from the participant's compensation
the amount necessary for the Company to meet applicable withholding obligations,
including any withholding required to make available to the Company any tax
deductions or benefits attributable to sale or early disposition of Common Stock
by the Employee.

<PAGE>   5

7.   GRANT OF OPTION. On each Enrollment Date of each Offering Period, each
eligible Employee participating in such Offering Period shall be granted an
option to purchase on each Exercise Date during such Offering Period (at the
applicable Purchase Price) up to a number of full shares of the Company's Common
Stock determined by dividing such Employee's payroll deductions accumulated
prior to such Exercise Date and retained in the Employee's account as of the
Exercise Date by the applicable Purchase Price; provided that in no event shall
an Employee be permitted to purchase more than 1,500 shares in each Purchase
Period within Offering Periods commencing in the year 2001, provided further
that such purchase shall be subject to the limitations set forth in Sections
3(b) and 13. The Board may, for future Offering Periods, increase or decrease,
in its absolute discretion, the maximum number of shares of the Company's Common
Stock an Employee may purchase during each Purchase Period of such Offering
Period. Exercise of the option shall occur as provided in Section 8, unless the
participant has withdrawn pursuant to Section 10. The option shall expire on the
last day of the Offering Period.

8.   EXERCISE OF OPTION.

     (a)  Unless a participant withdraws from the Offering Period as provided in
Section 10, his or her option for the purchase of shares will be exercised
automatically on the Exercise Date, and the maximum number of full shares
subject to option will be purchased at the applicable Purchase Price with the
accumulated payroll deductions in his or her account. No fractional shares will
be purchased. Any payroll deductions accumulated in a participant's account that
are not sufficient to purchase a full share will be retained in the
participant's account for the subsequent Purchase Period or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10 or
unless the Offering Period has been over-subscribed, in which event such amount
shall be refunded to the participant. During his or her lifetime, a
participant's option to purchase shares hereunder is exercisable only by the
participant.

     (b)  If the Board determines that, on a given Exercise Date, the number of
shares with respect to which options are to be exercised may exceed (i) the
number of shares of Common Stock that were available for sale under the Plan on
the Enrollment Date of the applicable Offering Period, or (ii) the number of
shares available for sale under the Plan on such Exercise Date, the Board may in
its sole discretion provide that the Company shall make a pro rata allocation of
the shares of Common Stock available for purchase on such Enrollment Date or
Exercise Date, as applicable, in as uniform a manner as shall be practicable and
as it shall determine in its sole discretion to be equitable among all
participants exercising options to purchase Common Stock on such Exercise Date,
and (x) continue all Offering Periods then in effect, or (y) terminate any or
all Offering Periods then in effect pursuant to Section 20. The Company may make
pro rata allocation of the shares available on the Enrollment Date of any
applicable Offering Period pursuant to the preceding sentence, notwithstanding
any authorization of additional shares for issuance under the Plan by the
Company's stockholders subsequent to such Enrollment Date.

9.   DELIVERY. As promptly as practicable after each Exercise Date on which a
purchase of shares occurs, the Company shall arrange for the shares purchased
upon exercise of his or her option to be electronically credited to the
participant's brokerage account at the securities brokerage firms designated by
the Company for its direct deposit program from time to time.

<PAGE>   6

10.  WITHDRAWAL; TERMINATION OF EMPLOYMENT.

     (a)  A participant may withdraw all, but not less than all, the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company on
a form provided for such purpose. All of the participant's payroll deductions
credited to his or her account will be paid to the participant as soon as
practicable after receipt of the notice of withdrawal, his or her option for the
current Offering Period will be automatically canceled, and no further payroll
deductions for the purchase of shares will be made during such Offering Period.
If a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

     (b)  A participant's withdrawal from an Offering Period will not have any
effect upon his or her eligibility to participate in a succeeding Offering
Period which begins after the end of the Offering Period from which the
participant withdraws or in any similar plan which may hereafter be adopted by
the Company.

