Document:

ex10-1.htm

     

     

    
      
        Exhibit 10.1

         

         

         

         

         

        This Discount
Notes Selling Group Agreement has been filed to provide investors with
information regarding its terms.  It is not intended to provide any other
factual information about the Tennessee Valley Authority.  The
representations and warranties of the parties in this Discount Notes Selling
Group Agreement were made to, and solely for the benefit of, the other parties
to this Discount Notes Selling Group Agreement.  The assertions embodied in
the representations and warranties may be qualified by information included in
schedules, exhibits, or other materials exchanged by the parties that may modify
or create exceptions to the representations and warranties.  Accordingly,
investors should not rely on the representations and warranties as
characterizations of the actual state of facts at the time they were made or
otherwise. 

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      
         

                       
This Form Discount Note Selling Group Agreement has been executed between
TVA and each of the following parties on the dates noted: 

         

        
          	
                   

                   

                	
                   

                   

                	
                   

                   

                
	
                  Party

                   

                	
                   

                   

                	
                  Date
      executed

                   

                
	
                  Banc of
      America Securities LLC 

                   

                	
                   

                   

                	
                  May 28, 2003

                   

                
	
                  Barclays
      Capital, Inc.

                   

                  Credit
      Suisse First Boston LLC 

                   

                	
                   

                   

                	
                  October 23,
      2007

                   

                  May 23, 2003

                   

                
	
                  FTN
      Financial 

                   

                	
                   

                   

                	
                  May 22, 2003

                   

                
	
                  Goldman,
      Sachs & Co. 

                   

                	
                   

                   

                	
                  July 2, 2003

                   

                
	
                  J.P. Morgan
      Securities Inc. 

                   

                	
                   

                   

                	
                  August 5, 2004

                   

                
	
                  Lehman
      Brothers Inc. 

                   

                	
                   

                   

                	
                  May 27, 2003

                   

                
	
                  Merrill
      Lynch Government Securities Inc. 

                   

                	
                   

                   

                	
                  June 10, 2003

                   

                
	
                  Morgan
      Stanley & Co., Incorporated 

                   

                	
                   

                   

                	
                  September 26, 2006

                   

                
	
                  Suntrust
      Robinson Humphrey 

                   

                	
                   

                   

                	
                  May 14, 2003

                   

                

        

         

         

         

         

      

      
         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        TENNESSEE VALLEY
AUTHORITY

         

        DISCOUNT NOTES

         

        SELLING GROUP AGREEMENT

         

         

         

        The Tennessee Valley Authority (“TVA”) may offer
Discount Notes (“Notes”), which Notes are described in TVA’s Discount Notes
Offering Circular, for public distribution through a group of investment dealers
and dealer banks (“Selling Group”). You are invited to become a member of the
Selling Group (“Member”). 

         

        The signature of a
person authorized to bind your organization at the conclusion of this Selling
Group Agreement (“Agreement”) constitutes both your organization’s acceptance of
this invitation and its consent to be bound by all the terms and conditions
contained in this Agreement and by any instructions contemplated by this
Agreement, written or otherwise transmitted, in connection with the distribution
of the Notes which may be issued by TVA by its  Treasurer or
designees. 

         

        SECTION
1.  AUTHORIZATION.  The Notes will be issued pursuant to (1)
authority vested in TVA by section 15d of the Tennessee Valley Authority Act of
1933, as amended, 16 U.S.C. §§ 831-831ee (2000), (2) section 2.5 of the
Basic Tennessee Valley Authority Power Bond Resolution adopted by the Board of
Directors of TVA (“Board”) on October 6, 1960, as amended, and (3) a Resolution
adopted by the Board on January 23, 1991, as amended, authorizing the issuance
of certain short-term debt through the use of the book-entry system of the
Federal Reserve Banks.  The Notes will not
be obligations of, nor will they be guaranteed by, the United States of
America.

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      
        SECTION 2.
 OFFERING.  Each Member will offer Notes of original
issue to investors, according to the rate schedule established by TVA. 
Unless otherwise instructed, Members must receive approval from TVA of all sales
prior to confirmation with the customer pursuant to section 7 of this
Agreement.  TVA reserves the right, in its sole discretion, to reject any
offer for the purchase of the Notes, allot less than the face amount of the
Notes requested by a Member, change the rate schedule, or terminate the sale of
the Notes.  Members will be notified as promptly as practicable of any such
action.

         

        SECTION 3.  POSITIONING
AND RECORDS.  Members are prohibited from purchasing original
issue Notes acting as principal unless expressly authorized to do so by
TVA.  Any violation of this restriction regarding purchasing original issue
Notes acting as principal may result in a Member’s immediate removal from the
Selling Group at TVA’s sole discretion.

         

        Reallowance of all or any part of the concession
is allowed on all sales to dealers outside the Selling Group subject to prior
approval by TVA.  Such reallowance must be reported to TVA monthly in an
electronic or written format. Any violation of the restriction regarding
concession reallowance or the restriction regarding sales to dealers outside the
Selling Group may result in a Member’s immediate removal from the Selling
Group.

         

      

      
 

      
        
          
          

        

        
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        TVA will maintain records of sales and amounts of
Notes maturing on each future maturity date and will, when requested by a
Member, advise it of such dates and amounts.

         

        SECTION 4.
 PRICING. Rate schedules for the Notes will usually be
adjusted on a daily basis to reflect TVA’s cash needs, current market
conditions, and TVA’s maturity strategy.  TVA will make available to each
Member of the Selling Group the appropriate rate schedule to be used in offering
Notes to the public.  Such information will be transmitted by telephone or
other electronic means as soon as practicable.  Rates may be changed at any
time at the sole discretion of TVA.  Members will be notified of a pending
change as soon as practicable and instructed to cease offering Notes, except in
the secondary market, until a new schedule is established.

         

        The purchase price of each Note to the public
shall be the difference between the face amount of the Note and the quotient
arrived at by dividing by 360 the product of (1) the principal amount of the
Note, (2) the percentage rate of discount applicable to the Note (said
percentage rate of discount being hereinafter called the “Discount Rate”), and
(3) the actual number of days the Note will be outstanding (excluding the
date of issue but including the maturity date).

         

        SECTION 5.  SELLING
CONCESSION. For all Notes confirmed by TVA to, and paid for by, a
Member, that Member will be allowed a concession, the amount of which will be
determined from time to time by TVA.  Members will receive the concession
by 

         

         

         

        
          
            
            

          

          
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        TVA’s deducting the amount of the concession from the
gross amount otherwise due from each Member in settlement of the Notes on the
settlement date or through direct payment to a Member on a periodic basis as TVA
and such Member may agree.  The concession with respect to any sale of
Notes may be withheld in whole or in part as to any Member at the discretion of
TVA upon TVA’s determination that such sale of Notes by such Member is in
violation of the terms of this Agreement or is otherwise improper.  Except
for concessions withheld as described above, no change in the concession amount
will be effective until TVA informs Member of such change by telephone or other
electronic means.

         

        SECTION 6.  SECONDARY
MARKET. Each Member shall use its best efforts to maintain a
viable secondary market for the Notes and shall submit an electronic or written
report to TVA, no later than the fifth working day of each month, of such
Member’s purchases and sales of the Notes in the secondary market during the
previous month.  Each Member shall be responsible for continually advising
TVA of secondary Note inventories and market developments. 

         

        SECTION 7.  TRANSMITTAL
OF ORDERS AND CONFIRMATION OF SALES. Members shall confirm
to TVA by telephone or other means acceptable to TVA offers to purchase as to
par amount, Discount Rate, issue date, and maturity prior to the execution of
the sale.  It is hereby expressly agreed that TVA shall have no obligation
to accept an offer to purchase any Note prior to TVA’s acceptance, by telephone
or otherwise, of such offer to purchase.  TVA’s acceptance of an offer to
purchase shall bind the Member and 

         

         

         

        
          
            
            

          

          
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        TVA to proceed with such sale, unless both parties agree
otherwise.

         

        SECTION 8.
 SETTLEMENT. Settlement for cash (same day), regular
(next business day), skip (2 business days forward) or other settlement delivery
options as deemed appropriate will normally be available.  However,
temporary restrictions on settlement type may be imposed by TVA at any
time.  If restrictions are imposed, Members will be notified as quickly as
possible by telephone or other electronic means.  Delivery of the Notes
allotted to each Member shall be made on the settlement date against payment in
federal funds through the Federal Reserve’s wire transfer system.

         

        Failure of a Member to make payment for the Notes
on the settlement date shall result in the Member being liable to TVA in an
amount equal to the sum of (1) the product of (a) the annual Discount Rate
of the Notes computed on a daily basis, (b) the principal amount of the Notes
(with respect to which Member failed to make payment), and (c) the number of
days payment is not made, (2) any Federal Reserve charges, and (3) other
expenses or losses incurred by TVA as a result of a Member’s failure to make
payment; provided that no Member shall be liable for failure to make such
payment due to actions of TVA or its agents in violation of this Agreement or
for any failure of the Federal Reserve Banks, except when Member fails to follow
applicable operating procedures of the Federal Reserve Banks (including
alternative procedures), or for any events beyond the reasonable control of
Member; and provided further, however, that Member’s liability pursuant to this
section 8 shall not exceed an amount equal to the principal amount of the Notes
(with respect to which Member failed to make payment).

