Document:

ex101to8k05733_10152009.htm

    Exhibit 10.1

     

    
      MANAGEMENT SERVICES
AGREEMENT

       

      AGREEMENT,
effective as of September 1, 2009, by and between SP Corporate Services LLC (“SP
Corporate”), a Delaware limited liability company, having an office at 590
Madison Avenue, 32nd Floor, New York, New York 10022, and Del Global
Technologies Corp., a New York corporation (the “Company”), having an office at
50B N. Gary Avenue, Roselle, Illinois 60172.

       

      W I T N E
S S E T H:

       

      WHEREAS,
the Company desires to have SP Corporate furnish certain services to the
Company, as set forth on Exhibit A attached
hereto as it may be amended from time to time pursuant to the terms hereof (the
“Services”), and SP Corporate has agreed to furnish Services, pursuant to the
terms and conditions hereinafter set forth; and

       

      WHEREAS,
this Agreement has been approved by the Audit Committee of the Board of
Directors of the Company (the “Board”) and recommended Board approval, and a
majority of the disinterested directors of the Company has voted to approve this
Agreement.

       

      NOW,
THEREFORE, the parties hereto, intending to be legally bound, hereby agree as
follows:

       

      Section
1.                      Engagement of SP
Corporate.

       

      1.01.           During
the term of this Agreement, SP Corporate shall provide to the Company such
Services, as more fully described and defined on Exhibit A, as may be
necessary or desirable or as may be reasonably requested or required, in
connection with the business, operations and affairs, both ordinary and
extraordinary, of the Company and its subsidiaries and affiliates.

       

      In
performing Services, SP Corporate shall be subject to the supervision and
control of the disinterested directors of the Company.  In no event
shall SP Corporate incur an obligation or enter into any transaction on behalf
of the Company involving in excess of $50,000 without the prior approval of the
disinterested directors of the Company.

       

      1.02.           While
the amount of time and personnel required for performance by SP Corporate
hereunder will necessarily vary depending upon the nature and type of Services,
SP Corporate shall devote such time and effort and make available such personnel
as may from time to time reasonably be required for the performance of Services
hereunder.  Notwithstanding the foregoing, SP Corporate shall make
John J. Quicke available to act as, and he shall devote such time and effort as
is necessary to fulfill the statutory and fiduciary duties of, the President and
Chief Executive Officer of the Company until such time as otherwise instructed
or removed by the board of directors of the Company or the resignation of John
J. Quicke in any of the capacities.

       

      1.03.           Exhibit A may be
amended from time to time to provide for additional Services, the elimination of
certain Services, increases or decreases to the compensation paid hereunder, or
other changes, upon the mutual agreement of the parties hereto.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
2.                      Term.

       

      This
Agreement shall commence effective as of September 1, 2009, and shall terminate
immediately upon written notice given to the other party or immediately upon the
death of John J. Quicke.  The Company shall have the right during (but
not after) the term of this Agreement, but not the obligation, to obtain and
maintain one or more policies of life insurance on the life of John J.
Quicke at the Company’s sole cost and expense, and John J. Quicke agrees to
cooperate fully and execute such reasonable documents as the Company shall
request in connection with such insurance.

       

      Section
3.                      Payments to SP
Corporate.

       

      3.01.           In
consideration of Services furnished by SP Corporate hereunder, the Company shall
pay to SP Corporate a fixed monthly fee as set forth in Section 3.02, which
shall be adjustable annually upon mutual agreement by the parties or at other
times upon the amendment of Exhibit A pursuant to
Section 1.03.  In addition, the Company shall promptly reimburse
SP Corporate and John J. Quicke for certain expenses, including legal expenses,
as well as all reasonable and necessary business expenses, incurred on behalf of
the Company.

       

      3.02.           The
Company shall pay SP Corporate a fixed monthly fee in cash in amount set forth
on Exhibit A in
advance on the first day of each month.

       

      Section
4.                      Limitation on
Liability.

       

      To the
fullest extent permitted by law and as consistent with the Company’s Amended and
Restated Bylaws and Certificate of Incorporation, as may be amended from time to
time (the “Company's Charter Documents”), SP Corporate shall not be liable to
the Company, any affiliate thereof or any third party for any losses, claims,
damages, liabilities, penalties, obligations or expenses, including reasonable
legal fees and expenses, of any kind or nature whatsoever due to any act or
omission in connection with the rendering of Services hereunder, unless that act
or omission constitutes gross negligence, willful misconduct or
fraud.  Further, SP Corporate shall reasonably rely on information
provided to it about the Company, if any, that is provided by the Company or the
Company’s affiliates, employees or agents.  In no event shall SP
Corporate be liable for any error or inaccuracy of any report, computation or
other information or document produced in accordance with this Agreement, for
whose accuracy the Company assumes all responsibility, unless resulting from the
gross negligence or willful misconduct of SP Corporate or SP Corporate’s
officers, directors, employees or agents.

       

      Section
5.                      Indemnity and D&O
Insurance.

       

      To the
fullest extent permitted by law and as consistent with the Company's Charter
Documents, the Company shall defend, indemnify, save and hold harmless SP
Corporate and John J. Quicke from and against any claims, liabilities, damages,
losses, costs or expenses, including amounts paid in satisfaction of judgments,
in compromises and settlements, as fines and penalties and legal or other costs
and reasonable expenses of investigating or defending against any claim or
alleged claim of any nature whatsoever resulting from SP Corporate’s or John J.
Quicke’s activities or services under this Agreement (a “Claim”), except to the
extent occasioned by the gross negligence or willful misconduct of SP Corporate,
John J. Quicke or SP Corporate’s officers, directors, employees or
agents.  At the written request of SP Corporate and/or John J. Quicke,
the Company will advance to them the legal or other costs and reasonable
expenses of investigating or defending against any Claim in advance of the final
disposition of such Claim.  To the fullest extent permitted by law and
as consistent with the Company’s Charter Documents, the Company’s obligation to
indemnify SP Corporate hereunder shall extend to and inure to the benefit of SP
Corporate’s officers, directors, members, employees, affiliates and
consultants.  If SP Corporate should reasonably determine its
interests are or may be adverse to the interests of the Company, SP Corporate
may retain its own counsel in connection with such claim or alleged claim or
action, in which case the Company shall be liable, to the extent permitted under
this Section 5, to SP Corporate for any reasonable and documented legal,
accounting or other directly related fees and expenses incurred by SP Corporate
in connection with its investigating or defending such claim or alleged claim or
action.  In addition, at all times during which John. J. Quicke is
acting as non-employee CEO and/or President of the Company, the Company shall
cause John J. Quicke to be covered by a D&O insurance policy issued by a
reputable D&O insurance carrier with coverages and terms no less favorable
than those contained in the Company’s current D&O insurance
policy.  In addition, neither SP Corporate nor any of its officers,
directors, members, employees, affiliates or consultants (including John J.
Quicke) shall be liable to the Company or any third party for any special,
consequential or exemplary damages (including lost or anticipated revenues or
profits relating to the same) arising from any claim relating to this Agreement
or any of the services provided hereunder, whether such claim is based on
warranty, contract, tort (including negligence or strict liability) or
otherwise, even if an authorized representative of SP Corporate is advised of
the possibility or likelihood of the same.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Section
6.                      Confidential
Information.

