Document:

EX-10.1

 Exhibit 10.1 
 AMENDMENT NO. 4 
 AMENDMENT NO. 4 dated as of December 14, 2012
among The GEO Group, Inc., a Florida corporation (the “Borrower”), its Subsidiaries listed on the signature pages hereto, and BNP Paribas, in its capacity as Administrative Agent under the Credit Agreement referred to below (the
“Administrative Agent”) pursuant to authority granted to it by the Required Lenders. 
 The Borrower, the
Lenders party thereto and the Administrative Agent are parties to a Credit Agreement dated as of August 4, 2010 (as amended by Amendment No. 1 dated as of February 8, 2011, by Amendment No. 2 dated as of May 2, 2011, by
Amendment No. 3 dated as of August 30, 2012 and as the same may be further modified and supplemented and in effect from time to time, the “Credit Agreement”), providing, subject to the terms and conditions thereof, for
extensions of credit (by means of loans and letters of credit) to be made by the Lenders to the Borrower in an aggregate principal or face amount not exceeding $1,100,000,000. 
 The Borrower intends to elect to be treated as a real estate investment trust as defined and taxed under Section 856-860 of the Internal Revenue Code of 1986, as amended from time to time, and in
furtherance thereof, the Borrower intends to restructure its operations, including to divest its healthcare division pursuant to that certain Purchase Agreement by and between Borrower and GEO Care Holdings LLC, a Florida limited liability company.

 In connection therewith, the Borrower has requested, and the Lenders party hereto have agreed, that the Credit Agreement be
amended in certain respects on the terms and conditions hereof, and accordingly the parties hereto hereby agree as follows: 

Section 1. Definitions; Section References. Except as otherwise defined in this Amendment No. 4 or as the context
requires, terms defined in the Credit Agreement are used herein as defined therein, and references to Sections mean the respective Sections of the Credit Agreement. 
 Section 2. Amendments. 
 2.1 References Generally. References
in the Loan Documents to the Credit Agreement (including in the Credit Agreement to the “Agreement”), shall be deemed to be references to the Credit Agreement as amended hereby. 

2.2 Amendments to the Credit Agreement. Subject to the satisfaction of the conditions precedent specified in Section 3 below,
but effective as of the date hereof, the Credit Agreement shall be amended as follows: 
 (a) Definitions. 

(i) The following new defined terms shall be inserted into Section 1.01 in the appropriate alphabetical order: 

“Amendment No. 4” means Amendment No. 4 to this Agreement dated as of December 14, 2012.

 “Amendment No. 4 Effective Date” means the date on
which the amendments contemplated by Amendment No. 4 become effective. 
 “Purchase
Agreement” means that certain Purchase Agreement between Borrower and GEO Care Holdings LLC, dated on or about December 4, 2012. 
 “Purchaser” means GEO Care Holdings LLC, a Florida limited liability company and Affiliate of the Borrower. 

“REIT” means a real estate investment trust as defined and taxed under Section 856-860 of the
Internal Revenue Code of 1986, as amended from time to time. 
 (ii) The definition of EBITDA in Section 1.01 shall be
amended to read as follows: 
 “EBITDA” means, for any period, Net Income for such period plus the sum
of the following determined on a consolidated basis, without duplication, for the Borrower and its Subsidiaries and Other Consolidated Persons in accordance with GAAP: (a) the sum of the following to the extent deducted in determining Net
Income: (i) income and franchise taxes, (ii) Interest Expense, (iii) amortization, depreciation and other non-cash charges (excluding insurance reserves), (iv) extraordinary charges, (v) an amount (not exceeding $20,000,000)
equal to the aggregate amount of start-up and transition costs incurred during such period in connection with Facilities and operations, and (vi) the amount of transaction costs and expenses and extraordinary charges incurred with respect to
activities (including any restructuring) undertaken in good faith for the purpose of permitting the Borrower to elect to be treated as a REIT, as certified by a Financial Officer of the Borrower to the Administrative Agent, whether or not incurred
prior to, on or after such election, less (b) to the extent added in determining Net Income, interest income and any extraordinary gains. If the Acquisition or any Permitted Acquisition is consummated at any time during a period for
which EBITDA is calculated, EBITDA for such period shall be calculated on a Pro Forma Basis and, to the extent deducted in determining Net Income for such period, the amount of transaction costs and expenses and extraordinary charges relating to the
Acquisition or such Permitted Acquisition (or relating to any acquisition consummated by the acquired entity prior to the closing of the Acquisition or such Permitted Acquisition but during the period of computation), as the case may be, shall be
added to EBITDA for such period. For avoidance of doubt, the Make-Whole Premium (as defined in the MCF Indenture) and expenses paid in respect of the redemption of the MCF Bonds shall be deemed a transaction expense related to the acquisition of
MCF.” 
 (b) Other Amendments. 

