Document:

EXHIBIT 10.6
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                         EMPLOYMENT AGREEMENT

     This Agreement (the "Agreement") is made and entered into as of
September 1, 2000 by and between Robert G. Higgins ("Higgins") and Banyan
Strategic Realty Trust (the "Trust").

     WHEREAS, Higgins is the Trust's First Vice President/General Counsel
and provides legal services to the Trust as an independent contractor;

     WHEREAS, the Trust is reviewing its strategic options and may, among
other things, engage in transactions as a precedent to liquidating and
dissolving the Trust;

     WHEREAS, the Trust is desirous of retaining Higgins' services as an
employee instead of an independent contractor to ensure continuity and to
minimize certain of its legal expenses during the liquidation and
dissolution phase;

     WHEREAS, Higgins is desirous of entering into an employment agreement
with the Trust on terms and conditions contained herein;

     NOW THEREFORE, in consideration of the premises, mutual covenants and
agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Trust and
Higgins do hereby agree as follows:

     1.    RECITALS.  The recitals to this Agreement are incorporated by
reference into this Agreement and made a part of as though stated herein.

     2.    EMPLOYMENT DUTIES.  The Trust agrees to initially employ
Higgins as Vice President/General Counsel and following the first annual
meeting of shareholders to be held after execution and delivery of this
Agreement as the First Vice President, General Counsel and Chief Operating
Officer of the Trust to perform such duties as may reasonably be assigned
from time to time consistent with this position by the Trust's board of
trustees.

     3.    PERFORMANCE.  Higgins accepts the appointment described in
SECTION 2 of this Agreement and agrees to faithfully and diligently perform
the services described therein or assigned by the board of trustees.

     4.    EFFECTIVENESS; TERM.  The term of this Agreement shall commence
as of September 1, 2000 and continue until October 31, 2002 unless sooner
terminated pursuant to SECTION 11 herein (the "Term").

     5.    BASE COMPENSATION.  For the services rendered by Higgins
hereunder, the Trust shall pay Higgins a base salary at a rate equal to
$260,000 per annum (the "Base Salary") payable at the same time and in the
same manner in which payroll of the Trust is customarily paid, subject to
the following increases:

           (a)   commencing on January 1, 2001, the Base Salary shall be
increased to $275,000 per annum; and

           (b)   commencing on January 1, 2002, the Base Salary shall be
increased to $288,750 per annum.

<PAGE>

     6.    OTHER COMPENSATION.

     (a)   RETENTION BONUS.  Upon the expiration or termination of this
Agreement, provided that this Agreement is not terminated pursuant to
SECTION 11(a) OR SECTION 11(d), the Trust shall pay Higgins, in a lump sum,
an amount equal to fifty percent (50%) of the aggregate amount of Base
Salary paid to Higgins during the period commencing on November 1, 2000 and
ending on the date this Agreement expires or is terminated (the "Retention
Bonus").  The Retention Bonus due under this SECTION 6(a) shall be paid
within five (5) business days of expiration or termination of this
Agreement.

     (b)   SEVERANCE PAY.  Upon expiration or termination of this
Agreement, provided that this Agreement is not terminated pursuant to
SECTION 11(a) OR SECTION 11(d), the Trust shall pay to Higgins, in a lump
sum, an amount equal to one full year of Base Salary at the then-current
payable rate determined pursuant to SECTION 5 (the "Severance Pay").  The
Severance Pay due under this SECTION 6(b) shall be paid within five (5)
business days of expiration or termination of this Agreement.

     7.    ADDITIONAL BENEFITS.  During the term of this Agreement,
Higgins shall also participate in any benefit or deferred compensation plan
sponsored by the Trust, including, but not limited to, profit sharing
plans, dental and medical plans and disability insurance, if any.  Higgins
shall also be entitled to four weeks paid vacation per employment year and
shall be reimbursed by the Trust for all reasonable out-of-pocket business
expenses incurred by Higgins in connection with performing his duties under
this Agreement; provided, however, that Higgins shall provide the Trust
with an accounting conforming to Internal Revenue Service or other
requirements substantiating the nature of all reimbursable expenses.  All
reimbursements shall be paid to Higgins within a reasonable time after
receipt by the Trust of the appropriate documentation.

