Document:

EX-10.2

Lionbridge Change of Control Plan – Filed as Exhibit 10.1 to Registrant’s Current Report on
Form 8-K filed with the Securities and Exchange Commission on November 7, 2006 and incorporated
herein by reference.EX-10.1

Exhibit 10.1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS NOTE MAY NOT BE TRANSFERRED EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR
(B) IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

VIASPACE INC.

PROMISSORY NOTE

$250,000 September 10, 2007

For value received, VIASPACE Inc., a Nevada company with its offices located at 171 North
Altadena Drive, Suite 101, Pasadena, CA 91107 (the “Company”), promises to pay to Rhino
Steel Manufacturing Ltd., a BVI company with its offices located at Pasea Estate, Road Town,
Tortola, British Virgin Islands (the “Holder”), on the Maturity Date (as defined below),
(i) the principal amount of Two Hundred and Fifty Thousand Dollars ($250,000) plus (ii) any and all
interest accrued but unpaid thereon. This Note is one of a series of notes (collectively, the
“Notes”) that may be issued by the Company to the Holder, who qualifies as an “accredited
investor” as such term is defined in Regulation D under the Securities Act of 1933, as amended (the
“Securities Act”).

This Note is subject to the following terms and conditions:

1. Maturity.

1.1 Maturity Date. This Note will automatically mature and be due and payable on the
earlier of (a) December 10, 2007 (the “Maturity Date”) or (b) the occurrence of an Event of
Default (as defined in Section 3); provided, however, that the Holder, at its option on or after
the maturity date, may convert this Note into another three-month note under the same terms and
condition as this Note.

1.2 Interest. Interest shall accrue from the date of this Note on the unpaid
principal amount at a rate equal to ten percent (10%) per annum, computed on the basis of the
actual number of days elapsed and a year of 365 days from the date of this Note until the principal
amount and all interest accrued thereon are paid. Interest shall not be due and payable until the
earliest of (i) the Maturity Date or (ii) the occurrence of an Event of Default.

2. Payment. Except as set forth herein, all payments shall be made in lawful money of
the United States of America at the principal offices of the Company. Payment shall be credited
first to the accrued interest then due and payable and the remainder applied to principal. The
Company may voluntarily prepay this Note in whole or in part at any time and from time to time
without penalty, together with interest accrued on the amount prepaid through the date of
prepayment.

3. Events of Default. The entire unpaid principal sum of this Note, together with any
and all interest accrued but unpaid thereon, shall become immediately due and payable upon the
occurrence of an Event of Default. An “Event of Default” shall be deemed to have occurred
if:

(a) the Company shall (i) apply for or consent to the appointment of a receiver, trustee or
liquidator of itself or of its property, (ii) be unable, or admit in writing its inability, to pay
its debts as they mature, (iii) make a general assignment for the benefit of creditors, (iv) be
adjudicated bankrupt or insolvent, (v) file a voluntary petition in bankruptcy, or a petition or
answer seeking reorganization or an arrangement with creditors to take advantage of any insolvency
law, or an answer admitting the material allegations of a bankruptcy, reorganization or insolvency
petition filed against it, (vi) take corporate action for the purpose of effecting any of the
foregoing, or (vii) have an order for relief entered against it in any proceeding under the United
States Bankruptcy Code;

(b) An order, judgment or decree shall be entered, without the application, approval or
consent of the Company by any court of competent jurisdiction, approving a petition seeking
reorganization of the Company or appointing a receiver, trustee or liquidator of the Company or of
all or a substantial part of its assets, and such order, judgment or decree shall continue unstayed
and in effect for any period of sixty (60) consecutive days; or

(c) the Company shall fail to pay as and when due any principal or interest hereunder and such
nonpayment shall continue uncured for a period of five business days after written notice by the
Holder thereof.

4. Transfer; Successors and Assigns. The Holder may not sell, assign, pledge, dispose
of or otherwise transfer this Note or any interest herein without the prior written consent of the
Company; provided, however, a Holder that is a partnership, corporation, trust, joint venture,
unincorporated organization or other entity may transfer this Note to an Affiliate (as defined
below) without the prior written consent of the Company pursuant to the terms of this Section 4.
Subject to the preceding sentence, this Note may be transferred only upon surrender of the original
Note for registration of transfer, duly endorsed, or accompanied by a duly executed written
instrument of transfer in form satisfactory to the Company. Thereupon, a new note for the same
principal amount and interest will be issued to, and registered in the name, of, the transferee.
Interest and principal are payable only to the registered holder of this Note. The terms and
conditions of this Note shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties. For purposes of this Note, an “Affiliate” shall mean, with
respect to any Holder that is a partnership, corporation, trust, joint venture, unincorporated
organization or other entity, any partnership, corporation, trust, joint venture, unincorporated
organization or other entity that is an “accredited investor” within the meaning of Rule 501
promulgated under the Securities Act, and directly or indirectly controls, is controlled by or is
under common control with such Holder, and the term “control” shall mean, with respect to
such Holder, the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of such Holder, whether through ownership of voting securities, by
contract or otherwise.

5. Governing Law. This Note and all acts and transactions pursuant hereto and the
rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of Nevada, without giving effect to principles of conflicts
of law and choice of law that would cause the laws of any other jurisdiction to apply.

6. Notices. All notices required or permitted hereunder shall be in writing and shall
be deemed effectively given: (a) upon personal delivery to the party to be notified; (b) when sent
by confirmed telecopy or facsimile if sent during normal business hours of the recipient, if not,
then on the next business day; (c) five days after having been sent by registered or certified
mail, return receipt requested, postage prepaid; or (d) the next business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt. All communications shall be sent to the Company and the Holder at the addresses as set
forth in the first paragraph of this Note or at such other address as the Company or the Holder may
designate by ten days’ advance written notice to the other party hereto.

7. Amendments and Waivers. This Note may be amended or modified, and any provision
hereof may be waived with the written consent of the Company and the Holder. No waivers of any
term, condition or provision of this Note, in any one or more instances, shall be deemed to be, or
construed as, a further or continuing waiver of any such term, condition or provision.

8. Recourse; Shareholders, Officers and Directors Not Liable. Recourse under this
Note shall be to the general unsecured assets of the Company only. In no event shall any
shareholder, officer or director of the Company be liable for any amounts due or payable pursuant
to this Note.

9. Headings. The headings in this Note are for purposes of reference only, and shall
not limit or otherwise affect the meaning hereof.

10. Rights Reserved. No provisions of this Note and no right or option granted or
conferred herein shall in any way limit, affect or abridge the exercise by the Company of any of
its corporate rights or powers, including without limitation, its corporate right and power to
issue securities, recapitalize, amend its Certificate of Incorporation, reorganize, consolidate or
merge with or into another corporation, or transfer or encumber all or any part of its property or
assets.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed and delivered by its
authorized officer, as of the date first above written.

	 	 	 	COMPANY

	 	 	 	VIASPACE Inc.

	 	 	 	By:
/s/ Carl Kukkonen

	 	 	Name:
Carl Kukkonen

	 	 	 	Title: CEOEX-10.1

Marcus & Millichap

PURCHASE AGREEMENT

THIS DOCUMENT IS MORE THAN A RECEIPT FOR MONEY. IT IS INTENDED TO BE A LEGALLY BINDING
AGREEMENT. READ IT CAREFULLY.

Triple Net Properties, LLC, a Virginia limited liability company, or its permitted
assignee(s) hereunder shall be hereafter referred to as “Buyer”.

 St. Mary Physicians Center, LLC, a California limited liability company   shall be
hereafter referred to as “Seller”.

Buyer shall deliver to Escrow Holder as defined in Paragraph 3 or to Marcus & Millichap Real
Estate Investment Brokerage Company (“Agent”), as agent for [ X ] Seller [ ] Buyer [ ] Seller
and Buyer the sum of five hundred thousand   dollars ($ 500,000 ) in the form of
 a cashier’s check or wire transfer  . This sum is a deposit (“Deposit”) to be applied
to the purchase price of that certain real property, (i) including the land, (ii) all rights,
privileges and easements appurtenant to the land, (iii) all of Seller’s rights to the
improvements and fixtures located on the land, (iv) all of Seller’s rights to tangible personal
property (including furniture, furnishings and equipment), (v) all of Seller’s rights to
intangible personal property (including permits, licenses, certificates, and contracts approved
by Buyer during the due diligence) and (vi) all leases and tenant deposits (referred to as the
“Property”) located in the City of  Long Beach  , County of  Los Angeles , State
of  California , and more particularly described as follows:

Medical/office building located at:

1043 Elm Avenue, Long Beach, California 90813

APN #’s: 7273-008-030 & 7273-008-020

TERMS AND CONDITIONS

Seller agrees to sell the Property, and Buyer agrees to purchase the Property, on the following
terms and conditions:

	 	1)	 	PURCHASE PRICE: The purchase price for the Property is thirteen million eight
hundred thousand     dollars ($13,800,000). Buyer’s Deposit, pending Seller’s
execution of this Purchase Agreement (the “Agreement”), shall be:

	 	(A)	 	[ X ] delivered directly to the Escrow Company indicated in Paragraph 3 of this
Agreement, by check or wire, upon mutual execution of this Agreement.

	 	(B)	 	[ ] delivered to Agent and Agent shall within   (
) calendar days deposit Buyer’s deposit check into a Marcus & Millichap Trust
Account;

If option (A) is selected, Agent shall deliver and deposit same in escrow as provided in
Paragraph 3 below. The balance of the purchase price shall be payable at close of escrow
pursuant to the terms stated below.