  
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 (i) The last sentence of Section 1.04 is amended by adding the following immediately
before the period at the end thereof: 
 “; provided however, the Borrower may change its fiscal year to a calendar
year, and concurrently therewith, may change the duration of its fiscal quarters to coincide with each calendar quarter” 

(ii) Section 6.03 shall be amended by deleting “and” at the end of paragraph (k) thereof, replacing the period with
“;” at the end of paragraph (l) thereof and adding a new paragraph (m) and a new paragraph (n) thereto reading as follows: 
 “(m) the Borrower may sell, lease, transfer or otherwise dispose of any of its property or assets to any Restricted Subsidiary that is a Guarantor; and 

(n) the Borrower may sell all of its Equity Interests in GEO Care, Inc. to Purchaser on substantially the terms and conditions set forth
in the Purchase Agreement.” 
 (iii) Section 6.04 shall be amended by deleting “and” at the end of paragraph
(n) thereof, replacing the period with “; and” at the end of paragraph (o) thereof and adding a new paragraph (p) thereto reading as follows: 
 “(p) Investments in Restricted Subsidiaries that are Guarantors.” 
 (iv)
Section 6.05(b) shall be amended and restated as follows: 
 “(b) the Borrower may declare and pay dividends with
respect to its capital stock payable in additional shares of its common stock (provided that any related dividends in any other form, including cash, shall be subject to the limitations set forth in this Section 6.05), and may make Restricted
Payments pursuant to and in accordance with stock option plans or other benefit plans established in the ordinary course of business for directors, management, employees or consultants of the Borrower and its Subsidiaries;” 

(v) Section 6.05(c) shall be amended and restated as follows: 

“(c) if no Default or Event of Default shall have occurred and be continuing or would result therefrom, the Borrower may declare,
pay and make Restricted Payments in an aggregate amount after the date hereof not exceeding the sum of (i) $75,000,000 after the Amendment No. 4 Effective Date, plus (ii) the lesser of $50,000,000 or the sum of (x) the aggregate
amount of Net Available Proceeds from Equity Issuances received by the Borrower after the Amendment No. 1 Effective Date not required to prepay Loans pursuant to Section 2.10 hereof and not used for

  
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any other purpose plus (y) 50% of the aggregate value of all capital stock issued by the Borrower after the Amendment No. 1 Effective Date as consideration for Permitted
Acquisitions;” 
 (vi) Section 6.05(d) shall be amended and restated as follows: 

“(d) the Borrower may make Restricted Payments in an aggregate amount not exceeding the sum of $90,000,000; provided that
(i) no Default or Event of Default shall have occurred and be continuing or result therefrom, (ii) the Borrower has publicly announced that it intends to qualify as a REIT, and (iii) a Financial Officer of the Borrower certifies to
the Administrative Agent within the period of five (5) Business Days prior to any such Restricted Payments that such Restricted Payments are being made in good faith for the purpose of, directly or indirectly, permitting the Borrower to elect
to qualify as a REIT (notwithstanding that any such election may not occur on a date on or about the date of such Restricted Payments)”. 
 (vii) Section 6.06 shall be amended by deleting “and” at the end of first clause (c) thereof, replacing the second use of “(c)” thereof with “(d)”, and replacing
the period at the end of renamed clause (d) with “; and” and adding a new paragraph (e) thereto reading as follows: 
 “(e) the transactions contemplated by the Purchase Agreement, including the exhibits thereto.” 
 (viii) Section 6.09(a) shall be amended and restated as follows: 
 “(a)
Total Leverage Ratio. The Borrower will not permit the Total Leverage Ratio on the last day of any of its fiscal quarters to exceed the ratio set forth below opposite the period in which such last day falls: 