     8.    WITHHOLDING.  All compensation and benefits paid to Higgins
hereunder shall be reduced by all federal, state, local and other
withholding and similar taxes and payments required by applicable law.

     9.    CONFIDENTIALITY.  Higgins agrees that as a result of his
employment with the Trust, he has acquired, or will acquire, information of
a special and unique nature and value that is not generally known to the
public or to the Trust's industry regarding the Trust, including but not
limited to, business, financial and other records of the Trust and its
affiliates, including its and their joint venture partners, software
programs, employee records, mailing lists, tenant lists and profiles,
prospective tenant lists, accounts receivable and payable ledgers, plans
and projections, budgets, marketing data and other similar matters (all
such information being hereinafter referred to as "Confidential
Information").  Accordingly, Higgins:

     (a)   will not, except as otherwise authorized by the Trust, divulge
to any person, firm, corporation, limited liability company, or
organization (hereinafter referred to as "Third Parties"), or use or cause
or authorize any Third Parties to use, the Confidential Information, except
as required by law or court order; and

     (b)   upon termination of this Agreement, will deliver, destroy or
delete or cause to be delivered, destroyed or deleted, as the Trust may
request, any and all Confidential Information, including drawings,
notebooks, keys, data and other documents and materials belonging to the
Trust or its affiliates which is in his possession or under his control
relating to the Trust or its affiliates, or the business of the Trust,
regardless of the medium upon which it is stored, and will deliver to the
Trust any other property of the Trust or its affiliates which is in his
possession or under his control within five (5) business days of the
termination of this Agreement.

<PAGE>

     For purposes of this SECTION 9, the term "Confidential Information"
shall not include information which: (i) was in the public domain at the
time of execution of this Agreement; (ii) hereafter becomes part of the
public domain by publication or otherwise through no unauthorized action of
Higgins; or (iii) was received by Higgins through a source other than the
Trust which is not under an obligation of confidentiality to the Trust.
Higgins further acknowledges and agrees that the Confidential Information
is of great value to the Trust and its affiliates and that the restrictions
and agreements contained in this Agreement are reasonably necessary to
protect the Confidential Information and the goodwill of the Trust's
business.

     Higgins acknowledges that a violation of the provisions of this
SECTION 9 will cause irreparable damage to the Trust, the amount of which
may be impossible to quantify, and Higgins therefore agrees and understands
that if this SECTION 9 is violated, the Trust shall be entitled to
injunctive relief in addition to any other remedies available to the Trust
at law or in equity.

     10.   [RESERVED]

     11.   TERMINATION.  This Agreement and Higgins's employment may be
terminated as follows:

     (a)   TERMINATION FOR CAUSE.  The Trust may terminate this Agreement
for "Cause."  For purposes of this Agreement, "Cause" shall mean:

                 i.   conduct of Higgins which constitutes fraud,
misappropriation, embezzlement, gross negligence, or wilful or illegal
misconduct in connection with performing Higgins's duties under this
Agreement;

                 ii.  any material act of dishonesty by Higgins in
connection with performing Higgins's duties under this Agreement that is
not covered in (i) above;

                 iii. the indictment or conviction of Higgins by a court
of proper jurisdiction of (or his written, voluntary and freely given
confession to) a crime which constitutes a felony or which results in
material injury to the Trust's property, assets or reputation; or

                 iv.  any material breach by Higgins of this Agreement,
which continues for a period of five (5) business days after written notice
detailing the breach from the Trust to Higgins; provided that no cure
period shall be required after the first breach.

