Document:

ex10_1.htm

    
      

    

    Exhibit
10.1

    AGREEMENT
OF PURCHASE AND SALE

    

    

    THIS AGREEMENT OF PURCHASE AND
SALE (this “Agreement”) is dated the ___
day of November, 2007, by and between REALVEST-MONROE COMMERCENTER, L.L.C, a
Florida limited liability company (“Seller”), and CORNERSTONE
OPERATING PARTNERSHIP,
L.P., a Delaware limited partnership (“Purchaser”).

     

    RECITALS:

     

    Seller
will be the owner of all the membership interests (the “Interests”) of COP-Monroe
North, LLC, a Florida limited liability company (the “LLC Owner”).  As of
the Closing (defined herein) the LLC Owner will own the Property (as defined
herein) located in Seminole County, Florida, consisting of two (2) warehouse
buildings that total approximately 181,348 RSF.

     

    Purchaser
and Seller desire to set forth their agreements concerning the terms and
conditions pursuant to which Seller will sell to Purchaser and Purchaser will
buy from Seller the Interests.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained in
this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     

    ARTICLE
1

     

    PROPERTY/PURCHASE
PRICE

     

    1.1           Property.  Subject
to the terms and conditions of this Agreement, Seller agrees to sell to
Purchaser, and Purchaser agrees to purchase from Seller, the
Interests.  As of the Closing, the LLC Owner will own the following
property (collectively, the “Property”):

     

    (a)           The
real property described in Exhibit
“A” attached hereto and made a part hereof (the “Real Property”), together with
(i) all improvements located thereon, including, without limitation, all of the
buildings, structures, fixtures, facilities, installations and other
improvements of every kind and description now or hereafter in, on, over and
under the Real Property (collectively, the “Improvements”), and (ii) all
other rights, benefits, privileges, easements, tenements, hereditaments and
appurtenances, if any, thereon or in any way appertaining to the Real Property
and being included within the definition thereof.

     

    (b)           All
leases (including any amendments thereto) of warehouses on the Real Property,
including leases which may be executed by Seller and/or the LLC Owner after the
date hereof and prior to Closing, pursuant to the terms and conditions of this
Agreement (collectively, the “Leases”). A rent roll of the
Leases affecting the Property or any part thereof (such summary being referred
to in this Agreement as the “Rent Roll”) is attached to
this Agreement as Exhibit
“B” and made a part hereof.

     

    
      
         

      

      
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    (c)           All
equipment, machinery, appliances, furniture, furnishings, and other tangible
personal property owned by Seller and/or the LLC Owner, now or hereafter located
in the Property and used in connection with the ownership or operation of the
Real Property or the business conducted thereon (collectively, the “Tangible Personal
Property”).  A list of the Tangible Personal Property items
with a value exceeding One Hundred Dollars $100.00 is attached hereto as Exhibit
“C”.

     

    (d)           A
nonexclusive right to the use of the name “Monroe CommerCenter” in connection
with the Property, permits, warranties, guaranties, and all other intangible
property used in the ownership or operation of the Real Property or the business
conducted thereon (collectively, the “Intangible Personal
Property”).

     

    (e)           The
following assets are excluded from this transaction and will be retained by
Seller:  Utility deposits.

     

    1.2.           Purchase
Price.  The purchase price for the Interests (the “Purchase Price”) is FIFTEEN
MILLION SIX HUNDRED SEVENTY FIVE THOUSAND AND NO/100 DOLLARS ($15,675,000.00),
to be paid as follows:  (a) the Earnest Money Deposit (as defined
herein) and (b) the balance of the Purchase Price payable at Closing or any
extension thereof in immediately available U.S. funds.  

     

    1.3.           Earnest
Money Deposit.

     

    (a)           The
“Effective Date” shall
mean the date Purchaser receives a fully executed counterpart of this
Agreement.  Within three (3) business days after the Effective Date,
Purchaser shall deposit with Land America Title Company, Attention Lance Capel,
1920 Main Street, Suite 1200, Irvine, California 92614, (949) 930-9323 (“Escrow Agent”) by wire
transfer of immediately available U.S. funds to be held by the Escrow Agent, the
amount of ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) as earnest money
deposit (such amount and all interest earned thereon is referred to herein as
the “Initial Earnest Money
Deposit”).  The Initial Earnest Money Deposit shall entitle
Purchaser to inspect the Real Property and Personal Property for a period from
the Effective Date until January 15, 2008 under the terms of Article 2 (the
“Inspection
Period”).  If Purchaser does not terminate this Agreement on or
prior to the end of the Inspection Period, Purchaser shall deposit with Escrow
Agent an additional ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000.00)
(such amount and all interest earned thereon is referred to herein as the “Additional Earnest Money
Deposit”) in cash to be held and disbursed by Escrow Agent in
accor­dance with the remaining provisions of this Agreement.  The
Initial Earnest Money Deposit and the Additional Earnest Money Deposit are
referred to herein collectively as the "Earnest Money Deposit."

     

    (b)           The
Earnest Money Deposit shall be deposited by Escrow Agent in an interest bearing
escrow account at an independent financial institution located in Florida (which
account the parties acknowledge and agree is not insured by the FDIC or
otherwise for amounts in excess of $100,000.00).  At the Closing, the
Earnest Money Deposit shall be credited to the Purchase Price payable by
Purchaser to Seller.  In connection with Purchaser’s deposit of the
Earnest Money Deposit with Escrow Agent, the parties acknowledge and agree
that:

     

    
      
         

      

      
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    (i)           Escrow
Agent shall hold possession of, keep, deliver and dispose of the Earnest Money
Deposit subject to the terms and conditions of this Agreement and shall
otherwise deal with the parties hereto fairly and impartially according to the
intent of the parties as herein expressed; provided, however,
that Escrow Agent shall not be deemed to be a party to this Agreement except for
its obligations hereunder as Escrow Agent for the purposes of holding the
Earnest Money Deposit and shall not be responsible or liable in any manner
whatsoever for the sufficiency, manner of execution or validity of any written
instructions, certificates or any other documents received by it (provided the
Escrow Agent shall at all times act in good faith in acting only on documents
which it believes the signatures thereon genuine), nor as to the identity,
authority or right of any persons (other than Escrow Agent) executing this
Agreement (except in the event that Escrow Agent has a good faith reason to
believe the identity, authority or right of any persons is not
genuine).  Escrow Agent shall be entitled to rely at all times on
instructions given by Seller and/or Purchaser, as the case may be and as
required hereunder, without any necessity of verifying the authority
therefor.

     

    (ii)           Escrow
Agent shall not at any time be held liable for actions taken or omitted to be
taken in good faith and without gross negligence.  Seller and
Purchaser agree to save and hold Escrow Agent harmless from and against any and
all losses, claims or demands arising out of its actions hereunder and hereby
agree to indemnify Escrow Agent from any such losses, claims or demands arising
out of its activities hereunder as the holder of the Earnest Money
Deposit.

     

    (iii)           It
is further understood and agreed by Seller and Purchaser that if, as a result of
any disagreement between them or adverse claims and demands being made by any of
them upon Escrow Agent, or if Escrow Agent otherwise shall become involved in
any litigation with respect to the disbursement of the Earnest Money Deposit,
such parties agree that they, jointly and severally, are and shall be liable to
Escrow Agent and shall reimburse Escrow Agent on demand for all costs, expenses
and counsel fees it shall incur or be compelled to pay by reason of such
litigation.

     

    (iv)           In
taking or omitting to take any action whatsoever hereunder with respect to the
disbursement of the Earnest Money Deposit, Escrow Agent shall be protected in
relying upon any notice, paper or other document believed by it to be genuine,
or upon evidence deemed by it to be sufficient, and in no event shall Escrow
Agent be liable hereunder for any act performed or omitted to be performed by it
hereunder in the absence of gross negligence or bad faith.  Escrow
Agent may consult with counsel in connection with its duties hereunder and shall
be fully protected in any act taken, suffered or permitted by it in good faith
and without gross negligence in accordance with the advice of such
counsel.

     

    (c)           If
the transaction contemplated by this Agreement closes in accordance with the
terms and conditions of this Agreement, at Closing or any extension thereof, the
Earnest Money Deposit shall be delivered by Escrow Agent to Seller as payment
toward the Purchase Price.

