Document:

Contract of Sale

                           ASSIGNMENT
                               OF
                       PURCHASE AGREEMENT

      THIS  ASSIGNMENT  made and entered into this  22nd  day  of
April,  2004,  by  and  between  AEI  FUND  MANAGEMENT,  INC.,  a
Minnesota  corporation, ("Assignor") and  AEI  Real  Estate  Fund
XVIII  Limited Partnership, a Minnesota limited partnership,  and
AEI  Net  Lease  Income & Growth Fund XIX Limited Partnership,  a
Minnesota  limited  partnership (as tenants in  common,  together
collectively referred to as "Assignee");

     WITNESSETH, that:

      WHEREAS,  on  the 5th day of April, 2004, Assignor  entered
into  a  Contract  of  Sale (the "Agreement")  for  that  certain
property  located  at 4296 Kent Road, Stow, OH  (the  "Property")
with PRECO II CRIC LLC, as Seller; and

      WHEREAS, Assignor desires to assign to AEI Real Estate Fund
XVIII  Limited  Partnership, an undivided fifty  percent  (50.0%)
interest as a tenant in common; and AEI Net Lease Income & Growth
Fund  XIX Limited Partnership, an undivided fifty percent (50.0%)
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 REAL ESTATE FUND XVIII 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

AEI NET LEASE INCOME & GROWTH FUND XIX LIMITED PARTNERSHIP,
a Minnesota limited partnership

By:  AEI FUND MANAGEMENT XIX, INC.,
     a Minnesota corporation, its General Partner

By: /s/ Robert P Johnson
        Robert P. Johnson, its President

(Property: Stow, Ohio)

                        CONTRACT OF SALE

     THIS  CONTRACT OF SALE (this "Contract") is made and entered
into  as  of April 5, 2004 (the "Effective Date"), by and between
PRECO   II  CRIC  LLC,  a  Delaware  limited  liability   company
("Seller"),   and   AEI  FUND  MANAGEMENT   INC.,   a   Minnesota
corporation, or its successors or assigns  ("Purchaser").

                           ARTICLE I.

                      SALE OF THE PROPERTY

     1.1   SUBJECT PROPERTY.  For the consideration and upon  and
subject to the terms, provisions and conditions of this Contract,
Seller  agrees  to  sell to Purchaser, and  Purchaser  agrees  to
purchase from Seller, that certain parcel of real property  owned
by  Seller,  which is more fully described on Exhibit A  attached
hereto (the "Land") and all improvements (the "Improvements") and
appurtenances  (the "Appurtenances") located on or pertaining  to
the   Land  (the  Land,  Improvements  and  Appurtenances   being
collectively referred to herein as the "Property").  The Property
is  subject to and encumbered by (i) a Lease (the "Lease")  dated
as  of October 21, 2003, by and between Seller, as landlord,  and
Apple  Ohio LLC, a Delaware limited liability company ("Tenant"),
as  tenant,  and  (ii) the Permitted Exceptions  (as  hereinafter
defined) applicable to the Property.  Apple American Group LLC, a
Delaware   limited  liability  company  ("Guarantor"),   is   the
guarantor  of the performance of Tenant under the Lease  pursuant
to  a  Guaranty  dated  effective as of  October  21,  2003  (the
"Guaranty").

                           ARTICLE II.

                         PURCHASE PRICE

      2.1   PURCHASE PRICE.  The total Purchase Price (herein  so
called)  to  be paid by Purchaser to Seller for the  Property  is
Three Million Ninety-Seven Thousand Eight Hundred Eighty-Four and
No/100  Dollars ($3,097,884.00).  The total Purchase Price  shall
be  paid  to Seller in Current Funds (as hereinafter defined)  at
Closing (as hereinafter defined).

                          ARTICLE III.

                      EARNEST MONEY DEPOSIT

     3.1  EARNEST MONEY DEPOSIT.  Not later than two (2) business
days after the Effective Date, Purchaser shall deliver to Chicago
Title   Insurance   Company,  located  at  220  Commerce   Drive,
Suite   200,  Fort  Washington,  Pennsylvania  19034,  Attention:
Jon  R. Gundling (the "Title Company"), Twenty-Five Thousand  and
No/100  Dollars  ($25,000.00) (the "Earnest  Money  Deposit")  in
Current  Funds, to be held by the Title Company in escrow  to  be
applied  or  disposed of by the Title Company as is  provided  in
this  Contract.   In  the event Purchaser fails  to  deposit  the
Earnest  Money Deposit with the Title Company as herein provided,
Seller  may,  at  its option, terminate this Contract,  in  which
event neither Seller nor Purchaser shall have any further rights,
duties  or  obligations hereunder except for provisions  of  this
Contract  which  expressly  survive  the  termination   of   this
Contract.   As  used in this Contract, the term  "Current  Funds"
shall  mean wire transfers, certified funds or a cashier's  check
in  a form acceptable to the Title Company that would permit  the
Title Company to immediately disburse such funds.

     3.2   APPLICATION  AND INTEREST.  If the purchase  and  sale
hereunder is consummated, then the Earnest Money Deposit and  any
interest earned thereon shall be applied to the Purchase Price at
Closing  to  reduce  the amount required under Section  8.2(b)(i)
hereof.  In all other events, the Earnest Money Deposit shall  be
disposed  of  by the Title Company as provided in this  Contract.
The  Title  Company shall invest the Earnest Money Deposit  in  a
federally  insured interest-bearing account for  the  benefit  of
Purchaser at a bank deemed appropriate by the Title Company.  All
interest  earned  on the Earnest Money Deposit  is  part  of  the
Earnest  Money Deposit, to be applied or disposed of in the  same
manner as the Earnest Money Deposit under this Contract.

     3.3   DEMAND  FOR EARNEST MONEY DEPOSIT.  If for any  reason
the  Closing  does  not occur and either party  makes  a  written
demand  upon  the Title Company for payment of the Earnest  Money
Deposit, the Title Company shall give written notice to the other
party  of  such demand.  If the Title Company does not receive  a
written  objection from the other party to the  proposed  payment
within  ten  (10) business days after the giving of such  notice,
the Title Company is hereby authorized to make such payment.   If
the Title Company does receive such written objection within such
ten (10) business day period or if for any other reason the Title
Company  in good faith shall elect not to make such payment,  the
Title  Company shall continue to hold such amount until otherwise
directed  by  written  instructions from  both  parties  to  this
Contract or a final judgment of a court of competent jurisdiction
which  is not subject to further appeal.  The parties acknowledge
that the Title Company is acting solely as a stakeholder at their
request  and for their convenience, that the Title Company  shall
not be deemed to be the agent of either of the parties, except as
expressly set forth herein, and that the Title Company shall  not
be liable to either of the parties for any act or omission on its
part  unless taken or suffered in bad faith, in willful disregard
of  this  Contract or of any escrow agreement or involving  gross
negligence.   The  Title Company joins in the execution  of  this
Contract solely for the purpose of acknowledging receipt  of  the
Earnest Money Deposit and its agreement to hold the same pursuant
to the terms hereof.

                           ARTICLE IV.

                        TITLE AND SURVEY

     4.1  TITLE.  Seller shall deliver to Purchaser copies of the
following:   (a) Seller's existing Owner's Title  Policy  or  Pro
Forma Title Policy delivered to Seller at the closing of Seller's
purchase  of the Property (referred to hereinafter as the  "Title
Policy")  for  the Property [with the insurance amount  removed],
(b)  instruments, documents or agreements referenced in the Title
Policy that create or evidence conditions or exceptions to  title
affecting the Property (the "Exception Documents"), and  (c)  the
survey of the Property provided to Seller at its purchase of  the
Property (the "Existing Survey").  Within ten (10) business  days
following  the  Effective  Date, Seller  shall  cause  the  Title
Company  to  deliver to Purchaser a title commitment (the  "Title
Commitment")  for the Property, naming Purchaser as the  insured,
in  the amount of the Purchase Price, together with copies of any
documents  (which shall also constitute Exception Documents)  for
any  exceptions to the Title Commitment not previously  contained
in  the  Title  Policy.   Purchaser may, at  its  sole  cost  and
expense, obtain a new or updated survey of the Property (the "New
Survey").   Purchaser shall obtain the New Survey and an  updated
Phase  I  Environmental Report ("Environmental Report"),  at  its
sole  cost  and  expense, using reasonably  diligent  efforts  to
obtain  the  same in a timely manner.  Within five  (5)  business
days of the Effective Date, Purchaser shall notify Seller whether
or  not  it  will be obtaining a New Survey and/or  Environmental
Report.

     4.2   REVIEW  OF  TITLE  AND  SURVEY.   Notwithstanding  the
expiration  of  either the Inspection Period or the Environmental
Inspection  Period, Purchaser shall have until five (5)  business
days after receipt of the last of the Title Commitment, Exception
Documents,  Existing Survey, and New Survey,  if  applicable,  in
which  to notify Seller in writing (the "Title Objection Notice")
of  any objections Purchaser has to any matters shown or referred
to in the Title Commitment, the Exception Documents, the Existing
Survey  or  any  New Survey; PROVIDED, that Purchaser  shall  not
object  to current real estate taxes and assessments which  shall
be  Permitted  Exceptions  hereunder.   Any  title  encumbrances,
exceptions  or  other matters which are set forth  in  the  Title
Commitment, the Exception Documents, the Existing Survey  or  any
New  Survey,  and to which Purchaser does not object  within  the
aforementioned five (5) business day period, shall be  deemed  to
be  permitted  exceptions to the status of Seller's  title  (such
encumbrances,  exceptions or other matters,  together  with  such
other  matters  included  pursuant to other  provisions  of  this
Contract, shall be referred to as the "Permitted Exceptions").

     4.3  OBJECTIONS TO STATUS OF TITLE AND SURVEY.  If Purchaser
properly  objects to any item shown or referred to in  the  Title
Commitment, Exception Documents or on the Existing Survey or  any
New  Survey within the five (5) business day period set forth  in
Section  4.2, Seller shall be given until five (5) business  days
after  receipt of the Title Objection Notice to notify  Purchaser
whether or not Seller will cure, prior to Closing and at Seller's
option  and sole discretion but without any obligation to do  so,
any objection to the condition of title raised by Purchaser.   If
Seller  notifies Purchaser that it elects not to  cure  any  such
objections, then Purchaser may, at its option exercisable  within
five  (5)  days  following the date of receipt  by  Purchaser  of
written  notice  from  Seller stating that Seller  is  unable  or
unwilling  to cure such objections, either (a) accept such  title
as  Seller can deliver, in which case all exceptions to title set
forth  in  the  Title  Commitment, Exception Documents,  Existing
Survey and New Survey which are not removed shall be deemed to be
Permitted Exceptions, or (b) terminate this Contract by notice in
writing  to Seller in which event the Title Company shall  return
the  Earnest  Money Deposit to Purchaser and neither party  shall
have  any further rights, duties or obligations hereunder, except
for   provisions   of  this  Contract  which  expressly   survive
termination  of this Contract.  In the event Purchaser  fails  to
notify  Seller,  within such five (5) day period, that  Purchaser
has  elected to proceed under either subpart (a) or  (b)  of  the
immediately preceding sentence, Purchaser shall be deemed to have
elected  to  proceed under subpart (a), and this  Contract  shall
remain  in  full force and effect.  If Seller notifies  Purchaser
that  it elects to cure any such objections but is unable to cure
same  by  Closing or if Seller fails to notify Purchaser  of  its
intentions with respect to such objections and fails to cure same
by  Closing, then Purchaser may, at its option, either (x) accept
such  title as Seller can deliver in which case the parties shall
proceed with Closing and all exceptions to title set forth in the
Title  Commitment, Exception Documents, Existing Survey  and  New
Survey  which  are not removed shall be deemed  to  be  Permitted
Exceptions, or (y) terminate this Contract by notice  in  writing
to  Seller  at  Closing, in which event the Title  Company  shall
return  the Earnest Money Deposit to Purchaser and neither  party
shall  have  any further rights, duties or obligations  hereunder
except  for  provisions of this Contract which expressly  survive
termination of this Contract.

     4.4   OTHER  PERMITTED EXCEPTIONS.  The Permitted Exceptions
shall  include  those matters shown in the Title Commitment,  the
Exception Documents, the Existing Survey and any New Survey which
become  Permitted  Exceptions pursuant to sections  4.2  and  4.3
above  and, in addition, the following: (a) the Lease; (b)  taxes
and  assessments  for  the  year  in  which  Closing  occurs  and
subsequent  years; (c) liens and encumbrances arising  after  the
date hereof to which Purchaser consents in writing; (d) Building,
zoning (provided the same shall permit the use of the Property as
a  restaurant without the need for a special use permit, variance
or  grandfathering)  and  subdivision laws  and  ordinances,  and
local,  state  and  federal laws, rules and  regulations;(e)  Any
title  exceptions  arising  out of the  acts  of  Purchaser;  and
(f)  Encumbrances  permitted or arising in  accordance  with  the
terms of the Lease.

                           ARTICLE V.

                     INSPECTION BY PURCHASER

     5.1   INSPECTION RIGHTS.  Purchaser shall have a  period  of
time  commencing on the Effective Date and expiring at 5:00  p.m.
Boston,   Massachusetts  time  twenty-one  (21)  days  from   the
Effective Date (the "Inspection Period"), within which to examine
the  Property  and  the Lease and conduct its  feasibility  study
thereof.   Purchaser shall complete physical  inspection  of  the
Property  by April 14, 2004.  Notwithstanding the foregoing,  (a)
Purchaser  shall  not interfere with, interrupt  or  disrupt  the
operation of any Tenant's business on the Property and,  further,
such  access  by  Purchaser and/or its  agents,  contractors  and
representatives shall be subject to the rights of the Tenant  and
the restrictions on Seller's access to the Property set forth  in
the  Lease;  (b)  Purchaser  shall not permit  any  construction,
mechanic's or materialman's liens or any other liens to attach to
the  Property or any portion thereof by reason of the performance
of  any work or the purchase of any materials by Purchaser or any
other  party  in  connection with any studies or tests  conducted
pursuant  to this Section 5.1; (c) Purchaser shall give not  less
than  two (2) business days notice to Seller prior to entry  onto
the  Property  and  shall permit Seller to have a  representative
present during all investigations and inspections conducted  with
respect  to  the  Property;  and (d)  Purchaser  shall  take  all
reasonable  actions  and  implement  all  reasonable  protections
necessary to ensure that all actions taken in connection with the
investigations   and  inspections  of  the  Property,   and   all
equipment,  materials and substances generated, used  or  brought
onto the Property pose no threat to the safety of persons or  the
environment and cause no damage to the Property, Tenant or  other
persons.   Purchaser shall indemnify, defend and hold Seller  and
the  Tenant  harmless for, from and against any and  all  claims,
liabilities,  causes  of  action,  damages,  liens,  losses   and
expenses  (including,  without limitation,  attorneys'  fees  and
costs)  incident to, resulting from or in any way arising out  of
any   of   Purchaser's   or   its   agents',   contractors'    or
representatives'  activities on the Property or from  Purchaser's
breach  of  its obligations or agreements under this  Article  V.
Purchaser's  indemnity obligations contained in this Section  5.1
shall  survive  the Closing and not be merged therein  and  shall
also survive any termination of this Contract.

     5.2  APPROVAL OF INSPECTIONS. If Purchaser determines at any
time  prior to the expiration of the Inspection Period  that  the
Property  is  not satisfactory to Purchaser, then  Purchaser  may
terminate   this  Contract  by  delivering  written   notice   of
termination to Seller prior to the end of such Inspection Period.
If  Purchaser properly terminates this Contract pursuant to  this
Section  5.2, then this Contract shall be terminated,  the  Title
Company shall return the Earnest Money Deposit to Purchaser,  and
neither   party  shall  have  any  further  rights,   duties   or
obligations  hereunder except with respect to the  provisions  of
this  Contract  which expressly survive the termination  of  this
Contract.  If Purchaser does not timely deliver to Seller written
notice   of   termination  during  the  Inspection  Period,   the
conditions  of  this Section 5.2 shall be deemed  satisfied,  and
Purchaser may not thereafter terminate this Contract pursuant  to
this Section 5.2.

     5.3   MATTERS  DELIVERED BY SELLER.  Seller  has  previously
delivered  or shall deliver to Purchaser copies of the  documents
on  Schedule 5.3 to this Contract, (collectively, the "Submission
Matters"), except as otherwise noted on Schedule 5.3.

     5.4   ENVIRONMENTAL INSPECTION PERIOD.  Notwithstanding  the
termination of the Inspection Period or the Purchaser's right  to
terminate as set forth in Section 4.3 hereunder, Purchaser  shall
have  a  period  of  time commencing on the  Effective  Date  and
expiring  at  5:00  p.m.,  Boston, Massachusetts  time  five  (5)
business  days  after  Purchaser's receipt of  the  Environmental
Report  (the  "Environmental Inspection Period")  to  review  the
Environmental  Report.  If the Environmental Report  obtained  by
Purchaser  discloses either (i) the existence  of  any  Hazardous
Substance (as such term is defined in the Lease) on the Property,
the  existence of which violates any Environmental Laws (as  such
term is defined in the Lease), or (ii) any material environmental
matter which, in the reasonable opinion of Purchaser, based  upon
the   counsel   of   the  environmental  consultants   or   other
environmental  advisors  retained  by  Purchaser,  would  warrant
additional investigation and/or remediation with respect  to  the
Property  or would require a No Further Action Letter (herein  so
called)  with  respect to such remediation,  then  Purchaser  may
terminate   this  Contract  by  delivering  written   notice   of
termination  to Seller on or before the Environmental  Inspection
Period, but in no event shall the Environmental Inspection Period
extend  beyond thirty (30) days after the Effective Date of  this
Contract.    If  Purchaser  properly  terminates  this   Contract
pursuant  to  this  Section  5.4, then  this  Contract  shall  be
terminated,  the  Title Company shall return  the  Earnest  Money
Deposit  to  Purchaser, and neither party shall have any  further
rights,  duties or obligations hereunder except with  respect  to
the  provisions  of  this Contract which  expressly  survive  the
termination  of  this  Contract.  If Purchaser  does  not  timely
deliver  to  Seller  written  notice of  termination  during  the
Environmental   Inspection  Period,  the   conditions   of   this
Section  5.4  shall  be deemed satisfied, and Purchaser  may  not
thereafter terminate this Contract pursuant to this Section  5.4.
Notwithstanding the foregoing, if Purchaser chooses not to obtain
an  Environmental Report, then this Section 5.4 shall not  apply,
and Purchaser shall complete any and all environmental inspection
by the end of the Inspection Period.

                           ARTICLE VI.

     REPRESENTATIONS AND WARRANTIES; DISCLAIMERS AND WAIVERS

     6.1  REPRESENTATIONS AND WARRANTIES OF PURCHASER.  Purchaser
represents and warrants to Seller as of the Effective Date and as
of  the  Closing  Date, as applicable, that (a)  Purchaser  is  a
corporation duly organized and validly existing under the laws of
the  State of Minnesota, (b) Purchaser has the full right,  power
and  authority to enter into this Contract and to consummate  the
transactions   contemplated  herein;  and   (c)   this   Contract
constitutes a valid and legally binding obligation of  Purchaser,
enforceable in accordance with its terms.

     6.2   REPRESENTATIONS  AND  WARRANTIES  OF  SELLER.   Seller
represents and warrants to Purchaser as of the Effective Date and
as  of  the  Closing Date, as applicable that  (a)  Seller  is  a
limited  liability  company duly organized and  validly  existing
under the laws of the State of Delaware; (b) Seller has the  full
right,  power  and authority to enter into this Contract  and  to
consummate  the  transactions  contemplated  herein;   (c)   this
Contract  constitutes a valid and legally binding  obligation  of
Seller,  enforceable  in  accordance  with  its  terms;  (d)  the
Submission  Matters  furnished by Seller to Purchaser  are  true,
complete  and  correct copies of the documents  they  purport  to
represent;  (e)  Seller has not delivered to Tenant  or  received
from Tenant any notice of default under the Lease; (f) Seller has
not  received  any written notice of any existing  or  threatened
lawsuits concerning the Property; (g) Seller has not received any
written   notice  of  any  threatened  or  pending   condemnation
proceedings  affecting the Property; (h) Seller has not  received
any  written notice of any actions or proceedings pending,  which
would  materially affect the Property or Tenant; (i)  Seller  has
not  received any written notice of any written lease  or  leases
with  respect to the Property; and (j) from the date  the  Seller
acquired  title  to  the Property, Seller has  not  received  any
written notice from any governmental authorities stating that the
use  and  operation  of the Property is not  in  compliance  with
applicable local, state and federal laws, ordinances, regulations
and requirements.

     6.3   NO ADDITIONAL REPRESENTATIONS OR WARRANTIES OF SELLER.
PURCHASER  ACKNOWLEDGES  AND AGREES  THAT,  EXCEPT  AS  EXPRESSLY
SPECIFIED  IN SECTION 6.2 OF THIS CONTRACT, SELLER HAS NOT  MADE,
AND  SELLER HEREBY SPECIFICALLY DISCLAIMS, ANY REPRESENTATION  OR
WARRANTY  OF  ANY KIND, ORAL OR WRITTEN, EXPRESS OR  IMPLIED,  OR
ARISING  BY OPERATION OF LAW, WITH RESPECT TO THE PROPERTY,   THE
LEASE,  TENANT OR GUARANTOR, INCLUDING, BUT NOT LIMITED  TO,  ANY
WARRANTIES     OR    REPRESENTATIONS    AS    TO    HABITABILITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ZONING,
TAX CONSEQUENCES, PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES,
OPERATING   HISTORY   OR  PROJECTIONS,  VALUATION,   GOVERNMENTAL
APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS,
THE  TRUTH, ACCURACY OR COMPLETENESS OF ANY INFORMATION  PROVIDED
BY  OR  ON BEHALF OF SELLER TO PURCHASER, THE FINANCIAL CONDITION
OF  THE  GUARANTOR   OR  TENANT, OR ANY  OTHER  MATTER  OR  THING
REGARDING   GUARANTOR,  TENANT,  THE  PROPERTY  OR   THE   LEASE.
PURCHASER AGREES TO ACCEPT THE PROPERTY AND ACKNOWLEDGES THAT THE
SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE BY SELLER  ON
AN "AS IS, WHERE IS, AND WITH ALL FAULTS" BASIS.  PURCHASER IS AN
EXPERIENCED  PURCHASER OF PROPERTIES SUCH  AS  THE  PROPERTY  AND
PURCHASER  HAS  MADE  OR  WILL MAKE PURCHASER'S  OWN  INDEPENDENT
INVESTIGATION OF THE PROPERTY. THE PROVISIONS OF THIS SECTION 6.3
SHALL SURVIVE THE CLOSING HEREUNDER.

     6.4    SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.   The
representations and warranties of Seller and Purchaser set  forth
in  this Article VI shall survive the Closing for a period of six
(6)  months subsequent to Closing, and any action brought upon  a
claim  by Purchaser or Seller against the other party for  breach
of  any  representation or warranty contained in this Article  VI
must  be  brought, if at all, within six (6) months after Closing
or such claim and action shall be forever barred.

                          ARTICLE VII.

             CONDITIONS PRECEDENT TO PURCHASER'S AND
                      SELLER'S PERFORMANCE

     7.1   CONDITIONS  TO  PURCHASER'S OBLIGATIONS.   Purchaser's
obligation  under  this  Contract to  purchase  the  Property  is
subject  to  the fulfillment of each of the following  conditions
(any or all of which may be waived by Purchaser):

          (a)   the  representations  and  warranties  of  Seller
     contained herein shall be true, accurate and correct in  all
     material respects as of the Closing Date;

          (b)   Seller shall have delivered all the documents and
     other  items required pursuant to Section 8.2(a), and  shall
     have   performed,  in  all  material  respects,  all   other
     covenants,  undertakings and obligations, and complied  with
     all conditions required by this Contract to be performed  or
     complied with by the Seller at or prior to the Closing;

          (c)   no  Event of Default (as such term is defined  in
     the  Lease) shall have occurred and be continuing under  the
     Lease as of the Closing Date; and

          (d)   Seller  shall  have  delivered  to  Purchaser  an
     Estoppel  Certificate executed and delivered  by  Tenant  in
     accordance with the Lease.

     7.2    CONDITIONS   TO   SELLER'S   OBLIGATIONS.    Seller's
obligation under this Contract to sell the Property to  Purchaser
is subject to the fulfillment of each of the following conditions
(any or all of which may be waived by Seller):

          (a)   the  representations and warranties of  Purchaser
     contained herein shall be true, accurate and correct in  all
     material respects as of the Closing Date; and

          (b)  Purchaser shall have delivered the Purchase Price,
     and other funds required hereunder and all the documents and
     other  items required pursuant to Section 8.2(b), and  shall
     have   performed,  in  all  material  respects,  all   other
     covenants,  undertakings and obligations, and complied  with
     all conditions required by this Contract to be performed  or
     complied with by Purchaser at or prior to Closing.

                          ARTICLE VIII.

                             CLOSING

     8.1  CLOSING DATE.

          (a)  TIME AND PLACE.  Provided the terms and conditions
     set   forth  in  this  Contract  have  been  fulfilled,  the
     consummation  of the purchase and sale of the Property  (the
     "Closing") shall take place by delivery of documents to  the
     office  of  the Title Company on or before May 6, 2004  (the
     "Closing Date").

          (b)   DELIVERY OF DOCUMENTS IN ESCROW; TITLE INSURANCE.
     The  documents required hereunder to be delivered at Closing
     shall be delivered by Seller and Purchaser into escrow  with
     the  Title  Company, which shall record and/or  deliver  all
     documents deposited into escrow hereunder upon unconditional
     payment of the Purchase Price to the Title Company and shall
     remit  the Purchase Price to Seller simultaneously with  the
     recordation and/or delivery of all documents deposited  into
     escrow hereunder.