           If the Trust terminates this Agreement for Cause, the Trust
shall have no further obligation to pay Higgins any of the compensation or
benefits described in this Agreement, except for any Base Salary and
amounts or benefits due Higgins under SECTION 7 earned but unpaid through
the date of termination.

     (b)   TERMINATION BY REASON OF DISABILITY.  The Trust may terminate
this Agreement if Higgins, in the reasonable judgment of the Trust's board
of trustees, is unable to perform his duties, with or without reasonable
accommodation, on account of illness or physical or mental incapacity for a
period of more than two (2) months in any twelve (12) consecutive month
period.  To terminate, the Trust must notify Higgins in writing and pay
Higgins the Base Salary to the extent earned and unpaid, the Retention
Bonus, the Severance Pay and any amounts or benefits due Higgins under
SECTION 7, all to the date of termination, with the exception of medical
benefits which shall continue through the end of the Term.  Amounts due
under this paragraph shall be paid within five (5) business days of
termination.  Following termination under this paragraph, Higgins shall not
have the right to, and the Trust shall have no further obligation to pay,
other compensation or reimbursement of any other kind.

<PAGE>

     (c)   TERMINATION BY REASON OF DEATH.  The Trust may terminate this
Agreement if Higgins dies in which case Higgins's employment shall be
deemed to have terminated as of the last day of the month during which his
death occurs.  Upon termination, the Trust shall pay Higgins' estate or
beneficiaries as he may from time to time designate, all Base Salary, the
Retention Bonus and the Severance Pay all to the extent earned and unpaid
and any benefits or amounts due Higgins under SECTION 7 above, all to the
date of termination.  Amounts due under this paragraph shall be paid within
five (5) business days of termination.  Following termination under this
paragraph, the Trust shall not have any other liability or obligation to
Higgins's estate for other compensation or reimbursement of any other kind,
including, without limitation, incentive compensation.

     (d)   VOLUNTARY TERMINATION BY HIGGINS.  Higgins may terminate this
Agreement at any time by notifying the Trust in writing at least thirty
(30) business days prior to the date of termination.  Within five (5)
business days of the date of termination, the Trust shall pay Higgins all
benefits and other amounts due under SECTION 7 hereof plus all Base Salary
earned but unpaid through the date of termination; provided that following
termination under this paragraph, the Trust shall have no further
obligation to pay Higgins the Retention Bonus or the Severance Pay.  If
Higgins fails to notify the Trust in the manner and time provided herein,
the Trust will have no obligation to Higgins for compensation or
reimbursement of any kind, except as otherwise required by law.

     (e)   OTHER TERMINATION BY THE TRUST.  The Trust may terminate this
Agreement for any reason: (i) by notifying Higgins in writing at least
sixty (60) days prior to the date of termination; or (ii) upon the final
liquidation and dissolution of the Trust; provided that in either event the
Trust shall pay Higgins all Base Salary and Retention Bonus to the extent
earned and unpaid, the Severance Pay and any amounts due Higgins under
SECTION 7, all to the date of termination.  Amounts due under this
paragraph shall be paid within five (5) business days of termination.
Following termination under this paragraph, Higgins shall not have the
right to, and the Trust shall have no further obligation to pay, other
compensation or reimbursement of any kind, including, without limitation,
incentive or other severance compensation.

     (f)   CHANGE OF CONTROL.  Higgins may terminate this Agreement by
written notice given to the Trust upon a "Change of Control."  For purposes
of this SECTION 11(f), "Change of Control" shall mean: (i) that the members
of the Trust's board of directors as of the date of this Agreement fail to
constitute a majority of the members of the board provided that any
individual becoming a member of the board who is nominated by the board
shall be treated as if he or she were a member of the board as of the date
of this Agreement; (ii) the shareholders of the Trust adopt a plan of
liquidation or take other action having the effect of a plan of liquidation
without the recommendation or approval of the board; (iii) all of the real
estate properties or business of the Trust are disposed of pursuant to a
merger, consolidation or other transaction whereby the shareholders of the
Trust immediately prior to such merger, consolidation or other transaction
retain 50% or less of the voting shares or other ownership/beneficial
interests of the entity or entities, if any, that succeed to or obtain the
business or properties of the Trust; (iv) the Trust combines with another
company and immediately after the combination, the shareholders of the
Trust immediately prior to the combination hold 50% or less of the voting
shares of the surviving entity; (v) any "person," as such term is used in
Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, becomes
a "beneficial owner," as such term is used in Rule 13d-3 promulgated under
that Act, of 50% or more of the voting shares of the Trust; (vi) the
relocation of the Trust's executive offices to a location in