     

    
      
         

      

      
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    ARTICLE
2

     

    INSPECTION

     

    2.1.           Inspection
Period.  Purchaser shall have a period from the Effective Date
until January 15, 2008 (the “Inspection Period”) in which
to inspect the Seller's records and the Property.  The Inspection
Period shall commence on the Effective Date and shall terminate at 5:00 p.m.
Eastern Standard Time on January 15, 2008.  During the Inspection
Period, Purchaser may employ engineers to inspect the Property and to conduct
surveys, tests, studies, soils/environmental hazardous waste studies and termite
and pest infestation studies thereon and any other studies, tests and surveys
contemplated by this Agreement and otherwise as may be necessary or required in
determining that the Improvements have been built in a good and workmanlike
manner and that the Property and the Due Diligence Documents are in all respects
satisfactory to Purchaser, in its sole discretion.  Purchaser shall
have the right at its sole expense, within the same period to inspect the
Property and the Due Diligence Documents to satisfy itself that the physical
condition of the Property and the Due Diligence Documents are acceptable to
it.  It is specifically understood and agreed that, within the
Inspection Period, Purchaser may approve or disapprove of the Property and/or
the Due Diligence Documents for any reason whatsoever; however, the Earnest
Money Deposit shall be governed by Section 1.3; provided further, however, in
the event Purchaser determines to terminate this transaction within the
Inspection Period, the Earnest Money Deposit shall be returned to
Purchaser.

     

    If, for
any reason, Purchaser, in its sole discretion, determines during the Inspection
Period that the LLC Owner or the Property is unsuitable for its purposes, then
at any time during the Inspection Period, Purchaser may notify Seller and Escrow
Agent in writing that it has elected to terminate this transaction (such notice
is referred to herein as the “Termination
Notice”),  and the parties hereto shall be relieved of all
remaining liabilities and obligations under this Agreement, except those that
expressly survive hereunder. If the Termination Notice is not sent to the Seller
and/or Escrow Agent prior to the end of the Inspection Period, this Agreement
shall automatically continue.

     

    No later
than five (5) days following the Effective Date, Seller shall deliver or make
available at the office of Seller copies of the Due Diligence
Documents.  For purposes of this Agreement, the term “Due Diligence Documents” shall
mean, collectively, the following (to the extent currently in the possession of
Seller, the LLC Owner, or the management company for the Property):

     

    (a)           The
most current ALTA surveys of the Property (the “Survey”).

     

    (b)           Electronic
copies of all tenant leases, subleases and ground leases, including all
amendments, currently in effect at the Property and all financial credit
information for each tenant.

     

    (c)           Copy
of Seller’s owner’s title insurance policy for the
Property.

     

    (d)           Unaudited
operating statements covering the Property for the past two (2)
years.

     

    
      
         

      

      
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    (e)           The
most recent version of the 2006 and 2007 operating budget for the
Property.

     

    (f)           Operating
account bank statements for the past two (2) years.

     

    (g)           A
current rent roll for the Property is attached as Exhibit “B” to this
Agreement.

     

    (h)           Monthly
utility bills or evidence of payment for utilities for the Property for the past
twelve months.

     

    (i)           All
contracts and agreements affecting the Property, including without limitation,
those pertaining to service, labor, construction, management, maintenance and
brokerage.

     

    (j)           Any
as-built plans and specifications for the Property, including soil
reports.

     

    (k)           A
list of all threatened, pending, or ongoing claims or lawsuits and all
outstanding judgments relating to the Property, including without limitation,
suits for nonpayment of rent or for the purpose of tenant eviction and all
documents related thereto.

     

    (l)           All
policies of insurance evidencing all casualty, liability, and other insurance
policies presently in effect with respect to the Property.

     

    (m)           Any
other reports, studies, tests, surveys, assessments or other materials
pertaining to the ownership, operation or condition of the Property in Seller’s
possession or reasonable control.

     

    (n)           Property
tax bills for 2005 and 2006.

     

    (o)           All
records pertaining to the LLC Owner.

     

    (p)           All
building reports, environmental reports, structural reports, site plans, floor
plans and engineering data that seller has in its possession.

     

    (q)           All
advertising, marketing, collateral material and/or promotional programs being
utilized by the Property (including computer artwork, ad layouts, etc.) in paper
format.

     

    (r)           All
roof warranties.

     

    (s)           Aging
receivables report for the current year and last three calendar
years.

     

    (t)           Copy
of easement for right of way access to the Monroe IV Commercial Condominiums
located at 4240 Church Street, Sanford, Florida.

     

    2.2.           Estoppel
Certificates.  During the Inspection Period, Seller shall
deliver to Buyer estoppel certificates with respect to the Leases from tenants
leasing no less than 85% of the space in the Property ("Estoppel Certificates"). The
Estoppel Certifi­cates shall be in form attached hereto as Exhibit
"D" and shall not disclose the existence of any default under the Leases
and shall contain information that is consistent with and confirms (a) the terms
of the Leases, (b) the information contained in the rent rolls delivered by
Seller to Purchaser, and (c) the information contained in the account receivable
aging report of the Property delivered by Seller to Purchaser.  Seller
shall deliver copies of the Estoppel Certificates promptly after their receipt
from any tenant.

    
      
         

      

      
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    2.3.           Return of
Documentation/Confidentiality.  If, for any reason, this
Agreement is terminated, Purchaser covenants and agrees (a) to return to Seller,
within five (5) days of date of termination, any and all Due Diligence Documents
provided to Purchaser and any of the other information provided to Purchaser by
Seller or Seller’s management company pursuant to this Agreement and (b) that
any and all of the Due Diligence Documents provided to Purchaser or any other
information provided to or obtained by Purchaser pursuant to this Agreement
shall be and remain privileged and confidential information which shall not be
disclosed, reproduced, quoted from or otherwise disseminated, in whole or in
part, except as necessary for purposes of evaluating the Property, making
required regulatory disclosures, and consummating this transaction to
Purchaser’s officers, directors, shareholders, partners, members, attorneys,
accountants, employees, contractors, and lenders, without the express prior
consent of Seller or as may otherwise be required by any court order or any law,
rule or regulation of any governmental authority having jurisdiction over
Purchaser or the Property.  The liabilities and obligations under this
Section 2.3 will survive any termination or cancella­tion of this
Agreement.

    

    2.4.           Inspection
Indemnity.  Purchaser shall indemnify and hold Seller harmless
for, from and against any and all losses, defaults, liabilities, causes of
action, demands, claims, damage or expenses of every kind including, without
limitation, reasonable attorneys' fees and court costs, arising as a result of
each of Purchaser's inspections ("Inspection Indemnity").
Purchaser shall, at Purchaser‘s expense, repair all damages to the Property
resulting from the inspections and return the Property to the condition it was
in prior to the inspections. The Inspection Indemnity and the obligation to
repair damages shall survive any termination or cancella­tion of this
Agreement.

    

    ARTICLE
3

     

    TITLE REVIEW: TITLE
COSTS

     

    3.1.           Status of
Title.  At Closing, Seller shall convey to Purchaser the
Interests. Seller shall demonstrate to Purchaser’s reasonable satisfaction that
the entire fee simple estate in and to the Property has been conveyed to the LLC
Owner by special warranty deed (the “Deed”), subject only to (a)
those covenants, conditions and restrictions and other exceptions to title of
record  which are reviewed and approved by Purchaser as provided
below, (b) the lien of general real estate taxes for the current year and
subsequent years which are not yet due and payable, and (c) the Leases
(hereinafter collectively referred to as the “Permitted Exceptions”), and
(d) any mortgage or other lien to be paid out of proceeds at
closing.

     

    3.2.           Title Documents.
Within ten (10) business days after the Effective Date, Purchaser shall obtain a
title insurance commitment, together with legible copies of all documents
referenced therein, (the “Title
Commitment”) issued by Land America Title Company (“Title Company”).

     

    
      
         

      

      
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    3.3.           Survey.  Purchaser
may, at its option and expense, cause the Survey to be updated, reissued and
certified to the LLC Owner, Seller, Purchaser, Title Company and any other party
Purchaser may request.  The Survey, as so updated, reissued and
certified, shall hereinafter be referred to as the “Updated Survey.”

     

    3.4.           Title
Defects.  Purchaser agrees to notify Seller in writing on or
before expiration of the Inspection Period of those items in the Title
Commitment that are not acceptable to Purchaser.  If Purchaser has not
so notified Seller on or before expiration of the Inspection Period, Purchaser
shall be deemed to have approved Seller’s title.  Seller shall have
ten (10) days from the date of Purchaser’s notice to have each unacceptable
exception removed, insured over or corrected, in each case to the reasonable
satisfaction of Purchaser (each, an “Acceptable Title
Resolution”).  If within the time specified Seller fails to
provide an Acceptable Title Resolution for each such unacceptable exception,
Purchaser may elect to either: (a) terminate this Agreement and immediately
receive from Escrow Agent the Earnest Money Deposit; or (b) elect to accept
title to the Property subject to such unacceptable exception, in which event the
unacceptable exception shall be considered a Permitted Exception.  If
Purchaser fails to make either of such election, Purchaser shall be deemed to
have elected option (a).

