ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT

                                                   EXECUTION COPY
                                                                



         ASSIGNMENT AND ASSUMPTION OF PURCHASE AGREEMENT

This Assignment and Assumption of Purchase Agreement is made  and
entered  into as of the 11th day of September, 2006, by AEI  FUND
MANAGEMENT, INC., a Minnesota corporation ("AEI"),  to AEI INCOME
&  GROWTH FUND 24 LLC, a Delaware limited liability company ("AEI
24");  AEI  FUND  MANAGEMENT XVII, INC., a Minnesota  corporation
("AEI XVII"); AEI INCOME & GROWTH FUND 26 LLC, a Delaware limited
liability  company  ("AEI  26"); AEI INCOME  &  GROWTH  FUND  XXI
LIMITED PARTNERSHIP, a Minnesota limited partnership ("AEI XXI");
AEI  INCOME  & GROWTH FUND XXII LIMITED PARTNERSHIP, a  Minnesota
limited partnership ("AEI XXII"); AEI ACCREDITED  INVESTOR FUND V
LP,  a  Minnesota limited partnership ("AEI V");  AEI  ACCREDITED
INVESTOR  FUND  2002  LIMITED PARTNERSHIP,  a  Minnesota  limited
partnership ("AEI 2002").

                            RECITALS

     A.    AEI  is  named  as  the "Purchaser"  in  that  certain
Purchase and Sale Agreement executed by and between APPLE INDIANA
II  LLC,  APPLE PENNSYLVANIA LLC, APPLE WASHINGTON  LLC,  each  a
Delaware  limited liability company, and B.T. WOODLIPP,  INC.,  a
Pennsylvania corporation (collectively, "Seller") and dated  July
10,  2006  (the "Purchase Agreement"), and has entered  into  the
Purchase  Agreement for the sole purpose of purchasing  the  real
property located at the following addresses:
    
          1)   8310 East 96th Street, Fishers, Indiana ("Premises
               A")
          2)    109  South  Memorial Drive, New  Castle,  Indiana
               ("Premises B")
          3)   2659   East   Main  Street,  Plainfield,   Indiana
               ("Premises C")
          4)    1516  South  Washington  Street,  Crawfordsville,
                Indiana ("Premises D")
          5)    7345 East Washington Street, Indianapolis, Indiana
               ("Premises E")
          6)   425   Galleria   Drive,  Johnstown,   Pennsylvania
               ("Premises F")
          7)   850  Chippewa  Town  Center Drive,  Beaver  Falls,
               Pennsylvania ("Premises G")
          8)   130 River Road, Sequim, Washington ("Premises H")
          9)   1441   D   Street  Northeast,  Auburn,  Washington
               ("Premises I")
         
     B.    AEI desires to assign its right, title and interest in
the  Purchase  Agreement to AEI 24 with respect to the  sale  and
purchase of Premises A; to AEI XVII with respect to the sale  and
purchase of Premises B; to AEI XVII with respect to the sale  and
purchase of Premises C; to AEI XVII with respect to the sale  and
purchase  of Premises D; to AEI 26 and AEI XVII with  respect  to
the sale and purchase of Premises E; to AEI XXI and AEI XXII with
respect  to  the sale and purchase of Premises F; to AEI  V  with
respect to the sale and purchase of Premises G; to AEI 2002  with
respect to the sale and purchase of Premises H; and to AEI V with
respect to the sale and purchase of Premises I.
    
     NOW, THEREFORE,  in consideration of the above recitals, and
good  and  valuable consideration received, AEI, sells,  assigns,
transfers, sets over and delivers unto AEI 24; AEI XVII; AEI  26;
AEI  XXI;  AEI XXII; AEI V; and AEI 2002 all of its right,  title
and  interest in and to the Purchase Agreement and  AEI  24;  AEI
XVII; AEI 26; AEI XXI; AEI XXII; AEI V; and AEI 2002  assumes all
of  AEI's  right,  title  and interest in  and  to  the  Purchase
Agreement.
    
