Document:

Exhibit
10.45

    

    AMERICAN
SPECTRUM MANAGEMENT CO.

    AMERICAN
SPECTRUM REALTY, INC.

    7700
Irvine Center Drive, Suite 275

    Irvine,
CA 92618

    

    December
18 ,2009

    

    Evergreen
Income & Growth REIT, Inc.

    Evergreen
Realty Group, LLC

    Evergreen
Realty Advisors, Inc.

    Evergreen
Realty Property Management LLC

    Real
Property Systems Inc.

    Luke
McCarthy

    Carl
Willgeroth

    Tracy
Thomson

    Michael
Palmer

    c/o
Raymond Lee, Esq.

    Greenberg
Traurig, LLP

    3161
Michelson Drive, Suite 1000

    Irvine,
CA 92612

    

    Ladies
and Gentlemen:

    

    Reference
is made to that certain Purchase Agreement by and among the American Spectrum
Parties and the Evergreen Parties (the “Purchase Agreement”) dated December 15,
2009. Capitalized terms used herein shall have the meanings following the use of
such terms or, if no definition is so set forth, such capitalized terms shall
have the meanings set forth in the Purchase Agreement.

    

    The
Evergreen Parties have requested that certain amendments, modifications and/or
supplements be made to the Purchase Agreement. In order to continue to act in
good faith as required by the MOU, American Spectrum has agreed to such
amendments, modifications and/or supplements to the Purchase Agreement, as
follows:

    

    1.           Employee Costs. To the
extent Employee Costs (not to exceed Two Hundred Fifty Thousand Dollars
($250,000)) are incurred by American Spectrum Management Co. resulting from the
termination of former Employees of an Evergreen Party by American Spectrum
Management Co., any statutory amounts payable to such Employees who were at-will
Employees of an Evergreen Party shall not be included in the Offset Amount as
required by Section 2.6(d) of the Purchase Agreement. Moreover, Section 2.4(c)
of the Purchase Agreement shall be subject to the foregoing.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.           Future Actions by American Spectrum
Management Co. and American Spectrum Asset Co. American Spectrum
Management Co. and American Spectrum Asset Co. acknowledge that one or more of
the Evergreen Parties has fiduciary or other duties to holders of TIC Interests
and/or to other parties under certain Contracts. It is recognized that American
Spectrum Management Co. and American Spectrum Asset Co. shall have certain
obligations to these Persons by reason of certain rights being assigned to
and/or obligations being assumed by them pursuant to the Purchase Agreement
and/or by reason of Sub-Property Management Agreements which may be executed as
of the Closing Date. American Spectrum Management Co. and American Spectrum
Asset Co. shall undertake all obligations to such Persons and otherwise act in a
prudent and commercially reasonable fashion with respect to such Persons and
perform any obligations to such Persons as required by their respective
obligations to such Persons. Moreover, American Spectrum Management Co. shall
use its commercially reasonable efforts to maximize the Management Fees it earns
and collects during the Accounting Period.

    

    3.           Voluntary Termination of Management
Agreements. In the event that American Spectrum Management Co.
voluntarily and without consideration agrees to terminate a Management Agreement
during the Accounting Period without the approval of Evergreen Realty Group or
without agreeing to reassign such Management Agreement to Evergreen Realty
Group, such Management Agreement shall not be deemed terminated for purposes of
calculating the Adjusted Purchase Price pursuant to Section 2.6(c)(i) of the
Purchase Agreement.

    

    4.           Deferred Payments. Any proceeds which
would otherwise be received by the Parties entitled thereto pursuant to Section
5.14 of the Purchase Agreement shall first be applied toward the payment of any
interest and principal due by any Evergreen Party to REIT I or REIT II and thus
the proceeds of any such Deferred Payments shall not be paid to such Parties
until such time as all indebtedness (including accrued interest) due REIT I or
REIT II by any Evergreen Party has been discharged in full.

    

    5.           Evergreen Consents. Section 5.3 of the
Purchase Agreement is hereby deleted and the following substituted
therefor:

    

    “5.3.           Evergreen Consents. The Evergreen
Parties shall use their best efforts to obtain and deliver to American Spectrum
all of the consents of third Persons which are required to consummate the
transactions contemplated by this Agreement (the ‘Evergreen Consents’). The form of the
Evergreen Consents shall be subject to the reasonable approval of American
Spectrum. The Evergreen Parties and American Spectrum shall cooperate with each
other in connection with, the preparation of
and obtaining of the Evergreen Consents as soon as reasonably
possible.”

    

    6.           Typographical Corrections. The
reference to Section 5.14 in Section 2.6(b)(i) is hereby changed to Section 5.1
and the reference to Section 5.11 in Section 5.12 is changed to Section
5.12.

    

    7.           Definition of Direct Pay Liabilities.
The definition of “Direct Pay Liabilities” is hereby deleted and the following
substituted therefor:

    

    “Direct Pay Liabilities. Direct Pay
Liabilities means the monetary liabilities to be paid to the Persons upon the
conditions and in the amounts described in Section 5.1. Exhibit M to the
Purchase Agreement is hereby deleted.”