	 	2)	 	DOWN PAYMENT: Buyer shall make a cash down payment of  five million five hundred
twenty thousand dollars ($ 5,520,000  ).

	 	3)	 	ESCROW: Within   three   (  3  ) calendar days after the Effective Date
(as defined in a separate paragraph below)  Buyer and Seller    shall open escrow
with  First American Title Insurance Company, Brian Serikaku, Phone:714-250-8405 
(the “Escrow Holder”) by the simultaneous deposit of a copy of this Agreement and Buyer’s
Deposit with the Escrow Holder.

1

Within three (3) calendar days from Effective Date (as defined in paragraph
37 below) Seller and Buyer agree to prepare and execute such escrow instructions, consistent
herewith, as may be necessary and appropriate to close the transaction. Should said
instructions fail to be executed as required, Escrow Holder shall and is hereby directed to
close escrow pursuant to the terms and conditions of this Agreement. Close of escrow (or the
“Closing Date”, which shall mean the date on which the deed transferring title is recorded)
shall occur within thirty-five (35) calendar days of the Effective Date of this
Agreement (as defined in a separate paragraph below). Upon not less than five (5) calendar
days prior to the then scheduled closing, Seller may, by written notice to Buyer, extend the
Closing Date one or more times for up to an additional aggregate forty-five (45) calendar
days as Seller deems necessary to consummate the defeasance of Seller’s existing financing
and obtain the release of the Property from the lien of the existing Deed of Trust (Buyer
acknowledging that Seller cannot initiate the defeasement process until Buyer has waived all
contingencies). Escrow fee shall be paid by   1/2 Buyer 1/2 Seller All other closing
costs shall be paid in accordance with the custom in the county in which the Property is
located.

4) PRORATIONS:

	 	4.1)	 	The following shall be prorated between Seller and Buyer as of the Closing Date with the
Buyer being deemed the owner of the Property as of the Closing Date:

	 	(a)	 	Rents: Buyer will receive a credit at closing for all rents collected by Seller
prior to the Closing and allocable to the period from and after the Closing Date 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 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 tenants after 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.

	 	(b)	 	CAM Expenses: To the extent that tenants are reimbursing the landlord for common
area maintenance, property taxes 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 Date. 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.

	 	(c)	 	To assist the Buyer in preparing “true up” reconciliations at the end of the CAM Lease
Year, the Seller shall deliver to the Buyer at Closing records of all of the Seller’s CAM
Charge expenditures.

	 	(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 Date occurs (the “Current
Billing Period”), shall be prorated on a per diem basis based upon the number of days in the
Current Billing Period prior to the Closing Date and the number of days in the Current
Billing Period from and after the Closing Date, 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 Date, 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”), Seller will, at Closing use its reasonable efforts to cause Buyer to be named as
beneficiary under the Non-Cash Security Deposits. Buyer will not receive a credit against
the Purchase Price for such Non-Cash Security Deposits. In the event that the Buyer cannot
be named the beneficiary under the Non-Cash Security Deposits or is otherwise unable to
transfer any Non-Cash Security Deposits to Buyer one (1) day prior to Closing, then Seller
shall deposit the original of any such Non-Cash Security Deposits into escrow one(1) day
prior to Closing to be held pursuant to mutually satisfactory instructions providing for the
release thereof to Seller in order to effectuate such transfer to Buyer or, as requested by
Buyer, to draw thereon if and when permitted by the lease pursuant to which same was posted
(“Non-Cash Security Deposit Obligations”). Notwithstanding anything to the contrary, Seller
hereby acknowledges and agrees that (a) Seller’s Non-Cash Security Deposit Obligations are a
condition to closing, and (b) if Seller is unable to transfer any Non-Cash Security Deposits
to Buyer one (1) day prior to Closing, Seller shall continue to use good faith reasonable
efforts to transfer any such Non-Cash Security Deposits to Buyer after Closing.

	 	(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 Date and which has as its denominator the number of months in the base term of the
Lease. Seller shall pay for all tenant improvement allowances and leasing commissions 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 as of the Closing Date.

	 	4.2)	 	CALCULATION; REPRORATION: Seller shall prepare and deliver to Buyer no later than five
(5) days prior to the Closing Date an estimated closing statement which shall set forth the
costs payable under subsection (c) and the prorations and credits provided for in this
section and subsection (d) 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. Buyer shall notify Seller within two (2) days after
its receipt of such estimated closing statement of any items which Buyer disputes, and the
parties shall attempt in good faith to reconcile any differences not later than one (1) day
before the Closing Date. The estimated closing statement as adjusted as aforesaid and
approved in writing by the parties (which shall not be withheld if prepared in accordance
with this Agreement) 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 any adjustment shall be made, if at all, within sixty (60)
days after the Closing Date (except with respect to the property tax component of 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.

	 	4.3)	 	ITEMS NOT PRORATED: Seller and Buyer agree that (a) on the Closing Date, 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 be responsible for
arranging for its own insurance as of the Closing Date; and (c) utilities, including
telephone, electricity, water and gas, shall be read on the Closing Date 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 Date, 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 Date,
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 Section 1.2 above.

	 	4.4)	 	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.

4.5) SURVIVAL: This Section shall survive the Closing Date.

	 	5)	 	TITLE: Seller has heretofore caused to be delivered to Buyer a preliminary title report
with copies of all exceptions issued by  First American Title Insurance Company   
(the “Title Company”) on the Property. Within seven (7) business days after the Effective
Date of the Agreement, Buyer shall either unconditionally approve in writing the exceptions
contained in the title report or specify in writing any exceptions to which Buyer reasonably
objects. If Buyer timely objects to any exceptions Seller shall, within    five   
( 5  ) business days after receipt of Buyer’s objections, deliver to Buyer written
notice that either (i) Seller will, at Seller’s expense, remove the exception(s) to which
Buyer has objected on or before the Closing Date or (ii) Seller is unwilling or unable to
eliminate said exception(s). If Seller fails to so notify Buyer, or Seller notifies that it
is unwilling or unable to remove any such exception by the Closing Date, Buyer may elect by
written notice to Seller within three (3) business days thereafter to terminate this
Agreement and receive back the entire Deposit, in which event Buyer and Seller shall have no
further obligations under this Agreement; otherwise Buyer shall purchase the Property
subject to such exception(s) and shall be deemed to have waived such objection. If Buyer
does not timely notify Seller of any title exception objection as above described, Buyer
shall be deemed to have approved such exception. Notwithstanding anything to the contrary,
if prior to Closing Buyer shall receive an updated title report which discloses any new
liens, encumbrances or other matters not previously accepted (other than survey exceptions
which Buyer has approved pursuant to subparagraph 8.5 hereof and other than matters which
Buyer’s physical inspection of the Property discloses) Buyer may, within three (3) business
days following receipt thereof, notify Seller in writing of any new exceptions to which
Buyer reasonably objects, and the process described above in this Paragraph 5 shall apply
thereto.

Seller shall convey by grant deed to Buyer (or to such other person or entity as Buyer may
specify) marketable fee title subject only to the exceptions approved by Buyer in accordance
with this Agreement. Title shall be insured by the Title Company in the amount of the
Purchase Price by an ALTA Extended Coverage Owner’s Policy of Title Insurance (Form B, rev.
10/17/92), which shall provide full coverage against mechanics’ and materialmen’s liens and
shall contain such endorsements as Purchaser may reasonably require. Seller will be
responsible for payment of the CLTA portion of the title policy and Buyer will be responsible
for the ALTA extended coverage plus cost of all endorsements. Buyer’s inability to obtain an
ALTA policy (rather than CLTA policy) or any endorsements (other than a mechanic’s lien
endorsement) in a timely fashion, or at all, shall not be a condition to closing, and Seller
shall have no obligation regarding a new or updated survey. At closing, Buyer shall provide
Seller with an ALTA lender’s policy and Buyer shall pay the additional premium for same.

Seller shall be prohibited from creating or consenting to any lien, lease or tenancy,
encumbrance, easement, reservation, or similar document between the execution of the
Agreement and the Close of Escrow, without obtaining the prior written consent of Buyer which
shall not be unreasonably withheld or delayed. Buyer shall have the right to review and
approve or disapprove any encumbrance placed on the property after the execution of the
Agreement (both during the due diligence period and after the due diligence period until
closing). If Buyer disapproves any such encumbrance, Buyer will have the right to terminate
the Agreement and receive a refund of the entire Deposit (plus interest accrued thereon).

6) FINANCING CONTINGENCIES

	 	6.1)	 	SELLER CARRIES BACK FIRST: The balance of the purchase price shall be paid as follows:
The balance of the purchase price in the amount of eight million two hundred eighty
thousand dollars ($ 8,280.00) shall be evidenced by a _first lien     deed of
trust, an Assignment of Rents, a Personal Property Security Agreement, a UGG-1 and a Fixture
Filing, all to be executed by Buyer in favor of Seller and delivered to Seller upon the
Closing Date. Said note shall bear interest at the rate of five and eight tenths
percent (5.8%) per year, (select one “X”) _X     fixed rate      other      , and shall
be payable as follows: _Monthly interest only payments of forty thousand twenty dollars
($40,020). Said note shall be due and payable _twenty-four  (24) calendar
months from the Closing Date and shall be prepayable, principal and/or interest, at any
time, and from time to time, in whole or in part, without premium, notice, or penalty. Said
promissory note and other loan documents shall be in the form attached as Exhibit “A” and
shall be (select one “X”)      assumable      assumable one time only _X     not
assumable.

