Document:

exv10w1

 

EXHIBIT 10

Libbey
Inc.

2006 Omnibus Incentive Plan

Effective May 4, 2006

 

 

Contents

	 	 	 	 	 
	Article 1. Establishment, Purpose, and Duration
	 	 	1	 
	Article 2. Definitions
	 	 	1	 
	Article 3. Administration
	 	 	7	 
	Article 4. Shares Subject to this Plan and Maximum Awards
	 	 	8	 
	Article 5. Eligibility and Participation
	 	 	10	 
	Article 6. Stock Options
	 	 	10	 
	Article 7. Stock Appreciation Rights
	 	 	12	 
	Article 8. Restricted Stock and Restricted Stock Units
	 	 	14	 
	Article 9. Performance Units/Performance Shares
	 	 	15	 
	Article 10. Cash-Based Awards and Other Stock-Based Awards
	 	 	16	 
	Article 11. Transferability of Awards
	 	 	17	 
	Article 12. Performance Measures
	 	 	17	 
	Article 13. Nonemployee Director Awards
	 	 	18	 
	Article 14. Dividend Equivalents
	 	 	19	 
	Article 15. Beneficiary Designation
	 	 	19	 
	Article 16. Rights of Participants
	 	 	19	 
	Article 17. Change of Control
	 	 	19	 
	Article 18. Amendment, Modification, Suspension, and Termination
	 	 	 	 
	Article 19. Withholding
	 	 	21	 
	Article 20. Successors
	 	 	21	 
	Article 21. General Provisions
	 	 	21	 

 

 

Libbey Inc. 2006 Omnibus Incentive Plan

Article 1. Establishment, Purpose, and Duration

     1.1      Establishment. Libbey Inc., a Delaware corporation (the “Company”),
establishes an incentive compensation plan to be known as the Libbey Inc. 2006 Omnibus Incentive
Plan (the “Plan”), as set forth in this document.

     This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units, Cash-Based Awards and Other Stock-Based Awards.

     This Plan shall become effective upon shareholder approval (the “Effective Date”) and shall
remain in effect as provided in Section 1.3 hereof.

     1.2      Purpose of this Plan. The purpose of this Plan is to enable the Company to obtain and
retain the services of Employees and Non-employee Directors considered essential to the long-range
success of the Company, to provide a means whereby Employees and Non-employee Directors develop a
sense of proprietorship and personal involvement in the development and financial success of the
Company, and to encourage them to devote their best efforts to the business of the Company, thereby
advancing the interests of the Company and its shareholders.

     1.3      Duration of this Plan. Unless sooner terminated as provided in this Plan, this Plan shall
terminate ten (10) years from the Effective Date. After this Plan is terminated, no Awards may be
granted, but Awards previously granted shall remain outstanding in accordance with their applicable
terms and conditions and this Plan’s terms and conditions. Notwithstanding the foregoing, no
Incentive Stock Options may be granted more than ten (10) years after the earlier of (a) adoption
of this Plan by the Board, or (b) the Effective Date.

Article 2. Definitions

     Whenever used in this Plan, the following terms shall have the meanings set forth below,
and when the meaning is intended, the initial letter of the word shall be capitalized.

	 	2.1	 	“Affiliate” means any corporation or other entity (including, but not limited to, a
partnership or a limited liability company) that is affiliated with the Company through
stock or equity ownership, or otherwise, and is designated as an Affiliate for purposes of
this Plan by the Committee. For purposes of granting Options or Stock Appreciation Rights,
an entity may not be considered an Affiliate if it results in noncompliance with Code
Section 409A.
	 
	 	2.2	 	“Annual Award Limit” or “Annual Award Limits” has the meaning set forth in Section
4.3.
	 
	 	2.3	 	“Award” means, individually or collectively, a grant under this Plan of Nonqualified
Stock Options, Incentive Stock Options, SARs, Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Units, Cash-Based Awards or Other Stock-Based Awards, in
each case subject to the terms of this Plan.

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	 	2.4	 	“Award Agreement” or “Agreement” means either (i) a written agreement entered into by
the Company and a Participant setting forth the terms and provisions applicable to an
Award granted under this Plan or (ii) a written statement issued by the Company to a
Participant describing the terms and provisions of the Award, including any amendment or
modification thereof. The Committee may provide for the use of electronic, internet or
other non-paper Award Agreements and the use of electronic, internet or other non-paper
means for the acceptance of the Award Agreements and actions under them by a Participant.
	 
	 	2.5	 	“Beneficial Owner” or “Beneficial Ownership” has the meaning ascribed to that term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.
	 
	 	2.6	 	“Board” or “Board of Directors” means the Board of Directors of the Company.
	 
	 	2.7	 	“Cash-Based Award” means an Award, denominated in cash, granted to a Participant as
described in Article 10.
	 
	 	2.8	 	“Change in Control” means any of the following events:

	 	(a)	 	Any Person (as defined below) is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing twenty percent
(20%) or more of the combined voting power of the Company’s then-outstanding
securities. For purposes of this Plan, the term “Person” is used as that term is
used in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that the
term shall not include (i) the Company, any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, or (ii) any corporation
owned, directly or indirectly, by the shareholders of the Company in substantially
the same proportions as their ownership of stock of the Company, and provided
further that this subsection (a) shall not apply to any Person who is the
Beneficial Owner, directly or indirectly, of securities of the Company representing
twenty percent (20%) or more of the combined voting power of the Company’s
then-outstanding securities as of the Effective Date of this Plan if and for so
long as that Person does not beneficially own, or increase its beneficial ownership
to, twenty-five percent (25%) or more of the combined voting power of the Company’s
then-outstanding securities;
	 
	 	(b)	 	During any period of two (2) consecutive years beginning after the
Effective Date of this Plan, Continuing Directors (excluding any Directors
designated by a Person who has entered into an agreement with the Company to effect
a transaction described in Sections 2.8(a), (c) or (d)) cease for any reason to
constitute at least a majority of the Board;
	 
	 	(c)	 	The consummation of a merger or consolidation of the Company with any
other corporation or other entity, unless, after giving effect to the merger or
consolidation, the voting securities of the Company outstanding immediately prior
to the merger or consolidation continue to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity)
more than sixty-six and two-thirds percent (66 2/3%) of the combined voting power
of the voting securities of the Company or the surviving entity outstanding
immediately after the merger or consolidation;

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	 	(d)	 	The shareholders of the Company approve a plan of complete liquidation
of the Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets; or
	 
	 	(e)	 	Any Person is or becomes the Beneficial Owner, directly or indirectly,
of securities of the Company representing ten percent (10%) or more of the combined
voting power of the Company’s then-outstanding securities (a “10% Owner”) and (i)
the identity of the Chief Executive Officer of the Company is changed during the
period beginning sixty (60) days before the attainment of the ten percent (10%)
Beneficial Ownership and ending two (2) years thereafter or (ii) individuals
constituting at least one-third (1/3) of the Directors at the beginning of the
period cease for any reason to serve as Directors during the period beginning sixty
(60) days before the attainment of the ten percent (10%) Beneficial Ownership and
ending two (2) years thereafter; provided, however, that this subsection (e) shall
not apply to any Person who is a ten percent (10%) Owner as of the Effective Date
of this Plan so long as that Person does not increase its Beneficial Ownership by
five percent (5%) or more over the percentage owned by that Person as of the
Effective Date of the Plan.

	 	2.9	 	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.
For purposes of this Plan, references to sections of the Code shall be deemed to include
references to any applicable regulations under the Code and any successor or similar
provision.
	 
	 	2.10	 	“Committee” means the Compensation Committee of the Board or a subcommittee thereof,
or any other committee designated by the Board to administer this Plan. The members of the
Committee shall be appointed from time to time by, and shall serve at the discretion of,
the Board. If the Committee does not exist or cannot function for any reason, the Board
may take any action under the Plan that otherwise would be the responsibility of the
Committee.
	 
	 	2.11	 	“Company” means Libbey Inc., a Delaware corporation, and any successor to as provided
in Article 20.
	 
	 	2.12	 	“Continuing Directors” means individuals who both (a) as of the end of the period in
question are Directors of the Company or whose election or nomination for election by the
Company’s shareholders has been approved by a vote of at least two-thirds (2/3) of the
Directors of the Company then in office and (b) either (i) at the beginning of the period
in question or (ii) after the beginning but prior to the end of the period in question
were Directors of the Company or whose election or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the
Directors of the Company in office at the beginning of the period.
	 
	 	2.13	 	“Covered Employee” means any Employee who is or may become a “Covered Employee,” as
defined in Code Section 162(m), and who is designated, either as an individual Employee or
class of Employees, by the Committee within the shorter of (i) ninety (90) days after the
beginning of the Performance Period or (ii) twenty-five percent (25%) of the Performance
Period has elapsed, as a “Covered Employee” under this Plan for the applicable Performance
Period.

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	 	2.14	 	“Director” means any individual who is a member of the Board of Directors of the
Company.
	 
	 	2.15	 	“Dividend Equivalent” means a right to receive the equivalent value (in cash or
Shares) of dividends paid on common stock, awarded under Article 14.
	 
	 	2.16	 	“DRO” means a domestic relations order as defined by the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the rules under such
statute.
	 
	 	2.17	 	“Effective Date” has the meaning set forth in Section 1.1.
	 
	 	2.18	 	“Employee” means any individual designated as an employee of the Company, its
Affiliates and/or its Subsidiaries on the payroll records thereof.
	 
	 	2.19	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor act thereto.
	 
	 	2.20	 	“Extraordinary Items” means (i) extraordinary, unusual and/or nonrecurring items of
gain or loss; (ii) gains or losses on the disposition of a business; (iii) changes in tax
or accounting regulations or laws; or (iv) the effect of a merger or acquisition.
Extraordinary Items must be identified in the audited financial statements, including
footnotes, or Management Discussion and Analysis section of the Company’s annual report.
	 
	 	2.21	 	“Fair Market Value” or “FMV” means a price that is based on the opening, closing,
actual, high, low or average selling prices of a Share reported on the New York Stock
Exchange (“NYSE”) or other established stock exchange (or exchanges) on the applicable
date, the preceding trading day, the next preceding trading day, the next succeeding
trading day or an average of trading days, as determined by the Committee in its
discretion. Unless the Committee determines otherwise, Fair Market Value shall be deemed
to be equal to the closing price of a Share on the trading day previous to the applicable
date, or if shares were not traded on the trading day previous to the applicable date,
then on the next preceding trading day. If Shares are not publicly traded at the time a
determination of their value is required to be made under this Plan, then the
determination of their Fair Market Value shall be made by the Committee in such manner as
it deems appropriate, provided that, in the case of Options and Stock Appreciation Rights,
the determination shall be made in compliance with Code Section 409A. The definition(s) of
FMV shall be specified in each Award Agreement and may differ depending on whether FMV is
in reference to the grant, exercise, vesting, settlement or payout of an Award.
	 
	 	2.22	 	“Full Value Award” means an Award other than in the form of an ISO, NQSO or SAR.
	 
	 	2.23	 	“Grant Price” means the price established at the time of grant of an SAR pursuant to
Article 7.

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	 	2.24	 	“Incentive Stock Option” or “ISO” means an Option that is granted under Article 6 to
an Employee, that is designated as an Incentive Stock Option and that is intended to meet
the requirements of Code Section 422 or any successor provision.
	 
	 	2.25	 	“Insider” means an individual who is, on the relevant date, an officer or Director of
the Company, or the Beneficial Owner of more than ten percent (10%) of any class of the
Company’s equity securities that are registered pursuant to Section 12 of the Exchange
Act, as determined by the Board in accordance with Section 16 of the Exchange Act.
	 
	 	2.26	 	“Nominating and Governance Committee” means the Nominating and Governance Committee
of the Board or a subcommittee thereof, or any other committee designated by the Board to
administer the pay of Non-employee Directors pursuant to this Plan. The members of the
Committee shall be appointed from time to time by, and shall serve at the discretion of,
the Board. If the Nominating and Governance Committee does not exist or cannot function
for any reason, the Board may take any action under the Plan that otherwise would be the
responsibility of the Nominating and Governance Committee.
	 
	 	2.27	 	“Non-employee Director” means a Director who is not an Employee.
	 
	 	2.28	 	“Nonemployee Director Award” means any NQSO, SAR or Full Value Award granted, whether
singly, in combination, or in tandem, to a Non-employee Director.
	 
	 	2.29	 	“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet
the requirements of Code Section 422 or that otherwise does not meet those requirements.
	 
	 	2.30	 	“Option” means an option granted to a Participant to purchase the Company’s Shares,
including an Incentive Stock Option or a Nonqualified Stock Option, as described in
Article 6.
	 
	 	2.31	 	“Option Price” means the price at which a Participant may purchase a Share pursuant
to an Option.
	 
	 	2.32	 	“Other Stock-Based Award” means an equity-based or equity-related Award that is not
otherwise described by the terms of this Plan and that is granted pursuant to Article 10.
	 
	 	2.33	 	“Participant” means any eligible individual, as determined in accordance with Article
5, to whom an Award is granted.
	 
	 	2.34	 	“Performance-Based Compensation” means compensation under an Award that is intended
to satisfy the requirements of Code Section 162(m) for certain performance-based
compensation paid to Covered Employees. However, nothing in this Plan shall be construed
to mean that an Award that does not satisfy the requirements for performance-based
compensation under Code Section 162(m) does not constitute performance-based compensation
for other purposes, including Code Section 409A.

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	 	2.35	 	“Performance Measures” means the measures, as described in Article 12, on which the
performance goals are based. Performance Measures must be approved by the Company’s
shareholders pursuant to this Plan in order to qualify Awards as Performance-Based
Compensation.
	 
	 	2.36	 	“Performance Period” means the period of time during which the performance goals must
be met in order to determine the degree of payout and/or vesting with respect to an Award.
	 
	 	2.37	 	“Performance Share” means an Award that is granted pursuant to Article 9, is subject
to the terms of this Plan and is denominated in Shares, the value of which at the time it
is payable is determined as a function of the extent to which the corresponding
performance criteria have been achieved.
	 
	 	2.38	 	“Performance Unit” means an Award that is granted pursuant to Article 9, is subject
to the terms of this Plan and is denominated in units, the value of which at the time it
is payable is determined as a function of the extent to which corresponding performance
criteria have been achieved.
	 
	 	2.39	 	“Period of Restriction” means the period during which Restricted Stock or Restricted
Stock Units are subject to a substantial risk of forfeiture based on the passage of time,
the achievement of performance goals or the occurrence of other events as determined by the
Committee, in its discretion, as provided in Article 8.
	 
	 	2.40	 	“Plan” means the Libbey Inc. 2006 Omnibus Incentive Plan.
	 
	 	2.41	 	“Plan Year” means the calendar year.
	 
	 	2.42	 	“Prior Plans” means the Libbey Inc. Amended and Restated Stock Option Plan for Key
Employees and the Amended and Restated 1999 Equity Participation Plan of Libbey Inc.
	 
	 	2.43	 	“Restricted Stock” means an Award granted to a Participant pursuant to Article 8.
	 
	 	2.44	 	“Restricted Stock Unit” means an Award that is granted to a Participant pursuant to
Article 8 but as to which no Shares actually are awarded to the Participant on the date of
grant.
	 
	 	2.45	 	“Share” means a share of common stock of the Company, $.01 par value per share.
	 
	 	2.46	 	“Stock Appreciation Right” or “SAR” means an Award, designated as a SAR, pursuant to
the terms of Article 7.
	 
	 	2.47	 	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in
which the Company directly or indirectly owns stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock.
	 
	 	2.48	 	“Substitute Award” means an Award granted under this Plan upon the assumption of, or
in substitution for, outstanding equity awards previously granted by a company or other
entity in connection with a corporate transaction, such as a merger,

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	 	 	 	combination, consolidation or acquisition of property or stock; provided, however, that
in no event shall the term “Substitute Award” be construed to refer to an Award made in
connection with the cancellation and repricing of an Option or SAR.
	 
	 	2.49	 	“Termination of Employment” means the time when the Employee-employer relationship
between a Participant and the Company or any Subsidiary is terminated for any reason, with
or without cause. Termination of Employment includes, but is not limited to, termination
by resignation, discharge, death, disability or retirement, but excludes, at the
discretion of the Committee, (a) termination where there is a simultaneous reemployment or
continuing employment of a Participant by the Company or any Subsidiary, (b) termination
that results in temporary severance of the Employee-employer relationship, and (c)
termination where there is simultaneous establishment of a consulting relationship by the
Company or a Subsidiary with a former Employee. The Committee, in its absolute discretion,
shall determine the effect of all matters and questions relating to Termination of
Employment, including, without limitation, the question of whether a Termination of
Employment resulted from a discharge for good cause, and all questions of whether a
particular leave of absence constitutes a Termination of Employment; provided, however,
that, with respect to Incentive Stock Options, unless otherwise determined by the
Committee in its discretion, a leave of absence, change in status from an Employee to an
independent contractor, or other change in the Employee-employer relationship shall
constitute a Termination of Employment if and to the extent that the leave of absence,
change in status or other change interrupts employment for the purposes of Section
422(a)(2) of the Code and the then applicable regulations and revenue rulings under that
Section of the Code.

Article 3. Administration

     3.1      General. The Committee shall be responsible for administering this Plan, subject to
this Article 3 and the other provisions of this Plan. The Committee may employ attorneys,
consultants, accountants, agents and other individuals, any of whom may be an Employee, and the
Committee, the Company and its officers and Directors shall be entitled to rely upon the advice,
opinions, or valuations of any such individuals. All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the Participants, the Company,
and all other interested individuals.

     3.2      Authority of the Committee. The Committee shall have full and exclusive discretionary
power to interpret the terms and the intent of this Plan and any Award Agreement or other agreement
or document ancillary to or in connection with this Plan, to determine eligibility of Employees for
Awards and to adopt such rules, regulations, forms, instruments and guidelines for administering
this Plan as the Committee may deem necessary or proper. That authority shall include, but not be
limited to, selecting which Employees are Award recipients, establishing all Award terms and
conditions, including the terms and conditions set forth in Award Agreements, granting Awards as an
alternative to or as the form of payment for grants or rights earned or due under compensation
plans or arrangements of the Company, construing any ambiguous provision of the Plan or any Award
Agreement, and, subject to Article 18, adopting modifications and amendments to this Plan or any
Award Agreement, including without limitation, any that are necessary to comply with the laws of
the countries and other jurisdictions in which the Company, its Affiliates and/or its Subsidiaries
operate.