       

      SP
Corporate shall not at any time during or following the termination or
expiration for any reason of this Agreement, directly or indirectly, disclose,
publish or divulge to any person (except where necessary in connection with the
furnishing of Services under this Agreement), appropriate or use, or cause or
permit any other person to appropriate or use, any of the Company’s inventions,
discoveries, improvements, trade secrets, copyrights or other proprietary,
secret or confidential information not then publicly available.

       

      Section
7.                      Non-Exclusive Arrangement;
Conflicts of Interest.

       

      7.01           The
Company acknowledges that SP Corporate and its Affiliated Companies (as defined
below) may from time to time enter into agreements similar to this Agreement
with other companies pursuant to which SP Corporate may agree to provide
services similar in nature to the Services being provided
hereunder.  The Company understands that the person or persons
providing the Services hereunder may also provide similar or additional services
to other companies, including as officers and directors of such
companies.  In addition, to the extent business opportunities arise,
the Company acknowledges that SP Corporate will be under no obligation to
present such opportunity to the Company, and SP Corporate may, in its sole
discretion, present any such opportunity to whatever company it so chooses, or
to none at all; provided, however, nothing
contained herein shall affect or otherwise limit the fiduciary obligations of
the officers and directors of the Company.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.02           The
Company, SP Corporate and their respective Affiliated Companies (as defined
below) recognize and acknowledge that as a result of SP Corporate providing the
Services pursuant to this Agreement the potential for conflicts of interest
exist between and/or among SP Corporate, the Company, Affiliated Companies of SP
Corporate and the Company and the respective officers and directors of SP
Corporate and the Company, including but not limited to (i) that an Affiliated
Company of SP Corporate may be a majority or significant stockholder of the
Company, (ii) that directors, officers, members and/or employees of SP Corporate
or of Affiliated Companies of SP Corporate may serve as directors and/or
officers of the Company, (iii) that SP Corporate and Affiliated Companies
thereof may engage and are expected to continue to engage in the same, similar
or related lines of business as those in which the Company, directly or
indirectly, may engage and/or other business activities that overlap with or
compete with those in which the Company, directly or indirectly, may engage,
(iv) that SP Corporate and Affiliated Companies thereof may have an interest in
the same areas of corporate opportunity as the Company and Affiliated Companies
thereof, and (v) that SP Corporate and Affiliated Companies thereof may engage
in material business transactions with the Company and Affiliated Companies
thereof, including (without limitation) providing Services to or being a
significant supplier of the Company and Affiliated Companies
thereof.  The Company further recognizes, acknowledges and agrees that
any such conflicts of interest shall be resolved by SP Corporate in its sole
discretion.

       

      7.03           For
purposes of this Agreement, “Affiliated Companies” shall mean in respect of SP
Corporate any entity which is controlled by SP Corporate, controls SP Corporate
or is under common control with SP Corporate (other than the Company and any
entity that is controlled by the Company) and in respect of the Company shall
mean any entity controlled by the Company.

       

      7.04.           The
Company represents and warrants that the Audit Committee of the Board has
approved this Agreement and recommended Board approval, and a majority of the
disinterested directors of the Company has voted to approve this
Agreement.

       

      Section
8.                      General.

       

      8.01.           This
Agreement constitutes the entire agreement between the parties hereto pertaining
to the subject matter hereof and supersedes all prior representations and
agreements, whether oral or written, and cannot be modified, changed, waived or
terminated except by a writing signed by both of the parties
hereto.  No course of conduct or trade custom or usage shall in any
way be used to explain, modify, amend or otherwise construe this
Agreement.

       

      8.02.           All
notices, requests, demands and other communications required or permitted under
this Agreement shall be in writing and shall be deemed to have been duly given
if personally delivered, sent by nationally recognized overnight carrier, one
day after being sent, or mailed by first class registered or certified mail,
return receipt requested, five days after being sent.

       

      8.03.           This
Agreement shall be construed under the laws of the State of New York and the
parties hereby submit to the personal jurisdiction of any federal or state court
located therein, and agree that jurisdiction shall rest exclusively therein,
without giving effect to the principles of conflict of laws.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      8.04.           This
Agreement may not be assigned by any party without the prior written consent of
the other parties to this Agreement.

       

      8.05.           This
Agreement may be executed in two or more counterparts, each of which shall be
deemed to be an original but all of which together shall constitute one and the
same instrument.

       

      8.06.           Sections
4, 5 and 6 shall survive any expiration or termination of this
Agreement.

       

      8.07.           Except
as specifically provided herein, none of the parties shall act or represent or
hold itself out as having authority to act as an agent or partner of any other
party, or in any way bind or commit any other party to any
obligations.  Nothing contained in this Agreement shall be construed
as creating a partnership, joint venture, agency, trust or other association of
any kind, each party being individually responsible for its obligations set
forth in this Agreement.  Neither party shall be responsible for the
compensation, the withholding of taxes, workers compensation, or any other
employer liability for the employees and agents of the other
party.  Without limiting the generality of the foregoing, the parties
acknowledge and agree that SP Corporate is an independent contractor and that
neither John J. Quicke nor SP Corporate is an employee of the
Company.  SP Corporate or an Affiliated Company of SP Corporate shall
timely withhold and pay all taxes and file all reports required by applicable
law to be withheld, paid and filed for John J. Quicke.

       

      8.08.           John
J. Quicke joins herein solely to acknowledge and agree to the terms hereof
relating specifically to him and to specifically acknowledge and agree that he
is not an employee of the Company and is not eligible for and has no right to
receive any compensation or benefits from the Company or to participate in any
employee benefit plans or programs available to the employees of the Company,
including welfare and retirement benefits.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the date
first above written.

       

      
        	 
      	
                SP
      CORPORATE SERVICES LLC

              
	 
      	 
      
	 
      	
                By:

              	/s/
      Sanford Antignas
	 
      	 
      	
                Name:

              	Sanford
      Antignas
	 
      	 
      	
                Title:

              	Chief
      Operating Officer
	 
      	 
      
	 
      	
                DEL
      GLOBAL TECHNOLOGIES CORP.

              
	 
      	 
      
	 
      	
                By:

              	/s/
      Mark A. Zorko
	 
      	 
      	
                Name:

              	Mark
      A. Zorko
	 
      	 
      	
                Title:

              	Chief
      Financial Officer
	 
      	 
      
	 
      	 
      
	 
      	
                
                  /s/
      John J. Quicke

                

              
	 
      	
                John
      J. Quicke, individually and solely for the purposes specified in Section
      8.08 above

              

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
A

       

      The “Services” shall be limited to the
following:

       

      
        	
                 
      

              	
                1.

              	
                Provide
      the non-exclusive services of John J. Quicke to serve as the Company’s
      Chief Executive Officer and President.  Such person, in his
      capacity as the Chief Executive Officer and President, will perform all
      duties normally associated with that of the Company’s Chief Executive
      Officer and President, including without
  limitation:

              

      

       

      
        	
                 
      

              	
                ·

              	
                Provide
      effective overall leadership to the
Company.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Provide
      effective leadership in the Company’s efforts to meet required SEC filing
      requirements.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Serve
      as an effective member of the Company’s executive management
      team.

              

      

       

      
        	
                 
      

              	
                ·

              	
                Perform
      all other duties of the Company’s President and Chief Executive Officer as
      set forth in the Company’s Charter Documents and corporate governance
      policies as they may be amended from time to
  time.