7) PEST CONTROL CONTINGENCIES: Not applicable.

8) INSPECTION CONTINGENCIES:

	 	8.1)	 	BOOKS AND RECORDS: To the extent Seller is in actual possession of same, Seller agrees
to provide Buyer with the items listed below within  one   (  1  ) business
day following the Effective Date:

	 	a.	 	All rental agreements, leases, service contracts, insurance information, latest
tax bill(s) and other written agreements, written code violations or other notices which
affect the Property.

	 	b.	 	The operating statements of the Property for the sixteen  (16)
calendar months immediately preceding the Effective Date hereof.

	 	c.	 	For commercial properties, copies of whatever documents the Seller may have
regarding the financial condition, business prospects or prospective continued occupancy
of any tenant (including but not limited to financial statements, credit reports, etc.).

	 	d.	 	A complete and current rent roll, including a schedule of all tenant deposits and
fees.

	 	e.	 	A written inventory of all items of Personal Property, if any, to be conveyed to
Buyer and included as part of the Purchase Price at close of escrow. Buyer shall be
entitled to be conveyed only such personal property as is shown in such inventory.

	 	f.	 	A report paid for by Seller by    Natural Hazard Disclosure, LLC    , a
professional provider, containing the Natural Hazard Disclosures (as defined below)
concerning the Property. “Natural Hazard Disclosures” shall mean whether the Property
is located within: (1) Special Flood Hazard Area; (2) Dam Failure Inundation Area; (3)
Earthquake Fault Zone; (4) Seismic Hazard Zone; (5) High Fire Severity Area; and/or (6)
Wildland Fire Area. Seller represents and warrants that, unless otherwise noted by
Seller to Buyer in writing, Seller is unaware of any inaccuracies in the Natural Hazard
Disclosures.

	 	g.	 	Any and all documents, of any type or nature, that in any way references the
existence of mold or mold-related problems with the Property or any toxic substance on
or about the Property.

	 	h.	 	Any and all documents, of any type or nature that in any way references the
existence of lead-based paint or lead-based paint problems with the Property.

	 	i.	 	Any and all documents, of any type or nature, that in any way reference the
existence of litigation affecting the property, together with a schedule of any
litigation.

	 	j.	 	Most recent C.A.M reconciliation, Phase I dated November 20, 1995 and an ALTA
Survey dated October 25, 1997.

	 	k.	 	2006 and 2007 Year-to-Date General Ledgers.

Buyer shall acknowledge receipt of these items in writing. Within seven (7) calendar
days after the Effective Date of the Agreement, Buyer shall review and approve in writing
each of these items. If Buyer fails to unconditionally approve in writing these items within
the specified time, this Agreement shall be rendered null and void, Buyer’s entire deposit
shall be returned, and Buyer and Seller shall have no further obligations hereunder.

2

8.2) PHYSICAL INSPECTION: Within seven (7) calendar days after the Effective Date of the
Agreement, Buyer shall inspect the physical condition of the Property (without disturbing
tenants), including, but not limited to the soil conditions and the presence or absence of
lead-based paint and other hazardous materials on or about the Property, and to notify the
Seller in writing that Buyer approves same. Seller shall provide reasonable access to Buyer
during normal business hours to conduct physical inspection(s). If Buyer fails to
unconditionally approve in writing the physical condition of the Property within the
specified time, this Agreement shall be terminated, Buyer’s entire deposit shall be returned,
and Seller shall have no further obligations hereunder. No invasive tests shall be performed
without Seller’s prior written approval and then only upon such terms and conditions as
Seller shall reasonably require. Buyer shall continue to have the right to conduct
inspection(s) of the Property through closing, although Buyer’s satisfaction with such
additional inspections is not a condition of closing.

	 	8.3)	 	STATE AND LOCAL LAWS: Within seven (7) calendar days after the Effective Date of the
Agreement, Buyer shall investigate the financial condition, business prospects and
prospective continued occupancy of any tenant of the Property. Buyer shall e allowed to
conduct interviews of the tenants. Seller shall cooperate with Buyer and shall provide
Buyer in writing with all such information in Seller’s possession, but shall not be
responsible for any tenant’s refusal to provide such information. If buyer fails to
unconditionally approve in writing tenant financial condition within the specified time,
this Agreement shall be terminated, Buyer’s entire Deposit shall be returned, and Seller
shall have no further obligations hereunder. No facts arising or first coming to Seller’s
attention after Buyer’s removal of the above contingency shall relieve Buyer of its
obligations under this Agreement.

	 	8.4)	 	TENANT FINANCIAL INFORMATION (Leased Properties): Within seven (7) calendar days after
the Effective Date of the Agreement, Buyer shall investigate the financial condition,
business prospects and prospective continued occupancy of any tenant of the Property. Buyer
shall be allowed to conduct interviews of the tenants. Seller shall cooperate with Buyer
and shall provide Buyer in writing with all such information in Seller’s possession, but
shall not be responsible for any tenant’s refusal to provide such information. If Buyer
fails to unconditionally approve in writing tenant financial condition within the specified
time, this Agreement shall be terminated, Buyer’s entire Deposit shall be returned, and
Seller shall have no further obligations hereunder. No facts arising or first coming to
Seller’s attention after Buyer’s removal of the above contingency shall relieve Buyer of its
obligations under this Agreement.

	 	8.5)	 	SURVEY: Buyer has ordered a new survey of the Property (at Buyer’s sole expense). If
Buyer fails to unconditionally approve in writing such survey and all exceptions therein by
5:00PM Pacific Daylight Time, June 27, 2007, or seven (7) business days after the Effective
Date, whichever is later, this Agreement shall be terminated, Buyer’s entire Deposit shall
be immediately returned, and Seller shall have no further obligations hereunder.

8.6) 3-14 REPRESENTATION LETTER: Intentionally deleted.

	 	8.7)	 	CONFIDENTIALITY: Buyer agrees that all information and documents concerning the
Property and this transaction, including, without limitation, the materials and information
delivered to Buyer by Seller, are strictly confidential. Buyer shall also treat as strictly
confidential any and all additional information concerning the Property (including, without
limitation, any environmental reports obtained by Buyer) obtained or developed by Buyer or
its agents, representatives and employees in connection with Buyer’s due diligence
activities. Should the transactions contemplated by this Agreement fail to be consummated
for any reason, Buyer shall treat the contents of such documents and information as strictly
confidential; provided that Buyer may disclose information regarding the Property to its
assignee(s), consultants of Buyer, any prospective lender and to Buyer’s agents and
attorneys involved in this transaction. Prior to disclosing information to any prospective
lender, agents, attorneys, affiliates or equity investors, Buyer shall take reasonable
measures to assure continued confidentiality of such information. Without limitation upon
the foregoing, Buyer and Seller shall not publicize through the press or other media the
pendency or completion of this transaction or respond to press or media inquiries respecting
same.

9) DEPOSIT INCREASE: Not applicable.

	 	10)	 	DEPOSIT TRANSFER: Buyer’s Deposit shall remain in trust, if held by Agent, or in escrow
if previously deposited in escrow, until removal of the inspection contingencies set forth
in paragraph(s)  5, 8.1, 8.2, 8.3, 8.4, and 8.5   hereof. Upon removal of said
contingencies, Buyer’s Deposit shall be delivered to escrow by Agent (if same has been held
in trust by Agent); a grant deed duly executed by Seller, sufficient to convey title to
Buyer, shall be delivered to escrow by Seller; and Escrow Holder shall release immediately
from escrow and deliver to Seller fifty thousand dollars ($50,000) of Buyer’s Deposit. The
remainder of Buyer’s Deposit (including increases, if any) shall remain in escrow until
closing or termination of the Agreement. Buyer acknowledges and agrees that, in the event
Buyer defaults on this Agreement after removal of contingencies, Buyer’s Deposit is
non-refundable and shall constitute liquidated damages to Seller. Seller shall hold said
fifty thousand dollar ($50,000) portion of Buyer’s Deposit subject to the remaining terms
and conditions of this Agreement. If the Property is made unmarketable by Seller, or Seller
should default on this Agreement, the entire Deposit shall be returned to Buyer and deed
shall be returned to Seller. The entire Deposit shall be credited to the Purchase Price at
the close of escrow unless otherwise provided herein. If Seller defaults on this Agreement
after Seller has received the Deposit, Seller understands and agrees that Buyer’s entire
Deposit must be returned to Buyer immediately.