         

         

         

        
          
            
            

          

          
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        SECTION 9.  AUTHORIZED
PERSONNEL.  Member must provide TVA with electronic or
written notification of those persons within its organization authorized to act
as liaisons to TVA in connection with the distribution of the Notes.  TVA
is not obligated to coordinate any aspect of the distribution of Notes with any
person other than those authorized to act in Member’s behalf.  TVA will
notify the Member, which notification may be oral
and confirmed later in writing, of those persons authorized to approve sales of
Notes and otherwise act for TVA under this Agreement.

         

        SECTION 10.  WEB
SITE. When a Member uses the web site provided by the Grant Street
Group or any similar web site related to the Notes (“Web Site”), the following
provisions shall apply:

         

        (1)  Member shall designate in writing one or more
employees it will authorize to use the Web Site (each such individual being
referred to herein as an “Authorized User”) by submitting the information set
forth in Exhibit A.  An Authorized User may have access (a) to view the Web
Site and submit offers to buy Notes, (b) to view the Web Site and confirm offers
to buy Notes, or (c) to view the Web Site, submit offers to buy the Notes, and
confirm offers to buy the Notes.  

         

         

        (2)  Member and its Authorized Users are
responsible for controlling access to the Web Site and for securing their
computer systems (or the computer systems under their custody and control) to
prevent unauthorized use of the Web Site and purchase of Notes by means of the
Web Site.  Member bears the risk of loss in the 

         

         

         

        
          
            
            

          

          
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        event an unauthorized purchase of Notes is made through
its computer systems (or the computer systems under its custody and control) or
if an Authorized User makes an unauthorized purchase of Notes offered by sale by
means of the Web Site.  

         

        (3)  Member shall advise TVA in writing if
there is a change in employment of any of its Authorized Users, if Member wants
to terminate an employee’s status as an Authorized User, or if Member wants to
designate additional employees as Authorized Users.

         

        (4)  Member shall not allow employees,
Authorized Users, or others located outside of the United States to use the Web
Site to participate in the purchase of Notes from TVA.

         

         

        SECTION 11.  FINANCIAL
STATEMENTS. Members must provide for TVA’s review current audited
financial statements or other written financial information in a form
satisfactory to TVA on a regular basis but in no case less frequently than
yearly.

         

        SECTION 12.  OTHER
AGREEMENTS. TVA hereby reserves the right to select special
Selling Groups of investment dealers and dealer banks for the issuance of Notes
or other debt securities in circumstances that are deemed to be special
situations.  TVA has sole discretion and final decision in such
matters.

         

         

         

        
          
            
            

          

          
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        SECTION 13.
 MEMBER LIABILITY. No Member has the authority to
obligate TVA or any employee of TVA for any expenses incurred by the Member, and
TVA and its employees assume no such liability under this Agreement.  In
connection with the distribution of the Notes, Member agrees to (1) provide no
information or make no representation that is inconsistent with the Discount
Notes Offering Circular, TVA’s current Information Statement, any supplement to
any of the foregoing, and any brochures, memoranda, and other descriptive
material relating to the Notes furnished to Member by TVA or approved by TVA in
writing prior to their use; (2) comply with all applicable laws and regulations
relating to the sale of the Notes in each jurisdiction in which a Member offers,
sells, or otherwise distributes the Notes; and (3) permit TVA to inspect to the
extent allowed by applicable law, during regular business hours and on
reasonable notice, the Member’s books and records associated with its activities
under this Agreement.

         

         

        SECTION 14.
 CANCELLATION OF AGREEMENT. A Member may withdraw from
membership in the Selling Group upon written notice to TVA. Similarly, TVA may
terminate, at no cost to TVA, the membership of any Member at any time, but such
termination shall not affect the obligation of the Member or TVA to complete its
performance with respect to any outstanding sales commitments.  Notice of
such termination by TVA may be oral and confirmed later in writing.

         

         

         

        
          
            
            

          

          
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        SECTION 15.
 SEVERABILITY OF PROVISIONS. In the event that one or
more provisions contained in this Agreement is determined to be invalid,
illegal, or unenforceable in any respect, the validity, legality, and
enforceability of the remaining provisions contained in this Agreement shall not
be affected or impaired thereby, and this Agreement shall be interpreted as if
such invalid, illegal, or unenforceable provision was not contained in this
Agreement.

         

         

        SECTION 16.
 OFFICIALS NOT TO BENEFIT.  No member of or delegate to
Congress or Resident Commissioner, or any officer, employee, special Government
employee, or agent of TVA shall be admitted to any share or part of this
Agreement or to any benefit that may arise therefrom, but this provision shall
not be construed to extend to a corporation contracting for its general benefit;
nor shall any Member offer or give, directly or indirectly, to any officer,
employee, special Government employee, or agent of TVA, any gift, gratuity,
favor, entertainment, loan, or any other thing of monetary value, except as
provided in 5 C.F.R. part 2635.

         

         

        SECTION 17.
 INDEMNIFICATION. Member agrees to indemnify and hold
TVA harmless from and against any losses, liabilities, damages, or claims (or
actions in respect thereof) to which TVA may become subject insofar as such
losses, liabilities, damages, or claims (or actions in respect thereof) arise
out of or relate to the making by Member of any representation or the giving by
Member of any information in connection

         

         

         

        
          
            
            

          

          
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        with the offering or sale of the Notes which is
inconsistent with TVA’s Discount Notes Offering Circular, Information Statement,
any supplement to the foregoing, or brochures, memoranda, or other descriptive
material relating to the Notes furnished to Member by TVA or approved by TVA in
writing prior to their use.  Member further agrees to reimburse TVA for any
legal or other expenses reasonably incurred by TVA in connection with
investigating or defending any such losses, liabilities, damages, claims, or
actions as such expenses are incurred.  TVA agrees to give prompt written
notice to Member of any claim or the commencement of any action as to which
indemnification will be requested.  Member’s obligation under this section
shall be in addition to any liability that it may otherwise have and shall
extend, upon the same terms and conditions, to each director, officer, and
employee of TVA.  Further, Member shall indemnify, protect, and hold TVA
harmless from and against any and all losses, liabilities, judgments, suits,
actions, proceedings, claims, damages, and costs (including attorney’s fees)
resulting from the breach of section 10 of this Agreement.

         

         

        TVA agrees to indemnify and hold each Member
harmless from and against any losses, claims, damages, or liabilities, joint or
several, to which such Member may become subject, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in TVA’s Discount Notes Offering Circular, Information Statement,
any supplements to the foregoing, or any brochures, memoranda, or other
descriptive material relating to the Notes furnished to Members by TVA or
approved by TVA in writing prior to their use with respect to the Notes
(collectively, “Information”) or arise out of or are based 

         

         

         

        
          
            
            

          

          
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        upon the omission or alleged omission to state
therein a material fact necessary to make the statements therein not misleading,
and will reimburse each Member for any legal or other expenses reasonably
incurred by such Member in connection with the investigation or defense of any
such loss, claim, damage, liability, or action as such expenses are incurred;
provided, however, that the foregoing indemnity agreement with respect to the
Information shall not inure to the benefit of Member from whom the person
asserting any such losses, claims, damages, liabilities, or actions purchased
Notes, or any person controlling Member, if a copy of the Information (as then
amended and supplemented if TVA shall have furnished any amendments or
supplements thereto) was furnished by TVA to  Member in reasonably
sufficient quantities prior to mailing by Member of confirmation of the sale of
the Notes and was not sent or given by or on behalf of Member to such person, at
or prior to the confirmation of the sale of the Notes to such person, and if the
Information (as so amended or supplemented) would have cured the defect giving
rise to such losses, claims, damages, liabilities, or actions; and provided,
further, that TVA will not be liable in any such case to the extent that any
such loss, claim, damage, liability, or action arises out of or is based upon an
untrue statement or alleged untrue statement in or omission or alleged omission
from the Information made in reliance upon and in conformity with written
information furnished to TVA by Member specifically for use therein.
 Member agrees to give prompt notice to TVA of any claim or the
commencement of any action as to which indemnification will be requested.
 The obligations of TVA under this section shall be in addition to any
liability which TVA may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls Member within the meaning of
the Securities Act of 1933.

         

         

         

        
          
            
            

          

          
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        SECTION 18.  SEVERAL
LIABILITLY.  The obligations of each Member of the
Selling Group will be several and no Member of the Selling Group will incur any
liability as a result of the performance or failure to perform by any other
Member.

         

         

        SECTION 19.
 COMPLIANCE WITH INTERNAL REVENUE CODE.  Income on
Notes and other evidences of indebtedness issued by TVA is subject to federal
tax consequences. Accordingly, Member agrees to comply with all applicable
provisions of the Internal Revenue Code, as amended from time to time, with
respect to taxation of, information reporting about, and backup withholding on,
the Notes. 

         

         

         

         

         

        
          
            
            

          

          
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        SECTION 20.  GOVERNING
LAW. This Agreement shall be governed by and construed in
accordance with the law of the State of New York.

         

         

        If the foregoing terms and conditions are
acceptable, please have an authorized person sign and return one copy of this
Agreement to the Tennessee Valley Authority, 400 West Summit Hill Drive,
Knoxville, Tennessee, 37902, Attention: John M. Hoskins, Senior Vice President
and Treasurer.  A second copy has been included for your
files.