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

             

    8.           Direct Pay Liabilities. Section 5.1 is
hereby deleted and the following is substituted therefor:

    

    “5.1           Direct Pay Liabilities. American
Spectrum Management Co. agrees to assume and pay Two Hundred Thousand Dollars
($200,000) to Greenberg Traurig LLP on the Closing Date so long as a designee(s)
of American Spectrum has been added as a co-signer to all property bank
accounts. The balance of each property bank account will be transferred to
American Spectrum Management Co. as soon as is practical on or immediately after
the Closing. Evergreen Realty Group will cause each existing property bank
account to close within thirty (30) days after the Closing as is customary in
any management transition. Evergreen Realty Group will also provide American
Spectrum Management Co. at the Closing an irrevocable and unconditional letter
addressed to the financial institution(s) at which such accounts are situated
authorizing the transfer of such property bank accounts as above provided.
Payment of the balance of the Direct Pay Liabilities shall be made by American
Spectrum Management Co. promptly after Evergreen Realty Group makes request of
American Spectrum Management Co. to pay a third party vendor or similar vendor
of standard and customary services as set forth on the Aged Payable Summary as
of November 2009 of Evergreen Realty Group, a copy of which is attached hereto,
so long as (a) the payment to such third party vendor is reasonably necessary to
continue the operations of Evergreen Realty Group for the purposes set forth in
the second paragraph of Section 5.2, (b) the payee is set forth on such Aged
Payable Summary and (c) the aggregate amount so paid to all vendors does not
exceed Three Hundred Thousand Dollars ($300,000). To the extent amounts in
excess of Three Hundred Thousand Dollars ($300,000) are reasonably required to
keep the business operations effectively functioning in the Offices of Evergreen
to complete the matters referenced in the second paragraph of Section 5.2,
American Spectrum shall advance monies therefor under the American Spectrum
Note. Repayment of any amounts so advanced under the American Spectrum Note
(including interest thereon) shall be offset against the Purchase
Note.”

    

    9.           Opening of Bank Accounts. The first
paragraph of Section 5.2 shall be deleted and the following substituted
therefor:

    

    “5.2           Opening of Bank Accounts/Relocation of
Offices. On or prior to the Closing Date, American Spectrum Management
Co. shall establish bank accounts for each of the Properties to be managed by
American Spectrum Management Co. under a Contract or Sub-Property Management
Agreement. American Spectrum Management Co. shall designate the necessary
accounts and signatories. On or prior to the Closing Date, the individuals
designated by American Spectrum Management Co. shall be added as co-signatories
to all bank accounts being held by an Evergreen Party respecting any such
Property. The American Spectrum Parries and the Evergreen Parties shall
cooperate to accomplish the foregoing. As soon as possible on or after the
Closing Date, all such monies will be transferred.”

    

    10.           Purchase Note.
Notwithstanding the provisions of Section 2.6(b)(i),
the Purchase Note shall be made payable to New West Realty, Inc. Notwithstanding
the provisions of (a) Section 2.6(b)(ii)(B), Twelve Thousand Dollars ($12,000)
of interest shall be paid monthly under the Purchase Note in arrears for the
first two calendar months of 2010 and thereafter shall be paid quarterly in arrears commencing
April 1, 2010 and (b) Section 2.6(b)(ii)(F), the Purchase Note may be bifurcated
into up to four (4) promissory notes on the Adjustment Date. The Purchase Note
attached to the Purchase Agreement as Exhibit I shall be modified to incorporate
the foregoing.
 

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    11.           Windermere Apartments. The owner(s) of
Windermere Apartments (No. 24 on Exhibit E) owes Evergreen Realty
Group One Hundred Twenty Five Thousand Six Hundred Eighty Two and 63/100 Dollars
($125,682.63) in property management fees which have been earned but not
paid. As such property management fees are collected by American Spectrum
Management Co., American Spectrum Management Co. will remit same to Evergreen
Realty Group.

    

    If the
foregoing accurately sets forth our understanding, please so indicate by
executing and returning a copy of this letter.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Very
      truly yours,

                              
	 	 
	
                                American
      Spectrum Management Co.

                              
	 
      	 
      
	
                                By:

                              	
                                William
      J. Carden

                              
	
                                Name: 

                              	
                                William
      J. Carden

                              
	
                                Title:
      

                              	President
	 
      	 
      
	
                                American
      Spectrum Realty, Inc.

                              
	 
      	 
      
	
                                By:

                              	
                                William
      J. Carden

                              
	
                                Name: 

                              	
                                William
      J. Carden

                              
	
                                Title:

                              	
                                President

                              

                      

                    

                  

                

              

            

          

        

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Agreed:

                                  
	 
      	 
      
	
                                    Evergreen
      Income & Growth RBIT, Inc.