11.  TERMINATION OF EMPLOYMENT. Upon a participant's ceasing to be an Employee
for any reason, including retirement or death, he or she will be deemed to have
elected to withdraw from the Plan and the payroll deductions accumulated in his
or her account during the Offering Period but not yet used to exercise the
option will be returned to him or her as soon as practicable after such
termination or, in the case of death, to the person or persons entitled thereto
under Section 15, and his or her option will be automatically terminated. The
preceding sentence notwithstanding, a participant who receives payment in lieu
of notice of termination of employment shall be treated as continuing to be an
Employee for the participant's customary number of hours per week of employment
during the period in which the participant is subject to such payment in lieu of
notice. In the case of death of the participant, the payroll deductions credited
to the participant's account will be paid to the person or persons entitled
thereto under paragraph 15, and such participant's option will be automatically
terminated, except that the beneficiary may elect to have funds remain in the
participant's account until the next Exercise Date in which case the shares
purchased with the funds in the participant's account at the time of death in
accordance with paragraph 8 will be forwarded to the beneficiary.

12.  INTEREST. No interest shall accrue on the payroll deductions of a
participant in the Plan.

13.  STOCK.

     (a)  Subject to adjustment upon changes in capitalization of the Company as
provided in Section 19, the maximum number of shares of the Company's Common
Stock which shall be reserved for sale under the Plan shall be 40,314,110
shares, plus an annual increase to be added as of the first day of each fiscal
year by an amount equal to (x) 1.15% of the shares of the Company's Common Stock
issued and outstanding on the last day of the immediately preceding fiscal year
less (y) the number of shares available for future option grants under the Plan
on the last day of the immediately preceding fiscal year, or a lesser amount
determined by the Board, but not to exceed 3,000,000 shares (subject to any
adjustment pursuant to Section 19) in any fiscal year.

     (b)  The participant will have no interest or voting rights in shares
covered by his or her option until such option has been exercised.

<PAGE>   7

     (c)  Shares to be delivered to a participant under the Plan shall be
registered in the name of the participant or in the name of the participant and
his or her spouse.

14.  ADMINISTRATION. The Plan shall be administered by the Board or a committee
of members of the Board appointed by the Board. The Board or its committee shall
have full and exclusive discretionary authority to construe, interpret and apply
the terms of the Plan, to determine eligibility and to adjudicate all disputed
claims filed under the Plan. Every finding, decision and determination made by
the Board or its committee shall, to the full extent permitted by law, be final
and binding upon all parties.

15.  DESIGNATION OF BENEFICIARY.

     (a)  A participant may file a written designation of a beneficiary who is
to receive shares and/or cash, if any, from the participant's account under the
Plan in the event of such participant's death at a time when cash or shares are
held for his or her account. If the participant is married and the designated
beneficiary is not the spouse, spousal consent shall be required for such
designation to be effective.

     (b)  Such designation of beneficiary may be changed by the participant at
any time by written notice. In the event of the death of a participant in the
absence of a valid designation of a beneficiary who is living at the time of
such participant's death, the Company shall deliver such shares and/or cash to
the executor or administrator of the estate of the participant; or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may reasonably designate.

16.  TRANSFERABILITY. Neither payroll deductions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and
distribution, or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds in accordance with Section 10.

17.  USE OF FUNDS. All payroll deductions received or held by the Company under
the Plan may be used by the Company for any corporate purpose, and the Company
shall not be obligated to segregate such payroll deductions.

18.  REPORTS. Individual accounts will be maintained for each participant in the
Plan. Statements of account will be given to participating Employees at least
annually, and will set forth the amounts of payroll deductions, the Purchase
Price, the number of shares purchased and the remaining cash balance, if any.

19.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION.

     (a)  Changes in Capitalization. Subject to any required action by the
stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase each Purchase Period (under Section 7), as well as the
price per share and the number of shares of Common Stock covered by each

<PAGE>   8

option under the Plan that has not yet been exercised, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock or any other increase or
decrease in the number of shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.
Except as expressly provided herein, no issuance by the Company of shares of
stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to,
the number or price of shares of Common Stock subject to option.