  
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	 Period
	  	Maximum Ratio	 
	 Effective Date through and including the last day of the fiscal year 2011
	  	 	5.25 to 1.00	  
		
	 First day of the fiscal year 2012 through and including the last day of the second quarter of the fiscal year
2013
	  	 	5.00 to 1.00	  
		
	 First day of the third quarter of fiscal year 2013 through and including the last day of the fiscal year 2013
	  	 	4.75 to 1.00	  
		
	 Thereafter
	  	 	4.25 to 1.00	” 

 Section 3. Representations and Warranties. The Borrower represents and warrants to the
Lenders and the Administrative Agent, that: (a) the representations and warranties set forth in Article III (as hereby amended) of the Credit Agreement, and in each of the other Loan Documents, are true and complete on the date hereof as if
made on and as of the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, such representation or warranty shall be true and correct as of such specific date), and as if each reference
in said Article III to “this Agreement” included reference to this Amendment No. 4 and (b) no Default has occurred and is continuing. All references herein to “the date hereof” mean references to the date of the Credit
Agreement. 
 Section 4. Conditions Precedent. The amendments set forth in Section 2 hereof shall become
effective on the date that each of the following conditions shall have been satisfied: 
 (a) Each Lender which has provided its
consent to the Amendment No. 4 shall have received an amendment work fee equal to 10 basis points of the sum of such Lender’s total Revolving Credit Exposure, outstanding Term Loans, outstanding Incremental Loans and unused Commitments;
and 
 (b) the Administrative Agent shall have received counterparts of this Amendment No. 4 executed by the Borrower, the
Guarantors and the Administrative Agent, pursuant to authority granted to it by the Required Lenders. 
 Section 5.
Security Documents. The Borrower and the Guarantors hereby ratify and confirm their respective obligations, and the Liens respectively granted by them, under the Loan Documents. 

Section 6. Miscellaneous. Except as herein provided, the Loan Documents shall remain unchanged and in full force and effect.
This Amendment No. 4 may be executed in any number of counterparts, all of which taken together shall constitute one and the same amendatory instrument and any of the parties hereto may execute this Amendment No. 4 by signing any such
counterpart. This Amendment No. 4 shall be governed by, and construed in accordance with, the law of the State of New York. 

[Signature pages follow] 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to be duly
executed and delivered as of the day and year first above written. 
  

			
	THE GEO GROUP, INC., as Borrower
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer
           The GEO Group, Inc.

  
  

 

  
 Amendment No.
4 

 
			
	 GUARANTORS:
  

CORRECTIONAL SERVICES CORPORATION

		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
Finance

  

			
	CORRECTIONAL PROPERTIES PRISON FINANCE LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Tresaurer

  
  

 

			
	CPT LIMITED PARTNER, LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  
  

 

			
	 CPT OPERATING PARTNERSHIP L.P.
 By: GEO Acquisition II, Inc., as General Partner
  

		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  

			
	GEO ACQUISITION II, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  

			
	GEO CARE, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Assistant Treasurer
           Geo Care, Inc.

  
  

 

  
 Amendment No.
4 

 
			
	GEO HOLDINGS I, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  

			
	GEO RE HOLDINGS LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Assistant Treasurer

  
  

 

			
	GEO TRANSPORT, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
VP, Assistant Treasurer

  

			
	GEO CARE OF SOUTH CAROLINA, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
VP, Finance

  

			
	PUBLIC PROPERTIES DEVELOPMENT AND LEASING LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  
  

 

			
	CORNELL COMPANIES, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  
  

 

  
 Amendment No.
4 

 
			
	CCG I CORPORATION
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  
  

 

			
	CORNELL ABRAXAS GROUP, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

 . 