                                  
	 
      	 
      
	
                                    By:

                                  	
                                    /s/
      Luke McCarthy

                                  
	
                                    Name: 

                                  	Luke
      McCarthy
	
                                    Title:

                                  	
                                    President
      

                                  
	 
      	 
      
	
                                    Evergreen
      Realty Group, LLC

                                  
	 
      	 
      
	
                                    By:

                                  	
                                    /s/
      Luke McCarthy

                                  
	
                                    Name: 

                                  	Luke
      McCarthy
	
                                    Title:

                                  	Member

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
      

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

         

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Evergreen
      Realty Advisors, Inc.

                                          
	 
      	 
      
	
                                            By:

                                          	
                                            /s/
      Luke McCarthy

                                          
	
                                            Name: 

                                          	Luke
      McCarthy
	
                                            Title:

                                          	 
      
	 
      	 
      
	
                                            Evergreen
      Realty Property Management LLC

                                          
	 
      	 
      
	
                                            By:

                                          	
                                            /s/
      Luke McCarthy

                                          
	
                                            Name: 

                                          	Luke
      McCarthy
	
                                            Title:

                                          	Manager
	 
      	 
      
	
                                            Realty
      Property Systems Inc.

                                          
	 
      	 
      
	
                                            By:

                                          	 
      
	
                                            Name: 

                                          	 
      
	
                                            Title:

                                          	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              
                
                  	
                          /s/
      Luke McCarthy

                        
	
                          Luke
      McCarthy

                        
	 
      
	 
      
	
                          Carl
      Willgeroth

                        
	 
      
	 
      
	
                          Tracy
      Thomson

                        
	 
      
	 
      
	
                          Michael
      Palmer

                        

                

              

            

          

        

      
  

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

             

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	
                                                                            Evergreen
      Realty Advisors, Inc.

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	
                                                                            Evergreen
      Realty Property Management LLC

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	
                                                                            Realty
      Property Systems Inc.

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	 
      
	
                                                                            Luke
      McCarthy

                                                                          
	 
      	 
      
	 
      
	
                                                                            Carl
      Willgeroth

                                                                          
	 
      	 
      
	
                                                                            /s/
      Tracy Thomson 

                                                                          
	
                                                                            Tracy
      Thomson

                                                                          
	 
      	 
      
	 
      
	
                                                                            Michael
      Palmer

                                                                          

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

         

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	
                                                                            Evergreen
      Realty Advisors, Inc.

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	
                                                                            Evergreen
      Realty Property Management LLC

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	
                                                                            Realty
      Property Systems Inc.

                                                                          
	 
      	 
      
	
                                                                            By:

                                                                          	 
      
	
                                                                            Name: 

                                                                          	 
      
	
                                                                            Title:

                                                                          	 
      
	 
      	 
      
	 
      
	
                                                                            Luke
      McCarthy

                                                                          
	 
      	 
      
	
                                                                            /s/
      Carl Willgeroth 

                                                                          
	
                                                                            Carl
      Willgeroth

                                                                          
	 
      	 
      
	 
      
	
                                                                            Tracy
      Thomson

                                                                          
	 
      	 
      
	 
      
	
                                                                            Michael
      Palmer

                                                                          

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      
  

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

               

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            	
                                                                    Evergreen
      Realty Advisors, Inc.

                                                                  
	 
      	 
      
	
                                                                    By:

                                                                  	 
      
	
                                                                    Name: 

                                                                  	 
      
	
                                                                    Title:

                                                                  	 
      
	 
      	 
      
	
                                                                    Evergreen
      Realty Property Management LLC

                                                                  
	 
      	 
      
	
                                                                    By:

                                                                  	 
      
	
                                                                    Name: 

                                                                  	 
      
	
                                                                    Title:

                                                                  	 
      
	 
      	 
      
	
                                                                    Realty
      Property Systems Inc.

                                                                  
	 
      	 
      
	
                                                                    By:

                                                                  	
                                                                    /s/
      Michael Palmer

                                                                  
	
                                                                    Name: 

                                                                  	
                                                                    Michael
      Palmer 

                                                                  
	
                                                                    Title:

                                                                  	 
      
	 
      	 
      
	 
      	 
      
	
                                                                    Luke
      McCarthy

                                                                  
	 
      	 
      
	 
      	 
      
	
                                                                    Carl
      Willgeroth

                                                                  
	 
      	 
      
	 
      	 
      
	
                                                                    Tracy
      Thomson

                                                                  
	 
      	 
      
	
                                                                    /s/
      Michael Palmer 

                                                                  
	
                                                                    Michael
      Palmer

                                                                  

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      
 

      
        
           

        

        
          -8-Exhibit
10.46

    

    SECOND AMENDMENT TO PURCHASE
AGREEMENT

    