<PAGE>

     excess of 100 miles outside of the Chicago Loop area; (vii) a
material breach of this Agreement by the Trust which continues for a period
of five (5) business days after written notice detailing the breach from
Higgins to the Trust; and (viii) a material diminution of Higgins's duties,
responsibilities or authority, or the assignment to him of duties that are
inconsistent in any substantial respect with the position, authority or
responsibilities associated with the positions set forth in SECTION 2
herein.  Upon termination, the Trust shall pay Higgins: (A) all Base Salary
and Retention Bonus to the extent earned and unpaid through the date of
termination, (B) any amounts due Executive under SECTION 7 to the date of
termination, and (C) the Severance Pay.  Amounts due under this paragraph
shall be paid within thirty (30) business days of termination.

     12.   OTHER ACTIVITIES OF HIGGINS.  Higgins shall devote such working
time and attention as is necessary to fulfill his responsibilities
hereunder. Higgins shall not engage in any activity which may be adverse to
the Trust's business, appropriate or usurp business opportunities or engage
or invest in businesses or assets which compete directly or indirectly with
the Trust. Nothing contained herein shall prohibit Higgins from investing
in publicly-traded entities which are engaged in lines of businesses
similar to the Trust, continuing to serve as a director on the boards on
which Higgins serves as of the date of this Agreement, or continuing to
provide legal advice and counsel to clients so long as such activities do
not cause a conflict of interest with the Trust or diminish his
responsibilities hereunder.

     13.   NOTE MATURITY.  Consistent with the Trust's retention and
severance policy for non-contractual employees, the Non-Recourse Promissory
Note, executed by Higgins on January 12, 2000, shall not mature until the
later of: (A) the date the Trust has distributed all of its assets to Trust
shareholders other than those assets reserved for contingent liabilities;
and (B) the termination or expiration of this Agreement; PROVIDED, HOWEVER,
notwithstanding the preceding sentence, the Note shall immediately mature
upon Higgins's voluntary termination of this Agreement pursuant to
SECTION 11(d) herein, or upon his termination for Cause pursuant to SECTION
11(a) herein.

     14.   NOTICE.  Any notice required or permitted hereunder shall be
made in writing: (i) either by actual delivery of the notice into the hands
of the party entitled; or (ii) by depositing the notice in the United
States mail certified or registered, return receipt requested, all postage
prepaid and addressed to the party to whom notice is to be given at the
party's respective address set forth below, or such other address as the
party may from time to time designate by written notice to the other party.

     If to the Trust:

     Banyan Strategic Realty Trust
     Suite 2900
     150 South Wacker Drive
     Chicago, Illinois 60606
     Attn: L.G. Schafran

     with copies to:

     Shefsky & Froelich Ltd.
     444 North Michigan Avenue
     Suite 2500
     Chicago, Illinois 60611
     Attn: Michael J. Choate, Esq.

<PAGE>

     If to Higgins:

     Mr. Robert G. Higgins
     Attorney at Law
     150 South Wacker Drive
     Suite 2900
     Chicago, Illinois 60606
     (312) 683-5539 (direct)
     (312) 553-9800 (fax)
     (630) 267-7209 (mobile)

     with a copy to:

     Michael D. Karpeles
     Goldberg, Kohn, Bell, Black,
     Rosenbloom & Moritz
     55 E. Monroe Street
     Suite 3700
     Chicago, Illinois 60603

The notice shall be deemed to be received on the earlier of (i) the date of
its actual receipt by the party entitled thereto and (ii) the third
business day following the date of mailing.