	 	 	 
	Buyer’s Initials /s/ RHSeller’s Initials/s/ GD

	 

	11)

	 	ESTOPPEL CERTIFICATE CONTINGENCY (Leased Properties):

	11.1)	 	As a condition of Closing, Seller shall obtain and deliver to Buyer,  five   
(  5  ) days prior to closing or earlier, estoppel certificates in the form attached as
Exhibit “B” from lessees or tenants representing at least  eighty-five  percent
( 85 %) of the occupied square footage. As a condition of closing the above
requirement shall include estoppel certificates from St. Mary’s Medical Center and Pacific
Shores Medical Group (the “Major Tenants”). To the extent the form of estoppel certificate
attached hereto as Exhibit B requests information in addition to or different than that
required to be given pursuant to a particular tenant lease, then this condition will be
satisfied for such tenant(s) if such tenant(s) executes an estoppel certificate in the form
and content required pursuant to its tenant lease. Except with respect to the Major
Tenants, if Seller is unable to obtain an estoppel certificate from a sufficient number of
tenants to satisfy the percentage set forth above, then, in lieu thereof, Seller shall have
the option to provide Buyer with a certificate pertaining to no more than 25% of the
occupied square footage of the building covering the same matters that would have been set
forth in the estoppel certificates, except that the third sentence of Section 7 of the
estoppel certificate shall be deleted and replaced with the following “to Seller’s knowledge
(as defined in the Purchase Agreement to which this estoppel certificate relates) Tenant has
not declared bankruptcy or similar insolvency proceeding and no such proceeding has been
commenced against tenant seeking such relief” (and if, after the closing, Seller delivers to
Buyer an estoppel certificate from a tenant for whom Seller executed a Seller’s
certification at the closing, then Seller thereafter shall be released from said
certification). Subject to the preceding sentence, Seller’s liability in connection with
any Seller’s certificate shall not merge into any instrument or conveyance delivered at the
Closing Date. If Seller is unable to obtain an estoppel certificate from a sufficient
number of tenants to satisfy the percentage set forth above, then, in lieu thereof, Seller
shall have the option to provide Buyer with a certificate pertaining to no more than 25% of
the occupied square footage of the covering the same matters that would have been set forth
in the estoppel certificates (and if, after the closing, Seller delivers to Buyer an
estoppel certificate from a tenant for whom Seller executed a Seller’s certification at the
closing, then Seller thereafter shall be released from said certification). Subject to the
preceding sentence, Seller’s liability in connection with any Seller’s certificate shall not
merge into any instrument or conveyance delivered at the Closing Date hereto as Exhibit B
requests information in addition to or different than that required to be given pursuant to
a particular tenant lease, then this condition will be satisfied for such tenant(s) if such
tenant(s) executes an estoppel certificate in the form and content required pursuant to its
tenant lease. hereto as Exhibit B requests information in addition to or different than that
required to be given pursuant to a particular tenant lease, then this condition will be
satisfied for such tenant(s) if such tenant(s) executes an estoppel certificate in the form
and content required pursuant to its tenant lease. Buyer If Seller is unable to obtain an
estoppel certificate from a sufficient number of tenants to satisfy the percentage set forth
above, then, in lieu thereof, Seller shall have the option to provide Buyer with a
certificate pertaining to no more than 25% of the occupied square footage of the covering
the same matters that would have been set forth in the estoppel certificates (and if, after
the closing, Seller delivers to Buyer an estoppel certificate from a tenant for whom Seller
executed a Seller’s certification at the closing, then Seller thereafter shall be released
from said certification). Subject to the preceding sentence, Seller’s liability in
connection with any Seller’s certificate shall not merge into any instrument or conveyance
delivered at the Closing Date shall have  two  (  2  ) business days
following Buyer’s receipt of estoppel certificates to review and approve the estoppel
certificates. Buyer may only disapprove said certificates, and cancel the Agreement, if the
certificates reflect a discrepancy materially affecting the economics of the transaction, or
a previously undisclosed material breach of a material lease. Upon such disapproval,
Buyer’s entire deposit shall be returned, and the parties shall have no further obligations
hereunder. Seller’s obligations respecting the obtaining of such tenant estoppels is
limited to good faith commercially reasonable efforts and Seller shall have no obligation to
place a tenant in default or to bring legal action in order to obtain same.

	 	12)	 	SERVICE AND TENANT CONTRACTS/OTHER MATERIAL CHANGES: Buyer shall have the right to
review and approve or disapprove all service and other agreements during the due diligence
period. Any contracts rejected by Buyer will be terminated at the closing at Seller’s cost.
After Buyer has removed all contingencies, Seller shall not, without the prior written
consent of Buyer which cannot be unreasonably withheld, enter into any new service or
tenant contracts that cannot be canceled with 30 days notice and without penalty. Seller
shall not make any material changes to the Property, do any act, or enter into any
agreements of any kind that materially changes the value of the Property or the rights of
the buyer as they relate to the Property.

	 	13)	 	PERSONAL PROPERTY: Title to any personal property to be conveyed to Buyer in connection
with the sale of the Property shall be conveyed to Buyer by Bill of Sale on the Closing Date
free and clear of all encumbrances (except those approved by Buyer as provided above). The
price of these items shall be included in the Purchase Price for the Property, and Buyer
agrees to accept all such personal property in “as is” condition.

	 	14)	 	CONDITION OF PROPERTY: (a) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE REPRESENTATIONS AND WARRANTIES OF SELLER
CONTAINED IN PARAGRAPH 40 BELOW, THE PROPERTY SHALL BE SOLD BY SELLER AND ACQUIRED BY BUYER
IN ITS “AS IS” CONDITION AS OF THE DATE OF CLOSING. BUYER ACKNOWLEDGES AND AGREES THAT
BUYER IS KNOWLEDGEABLE AND SOPHISTICATED IN REAL ESTATE MATTERS AND HAS OR WILL HAVE RELIED
SOLELY UPON ITS OR ITS AGENTS’ OWN REVIEW AND INSPECTION OF THE PROPERTY AND ITS OWN
FAMILIARITY WITH THE PROPERTY AND OTHER PROPERTIES IN THE SOUTHERN CALIFORNIA MARKET AND THE
REQUIREMENTS OF LOCAL LAW, AND BY VIRTUE THEREOF, EXCEPT TO THE EXTENT BUYER RELIES UPON ANY
REPRESENTATION OR WARRANTY OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT (ALL OF WHICH
BUYER ACKNOWLEDGES ARE MADE SOLELY TO THE ACTUAL KNOWLEDGE OF SELLER WITHOUT INDEPENDENT
INVESTIGATION OR INQUIRY), BUYER IS ACQUIRING THE PROPERTY IN AN “AS-IS” CONDITION AND NOT
IN RELIANCE UPON ANY STATEMENT, REPRESENTATION, COVENANT OR WARRANTY, EXPRESS OR IMPLIED, OF
SELLER OR ANY OF ITS AFFILIATES, DIRECTORS, SHAREHOLDERS, OFFICERS, AGENTS, ATTORNEYS OR
CONSULTANTS WITH RESPECT TO THE PROPERTY, THE VALUE, PHYSICAL CONDITION, CONDITION OF TITLE
TO, UTILITY, MARKETABILITY OR FITNESS OF THE PROPERTY FOR ANY PURPOSE; THE COMPLETENESS,
ACCURACY OR AUTHENTICITY OF ANY APPRAISALS, REPORTS, STUDIES OR OTHER INFORMATION WHICH MAY
HAVE BEEN FURNISHED BY SELLER TO BUYER; MATTERS WHICH A PHYSICAL INSPECTION OR SURVEY
THEREOF WOULD DISCLOSE; THE CONTINUING EFFECTIVENESS OR VALIDITY OR AVAILABILITY OF ANY
AGREEMENTS, PERMITS OR ENTITLEMENTS FOR ANY PORTION OF THE PROPERTY, COMPLIANCE WITH
APPLICABLE ZONING AND OTHER CODES, ORDINANCES OR REGULATIONS OF GOVERNMENTAL OR
QUASI-GOVERNMENTAL AUTHORITIES, INCLUDING (WITHOUT LIMITATION) THE AMERICANS WITH
DISABILITIES ACT; THE ECONOMIC FEASIBILITY OF OWNERSHIP THEREOF OR OPERATIONS RELATED
THERETO; THE AVAILABILITY OF FINANCING FOR THE PROPERTY; THE PRESENCE OR ABSENCE OF ANY
HAZARDOUS SUBSTANCES, IN, ON, UNDER, AROUND, ABOUT OR AFFECTING THE PROPERTY, THE COMPLIANCE
OF THE PROPERTY AND SELLER WITH ANY LAWS REGULATING HAZARDOUS SUBSTANCES, INCLUDING
PROVISION OF ANY NOTICES REQUIRED BY LAW, AND ANY OTHER ENVIRONMENTAL MATTERS; THE PRESENCE
OR ABSENCE OF ANY RIGHT TO SUBDIVIDE OR DEVELOP THE PROPERTY; THE SUITABILITY OF THE
PROPERTY FOR THE USES INTENDED BY BUYER; THE ABILITY TO OBTAIN ACCESS TO THE PROPERTY; THE
ADEQUACY OF PARKING; THE AVAILABILITY OF UTILITIES OR OTHER SERVICES TO THE PROPERTY; OR ANY
OTHER MATTERS WHATSOEVER. BY REASON OF THE FOREGOING, WITH THE EXCEPTION OF ANY CLAIMS
ARISING BY REASON OF SELLER’S FAILURE TO PERFORM ANY OF ITS EXPRESS OBLIGATIONS UNDER THIS
AGREEMENT, OR ANY CLAIMS ARISING FROM SELLER’S BREACH OF ANY OF ITS EXPRESS REPRESENTATIONS
AND WARRANTIES UNDER THIS AGREEMENT, BUYER HEREBY IRREVOCABLY AND EXPRESSLY WAIVES, RELEASES
AND RELINQUISHES ANY AND ALL RIGHT OR ENTITLEMENT WHICH IT WOULD OTHERWISE HAVE TO ASSERT
AGAINST SELLER OR ANY OF ITS PARTNERS, AFFILIATES, AGENTS, ATTORNEYS OR CONSULTANTS ANY
EXPRESS OR IMPLIED WARRANTY RELATING TO THE PROPERTY OR THE CONDITION, FITNESS OR VALUE
THEREOF OR TO ASSERT AGAINST SELLER OR SUCH PERSONS OR ENTITIES ANY CLAIM WHATSOEVER ARISING
OUT OF OR PERTAINING TO THE CONDITION OF THE PROPERTY OR THE PRESENT OR FUTURE PROFITABILITY
OF OWNERSHIP, DEVELOPMENT OR OPERATION THEREOF.