     IN   WITNESS  WHEREOF,  the  undersigned  has  caused   this
Assignment and Assumption of Purchase Agreement to be executed as
of the date and year first above written.

                   (Signature Pages to Follow)

                              AEI FUND MANAGEMENT, INC.,
                              a Minnesota corporation
                             
                              By:/s/ Robert P Johnson
                              Name:  Robert P Johnson
                                     Its: President
                             


                              AEI INCOME & GROWTH FUND 24 LLC,
                              a Delaware limited liability
                              company

                              By:  AEI Fund Management XXI, Inc.,
                                   a Minnesota corporation,
                                   its Managing Member


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President



                              AEI FUND MANAGEMENT XVII, INC.,
                              a Minnesota corporation


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President


                             
                              AEI INCOME & GROWTH FUND 26 LLC,
                              a Delaware limited liability
                              company

                              By:  AEI Fund Management XXI, Inc.,
                                   a Minnesota corporation,
                                   its Managing Member

                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President



                              AEI INCOME & GROWTH FUND XXI
                              LIMITED PARTNERSHIP,
                              a Minnesota limited partnership

                              By:  AEI Fund Management XXI, Inc.,
                                   a Minnesota corporation, its
                                   General Partner


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President



                              AEI INCOME & GROWTH FUND XXII
                              LIMITED PARTNERSHIP,
                              a Minnesota limited partnership

                              By:  AEI Fund Management XXI, Inc.,
                                   a Minnesota corporation, its
                                   General Partner


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President



                              AEI ACCREDITED INVESTOR FUND V LP,
                              a Minnesota limited partnership

                              By:  AEI Fund Management XVIII, Inc.,
                                   a Minnesota corporation, its
                                   General Partner


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President






                              AEI ACCREDITED INVESTOR FUND 2002
                              LIMITED PARTNERSHIP,
                              a Minnesota limited partnership

                              By:  AEI Fund Management XVIII, Inc.,
                                   a Minnesota corporation, its
                                   General Partner


                                   By: /s/ Robert P Johnson
                                   Name:   Robert P. Johnson
                                   Its:    President












          APPLE INDIANA II LLC, APPLE PENNSYLVANIA LLC,
         APPLE WASHINGTON LLC, and B.T. WOODLIPP, INC.,
                            as Seller
                               and
                               
                               
                               
                                
                   AEI FUND MANAGEMENT, INC.,
                          as Purchaser
                               
                               
                               
                               
                   PURCHASE AND SALE AGREEMENT
                               
                               
                               
                               
                   Dated:  As of July 10, 2006
                               
                                
                               
                               
                               
                               
                               
                               
                               
                                
                        TABLE OF CONTENTS
                                                             Page

                               
ARTICLE I DEFINITIONS                                           1
                                
ARTICLE II PURCHASE AND SALE; LEASEBACK                         4
                               
ARTICLE III [INTENTIONALLY OMITTED]                             7
                               
ARTICLE IV DUE DILIGENCE                                        7
                               
ARTICLE V CLOSING                                              11
                               
ARTICLE VI CLOSING ADJUSTMENTS                                 15
                               
ARTICLE VII COVENANTS OF SELLER                                15
                               
ARTICLE VIII REPRESENTATIONS AND WARRANTIES                    16
                               
ARTICLE IX NOTICES                                             21
                               
ARTICLE X CONFIDENTIALITY                                      22
                               
ARTICLE XI DAMAGE AND DESTRUCTION                              22
                               
ARTICLE XII CONDEMNATION                                       24
                               
ARTICLE XIII DEFAULT BY PURCHASER OR SELLER                    25
                               
ARTICLE XIV MISCELLANEOUS PROVISIONS                           26
                                
                               