     15.   AMENDMENT AND WAIVER.  No amendment or modification to this
Agreement shall be valid or binding on the Trust unless made in writing and
signed by an officer of the Trust duly authorized by the board or upon
Higgins unless made in writing and signed by Higgins. The waiver by the
Trust or Higgins of the breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach.

     16.   ENTIRE AGREEMENT.  This Agreement and an Indemnification
Agreement between Higgins and the Trust dated as of June 9, 1999 (the
"Indemnification Agreement") constitute all of the agreements between the
parties with respect to Higgins's rights duties, compensation and severance
as an employee of the Trust, there are no representations, warranties,
agreements or commitments between the parties hereto with respect to
Higgins's employment except as set forth herein and in the Indemnification
Agreement.

     17.   GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the internal laws (and not the law of
conflicts) of the State of Illinois.  The parties agree that any suit,
action or proceeding with respect to this Agreement shall be brought in the
courts of Cook County in the State of Illinois or in the U.S. District
Court for the Northern District of Illinois.  The parties hereto accept the
exclusive jurisdiction of those courts for the purpose of any such suit,
action or proceeding.  Venue for any such action, in addition to any other
venue permitted by statute, will be Cook County, Illinois.

     18.   SEVERABILITY.  If any provision of this Agreement shall, for
any reason, be held unenforceable, the provision shall be severed from this
Agreement unless, as a result of severance, the Agreement fails to reflect
the basic intent of the parties on the date hereof

     19.   ASSIGNMENT.  Except as provided herein, Higgins may not, under
any circumstances delegate any of his rights and obligations hereunder
without the prior written consent of the Trust. This Agreement and all of
the Trust's rights and obligations hereunder may be assigned or transferred
by it, in whole or in part, to be binding upon and inure to the benefit of
any subsidiary or successor of the Trust.

     20.   COST OF ENFORCEMENT.  In any suit or proceeding seeking to
enforce the terms, covenants or conditions of this Agreement, the
prevailing party shall, in addition to all of the remedies and relief that
may be available under this Agreement or applicable law, recover his or its
reasonable attorneys' fees and costs as shall be determined and awarded by
the court.

<PAGE>

     21.   COUNTERPARTS.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original.

             [Remainder of page intentionally left blank]

<PAGE>

     IN WITNESS WHEREOF, this Agreement is entered into on the day and
year first written above.

                            BANYAN STRATEGIC REALTY TRUST

                            By:
                                  ------------------------------
                                  Name:L.G. Schafran
                                  Title:  Interim President and
                                         Chief Executive Officer

                            ROBERT G. HIGGINS

                            ____________________________________
                            Robert G. HigginsEXHIBIT 10.7
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               SEPARATION AGREEMENT AND GENERAL RELEASE
               ----------------------------------------

     Neil D. Hansen ("Hansen") and Banyan Strategic Realty Trust, a
Massachusetts business trust, ("BSRT") enter into this Separation Agreement
and General Release ("Agreement") this 1st day of October, 2000.

     WHEREAS, Hansen is employed by BSRT pursuant to a written employment
agreement dated as of December 31, 1998 (the "Employment Agreement") and
serves as BSRT's First Vice President-Asset Management;

     WHEREAS, BSRT is in the process of marketing all, or substantially
all, of its assets for sale to third parties and does not intend to
reinvest any sale proceeds in new assets and, therefore, will no longer
require Mr. Hansen's services;

     WHEREAS, Hansen has had health problems during the year 2000 which
have prevented him from fully performing his duties, which include periods
of extensive travel;

     WHEREAS, the Agreement expires on December 31, 2000 but is
automatically renewed for an additional one (1) year period unless BSRT
notifies Hansen by September 30, 2000 of its desire to terminate the
Agreement;

     WHEREAS, BSRT notified Hansen on or before September 30, 2000 that
BSRT will not renew the Employment Agreement when it expires on
December 31, 2000; and

     WHEREAS, although the Employment Agreement contains provisions
stating rights and obligations of the parties in connection with a decision
by BSRT not to renew the Employment Agreement, BSRT and Hansen are desirous
of altering these rights and obligations and of creating additional rights
and obligations.