              

      

       

      

       

      The
monthly fee for providing the Services shall be $30,000.form8kexh101_101509.htm

    EXHIBIT
10.1

    
 

    FORM
OF PURCHASE AGREEMENT

     

    This
Purchase Agreement (this “Agreement”), dated as
of October 15, 2009, is by and among Monmouth Real Estate Investment
Corporation, a Maryland corporation (the “Company”), each
Purchaser listed under the heading “Direct Purchasers” on Schedule A (each, a
“Direct
Purchaser”), each Investment Adviser listed under the heading “Investment
Advisers” on the signature pages hereto (each, an “Investment Adviser”)
who is entering into this Agreement on behalf of itself (as to paragraph 4 of
this Agreement) and those Purchasers which are a fund or individual or other
investment advisory client of such Investment Adviser listed under its
respective name on Schedule B (each, a
“Client”), and
each Broker-Dealer listed on Schedule C
(each, a “Broker-Dealer”) which
is entering into this Agreement on behalf of itself (as to paragraph 5 of this
Agreement) and those Purchasers which are customers for which it has power of
attorney to sign listed under its respective name on Schedule C (each, a
“Customer”).  Each
of the Customers, Direct Purchasers and Clients are referred to herein as
individually, a “Purchaser” and
collectively, the “Purchasers.”

     

    WHEREAS, the Purchasers desire
to purchase from the Company (or their Investment Advisers and Broker-Dealers
desire to purchase on their behalf from the Company), and the Company desires to
issue and sell to the Purchasers up to an aggregate of 1,800,000 shares (such
number of shares actually sold pursuant to this Agreement, the “Capital Shares”) of
the Company’s Common Stock, par value $0.01 per share (the “Common Stock”), with
the number of Capital Shares acquired by each Purchaser set forth opposite the
name of such Purchaser on Schedule A, Schedule B or Schedule C, as the
case may be.

     

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

     

    1.           Purchase and
Sale.  Subject to the terms and conditions hereof, the
Investment Advisers and the Broker-Dealers (on behalf of Purchasers which are
Clients and Customers, respectively) and the other Purchasers hereby severally
and not jointly agree to purchase from the Company, and the Company agrees to
issue and sell to the several Purchasers, the number of Capital Shares set forth
next to such Purchaser’s name on Schedule A, Schedule B or
Schedule C, as
the case may be, at a price per share of $6.50 for an aggregate purchase amount
in an amount as set forth on Schedule D hereof
(the “Purchase
Price”) at the Closing (as defined below).

     

    2.           Representations and
Warranties of Purchaser.  Each Purchaser represents and
warrants with respect to itself that:

     

    (a)           Due
Authorization.  Such Purchaser has full power and authority to
enter into this Agreement and is duly authorized to purchase the Capital Shares
in the amount set forth opposite its name on Schedule A, Schedule B or Schedule C, as the
case may be.  This Agreement has been duly authorized by such
Purchaser and duly executed and delivered by or on behalf of such
Purchaser.  This Agreement constitutes a legal, valid and binding
agreement of such Purchaser, enforceable against such Purchaser in accordance
with its terms except as may be limited by (i) the effect of bankruptcy,
insolvency, reor-

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ganization,
moratorium or other similar laws relating to or affecting the rights or remedies
of creditors or (ii) the effect of general principles of equity, whether
enforcement is considered in a proceeding in equity or at law and the discretion
of the court before which any proceeding therefor may be brought (the “Enforceability
Exceptions”).

     

    (b)           Prospectus and Prospectus
Supplement. Such Purchaser has received a copy of the Company’s Basic
Prospectus dated September 14, 2009 and the Prospectus Supplement dated October
15, 2009 (each as defined below).

     

    (c)           Ownership of Excess Shares
of Capital Stock.  As of the date hereof and after giving
effect to the transaction contemplated hereby, such Purchaser, together with its
subsidiaries and affiliates, does not own directly or indirectly more than 9.8%
in number of shares or value, whichever is more restrictive, of any class
aggregate or series of the issued and outstanding capital stock of the
Company.  Purchaser expressly acknowledges that the provisions of the
Company’s Articles of Incorporation, as amended or supplemented (the “Charter”), contain
limitations on the Purchaser’s ownership of the Company’s capital stock, which,
among other things, prohibit the direct or indirect ownership by Purchaser
(together with its subsidiaries and affiliates) of more than 9.8% in number of
shares or value, whichever is more restrictive, of the Company’s outstanding
capital stock and, in the event the shares of capital stock acquired by
Purchaser pursuant to this Agreement or otherwise exceed such limits, give the
Company certain repurchase rights on the terms set forth in the Company's
Charter and result in the conversion of certain shares capital stock held by the
Purchaser into Excess Stock which will be held for the benefit of a charitable
beneficiary on the terms set forth in the Company's Charter.

     

    3.           Representations and
Warranties of Company.  The Company represents and warrants
that:

     

    (a)           The
Company meets the requirements for use of Form S-3 under the Securities Act of
1933, as amended (the “Act”) and meets the
requirements pursuant to the standards for such Form as (i) are in effect on the
date hereof and (ii) were in effect immediately prior to October 21,
1992.  The Company’s Registration Statement (as defined below) was
declared effective by the SEC (as defined below) and the Company has filed such
post effective amendments thereto as may be required under applicable law prior
to the execution of this Agreement and each such post effective amendment became
effective.  The SEC has not issued, nor to the Company’s knowledge,
has the SEC threatened to issue or intends to issue, a stop order with respect
to the Registration Statement, nor has it otherwise suspended or withdrawn the
effectiveness of the Registration Statement or, to the Company’s knowledge,
threatened to do so, either temporarily or permanently, nor, to the Company’s
knowledge, does it intend to do so.  On the effective date, the
Registration Statement complied in all material respects with the requirements
of the Act and the rules and regulations promulgated under the Act (the “Regulations”); at the
effective date the Basic Prospectus (as defined below) complied, and at the
Closing the Prospectus (as defined below) will comply, in all material respects
with the requirements of the Act and the Regulations; each of the Basic
Prospectus and the Prospectus as of its date and at the Closing Date did not,
does not and will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the

     

     

    
      
         

      

      
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    statements
therein not misleading; provided, however, that the
representations and warranties in this subsection shall not apply to statements
in or omissions from the Prospectus made in reliance upon and in conformity with
information furnished to the Company in writing by or on behalf of any of the
Purchasers, CSCA Capital Advisors, LLC, in its capacity as placement agent
(“Placement
Agent”), any Investment Advisers or Broker-Dealers, or any of their
respective affiliates, expressly for use in the Prospectus. As used in this
Agreement, the term “Registration
Statement” means the shelf registration statement on Form S 3 (File No.
333-161668) as declared effective by the Securities and Exchange Commission (the
“SEC”),
including exhibits, financial statements, schedules and documents incorporated
by reference therein.  The term “Basic Prospectus”
means the prospectus included in the Registration Statement, as amended, or as
supplemented.  The term “Prospectus
Supplement” means the prospectus supplement specifically relating to the
Capital Shares as to be filed with the SEC pursuant to Rule 424 under the Act in
connection with the sale of the Capital Shares hereunder.  The term
“Prospectus”
means the Basic Prospectus and the Prospectus Supplement taken
together.  The term “Preliminary
Prospectus” means any preliminary form of Prospectus Supplement used in
connection with the marketing of the Capital Shares.  Any reference in
this Agreement to the Registration Statement, the Prospectus or any Preliminary
Prospectus shall be deemed to refer to and include the documents incorporated by
reference therein as of the date hereof or the date of the Prospectus or any
Preliminary Prospectus as the case may be, and any reference herein to any
amendment or supplement to the Registration Statement, the Prospectus or any
Preliminary Prospectus shall be deemed to refer to and include any documents
filed after the date of such documents and through the date of such amendment or
supplement under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
so incorporated by reference.