         

         

         

        	
                 

                 

              	
                 

                 

              	
                Very truly yours,

                 

                TENNESSEE VALLEY AUTHORITY

                 

              
	
                 

                 

              	
                By:

                 

                 

                 

              	
                 

              
	
                John M. Hoskins 

                Senior Vice President and Treasurer

                 

              
	 	 	 Date:	 ___________________________________

         

         

        	
                Accepted:

              
	
                Selling Group Member 

                (Please type)

              
	
                Signature of Authorized 

                Partner or Officer

              
	
                Name and Title of Partner or 

                Officer (Please type)

              
	
                Date:

                 

              	
                ________________________

              

         

         

         

         

        
          
            
            

          

          
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       EXHIBIT A 

       

       

       

      Authorized
User                                                                                                                               
Authorized User

       

       

       

      _____________________________                                                                                                
______________________________

      Name                                                                                                                                                 
Name

       

       

      _____________________________                                                                                                 
______________________________

      Title                                                                                                                                                     
Title

       

       

      _____________________________                                                                                                 
______________________________

      Mailing Address                                                                                                                                     Mailing
Address

       

       

      _____________________________                                                                                                 
______________________________

      City                   State           Zip
Code                                                                                                   
City                 
State               
Zip Code

       

       

      _____________________________                                                                                                 
______________________________

      Phone Number                                                                                                                                       
Phone Number

       

       

      _____________________________                                                                                                 
______________________________

      Fax Number                                                                                                                                           
Fax Number

       

       

      _____________________________                                                                                                 
______________________________

      E-mail
Address                                                                                                                                       
E-mail Address

       

       

      Check as
appropriate:                                                                                                                          
Check as appropriate:

       

      __ Viewing & Offering Authority                                                                                                            __
Viewing & Offering Authority

       

      __ Viewing & Confirming Authority                                                                                                        __
Viewing & Confirming Authority

       

      __ Viewing,
Offering, & Confirming
Authority                                                                                         
__ Viewing, Offering, &
Confirming Authority

       

       

       

       

       

       

       

    

    
      
        
        

      

      
        14ASSIGNMENT
                               OF
                       PURCHASE AGREEMENT

AEI Fund Management, Inc., a Minnesota corporation ("Assignor"),
hereby assigns one hundred percent (100%) of its interest to AEI
Income & Growth Fund 27, LLC, a Delaware limited liability
company ("Assignee"), in that certain Purchase and Sale
Agreement between Assignor and Colgate Bert Kouns, L.L.C., a
Louisiana limited liability company, dated October 31, 2007,
with respect to property located in Shreveport, Louisiana known
as Starbucks coffee shop and drive-through, and Assignee hereby
assumes all management responsibilities and obligations of
Purchaser thereunder.

                    ASSIGNOR:

                    AEI FUND MANGEMENT, INC.,
                    A Minnesota corporation

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

                    ASSIGNEE:

                    AEI INCOME & GROWTH FUND 27, LLC,
                    a Delaware limited liability company

                    By: AEI FUND MANAGEMENT XXI, INC.,
                          a Minnesota corporation
                    Its: Managing Member

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

                   PURCHASE AND SALE AGREEMENT

                                                            1
     This  Purchase and Sale Agreement (the "Agreement") entered
into as of this 31st day of October, 2007, by and between Colgate
Bert Kouns, L.L.C., a  Louisiana  limited liability company (the
"Seller") and AEI FUND  MANAGEMENT, INC., a Minnesota corporation,
or its  assigns (the "Buyer"). The date on which last party hereto
executes this Agreement is hereafter referred to as the "Effective
Date".

     In  consideration of the mutual covenants set forth  herein
and  other  good  and valuable consideration,  the  receipt  and
sufficiency  of  which  are  herby  mutually  acknowledged,  the
parties hereto covenant and agree as follows:

     1.   PROPERTY. Seller is the owner of a parcel of real property,
with all improvements thereon, known generally as 319 Bert Kouns
Industrial, Shreveport, LA 71106, currently leased for use as  a
Starbucks  coffee shop and drive-through , such  property  being
more  particularly  legally described on  Exhibit  "A"  attached
hereto (collectively, the "Property"). The Property includes all
of  Seller's  rights and interests in and to all  buildings  and
other  improvements  on  or within the Property  or  appurtenant
thereto,    including    easements,   warranties,    guaranties,
indemnities,  and  covenants, to the  extent  the  same  can  be
lawfully  transferred to the Buyer. Seller wishes  to  sell  and
Buyer  wishes  to  purchase  the  Property  on  the  terms   and
conditions set forth herein.

     2.   Lease. The Property is being sold subject to an existing
Lease of the Property, dated March 28, 2007 (the "Lease") by and
between   Seller,  as  lessor,  and  Starbucks  Corporation,   a
Washington corporation, as lessee (the "Tenant").

     3.   CLOSING DATE. The closing date on the Buyer's purchase of
the  Property (the "Closing Date") shall be on the later of  (A)
ten  (10) days from the expiration of the later of: a)  the  Due
Diligence  Period (or an Adverse Change Review  Period,  if  any
should  be  occasioned,  as set forth  below  in  Section  8.03,
whichever  is later), or b) the expiration of the Seller's  Cure
Period (defined below), or (B) on January 7, 2008..

     The foregoing is subject to Buyer and Seller satisfying all
of  its  obligations herein. However, the Closing  Date  may  be
earlier  upon the mutual agreement of the parties,  or  extended
(such as upon the occurrence of an Adverse Change Review Period)
pursuant to other specific provisions set forth herein.

     4.   PURCHASE PRICE. The purchase price for the Property is
$1,301,000  (the "Purchase Price"). If all conditions  precedent
to  Buyer's  obligations to purchase have been satisfied,  Buyer
shall  deposit  the  Purchase Price with the Closing  Agent  (as
defined below) on or before the Closing Date.

     Within  three (3) days of Effective Date of this Agreement,
Buyer  will deposit $25,000 (the "EARNEST MONEY") in an interest
bearing account with First American Title Insurance Company, 801
Nicollet  Mall,  1900 Midwest Plaza, Attn: Beth Gliedman;  phone
number:  612-305-2008; email: liedman@firstam.com (the  "Closing
Agent" or "Title Company").

     If for any reason this Agreement is terminated prior to the
expiration  of  the  Due  Diligence  Period  (or  prior  to  the
expiration  of the Adverse Change Review Period if  such  occurs
because  of  the unanticipated occurrence of Adverse Change  Due
Diligence  Documents as defined below), then the  Earnest  Money
and  any  interest accrued thereon shall be immediately returned
to Buyer.

     If the transaction contemplated hereby proceeds to Closing,
the Earnest Money and any interest accrued thereon shall be paid
to  Seller  at Closing and Buyer shall receive a credit  against
the  Purchase  Price  payable hereunder in  the  amount  of  the
Earnest  Money plus interest accrued thereon. If the Buyer  does
not terminate this Agreement as expressly allowed hereunder, the
Earnest  Money and any interest accrued thereon shall thereafter
be  deemed  non-refundable, except to  the  extent  any  of  the
contingencies   to  Buyer's  performance  hereunder   (including
without  limitation,  Seller's performance  of  its  obligations
hereunder)  shall not be satisfied. As used in  this  Agreement,
the  term  "Earnest  Money" shall mean the amount  deposited  by
Buyer,  together with all interest accrued thereon or deemed  to
have accrued thereon, as provided above.

     The balance of the Purchase Price in cash is to be
deposited by Buyer into an interest bearing escrow account with
the Closing Agent on or before the Closing Date.

     5.   ESCROW. Escrow shall be opened by Seller with the Closing
Agent upon execution of this Agreement. A fully executed copy of
this  Agreement will be delivered to the Closing Agent by Seller
and   will  serve  as  escrow  instructions  together  with  any
additional instructions required by Seller and/or Buyer or their
respective  counsels. Seller and Buyer agree to  cooperate  with
the   Closing   Agent  and  sign  any  additional   instructions
reasonably  required by the Closing Agent to  close  escrow.  If
there  is  any conflict between any other instructions and  this
Agreement, this Agreement shall control.

     6.   TITLE. Buyer shall order upon the Effective Date of this
Agreement, at its sole expense, a commitment for an ALTA Owner's
Policy  of  Title  Insurance (most recent edition)  prepared  by
Capdevielle  Title Corporation, 909 Poydras Street, 28th  Floor,
New  Orleans,  Louisiana, underwritten and to be issued  by  the
Closing  Agent,  insuring  merchantability  of  title   in   the
Property, subject only to such matters as Buyer may approve  and
contain  such  endorsements  as  Buyer  may  require  that   are
available  for  a  property  in  Louisiana,  including  extended
coverage and owner's comprehensive coverage (the "Updated  Title
Commitment"). The Updated Title Commitment shall show Seller  as
the  present fee owner of the Property and show Buyer as the fee
owner  to  be  insured and insuring Buyer in the amount  of  the
Purchase Price.

The Updated Title Commitment shall also include:

  a)   an itemization of all outstanding and pending special
     assessments and an itemization of taxes affecting the Property
     and the tax year to which they relate;

  b)   shall state whether taxes are current and if not, show the
     amounts unpaid;

  c) the tax parcel identification numbers and whether the tax
    parcel includes property other than the Property to be
    purchased.

All easements, restrictions, documents and other items affecting
title  shall  be listed in Schedule "B" of the Title Commitment.
Copies  of  All Documents referred to in the Updated  Commitment
(the  "UPDATED TITLE COMMITMENT DOCUMENTS") MUST BE ATTACHED  TO
THE UPDATED TITLE COMMITMENT.

     On or before the earlier of (i) ten (10) days after receipt
of  the  Updated Title Commitment (including the  Updated  Title
Commitment  Documents)  and the Updated Survey  (as  defined  in
Section  8.01  below),  or the last day  of  the  Due  Diligence
Period,  Buyer shall examine title to the Property and make  any
objections   thereto,  including  any  requests   for   specific
endorsements   insuring   over  said  objections   or   requests
(hereinafter  "objections").  All such  objections  or  requests
shall be made in writing or deemed waived.

