ASSIGNMENT OF PURCHASE AGREEMENT

 

                             

                         ASSIGNMENT

                             OF

                     PURCHASE AGREEMENT

 

      THIS ASSIGNMENT made and entered into this 13th day of

May,  2004,  by  and  between AEI FUND MANAGEMENT,  INC.,  a

Minnesota corporation, ("Assignor") and AEI Income &  Growth

Fund   XXII   Limited   Partnership,  a  Minnesota   limited

partnership,  and AEI Accredited Investor Fund 2002  Limited

Partnership, a Minnesota limited partnership (as tenants  in

common, together collectively referred to as "Assignee");

 

     WITNESSETH, that:

 

      WHEREAS,  on  the  22nd day of April,  2004,  Assignor

entered  into  a  Purchase Agreement  (referred  to  as  the

"Agreement")  for  that certain property  located  at  16010

Kensington  Drive,  Sugar  Land, TX  (the  "Property")  with

TranSugar Limited Partnership, a Nevada limited partnership,

as Seller; and

 

      WHEREAS,  Assignor desires to assign to AEI  Income  &

Growth  Fund  XXII Limited Partnership, an  undivided  forty

percent  (40.0%)  interest as a tenant in  common;  and  AEI

Accredited  Investor  Fund  2002  Limited  Partnership,   an

undivided  sixty percent (60.0%) interest  as  a  tenant  in

common,  of its rights, title and interest in, to and  under

the Agreement as hereinafter provided;

 

      NOW, THEREFORE, for One Dollar ($1.00) and other  good

and  valuable  consideration, receipt  of  which  is  hereby

acknowledged,  it is hereby agreed between  the  parties  as

follows:

 

     1.    Assignor  assigns all of its  rights,  title  and

     interest in, to and under the Agreement to Assignee, to

     have  and  to  hold  the same unto  the  Assignee,  its

     successors and assigns;

    

     2.    Assignee  hereby  assumes all  rights,  promises,

     covenants,   conditions  and  obligations   under   the

     Agreement  to be performed by the Assignor  thereunder,

     and  agrees  to be bound for all of the obligations  of

     Assignor under the Agreement.

 

All other terms and conditions of the Agreement shall remain

unchanged and continue in full force and effect.

 

 

ASSIGNOR:

 

AEI FUND MANAGEMENT, INC.,

a Minnesota corporation

 

 

By: /s/ Robert P Johnson

        Robert P. Johnson, its President

 

 

ASSIGNEE:

 

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

       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

        Robert P. Johnson, its President

 

 

 

                     PURCHASE AGREEMENT AND

                       ESCROW INSTRUCTIONS

 

 

     THIS   PURCHASE  AGREEMENT  AND  ESCROW  INSTRUCTIONS  (this

"Agreement") is made and entered into effective as of  this  22nd

day  of  April,  2004  (the  "Effective  Date")  by  and  between

TRANSUGAR  LIMITED  PARTNERSHIP,  a  Nevada  limited  partnership

("Seller"),   and   AEI  FUND  MANAGEMENT,  INC.,   a   Minnesota

corporation, or its successors or assigns (the "Buyer").

 

                           RECITALS:

 

     A.    Seller  is  the owner of that certain parcel  of  real

property  located  at  16010 Kensington Drive,  Sugarland,  Texas

77478,  as  more  particularly described on  Exhibit  A  attached

hereto (the "Land");

 

     B.   Constructed on the Land is a retail jewelry store known

as  "Jared-The Galleria of Jewelry" (the "Improvements") which is

leased   to   Sterling  Jewelers  Inc.,  a  Delaware  corporation

("Sterling")  pursuant  to that certain lease  agreement  between

Seller  and Sterling dated December 1, 2000, as amended  December

1,  2000  and April 5, 2001, a copy of which will be provided  to

Buyer   within   three   (3)  days  after  the   Effective   Date

(collectively, the "Lease").

 

     C.    Seller  desires to sell the Land and the  Improvements

(collectively,  the  "Property") to Buyer and  Buyer  desires  to

purchase  the Property from Seller upon the terms and  conditions

set forth in this Agreement.

 

                      TERMS AND CONDITIONS

 

     1.    Agreement For Purchase and Sale.  Seller hereby agrees

to  sell  the  Property  to Buyer, and  Buyer  hereby  agrees  to

purchase the Property from Seller, in accordance with and subject

to the terms and conditions of this Agreement.