     8.2  ITEMS TO BE DELIVERED AT THE CLOSING.

          (a)  SELLER.  At the Closing, Seller shall deliver,  or
     cause  to  be delivered, to Purchaser each of the  following
     items with respect to the Property:

               (i)   A Limited Warranty Deed (the "Deed"), in the
          form of the deed through which Seller obtained title to
          the Property, subject to the Permitted Exceptions, duly
          executed by Seller;

               (ii)  An  Assignment and Assumption of the  Lease,
          dated as of the Closing Date, in the form of Exhibit  B
          hereto  (the  "Lease  Assignment"),  duly  executed  by
          Seller;

               (iii)      A  Bill of Sale and General Assignment,
          dated the Closing Date, in the form of Exhibit C hereto
          (the "Bill of Sale"), duly executed by Seller;

               (iv)  Counterpart originals, of the Lease and  the
          Guaranty,  except  that  Seller  may,  at  its  option,
          deliver  such  originals directly to  Purchaser  within
          five (5) business days after Closing;

               (v)   A  Non-Foreign  Affidavit  for  purposes  of
          compliance  with  Section 1445 (b)(2) of  the  Internal
          Revenue  Code of 1986, as amended, and the  regulations
          adopted thereunder;

               (vi)  Notice to Tenant from Seller of the sale  of
          the  Property  hereunder to Purchaser  and  instructing
          Tenant  to send all correspondence under the  Lease  to
          Purchaser (the "Notice Letter");

               (vii)     The Title Commitment for the issuance of
          an  Owner's Title Insurance Policy (the "Owner's  Title
          Policy")  for the Property effective as of the  Closing
          Date which insures Purchaser in an amount equal to  the
          Purchase  Price,  and indicates no  encumbrances  other
          than the Permitted Exceptions; and

               (viii)    Other items reasonably requested by  the
          Title   Company  for  the  sale  of  the  Property   in
          accordance  with  this Contract or  for  administrative
          requirements for consummating the Closing.

          (b)    PURCHASER.   At  the  Closing,  Purchaser  shall
     deliver  or cause to be delivered, to Seller or perform,  as
     applicable, each of the following items with respect to  the
     Property:

               (i)  The Purchase Price in Current Funds;

               (ii)  Such  additional funds in Current Funds,  as
          may  be  necessary to cover Purchaser's  share  of  the
          closing costs and prorations hereunder;

               (iii)      The Lease Assignment, dated as  of  the
          Closing Date, duly executed by Purchaser;

               (iv)  If the Purchaser is corporation, partnership
          or  other  entity,  a certificate from  an  officer  of
          Purchaser,   or  the  general  partner  of   Purchaser,
          evidencing  that the person or persons  executing  this
          Contract  and  the  closing  documents  on  behalf   of
          Purchaser  have full right, power and authority  to  do
          so,  and  attaching  the articles of incorporation  and
          bylaws  (or other appropriate organizational documents)
          of  Purchaser  and appropriate resolutions  authorizing
          this   Contract   and  the  transactions   contemplated
          hereunder;

               (v)  The Notice Letter duly executed by Purchaser;

               (vi) Consent Agreement duly executed by Purchaser
          pursuant to which Purchaser will consent to and  agree
          to be bound by the Landlord  Agreement referred  to on
          Schedule 5.3 hereto; and

               (vi) Other items reasonably requested by the Title
          Company for the sale of the Property in accordance with
          this  Contract  or for administrative requirements  for
          consummating the Closing.

     8.3  COSTS OF CLOSING.  Purchaser shall pay all of the costs
and  expenses  incurred in connection with the  transfer  of  the
Property   contemplated  by  this  Contract  including,   without
limitation,  the following:  (i) all costs and expenses  incurred
by  Purchaser  in connection with its due diligence investigation
of  the Property, (ii) all premiums and fees charged by the Title
Company  for  the Owner's Title Policy and the mortgagee's  title
policy, if applicable, (iii) all escrow fees charged by the Title
Company  for  the  closing  on this sale  transaction,  (iv)  all
transfer  taxes, intangible taxes, documentary taxes and  stamps,
recording  fees  and  other governmental  taxes  and  charges  in
connection with the conveyance of the Property, and (v) all costs
associated  with  Purchaser's  loan  for  the  purchase  of   the
Property,  if  any.  If the Closing hereunder  occurs,  Purchaser
shall  receive a credit against Purchase Price in an  amount  not
greater  than  Five  Thousand and No/100 Dollars  ($5,000.00)  to
offset  a portion of the costs and expenses incurred by Purchaser
in  connection with the transfer of the Property contemplated  by
this  Contract.   Each party shall pay its  own  legal  fees  and
advisory  fees incidental to the execution of this  Contract  and
the  consummation of the transactions contemplated  hereby.   The
provisions  of  this  Section 8.3 shall survive  the  Closing  or
earlier termination of this Contract.

     8.4   PRORATIONS.  The Base Rent and Additional Rent payable
to  the  Landlord under the Lease shall be prorated  through  the
Closing,  with  Seller being entitled to all such Base  Rent  and
Additional  Rent through and including the Closing Date.   Except
for  the  proration  of rents as aforesaid,  there  shall  be  no
proration  of  normal and customarily pro ratable  items  as  the
parties  agree that Tenant are required to pay, pursuant  to  the
terms of the Lease, all items usually prorated in transactions of
the  type described herein; PROVIDED, that if Tenant does not pay
such  amounts under the terms of the Lease, Purchaser  shall  not
have, and Purchaser hereby waives and releases, any claim against
Seller  for  payment  of such amounts.  The  provisions  of  this
Section 8.4 shall survive the Closing.

                           ARTICLE IX.

                    CONDEMNATION OR CASUALTY

     9.1  CONDEMNATION.

          (a)   In  the event that all or any significant portion
     of  the Property is condemned or taken by eminent domain  or
     conveyed  by  deed  in lieu thereof, or if any  condemnation
     proceeding  is commenced for all or any significant  portion
     of  the Property prior to Closing, either party may elect to
     terminate  this  Contract by written notice thereof  to  the
     other  party  within  ten  (10) days  after  such  party  is
     notified  of  the condemnation, taking or deed  in  lieu  or
     institution   of   such   condemnation   proceeding.    Upon
     termination  of  this Contract as provided in  this  Section
     9.1(a),  all rights, duties and obligations hereunder  shall
     cease  and  be  of no further force or effect  (except  with
     respect to the provisions hereof which expressly survive the
     termination  of this Contract). If neither party  terminates
     this  Contract as aforesaid, then both parties shall proceed
     to close the transaction contemplated herein pursuant to the
     terms hereof, in which event Purchaser shall have the rights
     set  forth in the Lease (including, without limitation,  the
     rights,   if   any  exist,  of  the  landlord   to   receive
     condemnation  proceeds with respect to such condemnation  or
     taking)  and  there shall be no reduction  in  the  Purchase
     Price.   For  purposes of this Section 9.1(a),  "significant
     portion"  of the Property shall be deemed to be any  portion
     of  the  Land  which, if subject to a condemnation,  eminent
     domain or similar proceeding, gives rise to the right of the
     Tenant under the Lease to terminate the Lease.

          (b)   In the event that less than a significant portion
     of  the  Property  is  condemned, taken by  eminent  domain,
     conveyed  by  deed in lieu thereof or is the  subject  of  a
     condemnation proceeding, neither party shall have the  right
     to  terminate this Contract and the Closing shall occur with
     no reduction of the Purchase Price, and any award or payment
     made therefor shall be paid as provided in the Lease.

     9.2  CASUALTY.

          (a)  In the event that all or a substantial portion  of
     the  Property shall be damaged or destroyed by fire or other
     casualty  prior to Closing, either party may terminate  this
     Contract by written notice thereof to the other party within
     ten  (10) days after such party is notified of the casualty.
     Upon  termination  of  this Contract  as  provided  in  this
     Section 9.2(a), all rights, duties and obligations hereunder
     shall  cease  and be of no further force or  effect  (except
     with  respect  to  the  provisions  hereof  which  expressly
     survive the termination of this Contract).  If neither party
     terminates  this  Contract as aforesaid, then  both  parties
     shall  proceed to close the transaction contemplated  herein
     pursuant to the terms hereof, in which event Purchaser shall
     have  the rights set forth in the Lease (including,  without
     limitation,  the  rights, if any exist, of the  landlord  to
     receive  insurance proceeds with respect to  such  casualty)
     with respect to the Property and there shall be no reduction
     in the Purchase Price.  In the event less than a substantial
     portion of a Property shall be damaged or destroyed by  fire
     or  other casualty prior to Closing, then the parties  shall
     proceed  in  accordance  with the  third  sentence  in  this
     Section 9.2(a).

          (b)  For the purposes of Section 9.2(a), a "substantial
     portion" of a Property shall be deemed to be any portion  of
     the  Property with either a fair market value or replacement
     cost  equal to or greater than twenty-five percent (25%)  of
     the Purchase Price.

                           ARTICLE X.

                      DEFAULTS AND REMEDIES

     10.1 DEFAULT BY PURCHASER.  If Purchaser refuses or fails to
consummate the Closing under this Contract for reasons other than
as  expressly  set forth in Section 5.2, 5.4 (if  applicable)  or
Article  IX hereof or other than due to a failure of a  condition
precedent  to  Purchaser's obligation to close as  set  forth  in
Section 7.1 hereof, the Purchaser shall be in default under  this
Contract  and  Seller  may,  as its sole  and  exclusive  remedy,
terminate  this Contract in which event the Title  Company  shall
pay  the  Earnest  Money Deposit to Seller and  Seller  shall  be
entitled  to  receive  and retain the Earnest  Money  Deposit  as
liquidated  damages  (Seller and Purchaser  hereby  acknowledging
that the amount of damages in the event of Purchaser's default is
difficult  or impossible to ascertain but that such amount  is  a
fair estimate of such damages), and neither party shall have  any
further  rights,  duties, or obligations  hereunder  except  with
respect  to  the  provisions hereof which expressly  survive  the
termination of this Contract.

     10.2  DEFAULT  BY  SELLER.  If Seller refuses  or  fails  to
consummate the Closing under this Contract other than  due  to  a
termination  permitted under this Contract  or  a  failure  of  a
condition precedent to Seller's obligation to close as set  forth
in Section 7.2 hereof, then Seller shall be in default under this
Contract and Purchaser may, at Purchaser's sole option and as its
sole  and  exclusive remedies, either (a) terminate this Contract
in  which  event  neither party shall have  any  further  rights,
duties  or  obligations  hereunder except  with  respect  to  the
provisions   of  this  Contract  which  expressly   survive   the
termination hereof, and Purchaser shall be entitled to  a  refund
of the Earnest Money Deposit, or (b) enforce specific performance
of  this  Contract against Seller.  In no event shall  Seller  be
liable   to   Purchaser  for  any  damages,  including,   without
limitation,  any  actual, punitive, speculative or  consequential
damages or damages for loss of opportunity or lost profit, in the
event of Seller's default hereunder.

     10.3  ATTORNEYS' FEES.  If it shall be necessary for  either
Purchaser  or Seller to employ an attorney to enforce its  rights
pursuant  to  this  Contract,  the  non-prevailing  party   shall
reimburse  the  prevailing  party for its  reasonable  attorneys'
fees.   The  provisions of this Section 10.3  shall  survive  the
Closing or termination of this Contract.

                           ARTICLE XI.

                      BROKERAGE COMMISSIONS

     11.1   BROKERAGE  COMMISSION.   Seller  and  Purchaser  each
represent  to  the other that each has had no dealings  with  any
broker,  finder  or other party concerning the  purchase  of  the
Property  other  than Marcus & Millichap (the "Broker").   Seller
hereby  agrees  to  pay  at Closing a commission  to  the  Broker
pursuant  to the terms of a separate written agreement; provided,
however,  that Seller's obligation to pay, and Broker's right  to
receive, this commission or any other amount with respect to this
Contract  is expressly conditioned upon Closing the sale  of  the
Property  and Seller's receipt of the Purchase Price  under  this
Contract.   Broker shall have no right to receive this commission
or  any  other  amount with respect to this Contract  unless  and
until  Closing  shall  be  final and fully  consummated  and  the
Purchase  Price  has  been  paid as provided  in  this  Contract.
Purchaser and Seller each agree to indemnify, defend and hold the
other harmless for, from and against any and all loss, liability,
damage,   cost   or   expense  (including,  without   limitation,
reasonable attorneys' fees) arising out of or paid or incurred by
such  party  by reason of any claim to any broker's, finder's  or
other  fee  in  connection  with this transaction  by  any  party
claiming by, through or under such party other than Broker.   The
indemnity  obligations  set  forth in  this  Section  11.1  shall
survive the Closing or the termination of this Contract.

                          ARTICLE XII.

                          MISCELLANEOUS

     12.1  NOTICES.  Any notice provided or permitted to be given
under  this  Contract must be in writing and  may  be  served  by
depositing  the same in the United States Mail, postage  prepaid,
certified or registered mail with return receipt requested, or by
delivering the same in person to the party to be notified  via  a
delivery   service,  Federal  Express  or  any  other  nationally
recognized  overnight  courier service  that  provides  a  return
receipt  showing  the  date of actual delivery  of  same  to  the
addressee  thereof, or by facsimile copy transmission with  proof
of   receipt.   Any  party  giving  notice  hereunder  shall  use
reasonable efforts to send a copy of any such notice by facsimile
transmission on the same date as deposited in the mail  or  given
to  such  delivery service.  Notice given in accordance  herewith
shall be deemed given and shall be effective upon the earlier  of
actual  receipt  (including, without  limitation,  receipt  of  a
facsimile transmission) or refusal of delivery.  For purposes  of
notice, the addresses of the parties shall be as follows:

     If to Seller:  PRECO II CRIC LLC
                    One Exeter Plaza
                    Boston, Massachusetts 02116
                    Attention:  Jay Hooper
                    Telephone No.:  617/303-4400
                    Facsimile No.:  617/303-4440
                    Email Address:  jhooper@criccapital.com

     With a copy to:     Liechty & McGinnis, P.C.
                    7502 Greenville Avenue, Suite 750
                    Dallas, Texas 75231
                    Attention: G. Dean Reed, Esq.
                    Telephone No.:  214/265-0008
                    Facsimile No.:  214/378-5938
                    Email Address:  dreed@lmlawyers.com

     If to Purchaser:                         AEI Fund Management
                    Inc.
                    30 East 7th Street, Suite 1300
                    St. Paul, Minnesota  55101
                    Attention:  George Rerat
                    Telephone No: 800/328-3519
                    Facsimile No.:  651/227-7705
                    Email Address:  grerat@aeifunds.com

     With a copy to:                          The  Daugherty  Law
                    Firm
                    30 East 7th Street, Suite 1300
                    St. Paul, Minnesota  55101
                    Attention:  Michael Daugherty
                    Telephone No: 612/720-0777
                    Facsimile No.:  612/677-3181
                    Email Address:  mbdlaw@usinternet.com

     If to Title Company:                        Chicago    Title
                    Insurance Company
                    220 Commerce Drive, Suite 200
                    Fort Washington, Pennsylvania 19034
                    Attention:  Jon R. Gundling, Esq.
                    Telephone No:  800/647-2867
                    Facsimile No.:  215/619-7115
                    Email Address:  gundlingj@ctt.com

     12.2  GOVERNING LAW.  THE LAWS OF THE STATE  OF  OHIO  SHALL
GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION
OF THIS CONTRACT.

     12.3  ENTIRETY AND AMENDMENTS.  This Contract  embodies  the
entire  agreement  between the parties and supersedes  all  prior
agreements   and   understandings,  if  any,  relating   to   the
transaction  described herein, and may be amended or supplemented
only  by  an instrument in writing executed by the party  against
whom enforcement is sought.

     12.4 ASSIGNMENT.  Purchaser may assign its rights under this
Contract to an entity controlling, controlled by, or under common
control  with  Purchaser  without the prior  written  consent  of
Seller; provided, that Purchaser must immediately provide  Seller
with  a  copy  of  any  instrument assigning  this  Contract  and
evidence  of  the  Purchaser's  affiliation  with  the  assignee.
Except  as  expressly  provided in the preceding  sentence,  this
Contract  may  not be assigned in whole or in part  by  Purchaser
without the prior written consent of Seller, which consent may be
granted  or  withheld  by Seller in Seller's  sole  and  absolute
discretion.   In the event of an assignment of this  Contract  by
Purchaser, Purchaser shall not be released from any liability  or
obligations  hereunder, and Purchaser shall promptly  deliver  to
Seller  a  copy  of  the  instrument effecting  such  assignment.
Subject to the foregoing, this Contract shall be binding upon and
inure to the benefit of Seller and Purchaser and their respective
heirs, personal representatives, successors and assigns.

     12.5  SURVIVAL.   Except  as  otherwise  expressly  provided
herein,  no  representations, warranties, covenants or agreements
contained in this Contract shall survive the termination of  this
Contract  or  the  Closing  and the assignment  of  the  Property
hereunder.

     12.6 TIME OF ESSENCE.  It is expressly agreed by the parties
hereto  that time is of the essence with respect to this Contract
and Closing hereunder.

     12.7  MULTIPLE COUNTERPARTS.  To facilitate execution,  this
Contract  may  be  executed in as many  counterparts  as  may  be
convenient  or  required.  It shall not  be  necessary  that  the
signature  of, or on behalf of, each party, or that the signature
of  all  persons  required  to bind any  party,  appear  on  each
counterpart.  Facsimile copies of a signature of any party  shall
be  deemed  the  same  as the original.  All  counterparts  shall
collectively  constitute a single instrument.  It  shall  not  be
necessary in making proof of this Contract to produce or  account
for  more  than  a single counterpart containing  the  respective
signatures of, or on behalf of, each of the parties hereto.   Any
signature  page  to  any counterpart may be  detached  from  such
counterpart without impairing the legal effect of the  signatures
thereon  and thereafter attached to another counterpart identical
thereto except having attached to it additional signature pages.

     12.8 RISK OF LOSS.  Subject to the provisions of Article  IX
of  this Contract, risk of loss or damage to the Property, or any
part  thereof, by fire or any other casualty from the  date  this
Contract is fully executed up to the time of Closing will  be  on
Seller and, thereafter, will be on Purchaser.

     12.9  NO  RECORDATION OF CONTRACT.  In no event  shall  this
Contract  or  any  memorandum hereof be recorded  in  the  public
records  of  the  state or county in which  any  portion  of  the
Property  is  situated,  and any such  recordation  or  attempted
recordation  shall constitute a breach of this  Contract  by  the
party responsible for such recordation or attempted recordation.

     12.10      BUSINESS DAYS.  All references to "business days"
contained herein are references to normal working business  days,
i.e.,  Monday through Friday of each calendar week, exclusive  of
federal and national bank holidays.  In the event that any  event
hereunder 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.

     12.11     CAPTIONS.  The captions, headings and arrangements
used in this Contract are for convenience only and do not in  any
way  affect,  limit, amplify or modify the terms  and  provisions
hereof.

      12.12     NUMBER AND GENDER OF WORDS.  Whenever herein  the
singular number is used, the same shall include the plural  where
appropriate,  and  words of any gender shall include  each  other
gender where appropriate.

      12.13      INTERPRETATION.  No provision of  this  Contract
shall  be construed in favor of, or against, any particular party
by reason of any presumption with respect to the drafting of this
Contract;  both parties, being represented by counsel and  having
fully  participated in the negotiation of this instrument, hereby
agree  that  this Contract shall not be subject to the  principle
that  a  contract  would  be construed against  the  party  which
drafted the same.

      12.14     INCORPORATION OF EXHIBITS.  All exhibits attached
and  referred to in this Contract are hereby incorporated  herein
as  though fully set forth in (and shall be deemed to be  a  part
hereof) this Contract.

       12.15      THIRD-PARTY  BENEFICIARIES.   Nothing  in  this
Contract, express or implied, is intended to confer any rights or
remedies  upon  any  person, other than the parties  hereto  and,
subject to the restrictions on assignment herein contained, their
respective successors and assigns.

      12.16      FAXED SIGNATURES.  The parties agree that  faxed
signatures  may be used to expedite the transaction  contemplated
by  this  Contract.  Each party intends to be bound by its  faxed
signature and each is aware that the other will rely on the faxed
signature,  and  each acknowledges such reliance and  waives  any
defenses  to  the  enforcement  of the  documents  effecting  the
transaction  contemplated  by this  Contract  based  on  a  faxed
signature.

             [SIGNATURES APPEAR ON FOLLOWING PAGES]

     IN  WITNESS  WHEREOF,  the undersigned  have  executed  this
Contract of Sale to be effective as of the Effective Date.

                                SELLER:

                                PRECO II CRIC LLC,
                                a   Delaware  limited   liability
                                company

                                By: /s/ Marjorie S Palace
                                      Name: Marjorie S Palace
                                      Title: Authorized Person

                                Date:
                                PURCHASER:

                                AEI FUND MANAGEMENT INC.,
                                a Minnesota corporation

                                By: /s/ Robert P Johnson
                                      Name: Robert P Johnson
                                      Title: President

                                Date: 4-7-04

                                Purchaser's EIN:  41-1328249

                RECEIPT OF EARNEST MONEY DEPOSIT
                 AND AGREEMENT OF TITLE COMPANY

     Chicago Title Insurance Company (the "Title Company") hereby
acknowledges  the  receipt of one (1) fully signed  and  executed
copy of this Contract.

      Upon  receipt, the Title Company agrees to hold the Earnest
Money Deposit in escrow as escrow agent for the benefit of Seller
and  Purchaser  and to dispose of the Earnest  Money  Deposit  in
strict accordance with the terms and provisions of this Contract.

                                CHICAGO TITLE INSURANCE COMPANY

                                By: /s/ Jon Gundling
                                      Name:
                                      Title: Vice President

                                Date: 4-13-04

                          SCHEDULE 5.3

                       SUBMISSION MATTERS

1.   Lease dated as of October 21, 2003 (the "Lease").

2.   Memorandum of Lease dated October 21, 2003.
3.   Guaranty executed by Apple American Group LLC with respect
to the Lease and dated effective as of October 21, 2003.
4.   Certificates of Insurance for the Property in Seller's
possession.
5.   Survey of the Property in Seller's possession.
6.   Phase I Environmental Site Assessment with respect to the
Property.
7.   Zoning evidence of the Property in Seller's possession.
8.   Landlord Agreement dated October 21, 2003.

                            EXHIBIT A

                        LEGAL DESCRIPTION

SITUATED IN THE CITY OF STOW, COUNTY OF SUMMIT AND STATE OF  OHIO
AND  KNOWN  AS BEING PART OF LOT 2 OF THE ORIGINAL STOW  TOWNSHIP
AND MORE FULLY DESCRIBED AS FOLLOWS:

BEGINNING  AT  A POINT AT THE SOUTHWEST CORNER OF  SAID  LOT  29;
THENCE NORTH 04 DEG. 19' 45" WEST ALONG THE WESTERLY LINE OF SAID
LOT  29  A  DISTANCE OF 1640.28 FEET TO A POINT; THENCE NORTH  85
DEG.  40'  15" EAST A DISTANCE OF 283.01 FEET TO A POINT;  THENCE
NORTH  04 DEG. 19' 45" WEST A DISTANCE OF 196.18 FEET TO A POINT;
THENCE  SOUTH  82 DEG. 17' 36" EAST ALONG THE SOUTHERLY  LINE  OF
KENT  ROAD (S.R. 59) A DISTANCE OF 42.96 FEET TO A POINT;  THENCE
SOUTH 85 DEG. 05' 10" EAST ALONG THE SOUTHERLY LINE OF SAID  KENT
ROAD  A DISTANCE OF 491.88 FEET TO A POINT; THENCE SOUTH 81  DEG.
28'  35"  EAST  ALONG  THE SOUTHERLY LINE OF  SAID  KENT  ROAD  A
DISTANCE OF 144.50 FEET TO A POINT; THENCE SOUTH 82 DEG. 03'  43"
EAST  ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A  DISTANCE  OF
37.88  FEET TO A P.K. NAIL, WHICH IS THE TRUE PLACE OF  BEGINNING
FOR  THE PARCEL OF LAND HEREIN DESCRIBED; THENCE CONTINUING SOUTH
82 DEG. 03' 43" EAST ALONG THE SOUTHERLY LINE OF SAID KENT ROAD A
DISTANCE OF 73.30 FEET TO A 5/8" CAPPED REBAR (T.E. GIFFELS 5960)
SET  AT  A  POINT OF CURVATURE; THENCE ALONG THE ARC OF A  CIRCLE
CURVING TO THE LEFT HAVING A CENTRAL ANGLE OF 01 DEG. 18'  12"  A
RADIUS OF 2822.04 FEET, A TANGENT OF 32.10 FEET, A CHORD OF 64.19
FEET,  A  CHORD BEARING SOUTH 81 DEG. 10' 12" EAST,  AND  AN  ARC
LENGTH  OF 64.19 FEET TO A DRILL HOLE SET; THENCE SOUTH  09  DEG.
16'  55" WEST A DISTANCE OF 1.58 FEET TO A 5/8" CAPPED REBAR  (T.
E. GIFFELS 5960) SET; THENCE SOUTH 78 DEG. 37' 30" EAST ALONG THE
SOUTHERLY  LINE OF SAID KENT ROAD A DISTANCE OF 12.47 FEET  TO  A
5/8" REBAR FOUND; THENCE NORTH 04 DEG. 47' 30" WEST A DISTANCE OF
1.04  FEET TO A DRILL HOLE SET; THENCE SOUTH 78 DEG. 37' 30" EAST
ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A DISTANCE  OF  60.08
FEET TO A POINT; THENCE SOUTH 04 DEG. 07' 15" EAST A DISTANCE  OF
237.40  FEET  TO  A  5/8" CAPPED REBAR (T.E. GIFFELS  5960)  SET;
THENCE SOUTH 85 DEG. 52' 45" WEST A DISTANCE OF 207.91 FEET TO  A
5/8"  CAPPED REBAR (T.E. GIFFELS 5960) SET; THENCE NORTH 03  DEG.
17'  38" WEST A DISTANCE OF 287.10 FEET TO A P.K. NAIL, WHICH  IS
THE TRUE PLACE OF BEGINNING, AND CONTAINING 1.2470 ACRES OF LAND,
MORE OR LESS, AS SHOWN ON A PLAT OF SURVEY DATED JUNE 17, 1996 BY
GARY  R.  ROUSE,  REGISTERED  SURVEYOR  WITH  GBC  ENGINEERS  AND
ARCHITECTS, INC.