     If  any objections are so made, the Seller shall be allowed
a period of ten (10) days after receipt of Buyer's objections to
respond  to Buyer in writing whether or not Seller shall attempt
to  cure,  remove or obtain insurable title over said objections
("Seller's  Title Cure Notice"). If Seller's Title  Cure  Notice
advises the Buyer of its election to attempt to satisfy or  cure
or  insure over such objections, the Seller shall have a  period
of  up to sixty (60) days following receipt of Buyer's notice of
objections  within which to cure, satisfy or  insure  over  such
objections (the period of time following the Seller's receipt of
objections  and  the  date  upon  which  the  Seller  satisfies,
removes, or insures over such objections is the "Seller's   Cure
Period").  If Seller's Title Cure Notice advises the Buyer  that
Seller shall decide to make no efforts to cure, remove or obtain
insurable title over Buyer's objections, or if Seller is  unable
to  cure,  remove or obtain insurable title over such objections
or  elects  not  to  continue such curative efforts  within  the
Seller's Cure Period, as applicable, Buyer may either (a)  waive
its objections or (b) terminate this Agreement by written notice
to  Seller  within five (5) days after the receipt  of  Seller's
Title  Cure  Notice  or after the expiration  of  Seller's  Cure
Period,  as  applicable.  If  Buyer  shall  so  terminate   this
Agreement, the Earnest Money shall be returned in full to  Buyer
immediately and neither party shall have any further  duties  or
obligations  to  the  other hereunder (except  for  those  which
expressly survive the termination of this Agreement).

     Any   matters  affecting  title  to  the  Property  on  the
Effective Date or appearing on the Title Commitment or Survey at
the  end  of  the Due Diligence Period to which Buyer  does  not
object  (as well as those for which Buyer's objection  has  been
deemed waived) shall be deemed "Permitted Exceptions". If  Buyer
shall  fail  to  terminate this Agreement within five  (5)  days
following  the expiration of the Seller's Title Cure  Notice  or
Seller  Cure  Period,  as applicable, it shall  be  conclusively
deemed  that  Buyer waived all uncured objections,  which  shall
thereafter constitute additional Permitted Exceptions.

     The  Buyer  shall  also have five (5) days  to  review  and
approve  any  easement, lien, hypothecation or other encumbrance
placed  of record affecting the Property after the date  of  the
Updated  Title Commitment. If necessary, the Closing Date  shall
be  extended  by the number of days necessary for the  Buyer  to
have  five (5) days to review any such items. Such five (5)  day
review  period shall commence on the date the Buyer is  provided
with a legible copy of the instrument creating such exception to
title.

     If  any  further  objections are so  made  based  upon  any
easement,  lien,  hypothecation or other encumbrance  placed  of
record  affecting  the Property after the date  of  the  Updated
Title  Commitment,  the Seller shall be allowed  ten  (10)  days
after  receipt  of  Buyer's objections to respond  to  Buyer  by
giving the Buyer another Seller's Title Cure Notice, in writing,
stating whether or not the Seller shall elect to cure, remove or
obtain  insurable  title  over said objections,  and  if  Seller
elects  to  undertake  such efforts, the  Seller  shall  have  a
further  Seller's  Cure Period, not to exceed thirty  (30)  days
within  which  to  doe so . If Seller shall decide  to  make  no
efforts  to cure, remove or obtain insurable title over  Buyer's
objections  or  is  not able or willing to  do  so  within  such
further  Seller's Cure Period, it shall so indicate to Buyer  in
writing  during  Seller's Cure Period and Buyer may  either  (a)
waive  its objections or (b) terminate this Agreement by written
notice  to  Seller  within five (5) days after  its  receipt  of
Seller's  Title Cure Notice or upon the expiration  of  Seller's
Cure  Period,  as applicable. If Buyer shall so  terminate  this
Agreement, the Earnest Money shall be returned in full to  Buyer
immediately and neither party shall have any further  duties  or
obligations  to  the  other hereunder (except  for  those  which
expressly survive the termination of this Agreement).

     Any matters appearing on the Title Commitment at the end of
the  aforementioned five (5) day review period by Buyer to which
Buyer  does  not  object  (as well as those  for  which  Buyer's
objection  has  been deemed waived) shall be  deemed  "Permitted
Exceptions".  If  Buyer shall fail to terminate  this  Agreement
within  five  (5)  days  period set forth  above,  it  shall  be
conclusively  deemed  that Buyer waived all uncured  objections,
which   shall   thereafter   constitute   additional   Permitted
Exceptions.

     7.  SITE  INSPECTION. As a condition precedent  to  Buyer's
obligations  hereunder,  the Property  shall  be  inspected  and
approved  by Buyer, in Buyer's sole discretion. Said  inspection
shall  be  completed within the Due Diligence Period, and  Buyer
shall  provide Seller with its written notice of any disapproval
of  the  Premises on or prior to the expiration date of the  Due
Diligence  Period.  If Buyer shall not give Seller  any  written
notice  of such disapproval, this condition precedent  shall  be
deemed  waived. Buyer agrees not to interfere with the  business
of Seller or the tenant under the Starbucks Lease with regard to
the  Property and Buyer shall restore the Property to  the  same
condition  as it existed immediately prior to the conducting  of
any  such  inspection, study or investigation  immediately  upon
completion  of  each  such inspection,  study  or  investigation
conducted by Buyer, and Buyer covenants and agrees not to  allow
or  permit  any liens or encumbrances to arise or exist  against
the  Property  or  any  part thereof as a  result  of  any  such
inspections  or  investigations and to  immediately  remove  and
cause  to  be  released of record any such liens or encumbrances
placed on the Property or any part thereof in violation of  this
provision.  Buyer  may  not  perform  any  invasive  testing  or
investigations upon the Property. Buyer shall indemnify,  defend
and  hold  Seller harmless from any and all loss, cost, expense,
damage, liability, mechanics' or materialmen's lien or claim  of
lien,  action  or cause of action, including without  limitation
reasonable attorneys' fees, arising from or relating to any  and
all  such  inspections, studies, investigations or entries  upon
the   Property  by  Buyer  or  its  agents  or  representatives.
Notwithstanding  anything  to the contrary  contained  elsewhere
herein, Buyer hereby acknowledges that all information furnished
by Seller to Buyer or obtained by Buyer in the course of Buyer's
investigation  of the Property, or in any way  arising  from  or
relating to any and all studies or entries upon the Property  by
Buyer,  its  agents  or representatives,  shall  be  treated  as
confidential  information  and  further,  that   if   any   such
confidential information is
disclosed  to  third  parties, Seller  may  suffer  damages  and
irreparable   harm.  In  connection  therewith,   Buyer   hereby
expressly  understands, acknowledges and agrees (i)  that  Buyer
will  not  disclose any of the contents or information contained
in  any  reports  or  studies made in  connection  with  Buyer's
investigation   of   the  Property,  in  any   form   whatsoever
(including, but not limited to, any oral information received by
Buyer  during the course of Buyer's inspection of the Property),
to   any  party  other  than  the  Seller,  Seller's  agents  or
representatives, or Buyer's agents, representatives, consultants
or  potential institutional lenders, and other than as  required
by  applicable law or process of law, without the prior  express
written   consent  of  Seller  (which  consent  shall   not   be
unreasonably  withheld); (ii) to furnish Seller with  copies  of
all  reports  or  studies made by third  parties  (but  not  any
reports  or studies generated internally by Buyer) in connection
with  Buyer's inspection, study or investigation of the Property
within  a  reasonable  time (not to exceed  ten  (10)  days)  of
receipt of same by Buyer, provided that prior to Buyer's release
of  the same to Seller, the Seller reimburses the Buyer for  the
expense  of  such reports; and (iii) that Seller is  relying  on
Buyer's  covenant  not  to  disclose  any  of  the  contents  or
information  contained  in  any such reports  or  investigations
prior  to  its acquisition of the Property to any third  parties
other  than  the  Seller's  agents or  representatives,  or  its
agents,  representatives, consultants or potential institutional
lenders  as  provided  above (all  of  which  is  deemed  to  be
confidential  information by the provisions of this  paragraph).
The  foregoing  covenants and indemnity shall expressly  survive
the Closing or the earlier termination of this Agreement.

     8.   DUE DILIGENCE AND DUE DILIGENCE PERIODS.

     8.01  Due  Diligence  Documents and Due  Diligence  Period.
Buyer  shall have a "DUE DILIGENCE PERIOD" of thirty  (30)  days
after the Effective Date to review and approve the Due Diligence
Documents   (described  below)  and  to  conduct  all   of   its
inspections  or  terminate this Agreement in accordance  to  the
terms hereof.

     WITHIN TEN (10) BUSINESS DAYS FOLLOWING THE EFFECTIVE DATE,
THE  SELLER  SHALL  FURNISH THE BUYER WITH THE DOCUMENTS  LISTED
BELOW   (THE  "DUE  DILIGENCE  DOCUMENTS").  THE  DUE  DILIGENCE
DOCUMENTS  SHALL  BE  SENT UNDER COVER  OF  CORRESPONDENCE  FROM
SELLER  TO  BUYER  ADVISING BUYER WHICH  OF  THE  DUE  DILIGENCE
DOCUMENTS  ARE  NOT  BEING  PROVIDED BECAUSE  THEY  ARE  NOT  IN
SELLER'S POSSESSION.