     

    3.5.           Premium.  Seller
shall pay the premium for the “standard” ALTA title insurance coverage, less a
twenty-five percent (25%) Butler rebate; Purchaser shall pay the additional
premium to obtain “extended” ALTA title insurance coverage and any
endorsements.

     

    3.6.           Condition.  Purchaser’s
obligation to consummate the purchase is conditioned upon the irrevocable
commitment by the Title Company to issue a title insurance policy at Closing, in
the form, and subject only to the Permitted Exceptions reasonably approved by
Purchaser.  If this condition cannot be satisfied, Purchaser may
terminate this Agreement and obtain a refund of the Earnest Money
Deposit.

     

    ARTICLE
4

     

    OPERATIONS PRIOR TO
CLOSING

     

    4.1.           Leasing. During the
Inspection Period, Seller shall provide Purchaser with copies of any new leases
entered into between Seller or the LLC Owner and a tenant.  Subsequent
to the inspection period, Seller will not amend, terminate, waive any default
under, grant concessions regarding, or enter into any Lease without Purchaser’s
prior written consent, which consent shall not be unreasonably withheld or
delayed.  Purchaser’s failure to respond to any request by Seller
within five (5) days after Seller’s notice of request shall be considered a
grant of consent.

    

    4.2.           ­Service
Contracts.  Without the prior written consent of Purchaser,
neither Seller nor the LLC Owner may renew any existing service contract that is
not cancelable by Seller upon 30 days’ notice, except that, as of Closing,
Seller shall terminate all management contracts affecting the
Property.

     

    
      
         

      

      
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    ARTICLE
5

     

    CLOSING

     

    5.1.           Closing
Date.  The consummation of the transaction contemplated herein
(the “Closing”) shall
occur on January 30, 2008 (the “Closing Date”) by way of an
escrow closing or at such location to which the parties may mutually agree in
writing.

     

    5.2.           Seller’s
Deliveries.  Prior to or at Closing, Seller shall deliver or
cause to be delivered to Title Company a copy of each of the following (the
original of each in form and substance acceptable to Title Company to be
executed (if necessary) and delivered at Closing):

     

    (a)           Assignment of
Interests.  An Assignment of Interests (“Assignment of Interests”)
executed and acknowledged by Seller, vesting in Purchaser all rights, titles and
interests in the Interests.

     

    (b)           Deed.  The
Deed conveying to the LLC Owner good and indefeasible fee simple title to the
Real Property, subject only to the Permitted Exceptions;

     

    (c)           Assignment of
Leases.  An Assignment of Leases (the “Assignment of Leases”),
executed and acknowledged by Seller, vesting in the LLC Owner all right, title
and interest of the landlord under the Leases and all tenant security
deposits;

     

    (d)           Bill of
Sale.  A Bill of Sale executed and acknowledged by Seller,
transferring and assigning to the LLC Owner the Tangible Personal
Property;

     

    (e)           FIRPTA.  A
Foreign Investment in Real Property Tax Act affidavit executed by
Seller;

     

    (f)         
  Tenant
Notice.  A letter advising tenants under the Leases of the
change in ownership of the Property and directing them to pay rent to the LLC
Owner or
as Purchaser may direct;

     

    (g)           Affidavits,
Etc.  Any and all affidavits, certificates or other documents
required by Title Company in order to cause Title Company to issue the Title
Policy in the form and condition required by this Agreement;

     

    (h)           Authority.  Evidence
of existence, organization and authority of Seller and the LLC Owner and the
authority of the party executing documents on behalf of Seller and the LLC Owner
reasonably satisfactory to Title Company;

     

    (i)         
  Certification.  A
certification of the current Rent Roll, as being true and correct in all
material respects.

     

    (j)         
  Additional
Documents.  Any additional documents necessary in order to
perfect the conveyance, transfer and assignment of the Interests to Purchaser
and the Property to the LLC Owner as contemplated by this
Agreement.

     

    
      
         

      

      
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    5.3.           Purchaser’s
Deliveries.  At the Closing, Purchaser shall deliver the
following:

     

    (a)           Purchase Price and Other
Purchaser Payment Obligations.  The Purchase Price, less the
Earnest Money Deposit, plus or minus applicable prorations, credits and charges,
shall be deposited by Purchaser with Title Company no later than noon Eastern
Standard/Daylight Savings Time on the Closing Date, or any extension thereof, in
immediately available U.S. funds wired or credited into such account as Title
Company may designate;

     

    (b)           Authority.  Evidence
of existence, organization and authority of Purchaser and the authority of the
party executing documents on behalf of Purchaser reasonably satisfactory to
Title Company;

     

    (c)           Assignment
Document.  Executed counterpart of the Assignment of Interests;
and

     

    (d)         Additional
Documents.  Any additional documents necessary in order to
perfect the conveyance, transfer and assignment of the Interests to Purchaser as
contemplated by this Agreement.

     

    5.4.           Closing
Statement.  Title Company shall act as the closing agent for
the transaction and shall prepare and deliver to Seller and Purchaser prior to
Closing for review and approval a closing statement (the “Closing Statement”) consistent
with the terms of this Agreement, and which prorates, adjusts, credits and
debits the Purchase Price by those items listed in Article 1 and Article 6 of
this Agreement, together with all underlying and supporting documentation used
to compute said prorations.  The Closing Statement shall be executed
by Seller and Purchaser.

     

    5.5.           Possession.  Seller
shall deliver possession of the Property to the LLC Owner no later than the
Closing subject only to the Permitted Exceptions.

     

    5.6.           Termination of Property
Management.  At Closing, Seller shall provide evidence to
Purchaser that all management contracts affecting the Property, if any, are
terminated effective as of the Closing Date, or any extension thereof, unless
waived by Purchaser.

     

    5.7.           Delivery of Books and
Records.  Upon the Closing, Seller shall make or cause to be
made available at the Property any and all of the following which are in
Seller’s or its property manager’s possession or control: the original Leases,
receipts for deposits and unpaid bills, keys, specifications, the working
drawings for all Improvements, if any, and any and all building plans, surveys,
site plans, engineering plans and studies, utility plans, landscaping plans,
development plans, construction drawings, soil tests, complete warranty book
including all contractors and subcontractors and all other documentation
concerning all or any part of the Property, including any such documentation
contemplated by Section 1.1 hereof.

     

    5.8.           Close of
Escrow.  Upon satisfaction or completion of the foregoing
conditions and deliveries and performance by each party of its obligations
required to be performed during the pendency of this Agreement and/or at the
Closing, the parties shall direct Escrow Agent to deliver the Earnest Money
Deposit to Title Company and direct Title Company pursuant to their escrow
instructions to immediately record and deliver the documents described above to
the appropriate parties and make the disbursements according to the Closing
Statement.

     

    
      
         

      

      
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    ARTICLE
6

     

    PRORATIONS/OTHER ALLOCATIONS
AND DELIVERIES/COMMISSIONS

     

    6.1.           Prorations.  Notwithstanding
the purchase and sale of the Interests, the items set forth below shall be
apportioned and prorated between Seller and Purchaser in regard to the Property
as of the close of the day immediately preceding the Closing Date or any
extension thereof.  The parties shall endeavor to compute or estimate
all closing adjustments prior to the Closing Date, or any extension
thereof.

     

    (a)           Taxes and
Assessments.  General real estate and personal property taxes
and assessments imposed by all governmental authorities having jurisdiction over
the Property (collectively, “Taxes”) and any assessments by
private covenant constituting a lien or charge on the Property for the
then-current calendar year or other current tax period not yet due and payable
shall be prorated at the Closing.  Notwithstanding anything herein to
the contrary, in no event shall Purchaser have any liability for documentary
stamp taxes, if any, due in connection with the transactions contemplated hereby
except for any documentary stamp taxes required for any loans obtained by
Purchaser.

     

     (b)           Rentals.  Rentals
and any other charges receivable (including expenses incurred pursuant to said
Leases) under the Leases in effect at Closing, as evidenced by the Updated Rent
Roll (except as otherwise provided herein), paid prior to Closing and allocable
in whole or in part to any period following the Closing shall be credited to
Purchaser to the extent so allocable and if allocable in whole or in part to any
period prior to the Closing shall be credited to Seller to the extent so
allocable.  Rent and all other sums which are due and payable to
Seller by any tenant but uncollected as of the Closing shall not be adjusted
(“Delinquent Amounts”), but Purchaser shall cause the rent and other sums for
the period prior to Closing to be remitted to Seller if, as and when collected
(but Purchaser shall not be required to take legal action for such amounts
accruing prior to the Closing), and any rent received by Purchaser shall first
be applied to the payment of any rent due for the current period, and excess
amounts collected shall be applied to Delinquent Amounts, if
any.  Purchaser may not waive any Delinquent Amounts or modify a Lease
so as to reduce amounts or charges owed under Leases for any period in which
Seller is entitled to receive a share of charges or amounts without first
obtaining the prior written consent of Seller.  With respect to
Delinquent Amounts owed by tenants that are no longer tenants of the Property as
of the date of Closing, Seller shall retain all rights relating
thereto.  All security deposits or other deposits which Seller has the
right to hold as of the date of Closing (including, without limitation,
non-refundable cleaning fees) shall be assigned and transferred to Purchaser and
Purchaser will assume and pay to respective tenants the amount of such deposits
according to the Leases.