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     3.3      Delegation. The Committee may delegate to one or more of its members or to one or more
officers of the Company, and/or its Subsidiaries and Affiliates, or to one or more agents or
advisors, such administrative duties or powers as the Committee may deem advisable, and the
Committee or any individuals to whom it has delegated duties or powers may employ one or more
individuals to render advice with respect to any responsibility the Committee or those individuals
may have under this Plan. The Committee may, by resolution, authorize one or more officers of the
Company to do one or both of the following on the same basis as can the Committee: (a) designate
Employees to be recipients of Awards; and (b) determine the size of any such Awards; provided,
however, that (i) in the case of Awards to be granted to Employees who are considered Insiders, the
Committee shall not delegate these responsibilities to any officer; (ii) the resolution providing
the authorization sets forth the total number of Awards the officer(s) may grant; and (iii) the
officer(s) shall report periodically to the Committee regarding the nature and scope of the Awards
granted pursuant to the delegated authority.

Article 4. Shares Subject to this Plan and Maximum Awards

	 	4.1	 	Number of Shares Available for Awards.

	 	(a)	 	There is hereby reserved for issuance under the Plan an aggregate of
seven hundred fifty thousand one hundred forty (750,140) Shares of Libbey Inc.
common stock. The Shares authorized under this Plan are in addition to the number
of Shares previously reserved and available for issuance under the Prior Plans. In
connection with approving this Plan, and contingent upon receipt of shareholder
approval of this Plan, the Board of Directors has approved a merger of the Prior
Plans into this Plan, so that on and after the date this Plan is approved by
shareholders, the maximum number of Shares reserved for issuance under this Plan
shall not exceed the total number of Shares approved under this Plan and the Shares
previously approved and available for issuance under the Prior Plans, reduced by
any awards made from the Prior Plans during the period beginning January 1, 2006.
	 
	 	(b)	 	The maximum number of Shares that may be issued pursuant to ISOs under
this Plan shall be one million five hundred thousand (1,500,000) Shares.
	 
	 	(c)	 	The maximum number of Shares that may be granted to Non-employee
Directors shall be 150,000 Shares, and no Non-employee Director may receive Awards
subject to more than 7,500 Shares in any Plan Year.
	 
	 	(d)	 	Except with respect to a maximum of five percent (5%) of the shares
authorized for issuance under this Plan, any Full Value Awards that vest on the
basis of the Participant’s continued employment with or service to the Company
shall not provide for vesting that is any more rapid than annual pro rata vesting
over a three- (3-) year period, and any Full Value Awards that vest upon the
attainment of performance goals shall provide for a performance period of at least
twelve (12) months. Notwithstanding the foregoing, the Committee may permit the
acceleration of vesting of Full Value Awards in the event of the Participant’s
death, disability or retirement, or in the event of a Change in Control.

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     4.2      Share Usage. Shares covered by an Award shall be counted as used only to the extent they
are actually issued. Any Shares related to Awards under this Plan or under Prior Plans that
terminate by expiration, forfeiture, cancellation or otherwise without the issuance of the Shares,
or are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior
to the issuance of Shares, for Awards not involving Shares, shall be available again for grant
under this Plan. Moreover, if the Option Price of any Option granted under this Plan or the tax
withholding requirements with respect to any Award granted under this Plan are satisfied by
tendering Shares to the Company (by either actual delivery or by attestation), the tendered Shares
shall again be available for grant under this Plan. Furthermore, if a SAR is exercised and settled
in Shares, the difference between the total Shares exercised and the net Shares delivered shall
again be available for grant under this Plan, with the result being that only the number of Shares
issued upon exercise of a SAR are counted against the Shares available. The Shares available for
issuance under this Plan may be authorized and unissued Shares or treasury Shares.

     4.3      Annual Award Limits. Unless and until the Committee determines that an Award to a Covered
Employee shall not be designed to qualify as Performance-Based Compensation, the following limits
(each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply
to grants of Awards under this Plan:

	 	(a)	 	Options: The maximum aggregate number of Shares subject to Options
granted in any one Plan Year to any one Participant shall be three hundred thousand
(300,000).
	 
	 	(b)	 	SARs: The maximum number of Shares subject to Stock Appreciation Rights
granted in any one Plan Year to any one Participant shall be three hundred thousand
(300,000).
	 
	 	(c)	 	Restricted Stock or Restricted Stock Units: The maximum aggregate grant
with respect to Awards of Restricted Stock or Restricted Stock Units in any one
Plan Year to any one Participant shall be two hundred thousand (200,000) Shares.
	 
	 	(d)	 	Performance Units or Performance Shares: The maximum aggregate Award of
Performance Units or Performance Shares that a Participant may receive in any one
Plan Year shall be two hundred thousand (200,000) Shares, or equal to the value of
two hundred thousand (200,000) Shares determined as of the date of payout.
	 
	 	(e)	 	Cash-Based Awards and Other Stock-Based Awards: The maximum aggregate
amount awarded or credited with respect to Cash-Based or Other Stock-Based Awards
to any one Participant in any one Plan Year may not exceed the value of three
million dollars ($3,000,000) or two hundred thousand (200,000) Shares determined as
of the date of payout.

     4.4      Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the Shares or the capitalization of the Company), such
as a merger, consolidation, reorganization, recapitalization, separation, partial or complete
liquidation, stock dividend, stock split, reverse stock split, split up, spin-off, or other
distribution of stock or property of the Company, combination of Shares, exchange of Shares,

9

 

dividend in kind, or other like change in capital structure, number of outstanding Shares or
distribution (other than normal cash dividends) to shareholders of the Company, or any similar
corporate event or transaction, the Committee, in its sole discretion, in order to prevent dilution
or enlargement of Participants’ rights under this Plan, shall substitute or adjust, as applicable,
the number and kind of Shares that may be issued under this Plan or under particular forms of
Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant
Price applicable to outstanding Awards, the Annual Award Limits, and other value determinations
applicable to outstanding Awards.

     The Committee, in its sole discretion, also may make appropriate adjustments in the terms of
any Awards under this Plan to reflect or relate to the changes or distributions and to modify any
other terms of outstanding Awards, including modifications of performance goals and changes in the
length of Performance Periods. Notwithstanding anything in this Plan to the contrary, the Committee
may not take any action described in this Section 4.4 if the action would result in a violation of
the requirements of Code Section 409A. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under this Plan.

     Subject to the provisions of Article 18 and notwithstanding anything else in this Plan to the
contrary, the Board or the Committee may authorize the issuance of Awards under this Plan in
connection with the assumption of, or substitution for, outstanding benefits previously granted to
individuals who become Employees of Libbey Inc. or any Subsidiary as a result of any merger,
consolidation, acquisition of property or stock, or reorganization, upon such terms and conditions
as the Committee may deem appropriate, subject to compliance with the rules under Code Sections
409A, 422, and 424, as and where applicable. Any Substitute Awards granted under the Plan shall not
count against the share limitations set forth in Section 4.3 hereof, to the extent permitted by
Section 303A.08 of the Corporate Governance Standards of the New York Stock Exchange.

Article 5. Eligibility and Participation

     5.1      Eligibility. Individuals eligible to participate in this Plan include all Employees
and Non-employee Directors.

     5.2      Actual Participation. Subject to the provisions of this Plan, the Committee from time to
time may select from all eligible individuals those individuals to whom Awards shall be granted and
shall determine, in its sole discretion, the nature of, any and all terms permissible by law with
respect to, and the amount of each Award.

Article 6. Stock Options

     6.1      Grant of Options. Subject to the terms and provisions of this Plan, Options may be
granted to Participants in such number, and upon such terms, and at any time and from time to time
as shall be determined by the Committee in its sole discretion, provided that ISOs may be granted
only to eligible Employees of the Company or of any parent or Subsidiary (as permitted under Code
Sections 422 and 424). However, an Employee who is employed by an Affiliate and/or Subsidiary may
be granted Options only to the extent the Affiliate and/or Subsidiary is part of: (i) the Company’s
controlled group of corporations or (ii) a trade or business under common control, as of the date
of grant, as determined within the meaning of Code Section 414(b) or 414(c) and substituting for
this purpose ownership of at least fifty percent (50%) of the

10

 

Affiliate and/or Subsidiary to determine the members of the controlled group of corporations
and the entities under common control.

     6.2      Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
specify the Option Price, the maximum duration of the Option, the number of Shares to which the
Option pertains, the conditions upon which an Option shall become vested and exercisable, and such
other provisions as the Committee shall determine and as are not inconsistent with the terms of
this Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a
NQSO.

     6.3      Option Price. The Option Price for each grant of an Option under this Plan shall be
determined by the Committee in its sole discretion and shall be specified in the Award Agreement;
provided, however, the Option Price must be at least equal to one hundred percent (100%) of the FMV
of the Shares as determined on the date of grant.

     Notwithstanding this Section 6.3 to the contrary, in the case of an Option that is a
Substitute Award, the price per share of the Shares subject to the Option may be less than the Fair
Market Value per Share on the date of grant; provided, however, that X shall not exceed Y, where X
is the amount, if any, by which the aggregate Fair Market Value (as of the date the Substitute
Award is granted) of the Shares subject to the Substitute Award exceeds the aggregate option price
thereof, and Y is the amount, if any, by which the aggregate Fair Market Value (determined by the
Committee as of the time immediately preceding the transaction giving rise to the Substitute
Awards) of the Shares of the predecessor entity that were subject to the grant assumed or
substituted for the Company exceeds the aggregate option price of such Shares.

     6.4      Term of Options. Each Option granted to a Participant shall expire at such time as the
Committee shall determine at the time of grant; provided, however, no Option shall be exercisable
later than the tenth (10th) anniversary date of its grant. Notwithstanding the
foregoing, the Committee has the authority to grant to Participants who are not residents of the
United States Nonqualified Stock Options that have a term greater than ten (10) years.

     6.5      Exercise of Options. Options granted under this Article 6 shall be exercisable at such
times and be subject to such restrictions and conditions as the Committee shall in each instance
approve. The terms and restrictions applicable to Options need not be the same for each grant or
for each Participant.

     6.6      Payment. Options granted under this Article 6 shall be exercised by the delivery to the
Company or an agent designated by the Company of a notice of exercise in a form specified or
accepted by the Committee, or by complying with any alternative procedures authorized by the
Committee,. The notice of exercise shall set forth the number of Shares with respect to which the
Option is to be exercised and be accompanied by full payment for the Shares.

     Payment of the Option Price shall be a condition to the issuance of the Shares as to which an
Option shall be exercised. The Option Price of any Option shall be payable to the Company in full
either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to
the Option Price; (c) by a cashless (broker-assisted) exercise; (d) by a combination of (a), (b)
and/or (c); or (e) any other method approved or accepted by the Committee, in its sole discretion.

11

 

     Subject to any governing rules or regulations, as soon as practicable after receipt of written
notification of exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book entry Shares or, upon
the Participant’s request, Share certificates in an appropriate amount based upon the number of
Shares purchased under the Option(s).

     Unless otherwise determined by the Committee, all payments under all of the methods indicated
above shall be paid in United States dollars.

     6.7      Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem
advisable, including, without limitation, minimum holding period requirements or restrictions under
applicable federal securities laws, under the requirements of any stock exchange or market upon
which the Shares are then listed and/or traded, or under any blue sky or state securities laws
applicable to the Shares.

     6.8      Termination of Employment. Each Participant’s Award Agreement shall set forth the extent
to which the Participant shall have the right to exercise the Option following Termination of
Employment or termination of services to the Company, its Affiliates and/or its Subsidiaries, as
the case may be. These provisions shall be determined in the sole discretion of the Committee,
shall be included in the Award Agreement entered into with each Participant, need not be uniform
among all Options issued pursuant to this Article 6, and may reflect distinctions based on the
reasons for termination.

     6.9      Notification of Disqualifying Disposition. If any Participant shall make any disposition
of Shares issued pursuant to the exercise of an ISO under the circumstances described in Code
Section 421(b) (relating to certain disqualifying dispositions), the Participant shall notify the
Company of such disposition within ten (10) days thereof.

     6.10      No Other Feature of Deferral. No Option granted pursuant to this Plan shall provide for
any feature for the deferral of compensation other than the deferral of recognition of income until
the exercise of the Option.

Article 7. Stock Appreciation Rights

     7.1      Grant of SARs. Subject to the terms and conditions of this Plan, SARs may be granted
to Participants at any time and from time to time as shall be determined by the Committee. However,
an Employee who is employed by an Affiliate and/or Subsidiary may be granted SARs only to the
extent the Affiliate and/or Subsidiary is: (i) part of the Company’s controlled group of
corporations or (ii) a trade or business under common control, as of the date of grant, as
determined within the meaning of Code Section 414(b) or 414(c) and substituting for this purpose
ownership of at least fifty percent (50%) of the Affiliate and/or Subsidiary to determine the
members of the controlled group of corporations and the entities under common control.

     Subject to the terms and conditions of this Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Participant and, consistent with the provisions
of this Plan, in determining the terms and conditions pertaining to the SARs.

12

 

     The Grant Price for each grant of a SAR shall be determined by the Committee and shall be
specified in the Award Agreement; provided, however, the Grant Price on the date of grant must be
at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the date of
grant.

     Notwithstanding this Section 7.1 to the contrary, in the case of a SAR that is a Substitute
Award, the Grant Price of the Shares subject to the SAR may be less than the Fair Market Value per
Share on the date of grant; provided, however, that the X shall not exceed Y, where X is the
amount, if any, by which the aggregate Fair Market Value (as of the date on which the Substitute
Award is granted) of the Shares subject to the Substitute Award exceeds the aggregate Grant Price
with respect to the Shares subject to the Substitute Award and Y is the amount, if any, by which
the aggregate Fair Market Value (determined by the Committee as of the time immediately preceding
the transaction giving rise to the Substitute Awards), of the Shares of the predecessor entity
that were subject to the grant assumed or substituted for the Company exceeds the aggregate Grant
Price of the Shares.

     7.2      SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify
the Grant Price, the term of the SAR and such other provisions as the Committee shall determine.

     7.3      Term of SAR. The term of a SAR granted under this Plan shall be determined by the
Committee, in its sole discretion, and, except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth
(10th) anniversary date of its grant. Notwithstanding the foregoing, the Committee has
the authority to grant to Participants who are not residents of the United States SARs that have a
term greater than ten (10) years.

     7.4      Exercise of SARs. SARs may be exercised upon whatever terms and conditions the Committee,
in its sole discretion, imposes.

     7.5      Settlement of SARs. Upon the exercise of a SAR, a Participant shall be entitled to receive
payment from the Company in an amount equal to the product of the excess of the Fair Market Value
of a Share on the date of exercise over the Grant Price and the number of Shares with respect to
which the SAR is exercised.

     At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares or
any combination of cash and Shares, or in any other manner approved by the Committee in its sole
discretion. The Committee’s determination regarding the form of SAR payout shall be set forth in
the Award Agreement pertaining to the grant of the SAR.

     7.6      Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to exercise the SAR following Termination of Employment with, or
provision of services to, the Company, its Affiliates and/or its Subsidiaries, as the case may be.
These provisions shall be determined in the sole discretion of the Committee, shall be included in
the Award Agreement entered into with Participants, need not be uniform among all SARs issued
pursuant to this Plan, and may reflect distinctions based on the reasons for termination.

     7.7      Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares received upon exercise of a SAR granted pursuant to this Plan as it

13

 

may deem advisable or desirable. These restrictions may include, but shall not be limited to,
a requirement that the Participant hold the Shares received upon exercise of a SAR for a specified
period of time.

     7.8      No Other Feature of Deferral. No SAR granted pursuant to this Plan shall provide for any
feature for the deferral of compensation other than the deferral of recognition of income until the
exercise of the SAR.

Article 8. Restricted Stock and Restricted Stock Units

     8.1      Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and
provisions of this Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock and/or Restricted Stock Units to Participants in such amounts as the Committee
shall determine.

     8.2      Restricted Stock or Restricted Stock Unit Agreement. Each grant of Restricted Stock
and/or Restricted Stock Units shall be evidenced by an Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted
Stock Units granted, and such other provisions as the Committee shall determine.

     8.3      Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may
deem advisable, including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based
upon the achievement of specific performance goals, time-based restrictions on vesting following
the attainment of the performance goals, time-based restrictions, restrictions under applicable
laws or under the requirements of any stock exchange or market upon which the Shares are listed or
traded, or holding requirements or sale restrictions placed on the Shares by the Company upon
vesting of the Restricted Stock or Restricted Stock Units.

     To the extent deemed appropriate by the Committee, the Company may retain the certificates
representing Shares of Restricted Stock in the Company’s possession until such time as all
conditions and/or restrictions applicable to the Shares have been satisfied or have lapsed.

     Except as otherwise provided in this Article 8, Shares of Restricted Stock covered by each
Restricted Stock Award shall become freely transferable by the Participant after all conditions and
restrictions applicable to the Shares have been satisfied or have lapsed (including satisfaction of
any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash,
Shares or a combination of cash and Shares as the Committee, in its sole discretion, shall
determine.

     8.4      Certificate Legend. In addition to any legends placed on certificates pursuant to Section
8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may
bear a legend such as the following or as otherwise determined by the Committee in its sole
discretion:

     

The sale or transfer of Shares of stock represented by this
certificate, whether voluntary, involuntary or by operation of law,
is subject to certain restrictions on transfer as set forth in the
Libbey

14

 

Inc. 2006 Omnibus Incentive Plan, and in the associated Award
Agreement. A copy of this Plan and the Award Agreement may be
obtained from Libbey Inc.

     8.5      Voting Rights. Unless otherwise determined by the Committee and set forth in a
Participant’s Award Agreement, to the extent permitted or required by law, Participants holding
Shares of Restricted Stock granted pursuant to this Plan may be granted the right to exercise full
voting rights with respect to those Shares during the Period of Restriction. A Participant shall
have no voting rights with respect to any Restricted Stock Units granted pursuant to this Plan.