     NOW THEREFORE, in consideration of the mutual promises contained
herein, the parties agree as follows:

     1.    RECITALS.  The recitals to this Agreement are incorporated by
reference into this Agreement and made a part of as though stated herein.

     2.    RESIGNATION.  Hansen will resign from his position of First
Vice President-Asset Management effective at 12:00 a.m. central time on
October 2, 2000.

     3.    SEPARATION PAYMENTS.  BSRT shall pay Hansen $342,679 no later
than October 1, 2000, subject to tax withholding in accordance with BSRT's
payroll practices.  Hansen agrees that upon receipt of this payment, he
shall have no further right to, and BSRT shall have no further obligation
to pay Hansen, any wages, unreimbursed expenses, accrued vacation or any
other benefits except for wages and accrued vacation as of October 1, 2000
and except for reimbursable expenses which relate to expenses incurred by
Hansen in connection with performing his duties to BSRT prior to October 2,
2000 and for which he has not yet submitted the necessary documentation or
otherwise as provided herein; provided that if Hansen fails to submit the
necessary documentation for these expenses by November 15, 2000, BSRT will
have no further obligation to reimburse Hansen.

<PAGE>

     4.    CONFIDENTIALITY.  Each party agrees to keep the facts and terms
of this Agreement in strict confidence and to refrain from making any
negative or critical remarks about the other party; provided that nothing
herein shall prohibit Hansen from disclosing the facts and terms of this
Agreement: (a) to taxing authorities for the purpose of determining or
reporting Hansen's income to these authorities; (b) in connection with any
regulatory, administrative or judicial proceeding, including any proceeding
to enforce the terms of this Agreement; (c) to the extent required by law;
or (d) to Hansen's private insurance carrier in connection with any
disability claim.

           Hansen also agrees that as a result of his employment with
BSRT, he has acquired information of a special and unique nature and value
that is not generally known to the public or to BSRT's industry regarding
BSRT, including but not limited to, business, financial and other records
of BSRT and its affiliates including its and their joint venture partners,
software programs, employee records, mailing lists, tenant lists and
profiles, prospective tenant lists, accounts receivable and payable
ledgers, plans and projections, budgets, marketing data and other similar
matters (all such information being hereinafter referred to as
"Confidential Information").  Accordingly, Hansen agrees that he:

           (a)   will not, except as otherwise authorized by BSRT, divulge
to any person, firm, corporation, limited liability company, or
organization (hereinafter referred to as "Third Parties"), or use or cause
or authorize any Third Parties to use, the Confidential Information, except
as required by law or court order; and

           (b)   shall deliver, destroy or delete or cause to be
delivered, destroyed or deleted, as BSRT may request, any and all
Confidential Information, including drawings, notebooks, keys, data and
other documents and materials belonging to BSRT or its affiliates which is
in his possession or under his control relating to BSRT or its affiliates,
or the business of BSRT, regardless of the medium upon which it is stored,
and will deliver to BSRT any other property of BSRT or its affiliates which
is in his possession or under his control on or before October 1, 2000.

           For purposes of this Section 4, the term Confidential
Information shall not include information which: (i) was in the public
domain at the time of execution of this Agreement; (ii) hereafter becomes
part of the public domain by publication or otherwise through no
unauthorized action of Hansen; or (iii) was received by Hansen through a
source other than BSRT which is not under an obligation of confidentiality
to BSRT.  Hansen further acknowledges and agrees that the Confidential
Information is of great value to BSRT and its affiliates and that the
restrictions and agreements contained in this Agreement are reasonably
necessary to protect the Confidential Information and the goodwill of
BSRT's business.