(b) In addition, Buyer expressly understands and acknowledges that it is possible that
unknown problems, conditions, losses, costs, damages, claims, liabilities, expenses, demands
and obligations of various kinds and natures (“Liabilities”) may exist with respect to the
Property and that Buyer explicitly took that possibility into account in determining and
agreeing to the Purchase Price, and Buyer, as a portion of the consideration for the
Property, as of the Closing, waives and releases Seller and its owners and affiliates from
any all obligations, liabilities, claims or causes of action theretofore accrued or
thereafter arising with respect to any and all such Liabilities.

WITH RESPECT TO THE RELEASES AND WAIVERS SET FORTH ABOVE, BUYER EXPRESSLY WAIVES THE BENEFITS
OF SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES AS FOLLOWS:

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

BUYER HAS BEEN ADVISED BY ITS LEGAL COUNSEL AND UNDERSTANDS THE SIGNIFICANCE OF THIS WAIVER
OF SECTION 1542 RELATING TO UNKNOWN, UNSUSPECTED AND CONCEALED CLAIMS. BY ITS INITIALS
BELOW, BUYER ACKNOWLEDGES THAT IT FULLY UNDERSTANDS, APPRECIATES AND ACCEPTS ALL OF THE TERMS
OF THIS PARAGRAPH 14.

Buyer’s Initials /s/ RH___

	15)	 	RISK OF LOSS: Risk of loss to the Property shall be borne by Seller until title has been
conveyed to Buyer. In the event that the improvements on the Property are destroyed or
materially damaged (material damage consisting of damage, the cost of required repair of
which is borne by Seller and not tenants of the Property and which exceeds $200,000) between
the Effective Date of this Agreement and the date title is conveyed to Buyer, Buyer shall
have the option of demanding and receiving back the entire Deposit and being released from
all obligations hereunder, or alternatively, taking such improvements as Seller can deliver.
In the event of any other damage the closing obligations shall not be affected but Seller
shall assign to Buyer any insurance proceeds respecting same and shall credit Buyer through
escrow at closing for the uninsured cost to repair the damage. Upon Buyer’s physical
inspection and approval of the Property, Seller shall maintain the Property through close of
escrow in the same condition and repair as approved, reasonable wear and tear excepted.

16) POSSESSION: Possession of the Property shall be delivered to Buyer on Closing Date.

	 	17)	 	LIQUIDATED DAMAGES: BY PLACING THEIR INITIALS IMMEDIATELY BELOW, BUYER AND SELLER AGREE
THAT IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX ACTUAL DAMAGES IN THE EVENT OF
A DEFAULT BY BUYER, THAT THE AMOUNT OF BUYER’S DEPOSIT HEREUNDER IS THE PARTIES’ REASONABLE
ESTIMATE OF SELLER’S DAMAGES IN THE EVENT OF BUYER’S DEFAULT, AND THAT UPON BUYER’S DEFAULT
IN ITS PURCHASE OBLIGATIONS UNDER THIS AGREEMENT, NOT CAUSED BY ANY BREACH BY SELLER, SELLER
SHALL BE RELEASED FROM ITS OBLIGATIONS TO SELL THE PROPERTY AND SHALL RETAIN BUYER’S DEPOSIT
AS LIQUIDATED DAMAGES, WHICH SHALL BE SELLER’S SOLE AND EXCLUSIVE REMEDY IN LAW OR AT EQUITY
FOR BUYER’S DEFAULT.

Buyer’s Initials /s/ RH Seller’s Initials /s/ GD

	18)	 	SELLER EXCHANGE: Buyer agrees to cooperate should Seller elect to sell the Property as
part of a like-kind exchange under IRC Section 1031. Seller’s contemplated exchange shall
not impose upon Buyer any additional liability or financial obligation, and Seller agrees to
hold Buyer harmless from any liability that might arise from such exchange. This Agreement
is not subject to or contingent upon Seller’s ability to acquire a suitable exchange
property or effectuate an exchange. In the event any exchange contemplated by Seller should
fail to occur, for whatever reason, the sale of the Property shall nonetheless be
consummated as provided herein.

	 	19)	 	BUYER EXCHANGE: Seller agrees to cooperate should Buyer elect to purchase the Property
as part of a like-kind exchange under IRC Section 1031. Buyer’s contemplated exchange shall
not impose upon Seller any additional liability or financial obligation, and Buyer agrees to
hold Seller harmless from any liability that might arise from such exchange. This Agreement
is not subject to or contingent upon Buyer’s ability to dispose of its exchange property or
effectuate an exchange. In the event any exchange contemplated by Buyer should fail to
occur, for whatever reason, the sale of the Property shall nonetheless be consummated as
provided herein.

20) DISCLOSURE OF REAL ESTATE LICENSURE: Not applicable.

	 	21)	 	AUTHORIZATION: Buyer and Seller authorize Agent to disseminate sales information
regarding this transaction, including the purchase price of the Property.

22) AGENCY DISCLOSURE:

	 	 	 	22.1)EXCLUSIVE LISTING: Marcus & Millichap Real Estate Investment Brokerage Company is the
exclusive listing broker of the property that is the subject of this transaction. Under
California law, Marcus & Millichap represents the Seller as the Seller’s agent. Marcus &
Millichap also has procured the Buyer in this transaction. Marcus & Millichap is
not the agent of the Buyer; however, Marcus & Millichap does have the following
affirmative legal obligations to the Buyer:

	 	a.	 	Diligent exercise of reasonable skill and care in the performance of its duties.

	 	b.	 	A duty of honest and fair dealing and good faith.

	 	c.	 	A duty to disclose all facts known to it materially affecting the value or desirability
of the property that are not known to, or within the diligent attention and observation of,
the Buyer.

	 	23)	 	OTHER BORKERS: Buyer and Seller agree that, in the event any broker other than Agent or
a broker affiliated with Agent is involved in the disposition of the Property, Agent shall
have no liability to Buyer or Seller for the acts or omissions of such other broker, who
shall not be deemed to be a subagent of Agent.

	 	24)	 	LIMITATION OF LIABILITY: Except for Agent’s gross negligence or willful misconduct,
Agent’s liability for any breach or negligence in its performance of this Agreement shall be
limited to the greter of $50,000 or the amount of compensation actually received by Agent in
any transaction hereunder.

	 	25)	 	SCOPE OF AGENT’S AUTHORITY AND RESPONSIBILITY: Agent shall have no authority to bind
either Buyer or Seller to any modification or amendment of this Agreement. Agent shall not
be responsible for performing any due diligence or other investigation of the Property on
behalf of either Buyer or Seller, or for providing either party with professional advice
with respect to any legal, tax, engineering, construction or hazardous materials issues.

	 	26)	 	BROKER DISCLAIMER: Buyer and Seller acknowledge that, except as otherwise expressly
stated herein, Agent has not made any investigation, determination, warranty or
representation with respect to any of the follows: (a) the financial condition or business
prospects of any tenant, or such tenant’s intent to continue or renew its tenancy in the
Property; (b) the legality of the present or any possible future use of the Property nder
any federal, state, or local law; (c) pending or possible future action by any governmental
entity or agency which may affect the Property; (d) the physical condition of the Property,
including but not limited to, soil conditions, the structural integrity of the improvements,
and the presence oor absence of fungi, mold or wood-destroying organisms; (e) the accuracy
or completeness of income and expense information and projections, of square footage
figures, and of the texts of leass, options, and other agreements affecting the Property;
(f) the possibility that lease, options or other documents exist which affect or encumber
the Property and which have not been provided or disclosed by Seller; or (g) the presence or
location of any hazardous materials on or about the Property, including, but not limited to,
asbestos, PCB’s, or toxic, hazardous or contaminated substances, lead-based paint and
underground storage tanks.

Buyer agrees that investigation and analysis of the foregoing matters is Buyer’s sole
responsibility and that Buyer shall not hold Marcus & Millichap responsible therefore. Buyer
further agrees to reaffirm its acknowledgment of this disclaimer at close of escrow and to
confirm that is has relied upon no representations of Marcus & Millichap in connection with
its acquisition of the Property.

Buyer’s Initials __/s/ RH Seller’s Initials  /s/ GD

	27)	 	LEAD-BASED PAIN HAZARDS: Not applicable.

	 	28)	 	MOLD/ALLERGEN ADVISORY AND DISCLOSURE: Buyer is advised of the possible presence within
properties of toxic (or otherwise illness-causing) molds, fungi, spores, pollens and/or
other botanical substances and/or allergens (e.g. dust, pet dander, insect material, etc.).
These substances may be either visible or invisible, may adhere to walls and other
accessible and inaccessible surfaces, may be embedded in carpets or other fabrics, may
become airborne, and may be mistaken for other household substances and conditions.
Exposure carries the potential of possible health consequences. Agent strongly recommends
that Buyer contact the State Department of Health Services for further information on this
topic.

Buyer is advised to consider engaging the services of an environmental or industrial
hygienist (or similar, qualified professional) to inspect and test for the presence of
harmful mold, fungi, and botanical allergens and substances as part of Buyer’s physical
condition inspection of the Property, and Buyer is further advised to obtain from such
qualified professionals information regarding the level of health-related risk involved, if
any, and the advisability and feasibility of eradication and abatement, if any.

Buyer is expressly cautioned that Agent has no expertise in this area and is, therefore,
incapable of conducting any level of inspection of the Property for the possible presence of
mold and botanical allergens. Buyer acknowledges that Agent has not made any investigation,
determination, warranty or representation with respect to the possible presence of mold or
other botanical allergens, and Buyer agrees that the investigation and analysis of the
foregoing matters is Buyer’s sole responsibility and that Buyer shall not hold Agent
responsible therefore.