     8.6      Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following
Termination of Employment with, or provision of services to, the Company, its Affiliates and/or its
Subsidiaries, as the case may be. These provisions shall be determined in the sole discretion of
the Committee, shall be included in the Award Agreement entered into with each Participant, need
not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to
this Plan, and may reflect distinctions based on the reasons for termination.

     8.7      Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of
Restricted Stock is conditioned upon the Participant making or refraining from making an election
with respect to the Award under Code Section 83(b). If a Participant makes an election pursuant to
Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file
promptly a copy of the election with the Company.

Article 9. Performance Units/Performance Shares

     9.1      Grant of Performance Units/Performance Shares. Subject to the terms and provisions of
this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or
Performance Shares to Participants in such amounts and upon such terms as the Committee shall
determine.

     9.2      Value of Performance Units/Performance Shares. Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant. Each Performance Share shall have
an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee
shall set performance goals in its discretion which, depending on the extent to which they are met,
will determine the value and/or number of Performance Units/Performance Shares that will be paid
out to the Participant.

     9.3      Earning of Performance Units/Performance Shares. Subject to the terms of this Plan, after
the applicable Performance Period has ended, the holder of Performance Units/Performance Shares
shall be entitled to receive payout on the value and number of Performance Units/Performance Shares
earned by the Participant over the Performance Period, to be determined as a function of the extent
to which the corresponding performance goals have been achieved.

     9.4      Form and Timing of Payment of Performance Units/Performance Shares. Payment of earned
Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in
the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may
pay earned Performance Units/Performance Shares in

15

 

the form of cash or in Shares (or in a combination thereof) equal to the value of the earned
Performance Units/Performance Shares at the close of the applicable Performance Period, or as soon
as practicable after the end of the Performance Period. Any Shares may be granted subject to any
restrictions deemed appropriate by the Committee. The determination of the Committee with respect
to the form of payout of the Awards shall be set forth in the Award Agreement pertaining to the
grant of the Award.

     9.5      Termination of Employment. Each Award Agreement shall set forth the extent to which the
Participant shall have the right to retain Performance Units and/or Performance Shares following
Termination of Employment with, or provision of services to, the Company, its Affiliates and/or its
Subsidiaries, as the case may be. These provisions shall be determined in the sole discretion of
the Committee, shall be included in the Award Agreement entered into with each Participant, need
not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this
Plan, and may reflect distinctions based on the reasons for termination.

Article 10. Cash-Based Awards and Other Stock-Based Awards

     10.1      Grant of Cash-Based Awards. Subject to the terms and provisions of the Plan, the
Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such
amounts and upon such terms as the Committee may determine.

     10.2      Other Stock-Based Awards. The Committee may grant other types of equity-based or
equity-related Awards not otherwise described by the terms of this Plan (including the grant or
promise to deliver or offer for sale of unrestricted Shares) in such amounts and subject to such
terms and conditions as the Committee shall determine. Other Stock-Based Awards may involve the
transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the
value of Shares, and may include, without limitation, Awards designed to comply with or take
advantage of the applicable local laws of jurisdictions other than the United States.

     10.3      Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a
payment amount or payment range as determined by the Committee. Each Other Stock-Based Award shall
be expressed in terms of Shares or units based on Shares, as determined by the Committee. The
Committee may establish performance goals in its discretion. If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other
Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the
performance goals are met.

     10.4      Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect
to a Cash-Based Award or an Other Stock-Based Award shall be made, in accordance with the terms of
the Award, in cash or Shares as the Committee determines.

     10.5      Termination of Employment. The Committee shall determine the extent to which the
Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following
Termination of Employment with, or provision of services to, the Company, its Affiliates and/or its
Subsidiaries, as the case may be. These provisions shall be determined in the sole discretion of
the Committee, may be included in an agreement entered into with each Participant, need not be
uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination.

16

 

Article 11. Transferability of Awards

     11.1      Transferability. Except as provided in Section 11.2 below, during a Participant’s
lifetime, his or her Awards shall be exercisable only by the Participant. Awards shall not be
transferable other than by will or the laws of descent and distribution or, subject to the consent
of the Committee, pursuant to a DRO; no Awards shall be subject, in whole or in part, to
attachment, execution or levy of any kind; and any purported transfer in violation of this Section
11.1 shall be null and void. The Committee may establish such procedures as it deems appropriate
for a Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in
the event of, or following, the Participant’s death may be provided.

     11.2      Committee Action. The Committee may, in its discretion, determine that notwithstanding
Section 11.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such
transferees, and subject to such terms and conditions, as the Committee may deem appropriate;
provided, however, no Award may be transferred for value (as defined in the General Instructions to
Form S-8).

Article 12. Performance Measures

     12.1      Performance Measures. The performance goals upon which the payment or vesting of an
Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be
limited to the following Performance Measures:

	 	(a)	 	Net earnings or net income (before or after taxes);
	 
	 	(b)	 	Earnings per share;
	 
	 	(c)	 	Net sales or revenue growth;
	 
	 	(d)	 	Net operating profit;
	 
	 	(e)	 	Return measures (including, but not limited to, return on assets, capital, invested
capital, equity, sales or revenue);
	 
	 	(f)	 	Cash flow (including, but not limited to, operating cash flow, free cash flow, cash
flow return on equity and cash flow return on investment);
	 
	 	(g)	 	Earnings before or after taxes, interest, depreciation and/or amortization;
	 
	 	(h)	 	Gross or operating margins;
	 
	 	(i)	 	Productivity ratios;
	 
	 	(j)	 	Share price (including, but not limited to, growth measures and total shareholder
return);
	 
	 	(k)	 	Expense targets;
	 
	 	(l)	 	Cost reductions or savings;
	 
	 	(m)	 	Performance against operating budget goals;
	 
	 	(n)	 	Margins;
	 
	 	(o)	 	Operating efficiency;
	 
	 	(p)	 	Funds from operations;
	 
	 	(q)	 	Market share;
	 
	 	(r)	 	Customer satisfaction;
	 
	 	(s)	 	Working capital targets; and
	 
	 	(t)	 	Economic value added or EVA® (net operating profit after tax minus the sum
of capital multiplied by the cost of capital).

     Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary
and/or Affiliate as a whole or any business unit of the Company, Subsidiary and/or Affiliate, or
any combination thereof, as the Committee may deem appropriate, or any of the

17

 

above Performance Measures as compared to the performance of a group of comparator companies,
or published or special index that the Committee, in its sole discretion, deems appropriate, or the
Company may select Performance Measure (j) above as compared to various stock market indices. The
Committee also has the authority to provide for accelerated vesting of any Award based on the
achievement of performance goals pursuant to the Performance Measures specified in this Article 12.

     12.2      Evaluation of Performance. The Committee may provide in any such Award that any
evaluation of performance may include or exclude any of the following events that occurs during a
Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c)
the effect of changes in tax laws, accounting principles or other laws or provisions affecting
reported results, (d) any reorganization and restructuring programs, (e) Extraordinary Items, (f)
acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent the
inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form
that meets the requirements of Code Section 162(m) for deductibility.

     12.3      Adjustment of Performance-Based Compensation. Awards that are intended to qualify as
Performance-Based Compensation may not be adjusted upward. The Committee shall retain the
discretion to adjust the Awards downward, either on a formula or discretionary basis or any
combination, as the Committee determines.

     12.4      Committee Discretion. If applicable tax and/or securities laws change to permit Committee
discretion to alter the governing Performance Measures without obtaining shareholder approval of
the changes, the Committee shall have sole discretion to make the changes without obtaining
shareholder approval provided the exercise of such discretion does not violate Code Section 409A.
In addition, if the Committee determines that it is advisable to grant Awards that shall not
qualify as Performance-Based Compensation, the Committee may make the grants without satisfying the
requirements of Code Section 162(m) and base vesting on Performance Measures other than those set
forth in Section 12.1.

Article 13. Non-employee Director Awards

     Non-employee Directors may be granted Awards pursuant to this Plan only in accordance
with this Article 13. Awards granted to Non-employee Directors pursuant to this Plan shall not be
subject to management’s discretion. From time to time, the Nominating and Governance Committee
shall set the amount(s) and type(s) of Awards that shall be granted to all Non-employee Directors
on a periodic, nondiscriminatory basis pursuant to the Plan, as well as any additional amount(s),
if any, to be awarded, also on a periodic, nondiscriminatory basis, based on each of the following:
(a) the number of committees of the Board on which a Non-employee Director serves, (b) service of a
Non-employee Director as the chair of a committee of the Board, (c) service of a Non-employee
Director as Chairman of the Board, or (d) the first selection or appointment of an individual to
the Board as a Non-employee Director. Subject to the limits set forth in Section 4.1(c) and the
foregoing, the Nominating and Governance Committee shall grant these Awards to Non-employee
Directors and any Non-employee Chairman of the Board, and grant new Non-employee Director Awards,
as it shall from time to time determine. The terms and conditions of any grant to any Non-employee
Director shall be set forth in an Award Agreement.

18

 

Article 14. Dividend Equivalents

     Any Participant selected by the Committee may be granted Dividend Equivalents on Shares
that are subject to any Award, to be credited as of dividend payment dates, during the period
between the date the Award is granted and the date the Award is exercised, vests or expires, as
determined by the Committee. However, no Dividend Equivalents may be granted on any Award of
Options or SARs.

Article 15. Beneficiary Designation

     Each Participant under this Plan may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any benefit under this Plan
is to be paid in case of his death before he receives any or all of the benefit. Each such
designation shall revoke all prior designations by the same Participant, shall be in a form
prescribed by the Committee, and shall be effective only when filed by the Participant in writing
with the Company during the Participant’s lifetime. In the absence of any such beneficiary
designation, benefits remaining unpaid or rights remaining unexercised at the Participant’s death
shall be paid to or exercised by the Participant’s executor, administrator or legal representative.

Article 16. Rights of Participants

     16.1      Employment. Nothing in this Plan or an Award Agreement shall interfere with or limit
in any way the right of the Company, its Affiliates and/or its Subsidiaries to terminate any
Participant’s employment or service on the Board or to the Company at any time or for any reason
not prohibited by law, nor confer upon any Participant any right to continue his employment or
service as a Director for any specified period of time.

     Neither an Award nor any benefits arising under this Plan shall constitute an employment
contract with the Company, its Affiliates and/or its Subsidiaries. Accordingly, subject to
Articles 3 and 18, this Plan and the benefits under it may be terminated at any time in the sole
and exclusive discretion of the Committee without giving rise to any liability on the part of the
Company, its Affiliates and/or its Subsidiaries.

     16.2      Participation. No individual shall have the right to be selected to receive an Award
under this Plan, or, having been so selected, to be selected to receive a future Award.

     16.3      Rights as a Shareholder. Except as otherwise provided in this Plan, a Participant shall
have none of the rights of a shareholder with respect to Shares covered by any Award until the
Participant becomes the record holder of the Shares.

Article 17. Change in Control

     17.1      Change of Control of the Company. Notwithstanding any other provision of this Plan
to the contrary, the provisions of this Article 17 shall apply in the event of a Change of Control,
unless otherwise determined by the Committee in connection with the grant of an Award as reflected
in the applicable Award Agreement.

     Upon a Change of Control, all then-outstanding Options and SARs shall become fully vested and
exercisable immediately, and all other Awards that are not then vested and as to which vesting
depends upon only the satisfaction of a service obligation by a Participant to the Company,
Subsidiary or Affiliate shall vest in full and be free of restrictions related to the vesting of
the Awards, except to the extent that another Award meeting the requirements of Section

19

 

     17.2 (a “Replacement Award”) is provided to the Participant to replace the Award in
question (the “Replaced Award”). The treatment of any other Awards shall be as determined
by the Committee in connection with the grant thereof, as reflected in the applicable Award
Agreement.

     Except to the extent that a Replacement Award is provided to the Participant, the Committee
may, in its sole discretion: (i) determine that any or all outstanding Awards granted under the
Plan, whether or not exercisable, will be canceled and terminated and that in connection with the
cancellation and termination the holder of the Award may receive for each Share of Common Stock
subject to the Awards a cash payment (or the delivery of shares of stock, other securities or a
combination of cash, stock and securities equivalent to the cash payment) equal to the difference,
if any, between the consideration received by shareholders of the Company in respect of a Share of
Common Stock in connection with the transaction and the product of the purchase price, if any, per
share under the Award and the number of Shares of Common Stock subject to the Award; provided,
however, that if the product is zero or less, or to the extent that the Award is not then
exercisable, the Awards will be canceled and terminated without payment therefor; or (ii) provide
that the period to exercise Options or SARs granted under the Plan shall be extended (but not
beyond the expiration of the Option or SAR).

     17.2      Replacement Awards. An Award shall meet the conditions of this Section 17.2 (and hence
qualify as a Replacement Award) if: (i) it has a value at least equal to the value of the Replaced
Award as determined by the Committee in its sole discretion; (ii) it relates to publicly traded
equity securities of the Company or its successor pursuant to the Change in Control or another
entity that is affiliated with the Company or its successor following the Change in Control; and
(iii) its other terms and conditions are not less favorable to the Participant than the terms and
conditions of the Replaced Award (including the provisions that would apply in the event of a
subsequent Change of Control). Without limiting the generality of the foregoing, the Replacement
Award may take the form of a continuation of the Replaced Award if the requirements of the
preceding sentence are satisfied. The determination as to whether the conditions of this Section
17.2 are satisfied shall be made by the Committee, as constituted immediately before the Change of
Control, in its sole discretion.

     17.3      Termination of Employment. Upon a Termination of Employment or, in the case of Directors,
a termination of service as a Director, of a Participant occurring in connection with or during the
period of two (2) years after the Change in Control, other than for Cause, (i) all Replacement
Awards held by the Participant shall become fully vested and (if applicable) exercisable and free
of restrictions, and (ii) all Options and SARs held by the Participant immediately before the
termination of employment or termination of service as a Director that the Participant held as of
the date of the Change in Control or that constitute Replacement Awards shall remain exercisable
for not less than one (1) year following the termination or until the expiration of the stated term
of the Option or SAR, whichever period is shorter; provided that, if the applicable Award Agreement
provides for a longer period of exercisability, that provision shall control.

Article 18. Amendment, Modification, Suspension, and Termination

     18.1      Amendment, Modification, Suspension, and Termination. Subject to Section 18.3, the
Committee may, at any time and from time to time, alter, amend, modify, suspend or terminate this
Plan and any Award Agreement in whole or in part; provided, however, that, without the prior
approval of the Company’s shareholders and except as provided in Section 4.4, Options or SARs
issued under this Plan will not be repriced, replaced or regranted through

20

 

cancellation and substitution of another Award, or by lowering the Option Price of a
previously granted Option or the Grant Price of a previously granted SAR, and no amendment of this
Plan shall be made without shareholder approval if shareholder approval is required by law,
regulation or stock exchange rule.

     18.2      Awards Previously Granted. Notwithstanding any other provision of this Plan to the
contrary (other than Section 18.3), no termination, amendment, suspension or modification of this
Plan or an Award Agreement shall adversely affect in any material way any Award previously granted
under this Plan, without the written consent of the Participant holding the Award.

     18.3      Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the
contrary, the Board of Directors may amend the Plan or an Award Agreement, to take effect
retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan
or an Award Agreement to any present or future law relating to plans of this or similar nature
(including, but not limited to, Code Section 409A), and to the administrative regulations and
rulings promulgated under the present or future law.

Article 19. Withholding

     19.1      Tax Withholding. The Company shall have the power and the right to deduct or
withhold, or require a Participant to remit to the Company, the minimum statutory amount to satisfy
federal, state and local taxes, domestic or foreign, required by law or regulation to be withheld
with respect to any taxable event arising as a result of this Plan.

     19.2      Share Withholding. With respect to withholding required upon the exercise of Options or
SARs, upon the lapse of restrictions on Restricted Stock and Restricted Stock Units, or upon the
achievement of performance goals related to Performance Shares, or any other taxable event arising
as a result of an Award granted pursuant to this Plan, Participants may elect, subject to the
approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having
the Company withhold Shares having a Fair Market Value on the date the tax is to be determined
equal to the minimum statutory total tax that could be imposed on the transaction. All such
elections shall be irrevocable, made in writing and signed by the Participant, and shall be subject
to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

Article 20. Successors

     All obligations of the Company under this Plan with respect to Awards granted pursuant to
this Plan shall be binding on any successor to the Company, whether the existence of the successor
is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

Article 21. General Provisions

     21.1     Forfeiture Events.

	 	(a)	 	The Committee may specify in an Award Agreement that the Participant’s
rights, payments and benefits with respect to an Award shall be subject to
reduction, cancellation, forfeiture or recoupment upon the occurrence of certain
specified events, in addition to any otherwise applicable vesting or performance
conditions of an Award. These events may include, but shall not

21

 

	 	 	 	be limited to, termination of employment for cause, termination of the
Participant’s provision of services to the Company, Affiliate and/or Subsidiary,
violation of material Company, Affiliate and/or Subsidiary policies, breach of
noncompetition, confidentiality or other restrictive covenants that may apply to
the Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company, its Affiliates and/or its Subsidiaries.
	 
	 	(b)	 	If the Company is required to prepare an accounting restatement due to
the material noncompliance of the Company, as a result of misconduct, with any
financial reporting requirement under the securities laws, and if the Participant
knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly
negligently failed to prevent the misconduct, or if the Participant is one of the
individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley
Act of 2002, the Participant shall reimburse the Company the amount of any payment
in settlement of an Award earned or accrued during the twelve (12) month period
following the first public issuance or filing with the United States Securities and
Exchange Commission (whichever just occurred) of the financial document embodying
the financial reporting requirement.

     21.2      Legend. The certificates for Shares may include any legend that the Committee deems
appropriate to reflect any restrictions on transfer of the Shares.

     21.3      Gender and Number. Except where otherwise indicated by the context, any masculine term
used in this Plan also shall include the feminine, the plural shall include the singular, and the
singular shall include the plural.

