Document:

Security Agreement

 Exhibit 10.02 

SECURITY AGREEMENT 
 This
SECURITY AGREEMENT, dated as of December 22, 2015 (this “Agreement”), is entered into by and between BLU Autoworks LLC, a Delaware limited liability company (the “Grantor”), in favor of Deer Valley Corporation,
a Florida corporation (the “Secured Party”). 
 WHEREAS, on the date hereof, the Secured Party has made a loan to the
Grantor in an aggregate principal amount of up to $4,000,000 (the “Loan”), evidenced by that certain Secured Convertible Note of even date herewith (as amended, supplemented or otherwise modified from time to time, the
“Note”) made by the Grantor and payable to the order of the Secured Party. 
 WHEREAS, this Agreement is given by the
Grantor in favor of the Secured Party to secure the payment and performance of all of the Secured Obligations (as defined below); and 

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. Definitions. 

(a) Unless otherwise specified herein, all references to Sections and Schedules herein are to Sections and Schedules of this Agreement. 

(b) Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC.
However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9. 

(c) For purposes of this Agreement, the following terms shall have the following meanings: 

“Collateral” has the meaning set forth in Section 2. 

“Copyrights” means all of the following now owned or hereafter acquired by the Grantor: (i) all copyrights,
registrations and applications therefor, (ii) all renewals and extensions thereof, (iii) all income, royalties, damages and payments now and hereafter due or payable or both with respect thereto, including, without limitation, damages and
payments for past or future infringements or misappropriations thereof, (iv) all rights to sue for past, present and future infringements or misappropriations thereof, and (v) all other rights corresponding thereto throughout the world.

 “Event of Default” has the meaning set forth in the Note. 

 “First Priority” means, with respect to any lien and security interest
purported to be created in any Collateral pursuant to this Agreement, such lien and security interest is the most senior lien to which such Collateral is subject (subject only to liens permitted under the Note). 

“Patents” means all of the following now or hereafter owned by the Grantor: (i) all patents and patent applications,
(ii) all inventions and improvements described and claimed therein, (iii) all reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, (iv) all income, royalties, damages and payments now and
hereafter due and/or payable to the Grantor with respect thereto, including, without limitation, damages and payments for past or future infringements or misappropriations thereof, (v) all rights to sue for past, present and future
infringements or misappropriations thereof and (vi) all other rights corresponding thereto throughout the world. 

“Proceeds” means “proceeds” as such term is defined in section 9-102 of the UCC and, in any event, shall
include, without limitation, all dividends or other income from the Collateral, collections thereon or distributions with respect thereto. 

“Secured Obligations” has the meaning set forth in Section 3. 

“Trademarks” means all of the following, now owned or hereafter acquired by the Grantor: (i) all trademarks (including
service marks and trade names, whether registered or at common law), registrations and applications therefor, and the entire product lines and goodwill of the Grantor’s business connected therewith and symbolized thereby, (ii) all renewals
thereof, (iii) all income, royalties, damages and payments now and hereafter due or payable or both with respect thereto, including, without limitation, damages and payments for past or future infringements or misappropriations thereof,
(iv) all rights to sue for past, present and future infringements or misappropriations thereof and (v) all other rights corresponding thereto throughout the world. 

“Trade Secrets” means all of the following, now owned or hereafter acquired by the Grantor: (i) trade secrets,
(ii) income, royalties, damages and payments now and hereafter due and/or payable to the Grantor with respect to trade secrets, including, without limitation, damages and payments for past or future infringements or misappropriations thereof,
(iii) rights to sue for past, present and future infringements or misappropriations of trade secrets, and (iv) all other rights corresponding to trade secrets throughout the world. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of Delaware or, when the laws of any
other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state. 