TOGETHER WITH THE EASEMENT RIGHTS CONTAINED IN THE OPERATION  AND
EASEMENT   AGREEMENT  BETWEEN  DAYTON  HUDSON   CORPORATION   AND
DEVELOPERS DIVERSIFIED REALTY CORPORATION FILED JULY 21, 1994  IN
VOLUME OR 1721 PAGE 5 SUMMIT COUNTY RECORDS, AS AMENDED BY  FIRST
AMENDMENT  FILED  APRIL 18, 1996 IN VOLUME  OR  2156,  PAGE  1242
SUMMIT COUNTY RECORDS.ASSIGNMENT AND ASSUMPTION OF LEASE

     This instrument is executed and Delivered as of the 30th day
of  April,  2004,  pursuant  to that  certain  Contract  of  Sale
("Agreement")  by  and  between PRECO II  CRIC  LLC,  a  Delaware
limited liability company ("Assignor"), and AEI REAL ESTATE  FUND
XVIII LIMITED PARTNERSHIP, a Minnesota limited partnership, as to
an undivided 50% interest, and AEI NET LEASE INCOME & GROWTH FUND
XIX  LIMITED PARTNERSHIP, a Minnesota limited partnership, as  to
an  undivided  50% interest, as tenants in common  (collectively,
"Assignee").

     1.   ASSIGNMENT OF LEASE AND GUARANTY.  For good and valuable
consideration,  Assignor hereby assigns, sells,  transfers,  sets
over  and  conveys to Assignee, and Assignee hereby accepts  such
assignment, all right, title and interest of Assignor in, to  and
under (i) that certain Lease dated as of October 21, 2003, by and
between  Assignor, as Landlord, and APPLE OHIO  LLC,  a  Delaware
limited  liability company ("Tenant"), as Tenant  (the  "Lease"),
all  rights and obligations of Assignor under the Lease; and (ii)
that  certain  Guaranty  with respect to the  Lease  (the  "Lease
Guaranty"),  executed as of October 21, 2003, by  Apple  American
Group  LLC, a Delaware limited liability company with respect  to
that certain parcel of real property located in Stow, Ohio, which
is  more  fully  described  on  Exhibit  A  attached  hereto.   A
Memorandum of Lease dated October 21, 2003, was recorded November
17,  2003,  in  the Summit County Records having  Instrument  No.
54975994.

2.   ASSUMPTION; INDEMNITIES.   Assignee   hereby   assumes   the
obligations of  Assignor  under  the Lease arising from and after
the Closing  Date (as defined in the Agreement) and shall defend,
indemnify   and  hold  harmless  Assignor  from  and  against any
liability, damages, causes of action,  expenses,  and  attorneys'
fees incurred  by  any  such  indemnified  party by reason of the
failure of Assignee  to  fulfill, perform, discharge, and observe
its obligations with respect to the Lease arising on or after the
date hereof.  Assignor  shall defend, indemnify and hold harmless
Assignee  from  and  against  any liability, damages,  causes  of
action, expenses, and attorneys'  fees  incurred  by  Assignee by
reason of the failure of Assignor to fulfill, perform, discharge,
and observe  its  obligations  with  respect to the Lease arising
before the date hereof.

3.   DISCLAIMER.  Except  as  otherwise expressly provided in the
Agreement, the Lease is assigned  by  Assignor  and  accepted  by
Assignee   AS  IS,  WHERE  IS,  WITHOUT  ANY  REPRESENTATIONS  OR
WARRANTIES OF WHATSOEVER NATURE, EXPRESS OR IMPLIED, IT BEING THE
INTENTION  OF  ASSIGNOR  AND  ASSIGNEE  EXPRESSLY  TO  NEGATE AND
EXCLUDE ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, THE IMPLIED
WARRANTIES OF MERCHANTABILITY  AND  FITNESS  FOR  ANY  PARTICULAR
PURPOSE, WARRANTIES CREATED BY ANY AFFIRMATION OF FACT OR PROMISE
OR BY ANY DESCRIPTION  OF  THE  LEASE ASSIGNED HEREUNDER, AND ALL
OTHER REPRESENTATIONS AND WARRANTIES WHATSOEVER.

4.   GOVERNING LAW.    This  instrument  shall  be  governed  and
controlled by the law of the State of Ohio.

      IN  WITNESS  WHEREOF,  the  undersigned  have  caused  this
Assignment and Assumption of Lease to be executed as of the  date
first written above.

                              ASSIGNOR:

                              PRECO II CRIC LLC,
                              a Delaware limited liability
                              company

                              By: /s/ Marjorie S Palace
                                      Marjorie S. Palace,
                                      Authorized Person

COMMONWEALTH OF MASSACHUSETTS )
                                   ) SS.
COUNTY OF SUFFOLK                       )

     I,  Andrea M Mullen, a Notary Public in and for said County,
in  the  State  aforesaid, DO HEREBY CERTIFY,  that  Marjorie  S.
Palace,  personally  known to me to be the Authorized  Person  of
PRECO   II  CRIC  LLC,  a  Delaware  limited  liability   company
("Company"),  and personally known to me to be  the  same  person
whose  name  is  subscribed to the foregoing instrument  as  such
Authorized  Person, appeared before me this  day  in  person  and
acknowledged that she signed and delivered the said instrument as
her own free and voluntary act, and as the free and voluntary act
and  deed of said Company, for the uses and purposes therein  set
forth.

     GIVEN  under  my  hand and Notarial Seal this  29th  day  of
April, 2004.

                              /s/ Andrea M Mullen
                                   Notary Public

[notary seal]

                              ASSIGNEE:

                              AEI  REAL ESTATE FUND XVIII LIMITED
                              PARTNERSHIP,
                              a Minnesota limited partnership, as
                              to  an  undivided 50%  interest  as
                              tenant in common

                              By:  AEI Fund Management XVIII, Inc.,
                                   a Minnesota corporation,
                                   its corporate general partner

                               By:   /s/ Robert P Johnson
                                         Robert P. Johnson,
                                         President

                              AEI  NET LEASE INCOME & GROWTH FUND
                              XIX LIMITED PARTNERSHIP,
                              a Minnesota limited partnership, as
                              to  an  undivided 50%  interest  as
                              tenant in common

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

                               By:  /s/ Robert P Johnson
                                        Robert P. Johnson,
                                        President

This Instrument Prepared by:

G. Dean Reed, Esq.
Liechty & McGinnis, P.C.
7502 Greenville Avenue, Suite 750
Dallas, Texas  75231

STATE OF MINNESOTA       )
                         )
COUNTY OF RAMSEY         )

      I,  Jennifer L Schreiner, a Notary Public in and  for  said
County, in the State aforesaid, DO HEREBY CERTIFY, that Robert P.
Johnson,  personally known to me to be the President of AEI  FUND
MANAGEMENT  XVIII,  INC.,  a Minnesota corporation,  on  its  own
behalf  and as the corporate general partner for AEI REAL  ESTATE
FUND  XVIII  LIMITED PARTNERSHIP, a Minnesota limited partnership
("Company"),  and personally known to me to be  the  same  person
whose  name  is  subscribed to the foregoing instrument  as  such
President, appeared before me this day in person and acknowledged
that  he signed and delivered the said instrument as his own free
and voluntary act, and as the free and voluntary act and deed  of
said Company, for the uses and purposes therein set forth.

      GIVEN  under my hand and Notarial Seal  this        day  of
April, 2004.

                                    /s/ Jennifer L Schreiner
                                          Notary Public
[notary seal]

STATE OF MINNESOTA       )
                         )
COUNTY OF RAMSEY         )

      I,  Jennifer L Schreiner, a Notary Public in and  for  said
County, in the State aforesaid, DO HEREBY CERTIFY, that Robert P.
Johnson,  personally known to me to be the President of AEI  FUND
MANAGEMENT XIX, INC., a Minnesota corporation, on its own  behalf
and  as the corporate general partner for AEI NET LEASE INCOME  &
GROWTH   FUND  XIX  LIMITED  PARTNERSHIP,  a  Minnesota   limited
partnership  ("Company"), and personally known to me  to  be  the
same  person whose name is subscribed to the foregoing instrument
as  such  President, appeared before me this day  in  person  and
acknowledged that he signed and delivered the said instrument  as
his own free and voluntary act, and as the free and voluntary act
and  deed of said Company, for the uses and purposes therein  set
forth.

      GIVEN  under my hand and Notarial Seal this         day  of
April, 2004.

                                    /s/ Jennifer L Schreiner
                                          Notary Public

                            EXHIBIT A

                        LEGAL DESCRIPTION

SITUATED IN THE CITY OF STOW, COUNTY OF SUMMIT AND STATE OF  OHIO
AND  KNOWN AS BEING PART OF LOT 29 OF THE ORIGINAL STOW  TOWNSHIP
AND MORE FULLY DESCRIBED AS FOLLOWS:

BEGINNING  AT  A POINT AT THE SOUTHWEST CORNER OF  SAID  LOT  29;
THENCE NORTH 04 DEG. 19' 45" WEST ALONG THE WESTERLY LINE OF SAID
LOT  29  A  DISTANCE OF 1640.28 FEET TO A POINT; THENCE NORTH  85
DEG.  40'  15" EAST A DISTANCE OF 283.01 FEET TO A POINT;  THENCE
NORTH  04 DEG. 19' 45" WEST A DISTANCE OF 196.18 FEET TO A POINT;
THENCE  SOUTH  82 DEG. 17' 36" EAST ALONG THE SOUTHERLY  LINE  OF
KENT  ROAD (S.R. 59) A DISTANCE OF 42.96 FEET TO A POINT;  THENCE
SOUTH 85 DEG. 05' 10" EAST ALONG THE SOUTHERLY LINE OF SAID  KENT
ROAD  A DISTANCE OF 491.88 FEET TO A POINT; THENCE SOUTH 81  DEG.
28'  35"  EAST  ALONG  THE SOUTHERLY LINE OF  SAID  KENT  ROAD  A
DISTANCE OF 144.50 FEET TO A POINT; THENCE SOUTH 82 DEG. 03'  43"
EAST  ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A  DISTANCE  OF
37.88  FEET TO A P.K. NAIL, WHICH IS THE TRUE PLACE OF  BEGINNING
FOR  THE PARCEL OF LAND HEREIN DESCRIBED; THENCE CONTINUING SOUTH
82 DEG. 03' 43" EAST ALONG THE SOUTHERLY LINE OF SAID KENT ROAD A
DISTANCE OF 73.30 FEET TO A 5/8" CAPPED REBAR (T.E. GIFFELS 5960)
SET  AT  A  POINT OF CURVATURE; THENCE ALONG THE ARC OF A  CIRCLE
CURVING TO THE LEFT HAVING A CENTRAL ANGLE OF 01 DEG. 18'  12"  A
RADIUS OF 2822.04 FEET, A TANGENT OF 32.10 FEET, A CHORD OF 64.19
FEET,  A  CHORD BEARING SOUTH 81 DEG. 10' 12" EAST,  AND  AN  ARC
LENGTH  OF 64.19 FEET TO A DRILL HOLE SET; THENCE SOUTH  09  DEG.
16'  55" WEST A DISTANCE OF 1.58 FEET TO A 5/8" CAPPED REBAR  (T.
E. GIFFELS 5960) SET; THENCE SOUTH 78 DEG. 37' 30" EAST ALONG THE
SOUTHERLY  LINE OF SAID KENT ROAD A DISTANCE OF 12.47 FEET  TO  A
5/8" REBAR FOUND; THENCE NORTH 04 DEG. 47' 30" WEST A DISTANCE OF
1.04  FEET TO A DRILL HOLE SET; THENCE SOUTH 78 DEG. 37' 30" EAST
ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A DISTANCE  OF  60.08
FEET TO A POINT; THENCE SOUTH 04 DEG. 07' 15" EAST A DISTANCE  OF
237.40  FEET  TO  A  5/8" CAPPED REBAR (T.E. GIFFELS  5960)  SET;
THENCE SOUTH 85 DEG. 52' 45" WEST A DISTANCE OF 207.91 FEET TO  A
5/8"  CAPPED REBAR (T.E. GIFFELS 5960) SET; THENCE NORTH 03  DEG.
17'  38" WEST A DISTANCE OF 287.10 FEET TO A P.K. NAIL, WHICH  IS
THE TRUE PLACE OF BEGINNING, AND CONTAINING 1.2470 ACRES OF LAND,
MORE  OR  LESS,  AS SURVEYED IN APRIL 2004 BY LOUIS  J.  GIFFELS,
REGISTERED SURVEYOR NO. 7790 WITH GBC DESIGN, INC.

TOGETHER WITH THE EASEMENT RIGHTS CONTAINED IN THE OPERATION  AND
EASEMENT   AGREEMENT  BETWEEN  DAYTON  HUDSON   CORPORATION   AND
DEVELOPERS DIVERSIFIED REALTY CORPORATION FILED JULY 21, 1994  IN
VOLUME OR 1721 PAGE 5 SUMMIT COUNTY RECORDS, AS AMENDED BY  FIRST
AMENDMENT  FILED  APRIL 18, 1996 IN VOLUME  OR  2156,  PAGE  1242
SUMMIT COUNTY RECORDS.

PARCEL NO. 56-16366

COMMONLY KNOWN AS:  4296 KENT ROAD, STOW, OH

                            LEASE

                           BETWEEN

                      PRECO II CRIC LLC

                        as Landlord,

                     and APPLE OHIO LLC

                          as Tenant

                Dated: As of October 21, 2003

                      TABLE OF CONTENTS

  1.   BASIC PROVISIONS                                  1
  2.   LEASING AGREEMENT; TERM                           2
  3.   RENT                                              4
  4.   TAXES                                             5
  5.   ENVIRONMENTAL MATTERS                             6
  6.   COMPLIANCE WITH REQUIREMENTS                      9
  7.   COVENANT AGAINST LIENS                            9
  8.   USE AND ENJOYMENT                                 10
  9.   TENANT'S PROPERTY; LIEN WAIVER                    12
  10.  ALTERATIONS; MAINTENANCE AND REPAIR               12
  11.  CONDEMNATION AND CASUALTY DAMAGE                  14
  12.  INSURANCE                                         17
  13.  ASSIGNMENT AND SUBLETTING                         18
  14.  INDEMNIFICATION                                   20
  15.  DEFAULT; REMEDIES                                 22
  16.  SURRENDER OF PREMISES                             27
  17.  SUBORDINATION AND ATTORNMENT                      28
  18.  ESTOPPEL CERTIFICATES                             29
  19.  NOTICES                                           29
  20.  LEASEHOLD FINANCING                               30
  21.  RIGHT OF FIRST REFUSAL                            31
  22.  TENANT'S RIGHT TO SUBSTITUTE THE PREMISES         33
  23.  GUARANTY                                          36
  24.  MISCELLANEOUS                                     37

                   SCHEDULES AND EXHIBITS

EXHIBIT A           LAND LEGAL DESCRIPTION

EXHIBIT B           LANDLORD AGREEMENT
EXHIBIT C           MEMORANDUM OF LEASE
EXHIBIT D           GUARANTY
EXHIBIT E           SUBORDINATION , NON-DISTURBANCE AND
                    ATTORNMENT AGREEMENT

                            LEASE

THIS LEASE ("Lease") dated October .21, 2003, is made and
entered into by and between PRECO II CRlC LLC, a Delaware
limited liability company ("Landlord"), and APPLE OHIO LLC,
a Delaware limited liability company ("Tenant").

                    I.   BASIC PROVISIONS

1.1. Premises Address:               4296 Kent Road
                                     Stow, Ohio 44224

1.2. Landlord Name and Address:      PRECO II CRJC LLC
                                     One Exeter Place
                                     Boston, MA 02116.

1.3. Tenant Name and Address:        Apple Ohio LLC
                                     6200 Oak Tree Boulevard,
                                     Suite 250
                                     Independence, OH 44131
                                     Attn: Chief Financial Officer

1.4. Lease Date:                     October 21, 2003

1.5. Term:                           Twenty (20) Lease Years

1.6. Options to Extend:              Four (4) periods of five
                                     (5) Lease Years each

1.7. Exhibits:                       Exhibit A -Land Legal Description
                                     Exhibit B -Landlord Agreement
                                     Exhibit C -Memorandum of Lease
                                     Exhibit D -Guaranty of Lease
                                     Exhibit E -Subordination, Non-Disturbance
                                                and Attornment Agreement

                 2. LEASING AGREEMENT; TERM

     2.1.  LEASING AGREEMENT. Landlord leases to Tenant  and
Tenant  leases from Landlord upon and subject to  the  terms
and  conditions set forth in this Lease certain real  estate
consisting of approximately 84,358 square feet of  land,  as
legally  described in attached Exhibit A, together with  all
easements, rights and appurtenances thereto, including,  but
not  limited to all of Landlord's rights, if any, to use any
common  areas, parking, access drives and sidewalks  in  any
center  of which the real estate may be a part (the "Land").
The Land is commonly known as 2250 Claremont Avenue, Ashland
("City"), Ashland County, Ohio. The Land, together with  the
restaurant  and other related improvements now or  hereafter
thereon  ("Improvements"), are referred to in this Lease  as
the  "Premises."  The  Premises are leased  subject  to  all
restrictions, covenants, encumbrances and other  matters  of
record on the date of this Lease.

     2.2.  TERM.  The  term  of this  Lease  ("Term")  shall
commence  ("Commencement  Date")  on  the  date  set   forth
opposite the signatures of the parties on the signature page
of  this Lease and, unless extended or earlier terminated as
provided   herein,  shall  expire  ("Expiration  Date")   at
midnight  on  the  last day of the twentieth  (20th)  "Lease
Year"  thereafter. "Lease Year" shall me~ and refer to  that
period  of  twelve  (12)  full consecutive  calendar  months
beginning with the first full calendar month of the Term and
each  subsequent period of twelve (12) consecutive  calendar
months  during the Term, provided that if the Term commences
on  other  than the first day of a calendar month, then  the
initial   fractional  month  of  the  Term  plus  the   next
succeeding twelve (12) full calendar months shall constitute
the first Lease Year of the Term and provided, further, that
if  this  Lease is terminated prior to the Expiration  Date,
the  last Lease Year may contain less than twelve (12)  full
calendar months.

     2.3. EXTENSION OF THE TERM. Provided that this Lease is
in  full  force  and  effect and no  Event  of  Default  has
occurred and is continuing, Tenant shall have the option  to
extend  the  Term for up to four (4) successive  periods  of
five (5) Lease Years each upon all of the provisions of this
Lease, which extension options shall automatically be deemed
exercised two hundred seventy (270) days prior to  the  then
current  Expiration  Date without the  requirement  for  any
further  notice; provided, however, that Tenant  shall  have
the  right  to  tem1inate  this Lease  (and  void  any  such
automatic  extension  and all remaining  extension  options)
effective  as of any then current Expiration Date by  giving
written notice thereof to Landlord not less than two hundred
seventy (270) days before such then current Expiration Date;
and  provided,  further,  that  this  Lease  shall  not   be
automatically extended (and Tenant shall be deemed  to  have
given written notice of non-renewal) if on the date which is
two  hundred  seventy (270) days prior to the  then  current
Expiration  Date  an Event of Default has  occurred  and  is
continuing, and in such event this Lease shall terminate  on
the  then  current Expiration Date. If and  each  time  this
Lease  is  so extended, the word "Term" shall be  deemed  to
include  the five (5) year extension period with respect  to
which the option has been exercised and the term "Expiration
Date"  shall  mean  the  last day  of  such  five  (5)  year
extension period.

     2.4.PREMISES  LEASED " AS-IS". LANDLORD  HEREBY  LEASES
AND  WILL  LEASE AND TENANT TAKES AND WILL TAKE THE PREMISES
"AS  IS"  AND  TENANT  ACKNOWLEDGES THAT  LANDLORD  (WHETHER
ACTING  AS LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY)  HAS
NOT MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED  TO
HAVE  MADE,  ANY  WARRANTY  OR  REPRESENTATION,  EXPRESS  OR
IMPLIED,  WITH  RESPECT  TO ANY OF THE  PREMISES,  INCLUDING
WITHOUT LIMITATION ANY WARRANTY OR REPRESENTATION AS TO  ITS
FITNESS  FOR  USE,  PURPOSE, DESIGN  OR  CONDITION  FOR  ANY
PARTICULAR USE OR PURPOSE, AS TO THE QUALITY OF THE MATERIAL
OR  WORKMANSHIP THEREIN, LATENT OR PATENT, OR AS  TO  VALUE,
COMPLIANCE  WITH  SPECIFICATIONS, LOCATION, USE,  CONDITION,
MERCHANTABILITY,   QUALITY,   DESCRIPTION,   DURABILITY   OR
OPERATION,  IT BEING AGREED THAT ALL RISKS INCIDENT  THERETO
ARE  TO  BE  BORNE BY TENANT. TENANT ACKNOWLEDGES  THAT  THE
PREMISES ARE OF ITS SELECTION AND TO ITS SPECIFICATIONS, AND
THAT  THE  PREMISES HAVE BEEN INSPECTED BY  TENANT  AND  ARE
SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR DEFICIENCY
IN  ANY  OF  THE PREMISES OF ANY NATURE, WHETHER  PATENT  OR
LATENT,  LANDLORD  SHALL  NOT  HAVE  ANY  RESPONSIBILITY  OR
LIABILITY  WITH  RESPECT THERETO OR FOR  ANY  INCIDENTAL  OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, STRICT
LIABILITY IN TORT). THE PROVISIONS OF THIS SECTION 2.4  HAYE
BEEN  NEGOTIATED, AND THE FOREGOING PROVISIONS ARE  INTENDED
TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY
LANDLORD,  EXPRESS OR IMPLIED, WITH RESPECT TO  ANY  OF  THE
PREMISES,  ARISING  PURSUANT TO STATUTE, JUDICIAL  DECISION,
THE   UNIFORM  COMMERCIAL  CODE  OR  ANY  OTHER  LAW,  RULE,
REGULATION  OR  ORDER NOW OR HEREAFTER  IN EFFECT  OR  OTHER
WISE.

     Tenant acknowledges and agrees that Tenant has examined
the  title  to  the  Premises prior  to  the  execution  and
delivery  of  this  Lease and has found  such  title  to  be
satisfactory for the purposes contemplated by this Lease.

     2.5.  TRUE LEASE. Landlord and Tenant intend  for  this
Lease  to  be a true lease and not a transaction creating  a
financing  arrangement. Each party shall take all reasonable
steps  to reflect the transaction represented hereby in  all
applicable  books,  records and reports (including,  without
limitation, income tax filings) in a manner consistent  with
"true lease" treatment rather than "financing" treatment.

     2.6.  NON-  TERMINABLE. Except as  and  to  the  extent
expressly  set  forth in Section 2.3 (with respect  to  non-
renewal of this Lease) and in Article 11 of this Lease,  and
Article  22  of  this  Lease (provided that  Tenant  (or  an
affiliate  of Tenant) shall enter into a new Lease  for  the
Exchange  Property), Tenant shall have no right to terminate
this  Lease. Tenant shall remain obligated under this  Lease
in  accordance with its terms and shall not take any  action
to  terminate,  rescind or avoid this Lease, notwithstanding
any  bankruptcy,  insolvency,  reorganization,  liquidation,
dissolution  or other proceeding affecting Landlord  or  any
action with respect to this Lease which may be taken by  any
trustee, receiver or liquidator or by any court.

                           3. RENT

     3.1.  BASE RENT. Tenant shall pay to Landlord as annual
base  rent ("Base Rent") the amount set forth in column  (b)
below  for the corresponding Lease Years set forth in column
(a) below:

(a)  Lease  Year      (b)  Annual Base Rent    (c)  Monthly Base Rent
        1-5                  $240,086.00               $20,007.17
        6-10                  258,092.40                21,507.70
        11-15                 277,449.36                23,120.78
        16-20                 298,258.08                24,854.84
        21-25*                320,627.40                26,718.95
        26-30**               344,674.44                28,722.87
        31-35***              370,525.08                30,877.09
        36-40****             398,314.44                33,192.87

[an  asterisk (*) indicates an extension period; the  number
of   asterisks  corresponds  to  the  respective   extension
period.]

     Base  Rent  shall  be  paid  to.  Landlord  in  monthly
installments ("Monthly Base Rent") in the respective amounts
set forth in column (c) above in advance on the first day of
each  month for which the same is due during the Term.  Rent
for any partial month shall be prorated on a per diem basis.

     3.2.  PAYMENT. All charges and costs payable by  Tenant
to  Landlord or any other third party pursuant to this Lease
in  addition  to  Base Rent shall be considered  "Additional
Rent".  Base Rent and Additional Rent are sometimes referred
to  collectively as "Rent." Except as otherwise specifically
provided in this Lease, all Rent shall be paid by Tenant  to
Landlord   without   notice,  demand,   offset,   abatement,
reduction or deduction by check payable to Landlord and sent
to  Landlord at the address indicated in Section 1.2  or  to
such other person, entity or place as Landlord may from time
to  time  designate  by  notice to Tenant.  If  required  by
Landlord, Tenant shall make payments of Monthly Base Rent to
Landlord  by wire transfer in immediately available  federal
funds to such account in such bank as Landlord may designate
from  time  to  time  upon not less than thirty  (30)  days'
notice to Tenant, which account shall be the same account to
which  Tenant  and/or Tenant's affiliates  who  lease  other
properties  from  Landlord named herein (or its  affiliates)
wire  transfer payments of Monthly Base Rent  for  at  least
nine  (9) other properties. Monthly Base Rent for the period
from  and  including  the  Commencement  Date  through   and
including the last day of the first full calendar  month  of
the Term shall be paid in advance on the Commencement Date.