 

     2.   Purchase Price and Payment.

    

          2.1   Purchase  Price.   The  purchase  price  for  the

     Property  will  be  Three Million Seven Hundred  Seventy-Six

     Thousand  Nine  Hundred Dollars ($3,776,900) (the  "Purchase

     Price").

    

           2.2   Payment.  The Purchase Price shall  be  paid  as

follows:

                   

               (a)  Deposit.

                   

                          (1)   Deposit.  Buyer will deposit  the

               amount  of  Fifty Thousand Dollars ($50,000)  into

               escrow with First American Title Company of Nevada

               ("Escrow   Holder")   as  Buyer's   deposit   (the

               "Deposit")  within one (1) business day  following

               the Effective Date.

 

                          (2)   Release of Deposit.  Upon Buyer's

               acceptance  or  waiver  of Buyer's  due  diligence

               contingencies on or before the expiration  of  the

               Due  Diligence Period, the Deposit  will  be  non-

               refundable  to  Buyer  except  in  the  event   of

               Seller's default or except as otherwise set  forth

               herein  and Escrow Holder will release the Deposit

               to    Seller,   without   any   further    written

               instructions  from  Buyer or  Seller.   Buyer  and

               Seller  agree to indemnify and hold Escrow  Holder

               harmless  from  and against any  loss  (including,

               without  limitation, reasonable  attorneys'  fees)

               arising out of or incurred in connection with  the

               release of the Deposit to Seller.

 

                         (3)  Credit Against Purchase Price.  The

               amount  of  the  Deposit will be  applied  to  the

               Purchase Price at the Close of Escrow, but will be

               retained  by Seller as its liquidated  damages  as

               provided in Section 12.2 if Escrow fails to  close

               as a result of Buyer's default.

 

                (b)  Balance Due at Close.  Not less than one (1)

          business  day  before the Close of Escrow,  Buyer  will

          deposit  into  escrow in immediately available  Federal

          Funds  an  amount equal to the balance of the  Purchase

          Price plus an amount sufficient to cover all of Buyer's

          closing costs.

 

     4.   Buyer's Due Diligence.

 

          4.1   Due Diligence Period.  The "Due Diligence Period"

shall commence on the Effective Date and expire thirty (30)  days

thereafter,  except  as  otherwise set  forth  herein  respecting

matters  of  adverse  change  or materially  adverse  information

("Supplemental Due Diligence") affecting the Reports (as  defined

below), which Supplemental Due Diligence if known to Seller shall

be  forwarded  to  Buyer and Buyer shall have a minimum  of  five

business  days  thereafter to review the same; the Due  Diligence

Period  shall  be extended, if necessary, to provide  Buyer  with

such additional review period of five business days after receipt

of  such  Supplemental Due Diligence.  Seller has, prior  to  the

execution  of this Agreement, without warranty as to accuracy  of

content,  except  as otherwise set forth herein,  provided  Buyer

with   complete  copies  of  all  studies,  reports,  agreements,

documents, plans, permits and entitlements in Seller's possession

concerning  the  Property, including, but  not  limited  to,  all

engineering drawings, soils reports, site history investigations,

toxic  or hazardous materials investigations or reports, planning

studies,  construction warranties, and title reports in  Seller's

possession (collectively the "Reports").

 

           4.2   Expiration of Due Diligence Period.  Buyer shall

approve  or disapprove, in writing, Buyer's due diligence  on  or

before  expiration  of  the  Due  Diligence  Period.   If   Buyer

disapproves  Buyer's  due diligence, in  writing,  on  or  before

expiration  of  the  Due Diligence Period, this  Agreement  shall

terminate  and Escrow Holder shall deliver to Buyer  the  Deposit

and  thereafter, neither Seller nor Buyer shall have any  further

obligation  or  liability under this Agreement,  except  for  the

Obligations Surviving Termination (as hereinafter defined).

 

 

     5.   Duration of Escrow and Escrow Instructions.

 

          5.1   Joint Escrow Instructions and General Conditions.

This Agreement shall constitute both agreements between Buyer and

Seller  and  joint escrow instructions to Escrow  Holder.  Escrow

Holder's  general conditions (the "General Conditions")  attached

hereto  as Exhibit B are incorporated herein by reference to  the

extent  they  are  not inconsistent with the provisions  of  this

Agreement.   If there is any inconsistency between the provisions

of  the General Conditions and this Agreement, the provisions  of

this   Agreement  shall  control.   If  any  provisions  of  this

Agreement are unacceptable to Escrow Holder, or if Escrow  Holder

requires  additional instructions, the Parties agree to make  any

deletions, substitutions and additions as counsel for the Parties

shall  mutually  approve and which do not  materially  alter  the

terms of this Agreement.