			
	CORNELL CORRECTIONS MANAGEMENT, INC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	CORNELL CORRECTIONS OF ALASKA, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	CORNELL CORRECTIONS OF CALIFORNIA, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	CORNELL CORRECTIONS OF RHODE ISLAND, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  
  

 

  
 Amendment No.
4 

 
			
	CORNELL CORRECTIONS OF TEXAS, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	CORNELL INTERVENTIONS, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	CORRECTIONAL SYSTEMS, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	WBP LEASING, INC.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  

			
	WBP LEASING, LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Treasurer

  
  

 

			
	BII HOLDING CORPORATION
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
VP, Assistant Treasurer

  
  

 

  
 Amendment No.
4 

 
			
	BII HOLDING I CORPORATION
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Assistant Treasurer

  
  

 

			
	BEHAVIORAL HOLDING CORP.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Assistant Treasurer

  

			
	BEHAVIORAL ACQUISITION CORP.
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Assistant Treasurer

  

			
	B.I. INCORPORATED
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title: VP
& Assistant Treasurer

  
  

 

			
	MCF GP, LLC,
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  
  

 

			
	GEO MCF LP, LLC
		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  
  

 

  
 Amendment No.
4 

 
			
	 MUNICIPAL CORRECTIONS FINANCE, L.P.,
 By: MCF GP, LLC, as General Partner

		
	By:	 	/s/ Shayn March
		 	 Name: Shayn March
 Title:
Treasurer

  
  

 

  
 Amendment No.
4 

 
			
	 BNP PARIBAS,
 as
Administrative Agent

		
	By:	 	/s/ Brendan Heneghan
		 	 Name: Brendan Heneghan

Title: Vice President

  
  

 

			
	
		
	By:	 	/s/ John Treadwell, Jr.
		 	 Name: John Treadwell, Jr.

Title: Vice President

  

  
 Amendment No.
4Contract for Sale

 Exhibit 10.1 
 REAL ESTATE PURCHASE AGREEMENT 
 THIS REAL
ESTATE PURCHASE AGREEMENT (this “Agreement”) is made as of the 1st day of November, 2006 (“Effective Date”) by and between NEEDLE DEVELOPMENT, INC., a Georgia corporation (“Seller”) and SOLOMON HOLDINGS IV-DOGWOOD ACWORTH, LLC, a Georgia
limited liability company, (“Purchaser”). 
 FOR AND IN CONSIDERATION OF the premises set forth herein, the
receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Property. Seller
shall sell, and Purchaser shall purchase, in fee simple, subject to and upon the following terms and conditions, that certain real property lying and being in Cobb County, Georgia as more particularly described on Exhibit “A”
attached hereto and made a part hereof, together with: all improvements located thereon; all fixtures attached thereto, including but not limited to all heating, lighting, plumbing, air conditioning and floor coverings; and all easements, rights and
privileges appurtenant thereto (all of the foregoing are collectively hereinafter referred to as the “Property”). 

2. Purchase Price. The total purchase price for the Property shall be the greater of either (i) the fair market value of the
Property determined by a qualified real estate appraiser mutually acceptable to the Seller and the Purchaser; or (ii) Three Million Nine Hundred Fifty Thousand and 00/100 Dollars ($3,950,000) (the “Purchase Price”) of which One
Thousand and No/100 Dollars ($1,000.00) (“Earnest Money”), whether Purchase Price is established under (i) or (ii) above, shall be paid by Purchaser to Seller within three (3) business days after the Effective Date of this
Agreement, to be held as earnest money hereunder in an interest bearing account, all of which shall be non-refundable upon execution of this Agreement and opening of escrow, except as provided below. At closing the Earnest Money and all interest
accrued thereon shall be paid to Seller and the balance of the Purchase Price due hereunder, less adjustments and expenses provided herein, will be paid to Seller, either in cash, by cashier’s check, or by wire transfer. In the event this
transaction closes, all such amounts shall be credited towards the Purchase Price. 
 3. Conveyance. At closing, Seller
shall deliver to Purchaser its general warranty deed in recordable form, fully executed and acceptable to the Title Company (the “Deed”), conveying to Purchaser good and marketable title to the Property in fee simple, free and clear of all
liens and encumbrances except for taxes not yet due and payable, and only those easements, mineral rights held by others (if any), rights-of-way, covenants, reservations and restrictions of record, including applicable zoning laws, which are
hereafter approved in writing by the Purchaser or deemed approved in writing pursuant to the terms of this Agreement (the “Permitted Exceptions”). 
 4. Closing Date and Termination: Closing Date shall occur at a date mutually agreeable to the Parties. The Parties agree that if a Condition to Closing (as defined herein) becomes unattainable,
this Agreement will terminate at such time. 