     3.3.  LATE  PAYMENTS.  If Tenant  shall  fail  to  make
payment  of  any installment of Base Rent or any  Additional
Rent  payable  to Landlord (rather than to  a  third  party)
within  ten (10) days after the date when each such  payment
is  due,  Tenant shall pay to Landlord interest  at  a  rate
equal  to the Default Rate (ashereii1after defined)  on  the
amount  unpaid computed from the date such payment  of  Base
Rent or Additional Rent was due to and including the date of
payment  thereof  (but only with respect to amounts  payable
directly to Landlord or that are not otherwise subject to an
interest  or  similar charge that. will be treated  as  Base
Rent   or  Additional  Rent  hereunder).  Further,  if   any
installment of Monthly Base Rent is not paid within  fifteen
(15)  days after the date the same is due, Tenant shall  pay
to  Landlord, on demand, as Additional Rent. a  late  charge
(the  "Late  Charge")  equal to four percent  (4%)  of  such
overdue installment of Monthly Base Rent.

     3.4.  NET  LEASE. This is a net lease  and  Base  Rent,
Additional Rent and, except as otherwise expressly set forth
herein, all other sums payable hereunder by Tenant shall  be
paid  without defense (other than defense of prior payment),
notice, demand, setoff, counterclaim, recoupment, abatement,
suspension,  deferment, diminution, deduction or  reduction.
During the Term of this Lease, Tenant shall be obligated  to
pay   and  shall  be  liable  for  all  costs  and  expenses
associated   with  or  arising  from  the  use,   operation,
maintenance,   repair  or  improvements  of   the   Premises
(regardless  of whether such costs and expenses are  charged
or imposed against Landlord or Tenant).

                          4. TAXES

     4.1.  As used in this Lease, the term "Premises  Taxes"
shall  mean  all real estate, personal property, ad  valorem
and  other  taxes and assessments, general and special,  and
all  other governmental charges levied, assessed or  imposed
on  or with respect to the Premises or which arise from  the
ownership, leasing, use, occupancy or possession of  all  or
any  portion  of  the Premises. Without  limitation  of  the
foregoing,  it is hereby specifically agreed that  "Premises
Taxes"  include  all  taxes and other  governmental  charges
assessed  or levied (i) on or with respect to any Base  Rent
or  Additional  Rent  payable under this  Lease,  (ii)  with
respect to any period prior to or during the Term, and (iii)
any interest, penalties, fines and other amounts charged for
late   payment   or  non-payment  of  any  Premises   Taxes.
Notwithstanding  the  foregoing, Premises  Taxes  shall  not
include  (A)  any taxes or assessments imposed  on  or  with
respect  to  Tenant's Property (as defined in Section  9.1),
(B)  any  income,  franchise  or  other  taxes  measured  by
Landlord's  income  or profit from the  Premises  on  a  net
basis,  other than any sales, use, rent occupancy or similar
taxes on or with respect to Base Rent or Additional Rent, or
(C)  any  gifts  estate or other transfer taxes  imposed  on
Landlord.

     4.2. PAYMENT.

          (a)   Tenant  shall  pay  Premises  Taxes  to  the
     appropriate  governmental authority before  delinquency
     and  before  any interest, penalties or  fines  may  be
     charged with respect thereto and shall deliver  a  copy
     of  all  paid  tax  bills  to  Landlord  promptly  upon
     request.

          (b)  If  any  Premises Taxes relate  to  a  fiscal
     period which is partly within and partly outside of the
     period  for  which  Tenant is responsible,  the  amount
     thereof  shall  b~  prorated so  that  Tenant  will  be
     responsible  for  that  portion which  relates  to  the
     period  prior  to and after the Commencement  Date  and
     through  the  Expiration  Date  and  Landlord  will  be
     responsible for the portion after the Expiration Date.

          (c)  Any  refunds (including any accrued interest)
     of Premises Taxes applicable to the period prior to and
     during-the Term shall be the property of Tenant and  to
     the  extent received by Landlord shall be paid over  to
     Tenant  promptly after receipt thereof. Any  refund  of
     Premises   Taxes  shall  be  deemed  a   reduction   of
     Additional Rent hereunder.

     4.3. CONTEST. Subject to the provisions hereof, Tenant,
at its own expense, may contest Premises Taxes in any manner
permitted by law, in Tenant's name, and, whenever necessary,
in  Landlord's name and Landlord will cooperate at  Tenant's
sole  cost and expense with Tenant and execute any documents
reasonably required for such purpose. Any such contest shall
be  conducted by Tenant in good faith and at its  sole  cost
and  expense, by appropriate proceedings which shall operate
during  the  pendency thereof to prevent (i) the  collection
of,  or  other  realization  upon,  the  Premises  Taxes  so
contested,  (ii)  the  sale,  forfeiture  or  loss  of   the
Premises,  any Base Rent or any Additional Rent  to  satisfy
the  same,  (iii) any interference with the use or occupancy
of  any of the Premises, and (iv) any interference with  the
payment  of  any Base Rent or the portion of any  Additional
Rent  that  does  riot  represent the Premises  Taxes  being
contested under this Section 4.3.  In no event shall  Tenant
pursue any contest with respect to any Premises Taxes in any
manner  that  exposes  Landlord to (i)  criminal  liability,
penalty  or  sanction, (ii) any civil liability, penalty  or
sanction for which Tenant has not made provisions reasonably
acceptable to Landlord, or (iii) defeasance of its  interest
the Premises. Tenant agrees that each such contest shall  be
diligently  prosecuted to a final conclusion.  Tenant  shall
pay  and save Landlord harmless from and against any and all
losses,  judgments,  decrees and costs  (including.  without
limitation, attorneys' fees and expenses) in connection with
any  such  contest  and  shall,  promptly  after  the  final
determination  of such contest, fully pay and discharge  the
amounts  which shall be levied, assessed, charged or imposed
or  be  determined  to be payable therein or  in  connection
therewith,  together  with all penalties,  fines,  interest,
costs and expenses thereof or in connection therewith.

                  5. ENVIRONMENTAL MATTERS

     5.1.  DEFINITIONS.  For  purposes  of  this  Lease  the
following terms shall have the following meanings:

          (a)  "ENVIRONMENTAL LAWS" -all present and  future
     laws,  statutes, rules, regulations, orders  and  other
     requirements  of  any federal, state,  local  or  other
     governmental  authority relating  to  the  environment,
     environmental  protection or regulation, the  emission,
     disposal  or  discharge  or the  actual  or  threatened
     release   into   the  environment  of   pollutants   or
     contaminants  or  to  any  Hazardous  Substance  or  HS
     Activity.   Without   limitation  of   the   foregoing,
     Environmental  Laws include each of the  following,  as
     enacted  as of the date hereof or as hereafter amended:
     the  Comprehensive Environmental Response, Compensation
     and  Liability Act of 1980, 42 U.S.C. 9601 et seq;  the
     Resource  Conversation and Recovery  Act  of  1976,  42
     U.S.C. 6901 et seq. the Toxic Substance Control Act, 15
     U.S.C.  2601  et seq, the Water Pollution  Control  Act
     (also knows as the Clean Water Act), 33 U.S.C.  1251 et
     seq.;  the  Clean Air Act, 42 U.S.C. 7401 et seq.;  and
     the  Hazardous Materials Transportation Act, 49  U.S.C.
     5l01 et seq. and any similar state laws.

          (b)  "HAZARDOUS SUBSTANCE" -any substance  defined
     or  classified in any Environmental Laws as a toxic  or
     hazardous chemical, waste, material or substance. or as
     a   pollutant   or   contaminant  (including,   without
     limitation,  petroleum or any by-product  or  fractions
     thereof,   lead,   asbestos  and  asbestos   containing
     materials, polychlorinated byphenyls and radioactive or
     explosive  materials);  and  any  substance  which   if
     present requires investigation or remediation under any
     Environmental  Law  or results in liability  thereunder
     for exposure thereto or discharge thereof.

          (c)  "HS  ACTIVITY" -the generation,  manufacture,
     handling,  transportation, usage,  treatment,  release,
     discharge,   removal,  storage  or  disposal   of   any
     Hazardous Substance.

     5.2. TENANT OBLIGATIONS.

     (a) On or after the Commencement Date, Tenant (i) shall
not  conduct or knowingly permit any HS Activity in,  on  or
from   the   Premises  or  knowingly  allow  any   Hazardous
Substances  on the Premises, in each case, in  violation  of
any  Environmental  Laws, and (ii)  shall  comply  or  cause
compliance   with  all  Environmental  Laws  applicable   to
Tenant's  use or occupancy of the Premises, and shall  cause
the  Premises to comply with all Environmental Laws; in each
case,  except to the extent such violation results from,  or
compliance  is required as a result of, any act of  Landlord
or any act or omission of any other person other than Tenant
and  its members, managers, affiliates, officers, directors,
employees,  contractors, representatives, agents,  assignees
or subtenants (collectively, "Tenant's Parties"), or relates
to  any  condition  existing on the Commencement  Date  (the
obligations  of Tenant under the preceding clauses  (i)  and
(ii)  are  called "Tenant's Compliance Obligation").  Tenant
shall  promptly  give notice to Landlord if  Tenant  becomes
aware of any action, claim, suit or proceeding relating to a
violation  or  alleged violation of any  Environmental  Laws
with  respect  to Tenant's use or occupancy of the  Premises
filed  or threatened against Tenant or the Premises. If,  at
any  time during the Term, Hazardous Substances shall  exist
in   or   on  the  Premises  to  which  Tenant's  Compliance
Obligation  applies,  then  Tenant  shall,  or  shall  cause
responsible   third  parties  to,  promptly   commence   and
diligently  implement  all investigation,  site  monitoring,
containment, cleanup, removal, restoration or other remedial
work  of any kind or nature (collectively, "Remedial  Work")
to  the  extent  required  by  Environmental  Laws,  and  in
compliance with all Environmental Laws, all at Tenant's sole
cost and expense.

     (b)   Tenant  agrees  to  indemnify,  defend  and  hold
harmless  Landlord, any Landlord Lender and their respective
managers,    partners,    members,   officers,    directors,
shareholders,  employees and agents ("Landlord Indemnitees")
from  and  against  any  and all claims,  demands,  actions,
liabilities, damages, assessments, losses, fines, penalties,
costs  and  expenses,  including remediation,  clean-up  and
detoxification costs and reasonable attorneys' fees, arising
from or related to any breach or violation by Tenant of  its
obligations set forth in Section 5.2(a).  The provisions  of
Section  5.2 shall survive the expiration or termination  of
this Lease.

     (c)  Upon  Landlord's request, at any  time  after  the
occurrence and during the continuance of an Event of Default
or  at such other time as Landlord has reasonable grounds to
believe  that Tenant is in violation of Tenant's  Compliance
Obligation, Tenant shall cause an inspection or audit of the
Premises  by  an environmental engineer or other appropriate
consultant reasonably approved by Landlord to determine  the
presence or absence of Hazardous Substances on the Premises.
If  Tenant  fails  to  effectuate the commencement  of  such
inspection  or  audit  within thirty (30)  days  after  such
request  or  fails  to  deliver a  written  report  of  such
inspection or audit to Landlord within sixty (60) days after
such request, Landlord may order the same, and Tenant hereby
grants to Landlord and its respective employees, contractors
and  agents  access  to the Premises upon  prior  reasonable
notice to undertake such inspection or audit, provided  that
such inspection or audit does not interfere with the conduct
of  Tenant's  business  on the Premises,  Landlord  provides
Tenant  certificates  of  insurance  naming  Tenant  as   an
additional  insured and containing such types  of  insurance
and  limits as Tenant reasonably requires, Landlord promptly
repairs  any damage caused by such testing and restores  the
Premises  to  the condition in which it existed  immediately
prior  to  such damage at Landlord's sole cost and  expense,
and  Landlord  shall indemnify Tenant if and to  the  extent
required  under  Section 14.2 hereof  for  all  loss,  cost,
damage,  liens, claims, liabilities or expenses  (including,
but  not limited to, reasonable attorneys' fees, court costs
and  disbursements) incurred by Tenant arising  from  or  by
reason  of  such  inspection or  audit.  The  cost  of  such
inspection  or  audit shall be paid (i) by  Tenant  if  such
inspection  or audit shall confirm a violation  of  Tenant's
Compliance Obligation or (ii) by Landlord if such inspection
or audit does not confirm a violation of Tenant's Compliance
Obligation.

     (d)   Landlord   and  Tenant  expressly   agree   that,
notwithstanding anything to the contrary set forth  in  this
Lease  (including,  but not limited to,  the  provisions  of
Section  l4.l  hereof),  except  in  the  case  of  Tenant's
obligations  expressly set forth under Sections 5.2(a),  (b)
and  (c) hereof, Tenant shall have no obligation under  this
Lease (i) to defend, indemnify or hold harmless Landlord  or
Landlord   Indemnitees  with  respect  to   any.   Hazardous
Substance, Environmental Laws or HS Activity, (ii) to engage
any  environmental engineer or appropriate  consultant  with
respect to any Hazardous Substance, Environmental Laws or HS
Activity,  (iii) to conduct any audit or inspection  of  the
Premises   with   respect   to  any   Hazardous   Substance,
Environmental Laws or HS Activity, (iv) to comply  or  cause
compliance with any Environmental Laws, or (v) to perform or
cause  performance of any Remedial Work with respect to  any
Hazardous Substance, Environmental Laws or HS Activity.

     5.3. LANDLORD OBLIGATIONS.

     On  or after the Commencement Date, Landlord shall  not
conduct  any  HS  Activity on, about or from  the  Premises.
Landlord  shall promptly give notice to Tenant  if  Landlord
becomes  aware  of  any action, claim,  suit  or  proceeding
relating  to  a  violation  or  alleged  violation  of   any
Envirorn11ental Laws filed or threatened against Landlord or
the  Premises  or  if Landlord has received  notice  or  has
actual  knowledge of any HS Activity on the Premises  caused
by a person other than Tenant or any Tenant Party.

               6. COMPLIANCE WITH REOUIREMENTS

     6.1. COMPLIANCE WITH LAW

     During  the Term, Tenant shall comply, and shall  cause
the  Premises to comply, in all material respects  with  and
shall   correct   any  violation  of  any  laws,   statutes,
ordinances  and  other  legal  and  insurance  requirements,
whether  now  or  hereafter  in  force,  applicable  to  the
Premises  or  Tenant's  use or occupancy  of  the  Premises,
including  without limitation, the Occupational  Safety  and
Health  Act,  as  amended  ("OSHA  "),  the  Americans  with
Disabilities Act of 1990, as amended (" ADA"), and,  subject
to   Section  5.2,  all  Environmental  Laws.  Tenant  shall
procure,  maintain and comply, and shall cause the  Premises
to comply, with any and all permits, approvals, licenses and
other  governmental authorizations required for  the  lawful
use,   operation,   maintenance  and   any   "   Alteration"
(hereinafter defined) of the Premises.

     6.2. COMPLIANCE WITH PERMITTED ENCUMBRANCES

     Tenant  agrees  that  with respect  to  all  easements,
conditions,   covenants,   restrictions,   encumbrances   or
agreements now affecting the Premises or which are hereafter
created  by  or  consented to by Tenant  (collectively,  the
"Permitted Encumbrances"), Tenant shall observe, perform and
comply  with,  and  cause the Premises to comply  with,  and
carry  out and perform all of the obligations therein  which
are  to  be  observed  and performed by  the  owner  or  any
occupant  of  the  Premises thereunder, and  shall  pay  all
assessments, fees, costs and expenses required to be paid by
the owner or any occupant of the Premises thereunder .

                  7. COVENANT AGAINST LIENS

     7.1.  LIENS. Tenant shall not cause, suffer  or  permit
any   mechanic's,  materialmen's  judgment  or  other   lien
("Lien")  to be filed against the Premises (other  than  any
Lien  arising due to any act or omission of Landlord or  its
agents);  provided that nothing herein shall  be  deemed  to
limit the rights of Tenant Lender under Section 20.2 hereof.
If any Lien shall be filed against all or any portion of the
Premises  (other than any Lien arising due  to  any  act  or
omission  of Landlord or its agents), (i) Tenant shall  give
notice  thereof  to Landlord within ten (10)  business  days
after  the date on which Tenant first becomes aware  of  the
filing  of  any  such Lien, and (ii) within forty-five  (45)
days after first becoming aware of such filing, (but in  any
event  before any enforcement action to foreclose  is  taken
with  respect  to such Lien), Tenant, at its sole  cost  and
expense, shall cause the Lien to be discharged of record  or
bonded over by any statutory bonding procedure sufficient to
prevent  foreclosure or other enforcement of such Lien,  and
shall  deliver  notice  thereof to Landlord,  failing  which
Landlord  shall have the right, but shall not be  obligated,
to  discharge the Lien without investigating the validity or
amount  thereof. Tenant shall reimburse Landlord  on  demand
for  any reasonable amounts so paid or incurred by Landlord,
including  reasonable expenses and attorneys' fees  incurred
in connection therewith.

     Notice  is  hereby  given that Landlord  shall  not  be
liable for any labor, services or materials furnished or  to
be  furnished  to Tenant, or to anyone holding  any  of  the
Premises  through or under Tenant, and that  no  mechanic's.
materialman's or other Liens for any such labor. services or
materials shall attach to or affect the interest of Landlord
in and to any of the Premises.

                    8. USE AND ENJOYMENT

     8.1. Use.

          (a)  Unless  otherwise  approved  in  writing   by
     Landlord,  during the Term the Premises shall  be  used
     only for the operation of an Applebee's Restaurant, or.
     If  a  change  in  use is requested by Franchisor,  any
     other  restaurant  which  may  be  affiliated  with  or
     franchised  by  Franchisor.  The  Premises   shall   be
     attractive  in appearance and Tenant shall conduct  its
     business in a lawful and reputable manner. Tenant shall
     not  commit waste on the Premises and shall not  occupy
     or  use  the Premises or permit the same to be used  or
     occupied for any purpose or in any manner that violates
     any applicable legal or governmental requirement.

     (b)   Tenant  shall  continuously  operate  a  business
pursuant to Section 8.1(a) from the Premises during the Term
of  this Lease; provided, however, that if Tenant has  given
Landlord  notice  of  Tenant's  intent  to  substitute   the
Premises pursuant to Section 22 hereof, Tenant may close its
business  at the Premises for a continuous period of  up  to
two  (2)  years  while Tenant is arranging for  an  Exchange
Property.  In  addition, Tenant may  temporarily  cease  its
operations  at the Premises for (i) restoration,  alteration
and   repair  obligations  pursuant  to  the  terms  of  its
Franchise  Agreement;  (ii) the performance  of  Alterations
permitted  under  this Lease; or (iii) as a  result  of  any
emergency, casualty or event of force majeure.

     (c)   All  garbage, trash and refuse generated from the
operation of the business conducted on the Premises shall be
placed  in appropriate garbage receptacles and, at  Tenant's
sole  cost  and  expense,  removed from  the  Premises  with
sufficient frequency so as to avoid any accumulation thereof
outside of such receptacles.

     8.2.  EXTERIOR SIGNS, AWNINGS AND CANOPIES. Tenant,  at
its sole cost and expense, may at any time and from time  to
time during the Term install, alter, and/or replace any  and
all  exterior signs, awnings and/or canopies as  Tenant  may
determine,  so  long  as  they are in  compliance  with  all
applicable  laws and all Permitted Encumbrances. Tenant,  at
its  sole  cost  and  expense, shall  obtain  all  necessary
permits  for all signs, awnings and canopies on the Premises
and shall maintain the same in good condition and repair.

     8.3.  UTILITIES. Tenant shall arrange and contract,  in
its  name, for and pay when due all charges for water,  gas,
electricity,  cable TV, telephone, trash removal,  scavenger
service and other utility services used or consumed  on  the
Premises  by  Tenant or its agents during the Term,  all  of
which shall be separately metered and billed to Tenant.

     8.4.  QUIET  ENJOYMENT. Landlord covenants with  Tenant
that  Tenant,  upon paying Rent to Landlord  and  performing
Tenant's  other  covenants  in this  Lease,  shall  and  may
peaceably and quietly have, hold, occupy, possess and  enjoy
the  Premises during the Term without any interference  from
Landlord or anyone claiming by, through or under Landlord.

     8.5.   SIGNAGE   RIGHTS,  PARKING,   ACCESS.   Landlord
covenants with Tenant that Landlord shall not engage in  any
action,  or  grant any rights which affect  parking  at  the
Premises access to the Premises, means of ingress and egress
to  and  from  the  Premises,  visibility  to  or  from  the
Premises, Tenant's signage at the Premises or rights to  the
roof  of  the Premises, any telecommunications equipment  or
utilities  which service the Premises, Tenant's  air  rights
and  any  other  rights  to which  Tenant  may  be  entitled
pursuant  to  any easement agreements or similar  agreements
affecting  the  Premises  without  Tenant's  prior   written
consent,  which may be granted or withheld in Tenant's  sole
discretion  but shall not be unreasonably withheld  if  such
action  will not materially adversely affect the conduct  of
Tenant's  business  at  the  Premises.  Landlord  agrees  to
deliver  to  Tenant copies of any notices Landlord  receives
with  respect to the aforementioned rights. Landlord  agrees
that so long as no Event of Default shall have occurred  and
be  continuing, upon request by Tenant (and only  after  all
documentation reasonably required to consummate the relevant
transaction shall have been provided to Landlord),  Landlord
shall  (i)  enter into or modify such easements,  covenants,
waivers, approvals or restrictions for utilities, parking or
other matters as Tenant may desire for the operation of  the
Premises  (collectively, "Easements"), or (ii)  dedicate  or
transfer,  minor  non-essential unimproved portions  of  the
Premises for road, highway or other public purposes  to  the
extent  such  dedications or transfers are  consistent  with
commercially  reasonable development  or  operation  of  the
Premises (the ..Dedications"); provided, that Landlord shall
be  obligated  to  take such action only  if  (A)  any  such
Easements  or Dedications do not adversely affect the  value
of  the Premises (other than to a de minimis extent), do not
unreasonably  render the use of the Premises dependent  upon
any  other property or unreasonably condition the use of the
Premises  upon  the use of any other property,  and  do  not
adversely  affect  (other than to a de minimis  extent)  the
use,  or  visibility  of, or access to,  the  Premises,  (B)
Tenant  advises Landlord of the amount of the consideration,
if  any,  being  paid for such Easements or Dedications  and
that Tenant considers such consideration, if any, to be fair
under the circumstance and that such consideration, if  any,
shall  be  paid  to  Landlord, (C)  Tenant  acknowledges  in
writing that for so long as this Lease is in effect,  Tenant
will perform all obligations, if any, of Landlord under  the
applicable instrument and Tenant will remain obligated under
this  Lease  and  AAG (if the Guaranty is  then  in  effect)
acknowledges in writing that AAG will remain obligated under
the   Guaranty,  in  each  case  in  accordance  with  their
respective  terms,  and  (D) Tenant pays  all  out-of-pocket
costs  and expenses incurred by Landlord in connection  with
said  Easements or Dedications including, without limitation
reasonable attorneys' fees. Subject to the foregoing clauses
(A)  through  (D),  Landlord shall cooperate  with  Tenant's
efforts to enter into any Dedications or Easements.

     8.6.  WARRANTIES, GUARANTIES AND INDEMNITIES.  Landlord
assigns  to Tenant, without recourse or warranty whatsoever,
all  warranties,  guaranties  and  indemnities,  express  or
implied, and similar rights which Landlord may have  against
any  manufacturer, seller (other than the Seller  under  the
Purchase and Sale Agreement from whom Landlord acquired  the
Premises),  engineer, contractor or builder with respect  to
the  Premises, including, but not limited to, any rights and
remedies existing under contract or pursuant to the  Uniform
Commercial  Code  (collectively,  the  "guaranties").   Such
assignment shall remain in effect during the Term.  Landlord
hereby  agrees  to  execute and deliver at Tenant's  expense
such  further documents, including powers of attorney (which
shall  contain indemnity agreements from Tenant to  Landlord
which shall be in form reasonably satisfactory to Landlord),
as  Tenant  may reasonably request in order that Tenant  may
have  the  full  benefit  of  the assignment  of  guaranties
effected  or  intended to be effected by this  Section  8.6.
Upon  the  occurrence of a termination  of  this  Lease  the
guaranties shall automatically revert to Landlord.

              9. TENANT'S PROPERTY: LIEN WAIVER

     9.1.  TENANT'S PROPERTY. Landlord agrees that  all  (i)
furniture,  fixtures,  furnishings,  equipment  (other  than
floor  and wall coverings, fixtures and equipment which  are
"built-ins" or constitute an integral part of the  Building,
any  walk-in  cooler, heat, air conditioning and ventilation
systems, electrical, plumbing and mechanical systems, all of
which  are  owned  by  and  are the property  of  Landlord),
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  of  Tenant (including, without  limitation,  trade
fixtures  in,  on, around or affixed to the Premises),  (ii)
furniture,   fixtures,  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  the
Premises)  which  display the name, trade  name,  trademark,
service  mark, logo, insignia, slogan, emblem or  symbol  of
Applebee's International Inc.'s ("Franchisor") or of  Tenant
("Distinctive  Property"), and (iii) all licenses,  permits,
approvals and authorizations. if any, which are required  in
connection   with   the  operation  of  Tenant's   business,
including, without limitation, all liquor licenses,  at  any
time   located  on  the  Premises  (collectively,  "Tenant's
Property"), shall be and at all times remain the property of
Tenant regardless of whether the same (x) is affixed to  the
Improvements on the Land or the manner in which the same  is
affixed  (unless  permanently affixed) or  (y)  may  now  or
hereafter  be  regarded  as  a fixture  or  as  property  of
Landlord  by operation of law or otherwise, unless, however,
such  fixtures  and  equipment  cannot  be  removed  without
substantial  damage  to  any Improvements  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). Tenant shall  have
the  right at any time and from time to time during the Term
and, subject to the provisions of Section 16.2 below, within
fifteen  (15) days after the end of the Term to  remove  any
Tenant's Property from the Premises.