     5.    EMPLOYMENT AGREEMENT.  This Agreement shall supersede the
Employment Agreement which shall be void and of no further effect upon the
later of: (a) the execution and delivery of this Agreement by each party;
or (b) October 1, 2000.

<PAGE>

     6.    RELEASE OF CLAIMS.  In consideration of the separation payment
and other promises contained herein, and as a natural inducement to BSRT to
enter into this Agreement, Hansen hereby releases and forever discharges
BSRT and its officers, trustees, employees, investors, shareholders,
affiliates and agents from, and agrees not to sue any of these parties
concerning any and all actions, liabilities, and other claims for relief
and remuneration whatsoever, arising out of, or in any way connected with
his employment by BSRT, including all matters in equity, contract, tort, or
for retaliatory discharge, or pursuant to statute, whether presently known
or unknown, suspected or unsuspected, that Hansen may possess arising from
any omissions, acts or facts existing as of October 1, 2000, including but
not limited to actions or claims under Title VII of the Civil Rights Act of
1964, as amended, the Americans with Disabilities Act, the Fair Labor
Standards Act, the Family and Medical Leave Act, the National Labor
Relations Act, as amended, and any Illinois or other state or local
statute, law or ordinance containing comparable prohibitions, including The
Illinois Human Rights Act, as well as any and all claims under the Employee
Retirement Income Security Act ("ERISA"), and any and all claims of any
kind for attorneys' fees or costs in connection with any case, controversy,
claim, charge, or otherwise; provided that nothing herein shall be deemed
to waive or release any claim: (a) under the Age Discrimination in
Employment Act of 1967, as amended; (b) arising after the date this
Agreement was executed; (c) for indemnification that Hansen may have under
BSRT's Third Amended and Restated Declaration of Trust; or (d) to enforce
this Agreement.

           In consideration of the separation payment and other promises
contained herein, and as a natural inducement to Hansen to enter into this
Agreement, BSRT hereby releases and forever discharges Hansen from any and
all actions, liabilities and other claims for relief or remuneration
whatsoever, arising out of, or in any way connected with, Hansen's
employment by BSRT or its affiliates or The Oak Realty Group, Inc.,
including all matters in equity, contract, tort or pursuant to statute
except for actions or claims: (x) alleging fraud or wilful misconduct by
Hansen; or (y) brought by BSRT under the Loan Agreement, Non-Recourse
Promissory Note, Stock Pledge and Security Agreement entered into between
Hansen and BSRT effective on January 12, 2000.

     7.    REPRESENTATIONS AND WARRANTIES.  Hansen represents and warrants
that he:

           (a)   has executed and delivered this Agreement knowingly and
voluntarily;

           (b)   has read and understands this Agreement in its entirety;

           (c)   has been advised and directed orally and in writing (and
this SECTION 7(c) constitutes such written direction) to seek legal counsel
and any other advice he wishes with respect to the terms of this Agreement
before executing it, that he has sought such advice and has had the
opportunity to negotiate the terms of this Agreement; and

           (d)   has not been forced by any employee or agent of BSRT to
execute and deliver this Agreement.

<PAGE>

     8.    COBRA.  Hansen shall have the right to continue his health
insurance coverage at group rates pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985 ("COBRA") beginning the later of November
1, 2000 and the execution and delivery of this Agreement by each party;
provided, however, that this election must be made no later than sixty (60)
days after that date.  Hansen's current health coverage will continue
through October 31, 2000.  Notwithstanding the above, if BSRT terminates
its health insurance plan prior to March 31, 2002, Hansen acknowledges and
agrees that his individual coverage pursuant to COBRA shall terminate.  If,
after the termination of the plan, BSRT arranges for alternative health
insurance coverage for its employees, BSRT shall offer Hansen the option of
participating in the alternative plan; provided that Hansen shall reimburse
BSRT for the premium associated with providing Hansen with coverage under
the alternative plan.