  
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 2. Grant of Security Interest. Subject to the rights granted previously to BLU Investors LLC pursuant to a
security agreement dated February 27, 2015, which are in all respects superior to the rights of Secured Party hereunder, the Grantor hereby pledges and grants to the Secured Party, and hereby creates a continuing First Priority lien and
security interest in favor of the Secured Party in and to all of its right, title and interest in and to the following, wherever located, whether now existing or hereafter from time to time arising or acquired (collectively, the
“Collateral”): 
 (a) all fixtures and personal property of every kind and nature including all accounts (including
health-care-insurance receivables), goods (including inventory and equipment), documents (including, if applicable, electronic documents), instruments, promissory notes, chattel paper (whether tangible or electronic), letters of credit,
letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), securities and all other investment property, commercial tort claims described on Schedule 1 hereof as supplemented by any written notification
given by the Grantor to the Secured Party pursuant to Section 4(e), general intangibles (including all payment intangibles), Patents, Trademarks, Copyrights, Trade Secrets, money, deposit accounts, and any other contract rights or rights
to the payment of money; and 
 (b) all Proceeds and products of each of the foregoing, all books and records relating to the foregoing, all
supporting obligations related thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to the
Grantor from time to time with respect to any of the foregoing. 
 3. Secured Obligations. The Collateral secures the due and prompt payment and
performance of the following (collectively, the “Secured Obligations”): 
 (a) the obligations of the Grantor from time to
time arising under the Note, this Agreement or otherwise with respect to the due and prompt payment of the principal of and premium, if any, and interest on the Loan (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise; and 

(b) all other covenants, duties, debts, obligations and liabilities of any kind of the Grantor under or in respect of the Note, this Agreement
or any other document made, delivered or given in connection with any of the foregoing. 
 4. Perfection of Security Interest and Further Assurances.

 (a) The Grantor shall, from time to time, as may be required by the Secured Party with respect to all Collateral, promptly take all
actions as may be requested by the Secured Party to perfect the security interest of the Secured Party in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections
8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, section 201 of the federal Electronic Signatures in Global and National Commerce Act and, as the case may be, section 16 of the Uniform Electronic Transactions Act, as applicable, the Grantor shall
promptly take all actions as may be requested from time to time by the Secured Party so that control of such Collateral is obtained and at all times held by the Secured Party. All of the foregoing shall be at the sole cost and expense of the
Grantor. 

  
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 (b) The Grantor hereby irrevocably authorizes the Secured Party at any time and from time to time
to file in any relevant jurisdiction any financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating to the
Collateral, including any financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Grantor hereunder, without the signature of the
Grantor where permitted by law, including the filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect. The Grantor agrees to provide all information required
by the Secured Party pursuant to this Section promptly to the Secured Party upon request. 
 (c) The Grantor hereby further authorizes the
Secured Party to file with the United States Patent and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country) this Agreement, that certain
Intellectual Property Security Agreement entered into between the Grantor and the Secured Party as of the date hereof and any other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest
granted by the Grantor hereunder, without the signature of the Grantor where permitted by law. 
 (d) If the Grantor shall at any time hold
or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable documents or warehouse receipts relating to the Collateral, the Grantor shall promptly endorse, assign and deliver the same to the Secured Party,
accompanied by such instruments of transfer or assignment duly executed in blank as the Secured Party may from time to time specify. 
 (e)
If the Grantor shall at any time hold or acquire a commercial tort claim, the Grantor shall (i) promptly notify the Secured Party in a writing signed by the Grantor of the particulars thereof and grant to the Secured Party in such writing a
security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Secured Party and (ii) deliver to the Secured Party an updated Schedule 1.

 (f) The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and
deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary or desirable, or that the Secured Party may reasonably request, in order to perfect and protect any security
interest granted hereby or to enable the Secured Party to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral. 

5. Representations and Warranties. The Grantor represents and warrants as follows: 

(a) It is a limited liability company validly existing and in good standing under the laws of the State of Delaware, and has the requisite
power and authority to own its properties and assets and to transact the businesses in which it presently is engaged or proposes to be engaged, and has full power, authority and legal right to borrow the Loan and pledge the Collateral pursuant to
this Agreement. 