    THIS
SECOND AMENDMENT TO PURCHASE AGREEMENT (“Second Amendment”) is
made as of January 17, 2010, by and among Evergreen Realty Group, LLC, a
Delaware limited liability company (“ERG”), Evergreen
Realty Advisors, Inc., a California corporation (“Evergreen Advisors”),
Evergreen Realty Property Management LLC, a Delaware limited liability company
(“Evergreen
Management”), Evergreen Development, LLC, a California limited liability
company (“Evergreen
Development”), Evergreen Income & Growth REIT, Inc., a Virginia
corporation (“REIT
II”), Evergreen Institutional Partners Fund I, LLC (the “Institutional Fund”),
Real Property Systems – Indiana, LLC, an Indiana limited liability company
(“RPS-Indiana”), Real
Property Systems – Texas, LP, a Texas limited partnership (“RPS-Texas”), Real
Property Systems Inc., a California corporation (“RPS”), New West Realty, Inc.,
a California corporation (“New West”), Luke
McCarthy, an individual (“McCarthy”), Carl
Willgeroth, an individual (“Willgeroth”), Tracy
Thomson, an individual (“Thomson”) and Michael
Palmer, an individual (“Palmer”) and American
Spectrum Realty, Inc., a Maryland corporation (“American Spectrum”),
American Spectrum Realty Advisors, L.L.C., a Delaware limited liability company
(“American Spectrum
Advisors”), American Spectrum Asset Co., a Delaware limited liability
company (“American
Spectrum Asset”), American Spectrum Management Co., a Delaware limited
liability company (“American Spectrum
Management”) and American Spectrum Realty Operating Partnership, L.P., a
Maryland limited partnership (“American Spectrum
Partnership”).

    

    RECITALS:

    

    A.           Certain
of the Evergreen Parties and certain of the American Spectrum Parties entered
into that certain Purchase Agreement dated December 15, 2009 (the “Original Purchase
Agreement”).

    

    B.           The
Original Purchase Agreement was amended pursuant to that certain Letter
Agreement dated December 18, 2009 (the “First
Amendment”).

    

    C.           The
Parties to this Second Amendment desire to amend, modify and supplement the
Original Purchase Agreement, as amended by the First Amendment.

    

    D.           In
addition to those terms defined in this Second Amendment, capitalized terms used
in this Second Amendment shall have the meanings set forth in the Original
Purchase Agreement, as amended by the First Amendment.

    

    NOW,
THEREFORE, in consideration of the premises, representations, warranties,
covenants and agreements contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties, intending to be legally bound hereby, agree as
follows:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.           Agreement.
Notwithstanding anything to the contrary set forth in the Original Purchase
Agreement or the First Amendment, Agreement shall mean, collectively, the
Original Agreement, as amended by the First Amendment and as further amended by
this Second Amendment.

    

    2.           Parties. The Parties
shall be the Evergreen Parties and the American Spectrum Parties. The Evergreen
Parties are, individually, any of the following: ERG, Evergreen Advisors,
Evergreen Management, Evergreen Development, REIT II, Institutional Fund,
RPS-Indiana, RPS-Texas, RPS, New West, McCarthy, Willgeroth, Thomson or Palmer
and, collectively, all of the following: ERG, Evergreen Advisors, Evergreen
Management, Evergreen Development, REIT II, RPS-Indiana, RPS-Texas, RPS, New
West, McCarthy, Willgeroth, Thomson and Palmer. The American Spectrum Parties
are, individually, any of the following: American Spectrum, American Spectrum
Advisors, American Spectrum Asset, American Spectrum Management or American
Spectrum Partnership and, collectively, all of the following: American Spectrum,
American Spectrum Advisors, American Spectrum Asset, American Spectrum
Management and American Spectrum Partnership.

    

    3.           TIC Interests. The
Evergreen Parties, and each of them, jointly and severally, hereby represent
that they hold as a manager, managing member, general partner or the like, a
number of interests in limited liability companies, partnerships, joint ventures
or the like (“TIC Entities”) which TIC
Entities own an undivided interest in a Property, but that the Evergreen Parties
may not have any direct or indirect equity ownership in any such Property by
reason of their interests in the TIC Entities. Accordingly, American Spectrum
Asset Co. and the appropriate Evergreen Parties shall execute and deliver, each
to the other, at the Closing an Agreement to Appoint New Manager pursuant to
which the Evergreen Parties shall agree to cause American Spectrum Asset Co. to
succeed to the management rights of the applicable Evergreen Party in the TIC
Entities. The American Spectrum Parties and the Evergreen Parties acknowledge
that certain Evergreen Parties are members of the limited liability company
(“Central Florida
LLC”) that owns the Property known as Tampa Self Storage and Ocala Self
Storage, Tampa, Florida, and Ocala, Florida, and while the management rights in
the Central Florida LLC of certain Evergreen Parties will be assigned and
transferred to American Spectrum Management Co., the ownership rights (i.e., equity) will be
retained by the Evergreen Parties and not transferred to the American Spectrum
Parties. Similarly, the American Spectrum Parties and the Evergreen Parties
acknowledge that certain Evergreen Parties own an undivided interest in the
Property known as Arbors Senior Living, San Diego, California (“Arbors
Senior Living
Property”), and that, while management rights under the Asset Management
Agreement held by the Evergreen Entities shall be transferred to American
Spectrum Management Co., the equity interest of the Evergreen Parties (e.g., an undivided interest
in the Arbors Senior Living Property)
will not be transferred to the American Spectrum Parties, Moreover, the American
Spectrum Parties agree to discuss and consider a proposal pursuant to which the
Evergreen Parties and/or others will contribute to REIT II the Evergreen
Parties’ membership interest in the Central Florida LLC, their interest in the
Arbors Senior Living Property and/or other assets in consideration of the
issuance of Units by REIT II. Any such discussions shall be undertaken in good
faith and in the best interest of all Persons, including the existing holders of
units in REIT II.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    