     9.2.  WAIVER  OF  LANDLORD'S LIEN. Tenant  contemplates
financing from time to time some or all of Tenant's Property
with  a  lender or vendor ("TE Lender") who will  require  a
security  interest therein (those items of Tenant's Property
which  are subject to such security interest being  referred
to  collectively as "Financed Personality"). Landlord hereby
disclaims  and  waives  any and all  liens  or  right  which
Landlord  may  have  to  claim a lien against  the  Tenant's
Property  for nonpayment 9f Rent or otherwise and agrees  to
execute  and  deliver promptly upon request  a  waiver  with
respect thereto.

          10. ALTERATIONS: MAINTENANCE AND REPAIR

     10.1. Alterations.

          (a)  ALTERATIONS. For purposes of this Lease,  any
physical  improvement addition, enhancement or  change  with
respect to all or any portion of the Premises is referred to
as  an  "Alteration." Tenant or Franchisor  shall  have  the
right  at any time and from time to time during the Term  to
make  or  cause  to  be made any Alteration  in  or  to  the
Premises  (i) without Landlord's consent, if such Alteration
is  performed  in  order  to comply  with  any  of  Tenant's
agreements  with  Franchisor and such  Alteration  does  not
adversely  affect any structural component of  the  Building
and  (ii)  in  the case of any Alteration other  than  those
permitted  under  clause (i) above,  with  Landlord's  prior
consent,  which  consent shall not be unreasonably  withheld
provided  that  such Alteration does not  (A)  diminish  the
value  of  the Premises (including, by way of example  only,
but  without limitation, by diminishing the utility  of  the
Improvements  for  use as a restaurant  or  diminishing  the
useful  life  of the Improvements), except to a  de  minimis
extent, or (B) adversely affect any structural component  of
the  Building. Every Alteration shall be made in  accordance
with  all  applicable  laws,  legal  requirements  and   the
Permitted Encumbrances. If Tenant shall submit a request  to
Landlord  for  Landlord's approval of  an  Alteration  which
requires  Landlord's approval, Landlord  shall  (x)  approve
such  Alteration  proposed by Tenant within twenty-one  (21)
days of receiving Tenant's proposal and request for approval
or  (y)  disapprove  Tenant's proposal  in  writing  with  a
detailed  explanation  of its objections  within  twenty-one
(21)  days  of receiving Tenant's proposal and  request  for
approval.  If  Tenant  submits a proposal  to  Landlord  and
Landlord  disapproves  such proposal within  the  twenty-one
(21)  day  time  period, Tenant may submit another  proposal
with  modifications thereto made in response  to  Landlord's
objections and Landlord shall so approve or disapprove  same
within  seven  (7)  days after submission of  such  modified
proposal.  If  Landlord does not approve or  disapprove  any
proposal  or  modified proposal in writing with  a  detailed
explanation  of  its objections within the applicable  seven
(1)  or  twenty-one (21) day period, Tenant  may  submit  to
Landlord   a   reminder  notice,  which  shall  state   that
Landlord's  failure  to disapprove the  applicable  proposal
within  seven (7) days after receipt of such reminder notice
shall  be  deemed to constitute Landlord's approval thereof.
If  Landlord  does not disapprove such proposal or  modified
proposal   in   writing  with  a  detailed  explanation   of
Landlord's objections to Tenant's modifications within seven
(7) days after receipt of Tenant's reminder notice, Landlord
shall be deemed to have approved the Alterations proposed by
Tenant.

     (b)   In  connection  with  any  Alteration:  (i)   the
Alterations  to be made will be constructed using  materials
of  a  quality  and  workmanship at least  as  good  as  the
original  work; (ii) all such Alterations shall be performed
in  a  good  and workmanlike manner, and shall be  performed
diligently in a commercially reasonable time period  subject
to   force  majeure  in  compliance  with  all  laws,  legal
requirements  and  the terms of all Permitted  Encumbrances;
(iii)  all  work done in connection with any such Alteration
shall  comply in all material respects with all requirements
of  any  insurance policies in effect with  respect  to  the
Premises  (the "Insurance Requirements"); (iv) Tenant  shall
pay  when due all costs and expenses of any such Alteration,
and  shall  discharge all liens filed  against  any  of  the
Premises  arising out of the same; (v) Tenant shall  procure
and  pay for all permits and licenses required in connection
with any such Alteration; (vi) all such Alterations shall be
the  property of Landlord and shall be subject to this Lease
(except   for  any  Alteration  which  constitutes  Tenant's
Property); and (vii) all Alterations shall be made under the
supervision of an architect or engineer selected  by  Tenant
and  in accordance with plans and specifications which shall
be  submitted to Landlord prior .to the commencement of  the
Alterations, provided, however, Landlord shall have no right
to    approve   such   architect,   engineer,    plans    or
specifications,  except as expressly set  forth  in  Section
IO.I(a).

     10.2.  MAINTENANCE AND REPAIR. During the Term,  Tenant
at  its  sole cost and expense, agrees to make all necessary
repairs  and  replacements to the Improvements as  often  as
required to keep and maintain the Premises in good and  safe
condition and repair. Notwithstanding any provision  to  the
contrary, Tenant's obligations under this section shall  not
include making any repair or improvement necessitated by the
act  of  Landlord,  its agents, employees  or  servants.  If
Tenant  shall default in its obligations under this  Section
10.2, Landlord may, after thirty (30) days written notice to
Tenant  and  failure  by  Tenant to  perform  any  necessary
repairs  and  replacements to the Improvements  within  such
thirty (30) day period, enter the Premises to commence  such
repairs  or  replacement. All reasonable  sums  incurred  by
Landlord  in  connection with any such repair or replacement
shall  constitute Additional Rent payable  by  Tenant  under
this  Lease  and shall be paid by Tenant to Landlord  within
ten  (10) days of Tenant's receipt of a detailed invoice for
such charges.

            11. CONDEMNATION AND CASUALTY DAMAGE

     11.1.  SUBSTANTIAL TAKING. If all or substantially  all
of  the Premises is taken or appropriated for any public  or
quasi-public use or purpose by any lawful power or authority
by  the exercise of the right of eminent domain or by virtue
of  condemnation or other similar proceedings,  including  a
deed  given  in  lieu  thereof  ("Taking"),  other  than   a
temporary Taking for a period of one (1) year or less,  this
Lease  shall terminate as of the date possession is required
by  the  condemning authority and Rent and all other charges
and  costs payable hereunder shall be adjusted and  paid  to
the effective date of termination.

     11.2.  OTHER  TAKING. (a) If there shall be  a  Taking,
other  than a temporary Taking for a period of one (1)  year
or  less,  of  (i)  a portion of the Building,  (ii)  twenty
percent  (20%) or more of the parking area of the  Premises,
or  (iii)  any  material  part  of  a  driveway  or  roadway
necessary  for  access  to  the Premises,  and  in  Tenant's
reasonable  judgment such Taking under clauses  (i),(ii)  or
(iii),  would render the Premises (or the remainder thereof)
unsuitable  for  the  conduct of Tenant's  business,  Tenant
shall have the right to terminate this Lease as of the  date
possession is required by the condemning authority by giving
notice  to  that effect to Landlord within sixty  (60)  days
after  notice  to  Tenant  of the date  such  possession  is
required.  In  such  event, Rent and all other  charges  and
costs  payable hereunder shall be adjusted and paid  to  the
effective date of termination.

     (b)  If only a portion of the Premises is subject to  a
Taking  and Tenant is not entitled to or shall not  exercise
its  right  to  terminate  this Lease  pursuant  to  Section
11.2(a)  this Lease shall continue in full force and effect,
and there shall be no abatement or reduction of Rent payable
hereunder.  Tenant  shall  make  any  and  all  repairs  and
restorations to the remainder of the Premises to the  extent
necessary  to render the same a complete architectural  unit
suitable for Tenant's use.

     11.3.  COMPENSATION. (a) In the event that all  or  any
portion of the Premises is subject to a Taking, Landlord and
Tenant  shall  cooperate  to  maximize  the  amount  of  the
recovery from the condemning authority. If the recovery from
the  condemning authority is paid into a common fund or paid
only  to  Landlord,  such recovery  shall  be  allocated  as
follows  and in the following priority: (i) so  long  as  no
Event  of Default shall have occurred and be continuing,  to
Tenant  for  the  cost of any repairs required  pursuant  to
Section  11.2(b),  subject, however, to  the  provisions  of
Section  11.3(b)  hereof;  (ii) to  Landlord,  that  portion
allocable  to  Land which is taken; (iii) to Landlord,  that
portion  allocable to Improvements which are taken; (iv)  to
Tenant,  that  portion  allocable to  Tenant's  Property  or
Tenant's  relocation  and  moving  expenses;  and   (v)   to
Landlord,  the  balance. Notwithstanding the foregoing,  all
proceeds from a temporary Taking shall be (A) paid to Tenant
if  this Lease is not terminated and (B) equitably allocated
between Landlord and Tenant as of the date of termination if
this  Lease  is terminated. The provisions of  this  section
shall  survive  any  termination of this Lease  pursuant  to
Section 11.1 or 11.2(a).

     (b)  If  the proceeds from a Taking, and the  estimated
costs  of  repairs  to be performed by  Tenant  pursuant  to
Section  11.2(b),  exceeds $125,000.00, then  such  proceeds
shall be held by Landlord or Landlord's Lender, and Landlord
shall cause the proceeds to be paid out from time to time to
Tenant  as  the  work progresses, subject  to  each  of  the
following conditions:

          (i)  Each request for payment shall be made on not
     less  than  ten  (10) business days'  prior  notice  to
     Landlord,  and  shall be accompanied  by  an  officer's
     certificate stating (A) that no Event of Default exists
     under  this  Lease  and (B) that the sum  requested  is
     validly  required to reimburse Tenant for  payments  by
     Tenant  to complete the repair work, or is validly  due
     to   the   contractor,   subcontractors,   materialmen,
     laborers,   engineers,  architects  or  other   persons
     rendering services or materials for the work (giving  a
     brief  description of such services and materials).  At
     the  time  of  disbursement, no Event of Default  shall
     have occurred and be continuing.
          (ii) Each request for payment shall be accompanied
     by  waivers of lien reasonably satisfactory to Landlord
     covering  that  part of the work for which  payment  or
     reimbursement has been made as of the date shown on the
     current request.

          (iii)  Landlord shall release to Tenant the amount
     requested by Tenant, subject to the amount retained  by
     Landlord  in  accordance with  subsection  (iv)  below,
     within  ten (10) business days of Tenant's satisfaction
     of  the  items  set forth in subsection  (i)  and  (ii)
     above.  Disbursements shall be made not more frequently
     than once every thirty (30) days.

          (iv)  Except  and  to the extent  that  Tenant  is
     already  retaining a like amount from its  contractors,
     Landlord  (or Landlord Lender) may retain  10%  of  the
     proceeds as retainage until the repairs and restoration
     are substantially complete.

          (v)  Proceeds held by Landlord in accordance  with
     this  Section  shall  be held in  an  interest  bearing
     account and any interest earned on the proceed shall be
     a  part  of  the  proceeds, and shall be  disbursed  in
     accordance  with  this Lease Landlord  shall  take  any
     interest   earned   into  account   for   purposes   of
     determining its federal income tax liability,  if  any,
     and shall pay any income taxes thereon.

          11.4. CASUALTY DAMAGE.

     (a)  If  the  Improvements or any portion  thereof  are
damaged or destroyed by fire or other casualty ("Casualty"),
and  this  Lease  is not terminated pursuant  to  subsection
11.4(b) below, Tenant shall, promptly and diligently  repair
such  damage  and  restore  the Improvements  as  nearly  as
possible  to  the  condition  which  existed  prior  to  the
occurrence of such Casualty or to any comparable or improved
condition  consistent  with Tenant's or  Franchisor's  then-
current  store  design and this Lease shall remain  in  full
force  and  effect.  Tenant  promptly  shall  commence   and
diligently pursue to completion the repair, restoration  and
replacement  of  the damaged or destroyed Improvements,  due
allowance  being  made for time needed  to  obtain  permits,
adjust insurance and for delay on account of events of force
majeure.  Such repair, restoration and replacement shall  be
performed  in  accordance with all  applicable  laws,  legal
requirements  and Permitted Encumbrances.  Tenant  shall  be
responsible  for the repair or replacement of  any  Tenant's
Property damaged by such Casualty. As used in this Lease the
word  "destroyed" shall mean completely destroyed above  the
foundation,  or  so  substantially  damaged  as  to  require
demolition  to  the  foundation, or such other  severity  of
damage  as  may  be  established or  imposed  by  applicable
governmental  law  or ordinance which,  if  suffered,  would
constitute  total  destruction or require demolition  before
repair or reconstruction may commence.

     (b)  If  the  Improvements or any  portion  thereof  is
damaged or destroyed (i) during the last two (2) Lease Years
of  the Term (or the Term as then extended) to the extent of
twenty-five  percent (25%) or more of the replacement  value
thereof  (exclusive of the foundation) immediately prior  to
such  Casualty;  or (ii) by a cause or peril  which  is  not
covered  by  the property insurance required to  be  carried
pursuant  to Section 12.1 (b) (excluding any cause or  peril
arising  from  any  act of Tenant or  any  of  its  members,
managers,   officers,  directors,  employees,   contractors,
agents,  representatives, subtenants or assignees) or  other
insurance  which is then customarily being carried  by  a  .
commercially  reasonable  prudent  operator  of  a  facility
similar to the Premises; then Tenant shall have the right to
terminate  this  Lease  by  giving  notice  to  that  effect
("Termination Notice") to Landlord within one hundred twenty
(120)  days after the occurrence of the Casualty,  in  which
event  termination shall be effective as of the  date  of  .
such Casualty if the Building is destroyed and otherwise  as
of  the  date  Tenant  vacates the Premises  following  such
Casualty.

     (c)  If  this  Lease  is terminated  pursuant  to  this
Section  11.4, Rent and all other charges and costs  payable
hereunder  shall be adjusted and paid to the effective  date
of  termination,  and  all proceeds of  any  insurance  with
respect  to  the  Premises (exclusive of Tenant's  Property,
which shall be paid to Tenant) shall be paid to Landlord.

                        12. INSURANCE

     12.1.  BY TENANT. Tenant, at its sole cost and expense,
shall  obtain  and  maintain (or cause to  be  obtained  and
maintained,  as  the  case may be) the  following  insurance
during the Term:

          (a)  Commercial general public liability insurance
     with  limits of not less than Five Million  and  No/100
     Dollars ($5,000,000.00) per occurrence.

          (b)   All-risk  property  insurance  covering  all
     Improvements   constituting  part  of   the   Premises,
     including  the  Building,  all  Alterations  and  other
     improvements  (excluding  Tenant's  Property),  in   an
     amount not less than one hundred percent (100%) of  the
     replacement  cost thereof, including (i)  ordinance  or
     law coverage including any amounts necessary to replace
     the  undamaged portion of the Building, to  cover  cost
     increases  arising  from changes in building  codes  or
     other  ordinances or laws and to cover costs of  debris
     removal, and (ii) boiler and machinery coverage;

          (c)  Property insurance covering Tenant's Property
     in such amounts as Tenant deems necessary or desirable;

          (d)  A liquor liability policy with limits of  not
     less    than   Five   Million   and   No/100    Dollars
     ($5,000,000.00)  per occurrence and  Five  Million  and
     No/100 Dollars ($5,000,000.00) in the aggregate;

          (e) Workers' compensation and employer's liability
     insurance as required by applicable law;

          (f)   Insurance  against  loss  or   damage   from
     explosion  of any steam or pressure boilers or  similar
     apparatus  located in or about the Improvements  in  an
     amount not less than the actual replacement cost of the
     Improvements   and   equipment   located   within   the
     Improvements;

          (g)  If any portion of the improvements is located
     in   an   area  designated  by  the  Federal  Emergency
     Management Association as having special flood and  mud
     slide hazards, flood insurance in the maximum available
     amount; and

          (h)  Loss  of rent insurance in amounts sufficient
     to  compensate  Landlord for all Base Rent,  Additional
     Rent  and other amounts payable hereunder for a  period
     of not less than twelve (12) months, the amount of such
     coverage  to be adjusted annually to reflect  the  Base
     Rent,  Additional Rent and other amounts payable during
     the succeeding twelve (12) month period.

     12.2. GENERAL REQUIREMENTS. All insurance (and renewals
thereof)  required  by  this  Article  shall  be  issued  by
responsible insurance carriers authorized to do business  in
the  State  in  which the Premises is located and  having  a
claims  paying  ability rating of not  less  than  "A-.'  by
Standard & Poor's Rating Services, a division of The McGraw-
Hill  Companies, Inc. Each policy (and any renewal  thereof)
shall  expressly provide that it shall not be  cancelled  or
changed  without  at least thirty (30) days'  prior  written
notice  to  all  parties  insured  or  named  therein.   The
insurance  described  in Sections 12.1  (a)  and  (d)  shall
include Landlord and Landlord's Lender if any, as additional
insureds. The insurance provided under Sections 12.1 (b) (f)
and  (g) shall name Landlord each Landlord Lender as a  loss
payee  with respect to any losses, and any proceeds paid  to
Landlord  thereunder shall be held and disbursed by Landlord
on the same terms as those set forth in Section 11.3 (except
that  proceeds  from losses of less than $125,000  shall  be
paid  to  Tenant  provided  that no  Event  of  Default  has
occurred  and  is continuing). In the event  of  any  Tenant
financing,  the interest of Landlord and Landlord's  Lender,
if  any,  under the property insurance described in Sections
12.1(b) (f) and (g) shall be senior to the interest  of  any
Tenant  Lender.   All  of  the insurance  required  by  this
Article  shall  be  primary  and  noncontributing  with  any
insurance which may be carried by the Landlord, shall afford
coverage for all claims based on any act, omission, event or
condition  which occurs or arises during the policy  period,
and may be obtained by endorsement on blanket policy(ies) of
insurance  carried and maintained by Tenant.  Upon  issuance
and each renewal thereof, Tenant shall deliver to Landlord a
certificate thereof and reasonable evidence of paid premium,
failing  which Landlord shall have the right  from  time  to
time  after no less than ten (10) days' notice (except  that
if  any insurance required under Section 12.1 has lapsed, no
prior  notice  shall be necessary) to effect such  insurance
for  no  more  than  one (1) year and all premiums  paid  by
Landlord shall be reimbursed by Tenant upon written  demand.
The  amount  of  insurance  coverage  required  in  Sections
12.1(a) and (d) above each shall be subject to increase from
time  to time (but not more frequently than once every  five
(5)  years)  and upon not less than ninety (90)  days  prior
notice  therefor from Landlord to Tenant; provided that  (y)
such  additional coverage is comparable and  not  more  than
that commonly carried by owners of similar properties in the
metropolitan  vicinity  of  the  Premises,  and   (z)   such
additional  coverage is available at commercially reasonable
rates.  Landlord  shall have no interest  in  any  insurance
proceeds  Tenant receives for Tenant's Property and Landlord
shall  sign all documents which are necessary or appropriate
in  connection with the settlement of any claim or  loss  by
Tenant with respect to Tenant's Property.

     12.3.  MUTUAL WAIVER OF SUBROGATION. Tenant  agrees  to
have  all  policies of fire and extended coverage  insurance
now   or  hereafter  carried  by  it  with  respect  to  the
Improvements   endorsed  with  a  clause  substantially   as
follows: "This insurance shall not be invalidated should the
insured  waive in writing prior to a loss any or all  rights
of  recovery  against any party for loss  occurring  to  the
property described herein." The obligation to obtain such an
endorsement shall be subject to the availability thereof  at
commercially  reasonable rates. Landlord and  Tenant  hereby
waive  all claims for recovery from each other for any  loss
or  damage to it or any of its property insured under  valid
and  collectible  insurance policies to the  extent  of  the
proceeds collected under such insurance policies.

                13. ASSIGNMENT AND SUBLETTING

     13.1.  CONSENT REQUIRED. Except as provided in  Section
13.2  below  and  Tenant financing pursuant  to  Article  20
below,  Tenant shall not sell, encumber, assign or  transfer
this  Lease  or any interest herein, nor sublet all  or  any
part  of  the Premises without the prior written consent  of
Landlord   which   shall   not  be  unreasonably   withheld,
conditioned or delayed so long as such proposed assignee  or
subtenant is a capable operator of a restaurant facility and
has a financial condition and creditworthiness sufficient to
meet  the financial obligations of Tenant under this  Lease.
With  respect  to  an  assignment or  subletting  for  which
Landlord's  consent  is  required the  following  provisions
shall apply:

          (i)  there shall be submitted to Landlord  current
     financial  information  and information  regarding  the
     business   reputation  and  experience  regarding   the
     proposed assignee/sublessee

          (ii) the business reputation and experience of the
     proposed  assignee or sublessee (or the  principals  or
     owners   thereof)   shall  meet  or  exceed   generally
     acceptable commercial standards for like properties;

          (iii)  in  the case of an assignment, the proposed
     assignee shall agree in writing to assume and abide  by
     all  terms and provisions of this Lease from and  after
     the date of such assignment; and

          (iv)  no Event of Default shall have occurred  and
     be continuing.

     Landlord  agrees  to respond within  twenty  (20)  days
after  receipt  of Tenant's written request  for  Landlord's
consent  (together with the information specified above  and
other  information reasonably requested by  Landlord)  to  a
proposed  assignment  or  sublet  and  submission   of   the
financial  information  and business qualifications  of  the
proposed assignee/sublessee pursuant to clauses (i) and (ii)
above.  Any  disapproval shall be explained in  writing.  If
Landlord fails to respond or explain its disapproval by  the
expiration of said twenty (20) day period, Tenant  may  give
to  Landlord  a  reminder  notice  stating  that  Landlord's
failure  to  respond within ten (10) days after  receipt  of
such   reminder   notice  shall  be  deemed  to   constitute
Landlord's approval of the transaction in question,  and  if
Landlord  shall  fail to respond or explain its  disapproval
within  ten (10) days after receipt of such reminder notice,
the  transaction which is the subject of Tenant's notice  to
Landlord  shall be deemed approved. Consent by  Landlord  to
any  assignment or subletting shall not waive the  necessity
for  consent to any subsequent assignment or subletting  for
which Landlord's consent is required by this section.

     13.2.  PERMITTED TRANSFER. Tenant shall have the right,
without any cost, fee or payment to Landlord (other than  as
set  forth in Section 13.4 below), to sublet any portion  of
the  Premises,  or  to transfer and assign  Tenant's  right,
title  and interest in this Lease, without Landlord's  prior
written  consent, to the following persons and  entities  in
the following events (each, a "Permitted Transfer"): (i)  to
Franchisor;   (ii)   to  another  licensed   franchisee   of
Franchisor;  (iii)  to  a parent, subsidiary,  affiliate  or
division  of  Tenant, Apple American Group  LLC  ("AAG")  or
their  respective investors; (iv) to any entity (other  than
an  entity described in subpart (iii) of this Section  13.2)
that acquires, by merger, consolidation or otherwise, all or
substantially all of the membership interests in and control
of,  Tenant or AAG (provided that no Event of Default  shall
have  occurred  and  be continuing); or (v)  to  any  entity
(other  than  an entity described in subpart (iii)  of  this
Section  13.2)  that  acquires all or substantially  all  of
Tenant's  assets  (excluding the  Distinctive  Property)  or
AAG's  assets (provided that no Event of Default shall  have
occurred  and be continuing). A direct or indirect  transfer
of  all  or any interest in AAG shall not be deemed a  sale,
encumbrance,  assignment or transfer of this  Lease  or  any
interest herein. A direct or indirect transfer by AAG of all
or  any  interest  in Tenant shall not  be  deemed  a  sale,
encumbrance,  assignment or transfer of this  Lease  or  any
interest therein; provided, that the transferee is  a  party
to  whom,  if  the  lessee's interest  in  this  Lease  were
transferred to such party, such transfer would constitute  a
Permitted  Transfer.  For  purposes  of  this  Section  13.2
references to Tenant, Franchisor and AAG shall be deemed  to
include their respective successors and assigns.

     13.3.  GENERAL PROVISIONS. In the case of any  sublease
or assignment of this Lease, Tenant shall submit an executed
copy  of  the sublease or assignment instrument to Landlord.
Notwithstanding  anything  to  the  contrary  which  may  be
provided in this Lease, (a) the Tenant making any assignment
or  sublease shall not be released from any liability  under
this  Lease  as a result of any assignment or sublease  made
pursuant to Section 13.1 or Section 13.2(iii), and  (b)  the
Tenant assigning all of its right, title and interest  under
this  Lease  (and  any  predecessor  Tenant  that  has   not
theretofore been released) shall be released from all future
liability under this Lease in connection with any assignment
of  all of such assigning Tenant's right, title and interest
in  this Lease described in subsections (i), (ii), (iv)  and
(v)  of Section 13.2, provided that (i) the assignee  of  an
assignment  or transfer described in subsections (i),  (ii),
and  (v) of Section 13.2 assumes all obligations under  this
Lease pursuant to an assignment and assumption agreement  in
the form attached as Schedule 1 to the Guaranty attached  as
Exhibit  D  hereto,  and  (ii)  if  the  Tenant  making  the
assignment  is  not  the originally named Tenant  hereunder,
such  assigning Tenant (and any predecessor Tenant that  has
not  theretofore been released) shall not be released in the
case of an assignment or transfer of such assigning Tenant's
right,  title and interest in this Lease to (X)  any  entity
that acquires, by merger, consolidation or otherwise, all or
substantially all of the membership interests in and control
of,  such  assigning Tenant pursuant to subsection  (iv)  of
Section 13.2 above, or (Y) any entity that acquires  all  or
substantially all of such assigning Tenant's assets pursuant
to subsection (v) of Section 13.2 above, unless the assignee
or transferor will directly or indirectly hold, after giving
effect  to such assignment or transfer, all or substantially
all  of the assets of the originally named Tenant hereunder.
Landlord  shall  not  be entitled to  any  consideration  in
connection  with any assignment or sublet. Unless  expressly
released pursuant to the provisions of this Section 13.3,  a
Tenant  which  assigns subleases or otherwise transfers  its
interest  in  this Lease or the Premises shall remain  fully
liable for all of the obligations, duties and liabilities of
the  Tenant  under this Lease following any such assignment,
sublease or other transfer.