     21.4      Severability. In the event any provision of this Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and
this Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

     21.5      Requirements of Law. The granting of Awards and the issuance of Shares under this Plan
shall be subject to all applicable laws, rules and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.

     21.6      Delivery of Title. The Company shall have no obligation to issue or deliver evidence of
title for Shares issued under this Plan prior to:

	 	(a)	 	Obtaining any approvals from governmental agencies that the Company
determines are necessary or advisable; and
	 
	 	(b)	 	Completion of any registration or other qualification of the Shares
under any applicable national or foreign law or ruling of any governmental body
that the Company determines to be necessary or advisable.

     21.7      Inability to Obtain Authority. The inability of the Company to obtain from any regulatory
body having jurisdiction such authority as the Company’s counsel deems to be necessary to the
lawful issuance and sale of any Shares under this Plan, shall relieve the Company of any liability
in respect of the failure to issue or sell the Shares as to which requisite authority shall not
have been obtained.

22

 

     21.8      Investment Representations. The Committee may require any individual receiving Shares
pursuant to an Award under this Plan to represent and warrant in writing that the individual is
acquiring the Shares for investment and without any present intention to sell or distribute the
Shares.

     21.9      Employees Based Outside of the United States. Notwithstanding any provision of this Plan
to the contrary, in order to comply with the laws in other countries in which the Company, its
Affiliates and/or its Subsidiaries operate or in which Employees or Directors of the Company, its
Affiliates and/or its Subsidiaries are located, the Committee, in its sole discretion, shall have
the power and authority to:

	 	(a)	 	Determine which Affiliates and Subsidiaries shall be covered by this
Plan;
	 
	 	(b)	 	Determine which Employees and/or Directors outside the United States
are eligible to participate in this Plan;
	 
	 	(c)	 	Modify the terms and conditions of any Award granted to Employees
and/or Directors outside the United States to comply with applicable foreign laws;
	 
	 	(d)	 	Establish subplans and modify exercise procedures and other terms and
procedures, to the extent the actions may be necessary or advisable. Any sub-plans
and modifications to Plan terms and procedures established under this Section 21.9
by the Committee shall be attached to this Plan document as appendices; and
	 
	 	(e)	 	Take any action, before or after an Award is made, that it deems
advisable to obtain approval or comply with any necessary local government
regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions under this Section 21.9, and
no Awards shall be granted, that would violate applicable law.

     21.10      Uncertificated Shares. To the extent that this Plan provides for issuance of
certificates to reflect the transfer of Shares, the transfer of the Shares may be effected on a
noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock
exchange.

     21.11      Unfunded Plan. Participants shall have no right, title or interest in or to any
investments that the Company and/or its Subsidiaries and/or its Affiliates may make to aid it in
meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any Participant, beneficiary, legal representative
or any other individual. To the extent that any individual acquires a right to receive payments
from the Company, its Subsidiaries and/or its Affiliates under this Plan, the right shall be no
greater than the right of an unsecured general creditor of the Company, a Subsidiary or an
Affiliate, as the case may be. All payments to be made under this Plan shall be paid from the
general funds of the Company, a Subsidiary or an Affiliate, as the case may be, and no special or
separate fund shall be established and no segregation of assets shall be made to assure payment of
the amounts except as expressly set forth in this Plan.

23

 

     21.12      No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this
Plan or any Award. The Committee shall determine whether cash, Awards or other property shall be
issued or paid in lieu of fractional Shares or whether fractional Shares or any rights to
fractional Shares shall be forfeited or otherwise eliminated.

     21.13      Retirement and Welfare Plans. Neither Awards made under this Plan nor Shares or cash
paid pursuant to Awards may be included as “compensation” for purposes of computing the benefits
payable to any Participant under the Company’s or any Subsidiary’s or Affiliate’s retirement plans
(both qualified and non-qualified) or welfare benefit plans unless the other plan expressly
provides that the compensation shall be taken into account in computing a Participant’s benefit.

     21.14      Deferred Compensation. It is intended that any Award made under this Plan that results
in the deferral of compensation (as defined under Code Section 409A) complies with the requirements
of Code Section 409A.

     21.15      Nonexclusivity of this Plan. The adoption of this Plan shall not be construed as
creating any limitations on the power of the Board or Committee to adopt the other compensation
arrangements as it may deem desirable for any Participant.

     21.16      No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (i)
limit, impair or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power
to make adjustments, reclassifications, reorganizations or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell or transfer all or any part of
its business or assets; or (ii) limit the right or power of the Company or a Subsidiary or an
Affiliate to take any action that the entity deems to be necessary or appropriate.

     21.17      Governing Law. The Plan and each Award Agreement shall be governed by the laws of the
State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise
refer construction or interpretation of this Plan to the substantive law of another jurisdiction.
Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed
to submit to the exclusive jurisdiction and venue of the federal or state courts of Delaware, to
resolve any and all issues that may arise out of or relate to this Plan or any related Award
Agreement.

     21.18      Indemnification. Subject to requirements of Delaware law, each individual who is or
shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the
Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held
harmless by the Company against and from any loss, cost, liability or expense that may be imposed
upon or reasonably incurred by him or her in connection with or resulting from any claim, action,
suit or proceeding to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under this Plan and against and from any and all
amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or
her in satisfaction of any judgment in any such action, suit or proceeding against him or her,
provided he or she shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his/her own behalf, unless the
loss, cost, liability or expense is a result of his/her own willful misconduct or except as
expressly provided by statute.

24

 

     The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which the individuals may be entitled under the Company’s Certificate of
Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have
to indemnify them or hold them harmless.

     21.19     No Guarantee of Favorable Tax Treatment. Although the Company intends to administer the
Plan so that Awards will be exempt from, or will comply with, the requirements of Code Section
409A, the Company does not warrant that any Award under the Plan will qualify for favorable tax
treatment under Code Section 409A or any other provision of federal, state, local or foreign law.
The Company shall not be liable to any Participant for any tax the Participant might owe as a
result of the grant, holding, vesting, exercise or payment of any Award under the Plan.

25<PAGE>
                                                                    EXHIBIT 10.4

                         AGREEMENT FOR PURCHASE AND SALE
                    OF REAL PROPERTY AND ESCROW INSTRUCTIONS

THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS
("Agreement") between TREIT-AMBEROAKS, LP, a Texas limited partnership, NNN
AMBEROAKS 1, LLC, a Texas limited liability company, NNN AMBEROAKS 2, LLC, a
Texas limited liability company, NNN AMBEROAKS 3, LLC, a Texas limited liability
company (collectively, "Seller"), and CHASE MERRITT, L.P., a Delaware limited
partnership or its assigns ("Buyer"), is made and entered into as of the later
of (i) the date this Agreement is executed by Seller and (ii) the date this
Agreement is executed by Buyer (the "Effective Date"), with reference to the
following facts:

        A.      Seller owns certain real property located in Williamson County,
                Texas and more specifically described in Exhibit A attached
                hereto (the "Land"), commonly known as Amber Oaks III and such
                other assets, as the same are herein described.

        B.      Subject to the terms and conditions in this Agreement, Seller
                desires to sell to Buyer and Buyer desires to purchase from
                Seller the Land and the associated assets.

        C.      Buyer is party to a Purchase and Sale Agreement ("Amber Oaks V
                Agreement") with GREIT-Amberoaks, L.P. ("Amber Oaks V Seller")
                for the purchase and sale of that certain real property located
                in Williamson County, Texas and commonly known as Amber Oaks V
                and such other assets, as the same are therein described ("Amber
                Oaks V Property").

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

1.      Purchase and Sale.

        The purchase and sale includes, and at Closing (hereinafter defined)
        Seller shall sell, assign, grant and transfer to Buyer, all of Seller's
        right and title, estate interest in and to all of the following
        (hereinafter sometimes collectively, the "Property"):

        1.1     The Land, described on Exhibit A attached hereto, together with
                all structures, buildings, improvements, machinery, fixtures,
                and equipment affixed or attached to the Land and all easements
                and rights appurtenant thereto, including: (i) all easements,
                privileges and rights belonging or in any way appurtenant to the
                Land, (ii) any land lying in the bed of any street, road, alley
                or right-of-way, open or closed, adjacent to or abutting the
                Land, and (iii) any and all air rights, subsurface rights,
                development rights, and water rights permitting to the Land (all
                of the foregoing being collectively referred to herein as the
                "Land");

<PAGE>
        1.2     All leases listed on Exhibit B (the "Leases"), including
                associated amendments, with all persons ("Tenants") leasing the
                Real Property or any part thereof or hereafter entered into in
                accordance with the terms hereof prior to Closing, together with
                all security deposits, other deposits held in connection with
                the Leases, Lease and all of Seller's right, title and interest
                in and to all guarantees, letters of credit and other similar
                credit enhancements providing additional security for such
                Leases;

        1.3     All tangible and intangible personal property owned by Seller
                located on or used in connection with the Real Property,
                including, specifically, without limitation, all sculptures,
                paintings and other artwork, all equipment, furniture, tools and
                supplies, all plans and specifications and other architectural
                and engineering drawings, if any, with respect to the Land and
                the Improvements, and any other personal property and all
                related intangibles as are owned by Seller and currently located
                in, on or about or are used for the operation, maintenance,
                administration or repair of the Real Property, including
                Seller's interest, if any, in the common name of the Real
                Property (the "Personal Property");

        1.4     All service contracts, agreements, warranties and guaranties
                relating to the operation of the Property as of the Effective
                Date, to the extent assignable, and any other service and
                operating agreements pertaining to the Property that are entered
                into by Seller after the date of this Agreement and prior to the
                Closing in accordance with the terms of this Agreement, in each
                case to the extent approved by Buyer in accordance with this
                Agreement (collectively, the "Contracts"); provided, however,
                any Contracts not so approved by Buyer shall be terminated by
                Seller, at Buyer's expense, on or before the Closing; and

        1.5     To the extent transferable, all building permits, certificates
                of occupancy and other certificates, permits, consents,
                authorizations, variances or waivers, dedications, subdivision
                maps, licenses and approvals from any governmental or
                quasi-governmental agency, department, board, commission, bureau
                or other entity or instrumentality relating to the Property (the
                "Permits").

2.      Purchase Price.

        Subject to the charges, prorations and other adjustments set forth in
        this Agreement, total Purchase Price of the Property shall be
        Thirty-Three Million One Hundred Sixty-Five Thousand Dollars
        ($33,165,000) ("Purchase Price") payable as follows:

        2.1     Deposit/Further Payments/Down Payment.

                2.1.1   On the Effective Date Buyer shall deliver to Escrow
                        Holder (as defined in Section 7.1.1 below) by wire
                        transfer immediately available funds in the amount of
                        Two Hundred Thousand Dollars ($200,000.00) (the "Initial
                        Deposit"). Unless Buyer terminates this Agreement on or
                        before the end of the "Inspection Period" (as defined
                        below) pursuant to Section 6, Buyer

                                       2
<PAGE>
                        shall deliver to Escrow Holder, by wire transfer, within
                        two (2) business days after the later of (i) the end of
                        the Inspection Period or (ii) Buyer's receipt of Seller
                        10.2.2 Approval additional immediately available funds
                        in the amount of Two Hundred Thousand Dollars
                        ($200,000.00) (the "Additional Deposit". The Initial
                        Deposit and the Additional Deposit are herein
                        collectively called the "Deposit"). The Initial Deposit
                        and the Additional Deposit, once received by Seller,
                        shall be deemed earned by Seller and non-refundable to
                        Buyer, notwithstanding Buyer's failure to or decision
                        not to close, except that the Deposit shall be applied
                        to the Purchase Price at Closing. The Initial Deposit,
                        the Additional Deposit and the Extension Fee (as defined
                        in Section 7.2.1 herein) shall be released to Seller
                        within one (1) business day after receipt by Escrow
                        Holder. Buyer's failure to timely deliver the Additional
                        Deposit to Seller as set forth above shall constitute
                        Buyer's termination of this Agreement.

                2.2     At least one (1) business day prior to Closing, Buyer
                        shall deposit into Escrow by wire transfer of federal
                        funds, the balance of the Purchase Price, subject to
                        adjustment by reason of any applicable prorations and
                        the allocation of Closing costs described below.

3.      Title to Property.

        During the Inspection Period (hereafter defined) Buyer shall review and
        approve the Title Documents (hereinafter defined) and the Survey
        (hereinafter defined). If the Title Documents or Survey reflect or
        disclose any defect, exception or other matter affecting the Property
        ("Title Defects") that is unacceptable to Buyer, then prior to the
        expiration of the Inspection Period, Buyer shall provide Seller with
        written notice of Buyer's objections. Seller may, at its sole option,
        elect to cure or remove the objections made by Buyer. Should Seller
        elect to attempt to cure or remove the objection, it shall be a
        condition precedent to Buyer's obligation to acquire the Property that
        Seller cures such title objection prior to the Closing. Unless Seller
        provides written notice to Buyer before the expiration of the Inspection
        Period that Seller intends to cure Buyer's title objections, Seller
        shall be deemed to have elected not to cure or remove Buyer's title
        objections, and Buyer shall be entitled, as Buyer's sole and exclusive
        remedy, either to (i) terminate this Agreement by providing written
        notice of termination to Seller before the end of the Inspection Period
        and returning the Due Diligence Items (hereinafter defined) immediately
        thereafter or (ii) waive the objections and close this transaction as
        otherwise contemplated herein. If Buyer shall fail to terminate this
        Agreement during the Inspection Period, all matters shown on the Survey
        and all matters described in the Title Report, except for monetary liens
        for indebtedness of the Seller and any matters the Seller has agreed to
        cure in writing, shall be deemed "Permitted Exceptions." On or prior to
        Closing, Seller shall cause any monetary liens created by Seller which
        affect the Property, other than property taxes or assessments not yet
        delinquent, to be deleted or omitted from the Title Policy (as defined
        in Section 4.1.2). Seller will cause any recorded memorandum regarding
        the management agreement for the Property to be removed from the Title
        Policy at no cost to Buyer.

                                       3
<PAGE>
4.      Due Diligence Items.

        4.1     Seller shall deliver to Buyer each of the following within five
                business days of the Effective Date (together with the items
                described in Section 4.2, collectively, the "Due Diligence
                Items"):

                4.1.1   Any existing survey of the Property, in Seller's
                        possession (the "Survey");

                4.1.2   A current preliminary title report or title commitment
                        (the "Title Report"), dated not earlier than thirty (30)
                        days prior to the Effective Date, for the issuance of a
                        standard coverage owner's policy of title insurance,
                        with standard provisions and exceptions (the "Title
                        Policy") to Buyer from the Escrow Holder (defined
                        hereinafter in Section 7.1.1), together with copies of
                        all documents constituting exceptions to the title as
                        reflected in the Title Report (collectively referred to
                        hereinafter as the "Title Documents");

                4.1.3   A list of all contracts, including service contracts,
                        warranties, management, maintenance, leasing commission
                        or other agreements affecting the Property, if any,
                        together with copies of the same;

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

                4.1.5   A schedule of all current or pending litigation with
                        respect to the Property or any part, thereof, if any,
                        together with a brief description of each such
                        proceeding;

                4.1.6   Operating statements for the most recent two full
                        calendar years and monthly operating statements for the
                        calendar year to date, or if shorter, for any periods
                        during which Seller was owner of the Real Property;

                4.1.7   An inventory of all personal property located on the
                        Property, used in the maintenance of the Property or
                        stored for future use at the Property and an inventory
                        of all furniture and appliances used in the units, if
                        any;

                4.1.8   A current rent roll which may include, among other
                        things: (1) the name of the Tenant, (2) the number of
                        rentable square feet in Tenant's premises as set forth
                        in Tenant's Lease, (3) the current monthly base rental
                        payable by such Tenant, (4) the term of the Lease, (5)
                        any available options for the Tenant under the Lease;
                        and (6) the amount of any security deposit;

                4.1.9   All environmental, physical or mechanical reports
                        prepared by third parties in Seller's possession
                        relating to the Property;

                                       4
<PAGE>
                4.1.10  Copies of all Leases presently in effect with respect to
                        the Real Property, together with any amendments or
                        modifications thereto. All Leases, amendments and
                        modifications with respect to Cisco, InfoEdge and
                        Rubbermaid are listed on the attached Exhibit I.

                4.1.11  An aging report showing, with respect to each Tenant of
                        the Real Property, the date through which such Tenant
                        has paid rent and a Tenant by Tenant monthly aging
                        report for the preceding twelve (12) months;

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

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

        4.2     Seller shall make the following available for inspection by
                Buyer during ordinary business hours at Seller's management
                office:

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

                4.2.2   The tenant files, books and records relating to the
                        ownership and operation of the Property.

5.      Inspections.

        5.1     Buyer shall have a temporary non-exclusive license to enter and
                conduct non-invasive feasibility, environmental, and physical
                studies collectively of the Property that Buyer may deem
                necessary or advisable (the "Inspections") at any time during
                the Inspection Period, on the terms set forth in this Article 5.
                Buyer shall not conduct invasive testing of any kind (including
                without limitation, "Phase II" environmental testing) without
                Seller's consent. Buyer's right to conduct the Inspections shall
                be subject to rights of Tenants and shall be subject to such
                conditions as may be reasonably imposed by the Seller in order
                to avoid disruption at the Property. Notwithstanding the
                foregoing, if, after the expiration of the Due Diligence Period,
                Buyer elects to go forward with the transaction herein, Buyer
                shall be allowed continued access to the Property until Close of
                Escrow subject to the prior approval of Seller, which shall not
                be unreasonably withheld and pursuant to the terms of Section
                5.2.

                                       5
<PAGE>
        5.2     Buyer must arrange all Inspections of the Property with Seller
                at least two (2) business days in advance of any Inspections.
                Buyer and its agents shall maintain equipment and other
                materials in an orderly manner while they are located on the
                Property and to maintain them in locations specified by Seller.
                Buyer agrees to remove all debris and trash resulting from the
                Inspections on a daily basis and to remove all equipment and
                other materials used by Buyer or its agents as soon as the
                activity for which such equipment and other materials are used
                is completed. Buyer and its agents shall take all appropriate
                measures for the safety of persons and property on the Property
                and shall comply with all applicable legal requirements. Buyer
                shall restore any damage to the Property resulting from the
                Inspections including but not limited to repair of surface
                openings resulting from tests. Buyer shall promptly provide to
                Seller a copy of all reports and test results prepared or
                furnished in connection with the Inspections.