  
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 (b) Each of this Agreement and the Note has been duly authorized, executed and delivered by the
Grantor and constitutes a legal, valid and binding obligation of the Grantor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights
generally and subject to equitable principles (regardless of whether enforcement is sought in equity or at law). 
 (c) No authorization,
approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the borrowing of the Loan and the pledge by the Grantor of the Collateral pursuant to this Agreement or for the execution
and delivery of the Note and this Agreement by the Grantor or the performance by the Grantor of its obligations thereunder. 
 (d) The
execution and delivery of the Note and this Agreement by the Grantor and the performance by the Grantor of its obligations thereunder, will not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree
of any court, arbitrator or governmental authority, domestic or foreign, applicable to the Grantor or any of its property, or the organizational or governing documents of the Grantor or any agreement or instrument to which the Grantor is party or by
which it or its property is bound. 
 (e) Any Collateral consisting of securities have been duly authorized and validly issued, and are
fully paid and non-assessable and subject to no options to purchase or similar rights. The Grantor holds no commercial tort claims except as indicated on Schedule 1. None of the Collateral constitutes, or is the proceeds of, “farm
products” as defined in section 9-102(a)(34) of the UCC. None of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or like federal, state or local
statute or rule in respect of such Collateral. The Grantor has at all times operated its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state
and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances. 
 (f) At
the time the Collateral becomes subject to the lien and security interest created by this Agreement, the Grantor will be the sole, direct, legal and beneficial owner thereof, free and clear of any lien, security interest, encumbrance, claim, option
or right of others except for the security interest created by this Agreement. 
 (g) The pledge of the Collateral pursuant to this
Agreement creates a valid and perfected First Priority security interest in the Collateral, securing the payment and performance when due of the Secured Obligations. 

(h) The Grantor has taken all action required on its part for control (as defined in sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC,
section 201 of the federal Electronic Signatures in Global and National Commerce Act and, as the case may be, section 16 of the Uniform Electronic Transactions Act, as applicable) to have been obtained by the Secured Party over all Collateral with
respect to which such control may be obtained pursuant to the UCC. No person other than the Secured Party has control or possession of all or any part of the Collateral. 

  
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 6. Covenants. The Grantor covenants as follows: 

(a) The Grantor will not, without providing at least thirty (30) days prior written notice to the Secured Party, change its legal name,
identity, type of organization, jurisdiction of organization, corporate structure, or location of its chief executive office or its principal place of business or its organizational identification number. The Grantor will, prior to any change
described in the preceding sentence, take all actions reasonably requested by the Secured Party to maintain the perfection and priority of the Secured Party’s security interest in the Collateral. 

(b) The Collateral, to the extent not delivered to the Secured Party pursuant to Section 4, will be kept at the Grantor’s
principal place of business and the Grantor will not remove the Collateral from such locations without providing at least thirty (30) days prior written notice to the Secured Party. The Grantor will, prior to any change described in the
preceding sentence, take all actions reasonably required by the Secured Party to maintain the perfection and priority of the Secured Party’s security interest in the Collateral. 

(c) The Grantor shall, at its own cost and expense, defend title to the Collateral and the First Priority lien and security interest of the
Secured Party therein against the claim of any person claiming against or through the Grantor and shall maintain and preserve such perfected First Priority security interest for so long as this Agreement shall remain in effect. 

(d) The Grantor will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict, or
grant, create, permit or suffer to exist any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance or other restriction or limitation of any nature whatsoever on, any of the Collateral or any interest therein except
(i) as expressly provided for in the Note or herein, (ii) to Tua Autoworks Holdings S.àr.l., a company to be formed under the laws of Luxembourg or (iii) with the prior written consent of the Secured Party. 

(e) The Grantor will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance
thereon. The Grantor will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time, wherever located. 

(f) The Grantor will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in
connection with the use or operation of the Collateral or incurred in connection with this Agreement. 
 (g) The Grantor will continue to
operate its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage
or disposal of hazardous materials or substances. 
 7. Secured Party Appointed Attorney-in-Fact. The Grantor hereby appoints the Secured Party the
Grantor’s attorney-in-fact, with full authority in the place and stead of the Grantor and in the name of the Grantor or otherwise, from time to time during the continuance of an Event of Default, in the Secured Party’s discretion to take
any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this 

  
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Agreement (but the Secured Party shall not be obligated to and shall have no liability to the Grantor or any third party for failure to do so or take action). This appointment, being coupled with
an interest, shall be irrevocable. The Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. 
 8.
Secured Party May Perform. If the Grantor fails to perform any obligation contained in this Agreement, the Secured Party may itself perform, or cause performance of, such obligation, and the expenses of the Secured Party incurred in
connection therewith shall be payable by the Grantor; provided that the Secured Party shall not be required to perform or discharge any obligation of the Grantor. 