     

    (c)           Utilities.  Utilities,
including, without limitation, water, sewer, telephone, electric, gas and cable
television, if any, shall be prorated at the Closing based upon the last
ascertainable bills (and reprorated upon receipt of the actual bills or
invoices) unless final meter readings and final invoices can be
obtained.  Seller shall endeavor to obtain meter readings on the
Closing Date or any extension thereof.  Except to the extent utility
bills are the direct obligation of individual tenants under the Leases, Seller
shall be responsible for the payment of the utility bills for the period up to
the Closing Date or any extension thereof and Purchaser shall pay the utility
bills for the period subsequent thereto.  If the utility company will
not issue separate bills, Purchaser will receive a credit against the Purchase
Price for Seller’s portion and will pay the entire bill prior to delinquency
after Closing.  If Seller has paid any utilities in advance, then
Purchaser shall be charged its portion of such payment at Closing, provided,
that such advance payment inures to the benefit of Purchaser.  Amounts
on deposit with utility companies shall not be prorated; provided, however, that
those amounts will be charged to Purchaser at Closing.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (d)           Fees and Charges Under
Service Contracts.  Fees and charges under the Service
Contracts being assigned to and assumed by Purchaser at the Closing, if any,
shall be prorated on the basis of the periods to which such fees and charges
relate.

     

    (e)           Transfer
Taxes.  Documentary stamp and any other transfer taxes payable
on the Deed shall be paid by Seller.    Documentary stamp
and any other transfer taxes payable on any loan obtained by Purchaser shall be
paid by Purchaser.

     

    (f)           Title and
Survey.  All charges and fees for the Title Commitment, the
Title Policy, and the Updated Survey shall be paid as set forth
herein.

     

    (g)           License and Permit
Fees.  Any assignable license and permit fees shall be prorated
at Closing on the basis of the period for which such fees relate.

     

    (h)           Other.  Any
other expenses of operation and similar items shall be prorated at Closing in a
manner that is customary in connection with transactions similar to the
transactions contemplated hereby.

     

    (i)         
  Final
Adjustment After Closing.  In the event that final bills cannot
be issued for any charge prior to Closing, then Purchaser and Seller agree to
allocate such items on a fair and equitable basis as set forth herein, with
final adjustment and any payment due to be made as soon as reasonably possible
after the Closing.  Other than as set forth herein, all prorations
shall be final.

     

    6.2.           Tenant
Deposits.  All tenant security deposits (and interest thereon
if required by law or contract to be earned thereon) reflected in the Leases
assigned by Seller to the LLC Owner shall be transferred to Purchaser at
Closing.  Seller shall indemnify and hold Purchaser harmless from and
against any and all loss, cost, liability or expense incurred by Purchaser by
reason of any security deposit paid by any tenant under any Lease (and interest
thereon if required by law or contract) collected by Seller and not transferred
to Purchaser at the Closing.  Purchaser shall indemnify and hold
Seller harmless from and against any and all loss, cost, liability or expense
incurred by Seller by reason of any tenant security deposit (and interest
thereon if required by law or contract) transferred to Purchaser at the
Closing.

     

    6.3.           Commissions.  Seller
and Purchaser represent and warrant each to the other that, except as stated
below, they have not contacted any real estate broker, finder or similar person
or executed an agreement with any real estate broker, sales person or finder in
connection with this transaction.  Seller and Purchaser each agree to
indemnify, defend and hold the other harmless from and against any and all loss,
cost, liability or expense, including, without limitation, attorneys’ fees,
suffered or incurred by the other party as a result of a claim or claims for
brokerage commissions, finder’s fees or other similar fees from any party or
firm which is based on the act or omission of the party in breach of the above
representations and warranties.  The foregoing indemnities shall
survive the Closing.  Seller has engaged Realvest Partners, Inc.,
d/b/a NAI Realvest, as a broker, and will compensate such entity in the event
the Closing occurs.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    6.4.           Inspection
Costs.  All costs and expenses incurred by Purchaser in
connection with the inspection of the Property and the review of the Due
Diligence Documents pursuant to Article 2 hereof shall be paid solely by
Purchaser.

     

    6.5.           Attorneys’
Fees.  Except as provided in Section 10.16 hereof to the
contrary, each party shall be responsible for paying its own attorneys’ fees and
expenses in connection with the transactions contemplated by this
Agreement.

     

    ARTICLE
7

     

    REPRESENTATIONS AND
WARRANTIES

     

    7.1.           Seller’s Representations and
Warranties.  Seller represents and warrants to Purchaser
that:

     

    (a)           The
Seller is a limited liability company duly organized and validly existing under
the laws of the State of Florida.  The Seller has full power and
authority and possesses all governmental franchises, licenses, permits,
authorizations and approvals necessary to enable it to use its name and to own,
lease or otherwise hold its properties and assets and to carry on its business
as presently conducted.  The Seller is duly qualified and in good
standing to do business in the State of Florida.

     

    (b)           Seller
has full power to carry out the transactions provided for in this Agreement, and
the execution and delivery of this Agreement by Seller and the consummation by
Seller of the transac­tions contemplated herein have been duly and validly
authorized by all necessary action on Seller's part, and this Agreement
consti­tutes a valid and legally binding obligation of Seller, enforceable
against Seller in accordance with its terms subject to the effect of
liquidation, rehabilitation, conservatorship, bankruptcy, insolvency,
moratorium, reorganization, rear­rangement, fraudulent transfer,
receivership or similar laws or judicial decisions relating to or affecting the
rights of creditors generally.

     

    (c)           There
is no agree­ment between Seller and any third party under which Seller or
its successors in interest is or could become obligated to (i) sell the Property
or any portion thereof to a third party, (ii) grant or dedicate any part of the
Property, or (iii) grant any easement, water rights, rights-of-way, roads,
licenses, ingress, egress or other use with respect to any part of the
Property.

     

    (d)           As
of Closing, Seller will be the sole owner of the Interests and will be the
registered and beneficial owner of the Interest free and clear of all liens of
any nature whatsoever; and Seller will have the sole right to sell the
Interests.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    (e)           There
are no outstanding warrants, options, agreements, convertible or exchangeable
securities or other commitments pursuant to which the Seller is or may become
obligated to issue, sell, purchase, return or redeem the Interests.

     

    (f)           Seller
will deliver to Purchaser true and complete copies of the articles of
organization and operating agreement of the LLC Owner, as amended to date, prior
to Closing.

     

    (g)           To
the best of Seller’s actual knowledge, the financial statements delivered to
Purchaser have been prepared in accordance with accounting principals generally
accepted for private companies in the United States of America, fairly present
the financial condition, the results of operations and the cash flows for the
periods covered thereby, and are in accordance with the books and records of the
Seller.

     

    (h)           To
the best of Seller’s actual knowledge, except as provided in this Agreement and
the Due Diligence Documents, there are no outstanding, defaulted or unsatisfied
contracts, commitments, agreements or understandings which have been made to,
with or for the benefit of any utility companies, school districts, water
districts, improvement districts or other authorities which could reasonably be
expected to impose any obligation, liability or condition on the owner of any
Property to grant any easements or to make any payments, contributions or
dedications of money or land or to construct, install or maintain or to
contribute to the construction, installation or maintenance of any improvements
of a public or private nature, whether on or off the Property.

     

    (i)           
To the best of Seller’s actual knowledge, except as provided in this Agreement
and the Due Diligence Documents, there are no claims, governmental
investigations, litigation or proceedings which are pending or threatened
against the Property, the Seller, or,  the owner of any Property which
could reasonably be expected to affect the continued use of the
Property.  To the best of Seller’s actual knowledge, except as
provided in this Agreement and the Due Diligence Documents, there are no
presently pending or threatened proceedings to (a) condemn, take or demolish the
Property or any part thereof, (b) declare the Property or any part of it a
nuisance or (c) exercise the power of eminent domain or a similar power with
respect to all or any part of the Property.  To the best of Seller’s
actual knowledge, there are no presently pending or contemplated special
assessments affecting any part of the Property.

     

    (j)          
 The LLC Owner has no employees.

     

    (k)           To
the best of Seller’s actual knowledge, Seller is not in violation of any
material law, ordinance, regulations, orders or other requirements from any
governmental authorities concerning the Property; Seller has received no written
notice of violation of any laws, ordinances, regulations, orders or other
requirements from any governmental authorities concerning the
Property.