 5. Purchaser’s Conditions to Closing. Purchaser shall have until the Closing
Date to examine the Property and all matters relating thereto, as well as take other steps necessary to make Property feasible for the construction of an assisted living facility (“Conditions to Closing”). The matters included in the
Conditions to Closing shall be, without limitation, the status of title as described in Paragraph 6, the survey described in Paragraph 7, the environmental analysis of the Property under Paragraph 8, the
satisfaction of the contingencies specified in Paragraph 9, and the determination by Purchaser that the Property is suitable for Purchaser’s intended use. 
 6. Title and Survey Review 
 (a) Purchaser has had title to the Property to
be examined by a title company acceptable to Purchaser (the “Title Company”) and shall request that the Title Company issue an updated commitment for an owner’s policy of title insurance, a copy of which will be furnished to Seller
(the “Title Commitment”). The cost of the title insurance examination and the Title Commitment (if any) shall be paid by Purchaser. 
 (b) Purchaser may, at Purchaser’s expense, obtain an updated ALTA/ACSM survey of the Property, prepared in conformance with Purchaser’s survey requirements, from a licensed surveyor reasonably
acceptable to the Title Company (the “Survey”). 
 (c) If the updated Title Commitment or Survey shows material
changes from the commitment and survey already obtained by Purchaser; then Purchaser shall, within ten (10) days after its receipt of the latter of the Title Commitment or the Survey, give Seller written notice thereof (the “Objection
Notice”). The matters that are set forth in the Objection Notice are hereinafter referred to as “Title Objections”. 
 (d) Seller shall notify Purchaser within five (5) business days of receipt of the Objection Notice of its intended action in regard to satisfying or remedying the Title Objections. If Seller elects
to satisfy or remedy the Title Objections, but has not so satisfied or remedied all Title Objections within fifteen (15) days after receipt of the Objection Notice, or if Seller elects not to satisfy or remedy the Title Objections, then
Purchaser may, by written notice within five (5) days after the expiration of said fifteen (15) day period, either (i) terminate this Agreement; or (ii) elect to waive its objection to any uncured Title Objections and to proceed
to close this transaction without reduction in the Purchase Price; provided, however that Purchaser shall have the right to remove such exceptions which can be cured by payment of a stated sum of money (such as deeds of trust, security agreements,
past-due ad valorem taxes and assessments constituting a lien against the Property, mechanic’s and materialmen’s liens, and judgments which have attached to and become liens against the Property), and Purchaser shall receive credits
against the Purchase Price in amounts equal to the sum of money paid, plus the costs incurred, in curing all such Title Objections. Any exceptions shown on the Title Commitment or the Survey to which Purchaser does not object as herein provided, and
any exceptions to which Purchaser waives its objections by written notice, shall be deemed approved by Purchaser and shall be “Permitted Exceptions”. 
 7. Purchaser’s Access to the Property. Purchaser, its agents, engineers, surveyors and other representatives shall have the right, during the term of this Agreement, to enter upon

  
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the Property to inspect, examine, survey the Property, conduct engineering and/or environmental assessments and tests of the Property, and otherwise to do that which, in the opinion of Purchaser,
is necessary to determine the boundaries and acreage of the Property, the suitability of the Property for the uses intended by Purchaser, and the physical condition of the Property. Purchaser agrees to indemnify and hold Seller harmless from and
against any physical damages arising directly from Purchaser’s inspection and testing of the Property, which indemnity shall survive closing or the termination of this Agreement. 

8. Environmental Provisions. 
 (a) Seller represents and warrants that the Property and its existing and prior uses comply and have at all times complied with all applicable federal, state, county or local statutes, laws, regulations,
rules, ordinances, codes, standards, orders, licenses and permits relating to environmental matters (being hereinafter collectively referred to as the “Environmental Laws”). Without limiting the generality of the foregoing: 

 

	 	(i)	Seller, and to the best of Seller’s knowledge, all of Seller’s present and former tenants, occupants and users of the Property, have operated the Property and
have received, handled, used, stored, treated, transported, and disposed of all petroleum products and all other toxic, dangerous, or hazardous chemicals, materials, substances, pollutants, and wastes (all the foregoing being hereinafter
collectively referred to as “Hazardous Materials”) in strict compliance with all Environmental Laws. 