     

    (b)           Since
the date as of which information is given in the Registration Statement and the
Prospectus, except as otherwise stated therein, (i) there has been no material
adverse change or any development which could reasonably be expected to give
rise to a prospective material adverse change in or affecting the condition,
financial or otherwise, or in the earnings, business affairs or, to the
Company’s knowledge, business prospects of the Company and the subsidiaries of
the Company, if any (the “Subsidiaries”),
considered as one enterprise, whether or not arising in the ordinary course of
business, (ii) there have been no transactions entered into by the Company or
any of its Subsidiaries, other than those in the ordinary course of business,
which are material with respect to the Company and its Subsidiaries considered
as one enterprise, and (iii) other than regular quarterly dividends, there has
been no dividend or distribution of any kind declared, paid or made by the
Company on any class of its shares of equity securities.

     

    (c)           The
Company has been duly organized as a corporation and is validly existing in good
standing under the laws of the State of Maryland.  Each of the
Subsidiaries of the Company has been duly organized and is validly existing in
good standing under the laws of its jurisdiction of
organization.  Each of the Company and its Subsidiaries has the
required power and authority to own and lease its properties and to conduct its
business as described in the Prospectus; and each of the Company and its
Subsidiaries is duly qualified to transact business in each jurisdiction in
which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, ex-

     

     

    
      
         

      

      
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    cept
where the failure to so qualify would not have a material adverse effect on the
condition, financial or otherwise, or the earnings, business affairs or, to the
Company’s knowledge, business prospects of the Company and its Subsidiaries
considered as one enterprise.

     

    (d)           As
of the date hereof, the authorized capital stock of the Company consists of
35,000,000 shares of Common Stock, par value $0.01 per share, 5,000,000 shares
of excess stock, par value $.01 per share, and 1,322,500 shares of 7.625%
Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred
Stock”), par value $0.01 per share, $25 liquidation value per share, of
which 25,783,779 shares of Common Stock, no shares of excess stock and 1,322,500
shares of the Series A Preferred Stock are issued and outstanding (without
giving effect to any Capital Shares issued or to be issued as contemplated by
this Agreement) and 9,211,221 shares of Common Stock are authorized and
unissued.  The issued and outstanding shares of the Company have been
duly authorized and validly issued and are fully paid and non-assessable; the
Capital Shares have been duly authorized, and when issued in accordance with the
terms of the Charter and delivered as contemplated hereby, will be validly
issued, fully paid and non-assessable and will be listed, subject to notice of
issuance, on the Nasdaq Global Select Market, effective as of the Closing; the
Common Stock, the excess stock and the Series A Preferred Stock of the
Company conform to all statements relating thereto contained in the Prospectus;
and the issuance of the Capital Shares is not subject to preemptive or other
similar rights.

     

    (e)           Neither
the Company nor any of its Subsidiaries is in violation of its organizational
documents or in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any material contract, indenture,
mortgage, loan agreement, note, lease or other instrument or agreement to which
the Company or any of its Subsidiaries is a party or by which it or any of them
are bound, or to which any of the property or assets of the Company or any of
its Subsidiaries is subject, except where such violation or default would not
have a material adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or, to the Company’s knowledge, business prospects of
the Company and its Subsidiaries considered as one enterprise; and the
execution, delivery and performance of this Agreement, and the issuance and
delivery of the Capital Shares and the consummation of the transactions
contemplated herein have been duly authorized by all necessary action and will
not conflict with or constitute a material breach of, or material default under,
or result in the creation or imposition of any lien, charge or encumbrance upon
any material property or assets of the Company or any of its Subsidiaries
pursuant to, any material contract, indenture, mortgage, loan agreement, note,
lease or other instrument or agreement to which the Company or any of its
Subsidiaries is a party or by which it or any of them are bound, or to which any
of the property or assets of the Company or any of its Subsidiaries is subject,
nor will any such action result in any violation of the provisions of the
Charter, by-laws or other organizational documents of the Company or any of its
Subsidiaries or any law, administrative regulation or administrative or court
decree applicable to the Company.

     

    (f)    The Company
is organized in conformity with the requirements for qualification and, as of
the date hereof and as of the Closing, operates in a manner that
quali-

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    fies it
as a “real estate investment trust” under the Internal Revenue Code of 1986, as
amended, and the rules and regulations thereunder and will be so qualified after
giving effect to the sale of the Capital Shares.

     

    (g)           The
Company is not required to be registered under the Investment Company Act of
1940, as amended.

     

    (h)           No
legal or governmental proceedings are pending to which the Company or any of its
Subsidiaries is a party or to which the property of the Company or any of its
Subsidiaries is subject that are required to be described in the Registration
Statement or the Prospectus and are not described therein, and to the knowledge
of the Company, no such proceedings have been threatened against the Company or
any of its Subsidiaries or with respect to any of their respective properties
that are required to be described in the Registration Statement or the
Prospectus and are not described therein.

     

    (i)           No
authorization, approval or consent of or filing with any court or United States
federal or state governmental authority or agency is necessary in connection
with the sale of the Capital Shares hereunder, except such as may be required
under the Act or the Regulations or state securities laws or real estate
syndication laws.

     

    (j)           The
Company and its Subsidiaries possess such certificates, authorities or permits
issued by the appropriate state, federal or foreign regulatory agencies or
bodies necessary to conduct the business now conducted by them, except where the
failure to possess such certificates, authority or permits would not have a
material adverse effect on the condition, financial or otherwise, or the
earnings, business affairs or, to the Company’s knowledge, business prospects of
the Company and its Subsidiaries considered as one
enterprise.  Neither the Company nor any of its Subsidiaries has
received any notice of proceedings relating to the revocation or modification of
any such certificate, authority or permit which, singly or in the aggregate, if
the subject of an unfavorable decision, ruling or finding, would materially and
adversely affect the condition, financial or otherwise, or the earnings,
business affairs or, to the Company’s knowledge, business prospects of the
Company and its Subsidiaries considered as one enterprise, nor, to the knowledge
of the Company, are any such proceedings threatened or
contemplated.

     

    (k)           The
Company has full power and authority to enter into this Agreement, and this
Agreement has been duly authorized, executed and delivered by the Company and
constitutes a legal, valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms except as may be limited by the
Enforceability Exceptions.

     

    (l)           As
of the dates set forth therein or incorporated by reference, the Company had
good and marketable title to all of the properties and assets reflected in the
audited financial statements contained in the Prospectus, subject to no lien,
mortgage, pledge or encumbrance of any kind except (i) those reflected in such
financial statements, (ii) as are otherwise described in the Prospectus, (iii)
as do not materially adversely affect the value of such property or interests or
interfere with the use made or proposed to be made of such property or interests
by the Company and each of its Subsidiaries or 

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (iv) those
which constitute customary provisions of mortgage loans secured by the Company’s
properties creating obligations of the Company with respect to proceeds of the
properties, environmental liabilities and other customary protections for the
mortgagees.