     The  following Due Diligence Documents are to be  delivered
by  Seller  at Seller's expense (unless specifically  designated
herein  to be obtained by Buyer), and such documents  to  be  of
current or recent date and certified to Buyer, or otherwise  the
most recent of such item in Seller's possession.

     a)   Copies of Seller's existing Owner's Title Policy for the
         Property, with copies of its underlying documents, if in
         Seller's possession;

     b)    Seller  shall provide to Buyer a copy of the Seller's
         current existing as-built ALTA survey and/or existing boundary
         ALTA survey of the Property ("Existing Survey"). During the Due
         Diligence Period, Buyer, at Buyer's sole expense shall obtain an
         updated as-built ALTA Survey (the "Updated Survey") certified to
         "AEI Fund Management, Inc., its successors and/or assigns" and
         Title

        Company, and in accordance with the requirements set
        forth in Exhibit "B" attached hereto;

    c)   A complete copy of the Lease and Guaranty of Lease, if any,
        and any amendments thereto, including but not limited to
        amendments, assignments of lease and/or letter agreements,
        commencement  agreements, memorandum of leases,  project
        acceptance letter (wherein Tenant accepts possession of the
        property, if Tenant shall have issued the same or similar) and
        the  most  recent tenant estoppel currently in  Seller's
        possession;

    d)   Seller, at its sole expense, shall provide Buyer with its
        existing Phase I Environmental Site Assessment Report...During
        the Due Diligence Period, Buyer shall obtain, at its own
        expense, an Updated Phase I Environmental Site Assessment report
        in accordance to ASTM 1527-05 guidelines ("Updated Phase I ESA")
        certified to "AEI Fund Management, Inc, its successors and
        assigns";

    e)   A copy of the Tenant's and Seller's existing insurance
        certificate(s) or evidence of the same for the Property pursuant
        to the Lease;

    f)   If in Seller's possession, any zoning information
        concerning the current zoning of the Property;

    g)   A copy of the soils suitability report, if in Seller's
        possession;

    h)   A copy of an existing MAI appraisal of the Property, if in
        Seller's possession;

    i)   A copy of the Certificate of Occupancy from the governing
         municipality, if in Seller's possession;

    j)   If in Seller's possession, Certificate of Substantial
         Completion executed by the project architect and/or general
         contractor for the improvements;

    k)   Copies of the existing final building plans and
         specifications for the improvements, if in Seller's possession;

    1) A copy of the most recent real estate tax statement for
        the Property if in Seller's possession;

     m)   A rent accounting for the last twelve (12) months (or such
         shorter period reflecting Tenant's occupancy of the Property)
         showing when Seller received each check from Tenant;

     n)   Copies of any and all certificates, permits, licenses and
         other authorizations of any governmental body or authority which
         are  necessary to permit the use and occupancy  of  the
         Improvements, if in Seller's possession; and

    o) Copies  of  any  and  all  written warranties  respecting
        construction  of  the improvements,  including  but  not
        limited  to the roof, HVAC system, structural,  plumbing
        or  electrical that have not expired by their terms, and
        assignments thereof to Tenant, issued to or required  to
        be  provided  to Tenant as designated in the  Lease,  if
        any.  Buyer will require any and all written warranties,
        which have not expired and have not been transferred  to
        Tenant, to be transferred to Buyer on the Closing  Date,
        to  the  extent  that the same are lawfully  assignable,
        and  without  warranty by the Seller. In the  event  the
        warranties are unable to be transferred to Buyer on  the
        Closing  Date, Seller shall provide Buyer with a  letter
        of  undertaking  wherein Seller agrees  to  transfer  at
        Seller's  cost and expense the warranties  into  Buyer's
        name   or   to  obtain  consents  to  the  transfer   of
        warranties,   if  such  transfer  is  not  automatically
        allowed.

     (All of the above described documents (a) through (i) are
hereinafter collectively the "DUE DILIGENCE DOCUMENTS").

     At  any  time  during the Due Diligence Period,  Buyer  may
cancel this Agreement for any reason, in its sole discretion, by
delivering  a cancellation notice, return receipt requested,  to
Seller and Closing Agent on or before the expiration of the  Due
Diligence Period and the Earnest Money shall be returned in full
to  Buyer  immediately and neither party shall have any  further
duties  or  obligations to the other hereunder (except  for  any
obligation   expressly  surviving  the   termination   of   this
Agreement).

     If  notice  of  termination is not given on or  before  the
expiration  of the Due Diligence Period, all such matters  shall
be  deemed  acceptable and all such conditions satisfied  and/or
waived and the right to termination under Section 8.01 shall  be
extinguished  and  the Earnest Money shall be non-refundable  to
Buyer,  except  in  the  event: (i) of  Seller's  default;  (ii)
Buyer's  termination hereof based upon receipt  of  any  Adverse
Change Documents as defined below as set forth in Section  8.03;
or (iii) pursuant to Buyer's right to terminate as otherwise set
forth  herein, in which case the Earnest Money shall be returned
to Buyer.

     8.02  Form  of Closing Documents. At least seven  (7)  days
prior  to the end of the Due Diligence Period, Seller shall,  at
its  sole expense, provide to Buyer the following documents, and
Seller  and  Buyer  shall agree on the  form  of  the  following
documents,  which are to be delivered to Buyer  on  the  Closing
Date  by  Seller (and executed by Seller, Tenant, and  Buyer  as
appropriate) as set forth in Section 14 hereof:

     (a)  An Act of Sale with limited warranty (the "Deed") dated as
          of the Closing Date, conveying the Land according to the legal
          description attached hereto as Exhibit "A", the Deed being
          subject to the Permitted Exceptions;

     (b)  Seller's Affidavit as may be required by the Title Company;

     (c)  FIRPTA Affidavit;

     (d)  Assignment and Assumption of the Lease, in the form
          attached hereto and incorporated herein as Exhibit "C";

    (e)  A generic Assignment of warranties in the form as attached
          hereto and incorporated herein as Exhibit "D"; and

    (f)  Estoppel from Tenant, in a form set forth in the Starbuck's
          Lease, and otherwise, reasonably satisfactory to Buyer.

In the event that Seller and Buyer do not reach mutual agreement
on  the  form  of the above described documents (a)  through  (0
prior  to  the  end  of the Due Diligence Period,  or  the  same
delivered by Seller on the Closing Date, this Agreement  may  be
terminated by either Seller or Buyer and the Earnest  Money  and
accrued  interest  shall  be  returned  in  full  to  the  Buyer
immediately and neither party shall have any further  duties  or
obligations  to  the other hereunder (except for any  obligation
expressly surviving the termination of this Agreement).

     8.03  ADVERSE  CHANGE DUE DILIGENCE DOCUMENTS  AND  ADVERSE
CHANGE REVIEW PERIOD. As soon as available, up until the Closing
Date  (the "Adverse Change Review Period"), Seller shall deliver
to Buyer the following items for review and acceptance:

     (a)  Any documents or written summary of facts known to
     Seller that materially
          change or render incomplete, invalid, or inaccurate
          any of the Due Diligence
          Documents (collectively, if any, the "Adverse Change
          Due Diligence
          Documents").

     If  necessary, the Closing Date shall be extended to  allow
Buyer to have ten (10) days to examine and to accept all of  the
above-described  Adverse Change Due Diligence  Documents.  After
Buyer's  receipt and review of the Adverse Change Due  Diligence
Documents, Buyer may cancel this Agreement if any of the Adverse
Change  Due Diligence Documents are not acceptable to Buyer,  in
its  sole  discretion, by delivering a cancellation  notice,  as
provided herein, to Seller and Closing Agent prior to the end of
the  Adverse Change Review Period. Such notice shall  be  deemed
effective  upon  receipt by Seller. If Buyer so terminates  this
Agreement,  the  Earnest  Money and accrued  interest  shall  be
returned  in  full  to Buyer immediately and thereafter  neither
party  shall have any further duties or obligations to the other
hereunder.

     It shall be a condition precedent to Buyer's obligations to
close hereunder that there have been no material changes in  any
of  the information reflected in the Due Diligence Documents  or
Adverse  Change Due Diligence Documents known to Seller and  not
disclosed to the Buyer after the date of such document and prior
to closing.

     8.04. As Is" Purchase of Property. On the Closing Date  the
Buyer  will  take  title to the Property in "as  is,  where  is"
condition and with all faults, and at Buyer's sole risk. The Act
of Sale will contain the following text:

"the  property is being sold without representation or warranty,
express  or  implied, except as expressly herein  provided,  and
subject  to  any  matters  of record  set  forth  herein.  buyer
acknowledges and agrees that the property is being sold "as  is,
where  is,"  and  this sale is made without  any  warranties  or
representations whatsoever with respect to the condition of  the
property  or  any of its components, parts or contents  or  with
respect  to  fitness of the property or any of  its  components,
parts or