EXHIBITS AND SCHEDULES
EXHIBIT A   LEGAL DESCRIPTIONS
EXHIBIT B   ESCROW AGREEMENT
EXHIBIT C   FORM OF LEASE
EXHIBIT D   FOREIGN INVESTORS REAL PROPERTY
            TAX ACT CERTIFICATION AND AFFIDAVIT
EXHIBIT E   WIRE TRANSFER INSTRUCTIONS
EXHIBIT F   DUE DILIGENCE DOCUMENTS
SCHEDULE 4.3   PORTFOLIO VALUE


                   PURCHASE AND SALE AGREEMENT
                               
          THIS PURCHASE AND SALE AGREEMENT is entered into as  of
the  10th day of July, 2006, by and among APPLE INDIANA  II  LLC,
APPLE  PENNSYLVANIA LLC, APPLE WASHINGTON LLC, each,  a  Delaware
limited   liability   company,  and  B.T.   WOODLIPP,   INC.,   a
Pennsylvania  corporation (collectively, the "SELLER"),  and  AEI
FUND MANAGEMENT, INC., a Minnesota corporation (the "PURCHASER").

                       W I T N E S S E T H
                               
          WHEREAS,  Seller  is the owner of fourteen  (14)  sites
described  in  EXHIBIT  A  attached  hereto  (collectively,   the
"LAND"),   together  with  all  buildings,  fixtures  and   other
improvements  erected thereon (collectively, the "BUILDINGS"  and
each  a  "BUILDING") in the states of Indiana,  Pennsylvania  and
Washington on which Seller operates a franchised restaurant (each
such  site together with the Building thereon and the other items
set  forth  in  SECTION  2.3 with respect  thereto  is  called  a
"PROPERTY" and all are collectively called the "PROPERTIES"); and

          WHEREAS, Seller has agreed to sell to Purchaser all  of
Seller's  right, title and interest in the Land,  the  Buildings,
and  all  other  items included within the term  "Properties"  in
Section 2.3; and

          WHEREAS,   Purchaser  has  agreed   to   purchase   the
Properties from Seller; and

          WHEREAS,  Purchaser has agreed to lease to Seller,  and
Seller has agreed to lease from Purchaser, the Properties; and

          WHEREAS,   the  parties  desire  to  set  forth   their
respective   rights   and  obligations  with   respect   to   the
transactions contemplated herein.

          NOW THEREFORE, in consideration of the mutual covenants
and   agreements   hereinafter  set  forth  and  other   valuable
consideration,  the receipt and sufficiency of which  are  hereby
acknowledged, Seller and Purchaser agree as follows:

                            ARTICLE I
                           DEFINITIONS
                               
          Section 1.1.   DEFINITIONS.  For purposes of this Agreement, the
following terms shall have the meanings indicated below:

          "ADJOURNED CLOSING DATE" has the meaning given to  such
term in Section 4.1.

          "AGREEMENT"  means  this Purchase and  Sale  Agreement,
including all Exhibits and Schedules hereto.

          "BUILDINGS" has the meaning given to such term  in  the
first "WHEREAS" clause of this Agreement.

          "BUSINESS  DAY" has the meaning given to such  term  in
Section 2.2.  If any event under this Agreement is to occur, or a
time  period is to expire, on a date which is not a business day,
such  event shall occur or time period shall expire on  the  next
succeeding business day.

          "CASUALTY PROPERTY" has the meaning given to such  term
in Section 11.1(b).

          "CLOSING"  means  the consummation of the  transactions
described  in  Article II in accordance with the  terms  of  this
Agreement.

          "CLOSING DATE" means either the Scheduled Closing  Date
or the Adjourned Closing Date.

          "CODE"  means  the Internal Revenue Code  of  1986,  as
amended.

          "COMMITMENTS"  has the meaning given to  such  term  in
Section 4.1(a).

          "DEEDS"  has the meaning given to such term in  Section
5.2(a).

          "DEFECT" has the meaning given to such term in  Section
8.3(c).

          "DEPOSIT" has the meaning given to such term in Section
2.2(a).

          "DILIGENCE CURE PERIOD" has the meaning given  to  such
term in Section 4.6.