  

	 	(ii)	there are no existing, pending, or threatened statutes, orders, standards, rules, regulations, or claims from any governmental agency or private party relating to
environmental matters requiring any cleanup, removal or remedial actions with respect to the Property. 

  

	 	(iii)	no Hazardous Materials have been released into the environment or have been deposited, spilled, discharged, placed or disposed of at, on or near the Property, nor has
the Property been used at any time by any person as a landfill or disposal site for Hazardous Materials or for garbage, waste or refuse of any kind. 

  

	 	(iv)	to the best of Seller’s knowledge, the Property is not listed on the United States Environmental Protection Agency’s National Priorities List of Hazardous
Waste Sites nor any other log, list, schedule, inventory, or record of Hazardous Materials or Hazardous Waste sites whether maintained by the United States any state or local governmental unit. 

(b) Purchaser shall have the right to conduct an environmental investigation of the Property to determine the presence, if any, of
hazardous waste, hazardous materials, toxic substances and the like. In the event that the Property Documents or the results of Purchaser’s 

  
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investigation reveal environmental matters unsatisfactory to Purchaser, Purchaser shall within fifteen (15) business days of receiving the information deliver written notice of its
objections to Seller (“Environmental Objections”). Seller shall have a period of ten (10) days, or such longer period of time as may be agreed to by Purchaser following receipt of such notice, to cure Purchaser’s Environmental
Objections, but shall have no obligation to do so. Seller shall notify Purchaser within five (5) business days of receiving notice of Purchaser’s Environmental Objections of its intended action in regard to curing Purchaser’s
Environmental Objections. The closing may, if necessary and only by written consent of both Purchaser and Seller, be adjourned for such time period as is necessary to cure the Environmental Objections. If Purchaser’s objections are not cured
within such period to Purchaser’s satisfaction, Purchaser may, by written notice to Seller, elect to (i) terminate this Agreement in accordance with Paragraph 4; or (ii) waive such objections and proceed to close this
purchase transaction without reduction of the Purchase Price. 
 Purchaser’s Contingencies. The Purchaser’s
obligations herein are contingent upon and subject to the satisfaction on, and as of, the Closing, of each of the following conditions (any of which may be waived in whole or in part in writing by Purchaser on, or prior to the Closing): 

(c) There shall be no change in the status of title from that shown in the Title Commitment as approved by Purchaser, and no material set
of facts or circumstances shall have occurred or changed since the Effective Date which materially and adversely affects the value of or use of the Property. 
 (d) The representations and warranties of the Seller contained herein continue to be true and correct as of the day of closing. 
 (e) Buyer shall have been able to locate and secure financing at terms acceptable to Buyer. 
 (f) Buyer shall have been able to obtain a Certificate of Need from the Georgia Department of Community Health and all other certificates, or licenses approvals (including zoning) required to operate an
assisted living facility on the Property. 
 (g) There shall have been secured such permissions, approvals, determinations,
consents and waivers, if any, as may be required by law, regulatory authorities or the Contracts. 
 (h) Seller shall have
performed all of its obligations under this Agreement. 
 9. Prorations and Expenses. Prior to the closing, Seller shall
pay all real estate and intangibles taxes and assessments with respect to the Property (the “Taxes”) which are then due and payable. The Taxes due and payable for the calendar year in which closing occurs shall be prorated between Seller
and Purchaser, as of the date of closing. If the tax bills are not available as of the date of closing, the amount of the prorated taxes and assessments shall be based on the most recent tax bills and a provision shall be added to the settlement
statement that the Purchaser and Seller agree to adjust the proration accordingly when the current year’s tax bills are issued. Seller also shall be fully responsible for payment of any “rollback” taxes or similar charges which may
become due on the Property, before or after closing, and which pertain to the period 

  
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of Seller’s ownership of the Property. The cost of preparing and recording the Deed, including any transfer or recording tax, shall be paid by Seller. Purchaser shall pay for the cost of any
title insurance policy issued in connection with this transaction. Purchaser and Seller shall each pay their own attorneys fees in connection with this transaction. All other escrow fees shall be divided equally between Seller and the Purchaser.