    4.           REIT II and Institutional
Fund. The Evergreen Parties shall convey to American Spectrum Asset Co.
all of their right, title and interest in and to any interest the Evergreen
Parties hold in REIT II and the Institutional Fund free and clear of any and all
liens, encumbrances and adverse claims. The Evergreen Parties will take such
further actions as are reasonably requested by the American Spectrum Parties to
vest in American Spectrum Asset Co. or its designees any and all management
and/or control rights in REIT II and the Institutional Fund (e.g., designation and/or election of
manager(s), managing member(s), directors, etc.).

    

    5.           Offices of Evergreen.
The definition of “Offices of Evergreen” in the Agreement shall be modified to
read in full as follows:

    

    “Offices of
Evergreen” means the offices of any
Evergreen Party maintained at (a) 12402 Industrial Boulevard, Suite B-2;
Victorville, California, (b) 225 South Lake Avenue, Pasadena, California, and/or
(c) any other offices maintained by an Evergreen Party for the operation of the
business of an Evergreen Party (other than that certain space occupied by New
West in Victorville, California).”

    

    6.           Closing Date/Accounting
Period. Notwithstanding
anything to the contrary set forth in the Original Agreement or First Amendment,
the Closing Date shall be 12:01 a.m. January 17, 2010 and all adjustments
respecting such liabilities and revenues shall be adjusted as of such time. A
full accounting of any such liabilities and/or revenues shall be approved by the
American Spectrum Parties and the Evergreen Parties within 90 days after the
Closing Date. Notwithstanding the foregoing, the Accounting Period to determine
the Adjusted Purchase Price shall continue to be the period commencing on
January 1, 2010 and ending on December 31, 2010 inasmuch as the accounting
required to be undertaken with respect to the Accounting Period will be easier
to accomplish by the Parties for such period than for a period which does not
coincide with the beginning and end of a calendar year.

    

    7.           Excluded Liabilities: REIT
I. Notwithstanding anything to the contrary set forth in the Original
Agreement and the First Amendment, to the extent American Spectrum Management
Co. is required to assume any obligations or liabilities with respect to REIT I
from and after the Closing Date pursuant to the terms of the Agreement, such
assumption shall commence on October 27, 2009 rather than the Closing Date,
October 27, 2009, the date that certain representatives of American Spectrum
were elected to the Board of Directors of REIT I.

    

    8.           Intentionally
Omitted.

    

    9.           Returns. The American
Spectrum Parties acknowledge that certain Evergreen Parties have not filed their
2008 federal Returns and that, when prepared and filed, such Returns may have an
effect upon the Returns filed or to be filed by such Evergreen Parties in
various states. The Evergreen Parties shall prepare and file, or cause to be
prepared and filed, all Returns required to be prepared and filed by the
Evergreen Parties applicable to periods prior to the Closing Date as soon as
reasonably practical and, if necessary, amend any Returns required to be
amended, modified or supplemented.

    

    10.         Intentionally
Omitted.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    

    11.         Future Employment of
Employees. Notwithstanding anything to the
contrary set forth in the Original Agreement or the First Amendment, (a) the
date until which American Spectrum Management Co. shall agree to continue the
employment of any Employee shall be changed from March 15, 2010 until the date
which is sixty two (62) days after the Closing Date, (b) no American Spectrum
Party shall have any liability and/or responsibility for any amounts due any
Employee who does not accept continued employment with American Spectrum
Management Co. and (c) no American Spectrum Party shall have any liability
and/or responsibility due any Employee who accepts voluntary employment with
American Spectrum Management Co. and thereafter voluntarily terminates his
employment with American Spectrum Management Co. for any amounts accrued prior
to the Closing Date. Notwithstanding anything to the contrary contained in the
Purchase Agreement, as amended, American Spectrum’s obligations with respect to
the Employees shall commence at 12:01 a.m. January 17, 2010 and (except as
otherwise provided in Section 1 of the First Amendment) no American Spectrum
Party shall have any obligations with respect to the Employees prior to such
time.

    

    12.         Typographical
Corrections. The reference to “Evergreen Party” in the fourth line of
Section 7.2(c) of the Original Agreement shall be changed to “American Spectrum
Party” and the phrase “Subject to Section 2.3(b)” in the first line of Section
7.3(b) of the Original Agreement is hereby deleted.