          "DILIGENCE  OBJECTION" has the meaning  given  to  such
term in Section 4.6.

          "DUE  DILIGENCE DEFAULT" has the meaning given to  such
term in Section 4.7.

          "DUE  DILIGENCE PERIOD" means the period commencing  on
the  date  hereof,  and ending at 11:59 p.m.,  Central  time,  on
            , 2006, which date is forty-five (45) days after  the
Effective Date.

          "EFFECTIVE  DATE" shall mean for all purposes  in  this
Agreement  the  date on which this Agreement is executed  by  the
last of Purchaser and Seller.

          "ENVIRONMENTAL LAWS" means all federal, state or  local
laws,  statutes, ordinances, rules or regulations or judicial  or
administrative decisions, orders, or decrees relating to  health,
safety,  pollution or protection of the environment or workplace,
including, without limitation, relating to Hazardous Substances.

          "ENVIRONMENTAL REPORTS" has the meaning given  to  such
term in Section 4.6.

          "ESCROW  AGENT" has the meaning given to such  term  in
Section 2.2(a).

          "EXCLUDED PROPERTY" has the meaning given to such  term
in Section 2.3.

          "FIRPTA  AFFIDAVIT" has the meaning given to such  term
in Section 5.2(c).

          "FRANCHISOR"  has the meaning given  to  such  term  in
Section 2.3.

          "HAZARDOUS    SUBSTANCES"   means    any    pollutants,
contaminants,  wastes, toxic or hazardous or extremely  hazardous
substances,  or  other materials (including, without  limitation,
petroleum or any by-products or fractions thereof, lead, asbestos
and asbestos-containing materials, and polychlorinated biphenyls)
that  are regulated by, or may form the basis of liability under,
any Environmental Laws.

          "LAND" has the meaning given to such term in the  first
"WHEREAS" clause of this Agreement.

          "LEASE"  has the meaning given to such term in  Section
2.4.

          "LEASE GUARANTY" has the meaning given to such term  in
Section 2.4.

          "NOTICES" has the meaning given to such term in Section
9.1.

          "PERMITTED ENCUMBRANCES" has the meaning given to  such
term in Section 3.1.

          "PROPERTIES"  has the meaning given  to  such  term  in
Section 2.3.

          "PROPERTY"  has the meaning given to such term  in  the
first "WHEREAS" clause of this Agreement.

          "PURCHASE PRICE" has the meaning given to such term  in
Section 2.2.

          "PURCHASER" has the meaning given to such term  in  the
preamble  to this Agreement, and any permitted assignees  of  the
Purchaser pursuant to Section 14.5 hereof.

          "REPRESENTATIVES" means, with respect to any person  or
entity,  such  person's  or entity's agents  or  representatives,
including, without limitation, its directors, officers,  members,
employees,  affiliates, partners, agents, contractors, engineers,
attorneys,   accountants,  consultants,  brokers   or   financial
advisors.

          "SCHEDULED CLOSING DATE" has the meaning given to  such
term in Section 5.1.

          "SELLER"  has  the meaning given to such  term  in  the
preamble to this Agreement.  Although the term "Seller"  is  used
collectively  to  refer  to  all of the  entities  that  own  the
Properties,   the  covenants,  representations,  warranties   and
obligations of Seller under this Agreement are not intended to be
joint  and  several, but rather each of such  entities  shall  be
responsible  for the covenants, representations,  warranties  and
obligations  relating only to those of the  Properties  owned  by
such  entity.  The Properties are owned by each respective Seller
entity as specified on Schedule 4.3 hereto.

          "SELLER KNOWLEDGE INDIVIDUAL" has the meaning given  to
such term in Section 8.1.

          "SELLER'S BANK SYNDICATE" means Bank of America,  N.A.,
as  administrative agent, Bank of America, N.A.,  SunTrust  Bank,
Merrill  Lynch  Capital,  a Division of  Merrill  Lynch  Business
Financial   Services   Inc.,   GE   Capital   Franchise   Finance
Corporation,  National  City Bank of  Pennsylvania,  Wells  Fargo
Bank,  N.A., and ING Capital LLC, and their respective successors
and/or assigns.