     

    (m)           Neither
the issuance, sale and delivery of the Capital Shares nor the application of the
proceeds thereof by the Company as described in the Prospectus will cause the
Company to violate or be in violation of Regulation T, U or X of the Board of
Governors of the Federal Reserve System or any other regulation of such Board of
Governors.

     

    (n)           The
statements set forth in the Basic Prospectus under the caption “Description of
Our Common Stock” in so far as such statements purport to summarize provisions
of laws or documents referred to therein, are correct in all material respects
and fairly present the information required to be presented
therein.

     

    4.           Representation and
Warranties of the Investment Advisers.  To induce the Company
to enter into this Agreement, each of the Investment Advisers hereby represents
and warrants that:

     

    (a)           It
is an investment adviser duly registered with the SEC under the Investment
Advisers Act of 1940, as amended.

     

    (b)           It
has been duly authorized to act as investment adviser on behalf of each Client
on whose behalf it is signing this Agreement (as identified under the name of
such Investment Adviser on Schedule B hereto)
and has the sole authority to make the investment decision to purchase Capital
Shares hereunder on behalf of such Client.  An investment in the
Capital Stock is a suitable investment for each Client.

     

    (c)           It
has the power and authority to enter into and execute this Agreement on behalf
of each of the Clients listed under its name on Schedule B
hereto.

     

    (d)           This
Agreement has been duly authorized, executed and delivered by it and, assuming
it has been duly authorized, executed and delivered by the Company, constitutes
a legal, valid and binding agreement of such Investment Adviser, enforceable
against it in accordance with its terms except as may be limited by the
Enforceability Exceptions.

     

    (e)           It
has received a copy of the Company’s Basic Prospectus dated September 14,
2009 and Prospectus Supplement dated October 15, 2009.

     

    5.           Representation and
Warranties of the Broker-Dealers.  To induce the Company to
enter into this Agreement, each Broker-Dealer represents and warrants
that:

     

    (a)           It
is duly registered and in good standing as a broker-dealer under the Exchange
Act and is licensed or otherwise qualified to do business as a broker-dealer
with the National Association of Securities Dealers, Inc. and in all states in
which it will offer any Capital Shares pursuant to this Agreement.

       

    

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

           (b)           Assuming
the Prospectus complies with all relevant provisions of the Act in connection
with the offer and sales of Capital Stock, each Broker-Dealer will conduct all
offers and sales of Capital Stock in compliance with the Act, the Exchange Act
and all rules and regulations promulgated thereunder.

     

    (c)           It
has delivered a copy of the Prospectus to each Purchaser set forth under its
name on Schedule
C hereto.

     

    (d)           It
has been granted a duly authorized power-of-attorney to execute and deliver this
Agreement on behalf of each Customer on whose behalf it is signing this
Agreement (as identified under the name of such Broker-Dealer on Schedule C hereto)
and such power has not been revoked.

     

    (e)           This
Agreement has been duly authorized, executed and delivered by it and, assuming
it has been duly authorized, executed and delivered by the Company, constitutes
a legal, valid and binding agreement of such Broker-Dealer, enforceable against
it in accordance with its terms except as may be limited by the Enforceability
Exceptions.

     

    6.           Conditions to Obligations of
the Parties.  (a)  The Purchasers’ several obligation
to purchase the Capital Shares shall be subject to the following conditions
having been met:

     

    (i)           the
representations and warranties set forth in Section 3 of this Agreement shall be
true and correct with the same force and effect as though expressly made at and
as of the Closing,

     

    (ii)           the
Placement Agent shall have received an opinion from Venable LLP, special
Maryland counsel to the Company, dated as of the date of the Closing, addressed
to the Placement Agent and the Purchasers substantially in the form attached
hereto as Exhibit
A.

     

    (iii)           the
Placement Agent shall have received an opinion from Husch Blackwell Sanders LLP,
special securities counsel to the Company, dated as of the date of the Closing,
addressed to the Placement Agent and the Purchasers substantially in the form
attached hereto as Exhibit
B.

     

    (iv)           the
Placement Agent shall have received a comfort letter from PKF, Certified Public
Accountants, A Professional Corporation, dated as of the Closing, substantially
in the form attached hereto as Exhibit C,
and

     

    (v)           on
the Closing Date, the Company shall have delivered to the Placement Agent a
certificate of the Chief Executive Officer and Chief Financial Officer of the
Company,  dated as of the Closing Date, setting forth that each of the
representations and warranties contained in this Agreement shall be true on and
as of the Closing Date as if made as of the Closing Date and each of the
conditions and covenants contained herein shall
have been complied with to the extent compliance is required prior to Closing,
and shall have delivered such other customary certificates as the Placement
Agent shall have reasonably requested.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b)  The
Company’s obligation to issue and sell the Capital Shares shall be subject to
the following conditions having been met:

     

    (i)           the
representations and warranties set forth in Sections 2, 4 and 5 of this
Agreement shall be true and correct with the same force and effect as though
expressly made at and as of the Closing and

     

    (ii)           the
Settlement Agent shall have received payment in full for the Purchase Price for
the Capital Shares by federal wire of immediately available funds, not less than
the aggregate amount of $9,750,000 prior to the payment of fees and
expenses.

     

    7.           Closing.  Provided
that the conditions set forth in Section 6 hereto and the last sentence of this
Section 7 have been met or waived at such time, the transactions contemplated
hereby shall be consummated on October 20, 2009, or at such other time and date
as the parties hereto shall agree (each such time and date of payment and
delivery being herein called the “Closing”).  At
the Closing, settlement shall occur through Weeden & Co. LP, or an affiliate
thereof, on a delivery versus payment basis through the DTC ID
System.

     

    8.           Covenants.  The
Company hereby covenants and agrees that subject to all Purchasers consummating
the purchase of the Capital Shares at the Closing, the Company will use the
proceeds of the offering contemplated hereby as set forth under the caption “Use
of Proceeds” in the Prospectus Supplement.

     

    9.           Termination.  This
Agreement may be terminated, and the transactions contemplated hereby may be
abandoned, by written notice promptly given to the other parties hereto, at any
time prior to the Closing by the Company, on the one hand, or if the Closing
shall not have occurred on or prior to October 30, 2009 by any Purchaser on the
other; provided
that the Company or such Purchaser, as the case may be, shall not be entitled to
terminate this Agreement pursuant to this Section 9 if the failure of Closing to
occur on or prior to such dates results primarily from such party itself having
materially breached any representation, warranty or covenant contained in this
Agreement.

     

    10.           Notices.  Except
as otherwise herein provided, all statements, requests, notices and agreements
shall be in writing and, if to the Purchasers, shall be sufficient in all
respects if delivered or sent by facsimile to 212-446-9181 or by certified mail
to CSCA Capital Advisors, LLC, 757 Third Avenue, New York, New York 10017,
Attention: Bradley Razook, and, if to the Company, shall be sufficient in all
respects if delivered or sent to the Company by facsimile to 732-577-9981 or by
certified mail to the Company at 3499 Route 9 North, Suite 3C, Freehold, New
Jersey 07728, Attention: Michael Landry.

     

    11.           Governing
Law.  This Agreement shall be construed in accordance with and
governed by the substantive laws of the State of New York, without regard to
conflict of laws principles.