     

    (l)        
   Except as provided in this Agreement and the Due Diligence
Documents, Seller has not been served with any suits, proceed­ings, or
judgments affecting the Property, nor to the best of Seller’s actual knowledge
are any of the same threatened, which could materially and adversely affect the
Property.  Seller has not been served with any suits relating to the
Leases and, to the best of Seller’s actual knowledge, there is no threatened or
pending litigation with respect to any of the Leases.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (m)          Except
as provided in this Agreement and the Due Diligence Documents, Seller has not
used the Real Property for the generation, treatment, transportation, storage,
or disposal of any hazardous or toxic substances or wastes, nor, to the best of
Seller’s actual knowledge, have any hazardous or toxic substances or wastes
(including without limitation asbestos containing materials) been placed,
installed, dumped, deposited, or discharged on or about the Real Property or any
improvements thereon in violation of any applicable laws or regulations,
including without limitation the Comprehensive Environmental Response,
Compensation and Liability Act, 43 U.S.C. 9601 et.seq., any
“Superlien” laws, any “Superfund” laws or similar federal or state laws, or any
successor statutes thereto (the “Environmental Laws”), nor, to the best of
Seller’s actual knowledge, has any remediation or clean-up of the Real Property
occurred or been ordered pursuant to the Environmental Laws which could give
rise to (a) liability on the part of the LLC Owner or Purchaser to reimburse any
governmental authority for the cost of such remediation or clean-up, or (b) a
lien or encumbrance on the Real Property, nor has Seller received any notices
from any governmental authority with respect to any violations of the
Environmental Laws or remediation or clean-up on the Real Property, nor is
Seller aware of any such contemplated notices.

     

    (n)           To
the best of Seller's actual knowledge, except as will be shown on the Due
Diligence Documents, there are no unrecord­ed leaseholds, easements, vendor
rights, liens, encumbranc­es, restrictions or other agreements which may
affect the title, possession, use or occupancy of the Property.

     

    (o)           Between
the Effective Date and the Closing Date:

     

    (i)            Seller
will not commit any default under any of the Leases or any of the Service
Contracts;

     

    (ii)           Seller
will maintain fire and extended coverage casualty insurance in force with
respect to the Property in an amount equal to the full replacement cost of the
Property, with a deductible amount not exceeding Twenty-Five Thousand Dollars
($25,000.00).

     

    References
in this Agreement to matters known "To the best of Seller's actual knowledge"
and words of similar import shall mean and refer to matters actually known to
George Livingston without regard to any imputed knowledge, constructive
knowledge or duty of inquiry. Seller represents that George Livingston is the
agent of Seller most knowledgeable about the Property. The foregoing
representations shall survive for a period of one (1) year from and after the
Closing Date.

    

    7.2.           Purchaser’s Representations
and Warranties.  As a material inducement to Seller to execute
this Agreement and consummate the transactions contemplated herein, Purchaser
represents and warrants to Seller that:

     

    (a)           Purchaser
is a validly existing Delaware limited partnership, is in good standing in the
State of Delaware.  Purchaser has the full right and authority and has
obtained any and all consents required to enter into this Agreement and to
consummate or cause to be consummated the purchase contemplated
herein.  This Agreement and all of the documents to be delivered by
Purchaser at the Closing have been and will be authorized and properly executed
and constitute the valid and binding obligations of Purchaser.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (b)           To
the best of Purchaser’s knowledge, there is no agreement to which Purchaser is a
party or is binding on Purchaser, which is in conflict with this
Agreement.  To the best of Purchaser’s knowledge, there is no action
or proceeding pending or threatened against Purchaser which challenges or
impairs Purchaser’s ability to execute or perform its obligations under this
Agreement.

     

    (c)           Purchaser
is not a party to any bankruptcy or similar proceeding, nor are there any other
matters pending which would affect Purchaser’s ability to purchase the Interests
as provided herein.

     

    7.3.           Survival.  The
representations and warranties set forth herein shall be true and correct as of
the date hereof, and as of Closing. The representations of Seller regarding the
operating and financial statements of the Property shall survive the Closing for
a period of twelve (12) months.

     

    ARTICLE
8

     

    DAMAGE OR
DESTRUCTION/CONDEMNATION

     

    8.1.           Damage or
Destruction.  In the event of any Material Damage (as defined
herein) to or destruction of the Property or any portion thereof on or before
the Closing Date or any extension thereof, Purchaser shall, at its option, by
notice to Seller and Escrow Agent given within fifteen (15) days after Purchaser
is notified of such damage or destruction (but in any event before the Closing)
(a) elect to terminate this Agreement in which event the Earnest Money Deposit
shall be immediately returned to Purchaser or (b) proceed to Closing under this
Agreement.  If Purchaser elects to consummate the transaction
contemplated by this Agreement, Purchaser shall be entitled to settle the loss
under all policies of insurance applicable to the destruction or damage and
receive all of the proceeds of insurance applicable thereto, and Seller shall,
at Closing and thereafter, execute and deliver to Purchaser all required proofs
of loss, assignments of claims and other similar items.  If the
Property is not Materially Damaged, then neither party shall have the right to
terminate this Agreement, but Seller shall at Seller’s option either (a) at
Seller’s cost, repair the damage before Closing in a reasonable manner or (b)
assign and deliver to Purchaser all insurance proceeds pertaining to such damage
or destruction by executing and delivering to Purchaser at Closing and
thereafter all required proofs of loss, assignments of claims and other similar
items.  If Purchaser elects to take an assignment of all insurance
claims as provided for herein, Purchaser shall receive at Closing a credit
against the Purchase Price in an amount equal to any deductible(s) applicable
thereto.  “Materially
Damaged” means damage to the Property reasonably exceeding $50,000.00 in
costs to repair.  Seller agrees to promptly notify Purchaser of any
damage or destruction to any portion of the Property.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    8.2.           Condemnation.  In
the event of any threatened, contemplated, commenced or consummated proceedings
in eminent domain (notice of which shall be given to Purchaser by Seller
immediately) respecting the Property, any portion thereof, or access thereto,
then Purchaser may, at its option, by notice to Seller and to Escrow Agent given
within ten (10) days after Purchaser is notified of such actual or possible
proceedings (but in any event before the Closing): (a) terminate this Agreement
and the Earnest Money Deposit shall be immediately returned to Purchaser; or (b)
proceed under this Agreement, in which event Seller shall, at the Closing,
assign to Purchaser its entire right, title and interest in and to any
condemnation proceeds and awards applicable to the Property.

     

    ARTICLE
9

     

    REMEDIES

     

    9.1.           Purchaser’s
Remedies.  If Seller should fail to perform in accordance with
the terms of this Agreement, Purchaser shall elect to: (a) terminate this
Agreement in which event the Earnest Money Deposit shall promptly be refunded to
Purchaser; or (b) seek specific performance of Seller’s obligations to convey
the Interests in accordance with the terms of this Agreement.

     

    9.2.           Seller’s
Remedies.  If Purchaser should fail to consummate this
transaction due to Purchaser’s default hereunder, then as its sole and exclusive
remedy, Seller may terminate this Agreement and receive the Earnest Money
Deposit as liquidated damages.  The parties acknowledge that Seller’s
actual damages in the event of a default by Purchaser under this Agreement will
be difficult to ascertain, and that such liquidated damages, if accepted by
Seller, represent the parties’ best estimate of such damages.

     

    ARTICLE
10

     

    MISCELLANEOUS

     

    10.1.         Assignment.  Seller
may not assign this Agreement without the prior written consent of Purchaser,
and any such prohibited assignment shall be void.  Purchaser shall not
assign this Agreement without the prior written consent of Seller and any such
prohibited assignment shall be void; provided, however, Purchaser may assign
this Agreement to an affiliate of Purchaser without the consent of the Seller.
Purchaser agrees to provide Seller prompt notice of such affiliate
assignment.

     

    10.2.         Headings.  The
article and section headings of this Agreement are for convenience only and in
no way limit or enlarge the scope or meaning of the language
hereof.

     

    10.3.        
Invalidity.  If
any portion of this Agreement is held invalid or inoperative, then so far as is
reasonable and possible the remainder of this Agreement shall be deemed valid
and operative, and effect shall be given to the intent manifested by the portion
held invalid or inoperative.  The failure by either party to enforce
against the other any term or provision of this Agreement shall be deemed not to
be a waiver of such party’s right to enforce against the other party the same or
any other such term or provision.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    10.4.         Governing
Law.  This Agreement and all other instruments executed or to
be executed by the parties in accordance with the terms hereof shall, in all
respects, be governed, construed, applied and enforced in accordance with the
law of the State of  Florida.  Venue for any litigation
arising out of this Agreement shall lie in the State of Florida circuit courts
in and for Orange County, Florida, and Seller and Purchaser intentionally submit
to the jurisdiction of such courts.  The parties hereto waive any
right which either or both may have to receive a trial by jury with respect to
any claims, controversies or disputes which arise out of this Agreement or the
subject matter hereof.