          "SELLER'S  DILIGENCE NOTICE" has the meaning  given  to
such term in Section 4.6.

          "SELLER'S TITLE NOTICE" has the meaning given  to  such
term in Section 4.3.

          "SURVEYS" has the meaning given to such term in Section
4.1(a).

          "SURVIVING  REPRESENTATIONS" has the meaning  given  to
such term in Section 8.3(a).

          "SURVIVAL PERIOD" has the meaning given to such term in
Section 8.5.

          "TAKING" has the meaning given to such term in  Section
12.1.

          "TAKING PROPERTY" has the meaning given to such term in
Section 12.1(b).

          "TITLE COMPANY" means Chicago Title Insurance Company.

          "TITLE CURE PERIOD" has the meaning given to such  term
in Section 4.1(a).

          "TITLE  OBJECTIONS" has the meaning given to such  term
in Section 4.1(a).

          "TITLE  POLICY" has the meaning given to such  term  in
Section 4.5.

          "TRANSFER TAXES" has the meaning given to such term  in
Section 5.5(a).

                           ARTICLE II
                  PURCHASE AND SALE; LEASEBACK
                               
          Section 2.1.   PURCHASE AND SALE.  Subject to the terms and
provisions set forth in this Agreement, on the Closing Date:  (a)
Seller  shall  transfer  the Properties  to  Purchaser,  and  (b)
Purchaser  shall pay the Purchase Price to Seller as provided  in
Section 2.2.

Section 2.2.   PAYMENT OF THE PURCHASE PRICE.  The purchase price
(the "PURCHASE PRICE") for the Properties is Forty Million One
Hundred Nine Thousand One Hundred Thirteen Dollars ($40,109,113),
subject to reduction as hereinafter provided in this Agreement,
and shall be payable by Purchaser as follows:

(a)  A deposit (the "DEPOSIT") in the amount of Two Hundred
Thousand  Dollars  ($200,000), payable  simultaneously  with  the
execution  of  this  Agreement by wire transfer,  in  immediately
available  Federal Funds, to the escrow account of Chicago  Title
Insurance  Company  located at 171 N.  Clark,  Chicago,  Illinois
60601,  as  escrow agent (the "Escrow Agent") in accordance  with
the  wiring  instructions  attached hereto  as  Exhibit  E.   The
Deposit  shall  be  held by Escrow Agent in accordance  with  the
terms  of  that  certain Escrow Agreement of even  date  herewith
between Seller, Purchaser and Escrow Agent in the form of Exhibit
B attached hereto.  The Deposit shall be delivered as provided in
this Agreement.

(b)  Within five (5) days after the later of: (y) the expiration
of the Due Diligence Period, unless Purchaser has timely
delivered a notice of termination of this Agreement under Section
4.7(b), or (z) the date upon which Seller has waived in writing
the condition set forth in Section 5.9(a)(iv), Purchaser shall
increase the amount of the Deposit by depositing with Escrow
Agent an additional One Hundred Thousand Dollars ($100,000) in
immediately available Federal Funds, which amount shall be added
to and become a part of the Deposit hereunder.

(c)  The balance of the Purchase Price, in the amount of Thirty-
nine Million Eight Hundred Nine Thousand One Hundred Thirteen
Dollars ($39,809,113), subject to reduction as provided in this
Agreement, payable on the Closing Date by wire transfer, in
immediately available Federal Funds, to the account of Escrow
Agent.

(d)  If the Closing shall occur, Escrow Agent shall be instructed
to deliver the proceeds of the Deposit, including the interest on
the Deposit, to Seller to be credited against the Purchase Price.
If the Closing shall not occur and this Agreement shall be
terminated, then the interest earned on the Deposit shall be paid
to the party entitled to receive the Deposit as provided in this
Agreement.  The party receiving such interest shall take such
interest into account for purposes of determining its federal
income tax liability, if any, and shall pay any income taxes
thereon.