     9.    NO ADMISSION OF WRONGDOING.  This Agreement shall not in any
way be construed as an admission by Hansen of any acts of wrongdoing
whatsoever against him by BSRT or any of its officers, trustees, employers,
agents or advisors.

     10.   COUNTERPARTS.  The Agreement may be executed in one or more
counterparts, each of which when so executed and delivered shall be deemed
to be an original, and all of which taken together shall constitute but one
and the same document.

     11.   NOTICE.  Any notice required or permitted hereunder shall be
made in writing: (a) either by actual or delivery of the notice into the
hands of the party entitled; or (b) by depositing the notice in the United
States mail certified or registered, return receipt requested, all postage
prepaid and addressed to the party to whom notice is to be given at the
party's respective address set forth below, or such other address as the
party may from time to time designate by written notice to the other party.

           If to BSRT:

           Banyan Strategic Realty Trust
           Suite 2900
           150 South Wacker Drive
           Chicago, Illinois 60606
           Attn: General Counsel

           with copies to:

           Shefsky & Froelich Ltd.
           444 North Michigan Avenue
           Suite 2500
           Chicago, Illinois 60611
           Attn: Michael J. Choate, Esq.

           If to Hansen:

           5524 W. Main Street
           Morton Grove, Illinois  60053

           with a copy to:

           Much Shelist Freed Denenberg Ament & Rubinstein, P.C.
           200 N. LaSalle Street
           Suite 2100
           Chicago, Illinois  60601
           Attn: Don Hershman, Esq.

<PAGE>

The notice shall be deemed to be received on the earlier of (x) the date of
its actual receipt by the party entitled thereto and (y) the third business
day following the date of mailing.

     12.   AMENDMENT AND WAIVER.  No amendment or modification to this
Agreement shall be valid or binding on the BSRT unless made in writing and
signed by an officer of BSRT duly authorized by the board or upon Hansen
unless made in writing and signed by Hansen. The waiver by BSRT or Hansen
of the breach of any provision of this Agreement shall not operate or be
construed as a waiver of any subsequent breach.

     13.   ENTIRE AGREEMENT.  This Agreement and the Confidentiality
Agreement attached hereto constitutes the entire agreement between BSRT and
Hansen with respect to the subject matter hereof. There are no
representations, warranties, agreements or commitments between the parties
hereto with respect to Hansen's separation and release as set forth herein.

     14.   GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the internal laws (and not the law of
conflicts) of the State of Illinois.  The parties agree that any suit,
action or proceeding with respect to this Agreement shall be brought in the
courts of Cook County in the State of Illinois or in the U.S. District
Court for the Northern District of Illinois.  The parties hereto accept the
exclusive jurisdiction of those courts for the purpose of any such suit,
action or proceeding.  Venue for any such action, in addition to any other
venue permitted by statute, will be Cook County, Illinois.

     15.   SEVERABILITY.  If any provision of this Agreement shall, for
any reason, be held unenforceable, the provision shall be severed from this
Agreement unless, as a result of severance, the Agreement fails to reflect
the basis intent of the parties on the date hereof.

     16.   BENEFIT.  This Agreement shall be binding upon, and inure to
the benefit of, and shall be enforceable by, the successors, assigns,
transferees or heirs of the parties hereto.

     17.   COST OF ENFORCEMENT.  In any suit or proceeding seeking to
enforce the terms, covenants or conditions of this Agreement, the
prevailing party shall, in addition to all of the remedies and relief that
may be available under this Agreement or applicable law, recover his or its
reasonable attorneys' fees and costs as shall be determined and awarded by
the court or the arbitrator.

     IN WITNESS WHEREOF, this Agreement is entered into on the day and
year first written above.

                            BANYAN STRATEGIC REALTY TRUST

                            By:
                                  -------------------------------------
                                  Name: Robert G. Higgins
                                  Title: Vice President General Counsel

                            ________________________________
                            Neil D. Hansen

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