    

    13.         Deliveries. The
Parties acknowledge that certain of the documents to be delivered at the Closing
which are attached to the Original Agreement will be modified to accommodate the
terms and provisions of the First Amendment and this Second Amendment and that,
in addition to the delivery of documents required by the Original Agreement and
First Amendment, the Evergreen Parties shall also be delivering to American
Spectrum at the Closing certain additional documents necessary to implement the
intents and provisions of the Purchase Agreement, as amended.

    

    14.         Additional Representations
of the Evergreen Parties. Except as disclosed in an Assignment of Rights,
Sub-Property and Asset Management Agreement, Loan Documents or in other document
delivered by the Evergreen Parties to American Spectrum at the Closing, (a) no
Evergreen Party owns any interest, directly or indirectly, in any Property, (b)
no Evergreen Party is a party to any agreement or contract with the owner(s) of
any Property pursuant to which an Evergreen Party receives Fees, including any
property management fees, refinancing fees, disposition fees, development fees,
asset management fees, brokerage fees, etc. or any other contract or
document respecting the Properties (e.g., sub-property
management agreements, brokerage services agreements, management agreements,
property management agreements, etc.), (c) no Evergreen Party
has any recourse liability under any of the Loan Documents (other than for
customary non-recourse carve-outs) and no American Spectrum Party shall assume
any recourse liability under the Loan Documents by reason of the transactions
governed by the Original Agreement, as amended by the First Amendment and as
further amended by this Second Amendment, (d) the TIC Agreements (including
those governing partnerships, limited liability company agreements, etc.) which have been
delivered to American Spectrum by ERG are true, correct and accurate copies of
the originals thereof and, if any copy so delivered is not of a fully executed
TIC Agreement, the Evergreen Parties represent and warrant that such TIC
Agreement has been fully executed in the form so delivered, (e) no TIC Agreement
has been amended, modified or supplemented except for the sole purpose of
reflecting the ownership interest in a Property set forth on the ERG First Class
Web Access, (f) the copies of the documents governing the TIC Entities (i.e., limited liability
company agreements, partnership agreements, etc.) which have been
delivered to American Spectrum by ERG are true, correct and accurate copies of
the originals thereof and, if any copy delivered is not of a fully executed
document, the Evergreen Parties represent and warrant that such document has
been fully executed in the form so delivered, and (g) to the extent that a TIC
Agreement or the documents referenced in subparagraph (f) have not been
delivered by ERG to American Spectrum respecting any Property, the TIC Agreement
or such documents governing such Property are in substantially the same form as
the TIC Agreements or other documents (as applicable) governing such
Property.
 

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    15.         Verbal Property Management
Agreements. The Evergreen Parties have represented that there are no
written Property Management Agreements and/or Asset Management Agreements for
the below described Properties but that such Properties are being managed by
Evergreen Management pursuant to verbal agreements with the owner(s) of such
Properties. The Evergreen Parties hereby represent and warrant that each of such
verbal agreements is on the same terms and conditions (including the payment of Fees) as are set forth in
the standard-form Property Management Agreement of Evergreen Management and/or
Asset Management Agreement.

    

    Attic
Space Self-Storage, Laredo Road, San Antonio, Texas (Property Management
Agreement).

    

    16.         Address for
Notices
to the Evergreen Parties. The address for notices to the Evergreen
Parties set forth in Section 9.1 of the Original Purchase Agreement is hereby
changed to the following:

    

    1443 East
Washington Boulevard, Suite 820

    Pasadena,
California 91104

    

    17.         Exhibits E and F.
Exhibits “E” and “F” to the Original Agreement are hereby replaced with the
Schedule of Contracts attached hereto.

    

    18.         Clarification of Application
of Deferred Payments.

    

    The
definition of the term “Deferred Payments” in Sections 1.1, Section 5.14 of the
Original Purchase Agreement governing application of Deferred Payments, and
Section 4 of the First Amendment governing application of deferred Payments are
hereby deleted and replaced with the following:

    

    “Deferred Payments.
All Deferred Payments shall belong and be paid to American Spectrum Management
Co. and shall be applied by American Spectrum Management Co. in the following
order of priority: (i) first, to reimburse American Spectrum Management Co. for
all reasonable costs incurred to collect any Deferred Payments, (ii) secondly,
to Palmer 25% of the balance to each of McCarthy and Palmer, provided that, from
the amount otherwise due McCarthy, American Spectrum Management Co. shall pay to
REIT I or REIT II (as reasonably determined by American Spectrum Management Co.)
the amount necessary to pay any accrued interest and principal due by any
Evergreen Party to REIT I or REIT II for funds loaned by REIT I or REIT II to
such Evergreen Party until all such indebtedness (including accrued interest)
due REIT I and REIT II by such Evergreen Parties has been discharged in full and
(iii) the balance shall be retained by American Spectrum Management Co.
Application and payment of all Deferred Payments received by American Spectrum
Management Co. shall be made promptly after receipt thereof. Deferred Payments
shall include (i) any Disposition Fees and/or Refinancing Fees payable under any
contract or agreement set forth on the Schedule of Contracts (including
Brokerage Services Agreements) attached hereto plus (ii) the proceeds received
from the repayment of any loans and/or other advances made by McCarthy or
affiliates of McCarthy (other than the Evergreen Parties) to holders of TIC
Interests. American Spectrum Management Co. reserves the right to defer,
discount, subordinate, forgive or otherwise modify the amount and/or terms of
any Deferred Payment without the approval or consent of any Evergreen Party;”
provided, however, American Spectrum Management Co. agrees that any
determination by it to defer, discount, subordinate, forgive or otherwise modify
any Deferred Payment shall be exercised by American Spectrum Management Co.
acting in its reasonable discretion.
 