As  used  in this Agreement, the term "BUSINESS DAY" means  every
day  other  than  Saturdays, Sundays, all days  observed  by  the
federal  or Illinois State government as legal holidays  and  all
days on which commercial banks in Illinois are required by law to
be closed.

       Section 2.3. SCOPE OF SALE.  As used in this Agreement, the
term "PROPERTIES" shall mean all of the following:

(a)  the Land;

(b)  all of the Buildings;
(c)  all easements, covenants, servitudes and other rights now
belonging or appertaining or appurtenant to, or comprising a part
of, the Land, and all right, title and interest of the Seller in
and to strips or gores adjacent to the Land and any land lying in
the bed of any street, road, avenue or alley, open or closed, in
front of or behind or otherwise adjoining the Land and to the
center line thereof;
(d)  all fixtures, equipment and machinery (including, without
limitation, all of the lighting, electrical, mechanical, plumbing
and heating, ventilation and air conditioning systems), exclusive
of the Excluded Property, used in connection with the Land and
the Buildings and the operation, management, maintenance or
occupation of the Properties (as opposed to the operation of
Seller's business);
(e)  if available, certificates of occupancy and all licenses
(excluding liquor licenses), permits, approvals and
authorizations, if any, which are customarily required to be
transferred to evidence Seller's ownership of the Properties (as
opposed to the operation of Seller's business); and
(f)  all right, title and interest of Seller in and to all
warranties, indemnity agreements and bonds with respect to any
portion of the Land, the Buildings or any other portions of the
Properties.
(g)  all of Seller's rights under any contract or agreement in
Seller's possession (other than those relating to Excluded
Property), including without limitation, maintenance contracts,
service contracts, property management contracts, equipment
leases, or warranties relating to the operation of the
Properties;
(h)  all of Seller's right, title and interest in and to any
drawings, plans, building permits, surveys and certificates of
occupancy relating to the Properties, and all licenses and
permits relating to the ownership thereof; and
(i)  all records in Seller's possession relating to Seller's
ownership of the Properties, including without limitation all
records regarding real estate taxes, assessments, insurance,
maintenance, repairs, capital improvements and services.

          As used in this Agreement, the term "EXCLUDED PROPERTY"
shall  mean  (i) all fixtures, furniture, furnishings,  equipment
(other  than floor and wall coverings, fixtures which are  built-
ins  or  constitute an integral part of the Building, the walk-in
cooler,  heat, air condition and ventilation systems, electrical,
mechanical   and   plumbing  systems),  Kitchen   Equipment   (as
hereinafter  defined), inventory, merchandise,  goods,  chattels,
trade  fixtures,  signage,  appliances display  cases,  supplies,
tools,  machinery, security systems, computer software  or  other
personal  property (including, without limitation, trade fixtures
in,  on,  around  or  affixed to any Property),  (ii)   fixtures,
furniture,  furnishings, equipment, supplies,  tools,  machinery,
security  systems, computer software, signage and other  personal
property (including, without limitation, trade fixtures  in,  on,
around or affixed to any Property) which displays the name, trade
name, trademark, service mark, logo, insignia, slogan, emblem  or
symbol  of Applebee's International Inc.'s ("FRANCHISOR")  or  of
the  tenant  under  the Lease, and (iii) all  licenses,  permits,
approvals  and  authorizations, if any,  which  are  required  in
connection  with  the operation of Seller's business,  including,
without  limitation, all liquor licenses.  The Excluded  Property
described in SUBSECTIONS (i) and (ii) above shall be and  at  all
times  remain  the property of Seller regardless of  whether  the
same  is affixed to the Buildings or the manner in which the same
is affixed (unless permanently affixed) and regardless of whether
the same is regarded as a fixture or as property of the owner  of
the  Building  by operation of law or otherwise unless,  however,
such fixtures and equipment cannot be removed without substantial
damage to any Building which cannot be easily repaired.  As  used
herein  the  term  "Kitchen  Equipment"  shall  include,  without
limitation,  kitchen  fixtures  (except  for  sanitary   plumbing
fixtures),  counters, stainless steel equipment,  ranges,  ovens,
display  cases and refrigeration equipment (excluding the walk-in
cooler).