     (b)  Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, the Offering Period then in progress will be
shortened by setting a new Exercise Date (the "New Exercise Date"), and shall
terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless otherwise provided by the Board. The New Exercise Date shall
be before the date of the Company's proposed dissolution or liquidation. The
Company shall notify each participant in writing at least ten business days
prior to the New Exercise Date, that the Exercise Date for the participant's
option has been changed to the New Exercise Date and that the participant's
option shall be exercised automatically on the New Exercise Date, unless prior
to such date the participant has withdrawn from the Offering Period as provided
in Section 10.

     (c)  Merger or Asset Sale. In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each option under the Plan shall be assumed or
an equivalent option shall be substituted by the successor corporation or a
parent or Subsidiary of the successor corporation. If the successor corporation
refuses to assume or substitute for the option, any Purchase Periods then in
progress shall be shortened by setting a new Exercise Date (the "New Exercise
Date") and any Offering Periods then in progress shall end on the New Exercise
Date. The New Exercise Date shall be before the date of the Company's proposed
sale or merger. The Company shall notify each participant in writing prior to
the New Exercise Date, that the Exercise Date for the participant's option has
been changed to the New Exercise Date and that the participant's option will be
exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10.

The Board may, if it so determines in the exercise of its sole discretion, also
make provision for adjusting the Reserves, as well as the price per share of
Common Stock covered by each outstanding option, in the event that the Company
effects one or more reorganizations, recapitalizations, rights offerings or
other increases or reductions of shares of its outstanding Common Stock, and in
the event of the Company being consolidated with or merged into any other
corporation.

20.  AMENDMENT OR TERMINATION.

     (a)  The Board of Directors of the Company may at any time and for any
reason terminate or amend the Plan. Except as provided in Section 19, no such
termination will affect options previously granted, provided that an Offering
Period may be terminated by the Board on any Exercise Date if the Board
determines that the termination of the Offering Period or the Plan is in the
best interests of the Company and its stockholders. Except as provided in
Section 19 and this Section 20, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any participant. To
the

<PAGE>   9

extent necessary to comply with Section 423 of the Code (or any successor rule
or provision or any other applicable law, regulation or stock exchange rule),
the Company shall obtain stockholder approval in such a manner and to such a
degree as required.

     (b)  Without stockholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation and establish such other limitations or procedures as
the Board determines in its sole discretion advisable which are consistent with
the Plan.

     (c)  In the event the Board determines that the ongoing operation of the
Plan may result in unfavorable financial accounting consequences, the Board may,
in its discretion and, to the extent necessary or desirable, modify or amend the
Plan to reduce or eliminate such accounting consequence including, but not
limited to:

          (i)  altering the Purchase Price for any Offering Period including an
Offering Period underway at the time of the change in Purchase Price;

          (ii) shortening any Offering Period so that the Offering Period ends
on a new Exercise Date, including an Offering Period underway at the time of the
Board action; and

          (iii) allocating shares.

Such modifications or amendments shall not require stockholder approval or the
consent of any Plan participants.

21.  NOTICES. All notices or other communications by a participant to the
Company in connection with the Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person,
designated by the Company for the receipt thereof. Notices given by means of the
Company's intranet (Planet) or similar system will be deemed to be written
notices under the Plan.

22.  CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued with respect
to an option unless the exercise of such option and the issuance and delivery of
such shares pursuant thereto shall comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the Securities Act of 1933,
as amended, the Securities Exchange Act of 1934, as amended, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

As a condition to the exercise of an option, if required by applicable
securities laws, the Company may require the participant for whose account the
option is being exercised to represent and warrant at the

<PAGE>   10

time of such exercise that the shares are being purchased only for investment
and without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

23.  TERM OF PLAN. The Plan shall become effective upon the earlier to occur of
its adoption by the Board of Directors of the Company or it is approved by the
stockholders. It shall continue in effect for a term of 10 years unless sooner
terminated under Section 20.

24.  EMPLOYMENT RELATIONSHIP Nothing in the Plan shall be construed as creating
a contract for employment for any period or shall interfere with or limit in any
way the right of the Company or of any Subsidiary to terminate any participant's
employment relationship at any time, with or without cause, nor confer upon any
participant any right to continue in the employ of the Company or any
Subsidiary.

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