 10. Maintenance and Repair; Risk of Loss. Seller shall maintain in full force and effect all insurance policies
currently covering the Property until closing, and shall maintain the Property in good condition and repair, and in compliance with all regulatory requirements, ordinary wear and tear excepted. Seller shall not modify or amend any contract
pertaining to the Property without Purchaser’s prior written approval. Seller shall allow no liens to be placed or continued against the Property. The risk of loss or damage to the Property from fire, flood, windstorm or other casualty until
delivery of the Deed is assumed by Seller. Risk of loss or damage to the Property upon and after delivery of the warranty deed is assumed by Purchaser. If, before the date of closing, any condemnation (taking by eminent domain) proceeding is or has
been commenced with respect to the Property or any casualty results in damage to the Property or improvements thereon, Purchaser shall have the option of either terminating this Agreement or of completing the purchase contemplated herein. In the
event Purchaser shall elect to terminate this Agreement, all parties shall be relieved and discharged of any further liability hereunder. If, however, Purchaser shall elect to complete this transaction, there shall be no reduction in the Purchase
Price and Purchaser shall be entitled, in the case of fire or other casualty, to receive from the insurance carrier all insurance proceeds or, in the case of condemnation, to receive the entire award for the Property or the portion thereof so taken.
Seller shall execute and deliver to Purchaser at closing all proper instruments for the assignment and collection of such proceeds and awards. 
 11. Closing. 
 (a) At the closing, Seller shall deliver the following:

  

	 	(i)	The Deed. 

  

	 	(ii)	An affidavit and indemnity agreement to the Title Company enabling it to issue its final title insurance policy without exception for mechanic’s or
materialmen’s liens, parties in possession, or unrecorded leases. 

  

	 	(iii)	An affidavit stating Seller’s U.S. taxpayer identification number, that Seller and all persons holding beneficial interest in the Property are “United States
Persons,” as defined by Section 1445(f)(3) and Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended, and that the purchase of the Property by Purchaser pursuant to this Agreement is not subject to the withholding
requirements of Section 1445(a) of the Code. 

  
 -5-

	 	(iv)	Instruments satisfactory to Purchaser and Purchaser’s title insurance company reflecting the proper authority of Seller to consummate the transactions contemplated
by this Agreement. 

  

	 	(v)	Any other documents or instruments reasonably necessary to close the sale. 

 (b) At the closing, Purchaser shall deliver: 
  

	 	(i)	The balance of the Purchase Price. 

  

	 	(ii)	Any other documents or instruments reasonably necessary to close the sale. 

 (c) Possession of the Property shall pass to Purchaser at the closing. 
 (d)
Either party may elect to close by overnight courier, through the Title Company. 
 12. Default. 

(a) In the event that Purchaser defaults and Seller has not defaulted, or the Agreement terminates as discussed in
Paragraph 4, Seller shall be entitled to receive the Earnest Money and interest earned thereon, if any, as agreed upon liquidated damages, and the parties shall be relieved from any further liability hereunder. Purchaser and Seller
specifically acknowledge and agree that the damage to Seller from Purchaser’s breach hereunder would be difficult or impossible to accurately determine, that the Earnest Money and interest earned thereon is a reasonable estimate of
Seller’s damages, and that the retention by Seller of the Earnest Money and interest earned thereon does not constitute a penalty. The Seller waives the right to assert the defense of lack of mutuality in any action for specific performance
instituted by the Purchaser. 
 (b) In the event Seller defaults and Purchaser has not defaulted, Purchaser shall be entitled,
at Purchaser’s option: 
  

	 	(i)	to declare this Agreement terminated. Upon any such declaration, and the parties shall thereafter be relieved from any further liability hereunder, and the Earnest
Money shall be returned to Purchaser. 

 (c) In the event of default, the non-defaulting party shall have the
right to recover from the defaulting party all costs and expenses incurred in enforcing this agreement, including reasonable attorney’s fees. 
 13. Broker. Purchaser and Seller represent and warrant to one another that they have not dealt with any broker, consultant, finder, or like agent who might be entitled to any compensation in
connection with the sale of the Property to Purchaser. No broker has authority to bind either party to this Agreement. 