CONTENTS  FOR  ANY  PARTICULAR  OR  INTENDED  USE,  PURPOSE  OR
CONDITION,  INCLUDING FURTHER, WITHOUT ANY  REPRESENTATIONS  OR
WARRANTIES   AS   TO  OR  CONCERNING  THE  CONDITION   OF   ANY
IMPROVEMENTS  ON THE PROPERTY, THE EXISTENCE OF  ANY  TOXIC  OR
HAZARDOUS  MATERIALS, WASTE OR ENVIRONMENTAL  CONTAMINANTS,  OR
WITH  RESPECT TO THE COMPLIANCE OF THE PROPERTY WITH ANY  LAWS,
ALL  OF  WHICH  SUCH WARRANTIES OR REPRESENTATIONS  ARE  HEREBY
DISCLAIMED  BY SELLER AND WAIVED BY BUYER. BUYER DECLARES  THAT
IT  HAS EXAMINED THE PROPERTY PRIOR TO THE DATE HEREOF AND THAT
IT  IS  SATISFIED WITH THE RESULTS OF ITS EXAMINATIONS AND  THE
CONDITION  OF THE PROPERTY. THE BUYER SPECIFICALLY  WAIVES  ALL
CLAIMS  AND ALL CAUSES OR RIGHTS OF ACTION WHICH BUYER  HAS  OR
MAY  HAVE AGAINST SELLER WITH RESPECT TO THE PHYSICAL CONDITION
OF  THE  PROPERTY  AND  ANY DEFECTS, IF ANY,  THEREIN,  WHETHER
APPARENT  OR  LATENT, WHETHER KNOWN OR UNKNOWN  TO  SELLER,  OF
EVERY  NATURE AND KIND WHATSOEVER. BUYER ALSO WAIVES ANY RIGHTS
IT  HAS  OR  MAY HAVE TO COMMENCE AN ACTION IN REDHIBITION,  TO
RESCIND  THE  SALE OR TO DEMAND A REDUCTION OF  PURCHASE  PRICE
PURSUANT  TO  LOUISIANA CIVIL CODE ARTICLES 2520 THROUGH  2548,
INCLUSIVE,  IN CONNECTION WITH THE PROPERTY HEREBY CONVEYED  TO
IT  BY  SELLER. BY ITS SIGNATURE, BUYER EXPRESSLY  ACKNOWLEDGES
ALL  SUCH  WAIVERS AND THE EXERCISE OF BUYER'S RIGHT  TO  WAIVE
WARRANTY PURSUANT TO LOUISIANA CIVIL CODE ARTICLE 2548. WITHOUT
IN  ANY  WAY  LIMITING THE GENERALITY OF THE  FOREGOING,  BUYER
ACKNOWLEDGES  THAT THE FOREGOING WAIVERS AND  DISCLAIMERS  HAVE
BEEN  BROUGHT  TO ITS ATTENTION AND THAT ALL OF  THE  FOREGOING
WAIVERS AND DISCLAIMERS OF WARRANTY ARE OF THE ESSENCE OF  THIS
TRANSACTION  AND  THAT IT WOULD NOT HAVE BEEN  MADE  OTHERWISE.
WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER  HEREBY
EXPRESSLY WAIVES, AND RELEASES SELLER FROM, ANY AND ALL CLAIMS,
DEMANDS,   CAUSES  OR  RIGHTS  OF  ACTION,  IN   REIMBURSEMENT,
CONTRIBUTION  OR OTHERWISE, THAT BUYER HAS OR MAY HAVE  AGAINST
SELLER ARISING OUT OF DAMAGES, LOSSES, COSTS (INCLUDING WITHOUT
LIMITATION  COSTS  OF  INVESTIGATION AND/OR  REM  EDIATION)  OR
LIABILITIES  INCURRED BY OR IMPOSED ON BUYER OR ITS  SUCCESSORS
OR  ASSIGNS BASED UPON THE EXISTENCE OF ANY HAZARDOUS MATERIALS
IN, ON, UNDER OR FROM THE PROPERTY."

                                        Buyer's Initials

     9.  CLOSING  COSTS. Seller shall pay the following  closing
costs:  mall  recording  costs  associated  with  the  Deed  and
Assignment and Assumption of Lease; (ii) one half of all  escrow
fees of Buyer and Seller (iii) any and all brokerage commissions
owed by Seller; and (iv) the premium for a comprehensive Owner's
Title insurance policy in the amount of the purchase price,  and
all   costs   associated  with  recording  any  document(s)   or
instrument(s) necessary to cure any title objections  raised  by
Buyer and not otherwise removed or satisfied by the Seller on or
prior to Closing.

          Buyer  shall  pay the cost of; (i) an ALTA  survey  or
update  of the Seller's current survey of the Property  (ii)  an
updated  Phase I ESA report if Buyer elects to obtain the  same;
(iii) an updated title commitment/search and and any abstracting
or  examination  expenses associated  with  the  same,  and  any
special  endorsements it may require or request on  its  Owner's
Title  Policy (except that Seller shall pay for any endorsements
required  to  insure over any of Buyer's title  objections  that
Seller  undertakes to cure and Seller shall pay  for  any  costs
associated  with  the  removal of the  standard  exceptions  for
mechanic's  liens and real estate taxes unpaid but not  yet  due
and payable), and (iv) one half of any escrow fees charge by the
Closing Agent.

          Each party will pay its own attorneys' fees to close
          this transaction.

     10.  REAL ESTATE TAXES AND ASSESSMENTS. Seller represents to
Buyer  that to the best of its knowledge, all real estate  taxes
and installments of special assessments due and payable prior to
the  year of Closing have been or will be paid in full as of the
Closing Date. Seller represents to Buyer that all unpaid  levied
and  pending special assessments payable in the year of  Closing
are  paid by the Tenant and shall be the responsibility  of  the
Tenant under the Lease after the Closing Date.

    In  the event Tenant does not pay any special assessments or
real  estate  taxes that are the responsibility  of  the  Tenant
under the Lease, Seller and Buyer agreed to each pay its prorata
share of said assessments or taxes as of the Closing Date.

     The provisions of this paragraph 10 shall survive Closing.

     11.  PRORATIONS. The Buyer and the Seller, as of the Closing
Date,  shall prorate: (i) all rent due under the Lease, (ii)  ad
valorem  taxes, personal property taxes, charges or  assignments
affecting the Property (on a calendar year basis), (iii) utility
charges,  including  charges for water,  gas,  electricity,  and
sewer,  if  any,  (iv) other expenses relating to  the  Property
which  have  accrued but not paid as of the Closing Date,  based
upon  the most current ascertainable tax bill and other relevant
billing information, including any charges arising under any  of
the encumbrances to the Property. To the extent that information
for  any such proration is not available on the Closing Date  or
if  the actual amount of such taxes, charges or expenses differs
from  the  amount  used in the prorations at closing,  then  the
parties  shall  make  any  adjustments  necessary  so  that  the
prorations at closing are adjusted based upon the actual  amount
of  such  taxes, charges or expenses. The parties agree to  make
such reprorations as soon as possible after the actual amount of
real  estate  taxes,  charges or expenses  prorated  at  closing
becomes available, provided however that no actual proration  of
such  taxes,  charges or expenses shall occur unless  and  until
Tenant  has failed to pay the same when due. In the event Tenant
does  not  pay any expenses that are the responsibility  of  the
Tenant under the Lease, Seller and Buyer agreed to each pay  its
prorata  share of said taxes, charges, and expenses  as  of  the
Closing  Date. This provision and the respective obligations  of
the parties shall survive Closing.

     12.  SELLER'S REPRESENTATIONS AND WARRANTIES. Seller represents
and warrants as of this date and to the best of Seller's
knowledge that:

     (a)  Except for this Agreement and the Lease between Seller and
          Tenant, and those matters disclosed in the materials delivered
          to Buyer pursuant to Sections 6 and 8, it is not aware of any
          other agreements or leases with respect to the Property.

     (b)  Seller has all requisite power and authority to consummate
          the transaction contemplated by this Agreement and has by proper
          proceedings duly authorized the execution and delivery of this
          Agreement and the consummation of the transaction contemplated
          hereunder.

     (c)  Seller does not have any actions or proceedings pending,
          which would materially affect the Property or Tenant, except
          matters fully covered by insurance;

    (d) The   consummation  of  the  transactions   contemplated
         hereunder,  and the performance of this  Agreement  and
         the  delivery of the Deed to Buyer, will not result  in
         any  breach  of,  or  constitute a default  under,  any
         instrument  to  which Seller is a  party  or  by  which
         Seller may be bound or affected;

    e) All    of    Seller's    covenants,    agreements,    and
         representations  made  herein,  and  in  any  and   all
         documents  which  may  be  delivered  pursuant  hereto,
         shall  survive  the delivery to AEI  of  the  Deed  and
         other  documents  furnished  in  accordance  with  this
         Agreement,  and the provision hereof shall continue  to
         inure  to  Buyer's  benefit  and  its  successors   and
         assigns  for  a period of six (6) months following  the
         Closing Date;

    (f)  To the knowledge of the Seller, the Property is in good
          condition, substantially undamaged by fire and other hazards,
          and  has not been made the subject of any condemnation
          proceeding;

    (g)  To the knowledge of the Seller, the use and operation of
          the Property now is in full compliance with applicable local,
          state  and  federal laws, ordinances, regulations  and
          requirements;

    (h)  Seller has not caused or permitted the Property to be in
          violation of any federal, state or local law, ordinance or
          regulations relating to industrial hygiene or  to  the
          environmental conditions, on, under or about the Property,
          including, but not limited to, soil and groundwater conditions.
          There is no proceeding or inquiry by any governmental authority
          with respect to the presence of hazardous materials on the
          Property or the migration of hazardous materials from or to
          other property;

    (i)  The transaction contemplated herein does not represent a
          fraudulent conveyance by Seller;