     13.4. COSTS AND FEES. Tenant shall not be obligated  to
reimburse Landlord for any cost, fee or payment incurred  by
Landlord  or  Landlord's  Lender  in  connection  with   any
requests for approval of an assignment of this Lease or  any
sublease  of  the Premises other than reasonable  costs  and
expenses   incurred   by  Landlord   and   Landlord   Lender
(including,  without limitation. reasonable attorneys'  fees
and disbursements).

                     14. INDEMNIFICATION

     14.1. INDEMNIFICATION OF LANDLORD.

          (i)   TENANT   AGREES  TO  DEFEND,  PAY,   PROTECT
     INDEMNIFY,   SAVE  AND  HOLD  HARMLESS   LANDLORD   AND
     LANDLORD'S  INDEMNITEES (AS DEFINED IN  SECTION  5.2(B)
     ABOVE FROM AND AGAINST ANY AND ALL LIABILITIES, LOSSES,
     DAMAGES, PENALTIES, COSTS, EXPENSES (INCLUDING, WITHOUT
     LIMITATION    REASONABLE    ATTORNEYS'     FEES     AND
     DISBURSEMENTS),  CAUSES  OF  ACTION,   SUITS,   CLAIMS,
     DEMANDS   OR   JUDGMENTS  OF  ANY  NATURE   WHATSOEVER,
     HOWSOEVER CAUSED, ARISING OR ALLEGED TO ARISE FROM  THE
     PREMISES  OR  THE  USE, NON-USE, OCCUPANCY,  CONDITION,
     CONSTRUCTION, MAINTENANCE, REPAIR OR REBUILDING OF  THE
     PREMISES,  ANY  BREACH OF THIS LEASE  ON  THE  PART  OF
     TENANT  OR LANDLORD'S ENFORCEMENT OF THE PROVISIONS  OF
     THIS LEASE, AND ANY INJURY TO OR DEATH OF ANY PERSON OR
     PERSONS OR ANY LOSS OF OR DAMAGE TO ANY PROPERTY,  REAL
     OR PERSONAL, IN ANY MANNER ARISING THEREFROM, CONNECTED
     THEREWITH   OR  OCCURRING  THEREON,  AND  ANY   CLAIMS,
     DEMANDS, CAUSES OF ACTION, SUITS OR JUDGMENTS BY  THIRD
     PARTIES RESULTING FROM VIOLATIONS OR ALLEGED VIOLATIONS
     BY  TENANT  OR ANY SUBTENANT OF ANY PROVISION  OF  THIS
     LEASE,  ANY  LEGAL  REQUIREMENT,  ANY  OTHER  LEASE  OR
     AGREEMENT  RELATING  TO  THE  PREMISES,  OR  ANY  OTHER
     CONTRACT  OR AGREEMENT TO WHICH TENANT OR ANY SUBTENANT
     IS  A  PARTY,  WHETHER  OR NOT LANDLORD  OR  LANDLORD'S
     LENDER  HAS OR SHOULD HAVE KNOWLEDGE OR NOTICE  OF  THE
     DEFECT  OR  CONDITIONS, IF ANY, CAUSING OR CONTRIBUTING
     TO   SAID   INJURY,  DEATH,  LOSS,  DAMAGE,  LIABILITY,
     PENALTY, COST, EXPENSE, CAUSE OF ACTION, SUIT,  DEMAND,
     JUDGMENT OR OTHER CLAIM; EXCEPT TO THE EXTENT THAT  ANY
     SUCH  LIABILITY, LOSS, DAMAGE, PENALTY , COST, EXPENSE,
     CAUSE OF ACTION, SUIT, CLAIM, DEMAND OR JUDGMENT IS THE
     RESULT  OF  THE  WILLFUL MISCONDUCT  OR  NEGLIGENCE  OF
     LANDLORD OR ANY LANDLORD INDEMNITEE. IN CASE ANY ACTION
     OR  PROCEEDING  IS  BROUGHT  AGAINST  LANDLORD  OR  ANY
     LANDLORD'S  INDEMNITEE  BY REASON  OF  ANY  SUCH  CLAIM
     AGAINST  WHICH  TENANT  HAS  AGREED  TO  DEFEND,   PAY,
     PROTECT, INDEMNIFY, SAVE AND HOLD HARMLESS PURSUANT  TO
     THE  PRECEDING SENTENCE, TENANT COVENANTS  UPON  NOTICE
     FROM  LANDLORD OR ANY LANDLORD'S INDEMNITEE  TO  RESIST
     SUCH  ACTION  OR  PROCEEDING AND  DEFEND  LANDLORD  AND
     LANDLORD'S  INDEMNITEE  IN SUCH ACTION  OR  PROCEEDING,
     WITH  THE EXPENSES OF SUCH DEFENSE PAID BY TENANT,  AND
     LANDLORD  WILL COOPERATE AND ASSIST IN THE  DEFENSE  OF
     SUCH ACTION OR PROCEEDING IF REASONABLY REQUESTED SO TO
     DO BY TENANT.

          (ii)  The obligations of Tenant under this Section

     14.1  shall  survive the termination or  expiration  of

     this Lease.

     14.2. INDEMNIFICATION OF TENANT. (i) LANDLORD AGREES TO
DEFEND,  PAY,  PROTECT, INDEMNIFY, SAVE  AND  HOLD  HARMLESS
TENANT, ANY TENANT LENDER, AND THEIR RESPECTIVE MEMBERS  AND
ITS   AND  THEIR  RESPECTIVE  MEMBERS,  MANAGERS,  OFFICERS,
EMPLOYEES.  DIRECTORS,  SHAREHOLDERS  AND  AGENTS   ("TENANT
INDEMNITEES")  FROM  AND  AGAINST ANY  AND  ALL  LIABILITIES
LOSSES,  DAMAGES,  PENALTIES,  COSTS,  EXPENSES  (INCLUDING,
WITHOUT   LIMITATION,   REASONABLE  ATTORNEYS'   FEES,   AND
DISBURSEMENTS), CAUSES OF ACTION, SUITS, CLAIMS, DEMANDS  OR
JUDGMENTS  OF  ANY  NATURE  WHATSOEVER,  HOWSOEVER   CAUSED,
ARISING OR ALLEGED TO ARISE FROM ANY BREACH OF THIS LEASE ON
THE  PART  OF  THE LANDLORD OR TENANT'S ENFORCEMENT  OF  THE
PROVISIONS OF THIS LEASE, AND ANY INJURY TO OR DEATH OF  ANY
PERSON  OR PERSONS OR ANY LOSS OF OR DAMAGE TO ANY PROPERTY,
REAL  OR  PERSONAL, IN ANY MANNER ARISING FROM OR  CONNECTED
WITH LANDLORD'S BREACH OF THIS LEASE OR TENANT'S ENFORCEMENT
OF THE PROVISIONS OF THIS LEASE OR OCCURRING ON THE PREMISES
TO THE EXTENT CAUSED BY THE WILLFUL MISCONDUCT OR NEGLIGENCE
OF  LANDLORD OR ANY LANDLORD INDEMNITEE. IN CASE ANY  ACTION
OR   PROCEEDING  IS  BROUGHT  AGAINST  TENANT,  OR  TENANT'S
INDEMNITEE  BY  REASON  OF  ANY  SUCH  CLAIM  AGAINST  WHICH
LANDLORD HAS AGREED TO DEFEND, PAY, PROTECT, INDEMNIFY, SAVE
AND  HOLD  HARMLESS  PURSUANT  TO  THE  PRECEDING  SENTENCE,
LANDLORD  COVENANTS  UPON  NOTICE FROM  TENANT  OR  TENANT'S
INDEMNITEE  TO RESIST SUCH ACTION OR PROCEEDING  AND  DEFEND
TENANT AND TENANT'S INDEMNITEE IN SUCH ACTION OR PROCEEDING,
WITH  THE  EXPENSES OF SUCH DEFENSE PAID  BY  LANDLORD,  AND
TENANT  WILL  COOPERATE AND ASSIST IN THE  DEFENSE  OF  SUCH
ACTION  OR PROCEEDING IF REASONABLY REQUESTED SO  TO  DO  BY
LANDLORD.

          (ii)   The  obligations  of  Landlord  under  this
     Section   14.2   shall  survive  the   termination   or
     expiration of this Lease.

                    15. DEFAULT: REMEDIES

     15.1.  DEFAULT  BY TENANT. Each of the following  shall
constitute an Event of Default (herein so called) by  Tenant
under this Lease:

          (i)  Tenant fails to pay any installment  of  Base
     Rent  in  full  under this Lease within five  (5)  days
     after  notice from Landlord that such payment  was  not
     received when due;

          (ii)  Tenant  fails  to  pay  any  installment  of
     Additional  Rent  in full under this Lease  within  ten
     (10)  days after notice from Landlord that such payment
     was not received when due;

          (iii) Tenant fails to observe or perform any other
     provision  of  this Lease required to  be  observed  or
     performed  by  Tenant and does not  cure  such  failure
     within  thirty  (30)  days after  notice  thereof  from
     Landlord; provided that if such default is not  capable
     of  being  cured  within thirty (30)  days  and  Tenant
     promptly  commences  such cure, said  thirty  (30)  day
     period  shall be extended so long as Tenant  diligently
     and continuously pursues such cure;

          (iv)   Tenant   or  any  guarantor   of   Tenant's
     obligations  under this Lease (a "Guarantor")  makes  a
     general assignment for the benefit of creditors;

          (v)  A  receiver  or  trustee  of  Tenant  or  any
     Guarantor   or  any  of  their  respective  assets   is
     appointed  by entry of an order by a court of competent
     jurisdiction and the same is not vacated, discharged or
     dismissed within sixty (60) days thereafter;

          (vi)  A petition for relief is filed by Tenant  or
     any  Guarantor  under any bankruptcy or insolvency  law
     seeking  a plan of reorganization or arrangement  under
     any law relating to bankruptcy, or any such petition is
     filed  against Tenant or any Guarantor and same is  not
     dismissed, discharged or vacated within sixty (60) days
     thereafter;

          (vii)  The  interest of Tenant in the Premises  is
     sold under execution or other legal process;

          (viii)  Tenant  fails  to maintain  any  insurance
     required  under Section 12.1 of this Lease within  five
     (5) days after notice from Landlord of such failure; or

          (ix)  Tenant  assigns this Lease or subleases  any
     portion of the Premises in violation of Section  13  of
     this Lease.

15.2. LANDLORD'S REMEDIES.

     (a)  Upon  the occurrence of an Event of Default  under
Section  15.1, Landlord shall have the following rights  and
remedies,  subject  to  the rights of Franchisor  or  Tenant
Lender  under  the  provisions of Section 15.3  and  Section
20.2:

          (i) To terminate this Lease and Tenant's right  of
     possession  of  the Premises by giving notice  of  such
     election  to  Tenant, in which event (A)  Tenant  shall
     immediately  surrender possession thereof to  Landlord,
     failing which Landlord may re-enter and take possession
     of  the  Premises and expel or remove  Tenant  and  any
     other occupant(s) thereof in accordance with applicable
     law  ("Reentry"), and (B) Tenant shall have no  further
     claim thereon or hereunder;

          (ii) To terminate Tenant's right of possession  of
     the  Premises without terminating this Lease by  giving
     notice  of such election to Tenant, in which event  (A)
     Tenant  shall immediately surrender possession  thereof
     to  Landlord,  failing which Landlord may exercise  the
     right of Reentry, and (B) Landlord shall have the right
     to occupy the Premises for and on account of Tenant and
     to  collect any unpaid rentals and other charges  which
     have or may thereafter become due and payable;

          (iii)  To exercise the rights described in  clause
     (ii) above and thereafter elect to terminate this Lease
     and  all  of  Tenant's rights in or to the Premises  by
     giving notice of such election to Tenant; or

          (iv) To exercise any other right or remedy now  or
     hereafter existing by law or in equity.

     (b)  If Landlord reenters the Premises under subsection
(a)(ii)  above,  such  reentry or any  action,  in  unlawful
detainer  or otherwise, to obtain possession of the Premises
shall  not  be  deemed  to  be an election  by  Landlord  to
terminate this Lease, or Tenant's liability to pay  rent  or
other charges thereafter accruing, or Tenant's liability for
damages under any provisions hereof, unless Landlord  elects
to  terminate  this Lease by written notice to  that  effect
given  to  Tenant.  Tenant covenants  that  the  service  by
Landlord  of  any  notice pursuant to the unlawful  detainer
statutes  of the State in which the Premises is located  and
the  surrender of possession pursuant to such  notice  shall
not  be  deemed  to be a. termination of this Lease,  unless
Landlord  elects to the contrary by written notice  to  that
effect  given to Tenant at the time of or after the  service
of  any such statutory notice. If Landlord reenters or takes
possession of the Premises as aforesaid, Landlord shall have
the   right,  subject  to  the  provisions  of  this  Lease,
including  without  limitation, the  provisions  of  Section
16.2,  to  remove therefrom all or any part of the  personal
property  located therein and may dispose of  or  place  the
same  in  storage at a public warehouse at the  expense  and
risk  of Tenant; provided, however, that Landlord shall  not
be  obligated to remove and/or dispose of any such  personal
property.

     (c)  If  Landlord elects to reenter the Premises  under
subsection  (a)(ii)  above  and  takes  possession  of   the
Premises, Landlord may, but except to the extent required by
applicable  law or court order, shall not be  obligated  to,
relet  the  Premises for a term, rate and  upon  such  other
provisions  as  Landlord deems appropriate. If  Landlord  so
reenters and takes possession of the Premises, Landlord  may
decorate,  repair  and  alter the  Premises  to  the  extent
Landlord  deems appropriate for purposes of such  reletting.
If  Landlord is unable to so relet the Premises, then Tenant
shall pay to Landlord monthly on the first day of each month
during  the  period  that Tenant's right  to  possession  is
terminated, a sum equal to the Rent due under this Lease for
that  month. If the Premises are relet, Landlord shall apply
the  rents therefrom first to payment of Landlord's expenses
incurred  by reason of Tenant's default, second, to  payment
of  Landlord's  expenses  of  reletting,  including  without
limitation,  brokerage fees and reasonable attorneys'  fees,
and  third,  to payment of Rent due from Tenant  under  this
Lease. All sums expended and concessions granted to any  new
tenant shall be amortized on a straight -line basis over the
term  of  the  ne'vY  lease and Tenant's liability  therefor
shall  be  limited  to  that  portion  attributable  to  the
unexpired term of this Lease. If the sums received from such
reletting  are insufficient to satisfy the payment  of  Rent
due from Tenant under this Lease for any month, Tenant shall
remain liable for the deficiency. If the sums received  from
such reletting exceed the Rent otherwise due from Tenant for
any  month, Tenant shall have no rights thereto except  that
such   excess   amounts  shall  be  applied   against   Rent
subsequently  due  under this Lease. No  such  reletting  by
Landlord  shall  be considered to be (A) for Landlord's  own
account unless and until Landlord notifies Tenant that  this
Lease has been terminated, and (B) an acceptance of Tenant's
surrender  of  the  Premises unless and  until  Landlord  so
notifies Tenant

     (d)  In  the event of any termination of this Lease  or
repossession of any of the Premises after the occurrence  of
an Event of Default, Tenant shall pay to Landlord Base Rent,
Additional  Rent and all other sums required to be  paid  by
Tenant  to  and  including the date of such  termination  or
repossession and, thereafter, Tenant shall, until the end of
what  would  have  been  the Term in  the  absence  of  such
termination or repossession, and whether or not any  of  the
Premises  shall have been relet, be liable to  Landlord  for
and  shall pay to Landlord as liquidated and agreed  current
damages:  (i) Base Rent, Additional Rent and all other  sums
which  would  be payable under this Lease by Tenant  in  the
absence  of such termination or repossession, less (ii)  the
net  proceeds, if any, of any reletting pursuant to  Section
15.2(c),   after  deducting  from  such  proceeds   all   of
Landlord's  reasonable expenses in connection with  such  re
letting   (including  without  limitation,  all   reasonable
repossession costs,. brokerage commissions, legal  expenses,
attorneys'  fees,  costs  of  Alteration  and  expenses   of
preparation for reletting). Tenant hereby agrees to  be  and
remain  liable  for  all  sums aforesaid  and  Landlord  may
recover  such damages from Tenant and institute and maintain
successive  actions or legal proceedings against Tenant  for
the recovery of such damages. Nothing herein contained shall
be  deemed to require Landlord to wait to begin such  action
or  other  legal proceedings until the date  when  the  Term
would have expired had there been no such Event of Default.

     (e)  At  any time after such termination of this  Lease
pursuant  to Section 15.2(a)(i) or pursuant to law,  whether
or  not  Landlord  shall have recovered  any  amounts  under
Section  15.2(c) or 15.2(d), Landlord, at its option,  shall
be  entitled to recover from Tenant and Tenant shall pay  to
Landlord, on demand, as and for liquidated and agreed  final
damages  for Tenant's default, (i) the amount by  which  the
Base Rent and all Additional Rent reserved hereunder for the
unexpired portion of the Term demised herein as if the Lease
had not expired or been terminated exceeds the then fair and
reasonable rental value of the Premises for the same period,
discounted to present worth at the prime rate (as defined in
Section   24.6),   minus   any  such  monthly   deficiencies
previously recovered from Tenant for such unexpired  portion
of  the Term demised herein under Section 15.2(c), plus (ii)
all  reasonable  legal  fees and other  costs  and  expenses
incurred  by Landlord as a result of Tenant's default  under
this  Lease  and  the  exercise of any rights  and  remedies
hereunder.

     (f)  If  any  statute  or  rule  of  law  governing   a
proceeding  in which such liquidated final damages  provided
for  in Section 15.2(e) are to be proved shall validly limit
the  amount thereof to an amount less than the amount  above
agreed  upon,  Landlord  shall be entitled  to  the  maximum
amount allowable under such statute or rule of law.

     (g)  Mention  in  this Lease of any  particular  remedy
shall not preclude Landlord from any other remedy at law  or
in  equity. No right or remedy conferred upon or reserved to
Landlord  in this Lease is intended to be exclusive  of  any
other  right or remedy; and each and every right and  remedy
shall  be  cumulative and in addition to any other right  or
remedy  contained  in  this Lease. No delay  or  failure  by
Landlord  or Tenant to enforce its rights under  this  Lease
shall   be   construed   as   a  waiver,   modification   or
relinquishment  thereof.  Tenant  waives   any   rights   of
redemption  granted  by any laws if  Tenant  is  evicted  or
dispossessed,  or  if  Landlord obtains  possession  of  the
Premises by reason of the violation by Tenant of any of  the
terms of this Lease.

15.3. FRANCHISOR RIGHTS.

     (a)  Landlord  agrees to send a copy of any  notice  of
default  required or permitted to be given to  Tenant  under
this  Lease simultaneously to Franchisor at the last address
for  Franchisor  furnished  to  Landlord  by  Franchisor  in
writing;  provided,  that the failure to  send  such  notice
shall not limit Tenant's default or Landlord's remedies with
respect thereto, or make Landlord liable for any damages. If
Franchisor  has  received  timely notice  of  such  default,
provided,  that  the failure to send such notice  shall  not
limit  Tenant's default or Landlord's remedies with  respect
thereto  or  impose  any liability upon Landlord  therefor),
Landlord agrees and consents to the curing of any default of
Tenant  hereunder by Franchisor, provided that such cure  is
made by Franchisor within the time set forth in Section 15.l
for  Tenant's  cure provided that Franchisor shall  have  an
additional  fifteen  (15)  days  to  cure  a  default  under
Sections  15.1 (i) and (ii), so long as Franchisor  notifies
Landlord within the cure periods set forth in such. Sections
that  Franchisor  will  cure such defaults).  If  Franchisor
elects  to  cure  any  Tenant default hereunder,  Franchisor
shall  give  notice  to that effect to Landlord  and  Tenant
simultaneously with such cure.

     (b)  Notwithstanding  anything to the  contrary  stated
herein,  if an Event of Default has occurred (including  the
expiration  of any applicable cure period), Landlord  agrees
to  give notice thereof to Franchisor ("Termination Notice")
and  Landlord  will  not terminate the Lease  (as  permitted
hereunder) on account of such Event of Default for a  period
of thirty (30) days, during which time Franchisor shall have
the  right  to  lease the Premises upon the same  terms  and
conditions as this Lease, such election to be made by notice
to  that  effect  ("Franchisor Notice") from  Franchisor  to
Landlord  prior  to  the  end  of  said  30-day  period.  If
Franchisor  exercises  such right by giving  the  Franchisor
Notice  to Landlord by the time and in the manner set  forth
in  the  immediately preceding sentence, then (i) Franchisor
and  Landlord shall promptly execute and deliver  a  written
instrument to that effect; (ii) Franchisor shall become  the
tenant  under  this  Lease  with  all  of  the  right~   and
obligations  of tenant commencing upon, first  accruing  and
effective  only  from and after the date of  the  Franchisor
Notice; provided, that Tenant shall not dispute such  action
by  Franchisor  and shall acknowledge its approval  of  such
action  by  Franchisor;  (iii)  Franchisor  shall  have   no
liability,  responsibility or obligation to payor  otherwise
cure any default of Tenant existing prior the effective date
of  exercise by Franchisor of its rights in this subsection;
provided,  that  if  Franchisor  has  received  notice  from
Landlord  of  any Event of Default of Tenant under  Sections
15.1  (i)  or  (ii). Franchisor shall pay any Rent  due  and
payable   by  Tenant  accruing  after  the  date  Franchisor
receives  notice  of  any such Event of  Default;  and  (iv)
nothing  contained herein shall restrict, limit,  terminate,
waive  or otherwise affect Landlord's rights against  Tenant
or  any  guarantor  on  account  of  Tenant's  default.   If
Franchisor  fails to exercise such right on  or  before  the
expiration  of  said  thirty (30) day  period  Landlord  may
pursue  any  rights and remedies that it  may  have  against
Tenant  on  account of Tenant's Event of Default  hereunder.
Nothing  contained  in  this  section  shall  be  deemed  to
obligate  Franchisor  to assume this Lease,  to  become  the
tenant hereunder or to take possession of the Premises.

     (c)  In  the  event that Franchisor becomes the  tenant
under  this  Lease pursuant to the provisions of  subsection
(b)  or  an  assignment under Section 13.2 above, Franchisor
shall  have  the  right  at any time thereafter  upon  prior
notice  to,  but without the prior consent of  Landlord,  to
assign  this Lease and all of its right, title and  interest
as   Tenant   hereunder  to  an  authorized  franchisee   of
Franchisor.  In the event of such an assignment,  Franchisor
shall  be  released from all liabilities and obligations  of
Tenant  first accruing from and after the effective date  of
said  assignment  provided  that  such  assignee  franchisee
assumes  in  writing the obligations of  Tenant  under  this
Lease and a copy thereof is furnished to Landlord.

                  16. SURRENDER OF PREMISES

     16.1.   CONDITION.  Upon  the  expiration  or   earlier
termination  of  this Lease or the termination  of  Tenant's
right  of  possession  of the Premises  only,  Tenant  shall
surrender  the Premises to Landlord in a clean,  safe,  good
and  tenantable  condition, free  of  debris  and  with  all
"grease  traps"  and  similar devices cleaned  and  in  good
working condition, ordinary wear and tear and, if this Lease
is   terminated  pursuant  to  Section  11.4(b),  damage  by
Casualty  excepted.  All  building apparatus  and  equipment
(other  than Tenant's Property) then located on the Premises
and  all  Alterations and other improvements to the Premises
made  during  the Term, whether by Tenant or  others,  shall
remain  on the Premises and shall be considered part of  the
Premises. Tenant shall deliver all keys therefor to Landlord
at  the  place then fixed for the payment of Rent and  shall
make  known  to Landlord the combination for  all  locks  on
safes, cabinets and vaults in the Premises.

16.2.  REMOVAL OF TENANT'S PROPERTY. Upon the expiration  or
earlier  termination  of this Lease or  the  termination  of
Tenant's  right of possession of the Premises  only,  Tenant
shall  have the right, at its sole cost and expense,  for  a
period  of fifteen ( 15) days thereafter to remove  Tenant's
Property,  Distinctive Property and the Financed Personalty,
respectively, from the Premises, provided that Tenant  shall
pay  to  Landlord Rent due under Article 3  hereof  for  the
actual number of days which elapse during such fifteen  (15)
day period until the Tenant's Property, Distinctive Property
and the Financed Personalty, as applicable, are removed from
the  Premises.  If and to the extent that  Tenant  fails  to
remove  any  of  such  property by the  expiration  of  said
fifteen (15) day period, Landlord agrees that Tenant Lender,
TE  Lender  and Franchisor each shall have the right  for  a
period of forty (45) days thereafter to remove the same from
the  Premises,  provided that Tenant shall pay  to  Landlord
Rent  due  hereunder  for the actual number  of  days  which
elapse  until Tenant Lender, TE Lender or Franchisor  remove
the  same from the Premises during such forty five (45)  day
period.  If and to the extent that any such property remains
on  the  Premises  on  the sixtieth (60th)  day  after  such
termination,  the  same shall be deemed  abandoned,  and  at
Landlord's option shall become the property of Landlord  and
may  be  sold  or  disposed of as Land-lord  may  determine;
provided,  however, that Landlord shall not use,  suffer  or
permit  the  use  of  any Distinctive  Property  unless  the
attributes  or  features thereof associated with  Tenant  or
Franchisor are removed or obliterated. Any and all damage to
the  Building  caused by or resulting from  the  removal  of
Tenant's   Property,   Distinctive  Property   or   Financed
Personalty shall promptly be repaired at no cost or  expense
to  Landlord  and Tenant shall be liable for such  cost  and
expense  unless such repairs are made by Tenant,  Franchisor
or TE Lender, as the case may be.