        5.3     In the event that the Inspections show any fact, matter or
                condition to exist with respect to the Property that is
                unacceptable to Buyer, in Buyer's sole subjective discretion,
                then Buyer shall be entitled, as its sole and exclusive remedy,
                to (1) terminate this Agreement, or (2) waive the objection, and
                close the transaction as otherwise contemplated herein. Buyer
                agrees to promptly discharge any liens that may be imposed
                against the Property as a result of the Inspections and to
                defend, indemnify and hold Seller harmless from all, claims,
                suits, losses, costs, expenses (including without limitation
                court costs and attorneys' fees), liabilities, judgments and
                damages incurred by Seller as a result of any Inspections.

        5.4     Buyer shall indemnify, save and hold Seller and Seller's
                officers, agents, employees, directors, trustees, invitees,
                successors, and assigns (collectively "Indemnitees") harmless
                against all losses, costs, expenses, liabilities, claims,
                litigation, demands, proceedings and damages (including but not
                limited to attorney's fees) suffered or incurred by Seller or
                any such Indemnitees arising out of and limited to the
                Inspections, provided that Buyer shall not incur any liability
                due to its discovery, without exacerbation of the condition of
                any Hazardous Materials or other circumstances at the Property.
                Buyer waives any claims against Seller arising out of the
                Inspections or this Agreement other than claims that are solely
                caused by or solely arise from any negligent or willful
                misconduct of Seller. Buyer hereby assume all responsibility for
                claims against Seller by the contractors, subcontractors,
                employees, and agents of Buyer other than claims that are solely
                caused by or solely arise from Seller's negligence or willful
                misconduct.

        5.5     Buyer shall, during the term of this Agreement and at all times
                during which access is available to it, require its
                subcontractors and agents, to maintain insurance, in form and
                substance reasonably satisfactory to Seller, with insurance
                companies acceptable to Seller, the following insurance:
                Comprehensive General Liability or Commercial General Liability
                Insurance, with limits of not less than One Million Dollars
                ($1,000,000) combined single limit per occurrence and not less
                than Two Million Dollars ($2,000,000) on a general aggregate
                basis, for

                                       6
<PAGE>
                bodily injury, death and property damage, and Excess (umbrella)
                liability insurance with liability insurance with limits of not
                less than Five Million Dollars ($5,000,000) per occurrence. Each
                policy of insurance shall name Seller as an additional insured.
                Further, each policy of insurance shall state that such policy
                is primary and noncontributing with any insurance carried by
                Seller. Such policy shall contain a provision that the naming of
                the additional insured shall not negate any right the additional
                insured would have had as a claimant under the policy if not so
                named and shall contain severability of interest and
                cross-liability clauses. A certificate, together with any
                endorsements to the policy required to evidence the coverage
                which is to be obtained hereunder, shall be delivered to Seller
                prior to entry on the Property. The certificate shall expressly
                provide that no less than thirty (30) days prior written notice
                shall be given Seller in the event of any material alteration to
                or cancellation of the coverages evidenced by said certificate.
                A renewal certificate for each of the policies required in this
                Section shall be delivered to Seller not less than thirty (30)
                days prior to the expiration date of the term of such policy.
                Any policies required by the provisions of this Section may be
                made a part of a blanket policy of insurance with a "per
                project, per location endorsement" so long as such blanket
                policy contains all of the provisions required herein and does
                not reduce the coverage, impair the rights of the other party to
                this Agreement or negate the requirements of this Agreement.

        5.6     During the course of its performance of the Inspections, Buyer
                will acquire knowledge concerning the Property or Seller, or
                knowledge of other matters of a sensitive business nature
                (collectively, "Privileged Information"). Except as described
                below, neither Buyer nor its agents shall disclose to any third
                party, publicize or suffer or permit any of their respective
                employees to so disclose or publicize any such Privileged
                Information, other than to consultants, attorneys and agents as
                necessary for the Buyer's inspection and analysis of the
                Property. In the event that Buyer believes in good faith that it
                is required by any legal requirement to disclose any such
                Privileged Information, then Buyer shall immediately notify
                Seller of such belief and the reasons for such belief. If Seller
                within 10 days after receipt of such notice, advises the party
                that sent the notice that Seller shall itself disclose the
                information, then Buyer shall not make such disclosure (unless
                either such party reasonably believes that it must disclose such
                information by law). If Buyer reasonably believes that such
                disclosure is required to be made in less than the 10-day
                period, then the notice to Seller shall so state and Seller's
                time to respond will be reduced accordingly.

        5.7     The obligations of Buyer described in this Article shall survive
                the Closing or any termination of this Agreement.

6.      Approval.

        6.1     Buyer shall have fifteen (15) days from the Effective Date
                ("Inspection Period") to approve or disapprove the Inspections.
                If Buyer shall fail to notify Seller and Escrow Holder of its
                disapproval of the Inspections in writing within the

                                       7
<PAGE>
                Inspection Period, the condition of the Property shall be deemed
                approved. If Buyer shall disapprove the Inspections within the
                Inspection Period this Agreement and the Escrow shall thereupon
                be terminated. Buyer shall thereafter not be entitled to
                purchase the Property, Seller shall not be obligated to sell the
                Property to Buyer and the parties shall be relieved of any
                further obligation to each other with respect to the Property,
                except as provided in Paragraph 5.

        6.2     Notwithstanding anything to the contrary contained herein, Buyer
                hereby agrees that, in the event this Agreement is terminated
                for any reason, then Buyer shall promptly and at its sole
                expense return to Seller all Due Diligence Items which have been
                delivered by Seller to Buyer in connection with the Inspections,
                along with copies of all reports, drawings, plans, studies,
                summaries, surveys, maps and other data prepared by third
                parties relating to the Property, subject to restrictions on
                Buyer's ability to make any such materials available to Seller
                that are imposed in any agreement with a third party consultant
                preparing any such reports or materials ("Buyer's Reports");
                provided, however, that delivery of such copies and information
                by Buyer shall be without warranty or representation whatsoever,
                express or implied, including without limitations, any warranty
                or representation as to ownership, accuracy, adequacy or
                completeness thereof or otherwise. Buyer shall cooperate with
                Seller at no expense to Buyer in order to obtain a waiver of any
                such restrictions.

        6.3     Contracts. On or before the end of the Inspection Period, Buyer
                will designate in a written notice to Seller which Contracts
                Buyer will assume and which Contracts must be terminated by
                Seller at Closing. Taking into account any credits or prorations
                to be made pursuant to this Agreement for payments coming due
                after Closing but accruing prior to Closing, Buyer will assume
                the obligations arising from and after Closing under those
                Contracts which Buyer has designated will not be terminated. At
                Buyer's expense, Seller shall terminate at Closing all Contracts
                that are not so assumed.

7.      Escrow.

        7.1     Opening.

                7.1.1   The purchase and sale of the Property shall be
                        consummated through an escrow ("Escrow") to be opened
                        with LandAmerica Commercial Services, attention Gale
                        Hunt, 1920 Main Street, 12th Floor, Irvine, California
                        92614 ("Escrow Holder" or the "Title Company") within
                        two (2) business days after the Effective Date. Escrow
                        shall be deemed to be opened as of the date fully
                        executed copies (or counterparts) of this Agreement are
                        delivered to Escrow Holder by Buyer and Seller ("Opening
                        of Escrow"). This Agreement shall be considered as the
                        Escrow instructions between the parties, with such
                        further instructions as Escrow Holder shall require in
                        order to clarify its duties and responsibilities. If
                        Escrow Holder shall require further Escrow instructions,
                        Escrow Holder may prepare such instructions on its usual
                        form. Such further instructions shall be promptly

                                       8
<PAGE>
                        signed by Buyer and Seller and returned to Escrow Holder
                        within three (3) business days of receipt thereof. In
                        the event of any conflict between the terms and
                        conditions of this Agreement and such further
                        instructions, the terms and conditions of this Agreement
                        shall control.

        7.2     Closing.

                7.2.1   Escrow shall close ("Closing") on the fifteenth (15th)
                        day following the end of the Inspection Period or such
                        earlier date as shall be mutually agreed to by the
                        parties (the "Original Closing Date"). The Original
                        Closing Date may be extended for an additional fifteen
                        (15) days ("Extension Period") by Buyer upon delivery of
                        written notice to Seller of extension and payment to
                        Seller, by wire transfer on or before the Original
                        Closing Date, of a Five Hundred Thousand Dollar
                        ($500,000) extension fee ("Extension Fee"). The
                        Extension Fee will become part of the Deposit and
                        applicable to the Purchase Price at Closing. The
                        Extension Fee shall be deemed earned by Seller and
                        non-refundable to Buyer upon payment to the Seller,
                        notwithstanding Buyer's failure to or decision not to
                        close. Closing must occur, if at all, no later than the
                        dates set forth herein or this Agreement shall terminate
                        without further action of the parties and neither party
                        shall have any further obligations to the other
                        hereunder except Buyer's indemnification under Section
                        5.

        7.3     Buyer Required to Deliver.

                Buyer shall deliver to Escrow the following:

                7.3.1   On the Effective Date, the Initial Deposit;

                7.3.2   Within two (2) business days after the later of the end
                        of the Inspection Period or Buyer's receipt of Seller
                        10.2.2 Approval, the Additional Deposit;

                7.3.3   On or before the Original Closing Date, the Extension
                        Fee if Buyer desires an extension of the closing date;

                7.3.4   On or before Closing, the Purchase Price, subject to the
                        closing adjustments, credits and prorations contemplated
                        hereby;

                7.3.5   On or before Closing, such other documents as Title
                        Company may reasonably require from Buyer in order to
                        issue the Title Policy;

                7.3.6   An original counterpart executed by Buyer of an
                        assignment and assumption agreement (the "Assignment and
                        Assumption Agreement") in substantially the form
                        attached hereto as Exhibit C, whereby Seller assigns and
                        conveys to Buyer all of Seller's right, title and
                        interest in and Buyer assumes all of Seller's
                        obligations under, the Leases and the Contracts and the
                        Permits;

                                       9
<PAGE>
                7.3.7   A counterpart closing statement (the "Closing
                        Statement") setting forth the Purchase Price and all
                        amounts charged against Buyer pursuant to Section 7.7 of
                        this Agreement.

        7.4     Seller Required to Deliver.

                On or before Closing, Seller shall deliver to Escrow the
                following:

                7.4.1   A duly executed and acknowledged special warranty deed,
                        conveying fee title to the Property in favor of Buyer
                        (the "Deed");

                7.4.2   An executed certificate of non-foreign status;

                7.4.3   A bill of sale of the Personal Property, if any, without
                        warranty, in favor of Buyer and duly executed by Seller,
                        in substantially the form attached hereto as Exhibit D;

                7.4.4   An original counterpart executed by Seller of the
                        Assignment and Assumption Agreement;

                7.4.5   A counterpart Closing Statement setting forth the
                        Purchase Price and all amounts charged against Seller
                        pursuant to Section 7.7 of this Agreement;

                7.4.6   Such other documents as Title Company may reasonably
                        require from Seller in order to issue the Title Policy;

                7.4.7   A letter from Seller addressed to each Tenant informing
                        such Tenant of the change in ownership and directing
                        that future rent payments be made to Buyer;

                7.4.8   All keys to all buildings and other improvements located
                        on the Property, combinations to any safes thereon, and
                        security devices therein in Seller's possession; and

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

                                       10
<PAGE>
        7.5     Buyer's Costs.

                Buyer shall pay the following:

                7.5.1   One-half (1/2) of Escrow Holder's fees, costs and
                        expenses;

                7.5.2   The cost of recording any documents relating to Buyer's
                        financing;

                7.5.3   Title Company's premium for endorsements to the Title
                        Policy and any extended ALTA coverage; and

                7.5.4   All other costs customarily borne by Buyers of real
                        property in the county in which the Property is
                        situated;

        7.6     Seller's Costs.

                Seller shall pay the following:

                7.6.1   One-half (1/2) of Escrow Holder's fees, costs and
                        expenses;

                7.6.2   All transfer taxes and costs of recording the Deed;

                7.6.3   Title Company's premium for a basic Title Policy,
                        exclusive of the premium for any endorsements or
                        extended ALTA coverage; and

                7.6.4   All other costs not itemized above which are customarily
                        borne by sellers of real property in the county in which
                        the Property is situated.

        7.7     Prorations.

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

                        (a)     Taxes and Assessments All non-delinquent real
                                property taxes, assessments and other
                                governmental impositions of any kind or nature,
                                including, without limitation, any special
                                assessments or similar charges (collectively,
                                "Taxes"), which relate to the tax year within
                                which the Closing occurs based upon the actual
                                number of days in the tax year. With respect to
                                any portion of the Taxes which are payable by
                                any Tenant directly to the authorities, no
                                proration or adjustment shall be made. The
                                proration for Taxes shall be based upon the most
                                recently issued tax bill for the Property, and
                                shall be calculated based upon the maximum early
                                payment discount available. The prorations for
                                taxes and assessments which are made at Closing
                                shall be final, and not

                                       11
<PAGE>
                                subject to reproration after Closing. Upon the
                                Closing, Buyer shall be responsible for real
                                estate taxes and assessments on the Property
                                payable from and after the Closing. In no event
                                shall Seller be charged with or be responsible
                                for any increase in the taxes or assessments on
                                the Property resulting from the sale of the
                                Property or from any improvements made or leases
                                entered into after the Closing. With respect to
                                all periods for which Seller has paid Taxes,
                                Seller hereby reserves the right to institute or
                                continue any proceeding or proceedings for the
                                reduction of the assessed valuation of the
                                Property, and, in its sole discretion, to settle
                                the same. Seller shall have sole authority to
                                control the progress of, and to make all
                                decisions with respect to, such proceedings but
                                shall provide Buyer with copies of all
                                communications with the taxing authorities. All
                                net tax refunds and credits attributable to any
                                period prior to the Closing which Seller has
                                paid or for which Seller has given a credit to
                                Buyer shall belong to and be the property of
                                Seller, provided, however, that any such refunds
                                and credits that are the property of Tenants
                                under Leases shall be promptly remitted by
                                Seller directly to such Tenants or to Buyer for
                                the credit of such Tenants. All net tax refunds
                                and credits attributable to any period
                                subsequent to the Closing shall belong to and be
                                the property of Buyer. Buyer agrees to cooperate
                                with Seller in connection with the prosecution
                                of any such proceedings and to take all steps,
                                whether before or after the Closing, as may be
                                necessary to carry out the intention of this
                                subparagraph, including the delivery to Seller,
                                upon demand, of any relevant books and records,
                                including receipted tax bills and cancelled
                                checks used in payment of such taxes, the
                                execution of any and all consent or other
                                documents, and the undertaking of any acts
                                necessary for the collection of such refund by
                                Seller. Buyer agrees that, as a condition to the
                                transfer of the Property by Buyer, Buyer will
                                cause any transferee to assume the obligations
                                set forth herein.

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

                                       12
<PAGE>
                                Tenants after the Closing shall first be applied
                                to the month in which the Closing occurs, then
                                to any rent due to Buyer for the period after
                                Closing and finally to any rent due to Seller
                                for the period prior to Closing; provided,
                                however, notwithstanding the foregoing, if
                                Seller collects any payments from Tenants after
                                Closing through its own collection efforts,
                                Seller may first apply such payments to rent due
                                the Seller for the period prior to Closing.

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

                        (d)     Operating Expenses All operating expenses
                                (including all charges under the service
                                contracts and agreements assumed by Buyer) shall
                                be prorated, and as to each service provider,
                                operating expenses payable or paid to such
                                service provider in respect to the billing
                                period of such service provider in which the
                                Closing occurs (the "Current Billing Period"),
                                shall be prorated on a per diem basis based upon
                                the number of days in the Current Billing Period

                                       13
<PAGE>
                                prior to the Closing and the number of days in
                                the Current Billing Period from and after the
                                Closing, and assuming that all charges are
                                incurred uniformly during the Current Billing
                                Period. If actual bills for the Current Billing
                                Period are unavailable as of the Closing, then
                                such proration shall be made on an estimated
                                basis based upon the most recently issued bills,
                                subject to readjustment upon receipt of actual
                                bills.

                        (e)     Security Deposits; Prepaid Rents. Prepaid
                                rentals and other tenant charges and security
                                deposits (including any portion thereof which
                                may be designated as prepaid rent) under Tenant
                                Leases, if and to the extent that such deposits
                                are in Seller's actual possession or control and
                                have not been otherwise applied by Seller to any
                                obligations of any Tenants under the Tenant
                                Leases, shall be credited against the Purchase
                                Price, and upon the Closing, Buyer shall assume
                                full responsibility for all security deposits to
                                be refunded to the Tenants under the Tenant
                                Leases (to the extent the same are required to
                                be refunded by the terms of such Tenant Leases
                                or applicable). In the event that any security
                                deposits are in the form of letters of credit or
                                other financial instruments (the "Non-Cash
                                Security Deposits") Buyer shall have such
                                financial instruments transferred after Closing.
                                Seller will cooperate with Buyer after the
                                Closing to have Buyer named as beneficiary under
                                the Non-Cash Security Deposits; provided that
                                such cooperation shall be at no cost or expense
                                to Seller. Buyer will not receive a credit
                                against the Purchase Price for such security
                                deposits.