  
 -6-

 Seller and Purchaser do each hereby indemnify and agree to hold one another harmless from
and against any and all causes, claims, demands, losses, liabilities, commissions, settlements, judgments, damages, expenses and fees (including reasonable attorneys’ fees and court costs) in connection with any claim for commissions, fees,
compensation or other charges relating in any way to this transaction, or the consummation thereof, which may be made by any person, firm or entity as a result of any of Seller’s or Purchaser’s acts or the acts of Seller’s or
Purchaser’s representatives. 
 14. Assignment. Purchaser may assign this Agreement and any rights hereunder without
prior written consent of Seller but shall promptly notify Seller of such assignment. If Purchaser assigns this Agreement, Purchaser shall be relieved of any future liability under this Agreement, provided the assignee shall assume in writing all of
the obligations of Purchaser hereunder. 
 15. Notices. Any notice required or permitted to be given to a party under
this Agreement, shall be in writing and shall be deemed given: (i) on the day it is delivered personally (with receipt); or (ii) the day after it is deposited with a nationally-recognized courier service for next day delivery; or
(iii) three (3) days after it is deposited in the U.S. certified mail, postage prepaid, return receipt requested, addressed as follows: 
  

			
	To Purchaser:	  	 Solomon Holdings IV - Dogwood Acworth, LLC
 48 Roswell Street
 Alpharetta, GA 30004
 Attn: Alfred S. Holbrook, III

		
	With a copy to:	  	 Miller & Martin PLLC
 1170
Peachtree Street, NE
 Suite 800

Atlanta, GA 30309
 Attn: Charles E. Elrod
III

		
	To Seller:	  	 Needle Development, Inc.
 10
South Prado
 Atlanta, GA 30309
 Attn:
Daniel T. Needle

 16. Miscellaneous 
 (a) Entire Agreement; Amendment. This Agreement constitutes the entire agreement between Seller and Purchaser, and no change in or supplement to this Agreement may be made except by an agreement in
writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought. 
 (b)
Binding Effect. The covenants and agreements contained in this Agreement shall be binding upon and inure to the benefit of Seller and Purchaser and their respective successors and assigns. 

  
 -7-

 (c) Construction. This Agreement shall be construed without reference to the titles
of the various paragraph headings herein contained, which are inserted for convenience of reference only. Both Seller and Purchaser have had the opportunity to be represented by legal counsel in negotiating this Agreement, thus this Agreement shall
be construed without inference of drafting by either Seller or Purchaser. 
 (d) Counterparts. This Agreement may be
executed in any number of counterparts, any one or all of which shall constitute the agreement of the parties. 
 (e) Time is
of the Essence. Time is of the essence of this Agreement. Any reference to a number of “days” herein shall be a reference to “calendar days” unless an express reference in said provision is made to “business days”.
For the purposes hereof, “business day” means any day other than a Saturday or Sunday, or other day on which commercial banks are authorized or required to close under the laws of the State of Georgia. If the date on which either Purchaser
or Seller is required to take action under this Agreement is not a business day (as defined herein), the action shall be taken on the next succeeding business day. 
 (f) Partial Invalidity; Waiver. 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. 
 (g) Governing Law.
This Agreement will be interpreted under and governed and enforced according to the laws of the State in which the Property is located. 
 [Signature Page To Follow] 

  
 -8-

									
		 		 		 	PURCHASER:
				
	Date signed:	 	 November 1st, 2006
	 		 	SOLOMON HOLDINGS IV DOGWOOD ACWORTH, LLC
					
		 		 		 	By:	 	 /s/ Alfred S. Holbrook

		 		 		 	Print Name:	 	Alfred S. Holbrook
		 		 		 	Its:	 	Manager
				
		 		 		 	SELLER:
				
	Date signed:	 	 November 1st, 2006
	 		 	NEEDLE DEVELOPMENT, INC.
					
		 		 		 	By:	 	 /s/ Daniel T. Needle

		 		 		 	Print Name:	 	Daniel T. Needle
		 		 		 	Its:	 	Chairman

  
 -9-

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