     Section 2.4.   LEASEBACK.  On the Closing Date, immediately
following  conveyance  of  title to  the  Properties  to  Seller,
Purchaser  shall  lease  to Seller and Seller  shall  lease  from
Purchaser, the Properties, pursuant to a separate lease for  each
Property, in the form attached hereto as Exhibit C, as  the  same
may  be  modified  if and to the extent necessary  to  make  them
enforceable under the laws of the state in which each  applicable
Property is located or to include statutorily required provisions
(each, a "Lease", and collectively, the "Leases"), each of  which
shall  be  guaranteed  by Apple American Group  LLC,  a  Delaware
limited  liability company ("AAG"), pursuant  to  the  terms  and
conditions  of the lease guaranty, the form of which is  attached
to  the Lease (the "Lease Guaranty").  Seller and Purchaser shall
negotiate in good faith during the Due Diligence Period to  agree
upon  a  mutually  acceptable form of Landlord's Agreement  which
will be attached as Exhibit B to the Lease.

                           ARTICLE III
                     [INTENTIONALLY OMITTED]
                                
                           ARTICLE IV
                          DUE DILIGENCE
                               
   Section 4.1. SURVEY AND TITLE OBJECTIONS. (a) On or before the
date of this Agreement, Purchaser has received (i) from the Title
Company  commitments to issue an owner's title  insurance  policy
with  respect  to  each of the Properties together  with  legible
copies   of   all   recorded   exceptions   set   forth   therein
(collectively, the "COMMITMENTS"), and (ii) from Seller copies of
the  existing  surveys in Seller's possession for the  Properties
(which Seller shall, prior to the Closing Date, have certified to
Purchaser  and  its  lender at Seller's  cost)  (the  "SURVEYS").
Seller  shall  deliver a signed Affidavit required by  the  Title
Company in order to provide sufficient endorsements to enable the
Title  Company  to issue the title policies in the form  required
hereunder  within ten (10) days after the Effective Date.   If  a
Commitment  discloses  the existence of an easement  affecting  a
Property which was recorded after the date of an existing  Survey
and  is not located on such Survey, Seller shall have such Survey
updated  at  its  cost to reflect the location of such  easement.
Within  the  first  twenty-five (25) days of  the  Due  Diligence
Period,  Purchaser shall deliver to Seller notice of  any  liens,
covenants,  conditions,  restrictions,  encumbrances  and   noted
violations  revealed by the Commitments or the Surveys  to  which
Purchaser  objects and is not required hereunder to  accept  (the
"TITLE  OBJECTIONS").   Any  items to which  Purchaser  does  not
timely  object  shall  be  deemed to  be  permitted  encumbrances
("PERMITTED   ENCUMBRANCES").   Notwithstanding  the   foregoing,
Purchaser shall not be obligated to object to any mortgage,  deed
of   trust,  mechanics  lien,  or  similar  lien  to  pay   money
(collectively,  "MONETARY LIENS"), and  any  such  item  will  be
deemed   to   be  objected  to  and  shall  not  be  a  Permitted
Encumbrance.  All Monetary Liens shall be satisfied  or  released
at  Closing.  For purposes hereof the term "MONETARY LIEN"  shall
not  mean  or include assessments under any local improvement  or
special  benefit district.  Purchaser shall not  be  entitled  to
object  to, and shall be deemed to have approved, any item  which
will  be  extinguished  upon  the  transfer  of  the  Properties.
Notwithstanding  anything to the contrary  contained  herein,  if
Seller  is  unable to eliminate any Title Objections (other  than
Monetary  Liens) by the Scheduled Closing Date, Seller may,  upon
prior  notice  to Purchaser, adjourn the Scheduled  Closing  Date
(such  adjourned  Closing  Date is  herein  referred  to  as  the
"ADJOURNED CLOSING DATE"), for a period (the "TITLE CURE PERIOD")
reasonably determined to be necessary by Seller in order to  cure
Title Objections but in any event not later than thirty (30) days
after the Scheduled Closing Date.