                        (f)     Leasing Costs. Seller shall receive a credit at
                                the Closing for all leasing costs, including
                                tenant improvement costs and allowances, and its
                                pro-rata leasing commissions, previously paid by
                                Seller in connection with any Lease or
                                modification to an existing tenant Lease which
                                was entered into after the Effective Date and
                                which is approved or deemed approved by Buyer
                                pursuant to this Agreement, which approval
                                included approval of the tenant improvement
                                costs. The Seller's pro-rata share shall be
                                equal to a fraction which has as its numerator
                                the number of months left in the base term of
                                the Lease after the Closing and which has as its
                                denominator the number of months in the base
                                term of the Lease. Seller shall credit to Buyer
                                at Closing the cost of all tenant improvement
                                allowances, leasing commissions, free rent, and
                                other tenant inducements or benefits with
                                respect to the premises leased as of the
                                Effective Date by the Tenants pursuant to the
                                Tenant Leases in effect as of the Effective
                                Date, to the extent that such improvement
                                allowances and leasing commissions are unpaid or
                                that such fee rent period has not occurred as of
                                the Closing. In consideration of such credit,
                                Buyer shall assume all obligations,

                                       14
<PAGE>
                                risks and liabilities for paying all leasing
                                commission, honoring all fee rent and other
                                tenant inducements and completing all tenant
                                improvements and related work on the premises
                                including, but not limited to, those matters
                                referenced on Exhibit E hereto.

                7.7.2   Calculation; Reproration. Prior to Closing the parties
                        shall jointly prepare an estimated closing statement
                        which shall set forth the costs payable under sections
                        7.5 and 7.6 and the prorations and credits provided for
                        in section 7.7.1 and elsewhere in this Agreement. Any
                        item which cannot be finally prorated because of the
                        unavailability of information shall be tentatively
                        prorated on the basis of the best data then available
                        and adjusted when the information is available in
                        accordance with this subparagraph; provided, however,
                        that there shall be no reproration for taxes and
                        assessments. The estimated closing statement as adjusted
                        as aforesaid and approved in writing by the parties
                        shall be referred to herein as the "Closing Statement".
                        If the prorations and credits made under the Closing
                        Statement shall prove to be incorrect or incomplete for
                        any reason, then either party shall be entitled to an
                        adjustment to correct the same; provided, however, that
                        there shall be no reproration for taxes and assessments;
                        and further provided that any adjustment shall be made,
                        if at all, within sixty (60) days after the Closing
                        (except with respect to CAM Charges, in which case such
                        adjustment shall be made within thirty (30) days after
                        the information necessary to perform such adjustment is
                        available), and if a party fails to request an
                        adjustment to the Closing Statement by a written notice
                        delivered to the other party within the applicable
                        period set forth above (such notice to specify in
                        reasonable detail the items within the Closing Statement
                        that such party desires to adjust and the reasons for
                        such adjustment), then the prorations and credits set
                        forth in the Closing Statement shall be binding and
                        conclusive against such party.

                7.7.3   Items Not Prorated. Seller and Buyer agree that (a) on
                        the Closing, the Property will not be subject to any
                        financing arranged by Seller; (b) none of the insurance
                        policies relating to the Property will be assigned to
                        Buyer and Buyer shall responsible for arranging for its
                        own insurance as of the Closing; and (c) utilities,
                        including telephone, electricity, water and gas, shall
                        be read on the Closing and Buyer shall be responsible
                        for all the necessary actions needed to arrange for
                        utilities to be transferred to the name of Buyer on the
                        Closing, including the posting of any required deposits
                        and Seller shall be entitled to recover and retain from
                        the providers of such utilities any refunds or
                        overpayments to the extent applicable to the period
                        prior to the Closing, and any utility deposits which it
                        or its predecessors may have posted. Accordingly, there
                        will be no prorations for debt service, insurance or
                        utilities. In the event a meter reading is unavailable
                        for any particular utility, such utility shall be
                        prorated in the manner provided in subparagraph (1)(e)
                        above.

                                       15
<PAGE>
                7.7.4   Indemnification. Buyer and Seller shall each indemnify,
                        protect, defend and hold the other harmless from and
                        against any claim in any way arising from the matters
                        for which the other receives a credit or otherwise
                        assumes responsibility pursuant to this Section.

                7.7.5   Survival. This Section 7.7 shall survive the Closing.

        7.8     Determination of Dates of Performance.

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

                7.8.1   The date of Opening of Escrow pursuant to Paragraph 7.1;

                7.8.2   The date of receipt of the Title Report by Buyer;

                7.8.3   The date by which title must be approved by Buyer
                        pursuant to Paragraph 3;

                7.8.4   The date by which the Inspections must be approved by
                        Buyer pursuant to Paragraph 5.1;

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

                7.8.6   The date of Closing pursuant to Paragraph 7.2.

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

8.      Representations, Warranties, and Covenants.

        8.1     Representations of Seller. Each entity referred to herein as a
                Seller hereby represents and warrants as of the date hereof to
                Buyer as follows:

                8.1.1   TREIT-AMBEROAKS, LP is a limited partnership duly formed
                        and validly existing under the laws of the State of
                        Texas. Each of NNN Amberoaks 1, NNN Amberoaks 2 and NNN
                        Amberoaks 3 is a limited liability company duly formed
                        and validly existing under the laws of the

                                       16
<PAGE>
                        State of Texas. Subject to receipt of the approval
                        described in Section 10.2.2, Seller has full power and
                        authority to enter into this Agreement, to perform this
                        Agreement and to consummate the transactions
                        contemplated hereby. This Agreement is a legal, valid
                        and binding obligation of Seller, enforceable against
                        Seller in accordance with its terms, subject to the
                        effect of applicable bankruptcy, insolvency,
                        reorganization, arrangement, moratorium or other similar
                        laws affecting the rights of creditors generally.

                8.1.2   Seller is not a "foreign person" within the meaning of
                        Section 1445(f) of the Internal Revenue Code of 1986, as
                        amended (the "Code").

                8.1.3   The list of leases attached hereto as Exhibit B
                        represents all of the leases that affect the Property as
                        of May 4, 2006.

                8.1.4   Except as set forth on any schedule of litigation
                        delivered pursuant to Paragraph 4.1.5, to the best of
                        Seller's knowledge there are no actions, suits or
                        proceedings pending, or, threatened against Seller and
                        affecting any portion of the Real Property, at law or in
                        equity, or before or by any federal, state, municipal,
                        or other governmental court, department, commission,
                        board, bureau, agency, or instrumentality, domestic or
                        foreign.

                8.1.5   Seller has not received any notice of any violations of
                        any ordinance, regulation, law, or statute of any
                        governmental agency pertaining to the Real Property or
                        any portion thereof.

                8.1.6   To Seller's knowledge, there are no presently pending or
                        contemplated proceedings to condemn the Real Property or
                        any part of it.

                8.1.7   Seller has no knowledge of nor received any written
                        notice of violation issued pursuant to any environmental
                        law with respect to the Real Property or any use or
                        condition thereof other than the notice listed on the
                        attached Exhibit F.

                        In making the foregoing representations and warranties,
                we have not made or undertaken to make any investigation as to
                factual matters or as to the accuracy or completeness of any
                representation, warranty, data or any other information related
                thereto and hereby disclaim liability for any unintentional
                misstatement. Whenever the term "to the best of Seller's
                knowledge" or similar language is used herein with respect to
                the existence or absence of facts, it signifies that we have not
                undertaken any independent investigation of facts, but instead
                base our opinion in sole reliance upon the current actual
                knowledge of Rick Burnett and Thomas C. Young and we disclaim
                any obligation to conduct any independent investigation with
                respect to such matters.

                                       17
<PAGE>
        8.2     Approval of Property; Limitations on Seller Representations and
                Warranties.

                8.2.1   Seller makes no representations or warranties as to the
                        truth, accuracy, completeness, methodology of
                        preparation or otherwise concerning any engineering or
                        environmental reports, audits, the materials prepared by
                        the Seller, or any other materials, data or other
                        information whatsoever supplied to Buyer in connection
                        with Buyer's inspection of the Property. It is the
                        parties' express understanding and agreement that such
                        materials are provided only for Buyer's convenience in
                        making its own examination and determination prior to
                        the expiration of the Inspection Period as to whether it
                        wishes to purchase the Property, and, in doing so, Buyer
                        shall rely exclusively on its own independent
                        investigation and evaluation of every aspect of the
                        Property and not on any materials supplied by Seller.
                        Except as may be specifically provided elsewhere in this
                        Agreement, Buyer expressly disclaims any intent to rely
                        on any such materials provided to it by Seller in
                        connection with its inspection and agrees that it shall
                        rely solely on its own independently developed or
                        verified information. Except with respect to all
                        obligations in this Agreement (including without
                        limitation Seller's express representations and
                        warranties) that are expressly stated to survive
                        Closing, the indemnity provisions contained in the
                        documents delivered in connection with the closing of
                        the transactions contemplated by this Agreement
                        (collectively, the "Surviving Obligations"), Buyer
                        hereby releases Seller and its agents, representatives,
                        and employees from any and all claims, demands, and
                        causes of action, past, present, and future that Buyer
                        may have relating to (a) the condition of the Property
                        at any time, before or after the Closing, including
                        without limitation, the presence of any hazardous
                        materials, or (b) any other matter pertaining to the
                        Property. This release shall survive the Closing or the
                        termination of this Agreement.

                8.2.2   In the event of any breach by Seller of any of the
                        preceding representations or warranties or any other
                        breach by Seller of any other provision of this
                        Agreement which is discovered by Buyer prior to Closing
                        and which is not cured by Seller within ten (10)
                        business days of Seller's receipt of written notice,
                        Buyer's sole remedy shall be to elect in writing to
                        terminate this Agreement and receive a refund of the
                        Deposit or waive such breach and proceed with the
                        Closing. In the event of any material breach by Seller
                        of any of such representations or warranties or any
                        other material breach by Seller of any other provision
                        of this Agreement or any agreement delivered in
                        connection herewith discovered after Closing, Seller
                        shall be liable only for direct and actual damages
                        suffered by Buyer on account of Seller's breach, up to
                        the applicable limits described hereunder, and shall in
                        no event be liable for consequential or punitive
                        damages. Any liability of Seller hereunder for breach of
                        any such representations or warranties shall be limited
                        to (a) claims in excess of an aggregate of Fifty
                        Thousand Dollars ($50,000.00), and (b) a maximum

                                       18
<PAGE>
                        aggregate cap of Two Hundred Fifty Thousand Dollars
                        ($250,000.00). Notice of such claim must be delivered to
                        Seller in writing within three (3) months of Closing. In
                        no event shall Seller be liable for any indirect or
                        consequential damages on account of Seller's breach of
                        any representation or warranty contained in this
                        Agreement. Additionally, notwithstanding the foregoing,
                        if Buyer becomes aware prior to the Closing that any
                        representation or warranty hereunder is untrue, or any
                        covenant or condition to Closing has not been fulfilled
                        or satisfied (if not otherwise waived by Buyer), and
                        Buyer nonetheless proceeds to close on the purchase of
                        the Property, then Buyer shall be deemed to have
                        irrevocably and absolutely waived, relinquished and
                        released all rights and claims against Seller for any
                        damage or other loss arising out of or resulting from
                        such untrue representation or warranty or such
                        unfulfilled or unsatisfied covenant or condition.
                        Seller's representations and warranties set forth in
                        Section 8.1 shall survive the Closing for a period of
                        three (3) months.

                8.2.3   Approval of Property. The consummation of the purchase
                        and sale of the Property pursuant to this Agreement
                        shall be deemed Buyer's acknowledgement that it has had
                        an adequate opportunity to make such legal, factual and
                        other inspections, inquiries and investigations as it
                        deems necessary, desirable or appropriate with respect
                        to the Property. Such inspections, inquiries and
                        investigations of Buyer shall be deemed to include, but
                        shall not be limited to, any leases and contracts
                        pertaining to the Property, the physical components of
                        all portions of the Property, the physical condition of
                        the Property, such state of facts as an accurate survey,
                        environmental report and inspection would show, the
                        present and future zoning ordinance, ordinances,
                        resolutions. Buyer shall not be entitled to and shall
                        not rely upon, Seller or Seller's agents with regard to,
                        and Seller will not make any representation or warranty
                        with respect to: (i) the quality, nature, adequacy or
                        physical condition of the Property including, but not
                        limited to, the structural elements, foundation, roof,
                        appurtenances, access, landscaping, parking facilities,
                        or the electrical, mechanical, HVAC, plumbing, sewage or
                        utility systems, facilities, or appliances at the
                        Property, if any; (ii) the quality, nature, adequacy or
                        physical condition of soils or the existence of ground
                        water at the Property; (iii) the existence, quality,
                        nature, adequacy or physical condition of any utilities
                        serving the Property; (iv) the development potential of
                        the Property, its habitability, merchantability, or the
                        fitness, suitability, or adequacy of the Property for
                        any particular purpose; (v) the zoning or other legal
                        status of the Property; (vi) the Property or its
                        operations' compliance with any applicable codes, laws,
                        regulations, statutes, ordinances, covenants, conditions
                        or restrictions of any governmental or
                        quasi-governmental entity or of any other person or
                        entity; (vii) the quality of any labor or materials
                        relating in any way to the Property; or (viii) the
                        condition of title to the Property or the nature, status
                        and extent of any right-of-way, lease, right of
                        redemption, possession,

                                       19
<PAGE>
                        lien, encumbrance, license, reservation, covenant,
                        condition, restriction, or any other matter affecting
                        the Property except as expressly set forth in this
                        Agreement. EXCEPT AS EXPRESSLY PROVIDED IN THIS
                        AGREEMENT AND/OR THE DEED, SELLER HAS NOT, DOES NOT, AND
                        WILL NOT MAKE ANY WARRANTIES OR REPRESENTATIONS WITH
                        RESPECT TO THE PROPERTY AND SELLER SPECIFICALLY
                        DISCLAIMS ANY OTHER IMPLIED WARRANTIES OR WARRANTIES
                        ARISING BY OPERATION OF LAW, INCLUDING, BUT IN NO WAY
                        LIMITED TO, ANY WARRANTY OF CONDITION, MERCHANTABILITY,
                        HABITABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OR
                        USE. FURTHERMORE, SELLER HAS NOT, DOES NOT, AND WILL NOT
                        MAKE ANY REPRESENTATION OR WARRANTY WITH REGARD TO
                        COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION,
                        OR LAND USE LAWS, RULES, REGULATIONS, ORDERS, OR
                        REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE
                        PERTAINING TO THE HANDLING, GENERATING, TREATING,
                        STORING OR DISPOSING OF ANY HAZARDOUS WASTE OR SUBSTANCE
                        INCLUDING, WITHOUT LIMITATION, ASBESTOS, PCB AND RADON.
                        BUYER ACKNOWLEDGES THAT BUYER IS A SOPHISTICATED BUYER
                        FAMILIAR WITH THIS TYPE OF PROPERTY AND THAT, SUBJECT
                        ONLY TO THE EXPRESS WARRANTIES SET FORTH IN THIS
                        AGREEMENT AND/OR CLOSING DOCUMENTS, BUYER WILL BE
                        ACQUIRING THE PROPERTY "AS IS AND WHERE IS, WITH ALL
                        FAULTS," IN ITS PRESENT STATE AND CONDITION, SUBJECT
                        ONLY TO NORMAL WEAR AND TEAR AND BUYER SHALL ASSUME THE
                        RISK THAT ADVERSE MATTERS AND CONDITIONS MAY NOT HAVE
                        BEEN REVEALED BY BUYER'S INSPECTIONS AND INVESTIGATIONS.
                        BUYER SHALL ALSO ACKNOWLEDGE AND AGREE THAT THERE ARE NO
                        ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS,
                        COLLATERAL TO OR AFFECTING THE PROPERTY BY SELLER, ANY
                        AGENT OF SELLER OR ANY THIRD PARTY. THE TERMS AND
                        CONDITIONS OF THIS PARAGRAPH SHALL SURVIVE THE CLOSING,
                        AND NOT MERGE WITH THE PROVISIONS OF ANY CLOSING
                        DOCUMENTS. SELLER SHALL NOT BE LIABLE OR BOUND IN ANY
                        MANNER BY ANY ORAL OR WRITTEN STATEMENTS,
                        REPRESENTATIONS OR INFORMATION PERTAINING TO THE
                        PROPERTY FURNISHED BY ANY REAL ESTATE BROKER, AGENT,
                        EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME ARE
                        SPECIFICALLY SET FORTH OR REFERRED TO IN THIS AGREEMENT.
                        EXCEPT WITH REGARD TO THE OBLIGATIONS EXPRESSLY SET
                        FORTH IN THIS AGREEMENT AND THE REPRESENTATIONS AND

                                       20
<PAGE>
                        WARRANTIES IN SECTION 8.1, BUYER HEREBY RELEASES SELLER
                        AND ITS AGENTS, REPRESENTATIVES AND EMPLOYEES FROM ANY
                        AND ALL LIABILITY RELATING TO THE CONDITION OF THE
                        PROPERTY BEFORE OR AFTER THE CLOSING AND ANY OTHER
                        MATTER RELATING TO THE PROPERTY, WHETHER KNOWN OR
                        UNKNOWN AT THE TIME OF THE CLOSING.

                8.2.4   Release. Except as expressly set forth in this Agreement
                        to the contrary and except for any claims arising under
                        the express representations, warranties or covenants of
                        Seller under this Agreement or under the indemnity
                        provisions of any document delivered in connection with
                        the closing of the transactions contemplated by this
                        Agreement, Buyer for itself and its agents, affiliates,
                        successors and assigns, hereby releases and forever
                        discharges Seller, and any party related to or
                        affiliated with Seller and their respective successors
                        and assigns (the "Seller Related Parties") from and
                        against any and all claims at law or equity which Buyer
                        or any party related to or affiliated with Buyer and
                        their respective successors and assigns (each a "Buyer
                        Related Party") whether known or unknown at the time of
                        this agreement, which Buyer or a Buyer Related Party has
                        or may have in the future, arising from or related to
                        any matter or thing relating to or in connection with
                        the Property, including but not limited to, the
                        documents and information referred to in this Agreement,
                        the leases and the tenants, the Loan, any construction
                        defects, errors or omissions in the design or
                        construction and arising out of the physical,
                        environmental, economic or legal condition of the
                        Property, including, without limitation, any claim for
                        indemnification or contribution arising under the
                        Comprehensive Environmental Response, Compensation, and
                        Liability Act (42 U.S.C. Section 9601, et. sm.) or any
                        similar federal, state or local statute, rule or
                        ordinance relating to liability of property owners or
                        operators for environmental matters. For the foregoing
                        purposes, Buyer hereby specifically waives the
                        provisions of Section 1542 of the California Civil Code
                        and any similar law of any other state, territory or
                        jurisdiction. Section 1542 provides:

                        A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
                        CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR
                        AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY
                        HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH
                        THE DEBTOR.