    (j)  Neither Seller nor, to Seller's current, actual knowledge,
          any of Seller's partners, are an entity or person: (i) that is
          listed in the Annex to, or is otherwise subject to the
          provisions of Executive Order 13224 issued on September 24, 2001
          ("E013224"); ii) whose name appears on the United States
          Treasury Department's Office of Foreign Assets Control ("OFAC")
          most current list of "Specifically Designated National and
          Blocked Persons" (which list may be published from time to time
          in various mediums including, but not limited to, the OFAC
          website,
          (http://www.treas.gov/offices/enforcement/offices/enforcement.pd
          t); (iii) who commits, threatens to commit or supports
          "terrorism," as that term is defined in E013224; (iv) is subject
          to sanctions of the United States government or is in violation
          of any federal, state, municipal or local laws, statutes, codes,
          ordinances, orders, decrees, rules or regulations relating to
          terrorism or money laundering, including, without limitation,
          E013224 and the Uniting and Strengthening America by Providing
          Appropriate Tools Required to Intercept and Obstruct Terrorism
          Act of 2001; or (v) who is otherwise affiliated with

         any  entity or person listed above (any and all parties
         or  persons  described in subsections (i) -  (v)  above
         are  herein  referred  to  as a  "Prohibited  Person").
         Neither  Seller  nor its members shall  knowingly:  (A)
         conduct any business, nor engage in any transaction  or
         dealing,  with  any Prohibited Person,  including,  but
         not   limited  to,  the  making  or  receiving  of  any
         contribution of funds, goods, or services,  to  or  for
         the  benefit of a Prohibited Person; or (B)  engage  in
         or  conspire  to engage in any transaction that  evades
         or  avoids, or has the purpose of evading or  avoiding,
         or  attempts  to  violate, any of the prohibitions  set
         forth in E013224; and

    (k) These Seller's representations and warranties deemed  to
         be  true  and  correct as of the Closing Date.  If  the
         Seller  shall  notify  Buyer  of  a  change  in   these
         representation  and  warranties prior  to  the  Closing
         Date, the Buyer shall get five (5) days to review  such
         change  and terminate this Purchase Agreement if  Buyer
         deems   necessary.   If  Buyer   so   terminates   this
         Agreement, the Earnest Money shall be returned in  full
         to Buyer immediately.

    These  representations  and  warranties  shall  survive  the
Closing  for  a  period of six (6) months. As used  herein,  the
terms   "Seller's  knowledge"  or  to  the  "best  of   Seller's
knowledge"  refer  and  are  limited  to  the  actual   personal
knowledge of Al Davis.

    13.    BUYER'S   REPRESENTATIONS   AND   WARRANTIES.   Buyer
represents and warrants to Seller that:

     (a)  Buyer has all requisite power and authority to consummate
         the transaction contemplated by this Agreement and has by proper
         proceedings duly authorized the execution and delivery of this
         Agreement and the consummation of the transaction contemplated
         hereunder;

     (b)  To Buyer's knowledge, neither the execution and delivery of
         this  Agreement nor the consummation of the transaction
         contemplated hereunder will violate or be in conflict with any
         agreement or instrument to which Buyer is a party or by which
         Buyer is bound; and

     (c)  Neither Buyer nor, to the best of Buyer's knowledge, any of
          Buyer's members, are an entity or person: (i) that is listed in
          the Annex to, or is otherwise subject to the provisions of
          Executive Order 13224 issued on September 24, 2001 ("E013224");
          ii)  whose name appears on the United States  Treasury
          Department's Office of Foreign Assets Control ("OFAC") most
          current list of "Specifically Designated National and Blocked
          Persons" (which list may be published from time to time in
          various mediums including, but not limited to, the OFAC website,
          (http ://www.treas. gov/offi enforcement/ofac/sdn/tllsdn. p d
          I); (iii) who commits, threatens to commit or supports
          "terrorism," as that term is defined in E013224; (iv) is subject
          to sanctions of the United States government or is in violation
          of any federal, state, municipal or local laws, statutes, codes,
          ordinances, orders, decrees, rules or regulations relating to
          terrorism or money laundering, including, without limitation,
          E013224 and the Uniting and
          Strengthening  America by Providing Appropriate  Tools
          Required  to Intercept and Obstruct Terrorism  Act  of
          2001;  or  (v)  who is otherwise affiliated  with  any
          entity or person listed above (any and all parties  or
          persons  described in subsections (i) - (v) above  are
          herein  referred to as a "Prohibited Person"). Neither
          Buyer nor its members shall knowingly: (A) conduct any
          business,  nor engage in any transaction  or  dealing,
          with any Prohibited Person, including, but not limited
          to,  the  making  or receiving of any contribution  of
          funds, goods, or services, to or for the benefit of  a
          Prohibited  Person; or (B) engage in  or  conspire  to
          engage  in  any transaction that evades or avoids,  or
          has the purpose of evading or avoiding, or attempts to
          violate, any of the prohibitions set forth in E013224.

     These Buyer's representations and warranties deemed to be
     true and correct as of the Closing Date and shall survive
     the Closing for a period of six (6) months.

     14.  CLOSING.

     (a)  On or before the Closing Date, with simultaneous  copy
to Buyer, Seller will deposit into escrow with the Closing Agent
the following documents on or before the Closing Date:

     (1)  The Deed, conveying title to the Property to Buyer, in form
          and substance as agreed to between Seller and Buyer during the
          Due Diligence Period, with a warranty only as to the acts and
          deeds of the Seller during the course of its ownership of the
          Property, only, and in "as is, where is" condition as set forth
          in section 8.04 of this Agreement;

     (2)  Estoppel letter from Tenant, in form and substance as
          agreed to between Seller and Buyer during the Due Diligence
          Period;
(3)  Affidavit of Seller, in form and substance as agreed to
between Seller and Title Company, during the Due Diligence
Period;

     (4)  FIRPTA Affidavit, in form and substance as agreed to
          between Seller and Buyer during the Due Diligence Period;

     (5)  Seller's counterpart to the Assignment and Assumption of
          the Lease in the form and substance as attached hereto and
          incorporated herein as Exhibit "C", accompanied by the original
          Lease and originals of any and all documentation modifying the
          Lease, including but not limited to, assignments, amendments,
          commencement agreement, memorandum of lease, and letter
          agreements;

     (6)  Assignment and assumption of warranties in the form and
          substance as attached hereto and incorporated herein as Exhibit
          "D";

     (7)  Tenant's Certificate of Insurance naming Buyer as
          additional insured and/or loss payee, as required by the Lease;

    (8)  a  down-dated  title commitment for  an  owner's  title
          insurance policy, reflecting only Permitted Exceptions and
          endorsements required by Buyer during the Due Diligence Period;

    (9)  Notice of Sale to Tenant; and

    (10) A letter from Seller to Buyer wherein the Seller itemizes
          (in percentages totaling 100%), the following percentages of
          costs of the Premises: land acquisition, soft costs, building
          construction, and site work (this assists Buyer in allocating
          the Property onto its books at Closing).

(b)   On  or  before  the Closing Date, Buyer will  deposit  the
following  with  the Closing Agent: i) balance of  the  Purchase
Price;  and  ii) its counterpart to the Deed and the  Assignment
and Assumption of Lease.

(c)  Both parties will sign and deliver to the Closing Agent any
other documents reasonably required by the Closing Agent and/or
the Title Company.

     15. TERMINATION. This Agreement may be terminated prior  to
closing  at  Buyer's option (and the Earnest Money  returned  to
Buyer  in full immediately) in the event of any of the following
occurrences:

     (a)  Seller fails to comply with any of the terms hereof for a
          period of ten (10) days after receipt of written notice from
          Buyer to Seller requesting compliance. However, if such matter
          cannot be cured within ten (10) days, and Seller has commenced
          cure within such ten (10) day period and is diligently pursuing
          such cure, Seller shall be afforded such additional time, not to
          exceed thirty (30) days, as is necessary to cure such matter. If
          necessary, the Closing Date shall be extended so long as Seller
          is diligently pursuing a cure pursuant to this Section 15(a);

     (b)  A default exists in any material financial obligation of
          Seller or Tenant under the Starbuck's Lease;

     (c)  Any representation made or contained in any submission from
          Seller proves to have been knowingly untrue, substantially false
          or misleading when made, or any representation made or contained
          in any submission of a Due Diligence Document from a third party
          proves to have been knowingly untrue, substantially false or
          misleading when made;

     (d)  There has been a material adverse change in the financial
          condition of Tenant or there shall be a material action, suit or
          proceeding pending or threatened against Seller which affects
          Seller's ability to perform under this Agreement or against
          Tenant which affects their respective abilities to perform under
          the Lease;

     (e)  Any bankruptcy, reorganization, insolvency, withdrawal, or
          similar proceeding is instituted by or against Seller or Tenant;

    (1)  Seller or Tenant shall be dissolved, liquidated or
    wound up;

     (g)  Tenant does not take possession of the Property and/or
          commence paying rent under the Lease by the Closing Date;

     (h)  Notice of termination given by Buyer pursuant to any right
          to do so hereunder.

     16.  DAMAGES, DESTRUCTION AND EMINENT DOMAIN. If, prior to the
Closing  Date,  the  Property, or any part  thereof,  should  be
destroyed  or  further  damaged by fire, the  elements,  or  any
cause,  due to events occurring subsequent to the date  of  this
Agreement (which damage exceeds 10% of the Purchase Price of the
Property  or  abates payment of rent by Tenant  or  renders  the
Lease  invalid), this Agreement shall become null and  void,  at
Buyer's option, exercised by written notice to Seller within ten
(10) days after Buyer has received written notice from Seller of
said  destruction  or damage. Seller, however,  shall  have  the
right  to  adjust  or  settle any insured  loss  until  (a)  all
contingencies  set  forth  in  Section  8   hereof   have   been
satisfied, or waived; and (b) any period provided for  above  in
Section 8  hereof for Buyer to elect to terminate this Agreement
has  expired  or Buyer has, by written notice to Seller,  waived
Buyer's  right to terminate this Agreement. If Buyer  elects  to
proceed  and to consummate the purchase despite said  damage  or
destruction, there shall be no reduction in or abatement of  the
Purchase  Price, and Seller shall assign to Buyer  the  Seller's
right,  title  and  interest in and to  all  insurance  proceeds
resulting form said damage or destruction to the extent that the
same are payable with respect to damage to the Property, subject
to rights of the Tenant.