	 	29)	 	WATER HEATER DISCLOSURE: Seller (if necessary) certifies that it has complied with the
water heater earthquake protection requirements set forth in California Health and Safety
Code section 19211.

Buyer is advised that Agent has no expertise in this area and is, therefore, incapable of
conducting any level of inspection of the Property for the possible non-standard and/or
unsafe water heater bracing, anchoring, or strapping to resist movement due to earthquakes.
Buyer understands that Agent has not made any investigation, determination, warranty or
representation with respect to the possible unfit water heater bracing, anchoring, or
strapping or other standards and Buyer agrees that the investigation and analysis of the
foregoing matters is Buyer’s sole responsibility and that Buyer shall not hold Agent
responsible therefore.

	 	30)	 	BUYER’S REMEDIES: Buyer acknowledges that in the event of a breach of this Purchase
Agreement by Seller, Buyer’s right to collect damages for such breach constitutes an
adequate remedy at law. To induce Seller to enter into this Purchase Agreement, Buyer
hereby irrevocably and expressly waives: (i) any right of specific performance under this
Purchase Agreement; (ii) any right under the provisions of California Civil Code Sections
3384 to 3395 inclusive; and (iii) any other claim affecting claim of title to the Property,
whether by filing a notice of pending action or otherwise. If, notwithstanding the waivers
set forth in the preceding sentence, Buyer institutes an action for specific performance or
other relief against Seller relating to the Property or any portion thereof and records a
notice of action concerning such action as provided in California Code of Civil Procedure
Section 405.20, then Buyer agrees, in addition to all other rights and remedies of Seller
for Buyer’s breach of this Paragraph 30, that pending a determination by a court of
competent jurisdiction of the merits of such action, Seller may, without limitation upon its
other rights and remedies, bring a motion to expunge such notice of pendency of action
pursuant to California Code of Civil Procedure Section 405.30 et seq. and, in connection
with such notice to expunge, Buyer agrees that damages constitute adequate relief and that
the financial condition of Seller is more than adequate to respond in damages to any
recovery which Buyer could reasonably obtain against Seller and, therefore, Buyer waives any
requirement or right that a bond or other undertaking be given or required as a condition to
expunging such notice of pendency of action. If Buyer violates this provision by recording
a lis pendens against the Property or any portion thereof, the court shall expunge any such
notice forthwith without bond or undertaking and shall award damages to Seller.

LIQUIDATED DAMAGES; BY PLACING THEIR INITIALS IMMEDIATELY BELOW, BUYER AND SELLER AGREE THAT
IT WOULD BE IMPRACTABLE OR EXTREMELY DIFFICULT TO FIX ACTUAL DAMAGES IN THE EVENT OF A
DEFAULT BY SELLER TO CONVEY THE PROPERTY AS REQUIRED HEREIN, THAT THE AMOUNT OF $500,000 IS
THE PARTIES’ REASONABLE ESTIMATE OF BUYER’S DAMAGES IN THE EVENT OF SUCH DEFAULT BY SELLER,
AND IN THE EVENT OF SUCH DEFAULT NOT CAUSED BY ANY BREACH BY BUYER, BUYER SHALL BE RELEASED
FROM ITS OBLIGATIONS TO BUY THE PROPERTY AND SHALL WITHIN THREE (3) BUSINESS DAYS BE PAID
SAID SUM BY SELLER AS LIQUIDATED DAMAGES, WHICH SHALL BE BUYER’S SOLE AND EXCLUSIVE REMEDY IN
LAW OR AT EQUITY FOR SELLER’S DEFAULT.

Buyer’s Initials _/s/ RH_ Seller’s Initials _/s/ GD_

	31)	 	SUCCESSORS & ASSIGNS: Except for an assignment to an entity controlled by Buyer, Buyer
may not assign its rights under this Agreement without Seller’s prior written consent which
Seller may reasonably withhold. Subject to the foregoing, this Agreement and any addenda
hereto shall be binding upon and inure to the benefit of the heirs, successors, agents,
representatives and assigns of the parties hereto.

	 	32)	 	ATTORNEYS’ FEES: In any litigation, or other legal proceeding which may arise between
any of the parties hereto, including Agent, the prevailing party shall be entitled to
recover its costs, including costs of arbitration, and reasonable attorneys’ fees in
addition to any other relief to which such party may be entitled.

33) TIME: Time is of the essence of this Agreement.

	 	34)	 	NOTICES: All notices required or permitted hereunder shall be given to the parties in
writing (with a copy to Agent) at their respective addresses as set forth below. Should the
date upon which any act required to be performed by this Agreement fall on a Saturday,
Sunday or holiday, the time for performance shall be extended to the next business day.

	 	35)	 	FOREIGN INVESTOR DISCLOSURE: Seller and Buyer agree to execute and deliver any
instrument, affidavit or statement, and to perform any act reasonably necessary to carry out
the provisions of this Foreign Investment in Real Property Tax Act and regulations
promulgated thereunder. Seller represents that Seller is not a foreign person as defined in
Section 1445 of the Internal Revenue Code and withholding of any portion of the purchase
price is not required under Sections 18662 or 18668 of the California Revenue and Taxation
Code.

	 	36)	 	ADDENDA: Any addendum attached hereto and either signed or initialed by the parties
shall be deemed a part hereof. This Agreement, including addenda, if any, expresses the
entire agreement of the parties and supersedes any and all previous agreements between the
parties with regard to the Property. There are no other understandings, oral or written,
which in any way alter or enlarge its terms, and there are no warranties or representations
of any nature whatsoever either express or implied, except as set forth herein. Any future
modification of this Agreement will be effective only if it is in writing and signed by the
party to be charged.

	 	37)	 	ACCEPTANCE AND EFFECTIVE DATE: Buyer’s signature hereon constitutes an offer to Seller
to purchase the Property on the terms and conditions set forth herein. Unless acceptance
hereof is made by Seller’s execution of this Agreement and delivery of a fully executed copy
to Buyer, either in person or at the address shown below, or by facsimile or e-mail with a
legitimate confirmation of receipt, on or before June 27th     , 2007, this offer shall
be null and void, the Deposit shall be returned to Buyer, and neither Seller nor Buyer shall
have any further rights or obligations hereunder. Delivery shall be effective upon personal
delivery to Buyer or Buyer’s agent or, if by mail, on the next business day following the
date of postmark. The “Effective Date” of this Agreement shall be the later of (a) the date
on which Seller executes this Agreement, or (b) the date of or written acceptance (by either
Buyer or Seller) of the final counter-offer submitted by the other party. Buyer and Seller
both acknowledge and agree that a facsimile copy of this Agreement with a party’s signature
is as legally valid and binding as the original Agreement with an original signature. If
Buyer is not an individual but a legal entity, Buyer’s representative represents that he/she
is authorized on behalf of the legal entity to sign this Agreement.

	 	38)	 	OTHER BUYERS: Buyer understands that Agent represents other buyers who may have an
interest in similar, or the same property that Buyer is considering purchasing. Buyer
understands, consents and agrees that Agent, at all times before, during and after his
representation of Buyer, may also represent other prospective buyers in the purchase of any
property offered for sale. Buyer understands, consents and agrees that, regardless of the
particular agency relationship between Buyer and Agent, Agent’s representation of other
buyers does not constitute a breach of any duty to Buyer.

	 	39)	 	GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the
laws of the State of California.

40) SELLER REPRESENTATIONS AND WARRANTIES: Seller hereby, represents and warrants the following:

a. Seller is duly organized as a California limited liability company and is authorized to
enter into this Agreement;

b. To Seller’s knowledge, Seller has received no written notice of violation of any laws.

	 	 	 	c            To Seller’s knowledge, there has been no default or any claim of default, no
event has occurred which with notice or lapse of time or both would constitute a
default, under any lease, and there is currently no dispute with any tenant with regard
to additional rent;

	 	d.	 	To Seller’s knowledge, no tenant is currently asserting any defense or has any
defense, set off, or claim with regard to his tenancy pursuant to the lease, any law or
otherwise;

	 	e.	 	To Seller’s knowledge, there is no current action, lawsuit, proceeding or
investigation against Seller, and there are none pending against Seller;

	 	f.	 	There are no outstanding agreements (including options) relating to the sale of
the property;

	 	g.	 	The list of leases attached hereto as Exhibit “C” and service contracts attached
hereto as Exhibit “D” are all of the leases and service contracts affecting the
Property and the copies of such documents are true and correct;

	 	h.	 	To Seller’s knowledge, the rent roll and operating statements provided by Seller
to Buyer are true and correct.

The above representations and warranties shall be true and correct as of the Effective Date
and as of the Closing and shall survive the Closing for a period of twelve (12) months,
provided, however, that Seller’s representations and warranties at Closing shall be deemed
modified and amended by any information in the possession of Buyer or Buyer’s agents or
representatives at the Closing, and provided further, that should an event occur after the
Effective Date of which Seller gains knowledge (other than an event caused by Buyer or its
agents), which event would make any of Seller’s representations and warranties untrue or
incorrect in a material manner, Seller shall provide written notice to Buyer of same pursuant
to Paragraph 49 hereof. In the event of any such notice to Buyer, Buyer shall have five (5)
business days to determine whether to waive any objection thereto or to terminate this
Agreement, which election shall be made by written notice to Seller. If Buyer fails to
timely elect to terminate then the parties shall proceed to Closing, any objection by Buyer
shall be deemed waived, and Seller’s representations and warranties at Closing shall be
deemed modified. If Buyer timely elects to terminate, Buyer’s Deposit shall be promptly
refunded and neither party shall have any obligation to the other hereunder after being so
informed, in which case Buyer’s Deposit shall be immediately returned to Buyer, and neither
Buyer nor Seller shall have the obligation to proceed to Closing hereunder. If Buyer fails
to so timely terminate this Agreement, the parties shall proceed to Closing and Seller’s
warranties shall be deemed modified by the information so provided.