                                       21
<PAGE>
                        BUYER HEREBY SPECIFICALLY ACKNOWLEDGES THAT BUYER HAS
                        CAREFULLY REVIEWED THIS SUBSECTION AND DISCUSSED ITS
                        IMPORT WITH LEGAL COUNSEL AND THAT THE PROVISIONS OF
                        THIS SUBSECTION ARE A MATERIAL PART OF THIS AGREEMENT.

                        BUYER: _________________________

        8.3     INTENTIONALLY DELETED

        8.4     INTENTIONALLY DELETED

        8.5     Covenants of Seller. Seller hereby covenants as follows:

                8.5.1   At all times from the date hereof through the date of
                        Closing, Seller shall cause to be in force fire and
                        extended coverage insurance upon the Property, and
                        public liability insurance with respect to damage or
                        injury to persons or property occurring on the Property
                        in at least such amounts as are maintained by Seller on
                        the Effective Date;

                8.5.2   From the end of the Effective Date through the date of
                        Closing, Seller will not enter into any new lease with
                        respect to the Property, without Buyer's prior written
                        consent, which shall not be unreasonably withheld.
                        Exercise of a renewal option shall not be considered a
                        new lease. Any brokerage commission payable with respect
                        to a new lease shall be paid by Buyer. Further, Seller
                        will not modify any existing Lease covering space in the
                        Property without first obtaining the written consent of
                        Buyer which shall not be unreasonably withheld. Buyer
                        shall have five (5) business days from its receipt of
                        Seller's notice of a new lease in which to approve or
                        disapprove of any new lease for which it has a right to
                        consent. Failure to respond in writing within said time
                        period shall be deemed to be consent;

                8.5.3   From the Effective Date through the date of Closing,
                        Seller shall not sell, assign, or convey any right,
                        title or interest whatsoever in or to the Property, or
                        create or permit to attach any lien, security interest,
                        easement, encumbrance, charge, or condition affecting
                        the Property (other than the Permitted Exceptions)
                        without promptly discharging the same prior to Closing;

                8.5.4   Seller shall not, without Buyer's written approval, (a)
                        amend or waive any right under any Service Contract, or
                        (b) enter into any agreement of any type affecting the
                        Property that is not terminable on 30 days notice.

                                       22
<PAGE>
9.      Representations and Warranties of Buyer. Buyer hereby represents and
        warrants to Seller as follows:

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

10.     Conditions Precedent to Closing.

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

                10.1.1  All of the representations, warranties and agreements of
                        Seller set forth in this Agreement shall be true and
                        correct in all material respects as of the Effective
                        Date, and Seller shall not have on or prior to closing,
                        failed to meet, comply with or perform in any material
                        respect any conditions or agreements on Seller's part as
                        required by the terms of this Agreement.

                10.1.2  There shall be no material adverse change in the matters
                        reflected in the Title Report, and there shall not exist
                        any material adverse encumbrance or title defect
                        affecting the Property except for the Permitted
                        Exceptions or matters to be satisfied at Closing.

                10.1.3  Seller shall, no less than three (3) days prior to the
                        Closing, deliver to Buyer estoppel certificates for
                        tenants representing seventy percent (70%) of the square
                        feet which are leased by tenants as of the Effective
                        Date ("Estoppel Threshold"), which shall include (i)
                        Tenant Estoppels (as defined herein) for Cisco and
                        Rubbermaid (or its successors or assigns) or (ii) Tenant
                        Estoppels for Cisco and InfoEdge and a Seller Estoppel
                        (as defined herein) for Rubbermaid (or its successors or
                        assigns). Buyer and Seller agree that Seller may provide
                        and Buyer shall accept a Seller Estoppel if Seller
                        cannot obtain an estoppel pre-closing from Rubbermaid.
                        Seller shall, pre-closing, cooperate with Buyer in
                        obtaining, but shall not be obligated to obtain, any
                        subordination, non-disturbance and attornment agreement
                        requested by Buyer's lender. All estoppel certificates
                        shall be substantially in the form which such tenants
                        are required to provide pursuant to the terms of each
                        tenant's respective lease, or, at Seller's option, in
                        the form of Exhibit G attached hereto and incorporated
                        herein by this reference ("Tenant Estoppel"). In the
                        event Seller cannot for any reason obtain a tenant
                        estoppel letter from a tenant from whom an estoppel
                        letter is required, Seller, at its option, may deliver
                        to Buyer a Seller's (landlord) estoppel letter in the
                        form of Exhibit H attached hereto and

                                       23
<PAGE>
                        incorporated herein by this reference ("Seller
                        Estoppel"). Seller, in its sole discretion, will add
                        commercially reasonable content to the Tenant Estoppel,
                        as requested, to satisfy Buyer's lender. For purposes of
                        the foregoing sentence, the determination of
                        "commercially reasonable content" shall be determined by
                        Seller in its sole discretion. Seller's liability under
                        Seller's estoppel letters shall expire and be of no
                        further force or effect on the ninetieth (90th) day
                        following the Closing Date; provided, however, that if
                        Seller shall obtain an estoppel certificate from any
                        such tenant after delivery of such Seller's estoppel
                        letter with respect to a tenant, Seller's (landlord)
                        estoppel letter shall, as of the date of a tenant's
                        estoppel letter, be without further force or effect.
                        Seller's liability, under the Seller's estoppel
                        certificates shall automatically terminate and be of no
                        further force and effect upon satisfaction of the
                        Estoppel Threshold, irrespective of whether such tenant
                        estoppels are received before or after Closing. Seller
                        shall have no liability or responsibility for the
                        information set forth in the estoppel certificates
                        delivered by the tenants. Estoppel certificates shall be
                        deemed to satisfy this condition precedent unless they
                        disclose materially adverse matters and/or are
                        inconsistent with the documents delivered pursuant to
                        Section 4.1.10. Buyer shall notify Seller within five
                        (5) business days of receipt of a copy of the executed
                        estoppel certificate of its approval or disapproval and
                        the basis of such disapproval, if disapproved. If Buyer
                        disapproves of an estoppel certificate because of a
                        material, adverse matter disclosed therein, and Seller
                        is unable to obtain a reasonably acceptable estoppel
                        certificate prior to the Closing, but in no event later
                        than fifteen (15) days after Buyer's disapproval of
                        same, this Agreement shall terminate, Buyer shall
                        receive a refund of the Deposit and neither party shall
                        have any further obligation to the other except Buyer's
                        indemnification obligations under Paragraph 5.

        10.2    The obligations of Seller under this Agreement shall, at the
                option of Seller, be subject to the following conditions
                precedent:

                10.2.1  All of the representations, warranties and agreements of
                        Buyer set forth in this Agreement shall be true and
                        correct in all material respects as of the Effective
                        Date, and Seller shall not have on or prior to closing,
                        failed to meet, comply with or perform in any material
                        respect any conditions or agreements on Buyer's part as
                        required by the terms of this Agreement.

                10.2.2  Seller shall have received approval of the Sale from all
                        entities comprising Seller not later than seven (7)
                        business days following the end of the Inspection
                        Period. Upon receipt of such approval, Seller shall
                        immediately notify Buyer of such approval in writing
                        ("Seller's 10.2.2 Approval"). In the event Seller shall
                        not receive such approval, Seller shall provide Buyer
                        with written notice of such non-approval ("Seller's
                        10.2.2 Notice"), terminate the Agreement, and,
                        notwithstanding Section

                                       24
<PAGE>
                        2.1.1 of this Agreement, return the Deposit to Buyer
                        within two (2) business days after Seller's 10.2.2
                        Notice, and neither party shall have any further
                        obligations to the other hereunder except Buyer's
                        indemnification under Section 5. Further, within three
                        (3) business days of Buyer's receipt of Seller's 10.2.2
                        Notice, either Buyer or the Amber Oaks V Seller may
                        terminate the Amber Oaks V Agreement in which event
                        Buyer shall received from Amber Oaks V Seller a refund
                        of the deposit under the Amber Oaks V Agreement and
                        neither party shall have any other obligations to the
                        other under the Amber Oaks V Agreement.

        If any such condition is not fully satisfied by Closing, the party in
        whose favor the condition runs shall notify the other party and may
        terminate this Agreement by written notice whereupon this Agreement may
        be canceled, upon return of the Due Diligence Items and, thereafter,
        neither Seller nor Buyer shall have any continuing obligations
        hereunder; provided, however, that if Buyer notifies Seller of a failure
        to satisfy the conditions precedent set forth in Section 10.1, Seller
        may, within ten (10) days of receipt of Buyer's notice agree to satisfy
        the condition by written notice to Buyer, and Buyer shall thereupon be
        obligated to close the transaction provided Seller so satisfies such
        condition. Closing may be delayed by Seller for up to ten (10) days
        after Seller's receipt of Buyer's notice to allow Seller time to satisfy
        such conditions. If Seller fails to timely cure any condition set forth
        in Section 10.1, this Agreement shall be canceled, Buyer shall receive a
        refund of the Deposit and neither party shall have any further liability
        hereunder.

11.     Damage or Destruction Prior to Closing.

        In the event that the Property should be damaged by any casualty prior
        to the Closing, then if the cost of repairing such damage, as reasonably
        estimated by Seller, is:

        11.1    Less than One Million Dollars ($1,000,000), the Closing shall
                proceed as scheduled and any insurance proceeds shall be
                distributed to Buyer to the extent not expended by Seller for
                restoration Buyer shall receive a credit at Closing equal to the
                property insurance policy deductible reduced by any applicable
                payments made by Seller for restoration;

        or if said cost is:

        11.2    Greater than One Million Dollars ($1,000,000), then either
                Seller or Buyer may elect to terminate this Agreement, in which
                case the Buyer shall return the Due Diligence Items to Seller
                and only if Seller elects to terminate this Agreement, the
                Deposit shall be returned to the Buyer and neither party shall
                have any further obligation to the other except for Buyer's
                indemnification obligations under Paragraph 5. Should Buyer
                proceed to Closing, Buyer shall receive any insurance proceeds
                and a credit at Closing equal to the property insurance policy
                deductible reduced by any applicable payments made by Seller for
                restoration.

                                       25
<PAGE>
12.     Eminent Domain.

        12.1    If, before the Closing, proceedings are commenced for the taking
                by exercise of the power of eminent domain of all or a material
                part of the Property which, as reasonably determined by Buyer,
                would render the Property unacceptable to Buyer or unsuitable
                for Buyer's intended use, Buyer shall have the right, by giving
                notice to Seller within thirty (30) days after Seller gives
                notice of the commencement of such proceedings to Buyer, to
                terminate this Agreement, in which event this Agreement shall
                terminate, and only if Seller elects to terminate this
                Agreement, the Deposit shall be returned to the Buyer and
                neither party shall have any further obligation to the other
                except for Buyer's indemnification under Paragraph 5. If, before
                the Closing, proceedings are commenced for the taking by
                exercise of the power of eminent domain of less than such a
                material part of the Property, or if Buyer has the right to
                terminate this Agreement pursuant to the preceding sentence but
                Buyer does not exercise such right, then this Agreement shall
                remain in full force and effect and, at the Closing, the
                condemnation award (or, if not therefore received, the right to
                receive such portion of the award) payable on account of the
                taking shall be transferred in the same manner as title to the
                Property is conveyed. Seller shall give notice to Buyer within
                three (3) business days after Seller's receiving notice of the
                commencement of any proceedings for the taking by exercise of
                the power of eminent domain of all or any part of the Property.

13.     Notices.

        13.1    All notices, demands, or other communications of any type given
                by any party hereunder, whether required by this Agreement or in
                any way related to the transaction contracted for herein, shall
                be void and of no effect unless given in accordance with the
                provisions of this Paragraph. All notices shall be in writing
                and delivered to the person to whom the notice is directed,
                either in person, by United States Mail, as a registered or
                certified item, return receipt requested by telecopy or by
                Federal Express. Notices delivered by mail shall be deemed given
                when received. Notices by telecopy or Federal Express shall be
                deemed received on the business day following transmission.
                Notices shall be given to the following addresses:

                Seller:                     Theresa Hutton
                                            Triple Net Properties, LLC
                                            1551 N. Tustin Ave.  #200
                                            Santa Ana, CA  92705
                                            (714) 667-8252
                                            (714) 667-6860  fax

                                       26
<PAGE>
                With Required Copy to:      Thomas C. Young
                                            Triple Net Properties, LLC
                                            4 Hutton Centre Drive, Suite 700
                                            South Coast Metro, CA  92707
                                            (714) 667-8252 ext. 619
                                            (714) 918-9150  fax

                                            Joseph J. McQuade, Esq.
                                            Hirschler Fleischer
                                            The Federal Reserve Bank Building,
                                            16th Floor
                                            701 East Byrd Street
                                            Richmond, VA  23219
                                            (804) 771-9502
                                            (804) 644-0957  fax

                Buyer:                      Bradley Redelsperger
                                            Vice-President
                                            660 Newport Center Drive, Suite 1240
                                            Newport Beach, CA  92660

                With Required Copy to:      Tamarin L. Preston
                                            Director of Legal Affairs
                                            660 Newport Center Drive, Suite 1240
                                            Newport Beach, CA  92660

14.     Remedies.

        14.1    Defaults by Seller. If there is any default by Seller under this
                Agreement, which is not cured by Seller within ten (10) business
                days of Seller's receipt of written notice, Buyer may, as its
                sole options elect to either (a) declare this Agreement
                terminated and receive a refund of the Deposit; or (b) treat
                this Agreement as being in full force and effect and bring an
                action against Seller for specific performance. In the event of
                a Seller default, all time periods hereunder (including, but not
                limited to those referenced in Section 7.8) shall be extended
                for the lesser of seven (7) days, or the actual number of days
                in which Seller cured its default.

        14.2    Defaults by Buyer. If there is any default by Buyer under this
                Agreement, following notice to Buyer and seven (7) days, during
                which period Buyer may cure the default, then Seller may, as its
                sole remedy, declare this Agreement terminated and each party
                shall thereupon be relieved of all further obligations and
                liabilities, except any which survive termination.
                Notwithstanding the foregoing, the Buyer's right to cure shall
                be applicable to a failure to close and the Closing shall in no
                event be extended pursuant to this Section. In the event this
                Agreement is terminated due to the default of Buyer hereunder,
                Buyer shall deliver to Seller, at no cost to Seller, the Due
                Diligence Items and all of Buyer's

                                       27
<PAGE>
                Reports. In the event of a Buyer default, all time periods
                hereunder (including, but not limited to those referenced in
                Section 7.8) shall be extended for the lesser of seven (7) days,
                or the actual number of days in which Buyer cured its default.

        14.3    ARBITRATION OF DISPUTES. ANY CLAIM, CONTROVERSY OR DISPUTE,
                WHETHER SOUNDING IN CONTRACT, STATUTE, TORT, FRAUD,
                MISREPRESENTATION OR OTHER LEGAL THEORY, RELATED DIRECTLY OR
                INDIRECTLY TO THIS AGREEMENT, WHENEVER BROUGHT AND WHETHER
                BETWEEN THE PARTIES TO THIS AGREEMENT OR BETWEEN ONE OF THE
                PARTIES TO THIS AGREEMENT AND THE EMPLOYEES, AGENTS OR
                AFFILIATED BUSINESSES OF THE OTHER PARTY, SHALL BE RESOLVED BY
                ARBITRATION AS PRESCRIBED IN THIS SECTION. THE FEDERAL
                ARBITRATION ACT, 9 U.S.C. Sections 1-15, NOT STATE LAW, SHALL
                GOVERN THE ARBITRABILITY OF ALL CLAIMS, AND THE DECISION OF THE
                ARBITRATOR AS TO ARBITRABILITY SHALL BE FINAL.

                A SINGLE ARBITRATOR WHO IS A RETIRED FEDERAL OR CALIFORNIA JUDGE
                SHALL CONDUCT THE ARBITRATION UNDER THE THEN CURRENT RULES OF
                THE AMERICAN ARBITRATION ASSOCIATION (THE "AAA"). THE ARBITRATOR
                SHALL BE SELECTED BY MUTUAL AGREEMENT ON THE ARBITRATOR WITHIN
                THIRTY (30) DAYS OF WRITTEN NOTICE BY ONE PARTY TO THE OTHER
                INVOKING THIS ARBITRATION PROVISION, IN ACCORDANCE WITH AAA
                PROCEDURES FROM A LIST OF QUALIFIED PEOPLE MAINTAINED BY THE
                AAA. THE ARBITRATION SHALL BE CONDUCTED IN SANTA ANA, CALIFORNIA
                AND ALL EXPEDITED PROCEDURES PRESCRIBED BY THE AAA RULES SHALL
                APPLY.

                THERE SHALL BE NO DISCOVERY OTHER THAN THE EXCHANGE OF
                INFORMATION WHICH IS PROVIDED TO THE ARBITRATOR BY THE PARTIES.
                THE ARBITRATOR SHALL HAVE AUTHORITY ONLY TO GRANT SPECIFIC
                PERFORMANCE AND TO ORDER OTHER EQUITABLE RELIEF AND TO AWARD
                COMPENSATORY DAMAGES, BUT SHALL NOT HAVE THE AUTHORITY TO AWARD
                PUNITIVE DAMAGES OR OTHER NONCOMPENSATORY DAMAGES OR ANY OTHER
                FORM OF RELIEF. THE ARBITRATOR SHALL AWARD TO THE PREVAILING
                PARTY ITS REASONABLE ATTORNEYS' FEES AND COSTS AND OTHER
                EXPENSES INCURRED IN THE ARBITRATION, EXCEPT THE PARTIES SHALL
                SHARE EQUALLY THE FEES AND EXPENSES OF THE ARBITRATOR. THE
                ARBITRATOR'S DECISION AND AWARD SHALL BE FINAL AND BINDING, AND
                JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATOR MAY BE ENTERED
                IN ANY COURT HAVING JURISDICTION THEREOF.

                                       28
<PAGE>
15.     Assignment.