     

    10.5.         Survival.  The
provisions of this Agreement that specifically contemplated performance after
the Closing or any termination of this Agreement shall survive the Closing, or
any such termination for the period of time set forth herein, or if no period of
time is specified, indefinitely.

     

    10.6.         No Third Party
Beneficiary.  This Agreement is not intended to give or confer
any benefits, rights, privileges, claims, actions or remedies to any person or
entity as a third party beneficiary, decree or otherwise.

     

    10.7.         Entirety and
Amendments.  This Agreement embodies the entire agreement
between the parties and supersedes all prior agreements and understandings
relating to the Property.  This Agreement may be amended and
supplemented only by an instrument in writing executed by the party against whom
enforcement is sought.

     

    10.8.         Recording.  In
no event shall this Agreement or any memorandum of this Agreement be
recorded.  Any such recordation or attempted recordation shall
constitute a breach of this Agreement by the party performing such recordation
or attempted recordation.

     

    10.9.         Other
Acts.  Purchaser and Seller each hereby agree to perform such
other acts, and to execute, acknowledge and/or deliver such other instruments,
documents and materials as may be reasonably necessary to effect consummation of
the transaction contemplated herein.

     

    10.10.       Performance of
Obligations.  No extension of time for performance of any
obligations or acts shall be deemed an extension of time for performance of any
other obligations or acts.  If any date for performance of any of the
terms, conditions or provisions hereof shall fall on a Saturday, Sunday or legal
holiday, then the time of such performance shall be extended to the next
business day thereafter.

     

    10.11.       Execution in
Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, and all of such
counterparts shall constitute one agreement.  To facilitate execution
of this Agreement, the parties may execute and exchange by telephone facsimile
or other electronic transmission, counterparts of the signature
pages.

     

    10.12.       Further
Assurances.  In addition to the acts and deeds recited herein
and contemplated to be performed, executed and/or delivered by Seller to
Purchaser at Closing, Purchaser and Seller agree to perform, execute and/or
deliver or cause to be delivered, executed and/or delivered, but without any
obligation to incur any additional liability or expense, on or after the Closing
any and all further acts, deeds and assurances as may be reasonably necessary to
consummate the transactions contemplated hereby and/or to further perfect and
deliver to Purchaser the conveyance, transfer and assignment of the Interests
and all rights related thereto.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    10.13.       Time.  Time
is of the essence in the performance of each and every term, condition and
covenant contained in this Agreement.

     

    10.14.       Confidentiality.  Neither
party hereto shall make any public announcement or disclosure of any information
related to this Agreement to outside brokers or third parties, before or after
the Closing, without the prior written specific consent of the other party,
which consent shall not be unreasonably withheld.  Notwithstanding the
preceding sentence to the contrary, Seller and Purchaser may make such
disclosure of this Agreement and the matters referred to herein to its, as
applicable, partners, officers, directors, shareholders, members, agents,
representatives, attorneys, accountants, contractors, lenders, creditors and
others in the ordinary course of its business.  Prior to the Closing,
Purchaser shall keep all Due Diligence Documents provided by Seller and the
terms of this Agreement confidential and no such information shall be disclosed
or used by Purchaser for any purpose other than evaluating the Property, making
required regulatory disclosures, and consummating the transaction contemplated
hereunder.  Purchaser shall only transmit such information as
Purchaser believes is necessary for purposes of evaluating the Property and
consummating this transaction and will endeavor to insure that the other party
receiving such information will abide by the provisions of this Section
10.14.

     

    10.15.       U.S. Currency
Required.  All sums referred to herein shall be in currency of
the United States of America.

     

    10.16.       Attorneys’
Fees.  Should either party employ attorneys to enforce any of
the provisions hereof, the party losing in any final judgment agrees to pay the
prevailing party all reasonable costs, charges and expenses, including
attorneys’ fees, expended or incurred in connection therewith.

     

    10.17.       Use of
Pronouns.  The use of the neuter singular pronoun to refer to
Seller and Purchaser shall be deemed a proper reference, even though Seller and
Purchaser may be an individual, partnership, trust, limited liability company,
corporation, trust, trustee or group of two or more individuals.  The
necessary grammatical changes required to make the provisions of this Agreement
apply in the plural sense where there is more than one seller or purchaser and
to either partnerships, limited liability companies, corporations, trusts,
trustees or individuals (male or female) shall in all instances be assumed as
though in each case fully expressed.

     

    10.18.       Notices.  Any
and all notices required or permitted hereunder shall be sent by certified or
registered mail, postage prepaid, return receipt requested, or by a nationally
recognized overnight courier service or by telecopy to the parties at the
following address:

    
       

    

    
      	 	
              If
      to Seller:

            	 
      	
              REALVEST-MONROE
      COMMERCENTER, L.L.C.

            
	 	 
      	 
      	
              c/o
      NAI Realvest

            
	 	 
      	 
      	
              2200
      Lucien Way, Suite 350

            
	 	 
      	 
      	
              Maitland,
      Florida 32751

            
	 	 
      	 
      	
              Attn:
      George D. Livingston

            
	 	 
      	 
      	
              Telephone:  (407)
      875-9989

            
	 	 
      	 
      	
              Facsimile:
      (407) 875-3137

            

    

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    
      	 	
              With
      a copy to:

            	 
      	
              Elise K. Winters,
      P.A.

            
	 	 
      	 
      	
              1006
      Drew Street

            
	 	 
      	 
      	
              Clearwater,
      Florida 33755

            
	 	 
      	 
      	
              Attention:
      Elise K. Winters, Esq.

            
	 	 
      	 
      	
              Telephone:
      (727) 442-3888

            
	 	 
      	 
      	
              Facsimile:
      (727) 443-6944

            
	 	 
      	 
      	
              Email:
      ewinters@elisekwinters.com

            
	 	 
      	 
      	 
      
	 	
              If
      to Purchaser:

            	 
      	
              CORNERSTONE
      REAL ESTATE FUNDS

            
	 	 
      	 
      	
              1920
      Main Street, Suite 400,

            
	 	 
      	 
      	
              Irvine,
      California 92614

            
	 	 
      	 
      	
              Attn:  Robert C. Peterson

            
	 	 
      	 
      	
              Telephone:
      (949) 263-4323

            
	 	 
      	 
      	
              Facsimile:  (949)
      250-0592

            
	 	 
      	 
      	
              Email:
      bpeterson@crefunds.com

            
	 	 
      	 
      	 
      
	 	
              With
      a copy to:

            	 
      	
              CARSON
      MESSINGER ELLIOTT

            
	 	 
      	 
      	
              LAUGHLIN
      & RAGAN, P.L.L.C.

            
	 	 
      	 
      	
              Attn:  James A. Burns,
      Esq.

            
	 	 
      	 
      	
              3300
      North Central Ave., 19th Floor

            
	 	 
      	 
      	
              Phoenix,
      AZ 85012

            
	 	 
      	 
      	
              Telephone:
      (602) 264-2261

            
	 	 
      	 
      	
              Facsimile:
      (602) 277-4507

            
	 	 
      	 
      	
              Email:
      jburns@carsonlaw-az.com

            
	 	 
      	 
      	 
      
	 	
              With
      a copy to:

            	 
      	
              CORNERSTONE
      REAL ESTATE FUNDS

            
	 	 
      	 
      	
              5172
      Militia Hill Road, Plymouth Meeting,
      PA

            
	 	 
      	 
      	
              Attn:  John
      F. Hanlon

            
	 	 
      	 
      	
              Telephone:
      (215) 247-1143

            
	 	 
      	 
      	
              Facsimile:  (215)
      247-3825

            
	 	 
      	 
      	
              Email: jhanlon@crefunds.com

            

    

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    

    
      	 	
              If
      to Escrow Agent

            	 
      	
              LAND
      AMERICA TITLE COMPANY

            
	 	
              or
      Title company:

            	 
      	
              Attn.:  Lance Capel

            
	 	 
      	 
      	
              1920
      Main Street, Suite 1200

            
	 	 
      	 
      	
              Irvine,
      CA 92614

            
	 	 
      	 
      	
              Phone:  (949)
      930-9323

            
	 	 
      	 
      	
              Facsimile:
      (949) 930-9393

            
	 	 
      	 
      	
              E-mail:
      lcapel@landam.com

            
	 	 
      	 
      	 
      
	 	
              With
      a copy to:

            	 
      	
              LAND
      AMERICA TITLE COMPANY

            
	 	 
      	 
      	
              Attn.:  Kathleen Huntsman

            
	 	 
      	 
      	
              1920
      Main Street, Suite 1200

            
	 	 
      	 
      	
              Irvine,
      CA 92614

            
	 	 
      	 
      	
              Phone:  (949)
      930-9320

            
	 	 
      	 
      	
              Facsimile:
      (949) 930-9393

            
	 	 
      	 
      	
              E-mail:
      khuntsman@landam.com

            

    

    

    Any such
notices shall be deemed to have been sufficiently given or served upon any party
hereto when either (a) deposited with a nationally recognized overnight courier
for next day delivery, (b) sent by telefax during business hours of any business
day, in which case notice shall be deemed given upon transmission of such
notice, or (c) three (3) days after same is sent by certified or registered
mail.  The above addresses may be changed by written notice to the
other party; provided, however, that no notice of a change of address shall be
effective until actual receipt of such notice.  Copies of notices are
for informational purposes only and a failure to give or receive copies of any
notice shall not be deemed a failure to give notice.