     

    12.   Entire
Agreement.  This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and may be
amended only in a writing that is executed by each of the parties
hereto.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    13.           Counterparts.  This
Agreement may be executed in separate counterparts, each of which shall be
deemed an original, and all of which together shall be deemed to constitute one
and the same instrument.  Executed counterparts may be delivered by
facsimile.

     

    14.           Construction.  When
used herein, the phrase “to the knowledge of” the Company or “known to” the
Company or any similar phrase means the actual knowledge of the Chief Executive
Officer, Chief Financial Officer or Chief Operating Officer of the Company and
includes the knowledge that such officers would have obtained of the matter
represented after reasonable due and diligent inquiry of those employees of the
Company whom such officers reasonably believe would have actual knowledge of the
matters represented.

     

    15.           Free Writing Prospectus
Legend.  The Company has filed a registration statement
(including a prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the prospectus in that
registration statement and other documents the Company has filed with the SEC
for more complete information about the Company and this offering. You may get
these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Alternatively, the Company or CSCA Capital Advisors, LLC will arrange to send
you the prospectus if you request it by calling 212-446-9177.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties hereto have caused this Purchase Agreement to be executed and delivered
as of the date first above written.

     

    
      
        	 	MONMOUTH REAL ESTATE INVESTMENT
      CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    DIRECT
PURCHASERS

    

    

    [                            ]

    

    

    By:_____________________________                                                                         

    Name:
[                     ]

    Title:  [                      ]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    INVESTMENT
ADVISERS

    

    [                                ]
on behalf of itself (solely

    with
respect to paragraph 4) and each Client set 

    forth
under its name on Schedule B

    

    

    By:_____________________________                                                                           

    Name:
[                           ]

    Title:  [                            ]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    CUSTOMERS

    

    

    Each of
the Several persons or entities listed under 

    the
heading “Account Name” on Attachment [   ] to 

    Schedule
C hereto

    

    

    By:  [                    ],
as agent and attorney-in-fact

    

    By:_____________________________                                                                         

    Name

    Title:

    

    

    [                  ]
on behalf of itself and solely with 

    respect
to paragraph 5

    

    

    By:_____________________________                                                                         

    Name

    Title:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    NAME
OF DIRECT
PURCHASERS                                                                       NUMBER
OF SHARES

     

    [                       ]                                                                                                      [                       ]

    

    
      
        
          Schedule A - Page
1

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
B

     

    NAME
OF INVESTMENT
ADVISER                                                                                                    NUMBER OF SHARES

    

    

    [                      ]

    

    CLIENTS

    

    [                         ]

    

    

    

    
      
        
          Schedule B - Page
1

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
C

     

    NAME
OF BROKER
DEALER:                                                                                    NUMBER OF
SHARES

    

    [                          ]

    

    Customers
for whom it is signing this 

    Agreement
as agent and attorney-in-fact:

    
                                  The amount set forth
opposite such name on 

                                  Attachment [  ] to
Schedule C under

                                  the heading “Amount” (in the
aggregate 

                                  [              ])

    

    Each of
the several persons or entities set 

    forth
under the heading “Account Name” on  

    Attachment
[  ] to Schedule C hereto

    

    

    

    

    

    

    
      
        
          Schedule C - Page
1

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
D

     

    Aggregate
Purchase Amount

     

    

    [                   ]                                                                                                                                $[                     ]

    

    

    

    

    
      
        
          Schedule D - Page
1

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    Opinion of Venable
LLP

     

    •  The
Company is a corporation duly incorporated and validly existing under and by
virtue of the laws of the State of Maryland and is in good standing with the
State Department of Assessments and Taxation of Maryland.

     

    •  The
Company has the requisite corporate power to own or lease its properties and to
conduct its business as described in the Basic Prospectus under the caption
"Monmouth Real Estate Investment Corporation", to enter into the Purchase
Agreement and the Placement Agent Agreement (collectively, the "Agreements") and
to carry out all the terms and provisions of the Agreements to be carried out by
it.

     

    •  The
authorized stock of the Company is as set forth in the Prospectus Supplement
under the heading "Description of our Capital Stock" and consists of 35,000,000
shares of Common Stock, par value $0.01 per share, 5,000,000 shares of excess
stock, par value $0.01 per share, and 1,322,500 shares of 7.625% Series A
Cumulative Redeemable Preferred Stock (the "Series A Preferred Stock), par value
$0.01 per share, $25 liquidation value per share.

     

    •  The
issuance and sale of the Capital Shares pursuant to the Purchase Agreement have
been duly authorized by all necessary corporate action of the Company and, when
issued and delivered by the Company against payment of the agreed consideration
therefor in accordance with the provisions of the Purchase Agreement, the
Capital Shares will be validly issued, fully paid and
non-assessable.

     

    •  No
holders of outstanding shares of stock of the Company are entitled to any
preemptive or other similar rights under the Maryland General Corporation Law
(the "MGCL") or under the Charter or Bylaws of the Company to subscribe for or
purchase any of the Capital Shares.

     

    •  The
execution and delivery of the Agreements have been duly authorized by all
necessary corporate action on the part of the Company.

     

    •  The
execution, delivery and performance of the Agreements and the issuance and
delivery of the Capital Shares will not conflict with or result in a violation
of the provisions of the Charter or Bylaws of the Company, the laws of the State
of Maryland, or any decree, judgment or order of any Maryland governmental
authority applicable to the Company or any Maryland Subsidiaries.

     

    •  The
Capital Shares conform in all material respects to the description of the Common
Stock of the Company set forth under the subheadings  "General" and
"Restrictions on Ownership and Transfer" in the section of the Basic Prospectus
entitled "Description of Capital Stock".

     

    
      
        
          A-1

        

         

      

      
         

        
          

        

      

      
         

      

    

    •  The
Series A Preferred Stock conforms in all materials respects to the description
thereof set forth under the subheading "Series A Cumulative Redeemable Preferred
Stock" in the section of the Basic Prospectus entitled "Description of Capital
Stock".

     

    •  The
statements in the section of the Basic Prospectus entitled "Risk Factors" under
the heading "We are subject to restrictions that may impede our ability to
effect a change in control", insofar as such statements purport to summarize
provisions of the Charter or Bylaws of the Company or the MGCL, are accurate in
all material respects.

     

    •  No
authorization, approval or consent of any court or governmental authority of the
State of Maryland is necessary in connection with the consummation of the
transactions contemplated by the Agreements, except those, if any, which have
already been obtained or rendered (and except as may be required under the
securities laws of the State of Maryland, as to which we express no
opinion).

     

    
      
        
          A-2

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    Opinion of Husch Blackwell
Sanders LLP

     

    •  The
Registration Statement has been declared effective under the Act, and to our
knowledge, (a) no stop order suspending the effectiveness of the Registration
Statement or any part thereof has been issued, and (b) no proceedings for that
purpose have been instituted or are pending or threatened by the
SEC.  The Prospectus has been filed with the SEC.

     

    •  The
Registration Statement and the Prospectus (other than the financial statements
and other financial data contained therein, as to which we express no opinion)
comply as to form in all material respects with the applicable requirements of
the Act and the Regulations.

     

    •  The
descriptions in the Registration Statement and the Prospectus of statutes, legal
and governmental proceedings, contracts and other legal documents, insofar as
they address legal matters, fairly summarize in all material respects the
information about legal matters required to be disclosed by the applicable Items
of the Registration Statement.