 

          5.2  Close of Escrow.

 

                     (a)  Closing Date.  Unless the Parties agree

          upon  an earlier closing date, Escrow shall close  five

          (5)  days after expiration of the Due Diligence  Period

          (the "Closing Date").

 

               (b)   Close of Escrow Defined.  "Close of  Escrow"

          will have occurred when Escrow Holder records a special

          warranty  deed  (as  defined  below)  transferring  the

          Property.

 

     6.   Title Examination.

 

          6.1   Procurement  of  Title Commitment.   As  soon  as

possible  after the Effective Date, Seller shall, at its expense,

provide  Buyer  with  a  current title  commitment  covering  the

Property (the "Title Commitment") issued by Escrow Holder, naming

Buyer  as proposed insured, in the amount of the Purchase  Price,

together  with legible copies of all documents described  in  the

Title Commitment.

 

          6.2   Title Exceptions.  On or before expiration of the

Due Diligence Period, Buyer may give written notice to Seller  of

any  objections  Buyer may have with respect  to  any  conditions

affecting  the  Property or as disclosed by the Title  Commitment

(the "Title Objections").  If Buyer fails to give any such notice

with  respect  to  any specific matters disclosed  in  the  Title

Commitment  on or before expiration of the Due Diligence  Period,

then  Buyer  shall be deemed to have waived any Title  Objections

with respect to all such matters as to which no objection is made

and any such matter shall be deemed a "Permitted Exception".  Any

title  matters  arising subsequent to the date  of  the  provided

Title Commitment may be reviewed by Buyer and Buyer shall have at

least  five  business days to review the same; if necessary,  the

Due  Diligence Period shall be extended to provide Buyer with  at

least five business days to review any such supplemental matters.

Any such extension of the Due Diligence Period shall also extend,

by  like  number of days, the Response Period and Title  Election

Deadline as defined below.

 

          6.3   Failure to Correct Title Objections.   Except  as

hereinafter expressly provided in this Section 6.3, Seller  shall

have  no  obligation whatsoever to remove, satisfy, or  otherwise

cure,  or  to incur any expense in connection with the curing  of

any  valid Title Objections of which Seller is notified by  Buyer

in accordance with Section 6.2.  Seller shall notify Buyer within

ten (10) days after Seller's receipt of written notice from Buyer

of  any  Title Objections (the "Response Period") whether or  not

Seller agrees to take action to cause such Title Objections to be

cured  on  or before the Closing Date although Seller  shall  not

otherwise  have  any obligation to take any action  to  cure  any

Title  Objections  other  than  to  release  liens  evidenced  by

mortgages,   deeds  of  trust,  financing  statements,   security

interests  and  similar security instruments  created  by  Seller

(such  instruments are collectively referred  to  herein  as  the

"Secured  Encumbrances").   Buyer  acknowledges  that   a   Title

Objection shall be deemed cured if Escrow Holder agrees to  issue

its  policy  of title insurance with respect to the  Property  to

Buyer  without  exception  to such Title  Objection.   If  Seller

expressly  agrees in writing to take action to cure any  of  such

Title  Objections pursuant to Buyer's notice, then  Seller  shall

have  assumed  the obligation to take action to  cure  only  such

Title  Objections as expressly set forth by Seller, but not other

Title Objections, on or before the Closing Date.  If Seller  does

not notify Buyer within the Response Period that it has agreed in

writing  to take action to cure Buyer's Title Objections,  or  if

Seller  thereafter fails to take any action to cure on or  before

the  Closing Date any Title Objections made by Buyer pursuant  to

Section 6.2 in accordance with Seller's written agreement to take

such  action  (which Closing Date shall, at Buyer's election,  be

extended for up to fifteen (15) additional days), Buyer  may,  as

its  sole remedy, elect by written notice to Seller on or  before

fifteen  (15)  days  after the end of the  Response  Period  (the

"Title Election Deadline"), to do one of the following:

 

               6.3.1       To  waive  any  such  Title  Objection

          (thereby  making  such  Title  Objection  a  "Permitted

          Exception") and to close the transaction in  accordance

          with  the terms of this Agreement without reduction  of

          the Purchase Price; or

 

               6.3.2     To terminate this Agreement, and in  the

          event  of such termination, Escrow Holder shall deliver

          to Buyer the Deposit and thereafter, neither Seller nor

          Buyer  shall  have any further obligation or  liability

          under    this    Agreement    except    for    Seller's

          indemnification obligations under Section 11.2 of  this

          Agreement  (as limited by Section 27 of this Agreement)

          and  Buyer's  Indemnity Obligations under Sections  9.2

          and  11.2  (collectively,  the  "Obligations  Surviving

          Termination").