    (b)  Seller shall also have the right to invoke the aforesaid
mechanism  and adjourn the Scheduled Closing Date to an Adjourned
Closing  Date  if  additional time is needed in order  to  secure
either  the  consents  referred  in  Section  5.9(a)(iv)  or  the
prepayment of any mortgage or deed of trust loan secured  by  the
Properties,  by  providing Purchaser at least five  (5)  business
days  prior  notice  of the date of the Adjourned  Closing  Date,
which  for  purposes of this Section 4.1(b) can be no later  than
thirty  (30)  days after the Scheduled Closing Date,  which  date
shall  be  "time  of the essence" with respect to  both  parties'
obligation to close on such Adjourned Closing Date.

     Section 4.2.   [Intentionally Omitted]

     Section 4.3. NO ACTIONS. (a) Except as set forth in Section
4.3(b)  in no event shall Seller be required to bring any  action
or  institute any proceeding, or to incur any costs or  expenses,
in  order  to  attempt to eliminate any Title Objection.   Seller
shall  notify  Purchaser within ten (10) days  after  receipt  of
Purchaser's  notice  of  any  Title  Objection  ("Seller's  Title
Notice") whether or not Seller intends to make reasonable efforts
to  cure  the Title Objection in question (failing which,  Seller
shall  be  deemed to have elected not to cure the Title Objection
in  question).   Within ten (10) days after receipt  of  Seller's
Title  Notice  stating  that  Seller  will  not  cure  any  Title
Objection  (or  within ten (10) days of the end of  Seller's  ten
(10)  day  period  if  Seller failed to  send  a  Seller's  Title
Notice),  or,  if  Seller notified Purchaser  in  Seller's  Title
Notice that Seller will cure the Title Objection, within five (5)
days  after  any  subsequent notice from Seller  that  Seller  is
unable to, or unwilling to, cure the Title Objection in question,
Purchaser  shall  notify Seller that Purchaser shall  either  (i)
accept  the Properties subject to such objection to title without
abatement  of  the  Purchase  Price,  in  which  event  (x)  such
objection  to  title shall be deemed to be, for all  purposes,  a
Permitted   Encumbrance,  (y)  Purchaser  shall  close  hereunder
notwithstanding the existence of same, and (z) Seller shall  have
no  obligations whatsoever after the expiration of Due  Diligence
Period  with respect to Seller's failure to cause such  objection
to  title  to  be  eliminated, or (ii)  elect  to  eliminate  the
Property affected by such Title Objection from the terms of  this
Agreement  in  which case this Agreement shall be of  no  further
force  or  effect with respect only to such Property, except  for
those   rights  and  obligations  expressly  stated  to   survive
expiration  or  termination of this Agreement, and  the  Purchase
Price shall be reduced by the value allocated to such Property as
set  forth on Schedule 4.3 attached hereto.  Such election  under
subpart  (ii)  of  the immediately preceding  sentence  shall  be
deemed  a "DUE DILIGENCE DEFAULT" under the provisions of Section
4.7 hereof.

    (b)  Notwithstanding the provisions of Section 4.3(a), Seller
shall  be  obligated, at Closing to discharge all Monetary  Liens
affecting  any  Property.  Seller shall  have  no  obligation  to
discharge  any restrictive covenants, declarations, easements  or
other similar instruments which are executed and acknowledged  by
Seller  after the date hereof and prior to the Closing  Date  and
recorded  against  any  of  the Properties  to  the  extent  such
restrictive  covenants, declarations, easements or other  similar
instruments   were  entered  into  by  Seller   after   obtaining
Purchas