     

    •  Neither
the Company nor any of its Subsidiaries is an “investment company” or entity
controlled by an “investment company” within the meaning of the
Act.

     

    •  The
execution, delivery and performance of the Placement Agent Agreement and the
Purchase Agreement by the Company, and the issuance and delivery of the Capital
Shares, will not conflict with or constitute a material breach of any Material
Contract.  For the purposes of this Section 2.5, “Material Contract”
means any agreement or instrument which the Company filed with the SEC as an
exhibit to the Registration Statement.

     

    •  To
our knowledge, no authorization, approval or consent of any court or United
States federal or state governmental authority or agency having jurisdiction
over the Company and its Subsidiaries and which govern transactions such as the
Transaction, is necessary in connection with the sale of the Capital Shares,
except such as may be required under the Act or the Regulations or under state
securities laws and real estate syndication laws as to which we express no
opinion.

     

    •  To
our knowledge, no legal or governmental proceedings are pending to which the
Company or any of its Subsidiaries is a party or to which the property of the
Company or any of its Subsidiaries is subject that are required to be described
in the Registration Statement or the Prospectus and are not described therein,
and to our knowledge no such proceedings have been threatened against the
Company or any of its Subsidiaries or with respect to any of their respective
properties that are required to be described in the Registration Statement or
the Prospectus and are not described therein.

     

    •  For
its taxable years ended September 30, 2005 through September 30, 2008, the
Company has continuously been organized and has operated in conformity with the
requirements for qualification as a “real estate investment trust” under the
Code.

     

    
      
        
          B-1

        

         

      

      
         

        
          

        

      

      
         

      

    

    •  The
Company's current organization and method of operation will permit it to
continue to meet the requirements for taxation as a “real estate investment
trust” under the Code for its September 30, 2009 taxable year.

     

    •  The
federal income tax discussion described in the Prospectus under the caption
“Material United States Federal Income Tax Consequences”, to the extent such
discussion constitutes matters of law, summaries of legal matters or legal
conclusions, is correct in all material respects and fairly summarizes in all
material respects the federal income tax laws referred to therein.

     

    In
connection with our representation of the Company with respect to the offering
of the Capital Shares, we have reviewed and relied upon certain corporate
records and documents, letters from counsel for the Company and accountants, and
oral and written statements of officers (specifically including but not limited
to the Secretary’s Certificate) and other representatives of the Company and
others as to the existence and consequence of certain factual and other matters,
and have participated in conferences with officers and other representatives of
the Company and representatives of the Placement Agent, including counsel for
the Placement Agent, during which conferences and conversations the contents of
the Registration Statement and the Prospectus and any amendment or supplement
thereto and related matters were discussed; and, based upon such participation
and review, and relying as to materiality in part upon the factual statements of
officers and other representatives of the Company and representatives of the
Placement Agent, nothing has come to our attention that causes us to believe
that the Prospectus (except for the financial statements and related data and
other financial or accounting data contained or incorporated by reference
therein or omitted therefrom, as to which we do not comment), as of its date and
the Closing Date, contained or contains an untrue statement of a material fact
or omitted or omits to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

     

    

     

    
      
        
          B-2

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    Comfort
Letter

     

    
      	
              1.

            	
              We
      are an independent registered public accounting firm with respect to the
      Company within the meaning of the Act and the applicable rules and
      regulations adopted by the Securities and Exchange Commission (the “SEC”)
      and the Public Company Accounting Oversight Board (United States) (the
      “PCAOB”).

            

    

    

    
      	
              2.

            	
              In
      our opinion, the consolidated financial statements and financial statement
      schedule audited by us and included in the Company’s Annual Report on Form
      10-K at September 30, 2008, and incorporated by reference in the
      Registration Statement comply as to form in all material respects with the
      applicable accounting requirements of the Act and the Securities Exchange
      Act of 1934 (the “Exchange Act”) and the related rules and regulations
      adopted by the SEC.

            

    

    

    
      	
              3.

            	
              We
      have not audited any financial statements of the Company as of any date or
      for any period subsequent to September 30, 2008; although we have
      conducted an audit for the year ended September 30, 2008, the purpose, and
      therefore the scope, of the audit was to enable us to express our opinion
      on the consolidated financial statements as of September 30, 2008, and for
      the year then ended, but not on the consolidated financial statements for
      any interim period within that year.  Therefore, we are unable
      to and do not express any opinion on (i) the unaudited consolidated
      balance sheet at December 31, 2008 and the unaudited consolidated
      statement of income and cash flows for the three-month period ended
      December 31, 2008, all incorporated by reference in the Registration
      Statement from the Company’s Quarterly Report on Form 10-Q for the quarter
      ended December 31, 2008; (ii) the unaudited consolidated balance sheet at
      March 31, 2009, the unaudited consolidated statements of operations for
      the three-month and six-month periods ended March 31, 2009, and the
      unaudited consolidated statements of cash flows for the six-month period
      ended March 31, 2009, all incorporated by reference in the Registration
      Statement from the Company’s Quarterly Report on Form 10-Q for the quarter
      ended March 31, 2009; (iii) the unaudited consolidated balance sheet at
      June 30, 2009, the unaudited consolidated statements of operations for the
      three-month and nine-month periods ended June 30, 2009, and the unaudited
      consolidated statements of cash flows for the nine-month period ended June
      30, 2009, all incorporated by reference in the Registration Statement from
      the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30,
      2009; or (iv) the financial position, results of operations or cash flows
      as of any date or for any period subsequent to September 30,
      2008.

            

    

    

    
      	
              4.

            	
              For
      purposes of this letter, we have read all minutes of meetings of the
      stockholders, the Board of Directors, and Audit Committee of the Company as
      set forth in the minute books from October 1, 2008 to the date hereof,
      officials of the Company having advised us that the minutes of all such
      meetings through that date were set forth therein; we have carried
      out other procedures to October 12, 2009 as follows (our work did not
      extend to the period from October 12, 2009 to October 14, 2009
      inclusive).

            

    

    

    
      	
               
      

            	
              a.

            	
              With
      respect to the three-month period ended December 31, 2008, the three-month
      and six-month periods ended March 31, 2009 and the three-month and
      nine-month periods ended June 30, 2009 we
have:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Performed
      the procedures specified by the PCAOB for a review of interim financial
      information as described in PCAOB Interim Standard AU 722, Interim Financial
      Information, on (i) the unaudited consolidated balance sheet at
      December 31, 2008 and the unaudited consolidated statements of income and
      cash flows for the three-month period ended December 31, 2008, all
      incorporated by reference in the Registration Statement from the Company’s
      Quarterly Report on Form 10-Q for the quarter ended December 31, 2008;
      (ii) the unaudited consolidated balance sheet at March 31, 2009, the
      unaudited consolidated statements of operations for the three-month and
      six-month periods ended March 31, 2009, and the unaudited consolidated
      statement of cash flows for the six-month period ended March
      31,

            

    

    
      	
               
      

            	
               

            

    

    
      
        
          

          
            	
                     

                  

          

           

          C-1

        

         

      

      
         

        
          

        

      

      
         

      

    

    2009, all
incorporated by reference in the Registration Statement from the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2009; and (iii)
the unaudited consolidated balance sheet at June 30, 2009, the unaudited
consolidated statements of operations for the three-month and nine-month periods
ended June 30, 2009, and the unaudited consolidated statement of cash flows for
the nine-month period ended June 30, 2009, all incorporated by reference in the
Registration Statement.