Wherever a representation or warranty of Seller is made to Seller’s knowledge, “knowledge”
shall mean the actual present knowledge of Gerald Ducot, the individual controlling Seller,
without independent investigation or inquiry and without any duty, or expectation on the part
of Buyer that he will undertake, to conduct same.

41) BUYER REPRESENTATIONS AND WARRANTIES: Buyer represents and warrants the following:

	 	a.	 	Buyer is duly organized as a Virginia limited liability company and is
authorized to enter into this Agreement.

	 	b.	 	To Buyer’s knowledge, there is no current action, lawsuit, proceeding or
investigation against Buyer, and there are none pending against Buyer;

42) CLOSING CONDITIONS: The following shall be conditions of closing for Buyer’s benefit:

	 	a.	 	All of Seller’s representations and warranties are true and correct in all
material respects as of the closing;

	 	b.	 	Seller shall have complied with all of its obligations under the Agreement;

	 	c.	 	The tenant estoppel requirements shall have been satisfied;

	 	d.	 	Except as otherwise disclosed in writing to Buyer, there is no litigation as of
the closing;

	 	e.	 	No material damage to the property in excess of $200,000 has occurred (per
Paragraph 15 above);

	 	f.	 	All monetary liens shall have been removed by Seller or bonded over to the
satisfaction of Buyer by Seller;

	 	g.	 	Seller shall have terminated all service and other agreements prior to closing
unless otherwise agreed by Buyer per Paragraph 12 above;

	 	h.	 	No tenant shall have filed for bankruptcy or given notice of intent to do so;
and

	 	i.	 	The Title Company shall be unconditionally committed to issue the title policy.

Buyer shall have the right, at its discretion, to waive any of the foregoing conditions and
proceed with the closing.

	 	43)	 	3-14 AUDIT: Intentionally deleted.

44) MUTUAL INDEMNIFICATION:

	 	(a)	 	INDEMNIFICATION OF PURCHASER: Seller hereby agrees to, and hereby does, hold
Buyer and its agents, employees, consultants, attorneys, representatives, members,
partners, shareholders, successors or assigns (collectively, the “Buyer Indemnified
Parties”) harmless, and agrees to indemnify and defend Buyer and each of the other Buyer
Indemnified Parties, from and against all claims, demands, actions, suits, liabilities,
damages, costs and expenses (including reasonable attorneys’ fees and court costs)
accruing prior to the Closing Date and in any manner arising out of, caused by, or
related to any liability arising from the use, occupation, or ownership of the Property
prior to the Closing and/or any breach by Seller of any of its covenants,
representations or warranties under this Agreement. The provisions of this Section
shall survive for one (1) year after the Closing.

	 	(b)	 	INDEMNIFICATION OF SELLER: Buyer hereby agrees to, and hereby does, hold Seller
and its agents, employees, consultants, attorneys, representatives, members, partners,
shareholders, successors or assigns (collectively, the “Seller Indemnified Parties”)
harmless, and agrees to indemnify and defend Seller and each of the other Seller
Indemnified Parties, from and against all claims, demands, actions, suits, liabilities,
damages, costs and expenses (including reasonable attorneys’ fees and court costs)
accruing from and after the Closing Date and in any manner arising out of, caused by, or
related to any liability arising from the use, occupation, or ownership of the Property
after the Closing and/or any breach by Buyer of any of its covenants, representations or
warranties under this Agreement.

	 	45)	 	DELIVERIES BY SELLER: On or before one (1) business day prior to the closing date, unless
otherwise stated, seller shall deliver to escrow or buyer, as applicable, the following:

	 	(a)	 	one (1) original executed and acknowledged grant deed dated as of the closing
date, executed by seller, as grantor, in favor of buyer, as grantee, together with a
separate statement of tax due and request that tax declaration not be made a part of the
permanent record in the office of the county recorder in form reasonably acceptable to
buyer;

	 	(b)	 	Two (2) original counterparts, duly executed by seller, of a bill of sale in form
reasonably acceptable to buyer (“bill of sale”) pursuant to which seller shall transfer
to buyer all of seller’s interest in the personal property owned by seller and located
on or about the property or attached thereto and used in connection with the use,
operation, maintenance or repair thereof;

	 	(c)	 	Two (2) original counterparts, duly executed by seller, of the assignment of
leases in form reasonably acceptable to buyer (“assignment of leases”), pursuant to
which seller shall assign to buyer all of seller’s rights and remedies under the tenant
leases, including, without limitation, the right to any security deposits and prepaid
rent, and buyer shall assume all of seller’s obligations thereunder accruing from and
after the closing date;

	 	(d)	 	Two (2) original counterparts, duly executed by seller, of an assignment and
assumption agreement in a form reasonably acceptable to buyer (the “assignment
agreement”), pursuant to which seller shall assign to buyer all of seller’s right, title
and interest in and to the contracts and permits that buyer has elected to assume from
and after the closing date to buyer and buyer shall assume all of seller’s obligations
thereunder accruing from and after the closing date;

	 	(e)	 	Two (2) original counterparts, duly executed by seller of a duly executed notice
to the tenant in a form reasonably acceptable to buyer (the “tenant notice”) advising
tenant of the change in ownership and directing the payment of rent to such party as
buyer shall designate;

	 	(f)	 	A completed Certificate of Non-Foreign Status, duly executed by Seller under
penalty of perjury;

	 	(g)	 	A duly executed California FTB Form 593-C that is sufficient to exempt Seller
from any state withholding requirement with respect to the sale contemplated in this
Agreement;

	 	(h)	 	Estoppel certificates as required by and provided for in Section 11 of this
Agreement;

	 	(i)	 	Such other documents as Escrow Holder may require from Seller in order to issue
the Title Policy;

	 	(j)	 	Invoices from all brokers entitled to receive a commission or fee in connection
with the transaction contemplated by this Agreement;

	 	(k)	 	Such proof of seller’s authority and authorization to enter into this Agreement
and the transaction contemplated hereby, and such proof of the power and authority of
the individual(s) executing or delivering any instruments, documents or certificates on
behalf of Seller to act for and bind Seller as may be reasonably requested by Title
Company;

	 	(l)	 	Such other documents and instruments, signed and properly acknowledged by Seller,
if appropriate, as may reasonably be required by Escrow Agent or otherwise in order to
effectuate the provisions of this Agreement and the closing of the transactions
contemplated herein;

	 	(m)	 	On the Closing Date, Seller shall deliver to Buyer 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;

	 	(n)	 	On the Closing Date, Seller shall deliver to Buyer all original tenant leases
(including all amendments, exhibits and correspondence); and

	 	(o)	 	On the Closing Date, Seller shall deliver to Buyer, all records and files
relating to the management or operation of the Property, including, without limitation,
all insurance policies, all service 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 Property.

	 	46)	 	DELIVERIES BY BUYER: On or before one (1) business day prior to the Closing Date, Buyer
shall deliver to Escrow the following:

	 	(a)	 	The balance of the purchase price, subject to adjustments for credits and
prorations;

	 	(b)	 	Two (2) original counterparts, duly executed by Buyer, of the Bill of Sale;

	 	(c)	 	Two (2) original counterparts, duly executed by Buyer, of the Assignment of
Leases;

	 	(d)	 	Two (2) original counterparts, duly executed by Buyer, of the Assignment and
Assumption Agreement;

	 	(e)	 	Invoices from all brokers entitled to receive a commission or fee in connection
with the transaction contemplated by this Agreement;

	 	(f)	 	Such proof of Buyer’s authority and authorization to enter into this Agreement
and the transaction contemplated hereby, and such proof of the power and authority of
the individual(s) executing or delivering any instruments, documents or certificates on
behalf of Buyer to act for and bind Buyer as may be reasonably requested by Title
Company; and

	 	(g)	 	Such other documents and instruments, signed and properly acknowledged by Buyer,
if appropriate, as may reasonably be required by Escrow Agent or otherwise in order to
effectuate the provisions of this Agreement and the closing of the transactions
contemplated herein.

	 	47)	 	BUSINESS DAY: If any time period stated herein is due to expire on a day that is not a
business day, or if any act is called for to be performed hereunder on a day that is not a
business day, then such time period shall expire and such act shall be performed, as the
case may be, on the next succeeding business day. For purposes of this Agreement, a
“business day” is any day other than a Saturday, Sunday or legal holiday in Los Angeles,
California.