              17. SUBORDINATION AND ATTORNMENT

     17.1.  SUBORDINATION.  This Lease  and  the  rights  of
Tenant  hereunder are expressly subject and  subordinate  to
the  lien  of  any mortgage or deed of trust constituting  a
lien  on  Landlord's fee interest in the Premises ("Landlord
Mortgage")  and  any  renewals,  extensions,  modifications,
consolidations  and  replacements  thereof,  which  now   or
hereafter affect all or any portion of the Premises  (except
to  the  extent that any such instrument expressly  provides
that this Lease is superior to it); provided that the holder
of  the  Landlord  Mortgage ("Landlord  Lender")  agrees  in
writing  not to disturb Tenant, Tenant's right to possession
and use of the Premises and Tenant's rights under this Lease
so  long as there shall be no Event of Default on behalf  of
Tenant  hereunder. Tenant agrees to execute and  deliver  to
Landlord  and any Landlord Lender at any time and from  time
to  time all such documents reasonably requested by Landlord
or  Landlord's  Lender, which are reasonably  acceptable  to
Tenant  and  Tenant's  Lender, to  confirm  or  effect  such
subordination   including,  without  limitation,   an   SNDA
substantially  in the form attached as Exhibit  E;  provided
that such Landlord Lender agrees to recognize this Lease and
the  rights of Tenant set forth herein for so long as  there
shall  be no Event of Default on behalf of Tenant hereunder.
Notwithstanding any foreclosure or sale under  any  Landlord
Mortgage  (or transfer by deed in lieu thereof), this  Lease
shall remain in full force and effect in accordance with its
terms. Landlord and any Landlord Lender shall execute within
ten  (10)  days  after request any documentation  reasonably
required  by  any  TF  Lender or Tenant  Lender,  which  are
reasonably  acceptable to Landlord and any Landlord  Lender,
to   confirm   the  priority  of  such  lender's  interests.
Notwithstanding  the provisions of this  Section  17.1,  the
holder  of  any  Landlord Mortgage to which  this  Lease  is
subject  and subordinate shall have the right, at  its  sole
option, at any time, to subordinate and subject the Landlord
Mortgage, in whole or in part, to this Lease by recording  a
unilateral declaration to such effect. Tenant hereby  agrees
that any Landlord Lender shall not be bound to the terms  of
any material modification or amendment of this Lease entered
into  after the date of such Landlord Mortgage, unless  such
Landlord  Lender has consented to such material modification
or  amendment. Tenant hereby agrees that after the  date  of
such Landlord Mortgage, Tenant shall not pay to Landlord any
installment of Base Rent more than one (I) month in  advance
of  the  due  date  thereof, unless  Landlord  Lender  shall
consent to such prepayment.

     17.2.  ATTORNMENT. In the event of the  foreclosure  of
any  Landlord Mortgage by voluntary agreement or  otherwise,
or  the  commencement  of any judicial action  seeking  such
foreclosure, Tenant will become the tenant of and attorn  to
and   recognize  such  Landlord  Lender  or   purchaser   in
foreclosure  as Tenant's landlord under this  Lease  without
change in the provisions of this Lease. Upon request by such
successor  in interest, Tenant will execute and  deliver  an
instrument confirming such attornment, which will  recognize
this  Lease  and the rights of Tenant set forth  herein  and
shall  provide  that  such successor in  interest  will  not
disturb Tenant in its use of the Premises in accordance with
this  Lease  unless there is an Event of Default  continuing
hereunder  and such successor in interest would be  entitled
to exercise such remedy under Section 15.2 hereof.

                  18. ESTOPPEL CERTIFICATES

     18.1.  ESTOPPEL CERTIFICATES. Within fifteen (15)  days
after  Written request from Landlord or Tenant to the other,
such  other  party  shall execute and  deliver  an  estoppel
certificate  signed  by  an  officer  of  such   party   and
certifying: the Commencement Date and expiration date of the
Term;  the  date to which Rent has been paid; the amount  of
Rent  then being paid; that this Lease is in full force  and
effect  and has not been modified, amended or assigned  (or,
if  modified,  stating the nature of such  modification  and
certifying that this Lease, as so modified, is in full force
and  effect);  that to such party's knowledge there  are  no
defaults  by the other party under this Lease, nor  to  such
party's  knowledge  any existing condition  upon  which  the
giving of notice or lapse of time or both would constitute a
default  (or,  if  such exist, stating the nature  thereof);
that  such  party has received no notice from any  insurance
company of any defects or inadequacies of the Premises; that
such  party has no options or rights other than as set forth
in  this  Lease;  and  such other  factual  matters  as  the
requesting party may reasonably request. Failure to  deliver
such statement within said fifteen (15) day period shall  be
conclusive  upon the party to whom the request was  directed
that  this  Lease  is  in  full force  and  effect,  without
modification except as may be represented by the  requesting
party  in the draft estoppel presented, that to such party's
knowledge  there are no uncured defaults in  the  requesting
party's  performance, and that all other statements required
to be made in the estoppel letter are conclusively made.

                         19. NOTICES

     19.1. NOTICES. All notices required or permitted to  be
given  under  this Lease shall be in writing  and  shall  be
deemed  given on the date when personally delivered  or,  if
earlier,  the  next  business  day  if  sent  by  recognized
overnight  air  courier, or two (2) business  days  (or,  if
earlier,  when actually received) after being  deposited  in
the United States Mail, postage prepaid, properly addressed,
certified mail, return receipt requested, as follows:

TO LANDLORD:           At the address set forth in Section 1.2,

With a copy to:          Liechty & McGinnis, P.C.
                         7502 Greenville Avenue,
                         Suite 750
                         Dallas, Texas 75231
                         Attention: Lome 0. Liechty, Esq.

TO  TENANT             At the address set forth in Section 1.3,

With a copy to:          Peter B. Loughman, Esq.
                         155 North Michigan Avenue,
                         Suite 600
                         Chicago, Illinois 60601

TO FRANCHISOR:           Applebee's International, Inc.
                         4551 West 107th Street,
                         Suite 100
                         Overland Park, Kansas 66207
                         Attention: General Counsel

Each  entity or person entitled to receive notice or a  copy
thereof  pursuant to this Lease (" Addressee") at  any  time
and  from  time  to time may change its address  for  notice
purposes  by  giving  notice of such  change  to  all  other
Addressees  in  any manner specified above at least  fifteen
(15)  days  before  such  change of  address  is  to  become
effective.

                   20. LEASEHOLD FINANCING

     20.1.  LEASEHOLD FINANCING. Tenant shall have the right
at  any  time  and from time to time during  the  Term  with
notice  to, but without the consent or approval of Landlord,
to  grant  a mortgage or other security interest ("Leasehold
Mortgage") in Tenant's interest in this Lease (the leasehold
estate  created hereby), and all of Tenant's  Property,  all
upon  the condition that all rights acquired under any  such
Leasehold Mortgage shall be subject to each and all  of  the
covenants, conditions, terms and restrictions set  forth  in
this  Lease.  Tenant Lender's foreclosure on  the  Leasehold
Mortgage shall not terminate this Lease or affect any of the
covenants, conditions, terms and restrictions set  forth  in
this Lease as obligations of Tenant.

     20.2.  TENANT  LENDER. If Landlord is provided  written
notice of a Leasehold Mortgage and the name and address  for
notice  of  the holder of a Leasehold Mortgage (the  "Tenant
Lender"),  then  the  rights of  such  Tenant  Lender  shall
include  the  following, which shall be binding on  Landlord
(and any Landlord Lender). Upon recordation of the Leasehold
Mortgage  and  for  so  long  thereafter  as  the  Leasehold
Mortgage remains unsatisfied: (i) Landlord agrees to deliver
a  copy of any notice of default given to Tenant under  this
Lease  simultaneously to Tenant Lender at its  last  address
furnished to Landlord in writing; provided, that the failure
to  send  such  notice shall not limit Tenant's  default  or
Landlord's  remedies  against Tenant  with  respect  thereto
(other  than such remedies as would prevent the exercise  of
Tenant  Lender's rights under this Section 20.2), or  impose
any  liability upon Landlord for any damages therefrom; (ii)
Landlord agrees that Tenant Lender shall have the right, but
shall  not  be  obligated, to cure  any  default  of  Tenant
hereunder  provided that such cure is made by Tenant  Lender
within the time provided to Tenant pursuant to Section  15.1
provided,  that such Tenant Lender shall have an  additional
fifteen  (15) days to cure a default under Sections  15.1(i)
and  15.1(ii),  so  long as Tenant Lender notifies  Landlord
within  the cure periods set forth in such Sections that  it
will  cure such defaults); (iii) if Tenant Lender elects  to
cure  any  default  of Tenant hereunder, (A)  Tenant  Lender
shall  give  notice  to that effect to Landlord  and  Tenant
simultaneously with such cure, and (B) Landlord consents  to
and shall accept such cure with the same force and effect as
if  made by Tenant; (iv) Landlord and Tenant each agree  not
to  cancel  or  surrender this Lease (other than  due  to  a
default  by  a  party  which  was  riot  cured  within   the
applicable cure period after notice was given to Tenant  and
Tenant Lender) or amend the provisions of this Lease without
the  prior  written consent of Tenant Lender, which  consent
shall  not be unreasonably withheld or delayed; and  (v)  if
Landlord  terminates the Lease due to an  Event  of  Default
which   Tenant  Lender  is  unable  to  cure  (e.g.,  Tenant
bankruptcy), and Tenant Lender elects by written  notice  to
Landlord  within forty-five (45) days thereafter to continue
this  Lease, Landlord agrees to enter into a new lease  with
Tenant Lender on the same terms and conditions as set  forth
in  this  Lease  for  the  balance  of  the  original  Term,
including  any  remaining extension options, provided,  that
the  Tenant Lender shall pay to Landlord at the time of  the
execution and delivery of the new lease all sums which would
at  the time of the execution and delivery of the new  lease
be  due pursuant to this Lease but for such termination, and
shall  agree  in  writing to cure and shall cure  all  other
defaults  of Tenant capable of being cured by Tenant  Lender
then existing under this Lease within a reasonable period of
time  after  entering into such new Lease.  Landlord  agrees
promptly  to  execute and deliver such documents  as  Tenant
Lender   reasonably   may  request  which   are   reasonably
acceptable  to Landlord and any Landlord Lender to  evidence
the  provisions of this Section 20.2, including the Landlord
Agreement in the form attached hereto as Exhibit B.

                 21. RIGHT OF FIRST REFUSAL

21.1. RIGHT OF FIRST REFUSAL TO PURCHASE.

     (a)  If at any time after the first anniversary of  the
Commencement Date Landlord shall receive a bona fide written
offer to purchase the Premises or any portion thereof  or  a
direct controlling interest in Landlord's ownership (whether
stock, partnership interests or membership interests) from a
third  party  which is not affiliated with  Landlord,  which
offer  Landlord  or  its  ownership is  willing'  to  accept
("Outside  Contract"), Landlord shall  give  written  notice
("Sale  Notice")  thereof, together  with  a  copy  of  such
Outside  Contract, to Tenant. Tenant shall have a  right  of
first refusal ("Refusal Right") to purchase the Premises  or
the   controlling  interest  therein  or  the   portion   of
Landlord's  ownership interests that is the subject  of  the
Outside Contract in accordance with the terms and provisions
thereof.  If  Tenant desires to exercise the Refusal  Right,
Tenant  shall  deliver  written notice  to  that  effect  to
Landlord  within twenty (20) days after receipt of the  Sale
Notice  ("Refusal Period"). If Tenant exercises the  Refusal
Right  by  the  time  and in the manner set  forth  in  this
subsection,  Landlord and Tenant shall  promptly  execute  a
contract   which  includes  the  same  material  terms   and
conditions  as  the Outside Contract ("Sale  Contract")  and
Tenant  shall  deposit  when due any earnest  money  deposit
required  thereunder.  If Tenant does  not  execute  a  Sale
Contract within fifteen (15) days after Tenant's receipt  of
such  Sale  Contract  from Landlord,  signed  on  behalf  of
Landlord,  or  if  Tenant defaults in its obligations  under
such   Sale  Contract,  then  Landlord  shall  be  free   to
consummate  the  sale pursuant to the Outside  Contract  {or
another   contract  on  substantially  similar   terms   and
conditions).

     (b)  If  Tenant does not exercise the Refusal Right  by
the  time  and  in  the manner set forth in  subsection  (a)
above, then (i) the Refusal Right shall remain in full force
and  effect,  but  not  with respect to  the  proposed  sale
pursuant to the Outside Contract, and (ii) Landlord shall be
free   to  consummate  the  sale  pursuant  to  the  Outside
Contract. If within one hundred eighty (180) days after  the
expiration   of  the  Refusal  Period  Landlord   does   not
consummate  the sale pursuant to the Outside  Contract,  the
Refusal Right shall again be applicable, and Landlord  shall
not thereafter sell the Premises or the Landlord's ownership
interests  pursuant  to the Outside Contract  without  first
offering  Tenant the Refusal Right pursuant to this  Section
21.1.

     (c) The rights granted to Tenant under this Section  21
shall  not  survive  the expiration or termination  of  this
Lease.

     (d)  The provisions of this Section 21 shall not  apply
and Tenant shall not have any Refusal Right (i) with respect
to the sale, conveyance, assignment or other transfer (A) to
any  person  controlling, controlled  by,  or  under  common
control  with  Landlord  or any of its  direct  or  indirect
owners,  (B) by gift, descent or devise, or (C) to any  saJe
..<or   conveyance  in  lieu  thereof)  by   foreclosure   or
enforcement of a lien or security interest, or (ii)  at  any
time   that  an  Event  of  Default  has  occurred  and   is
continuing.  Any  conveyance  of  the  Premises  to   Tenant
pursuant to this Section 21 shall be "as-is" with respect to
the physical condition of the Premises.

     (e)  Except as hereinafter provided, Tenant may  assign
the  Refusal Right which arises under this Section  21.1  to
AAG  or an AAG Affiliate (as hereinafter defined) upon  (and
only  upon) satisfaction of all of the conditions set  forth
in  this  Section 21.1 (e); provided, however, that  if  the
Refusal  Right  is  assigned to  AAG  or  an  AAG  Affiliate
pursuant  to  this  Section 21.1 (e),  then  thereafter  the
Refusal  Right  may  not  be  subsequently  assigned  to  or
enforced  by  any  person  or entity  that  is  not  an  AAG
Affiliate.  In order for Tenant to assign the Refusal  Right
pursuant  to  this  Section 21.1 (e), it  must  satisfy  the
following  conditions, and if any such  conditions  are  not
satisfied,  then  any purported assignment  of  the  Refusal
Right  shall  be deemed void and of no force or effect:  (i)
Tenant  must  give Landlord thirty (30) days  prior  written
notice  of its intent to assign the Refusal Right,  together
with a certificate of a responsible officer of AAG that  the
assignee  is an AAG Affiliate and together with the  address
of  such Assignee to which Landlord is required to send  the
Sale  Notice  contemplated by Section 21.1(a)  hereof;  (ii)
Landlord  and Tenant shall enter into an amendment  to  this
Lease  which  deletes  Section  21  from  this  Lease  which
amendment shall be subject to the prior written approval  of
the  Landlord Lender, if any, and of the Tenant  Lender,  if
any; (iii) Landlord and Tenant shall execute an amendment to
any memorandum of lease (or similar instrument) which is  of
record  specifying that the Refusal Right no  longer  exists
under  this  Lease; (iv) Landlord and the  assignee  of  the
Refusal  Right  shall enter into a Right  of  First  Refusal
Agreement which provides that (A) the Refusal Right has been
assigned to AAG (or the applicable AAG Affiliate), (B)  such
Refusal Right shall be on the exact terms and subject to the
same  limitations as set forth in this Section 21.1,  except
that  AAG  (or the applicable AAG Affiliate) shall  have  no
further right to assign the Refusal Right as contemplated by
this  Section 21.1 (e), (C) such Refusal Right shall  expire
at  the end of the Term of this Lease or, if sooner, at such
time as this Lease may otherwise be terminated, and (D)  if,
at  any time that the Tenant under this Lease is not an  AAG
Affiliate, AAG (or the applicable AAG Affiliate which is the
assignee of the Refusal Right) does not exercise the Refusal
Right  with  respect to any proposed sale, then the  Refusal
Right  shall thereafter terminate and be of no further force
and  effect  provided,  that if such proposed  sale  is  not
consummated within one hundred eighty ( 180) days after  the
expiration  of the Refusal Period, the Refusal  Right  shall
not  terminate  as a result of the failure to  exercise  the
Refusal  Right with respect to such proposed sale); and  (v)
AAG shall execute and deliver to Landlord, an instrument, in
form reasonably satisfactory to Landlord, acknowledging that
AAG's Guaranty of the Tenant's obligations under this. Lease
shall  remain  in full force and effect notwithstanding  the
assignment  of the Refusal Right and the amendment  of  this
Lease  in connection therewith. As used herein, the  term  "
AAG  Affiliate" means any entity controlling, controlled  by
or   under   common  control  with  AAG  or   its   Members.
Notwithstanding  the foregoing, Tenant may  not  assign  the
Refusal Right at any time (A) after Landlord has delivered a
Sale  Notice under Section 21.1(a) hereof (unless and  until
the  Refusal Right is revived pursuant to Section  21.1  (b)
hereof). or ( B) after an Event of Default has occurred  and
is continuing under this Lease.

        22. TENANT'S RIGHT TO SUBSTITUTE THE PREMISES

     (a)  If  (x)  no Event of Default has occurred  and  is
continuing hereunder and (y) Tenant has determined that  the
Premises  are  not adequately profitable, then Tenant  shall
have the right, at any time and from time to time during the
Term of this Lease but after the second (2nd) anniversary of
the  Effective Date of this Lease, to exchange for the  then
Premises  another  property which Tenant, or  an  affiliate,
parent or subsidiary of Tenant operates as an Applebee's (or
other   name   permitted   under  this   Lease)   restaurant
(hereinafter  referred  to  as  the  "Exchange   Property");
provided,  that  the following conditions  shall  have  been
satisfied:

          (i)  Tenant shall notify Landlord in writing  (the
     "Substitution  Notice")  that  Tenant  has  elected  to
     exchange  the  Exchange Property  for  the  ~  Premises
     pursuant to this Section 22; and

          (ii)   Tenant   shall  deliver  to  Landlord   the
     following within ninety (90) days after the delivery of
     the  Substitution Notice but in any event not less than
     thirty  (30) days prior to the closing of the  exchange
     contemplated by this Section 22:

               (A)  The street address and legal description
          of the Exchange Property,

               (B)  An  AL T AI ACSM survey of the  Exchange
          Property  on  which the improvements  thereon  are
          shown  in  relation to the property  lines,  which
          survey    shall   comply   with   the   reasonable
          requirements  of  Landlord,  shall  not  show  any
          defects  or encumbrances which would render  title
          unmarketable or would detract from the ability  to
          operate the Exchange Property as a restaurant, and
          shall  be  certified to Landlord and each Landlord
          Lender  in  a  form  reasonably  satisfactory   to
          Landlord and each Landlord Lender (such survey  to
          be recertified at the closing of the exchange),

               (C)  An Appraisal of the Premises and of  the
          Exchange  Property  by a member  of  the  American
          Institute  of  Real Estate Appraisers,  reasonably
          approved  in  advance  by Landlord,  demonstrating
          that   as  of  a  date  after  the  date  of   the
          Substitution Notice, the fair market value of  the
          Exchange Property is equal to or greater than  the
          fair  market value of the Premises as of the  date
          of  the  Substitution Notice (without  taking  the
          existence  of  this  Lease into  consideration  in
          either  valuation),  which  appraisals  shall   be
          performed using substantially the same criteria as
          those  used  for  determining  the  value  of  the
          Premises  at the time Landlord acquired  the  then
          Premises,

               (D)  A  certificate from an officer of Tenant
          to  the effect that the Exchange Property complies
          with all material laws and legal requirements  and
          its  intended  use does not violate any  covenant,
          condition, restriction or agreement affecting  the
          Exchange Property,

               (E)  A  certificate from an officer of Tenant
          to  the effect that the Exchange Property and  the
          operation thereof will be in compliance with  this
          Lease at the time of the exchange,

               (F)  A  certificate from an officer of Tenant
          to   the   effect  that  all  reciprocal  easement
          agreements,   operating  agreements  and   similar
          agreements benefiting the Exchange Property are in
          full  force  and  effect and that Tenant  has  not
          given or received any notice of default and has no
          knowledge  of any default thereunder that  remains
          uncured,

               (G)   Evidence  (through  the   delivery   of
          certificates  or policies of insurance)  that  the
          Exchange  Property  is  covered  by  insurance  as
          required in this Lease with evidence that premiums
          due  thereon are paid in full, all as  more  fully
          set forth in Section 12.1 of this Lease,

               (H)   Evidence  reasonably  satisfactory   to
          Landlord  that  the improvements  located  on  the
          Exchange Property are not in a flood hazard area,

               (I)  A commitment to issue as of the date  of
          such exchange, an Owner's and a Mortgagee's Policy
          of  Title  Insurance  for the  Exchange  Property,
          containing exceptions not materially more  onerous
          than  those in the Landlord and Landlord  Lender's
          Policies  of  Title  Insurance  for  the  Property
          ("Existing Policy") and with endorsements  similar
          in  type  and  cost to those in effect  under  the
          Existing Policy,

               (J)  Tenant's agreement to pay all reasonable
          costs  in  connection with the exchange including,
          but  not  limited  to,  recording  charges,  stamp
          taxes, transaction and other transfer taxes, title
          insurance premiums, and reasonable legal  expenses
          of  Landlord and each Landlord Lender in effecting
          the   exchange  (but  excluding  any  charges  for
          obtaining  legal  opinions or amounts  payable  by
          Landlord  to  Landlord Lender other than  for  the
          reasonable  out-of-pocket  expenses  of   Landlord
          Lender  and excluding any income tax liability  of
          Landlord),

               (K)   A   true  and  correct  copy  of   each
          instrument   affecting  title  to   the   Exchange
          Property,  which  instruments  shall  not   impose
          obligations  or  liabilities on  Landlord  or  any
          Landlord Lender substantially more burdensome than
          those  imposed by the Permitted Encumbrances  with
          respect to the Premises,

               (L)  An  ASTM  standard Phase I Environmental
          Site  Assessment and, if recommended in said Phase
          I  Environmental  Site Assessment,  a  Preliminary
          Asbestos Survey of the Exchange Pr9perty and other
          appropriate testing (all not more than ninety (90)
          days  old at the date of the Substitution Notice),
          prepared  by  a  qualified reputable environmental
          engineering  firm  engaged  at  Tenant's  expense,
          showing that there are no recognized environmental
          conditions requiring further investigation  and/or
          remediation  under  any  applicable  Environmental
          Laws,

               (M) A certification by Tenant to Landlord and
          Lender  containing representations and  wa1Tanties
          with    respect    to   the   Exchange    Property
          substantially    comparable   (to    the    extent
          applicable) to those made by Tenant (or any of its
          affiliates)    to    Landlord   upon    Landlord's
          acquisition of the then Premises,

               (N) A certificate of occupancy, if available,
          relating to the Exchange Property,

               (0)  A  Tenant  Estoppel  Certificate  and  a
          Subordination,   Non-Disturbance  and   Attornment
          Agreement in the form attached as Exhibit E or  in
          such other form as may be reasonably acceptable to
          Tenant and any Landlord Lender,

               (P)  An  undertaking by Guarantor to  deliver
          upon  the  closing of the exchange a reaffirmation
          of the Guaranty with respect to the lease for such
          Exchange Property, and

               (Q)  Such  other  information  regarding  the
          Exchange Property or .the exchange transaction  as
          Landlord may reasonably request;

          (iii)  All documentation with respect to  the  re-
     lease  and  exchange,  including,  without  limitation,
     appropriate   amendments  to  this  Lease   (including,
     without   limitation,   amendments   to   reflect   the
     substitution of the Exchange Property for the  Premises
     hereunder)  or, if requested by Landlord, a  new  lease
     with  respect to the Exchange Property on  exactly  the
     same  executory  terms as this Lease (except  that  the
     term shall be for the then remaining Term hereunder and
     except  for any necessary state law changes), a special
     warranty deed (or local equivalent) conveying title  to
     the  Exchange  Property to Landlord,  a  bill  of  sale
     conveying any personal property related to the Exchange
     Property,  shall  be substantially  comparable  to  the
     documentation  utilized upon Landlord's acquisition  of
     the then Premises.

     (b)  Landlord shall cause each Landlord Lender to agree
that  it  will  secure the release of any  Mortgage  on  the
Premises granted by Landlord upon compliance by Tenant  with
the  foregoing  terms  and conditions;  provided  that  such
Landlord  Lender shall be entitled to a first Mortgage  lien
on Landlord's interest in the Exchange Property.

     (c) Tenant shall reasonably cooperate with Landlord  to
structure  any   exchange transaction  so  to  minimize  any
potential  income tax liability to Landlord  by   reason  of
such exchange.