    

    
      	
               
      

            	
              a.

            	
              Inquired
      of certain officials of the Company who have responsibility for financial
      and accounting matters whether the unaudited consolidated financial
      statements referred to in item a.(i) above comply as to form in all
      material respects with the applicable accounting requirements of the
      Exchange Act as it applies to Form 10-Q and the related rules and
      regulations adopted by the SEC.

            

    

    

    The
foregoing procedures do not constitute an audit conducted in accordance with the
standards of the PCAOB. Also, they would not necessarily reveal matters of
significance with respect to the comments in the following paragraph.
Accordingly, we make no representations regarding the sufficiency of the
foregoing procedures for your purposes.

    

    
      	
              5.

            	
              Nothing
      came to our attention as a result of the foregoing procedures, however,
      that caused us to believe that:

            

    

    

    
      	
               
      

            	
              a.

            	
              Any
      material modifications should be made to the unaudited consolidated
      financial statements described in item 3 above, incorporated by reference
      in the Registration Statement, for them to be in conformity with
      accounting principles generally accepted in the United States of
      America.

            

    

    

    
      	
               
      

            	
              b.

            	
              The
      unaudited consolidated financial statements described in item 3 above do
      not comply as to form in all material respects with the applicable
      accounting requirements of the Exchange Act as it applies to Form 10-Q and
      the related rules and regulations adopted by the
  SEC.

            

    

    

    
      	
               
      

            	
              6.

            	
              Company
      officials have advised us that no consolidated financial statements as of
      any date or for any period subsequent to June 30, 2009, are available;
      accordingly, the procedures carried out by us with respect to changes in
      financial statement items after June 30, 2009 have, of necessity, been
      even more limited than those with respect to the periods referred to in
      item 3. We have inquired of certain officials of the Company who have
      responsibility for financial and accounting matters whether (a) at October
      12, 2009, there was any change in the capital stock, increase in long-term
      debt or any decreases in consolidated net current assets or consolidated
      shareholders’ equity of the Company as compared with amounts shown on the
      June 30, 2009, unaudited consolidated balance sheet included in the
      Registration Statement or (b) for the period from July 1, 2009 to October
      12, 2009 there were any decreases, as compared with the corresponding
      period in the preceding year, in consolidated rental and reimbursement
      revenue or in the total or per-share amounts of net income
      (loss).  On the basis of these inquiries and our reading of the
      minutes as described in item 4, nothing came to our attention that caused
      us to believe that there was any such change, increase, or decrease,
      except in all instances for changes, increases, or decreases that the
      Registration Statement discloses have occurred or may
    occur.

            

    

     

    
      	
              7.

            	
              Our
      audit of the consolidated financial statements for the periods referred to
      in the introductory paragraph of this letter comprised audit tests and
      procedures deemed necessary for the purpose of expressing an opinion on
      such financial statements taken as a whole. For none of the periods
      referred to therein, or any other period, did we perform audit tests for
      the purpose of expressing an opinion on individual balances of accounts or
      summaries of selected transactions such as those enumerated above, and,
      accordingly, we express no opinion
thereon.

            

    

     

    
      	
              8.

            	
              However,
      for purposes of this letter we also read the items identified by you on
      the attached copies of selected pages of the Company’s Annual Report on
      Form 10-K for the year ended September 30, 2008 and the Company’s
      Quarterly Reports on Form 10-Q for the quarterly periods ended
      December

            

    

     

    
      	
               
      

            	
               

            

    

     

    
      
        
          B-2

        

         

      

      
         

        
          

        

      

      
         

      

    

    31, 2008,
March 31, 2009 and June 30, 2009, and have performed the following additional
procedures, identified in the letters below:

     

    

    
      	
               
      

            	
              A.

            	
              Compared
      the corresponding amounts or percentage in, or amounts or percentages
      combined, to the Company’s September 30, 2008 audited financial statements
      incorporated by reference in the Registration Statement and found them to
      be in agreement.

            

    

    

    
      	
               
      

            	
              B.

            	
              Compared
      the corresponding amounts or percentage in, or amounts or percentages
      combined, to the Company’s December 31, 2008, March 31, 2009, or June 30,
      2009; unaudited financial statements incorporated by reference in the
      Registration Statement and found them to be in
  agreement.

            

    

    

    
      	
               
      

            	
              C.

            	
              Compared
      the amount or percentage with an agreement, a schedule or report prepared
      by the Company from its accounting records and found them to be in
      agreement.

            

    

    

    
      	
               
      

            	
              D.

            	
              Compared
      the corresponding amounts or percentage in, or amounts or percentages
      combined, to the Company’s September 30, 2006 or 2005 financial statements
      not audited by us, and not incorporated by reference in the Registration
      Statement, and found them to be in agreement.  Accordingly, we
      provide no opinion or any other assurance on such amounts or
      percentages.

            

    

    

    
      	
               
      

            	
              E.

            	
              Not
      used.

            

    

    

    
      	
               
      

            	
              F.

            	
              Recalculated
      the indicated amounts or percentage and found it to be in
      agreement.  Such recalculations were based upon consolidated
      financial statements audited and reviewed by us as well as consolidated
      financial statements not audited or reviewed by
      us.  Accordingly, we provide no opinion or other assurance on
      any amounts or percentages for periods prior to September 30, 2008 which
      were not audited or reviewed by us.

            

    

    

    
      	
               
      

            	
              G.

            	
              Compared
      the corresponding amounts or percentage in, or amounts or percentages
      combined, to the Company’s September 30, 2007 or 2006 consolidated
      financial statements not audited by us, but incorporated by reference in
      the Registration Statement and found them to be in
      agreement.  Accordingly, we provide no opinion or any other
      assurance on such amounts or
percentages.

            

    

    

    
      	
               
      

            	
              H.

            	
              Compared
      the corresponding amounts or percentage in, or amounts or percentages
      combined, to the Company’s unaudited financial statements for periods
      prior to September 30, 2008 incorporated by reference in the Registration
      Statement and found them to be in agreement.  Such consolidated
      financial statements were not reviewed by us and accordingly, we provide
      no level of assurance on such amounts or
  percentages.

            

    

    

    
      	
               
      

            	
              I.

            	
              Proved
      the arithmetic accuracy of Funds From Operations (“FFO”).  FFO
      does not represent cash generated from operating activities in accordance
      with U.S. generally accepted accounting principles and we make no comment
      as to the sufficiency of the individual adjustments included to arrive at
      FFO nor do we make any comment as to the sufficiency of the disclosures or
      the suitability of this measure for valuation or other
      purposes.

            

    

    

    
      	
               
      

            	
              J.

            	
              Proved
      the arithmetic accuracy of the percentages of amounts.  No other
      conclusions or verifications should be
inferred.

            

    

     

    
      	
              9.

            	
              It
      should be understood that we make no representations regarding questions
      of legal interpretation or regarding the sufficiency for your purposes of
      the procedures enumerated in the preceding paragraph; also, such
      procedures would not necessarily reveal any material misstatement of the
      amounts or percentages listed above. Further, we have addressed ourselves
      solely to the foregoing data as set forth in the registration statement
      and make no representations regarding the adequacy of disclosure or
      regarding whether any material facts have been
  omitted.

            

    

     

    
      
        
          B-3

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