	 	48)	 	REGISTERED COMPANY; seller’s audit co-operation: the seller acknowledges that buyer
shall have the right to assign all of its rights, title and interest in and to this
agreement to an assignee which is a publicly registered company (“registered company”)
promoted by the buyer.  Such assignment shall not release buyer of any of its obligations
under this agreement, nor shall it cause an extension of the closing date. The seller
acknowledges that it has been advised that if the purchaser is a registered company, the
assignee is required to make certain filings with the securities and exchange commission
(the “sec filings”) that relate to the fiscal year 2006 and that portion of 2007 ending the
closing date (collectively, the “audited year”) for the property.  To assist the assignee in
preparing the sec filings, the seller agrees upon reasonable notice to provide or cause
Charles Dunn & Co., the “property manager”, to provide auditors for the registered company
the following information following closing:

	 	1.	 	Access to bank statements for the Audited year;

	 	2.	 	Rent Roll as of the end of the Audited Year;

	 	3.	 	Operating Statements for the Audited Year;

	 	4.	 	Access to the general ledger for the Audited Year;

	 	5.	 	Cash receipts schedule for each month in the Audited Year;

	 	6.	 	Access to invoice for expenses and capital improvements in the Audited Year;

	 	7.	 	Accounts payable ledger and accrued expense reconciliations;

	 	8.	 	Check register for the 3-months following the Audited Year;

	 	9.	 	Leases and 5-year lease schedules;

	 	10.	 	Copies of all insurance documentation for the Audited Year;

	 	11.	 	Copies of accounts receivable aging as of the end of the Audited Year and an
explanation for all accounts over 30 days past due as of the end of the Audited Year; and

	 	12.	 	a signed representation letter in the form attached hereto as Exhibit E (the
“Representation Letter”).

The provisions of this Paragraph 48 shall survive the Close of Escrow for a period of one
(1) year.

	 	49)	 	NOTIFICATION: Except as to any information imparted to Seller as a result of Buyer’s due
diligence of the Property, Seller shall promptly notify Buyer of any material change in
Seller’s knowledge of any condition with respect to the Property or of any material event or
circumstance of which Seller gains knowledge that makes any representation or warranty of
Seller under this Agreement materially untrue or incorrect.

THE PARTIES ARE ADVISED TO CONSULT THEIR RESPECTIVE ATTORNEYS WITH REGARD TO THE LEGAL EFFECT AND
VALIDITY OF THIS PURCHASE AGREEMENT. THE PARTIES AGREE THAT THIS AGREEMENT CAN BE SIGNED IN
COUNTERPART WITH THE SAME LEGAL FORCE AND EFFECT AS IF NOT SIGNED IN COUNTERPART.

The undersigned Buyer hereby offers and agrees to purchase the above-described Property for the
price and upon the terms and conditions herein stated.

This offer is made by Buyer to Seller on this  26th   day of
  June, 2007. The undersigned Buyer hereby acknowledges receipt of an executed
copy of this Agreement, including the Agency Disclosure contained in Paragraph 22, above.

All individuals signing below on behalf of a legal entity hereby represent that they are
authorized by, and on behalf of, said entity to enter into this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUYER:
	 	/s/ Richard Hutton	 	ADDRESS:	 	1551 North Tustin Avenue, #300
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Triple Net	 	 	 	 	 	Santa Ana, CA 92705
	 
	 	Properties, LLC, a	 	 	 	 	 	 	—	 
	 
	 	Virginia limited	 	 	 	 	 	 	 	 
	 
	 	liability company	 	 	 	 	 	 	 	 
	 
	 	By: Richard Hutton,	 	 	 	 	 	 	 	 
	 
	 	Executive Vice	 	 	 	 	 	 	 	 
	 
	 	President, Authorized	 	 	 	 	 	 	 	 
	 
	 	Signer	 	 	 	 	 	 	 	 
	DATE:
	 	 	 	 	 	TELEPHONE:	 	 	714-836-5263	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	6/26/07	 	 	FACSIMILE:	 	 	714-667-6860	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

3

SELLER’S ACCEPTANCE AND AGREEMENT TO PAY COMMISSION

The undersigned Seller accepts the foregoing offer and agrees to sell the Property to Buyer for the
price and on the terms and conditions stated herein. Seller acknowledges receipt of an executed
copy of this Agreement and authorizes Agent to deliver an executed copy to Buyer.

Seller reaffirms its agreement to pay to Agent a real estate brokerage commission pursuant to the
terms of that certain Representation Agreement between Agent and Seller dated March
12, 2007, which shall remain in full force and effect, and shall be controlling if
inconsistent with any terms hereof. Said commission is payable in full on the Closing Date and
shall be paid in cash through escrow. Escrow Holder is directed to make such payment to Agent from
Seller’s proceeds of sale. The provisions of this paragraph may not be amended or

modified without the written consent of Agent.

Where Seller has agreed to pay a commission, Seller acknowledges and agrees that payment of said
commission is not contingent upon the closing of the transaction contemplated by this Agreement,
and that, in the event completion of the sale is prevented by default of Seller, then Seller shall
immediately be obligated to pay to Agent the entire commission. The provisions of this
paragraph may not be amended or modified without the written consent of Agent.

[ ] SUBJECT TO ATTACHED COUNTER-OFFER

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SELLER:
	 	 	 	 	 	ADDRESS:	 	11611 San Vicente Blvd, # 640
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	St. Mary Physicians Center, LLC, a	 	 	 	 	 	Los Angeles, CA 90049
	 
	 	California limited liability company	 	 	 	 	 	 	—	 
	 
	 	 	 	 	 	TELEPHONE:	 	 	310-826-2888	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	By: Elm Long Beach, LP,	 	FACSIMILE:	 	 	310-820-9145	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	a California limited partnership, Manager	 	 	 	 	 	 	 	 
	 
	 	By: Lazar-Ducot Associates, Inc., a	 	 	 	 	 	 	 	 
	 
	 	California corporation, General Partner	 	 	 	 	 	 	 	 
	 
	 	By: Gerald A. Ducot, President	 	 	 	 	 	 	 	 
	DATE:
	 	/s/ Gerald A. Ducot  6/26/07	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

Agent accepts and agrees to the foregoing. Agent represents and warrants that Agent is unaware of
any incorrect or incomplete information contained in any Natural Hazard Disclosures.

	 	 	AGENT: MARCUS & MILLICHAP REAL ESTATE INVESTMENT BROKERAGE COMPANY

	 	 	 	 	 	 	 
	BY:

	 	/s/ David Black
	 	ADDRESS:
	 	One World Trade Center, #2100
	
 
	 	 
	 	 	 	 
	
 
	 	David Black
	 	 	 	Long Beach, CA 90831
	
 
	 	 	 	 	 	 
	DATE:

	 	6/26/07
	 	TELEPHONE:
	 	(562) 436-5800
	
 
	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	BY:	 	/s/ Michael Lawrence ADDRESS:	19800 MacArthur Blvd., #150
	 	 	Michael Lawrence	 	 	Irvine, CA 92612
	DATE:	 	6/26/07 TELEPHONE:	(949) 851-3030

	 	 	 	 	 	 	 
	NO REPRESENTATION IS MADE BY AGENT AS TO THE LEGAL OR TAX EFFECT OR VALIDITY OF
	ANY PROVISION OF THIS PURCHASE AGREEMENT.	A REAL ESTATE BROKER IS QUALIFIED TO
	GIVE ADVICE ON REAL ESTATE MATTERS.	 	IF YOU DESIRE LEGAL, FINANCIAL OR TAX
	ADVICE, CONSULT YOUR ATTORNEY, ACCOUNTANT OR TAX ADVISOR.

Escrow Holder acknowledges receipt of a copy of this Agreement (if checked  X  a deposit
amount of  five hundred thousand      dollars ($ 500,000 )), and agrees to act as
Escrow Holder subject to Paragraph 3 of this Agreement, any supplemental escrow instructions and
the terms of Escrow Holder’s general provisions.

The date of communication of Acceptance of the Agreement between Buyer and Seller is    June 26
   , 2007.

	 	 	 	 	 	 	 
	ESCROW

HOLDER:

	 	

First American Title Insurance Company
	 	

ESCROW #:
	 	

NCS 305219 SAI
	
 
	 	 
	 	 	 	 
	
 
	 	c/o Mr. Brian Serikaku

Carol L. Weir
	 	

	 	

	BY:

	 	 	 	DATE:
	 	7/2/07
	
 
	 	 	 	 	 	 
	
 
	 	5 First American Way, 2nd Floor
	 	 	 	clweir
	
 
	 	 
	 	 	 	 
	ADDRESS:

	 	Santa Ana, CA 92707
	 	EMAIL:
	 	bserikaku@firstam.com
	
 
	 	 
	 	 	 	 
	PHONE:

	 	714-250-8405 8410
	 	FAX:
	 	714-242-9413 9780
	
 
	 	 
	 	 	 	 
	ESCROW HOLDER IS

LICENSED BY:

	 	

/s/ Carol L. Weir
	 	

LICENSE #::
	 	

	
 
	 	 
	 	

	 	

	 	 	 	 	 	 	 

NO REPRESENTATION IS MADE BY AGENT AS TO THE LEGAL OR TAX EFFECT OR VALIDITY OF
ANY PROVISION OF THIS PURCHASE AGREEMENT.  A REAL ESTATE BROKER IS QUALIFIED TO
GIVE ADVICE ON REAL ESTATE MATTERS.  IF YOU DESIRE LEGAL, FINANCIAL OR TAX     }
ADVICE, CONSULT YOUR ATTORNEY, ACCOUNTANT OR TAX ADVISOR.                      }

NO REPRESENTATION IS MADE BY AGENT AS TO THE LEGAL OR TAX EFFECT OR VALIDITY OF

	ANY PROVISION OF THIS PURCHASE AGREEMENT.	A REAL ESTATE BROKER IS QUALIFIED TO
	GIVE ADVICE ON REAL ESTATE MATTERS.	 	IF YOU DESIRE LEGAL, FINANCIAL OR TAX
	ADVICE, CONSULT YOUR ATTORNEY, ACCOUNTANT OR TAX ADVISOR.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]