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    19.         Voluntary Termination of
Management Agreements. The Evergreen Parties acknowledge that,
notwithstanding Section 3 of the First Amendment, American Spectrum Management
Co. shall have no obligation to cure any default or to take any action pursuant
to which any Person attempts to terminate a Management Agreement, and any offer
to reassign a Management Agreement in accordance with Section 3 of the First
Amendment shall not require American Spectrum to pay any consideration to any
Evergreen Party and such offer to reassign shall require the Evergreen Parties
to assume such Management Agreement and any third party claims made or to be
made thereunder.

    

    20.         Intentionally Omitted. Third Party
Subcontracts. The
Evergreen Parties have advised the American Spectrum Parties that the property
management of certain Properties is being performed pursuant to
contracts/sub-contracts with third Persons disclosed by ERG to American
Spectrum. Evergreen Management agrees that, in the event any such
sub-contract is terminated for any reason whatsoever and that there is not a
property management agreement then in effect between Evergreen Management and
American Spectrum Management Co, Evergreen Management shall enter into a Sub-Property and Asset Management Agreement with
American Spectrum Management Co. with respect to such
Property.
  

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    21.         Adjusted Purchase Price. Section
2.6(c)(i) of the Original Agreement is hereby deleted and the following
substituted therefor:

    

    “(i)           The
Adjusted Purchase Price shall equal the following: (A) three hundred percent
(300%) of the “property management fees” earned and actually paid to American
Spectrum Management Co. during the Accounting Period under the Original
Agreements (as defined in the Sub-Property and Asset Management Agreements being
executed and delivered by American Spectrum Management Co. and Evergreen
Management at the Closing) which are in full force and effect on the last day of
the Accounting Period whether such property management fees are paid directly to
American Spectrum Management Co. (i.e.,
pursuant to Original Agreements which have been conditionally assigned to
American Spectrum Management Co. pursuant to an Assignment of Rights) or paid
indirectly to American Spectrum Management Co. by Evergreen Management (i.e., pursuant to the terms of
an applicable Sub-Property and Asset Management Agreement) plus (B) three
hundred percent (300%) of any “asset management fees” earned and actually paid
to American Spectrum Advisors during the Accounting Period under the Advisory
Agreement between American Spectrum Advisors and REIT I so long as such Advisory
Agreement is in full force and effect on the last day of the Accounting Period,
plus (C) three hundred percent (300%) of the property management fees earned but
not paid to American Spectrum Management Co. during the Accounting Period
pursuant to Original Agreements or Sub-Property and Asset Management Agreements
which are in full force and effect on the last day of the Accounting Period but
only to the extent such property management fees may be accrued and included as
an asset on the balance sheet of American Spectrum Management Co. in accordance
with GAAP, as determined by the independent auditors of American Spectrum
Management Co. plus (D) three hundred percent (300%) of the asset management
fees earned but not paid under the Advisory Agreement by REIT I to American
Spectrum Advisors during the Accounting Period so long as such Advisory
Agreement is in full force and effect on the last day of the Accounting Period
but only to the extent that such earned but not paid asset management fees may
be accrued and included as an asset on the balance sheet of American Spectrum
Advisors in accordance with GAAP, as determined by the independent auditors of
American Spectrum Advisors, less (E) the Offset Amount, if any. In the event
that there exists a subcontract respecting any Original Agreement on the Closing
Date, then any and all Fees paid under such Original Agreement shall not be
included in the determination of the Adjusted Purchase
Price.
 

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      IN
WITNESS WHEREOF, the Parties have caused this Second Amendment to be executed as
of the date first above written.