 

     If Buyer fails to elect either option under this Section 6.3

     on  or  before the Title Election Deadline, Buyer  shall  be

     deemed to have elected to waive such Title Objection(s)  and

     to  close  the transaction in accordance with the  terms  of

     this Agreement as provided in Section 6.3.1 hereof.

 

     7.   Financing Contingency.  [Intentionally Omitted]

 

     8.   Representations.

 

          8.1   Seller's  Representations.  As an  inducement  to

Buyer  to  enter into this Agreement, Seller warrants,  covenants

and represents to Buyer, which representations shall be deemed to

be  true  and correct as of the Closing unless Seller shall  have

notified  Buyer to the contrary, and which warranties,  covenants

and representations shall survive closing for a period of one (1)

year, as follows:

 

               8.1.1       Authority.   Seller   is   a   limited

               partnership  duly organized, validly existing  and

               in  good  standing under the laws of the State  of

               Nevada and has the right, power, and authority  to

               enter  into  this Agreement and the right,  power,

               and authority to convey the Property in accordance

               with the terms and conditions of this Agreement.

 

               8.1.2      Environmental.  To the best of Seller's

               Actual Knowledge (as defined below) as of the date

               hereof, based on the Phase I Updated Environmental

               Site  Assessment  Report  prepared  by  Associated

               Environmental  Consultants,  Inc.  dated  May  29,

               2001,  the  Phase I Environmental Site  Assessment

               Report   prepared   by  Associated   Environmental

               Consultants,   Inc.  dated  June  2000   and   the

               Environmental Data Search prepared for  Associated

               Environmental,  Inc. by TelAll  Corporation  dated

               June  21,  2000  (collectively, the "Environmental

               Report"),   and   except  as  disclosed   in   the

               Environmental  Report, no hazardous materials  (as

               described  in  such  report) are  present  on  the

               Property   at   levels   that   require   removal,

               remediation  or  other  corrective  action   under

               applicable laws, ordinances, rules and regulations

               in  effect and applicable to the Property on  such

               date.   For  purposes of this Agreement, "Seller's

               Actual  Knowledge"  shall  mean  the  actual   (as

               opposed   to   constructive)  knowledge   of   Tom

               Robinson, Fred Goldstein, John Plunkett  or  Steve

               Shapiro.   Seller represents that such individuals

               are  privy to and hold such position within Seller

               as  to be familiar with the factual circumstances,

               if  the same might exist, for which knowledge  may

               be    imputed    under   commercially   reasonable

               circumstances,  upon such matters  as  Seller  may

               represent   to  its  actual  knowledge   in   this

               Agreement.

              

               8.1.3.     Property  and  Sterling  Matters.    To

               Seller's  Actual  Knowledge, the Property  is  not

               under threat of condemnation of eminent domain, is

               in  substantially good repair and  working  order,

               all  real  estate taxes are current, and  Sterling

               has    obtained   all   licenses,   permits    and

               certificates of occupancy necessary to conduct its

               business  on  the  Property.  To  Seller's  Actual

               Knowledge,  Sterling has not  declared  Seller  in

               default  under any term or provision of the  Lease

               relating   to   Landlord's  work  or  construction

               responsibilities,  matters of  zoning,  title,  or

               environmental concern, or any other matter, nor to

               the  Seller's  Actual  Knowledge,  has  any  event

               occurred  that,  with the passing of  time,  would

               constitute  a default by Seller under  the  Lease,

               nor  is  Sterling  in material default  under  the

               Lease.

              

          8.2   Buyer's  Representations.  As  an  inducement  to

Seller   to  enter  into  this  Agreement,  Buyer  warrants   and

represents  to  Seller  that  AEI  Fund  Management,  Inc.  is  a

corporation duly organized, validly existing and in good standing

under  the  laws  of the State of Minnesota and  has  the  right,

power,  and authority to enter into this Agreement and the right,

power, and authority to purchase the Property in accordance  with

the  terms  and  conditions