     

    10.19.       Construction.  The
parties acknowledge that the parties and their counsel have reviewed and revised
this Agreement and that the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement and any exhibits or amendments
thereto.

     

    10.20.       Calculation of Time
Periods.  All time periods expressed as days will be computed in
calendar days.  Unless otherwise specified, in computing any period of
time described herein, the day of the act or event for which the designated
period of time begins to run is not to be included and the last day of the
period so computed is to be included, unless such last day is a Saturday, Sunday
or legal holiday, in which event the period shall run until the end of the next
day which is neither a Saturday, Sunday or legal holiday.  The last
day of any period of time described herein shall be deemed to end at 5:00 p.m.
Eastern Standard/Daylight Savings Time.

     

    10.21        Records.  Upon
Buyer's request, for a period of one (1) year after Closing, Seller shall make
the operating statements and any and all books, records, correspondence,
financial data, Leases, delinquency reports and all other documents and matters
maintained by Seller or its agents and relating to receipts and expenditures
pertaining to the Property for the three (3) most recent full calendar years and
the current calendar year (collectively, the "Records") available to Buyer
for inspection, copying and audit by Buyer's designated accountants, and at
Buyer's expense.  Seller shall provide Buyer, but without expense to
Seller, with copies of, or access to, such factual information as may be
reasonably requested by Buyer or its designated accountants, and in the
possession or control of Seller, to enable Buyer to file any filings required by
the Securities and Exchange Commission in connection with the purchase of the
Property.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    10.22        Audit Letter.  Seller agrees to
execute and deliver to Buyers auditors an audit letter in the form attached
hereto as Exhibit
"E".

     

    

    [The
remainder of this page is intentionally left blank]

    

    [Signatures
to follow on next page]

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    [Signature
page for Agreement of Purchase and Sale between Monroe CommerCenter, L.L.C., a
Florida limited liability company, as Seller, and Cornerstone Operating
Partnership, L.P., as Purchaser]

    

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and
year first above written.

    

    

    
      	 
      	
              SELLER:

            
	 
      	 
      	 
      
	 
      	
              Realvest–Monroe CommerCenter,
      L.L.C., a Florida limited liability company

            
	 
      	
              By:
      Realvest Development, LLC, a Florida limited liability company, as its
      Manager

            
	 
      	
              By:  Realvest
      Holdings, LLC, a Florida limited liability company, as its
      manager

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      /s/ Authorized Signatory
	 
      	
              Print
      Name:

            	 
      
	 
      	
              Its:

            	 
      
	 
      	 
      	 
      
	 
      	
              Date:

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              PURCHASER:

            
	 
      	 
      	 
      
	 
      	
              Cornerstone Operating
      Partnership, L.P., a Delaware limited
partnership

            
	 
      	
              By: Cornerstone
      Core Properties REIT, Inc., a Maryland corporation, its general
      partner

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      /s/ Authorized Signatory
	 
      	
              Print
      Name:

            	 
      
	 
      	
              Its:

            	 
      
	 
      	 
      	 
      
	 
      	
              Date:

            	 
      

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    

    CONSENT
OF ESCROW AGENT

     

    

    Land
America Title Company has joined in the execution of this Agreement in order to
acknowledge its agreement to hold and disburse the Earnest Money Deposit in
accordance with the terms and provisions of this Agreement, subject to
collection.

    

    Dated as
of the ____ day of __________________, 2007.

    

    

    
      	 
      	
              LAND
      AMERICA TITLE COMPANY

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      /s/ Kathleen Huntsman
	 	 	
              Kathleen Huntsman,
      Escrow Agent

            
	 
      	 
      	 
      
	 
      	
              Escrow
      No.:

            	 
      

    

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    EXHIBIT “A”

    

    

    Legal Description of Real
Property

    

    

    Lot 46
(LESS the EAST 180 feet and LESS the South 15 feet thereof), FLORIDA LAND AND
COLONIZATION COMPANY LIMITED, W. BEARDALL’S MAP OF ST. JOSEPH’S, according to
the Plat thereof as recorded in Plat Book 1, Page 114, Public Records of
Seminole County, Florida.

    

    Containing
7.089 acres more or less.

    

    Lot 47
(Less the West 174 feet and Less the North 133.6 feet of the East 86 feet of the
West 260 feet thereof), FLORIDA LAND AND COLONIZATION COMPANY LIMITED, W.
BEARDALL’S MAP OF ST. JOSEPH’S, according to the Plat thereof as recorded in
Plat Book 1, Page 114, Public Records of Seminole County, Florida.

    

    Containing
6.927 acres more or less.

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    EXHIBIT “B”

    

    

    Rent
Roll

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    EXHIBIT “C”

    

    

    Tangible Personal
Property

    

    

    There is
no Tangible Personal Property.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    EXHIBIT “D”

    

    

    FORM OF
ESTOPPEL

     

    

    ESTOPPEL
CERTIFICATE

     

    
      	
              To:

            	
              Cornerstone
      Operating Partnership, L.P., a Delaware limited partnership,
      its successor and assigns

            

    

     

    (Lease to
be Attached)

     

    ESTOPPEL
CERTIFICATE

     

    The
undersigned, ______________________________________ ("Tenant"), hereby certifies
that:

     

    1.           Tenant
is party to that certain lease agreement ("Lease"), dated as of the
____________ day of ________________, 20___, by and between the undersigned, as
tenant ("Tenant"), and
Realvest-Monroe CommerCenter, L.L.C. as landlord ("Landlord"), covering certain
space ("Premises") in
the building located at _____________________ ("Building").  The net
rentable square footage of the Premises is
________________________.

     

    2.           The
Lease is valid and in full force and effect on the date hereof.  The
term of the Lease commenced on ____________, 20___, and the termination date of
the present term of the Lease, excluding renewals, is __________________,
20___.

     

    3.           There
are no other agreements between Landlord and Tenant with respect to the
Premises.

     

    4.           There
are no uncured defaults on the part of Tenant or on the part of Landlord under
the Lease, and, to Tenant's actual knowledge, no event has occurred and no
condition exists which, with the giving of notice or the lapse of time, or both,
will constitute a default under the Lease.

     

    5.           Fixed
or base rent payable by Tenant presently is $______________ per month and no
such rent has been paid more than 30 days in advance of its due
date.  Tenant's security deposit is $_______________.

     

    6.           Additional
rent (including Tenant's share of tax increases and cost of living increases)
payable by Tenant presently is $______________ per month and no such rent has
been paid more than 30 days in advance of its due date.

     

    7.           Tenant
claims no present charge, lien or claim of offset under the Lease or otherwise,
against rents or other charges due or to become due thereunder.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    8.           Tenant
has accepted possession of the Premises and any improvements required by the
terms of the Lease to be made by the lessor thereunder have been completed to
the satisfaction of Tenant.

     

    9.           The
address for notices to be sent to Tenant is as set forth in the
Lease.

     

    10.         This
Estoppel Certificate may be relied upon by any prospective purchaser or
encumbrance of the Building.

     

    11.         Except
as set forth in the Lease, Tenant has no right of first refusal, option or other
right to purchase the Premises or the Building, nor does Tenant have any right
to unilaterally cancel the Lease.  Except as set forth in the Lease,
Tenant has no renewal options or expansion options.

     

    12.         In
connection with its use and occupancy of the Leased Premises, Tenant is not
engaged in the production, treatment, release or storage of hazardous or toxic
substances, which pose a substantial risk of imminent damage to public health or
safety or to the environment except as may be permitted in the
Lease.

     

    IN WITNESS WHEREOF, the
undersigned has executed and delivered this Estoppel Certificate on the
___________ day of ______________, 20___.