        Buyer may assign its rights under this Agreement to an entity in which
        Buyer has a legally controlling interest, provided, however, that Buyer
        shall have no such right unless a written assignment is delivered to
        Seller no later than 7 business days before Closing; and further
        provided that no such assignment shall relieve Buyer of its obligations
        hereunder.

16.     Interpretation and Applicable Law.

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

17.     Amendment.

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

18.     Attorney's Fees.

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

19.     Entire Agreement; Survival.

        This Agreement (and the items to be furnished in accordance herewith)
        constitutes the entire agreement between the parties pertaining to the
        subject matter hereof and supersedes all prior and contemporaneous
        agreements and understandings of the parties in connection therewith. No
        representation, warranty, covenant, agreement, or condition not
        expressed in this Agreement shall be binding upon the parties hereto nor
        affect or be effective to interpret, change, or restrict the provisions
        of this Agreement. All of the obligations of the parties hereunder and
        all other provisions of this Agreement shall be deemed to have merged
        into the Deed and shall be extinguished at Closing or the earlier
        termination of this Agreement, except as expressly provided herein.
        Notwithstanding anything to the contrary in this Agreement, the

                                       29
<PAGE>
20.     Multiple Originals only; Counterparts.

        Numerous agreements may be executed by the parties hereto. Each such
        executed copy shall have the full force and effect of an original
        executed instrument. This Agreement may be executed in any number of
        counterparts, all of which when taken together shall constitute the
        entire agreement of the parties.

21.     Acceptance.

        Time is of the essence as to all dates set forth in this Agreement. The
        date of execution of this Agreement by Seller shall be the date of
        execution of this Agreement. If the final date of any period falls upon
        a Saturday, Sunday, or legal holiday under Federal law, the laws of the
        State or the laws of the State of California, then in such event the
        expiration date of such period shall be extended to the next day which
        is not a Saturday, Sunday, or legal holiday under Federal law, the laws
        of the State or the State of California.

22.     Real Estate Commission.

        Seller and Buyer each represent and warrant to the other that neither
        Seller nor Buyer has contracted or entered into any agreement with any
        real estate broker, agent, finder or any other party in connection with
        this transaction, and that neither party has taken any action which
        would result in any real estate broker's, finder's or other fees or
        commissions being due and payable to any party with respect to the
        transaction contemplated hereby, except that Seller has contracted with
        Triple Net Properties Realty, Inc., and Trammell Crow Central Texas,
        Ltd. as its brokers and will pay any commission due to said brokers
        under separate agreement. Seller shall pay at Closing a commission to
        VOIT Commercial Brokerage of One Hundred Sixty-Four Thousand Dollars
        ($164,000). Each party hereby indemnifies and agrees to hold the other
        party harmless from any loss, liability, damage, cost, or expense
        (including reasonable attorneys' fees) resulting to the other party by
        reason of a breach of the representation and warranty made by such party
        in this paragraph.

23.     Exchange.

        Each of Buyer and Seller reserves the right to structure the sale of the
        Property as a like kind exchange pursuant to Section 1031 of the
        Internal Revenue Code of 1986, as amended. In such event the party
        electing a like kind exchange shall have the right to assign its
        interest in this Agreement to a qualified exchange intermediary of its
        choosing to effect such exchange. The other party shall sign a customary
        assignment and/or notice of assignment, however, such assignment shall
        at no cost or expense to party from whom the notice is being requested
        and shall not otherwise affect the term of this Agreement.

24.     Confidentiality.

        Buyer agrees that, prior to the closing, all Property information
        received by Buyer shall be kept confidential as provided in this
        paragraph. Without the prior written consent of

                                       30
<PAGE>
        Seller, prior to the closing, the Property information shall not be
        disclosed by Buyer or its representatives, in any manner whatsoever, in
        whole or in part, except (1) to Buyer's representatives who need to know
        the Property information for the purpose of evaluating the Property and
        who are informed by the Buyer of the confidential nature of the Property
        information; (2) as may be necessary for Buyer or Buyer's
        representatives to comply with applicable laws, including, without
        limitation, governmental, regulatory, disclosure, tax and reporting
        requirements; to comply with other requirements and requests of
        regulatory and supervisory authorities and self-regulatory organizations
        having jurisdiction over Buyer or Buyer's representatives; to comply
        with regulatory or judicial processes; or to satisfy reporting
        procedures and inquiries of credit rating agencies in accordance with
        customary practices of Buyer or its affiliates; and (3) to prospective
        tenants of the Property.

              THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK

                                       31
<PAGE>
                               SIGNATURE PAGE FOR

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

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

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

EXECUTED on this the 8th day of May, 2006 by:

SELLER:

        TREIT - AMBEROAKS, LP,
        a Texas limited liability company

        By:    /s/ Scott Peters
        Name:  Scott Peters
        Title: TREIT Chief Financial Officer

        NNN AMBEROAKS 1, LLC,
        a Texas limited liability company

        By:    /s/ Richard Hutton
        Name:  Richard Hutton
        Title: Chief Investment Officer

        NNN AMBEROAKS 2, LLC,
        a Texas limited liability company

        By:    /s/ Richard Hutton
        Name:  Richard Hutton
        Title: Chief Investment Officer

                                       32
<PAGE>
        NNN AMBEROAKS 3, LLC,
        a Texas limited liability company

        By:    /s/ Richard Hutton
        Name:  Richard Hutton
        Title: Chief Investment Officer

EXECUTED on this the 8 day of May, 2006 by:

BUYER:

        CHASE MERRITT, LP
        a Delaware limited partnership

        By: /s/ Chad Horning
           -----------------------------------

        Name:  Chad Horning
             ---------------------------------

        Title: CEO
              --------------------------------

                                       33
<PAGE>
                                    EXHIBIT A

                        Legal Description of the Property

TRACT 1: Lots 2 and 3, Block "E", STATE FARM SUBDIVISION SECTION TWO, a
subdivision in Williamson County, Texas, according to the map or plat thereof,
recorded in Cabinet Q, Slide(s) 125-126 of the Plat Records of Williamson
County, Texas.

TRACT 2: Lot 6A, Block "C", AMENDED PLAT OF STATE FARM SECTION THREE, a
subdivision in Williamson County, Texas, according to the map or plat thereof,
recorded in Cabinet Y, Slide(s) 164-166 of the Plat Records of Williamson
County, Texas, SAVE AND EXCEPT that portion conveyed to Williamson County in
Deed dated November 11, 2003, filed December 10, 2003 and recorded under
Document No. 2003118651 of the Official Public Records of Williamson County,
Texas.

                                       34
<PAGE>
                                    EXHIBIT B

                                     Leases

AMBER OAKS III
BUILDING A
EG&G
ACS State Healthcare
7-Eleven, Inc.
InfoEdge Technology
URS

BUILDING F
Netsolve/Cisco Systems

BUILDING J
Newell Rubbermaid, Inc.

                                       35
<PAGE>
                                    EXHIBIT C

                   Form of Assignment and Assumption Agreement

        This Assignment and Assumption Agreement (this "Assignment") is made as
of __________ ___, _____, by and between ___________________________, a
____________________ ("Assignor"), and ________________________, a
_________________________ ("Assignee").

        For good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Assignor hereby grants, sells, transfers and
assigns unto Assignee all of the rights, title and interest of Assignor in, to
and under any and all of the following items, to the extent that they are
related to that certain real property located in the [County] [City] of
________________, State of __________, which is more particularly described in
Exhibit A attached hereto (the "Real Property"):

                (a) all contracts or agreements, if any, to the extent that they
        relate to the Real Property, or improvements thereon (including, but not
        limited to, maintenance or utility contracts);

                (b) all warranties, guarantees and indemnities (including,
        without limitation, those for workmanship, materials and performance)
        which exist or may hereafter exist, from, by or against any contractor,
        subcontractor, manufacturer or supplier or laborer or other services
        relating to the Real Property, or the improvements thereon;

                (c) plans, drawings, and specifications for the improvements to
        the Real Property; and

                (d) all intangible property used or useful in connection with
        the Real Property or the improvements thereon, including, without
        limitation, all trademarks, trade names [(including, without limitation,
        the exclusive right to use the name _____________________)], and all
        contract rights, guarantees, licenses, permits (to the extent
        transferable) and warranties.

                (e) all of Assignor's rights, title and interest in, to and
        under the leases (the "Leases") relating to the Real Property, together
        with any and all rights, title, estates and interests of Assignor as
        lessor under the Leases, whether now owned or hereafter acquired, in and
        to any improvements and fixtures located thereon and any rights,
        privileges, easements, rights of way or appurtenances appertaining
        thereto (including, without limitation, any and all rents, issues,
        profits, royalties, income and other benefits derived from the Real
        Property hereafter accruing, and any and all claims, causes of action,
        rights to proceeds or awards related to the Real Property hereafter
        accruing), together with all rights, title, estates and interests of
        Assignor in and to such security deposits and prepaid rents, if any, as
        have been paid to Assignor pursuant to such Leases,

                                       36
<PAGE>
        together with all rights, title, estates and interests of Assignor in
        and to any subleases, if any, relating to the Real Property.

        Assignee hereby accepts the foregoing assignment and agrees to assume
any executory obligations of Assignor arising after the date hereof in
connection with the agreements described in paragraph (a) above.

        Assignee hereby accepts the foregoing assignment and agrees to assume,
pay, perform and discharge, as and when due, all of the agreements and
obligations of Assignor under the Leases arising after the date hereof and
agrees to be bound by all of the terms and conditions of the Leases.

        Assignor hereby covenants that it will, at any time and from time to
time upon written request therefor, at Assignee's sole expense and without the
assumption of any additional liability therefor, execute and deliver to
Assignee, and its successors and assigns, any new or confirmatory instruments
and take such further acts as Assignee may reasonably request to fully evidence
the assignment contained herein and to enable Assignee, and its successors and
assigns, to fully realize and enjoy the rights and interests assigned hereby.

        The provisions of this Assignment shall be binding upon, and shall inure
to the benefit of, the successors and assigns of Assignor and Assignee,
respectively. This Assignment may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which when taken together
shall constitute one and the same instrument.

        IN WITNESS WHEREOF, Assignor and Assignee have caused their duly
authorized representatives to execute this Assignment as of the date first above
written.

                                    ASSIGNOR:
                                                                   ,
                                    -------------------------------

                                    a
                                      ------------------------------

                                    By:
                                       ----------------------------------------

                                    Its:
                                        ---------------------------------------

                                    ASSIGNEE:
                                                                   ,
                                    -------------------------------

                                    a
                                      ------------------------------

                                    By:
                                       ----------------------------------------

                                    Its:
                                        ---------------------------------------

                                       37
<PAGE>
                                    EXHIBIT D

                              Form of Bill of Sale

        For good and valuable consideration, receipt and sufficiency of which is
hereby acknowledged, the undersigned, _______________________, a
____________________ ("Seller"), does hereby give, grant, bargain, sell,
transfer, assign, convey and deliver to __________________, a _____________
("Buyer"), all personal property of Seller located on, in, or used or useful in
connection with that certain real property (the "Real Property") located in the
[County] [City] of ________________, State of __________, commonly known as
_____________________, which Real Property is more particularly described on
Exhibit A attached hereto.

        The assets transferred hereby are conveyed AS-IS WHERE-IS WITHOUT ANY
REPRESENTATION OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE WHATSOEVER.

        Seller hereby covenants that it will, at any time and from time to time
upon written request therefor, at Buyer's sole expense and without the
assumption of any additional liability thereby, execute and deliver to Buyer,
its nominees, successors and/or assigns, any new or confirmatory instruments and
do and perform any other acts which Buyer, its nominees, successors and/or
assigns, may reasonably request in order to fully assign and transfer to and
vest in Buyer, its nominees, successors and/or assigns, and protect its or their
rights, title and interest in and enjoyment of, all of the assets of Seller
intended to be transferred and assigned hereby, or to enable Buyer, its
nominees, successors and/or assigns, to realize upon or otherwise enjoy any such
assets.

        All references to "Seller" and "Buyer" herein shall be deemed to include
their respective nominees, successors and/or assigns, where the context permits.

Dated:               , 2006         SELLER:
        --------- ---
                                                                   ,
                                    -------------------------------

                                    a
                                      ------------------------------

                                    By:
                                       ----------------------------------------

                                    Its:
                                        ---------------------------------------

                                       38
<PAGE>
                                    EXHIBIT E

                               Tenant Improvements

The parties specifically agree that with respect to the Lease with potential URS
expansion into Suite 150 containing approximately 5,770 square feet, Buyer at
Closing will receive a credit in the amount of $110,378 representing the
estimated costs of tenant improvement work to be performed, leasing commissions
to be paid and one months' free rent.

                                       39
<PAGE>
                                    EXHIBIT F

                              Governmental Notices
                              Environmental Matters

Letter, dated June 30, 2005, to NNN Amberoaks, L.L.C. from Texas Commission on
Environmental Quality, regarding request for approval of an aboveground storage
tank facility plan for State Farm Amberoaks Corporate Center; Amberglen
Boulevard, Austin E.T.J., Texas.

                                       40
<PAGE>
                                    EXHIBIT G

                        Form Tenant Estoppel Certificate

        By lease, dated _________________ ("Lease"), the undersigned ("Tenant")
has leased from _____________________________., a ___________________or its
predecessors in interest ("Landlord") the lease premises located at
___________________________________ ___________________________________ which
are more particularly described in the Lease. Landlord, as owner of the property
("Property") of which the lease premises are a part, intends to sell the said
Property to __________________________________________________________ ("Buyer")
who, as a condition to the purchase of the Property, has required this tenant
estoppel certificate.

        In consideration of Buyer's agreement to purchase the Property, Tenant
agrees and certifies to Landlord and to Buyer as follows:

        1. The leased premises and possession thereof are accepted; the Lease is
in full force and effect; and the lease term begins on
____________________________________and ends on _____________________________.

        2. Tenant claims no present charge, lien or claim of offset against
rent.

        3. Rent is paid for the current month but is not paid and will not be
paid more than one month in advance. Basic or fixed rent is $___________ per
month and is due on the ______ of each month. A security deposit in the amount
of $___________ has been paid to Landlord.

        4. There are no existing defaults by reason of any act or omission of
the Landlord except as follows:

        5. The Lease has not been modified, except in accordance with the
amendments dated as follows:

        6. Attached is a true and correct copy of the Lease together with all
amendments, modifications or renewals.

        This certificate may be relied upon by Buyer, its lender from time to
time, and their respective successors and assigns.

        TENANT:                                                    ,
                                    -------------------------------

                                    a
                                      ------------------------------

                                    By:
                                       -------------------------------------

                                    Name:
                                         -----------------------------------

                                    Title:
                                          ----------------------------------

                                       41
<PAGE>
                                    EXHIBIT H

                    Form Seller/Landlord Estoppel Certificate

TO:
   ---------------------------------------------

RE:
   ---------------------------------------------

        Lease dated:
                    ----------------------------------------
        Landlord:
                 -------------------------------------------
        Tenant:
               ---------------------------------------------

        Demised Premises:
                         -----------------------------------

        Current Base Rental:
                            --------------------------------

        The undersigned ("Seller") hereby certifies as of the date hereof, the
following:

        1. Attached hereto is a true, correct and complete copy of the
above-described Lease along with all amendments and modifications thereto (the
"Lease").

        2. The Lease is in full force and effect and has not been amended,
modified. supplemented or superseded except as follows:

        3. The information describing the Lease as shown above is correct except
as follows:

        This letter is given by Seller to ("Buyer") in connection with the sale
of that certain property described in that certain Purchase and Sale Agreement,
dated as of ________________, 2006, by and between Buyer and Seller (the "Sale
Agreement") and is intended solely for the benefit of Buyer and no other person
or entity may rely on any matter set forth herein. Seller shall only be liable
for the information set forth herein for ninety (90) days after the date hereof;
provided, however, that if Seller obtains an estoppel certificate from the
tenant identified hereinabove after the date hereof that complies with the terms
of Section 10.1.3 of the Agreement for Purchase and Sale, this certificate shall
be without further force or effect as of the date of such tenant's estoppe1
certificate.

        Anything in this letter to the contrary notwithstanding, the maximum
aggregate liability of Seller for Seller's breaches of representations and
warranties contained herein shall be limited as set forth in the Agreement of
Purchase and Sale. Notwithstanding the foregoing, however, Buyer hereby
expressly waives, relinquishes and releases any right or remedy available to it
at law, in equity or under the Sale Agreement to make a claim against Seller for
damages that Buyer may incur as the result of any of Seller's representations or
warranties being untrue, inaccurate or incorrect if (a) Buyer knew or is deemed
to know that such representation or

                                       42
<PAGE>
warranty was untrue, inaccurate or incorrect on or before the date hereof, or
(b) Buyer's damages as a result of such representations or warranties being
untrue, inaccurate or incorrect are reasonably estimated to aggregate less than
$50,000.

Dated as of this ____ day of __________________, 2006.

                                                                   ,
                                    -------------------------------

                                    a
                                      ------------------------------

                                    By:
                                       -------------------------------------

                                    Name:
                                         -----------------------------------

                                    Title:
                                          ----------------------------------

                                       43

<PAGE>
                                    EXHIBIT I

                                   AMBER OAKS
                            LEASE DOCUMENT INVENTORY
                                  AS OF 5/4/06

                                 AMBER OAKS III

<TABLE>
<CAPTION>
 BUILDING-ADDRESS     SUITE        TENANT                DOCUMENT INVENTORY
 ----------------     -----        ------                ------------------
<S>                   <C>       <C>                      <C>
A-13640               160/250   InfoEdge                 1.   Lease dated September 30, 2005
                                                         2.   1st Amendment dated February 16, 06

F-9500               100 & 200  Cisco Systems, Inc.      1.   Lease dated June 7, 2000
                                                         2.   LOC dated July 3, 2001
                                                         3.   LOC dated 8/20/04 - expired 8/31/05 ($345,000)

J-9301                  999     Newell Rubbermaid,       1.   Lease dated May 23, 2002
                                Inc.                     2.   1st Amendment dated December 5, 2003
                                                         3.   Option Agreement dated December 5, 2003
                                                         4.   Assignment of Lease dated April 13, 2004
</TABLE>

                                       44

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