      

      
        
          	 
      	
                  EVERGREEN
      PARTIES:

                
	 
      	 
      
	 
      	
                  Evergreen
      Realty Group, LLC, a Delaware limited

                
	 
      	
                  liability
      company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:  Luke
      V. McCarthy

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Evergreen
      Realty Advisors, Inc., a California

                
	 
      	
                  corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:  Luke
      V. McCarthy

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Evergreen
      Realty Property Management LLC, a

                
	 
      	
                  limited
      liability company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:  Luke
      V. McCarthy

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Evergreen
      Development, LLC, a California limited

                
	 
      	
                  liability
      company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:  Luke
      V. McCarthy

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Evergreen
      Income & Growth REIT, Inc., a Virginia

                
	 
      	
                  corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:  Luke
      V. McCarthy

                
	 
      	
                  Title:    President

                

        

      

       

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      

      
        
          	 
      	
                  Evergreen
      Institutional Partners Fund I, LLC

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Luke V. McCarthy

                
	 
      	
                  Name:

                	 
      
	 
      	
                  Title:

                	 
      

        

      

      

      
        
          	 
      	
                  Real
      Property Systems-Indiana, LLC, an Indiana

                
	 
      	
                  limited
      liability company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:  Michael
      W. Palmer

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Real
      Property Systems-Texas, LP, a Texas limited

                
	 
      	
                  partnership

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:  Michael
      W. Palmer

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  Real
      Property Systems Inc., California a corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:  Michael
      W. Palmer

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  New
      West Realty, Inc., a California corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	
                  Name:  Michael
      W. Palmer

                
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	

                  /s/
      Luke V. McCarthy  

                
	 
      	
                  Luke
      V. McCarthy

                
	 
      	 
      	 
      
	 
      	 
      
	 
      	
                  Carl
      Willgeroth

                

        

      

       

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      Evergreen
      Institutional Partners Fund I, LLC

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	 
      
	 
      	 
      	 
      
	 
      	
                      Name:

                    	 
      
	 
      	 
      	 
      
	 
      	
                      Title:

                    	 
      

            

          

        

      

      

      
        
          
            
              	 
      	
                      Real Property Systems-Indiana, LLC, an Indiana limited liability

                    
	 
      	
                      company

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Michael W. Palmer

                    
	 
      	 
      	 
      
	 
      	
                      Name:  Michael
      W. Palmer

                    
	 
      	 
      
	 
      	
                      Title:    President

                    
	 
      	 
      	 
      
	 
      	
                      Real
      Property Systems-Texas, LP, a Texas limited partnership

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Michael W. Palmer

                    
	 
      	 
      	 
      
	 
      	
                      Name:  Michael
      W. Palmer

                    
	 
      	 
      
	 
      	
                      Title:    President

                    
	 
      	 
      	 
      
	 
      	
                      Real
      Property Systems, Inc., California a corporation

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Michael W. Palmer

                    
	 
      	 
      	 
      
	 
      	
                      Name:  Michael
      W. Palmer

                    
	 
      	 
      
	 
      	
                      Title:    President

                    
	 
      	 
      	 
      
	 
      	
                      New
      West Realty, Inc., a California corporation

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	
                      /s/ Michael W. Palmer

                    
	 
      	 
      	 
      
	 
      	
                      Name:  Michael
      W. Palmer

                    
	 
      	 
      
	 
      	
                      Title:    President

                    

            

          

        

      

       

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      

      
        
          	 
      	 
      
	 
      	 
      
	 
      	
                  Luke
      V. McCarthy

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Carl
      Willgeroth

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Tracy
      Thomson

                
	 
      	 
      
	 
      	
                  /s/ Michael W. Palmer

                
	 
      	 
      
	 
      	
                  Michael
      W. Palmer

                
	 
      	 
      
	 
      	
                  AMERICAN
      SPECTRUM PARTIES:

                
	 
      	 
      
	 
      	
                  American
      Spectrum Realty, Inc., a Maryland corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ William J. Carden

                
	 
      	 
      	 
      
	 
      	
                  Name:  William
      J. Carden

                
	 
      	 
      
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  American
      Spectrum Realty Advisors, L.C., a Delaware limited

                
	 
      	
                  liability
      company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ William J. Carden

                
	 
      	 
      	 
      
	 
      	
                  Name:  William
      J. Carden

                
	 
      	 
      
	 
      	
                  Title:    President

                

        

      

       

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      

      
        
          	 
      	 
      
	 
      	 
      
	 
      	
                  Luke
      V. McCarthy

                
	 
      	 
      
	 
      	
                  /s/ Carl Willgeroth

                
	 
      	 
      
	 
      	
                  Carl
      Willgeroth

                
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                  Tracy
      Thomson

                
	 
      	 
      
	 
      	
                  /s/ Michael W. Palmer

                
	 
      	 
      
	 
      	
                  Michael
      W. Palmer

                
	 
      	 
      
	 
      	
                  AMERICAN
      SPECTRUM PARTIES:

                
	 
      	 
      
	 
      	
                  American
      Spectrum Realty, Inc., a Maryland corporation

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      
	 
      	
                  Name:  William
      J. Carden

                
	 
      	 
      
	 
      	
                  Title:    President

                
	 
      	 
      	 
      
	 
      	
                  American
      Spectrum Realty Advisors, L.C., a Delaware limited

                
	 
      	
                  liability
      company

                
	 
      	 
      	 
      
	 
      	
                  By:

                	 
      
	 
      	 
      	 
      
	 
      	
                  Name:  William
      J. Carden

                
	 
      	 
      
	 
      	
                  Title:    President

                

        

      

       

      
        
           

        

        
          -12-

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