     (d)  Closing  of  the exchange transaction  shall  take
place  on a date mutually acceptable to Landlord and  Tenant
at the office of Landlord or through a title company escrow.
At  the closing of the exchange of the Exchange Property for
the  Premises,  (i) Tenant shall provide evidence  that  the
Exchange  Property  is owned in fee simple  by  Tenant,  the
Guarantor  or an affiliate of Tenant and is not  subject  to
any  mortgages, deeds of trust, security agreements or other
instruments  securing  the repayment  of  any  debt  or  the
performance  of  any  obligation  or  undertaking,  or   any
mechanic's,  materialman's, judgment or similar liens;  (ii)
Landlord  shall  convey the Premises to  Tenant  by  special
warranty deed (or its local equivalent), AS IS, WHERE IS AND
WITH  ALL  FAULTS  AND  WITHOUT  ANY  WARRANTY,  EXPRESS  OR
IMPLIED, AS TO THE CONDITION OF THE PREMISES, free and clear
of  any liens created or consented to by Landlord other than
(A)  the  same  Permitted Encumbrances as set forth  in  the
Existing Policy or otherwise agreed to by Tenant, (B)  liens
or  encumbrances created or suffered by Tenant or arising by
reason of the failure of Tenant to observe or perform any of
the  terms,  covenants or agreements herein provided  to  be
observed  and  performed by Tenant, and (C) any installments
of  Premises  Taxes then affecting the Premises,  and  (iii)
Tenant  shall  convey the Exchange Property to  Landlord  by
Special Warranty Deed (or local equivalent) AS IS, WHERE  IS
AND  WITH ALL FAULTS, AND WITHOUT ANY WARRANTY , EXPRESS  OR
IMPLIED,  AS TO THE CONDITION OF THE PREMISES, but with  all
representations and warranties required to be made by Tenant
or  as  hereinabove provided, subject only to such exception
as  may  be  permitted in accordance with this  Section  22.
Further, at closing Tenant shall deliver to Landlord and any
Landlord Lender (I) the amendments to lease (or new  lease),
lease    guaranty,    Tenant   Estoppel   Certificate    and
Subordination, Non-Disturbance and Attornment Agreement, all
as  contemplated  by subparagraph (a) of this  Section  .22,
together   with   such  other  documents,  instruments   and
agreements contemplated by subparagraph (a) of this  Section
22  or  reasonably  requested by Landlord  to  evidence  the
exchange of the Exchange Property for the Premises  and  the
consummation   of  the  exchange  transaction   contemplated
hereby;  (2)  evidence reasonably satisfactory  to  Landlord
that  the fair market value of the Exchange Property as  set
forth  in Appraisal referenced in Section 22(a)(ii)(C) above
has  not  materially  reduced; (3)  an  opinion  of  counsel
stating  that  the lease guaranty has been duly  authorized,
executed  and  delivered by the guarantor and  is  a  valid,
binding and enforceable in accordance with its terms and (4)
an  opinion of counsel stating that the new lease  has  been
duly  authorized, executed and delivered by  Tenant  or  its
affiliate.  Further, Tenant shall pay all  reasonable  costs
and  expenses of closing the exchange transaction and  shall
perform all of its other obligations as contemplated by this
Section 22.

     (e)   Tenant's  obligations  under  this  Section   22,
including, without limitation, entering into a new lease  of
the  Exchange  Property, may be performed by  affiliates  of
Tenant.

                        23. GUARANTY

     23.1.  Simultaneously with the execution of this Lease,
Tenant shall cause to be delivered to Landlord a guaranty in
the  form  attached  hereto as Exhibit D  (the  "Guaranty"),
pursuant  to  which AAG shall guaranty Tenant's  obligations
hereunder.

                      24. MISCELLANEOUS

     24.1. LANDLORD'S INTERESTS.

     (a)  The term "Landlord" as used herein shall mean only
the  owner  or owners, at the time in question; of  the  fee
title  to  the  Premises. In the event of an  assignment  or
transfer  of this Lease by Landlord for other than  security
purposes, Landlord shall cause its assignee or transferee to
assume  the  provisions  of this Lease  and  Landlord  shall
deliver notice of such assignment or transfer and a copy  of
the effective instrument of transfer to Tenant. Tenant shall
be  entitled to continue to pay rent and give all notices to
Landlord  until  Tenant  has  received  the  foregoing  from
Landlord.  From  and after a sale of the Premises,  Landlord
shall  be released from all liability toward Tenant  arising
from  this Lease because of any act, occurrence or  omission
of  Landlord's  successors occurring after the  transfer  of
Landlord's  interest  in  this  Lease,  provided  Landlord's
purchaser  or  assignee expressly assumes Landlord's  duties
and  covenants  under this Lease. Nothing  herein  shall  be
deemed  to  relieve Landlord of any liability for its  acts,
omissions  or obligations occurring or accruing  up  to  and
including the date of such transfer.

     (b)   Anything   contained  herein  to   the   contrary
notwithstanding,  any claim based on or in  respect  of  any
liability  of  Landlord under this Lease shall  be  enforced
only  against Landlord's interest in the Premises and  shall
not be enforced against Landlord individually or personally.

     (c)  Landlord shall have the right to sell,  assign  or
transfer  its  interest in the Premises  without  any  prior
notice  to or consent of Tenant, subject to compliance  with
the provision of Section 21 of this Lease, if applicable.

     24.2  SEVERABILITY .If any provision of this  Lease  or
the  application thereof to any person or circumstance shall
be invalid or unenforceable under applicable law, such event
shall  not affect, impair or render invalid or unenforceable
the  remainder  or any other provision of  this  Lease,  nor
shall  11it affect the application of any provision of  this
Lease to other persons or circumstances.
     24.3  ENTIRE  AGREEMENT. This Lease  and  the  Exhibits
attached  hereto  set  forth the  entire  agreement  between
Landlord and Tenant concerning the Premises and there is  no
other  agreement, oral or written, between them  other  than
this  Lease. This Lease supersedes and revokes all  previous
negotiations,  arrangements, letters of  intent,  offers  to
lease,  lease  proposals and information  conveyed,  whether
orally   or  in  writing,  between  the  parties  or   their
respective representatives.

     24.4 TIME. Time is of the essence of this Lease and the
performance of all obligations under this Lease.

     24.5  BINDING EFFECT. This Lease shall be binding  upon
and  inure  to  the  benefit of Landlord, Tenant  and  their
respective successors and assigns.

     24.6  DEFAULT RATE. All amounts owing to one party from
the other party under this Lease for which a date of payment
is  not  expressly fixed shall be paid within ten (10)  days
after  the  date  the party to whom such amount  is  payable
delivers  to  the  other  party  appropriate  statements  of
account.  As  used in this Lease, the words  "Default  Rate"
shall  mean  interest at the rate of four percent  (4%)  per
annum  in  excess  of the "prime rate"  from  time  to  time
announced  in The Wall Street Journal or if such publication
ceases  to  publish  a prime rate then  as  announced  by  a
comparable  publication. The Default Rate of interest  shall
be  computed from the date on which any payment is due  from
either  party  to the other through and including  the  date
paid.

     24.7  FORCE MAJEURE. Neither Landlord nor Tenant  shall
be  considered in default of any of the terms, covenants and
conditions of this Lease on its part to be performed, if  it
fails  to  timely perform same and such failure  is  due  in
whole  or  in  part  to any strike, lockout,  labor  trouble
(whether  legal  or  illegal), civil  disorder,  restrictive
governmental laws and regulations riots, insurrections, war,
accidents, casualties, acts of God, acts caused directly  or
indirectly by the other party hereto (or such party's agent,
employees  or  invitees)  or  any  other  cause  beyond  its
control. A party shall be entitled to an extension  of  time
equal  to  one  (1) day for each day of delay due  to  force
majeure.  The  foregoing shall not apply to,  excuse  or  be
invoked to justify any delay in the payment of Rent  or  any
other  sum of money due from one party payable to the  other
party.

     24.8  NO  WAIVER. No provision of this Lease  shall  be
deemed  to  have  been waived by either  party  unless  such
waiver is in writing signed by such party.

     24.9  CAPTIONS. The captions and headings in this Lease
are  inserted  only as a matter of convenience  and  do  not
define,  limit, expand or describe the scope  or  intent  of
such provisions.

     24.10  SURVIVAL. The following obligations of  Landlord
and   Tenant   shall  survive  the  expiration  or   earlier
termination  of this Lease: (a) any obligation permitted  in
this  Lease to be performed after the end of the  Term;  (b)
any  obligation  not reasonably susceptible  of  performance
prior  to  the end of the Term; and (c) any other obligation
expressly stated to survive termination.

     24.11  APPLICABLE LAW. This Lease and  the  rights  and
obligations  of  Landlord  and  Tenant  hereunder  shall  be
governed  by and construed in accordance with the  laws  and
judicial  decisions  in effect in the  State  in  which  the
Premises is located.

     24.12 AMENDMENT. No amendment to the provisions of this
Lease  shall  be  effective or enforceable  unless  made  in
writing and signed by Landlord and Tenant.

     24.13  Approvals; Consents. Every approval and  consent
provided for in this Lease shall be made in writing.

     24.14  RIGHTS  AND  REMEDIES. All rights  and  remedies
granted  or  referred to in this Lease  shall  be  distinct,
separate  and  cumulative and none shall exclude  any  other
right  or remedy of either party set forth in this Lease  or
available at law or in equity.

     24.15  HOLDOVER.  If Tenant retains possession  of  the
Premises  after  the  expiration of  the  Term  without  the
express  written consent of Landlord, the monthly Base  Rent
payable  by  Tenant  for each month of the  period  of  such
holding over shall be an amount equal to one hundred twenty-
five  percent  (125%)  of the monthly Base  Rent  in  effect
immediately   preceding  such  holdover  period;   provided,
however, that no payment of such increased monthly  Rent  by
Tenant  shall be deemed to extend or renew the Term. In  the
event  that  Landlord  gives written consent  to  Tenant  to
remain in occupancy beyond the expiration of the Term,  such
occupancy  shall be construed to be a renewal of this  Lease
for  a  month-to-month tenancy upon all  of  the  terms  and
conditions  set  forth in this Lease,  except  that,  unless
otherwise provided in Landlord's consent, monthly Base  Rent
payable  by  Tenant for any such period of holdover  tenancy
shall be at the rate equal to one hundred percent (100%)  of
the  monthly Base Rent in effect immediately preceding  such
holdover period.

     24.16   MEMORANDUM.  Landlord  and  Tenant   agree   to
complete, execute, deliver and record in the county in which
the  Premises  are located a short form memorandum  of  this
Lease  substantially  in  the form  and  substance  attached
hereto  as  Exhibit C ("Memorandum"). Tenant shall  pay  all
fees, taxes, costs ands expenses to record the Memorandum.

     24.17  NO  THIRD-PARTY RIGHTS. The terms and provisions
of this Lease shall-not be deemed to confer any rights upon,
nor  obligate  Landlord or Tenant to, any person  or  entity
other  than  the  parties hereto, except  for  any  Landlord
Lender,  Tenant Lender, TE Lender and Franchisor if  and  to
the extent specifically provided herein.

     24.18  LANDLORD ACCESS. Upon not less than  twenty-four
(24)  hours'  prior  notice  (except  in  the  case  of   an
emergency),  Landlord  may enter upon  the  Premises  during
Tenant's  non-peak business hours for purposes of inspection
and  showing  the  Premises  to  prospective  purchasers  or
lenders.  When entering the Premises, Landlord, its  agents,
employees  and/or contractors (a) shall identify  themselves
to   Tenant's   personnel  immediately  upon  entering   the
Premises,  and  (b)  shall not, in any  way,  materially  or
unreasonably  affect, interrupt or interfere  with  Tenant's
use, business or operations on the Premises or obstruct  the
visibility of or access to the Premises.

     24.19 DUE AUTHORITY.

     (a)  Landlord  represents and  warrants  to  Tenant  as
follows:  (i)  that Landlord is a limited liability  company
created,  validly  existing  and  in  good  standing   under
Delaware  law; (ii) that Landlord has full right, power  and
authority to enter into and to perform its obligations under
this  Lease  and that no consent or approval  of  any  third
parties  is  necessary in order to do so or  that  all  such
consents  and approvals have been obtained; and  (iii)  that
this Lease, when signed- by Landlord, is a legal, valid  and
binding  obligation  of Landlord enforceable  in  accordance
with its terms.

     (b)  Tenant  represents  and warrants  to  Landlord  as
follows:  (i)  that  Tenant is a limited  liability  company
created,  validly  existing  and  in  good'  standing  under
Delaware  law;  (ii) that Tenant has full right,  power  and
authority to enter into and to perform its obligations under
this  Lease  and  that,  except  as  otherwise  specifically
provided herein no consent or approval of any third  parties
is  necessary in order to do so; and (iii) that this  Lease,
when  signed  by  Tenant,  is a  legal,  valid  and  binding
obligation  of  Tenant enforceable in  accordance  with  its
terms.

     24.20  RELATIONSHIP  OF PARTIES. Nothing  contained  in
this  Lease  shall be deemed to constitute a partnership  or
joint  venture between Landlord and Tenant. The relationship
of  Landlord and Tenant shall only be deemed to  be  one  of
landlord and tenant.

     24.21 Preparation and Signing of Lease. This Lease  has
been  negotiated and reviewed by Landlord, Tenant and  their
respective  attorneys and/or professional advisors,  all  of
whom intend and believe this Lease to be the product of  all
of   their  joint  efforts,  that  it  contains  the  entire
agreement between Landlord and Tenant and as such should not
and  shall  not be interpreted or construed in favor  of  or
against  either  Landlord or Tenant merely  because  of  the
efforts  of one party or the other in preparing this  Lease.
The  submission  of this Lease for review or execution  does
not  constitute  a reservation of or option for  the  rights
conferred herein. This Lease shall become effective only  if
and when executed and delivered by both Landlord and Tenant.

     24.22  BROKER.  Landlord and Tenant  each  warrant  and
represent to the other that it has not dealt with  any  real
estate broker, salesperson or finder in connection with this
Lease,  except for CB Richard Ellis, Inc. ("Broker"). Tenant
shall  be responsible for the payment of any fee, commission
or  other  compensation due to Broker  on  account  of  this
transaction  pursuant to the terms of a  separate  agreement
between  Landlord  and  Broker and Tenant  shall  indemnify.
defend and hold Landlord harmless from and against all  such
fees, commissions and other compensation to Broker. Landlord
and  Tenant  each agree to indemnify, defend  and  hold  the
other   party  harmless  from  and  against  any   and   all
liabilities and claims for commissions and fees arising  out
of  a  breach of its representation and warranty  set  forth
herein.

     24.23   SEPARABILITY.  Each  and  every  covenant   and
agreement of Tenant contained in this Lease is, and shall be
construed  to  be, a separate and independent  covenant  and
agreement,  and the breach of any covenant or  agreement  by
Landlord  shall  not discharge or relieve  Tenant  from  its
obligation to perform the same.

     24.24  MULTIPLE COUNTERPARTS. To facilitate  execution,
this Lease may be executed in as many counterparts as may be
convenient or required. It shall not be necessary  that  the
signature or acknowledgment of, or on behalf of, each party,
or  that  the signature of all persons required to bind  any
party,  or the acknowledgment of such party, appear on  each
counterpart. All counterparts shall collectively  constitute
a  single  instrument. It shall hot be necessary  in  making
proof  of this Lease to produce or account for more  than  a
single counterpart containing the respective signatures  of,
or on behalf of, and the respective acknowledgments of, each
of  the parties hereto. Any signature or acknowledgment page
to  any  counterpart may be detached from  such  counterpart
without  impairing  the legal effect of  the  signatures  or
acknowledgments thereon and thereafter attached  to  another
counterpart identical thereto except having attached  to  it
additional signature or acknowledgment pages.

     24.25  BUSINESS DAYS. All references to "business days"
contained  herein are references to normal working  business
days,  i.e.,  Monday  through Friday of each  calendar  week
exclusive  of  federal and national bank  holidays.  In  the
event that any event hereunder is to occur, or a time period
is  to  expire, on a date which is not a business day,  such
event  shall occur or such time period shall expire  on  the
next succeeding business day.

     24.26  INTERPRETATION. When the context in which  words
are  used  in this Lease indicates that such is the  intent,
words  in  the singular number shall include the plural  and
vice  versa, and words in the masculine gender shall include
the  feminine  and neuter genders and vice  versa.  Further,
references to "person" or "persons" in this Lease shall mean
and   include   any  natural  person  and  any  corporation,
partnership, joint venture, limited liability company, trust
or  other  entity  whatsoever.  As  used  herein,  the  term
"including" shall mean "including, but not limited to".

     24.27  NO MERGER OF TITLE. There shall be no merger  of
this Lease nor of the leasehold estate created by this Lease
with  the  fee estate in or ownership of any of the Premises
by  reason  of  the fact that the same person,  corporation,
firm or other entity may acquire or hold or own, directly or
indirectly,  (a) this Lease or the leasehold estate  created
by  this  Lease  or any interest in this Lease  or  in  such
leasehold estate and (b) the fee estate or ownership of  any
of  the  Premises  or  any interest in such  fee  estate  or
ownership. No such merger shall occur unless and  until  all
persons,  corporations, firms and other entities having  any
interest  in (i) this Lease or the leasehold estate  created
by this Lease and (ii) the fee estate in or ownership of the
Premises or any part thereof sought to be merged shall  join
in a written instrument effecting such merger and shall duly
record the same.

     24.28  Financial  Reporting. During the  Term  of  this
Lease,  Tenant  will  deliver or cause to  be  delivered  to
Landlord   the  following  financial  information   at   the
following times:

          (a)  During  any twelve (12) month period  and  at
     Landlord's  request but in no event more that  two  (2)
     times  per  year, unless such request  is  required  in
     order  for  Landlord to obtain financing  and  in  such
     event,  when  reasonably necessary, within thirty  (30)
     days  of  said  request, the most recent quarterly  and
     year-to-date consolidated balance sheets and income and
     cash flow statements for the Tenant and for AAG and the
     accompanying unit level profit and loss statements  for
     each Premises for that period; and

          (b) within one hundred and twenty (120) days after
     the  end of each fiscal year of Tenant and AAG,  annual
     consolidated  balance sheets and income and  cash  flow
     statements  for  the  Tenant  and  for  AAG   for   the
     immediately  preceding fiscal year, all  in  reasonable
     detail   and  prepared  in  accordance  with  generally
     accepted  accounting principles, consistently  applied,
     including  unit  level profit and loss  statements  for
     that period for the Premises.

     The  annual  financial  statements  which  are  to   be
delivered  as  provided above shall have been  prepared  and
certified by an independent certified public accountant. All
other financial statements to be delivered pursuant to  this
Section  24.28 shall be un-audited and certified to Landlord
to be reasonably true and correct by the Tenant's controller
or  other  officer.  Landlord shall  have  the  right,  upon
reasonable advance notice, to meet with appropriate officers
of  Tenant  and AAG to discuss their respective affairs  and
finances  and  the financial information delivered  pursuant
hereto.

IN  WITNESS WHEREOF. Landlord and Tenant have executed  this
Lease as of the day and year first above written.

     LANDLORD:                          PRECO II CRIC LLC

  Date: October 21, 2003               By:/s/ Marjorie Palace
                                              Marjorie Palace
                                              Authorized Person

     TENANT:                            APPLE OHIO LLC
  Date:  October 21, 2003              By: /s/ Lorin Cortina
                                               Lorin M Cortina
                                               Executive  Vice
                                               President

                      ACKNOWLEDGEMENTS

STATE OF ILLINOIS             )
                         )SS
COUNTY OF CLARK               )

     I Belinda Loza, a Notary Public in and for said County,
in  the  State  aforesaid, DO HEREBY CERTIFY, that  Marjorie
Palace personally known to me to be the Authorized Person of
PRECO  II  CRIC  LLC, a Delaware limited  liability  company
("Company"),  and  personally known to me  to  be  the  same
person  whose name is subscribed to the foregoing instrument
as  such  Marjorie Palace, appeared before me  this  day  in
person  and  acknowledged that she signed and delivered  the
said  instrument as her own free and voluntary act,  and  as
the free and voluntary act and deed of said Company, for the
uses and purposes therein set forth.

      GIVEN under my hand and Notarial Seal this 22nd day of
October, 2003.

                                   /a/ Belinda Loza
                                      Notary Public
[notary seal]

STATE OF ILLINOIS             )
                         )SS
COUNTY OF CLARK               )

     I Belinda Loza, a Notary Public in and for said County,
in  the  State  aforesaid, DO HEREBY CERTIFY, that  Lorin  M
Cortina,  personally known to me to be  the  Executive  Vice
President  of  APPLE OHIO LLC, a Delaware limited  liability
company  ("Company"), and personally known to me to  be  the
same  person  whose  name  is subscribed  to  the  foregoing
instrument as such Executive Vice President, appeared before
me  this  day in person and acknowledged that he signed  and
delivered  the said instrument as his own free and voluntary
act,  and  as  the free and voluntary act and deed  of  said
Company, for the uses and purposes therein set forth.

      GIVEN under my hand and Notarial Seal this 22nd day of
October, 2003.

                                   /a/ Belinda Loza
                                       Notary Public
[notary seal]

                            EXHIBIT A

                        LEGAL DESCRIPTION

SITUATED IN THE CITY OF STOW, COUNTY OF SUMMIT AND STATE OF  OHIO
AND  KNOWN  AS BEING PART OF LOT 2 OF THE ORIGINAL STOW  TOWNSHIP
AND MORE FULLY DESCRIBED AS FOLLOWS:

BEGINNING  AT  A POINT AT THE SOUTHWEST CORNER OF  SAID  LOT  29;
THENCE NORTH 04 DEG. 19' 45" WEST ALONG THE WESTERLY LINE OF SAID
LOT  29  A  DISTANCE OF 1640.28 FEET TO A POINT; THENCE NORTH  85
DEG.  40'  15" EAST A DISTANCE OF 283.01 FEET TO A POINT;  THENCE
NORTH  04 DEG. 19' 45" WEST A DISTANCE OF 196.18 FEET TO A POINT;
THENCE  SOUTH  82 DEG. 17' 36" EAST ALONG THE SOUTHERLY  LINE  OF
KENT  ROAD (S.R. 59) A DISTANCE OF 42.96 FEET TO A POINT;  THENCE
SOUTH 85 DEG. 05' 10" EAST ALONG THE SOUTHERLY LINE OF SAID  KENT
ROAD  A DISTANCE OF 491.88 FEET TO A POINT; THENCE SOUTH 81  DEG.
28'  35"  EAST  ALONG  THE SOUTHERLY LINE OF  SAID  KENT  ROAD  A
DISTANCE OF 144.50 FEET TO A POINT; THENCE SOUTH 82 DEG. 03'  43"
EAST  ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A  DISTANCE  OF
37.88  FEET TO A P.K. NAIL, WHICH IS THE TRUE PLACE OF  BEGINNING
FOR  THE PARCEL OF LAND HEREIN DESCRIBED; THENCE CONTINUING SOUTH
82 DEG. 03' 43" EAST ALONG THE SOUTHERLY LINE OF SAID KENT ROAD A
DISTANCE OF 73.30 FEET TO A 5/8" CAPPED REBAR (T.E. GIFFELS 5960)
SET  AT  A  POINT OF CURVATURE; THENCE ALONG THE ARC OF A  CIRCLE
CURVING TO THE LEFT HAVING A CENTRAL ANGLE OF 01 DEG. 18'  12"  A
RADIUS OF 2822.04 FEET, A TANGENT OF 32.10 FEET, A CHORD OF 64.19
FEET,  A  CHORD BEARING SOUTH 81 DEG. 10' 12" EAST,  AND  AN  ARC
LENGTH  OF 64.19 FEET TO A DRILL HOLE SET; THENCE SOUTH  09  DEG.
16'  55" WEST A DISTANCE OF 1.58 FEET TO A 5/8" CAPPED REBAR  (T.
E. GIFFELS 5960) SET; THENCE SOUTH 78 DEG. 37' 30" EAST ALONG THE
SOUTHERLY  LINE OF SAID KENT ROAD A DISTANCE OF 12.47 FEET  TO  A
5/8" REBAR FOUND; THENCE NORTH 04 DEG. 47' 30" WEST A DISTANCE OF
1.04  FEET TO A DRILL HOLE SET; THENCE SOUTH 78 DEG. 37' 30" EAST
ALONG  THE SOUTHERLY LINE OF SAID KENT ROAD A DISTANCE  OF  60.08
FEET TO A POINT; THENCE SOUTH 04 DEG. 07' 15" EAST A DISTANCE  OF
237.40  FEET  TO  A  5/8" CAPPED REBAR (T.E. GIFFELS  5960)  SET;
THENCE SOUTH 85 DEG. 52' 45" WEST A DISTANCE OF 207.91 FEET TO  A
5/8"  CAPPED REBAR (T.E. GIFFELS 5960) SET; THENCE NORTH 03  DEG.
17'  38" WEST A DISTANCE OF 287.10 FEET TO A P.K. NAIL, WHICH  IS
THE TRUE PLACE OF BEGINNING, AND CONTAINING 1.2470 ACRES OF LAND,
MORE OR LESS, AS SHOWN ON A PLAT OF SURVEY DATED JUNE 17, 1996 BY
GARY  R.  ROUSE,  REGISTERED  SURVEYOR  WITH  GBC  ENGINEERS  AND
ARCHITECTS, INC.

TOGETHER WITH THE EASEMENT RIGHTS CONTAINED IN THE OPERATION  AND
EASEMENT   AGREEMENT  BETWEEN  DAYTON  HUDSON   CORPORATION   AND
DEVELOPERS DIVERSIFIED REALTY CORPORATION FILED JULY 21, 1994  IN
VOLUME OR 1721 PAGE 5 SUMMIT COUNTY RECORDS, AS AMENDED BY  FIRST
AMENDMENT  FILED  APRIL 18, 1996 IN VOLUME  OR  2156,  PAGE  1242
SUMMIT COUNTY RECORDS.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]