     If  prior to closing, the Property, or any part thereof, is
taken by eminent domain (which taking delays commencement of the
Lease  or  delays payment of rent by the Tenant or  renders  the
Lease  invalid) this Agreement shall become null  and  void,  at
Buyer's option. If Buyer elects to proceed and to consummate the
purchase despite said taking, there shall be no reduction in, or
abatement  of,  the Purchase Price and Seller  shall  assign  to
Buyer  all the Seller's right, title and interest in and to  any
award  made,  or  to  be  made, in the condemnation  proceeding,
subject to the rights of the Tenant.

     In  the event that this Agreement is terminated by Buyer as
provided  above,  the Earnest Money shall be returned  to  Buyer
immediately   after  execution  by  Buyer  of   such   documents
reasonably  requested  by  Seller to  evidence  the  termination
hereof.

     17.  NOTICES. All notices from either of the parties hereto to
the  other shall be in writing and shall be considered  to  have
been duly given or served if sent by first class certified mail,
return  receipt requested, postage prepaid, or by  a  nationally
recognized  courier service guaranteeing overnight  delivery  to
the party at his or its address set forth below, or by facsimile
transaction to the respective fax number(s) set forth below with
printed  confirmation  of  receipt thereof,  or  to  such  other
address as such party may hereafter designate by written  notice
to the other party. Notice given in accordance herewith shall be
effective  upon  delivery to the address of the  addressee.  Any
notice  given by facsimile transmission shall be followed  by  a
hard copy or by hand delivery.

If to Seller:  Colgate Bert Kouns, L.L.C.
               Colgate Real Estate
               Partners, LP 7527
               Colgate Avenue
               Dallas, Texas 75225
               Attn: Al Davis
               Phone number: 214-987-
               1739 Facsimile: 214-
               594-2244

with a copy    Richard P. Richter
to:           Sher Garner Cahill Richter Klein &
              Hilbert, L.L.C. 909 Poydras Street,
              28th Floor
               New Orleans, Louisiana 70112
               Facsimile: 504-299-2300

               AEI Fund Management, Inc.
If to Buyer:   1300 Wells Fargo Center
               30 E. 7th Street
               St. Paul, Minnesota 55101
              Attention: George Rerat, Director of
              Acquisitions and Marissa Kim,
              Acquisitions Closing Specialist Phone
              No.: (651) 227-7333
               Fax: (651-225-8144
               Email: mkim@aeiftinds.com

With a copy to:     Michael Daugherty
               Daugherty Law Firm
               30 East Seventh Street,
               Ste 1300 St. Paul,
               Minnesota 55101
               Phone: (612) 720-0777
               Fax: 612-677-3181
               E-Mail: mbdlaw@usinternet.com

     18.  MISCELLANEOUS.

     18.1  ENTIRE  AGREEMENT; AMENDMENTS; RULE OF  CONSTRUCTION;
WAIVERS; ATTORNEYS'  FEES. This Agreement may be amended only by
written  agreement  signed by both Seller  and  Buyer,  and  all
waivers must be in writing and signed by the waiving party. Time
is  of the essence. This Agreement will not be construed for  or
against  a  party  whether or not that party  has  drafted  this
Agreement.  If  there  is any action or proceeding  between  the
parties relating to this Agreement, the prevailing party will be
entitled  to  recover  attorney's fees and  costs.  This  is  an
integrated  agreement containing all agreements of  the  parties
about  the  Property  and the other matters  described,  and  it
supersedes  any  other  agreement  or  understandings.  Exhibits
attached to this Agreement are incorporated into this Agreement.

     18.2  DEFAULT.  If  the transaction contemplated  hereunder
does  not close by the Closing Date, through no fault of  Buyer,
Buyer may terminate this Agreement and receive its Earnest Money
back  in  full immediately together with an equal amount  to  be
paid  by  Seller as liquidated damages and in lieu of any  other
remedy at law or in equity; or, the Buyer may
demand  specific  performance of the Seller's obligations  under
this   Agreement.  If  the  transaction  contemplated  by   this
Agreement does not close by the Closing Date, through  no  fault
of  Seller (if this Agreement has not been terminated  by  Buyer
pursuant  to Buyer's right to terminate hereunder),  Seller  may
either,  at  its election, terminate this Agreement and  receive
the  Earnest money in full as liquidated damages and in lieu  of
any  other remedy at law or in equity; or, the Seller may demand
specific  performance  of  the Buyer's  obligations  under  this
Agreement.

     18.3  ASSIGNMENT.  This Agreement shall  be  assignable  by
Buyer,  at  its option, in whole or in part, in such  manner  as
Buyer may determine, to an affiliate or affiliates of Buyer.

     18.4  BROKERS.  Seller shall pay any and  all  real  estate
commissions due and payable to any broker claiming commission by
and  through its representation of Seller. Buyer shall  pay  any
and  all  real estate commissions due and payable to any  broker
claiming commission by and through its representation of Buyer.

     18.5  COMPUTATION OF TIME. If the time period  or  date  by
which  any  right,  option,  or  election  provided  under  this
Agreement  must  be  exercised, or by  which  any  act  required
hereunder  must  be performed, or by which the Closing  must  be
held, expires or occurs on a Saturday, Sunday, or legal or  bank
holiday,  then  such time period or date shall be  automatically
extended  through  the close of business on the  next  regularly
scheduled business day.
     18.6  COUNTERPARTS. This Agreement may be executed  in  any
number  of counterparts, each of which will be deemed to  be  an
original  and  which together shall constitute the agreement  of
the parties hereto.

     18.7. EXPIRATION. Buyer is submitting this offer by signing
a copy of this Agreement and delivering it to Seller. Seller has
until  November  , 2007, within which time to accept this  offer
by  signing and returning this Agreement to Buyer. When executed
by  both parties, this Agreement will be a binding agreement for
valid  and sufficient consideration which will bind and  benefit
Seller, Buyer and their respective successors and assigns.

     18.8.   Sale  and  Purchase  of  Other  Property.  Seller's
obligation to sell the Property to Buyer are contingent upon the
Buyer's  concurrent  acquisition of certain  property  owned  by
Seller's  affiliate,  Colgate Breville, L.L.C.,  as  more  fully
described in, and pursuant to the terms and conditions  of  that
certain Purchase and Sale Agreement dated of even date herewith,
between  Buyer  and  Colgate  Breville,  L.L.C.  (the  "Breville
Agreement"). Buyer hereby acknowledges and agrees  that  if  the
Buyer   elects  to  terminate  this  Agreement  for  any  reason
permitted  herein  during  the Due Diligence,  at  the  Seller's
option  and  election,  the Seller may  terminate  the  Breville
Agreement,  and  that  if  the Buyer  elects  to  terminate  the
Breville  Agreement for any reason permitted therein during  the
due  diligence  period thereunder, at the  Seller's  option  and
election,  the  Seller  may terminate this Agreement.  Provided,
however, if Buyer shall terminate this Agreement or the Breville
Agreement  because  Buyer's  objections,  in  Buyer's  sole  but
commercially reasonable discretion, to matters of title, survey,
or  environmental concern, which objections Seller does not cure
within sixty (60) days of Buyer having raised said objections in
writing prior to the end of the Due Diligence Period (or Adverse
Change  Review Period, if applicable), then Seller's  option  to
terminate pursuant to this paragraph shall not apply, and  Buyer
shall be free to purchase
either Property but not the other. The term "Buyer's objections,
in  Buyer's  sole but commercially reasonable discretion"  shall
mean such adverse matters substantially similar to those matters
that  have been of commercially reasonable concern to  Buyer  in
the  past  conduct  of  its  business  of  acquiring  commercial
properties.

    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.SIGNATURES TO
                    FOLLOW ON THE NEXT PAGE.]

     IN WITNESS WHEREOF, Seller and Buyer have executed this
Agreement effective as of the date last set forth below.

SELLER:

Colgate Bert Kouns, L.L.C.,
a Louisiana limited liability company,
its Manager Cedar Top
Development, Inc., a Texas
corporation

By: /s/ Al M Davis
   Al Davis President

Date: 11/5/07

STATE OF Colorado
                ) ss.
COUNTY OF EAGLE

     On this  5th day of November before me, the undersigned, a
Notary Public in and  for  said  State, personally appeared Al Davis,
personally known  to me to be the person who executed the within
instrument as the President of Cedar Top Development, Inc, Manager
of Colgate Bert Kouns, LLC., a limited liability company, on behalf
of said Company.

                                  /s/ Darden Blow
                                     Notary Public

        [notary seal]

  My Commission Expires 09/19/2009

BUYER:

AEI FUND MANAGEMENT, INC.

By: /s/ Robert P Johnson
        Robert P Johnson its Presdient

Date: October 31, 2007

STATE OF MN       )
                  )ss
COUNTY OF RAMSEY  )

   ON this 31st day of October, 2007, before me the undersigned, a Notary Public
in and for said State, personally Robert P Johnson, personally known to me to be
the person who executed the within instrument as the President of AEI Fund
Management, Inc., a Minnesota corporation, on behalf of said corporation.

                                           /s/ Michael B Daugherty
                                              Notary Public

[notary seal]

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