     

    

    
      	 
      	 
      
	 
      	
              (Tenant)

            
	 
      	
              By:

            	 
      
	 
      	
              Title:

            	 
      

    

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

    EXHIBIT “E”

    

    

    Audit
Letter

    

     

    [MONTH DAY], 2007

    

    Terry G.
Roussel, CEO

    Sharon C.
Kaiser, CFO

    Cornerstone
Core Properties REIT, Inc.

    1920 Main
Street, Suite 400

    Irvine,
CA  92614

    

    

    We are
providing this letter in connection with the audit, being undertaken by Deloitte
& Touche, LLP (“Deloitte”) at the request of Cornerstone Operating
Partnership, L.P. (“Cornerstone”), of the statement of revenues and certain
expenses (Historical Summary) for the commercial property referred to as the
Monroe CommerCenter (the “Property”), for the year ended December 31, 2006, for
the purpose of Deloitte expressing an opinion as to whether the statement and
other information made available to you presents fairly, in all material
respects, the revenue and certain expenses (Historical Summary) in conformity
with the modified cash  basis of accounting.  We are also
providing this letter in connection with your review of the revenue and certain
expenses (Historical Summary) for the property for the period from January 1,
2007 through November 30, 2007 for the Property for the purpose of determining
whether any material modifications should be made to the interim financial
statement for it to be in conformity with the modified cash basis of accounting.
Cornerstone, as the contract purchaser of all of the membership interests (the
“Interests”) in Monroe CommerCenter, L.L.C., a Florida limited liability company
(the “Company”) from the undersigned pursuant to an Agreement to Sell and
Purchase, has requested that the undersigned provide this letter to
you.  Cornerstone acquired the Interests from the undersigned on
January __, 2008 (the “Closing”).  We confirm that we are responsible
for the following:

     

     

    
      	
              a.

            	
              The
      fair presentation of the statement of revenues and certain expenses
      (Historical Summary) referred to above in conformity with accounting
      principles generally accepted in the United States of
    America

            

    

     

    
      	
              b.

            	
              The
      design and implementation of programs and controls to prevent and detect
      fraud.

            

    

     

    
      	
              c.

            	
              Establishing
      and maintaining effective internal control over financial
      reporting.

            

    

     

    Certain
representations in this letter are described as being limited to matters that
are material.  Items are considered material, regardless of size, if
they involve an omission or misstatement of accounting information that, in
light of surrounding circumstances, makes it probable that the judgment of a
reasonable person relying on the information would be changed or influenced by
the omission or misstatement.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    We
confirm, to the best of our knowledge and belief, the following representations
made to you during your audits.

     

    
      	
               
      

            	
              1.

            	
              The
      Historical Summary referred to above is fairly presented in conformity
      with accounting principles generally accepted in the United States of
      America.

            

    

     

    
      	
               
      

            	
              2.

            	
              We
      have made available to you all financial records and related data to which
      we have or can reasonably obtain access
to.

            

    

     

    
      	
               
      

            	
              3.

            	
              There
      have been no communications from regulatory agencies concerning
      noncompliance with or deficiencies in financial reporting
      practices.

            

    

     

    
      	
               
      

            	
              4.

            	
              We
      have no knowledge of any fraud or suspected fraud affecting the Company or
      the Property involving (a) management, (b) employees who have significant
      roles in the Company’s internal control over financial reporting, or (c)
      others if the fraud could have a material effect on the Historical
      Summary.

            

    

     

    
      	
               
      

            	
              5.

            	
              We
      have no knowledge of any allegations of fraud or suspected fraud affecting
      the Company received in communications from employees, former employees,
      analysts, regulators, short sellers, or
others.

            

    

     

    
      	
               
      

            	
              6.

            	
              There
      are no unasserted claims or assessments that legal counsel has advised us
      are probable of assertion.

            

    

     

    
      	
               
      

            	
              7.

            	
              We
      have disclosed to you any change in the Company’s internal control over
      financial reporting that occurred during the Company’s most recent fiscal
      year  that has materially affected, or is reasonably likely to
      materially affect, the Company’s internal control over financial
      reporting.

            

    

     

    
      	
               
      

            	
              8.

            	
              There
      are no transactions that have not been properly recorded in the accounting
      records underlying the Historical
Summary.

            

    

     

    
      	
               
      

            	
              9.

            	
              Related
      party transactions have been appropriately identified, properly recorded,
      and disclosed in the financial
statements.

            

    

     

    
      	
               
      

            	
              10.

            	
              There
      are no:

            

    

     

    
      	
               
      

            	
              a.

            	
              Violations
      or possible violations of laws or regulations whose effects should be
      considered for disclosure in the Historical Summary or as a basis for
      recording a loss contingency.

            

    

     

    
      	
               
      

            	
              b.

            	
              Other
      liabilities or gain or loss contingencies that are required to be accrued
      or disclosed.

            

    

     

    
      	
               
      

            	
              11.

            	
              The
      Company has complied with all aspects of contractual agreements that may
      have an effect on the Historical Summary in the event of
      noncompliance.

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              12.

            	
              No
      events have occurred subsequent to December 31, 2006 that require
      consideration as adjustments to or disclosures in the financial
      statements, other than as
disclosed.

            

    

     

    
      	
               
      

            	
              13.

            	
              We
      believe that all expenditures that have been deferred to future periods
      are recoverable.

            

    

     

    
      	
               
      

            	
              14.

            	
              Based
      on available information, management has assessed its environmental
      liabilities and has determined no reserve is
  required.

            

    

     

    
      	
               
      

            	
              15.

            	
              We
      do not have (a) asserted and unsettled income tax contingencies, or (b)
      unasserted income tax contingencies caused by uncertain tax positions
      taken in our income tax returns filed with the Internal Revenue Services
      and state tax authorities that are probable of assertion by such tax
      authorizes. Furthermore, we have not received either written or oral tax
      opinions that are contrary to our
assessment.

            

    

    

     

    
      	 
      	
              Realvest-Monroe
      CommerCenter, L.L.C., a Florida limited liability
  company

            
	 
      	
              By:  Realvest
      Development, LLC, a Florida limited liability company, as its
      Manager

            
	 
      	
              By:  Realvest
      Holdings, LLC, a Florida limited liability company, as its
      manager

            

    

    

     

    
      	 
      	
              By:

            	 
      
	 
      	
              Printed
      Name:

            	 
      
	 
      	
              Its:

            	 
      
	 
      	
              Date:

            	 
      

    

     

     

    31ex10_2.htm

    
      

    

    Exhibit
10.2

    
       

      FIRST
AMENDMENT TO

      AGREEMENT
OF PURCHASE AND SALE

      

      This
First Amendment to Agreement of Purchase and Sale (the “Amendment”) is made effective
as of January 15, 2008, by and between Realvest-Monroe CommerCenter
L.L.C., a Florida limited liability company (­“­Seller”), and Cornerstone Operating Partnership,
L.P., a Delaware limited partnership  ("Purchaser").

      

      RECITALS:

      

      A.          Purchaser
and Seller are parties to that certain Agreement of Purchase and Sale dated
November 29, 2007 (the "Agreement").

      

      B.          Purchaser
and Seller desire to amend the Agreement to reduce the Purchase Price and extend
the Inspection Period and modify other provisions accordingly.

      

      AGREEMENTS:

      

      1.           Purchase Price.  The
Purchase Price for the Property shall be reduced to Fifteen Million One Hundred
Fifty Thousand Dollars ($15,150,000.00).

      

      2.           Inspection
Period.  The Inspection Period shall terminate at 5:00 p.m.
Eastern Standard Time on Friday, January 18, 2008.

      

      3.           Ratification. Except as
expressly set forth in this Amendment, the Agreement remains unmodified and in
full force and effect. Should there be any conflict between the terms of this
Amendment and the terms of the Agreement the terms of this Amendment will
control.  The capitalized terms used herein, unless otherwise
indicated, shall have the meanings ascribed to them in the
Agreement.

      

      IN
WITNESS WHEREOF, the parties hereto have executed this First Amendment on the
day and year first above written.

      

      
        	 
      	
                SELLER:

              
	 
      	
                Realvest–Monroe CommerCenter,
      L.L.C., a Florida limited liability company

              
	 
      	
                By: 
      Realvest Development, LLC, a Florida limited liability company, as its
      Manager

              
	 
      	
                By:  Realvest
      Holdings, LLC, a Florida limited liability company, as its
      manager

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      /s/ George D. Livingston
	 
      	 
      	
                George
      D. Livingston, its managing member

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                PURCHASER:

              
	 
      	
                Cornerstone Operating
      Partnership, L.P., a

              
	 
      	
                Delaware
      limited partnership

              
	 
      	
                By:

              	
                Cornerstone
      Core Properties REIT, INC.,

              
	 
      	 
      	
                a
      Maryland corporation, its general partner

              
	 
      	 
      	 
      
	 
      	
                By:

              	 
      /s/ Authorized Signatory
	 	Name: 	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]