9. Reasonable Care. The Secured Party shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable
care. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party accords its own
property, it being understood that the Secured Party shall not have any responsibility for (a) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to
any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Secured Party has or is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against any parties
with respect to any Collateral. Nothing set forth in this Agreement, nor the exercise by the Secured Party of any of the rights and remedies hereunder, shall relieve the Grantor from the performance of any obligation on the Grantor’s part to be
performed or observed in respect of any of the Collateral. 
 10. Remedies Upon Default. If any Event of Default shall have occurred and be
continuing: 
 (a) The Secured Party, without any other notice to or demand upon the Grantor, may assert all rights and remedies of a
secured party under the UCC or other applicable law, including, without limitation, the right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain, liquidate or dispose of all or any portion of
the Collateral. If notice prior to disposition of the Collateral or any portion thereof is necessary under applicable law, written notice mailed to the Grantor at its notice address as provided in Section 13 hereof ten (10) days
prior to the date of such disposition shall constitute reasonable notice, but notice given in any other reasonable manner shall be sufficient. So long as the sale of the Collateral is made in a commercially reasonable manner, the Secured Party may
sell such Collateral on such terms and to such purchaser(s) as the Secured Party in its absolute discretion may choose, without assuming any credit risk and without any obligation to advertise or give notice of any kind other than that necessary
under applicable law. Without precluding any other methods of sale, the sale of the Collateral or any portion thereof shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of
creditors disposing of similar property. To the extent permitted by applicable law, the Grantor waives all claims, damages and demands it may acquire against the Secured Party arising out of the exercise by it of any rights hereunder. The Grantor
hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security
for the Secured Obligations or otherwise. At any such sale, 

  
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unless prohibited by applicable law, the Secured Party or any custodian may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption.
Neither the Secured Party nor any custodian shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take any action whatsoever with regard thereto. The
Secured Party shall not be obligated to clean-up or otherwise prepare the Collateral for sale. 
 (b) Any cash held by the Secured Party as
Collateral and all cash Proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in whole or in part by the Secured Party to the payment of
expenses incurred by the Secured Party in connection with the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Party hereunder, including reasonable
attorneys’ fees, and the balance of such proceeds shall be applied or set off against all or any part of the Secured Obligations in such order as the Secured Party shall elect. Any surplus of such cash or cash Proceeds held by the Secured Party
and remaining after payment in full of all the Secured Obligations shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus. The Grantor shall remain liable for any deficiency if such cash and the cash
Proceeds of any sale or other realization of the Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by the Secured Party to collect such deficiency. 

(c) If the Secured Party shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section, the Grantor
agrees that, upon request of the Secured Party, the Grantor will, at its own expense, do or cause to be done all such acts and things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance
with applicable law. 
 11. No Waiver and Cumulative Remedies. The Secured Party shall not by any act (except by a written instrument pursuant to
Section 12), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. All rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies provided by law. 
 12. Amendments, Waivers and Consents. None of the terms or provisions of this Agreement may
be amended, modified, supplemented or waived, and no consent to any departure by the Grantor therefrom shall be effective unless the same shall be in writing and signed by the Secured Party and the Grantor, and then such amendment, modification,
supplement, waiver or consent shall be effective only in the specific instance and for the specific purpose for which made or given. 
 13.
Severability. The provisions of this Agreement are severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such
clause or provision, or part thereof, in such jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision of this Agreement in any jurisdiction. 

  
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 14. Addresses for Notices. All notices and other communications provided for in this Agreement shall be in
writing and shall be given in the manner and become effective as set forth in the Note, and addressed to the respective parties at their addresses as specified on the signature pages hereof or as to either party at such other address as shall be
designated by such party in a written notice to each other party. 
 15. Continuing Security Interest; Further Actions. This Agreement shall create a
continuing First Priority lien and security interest in the Collateral and shall (a) subject to Section 16, remain in full force and effect until payment and performance in full of the Secured Obligations, (b) be binding upon
the Grantor, its successors and assigns, and (c) inure to the benefit of the Secured Party and its successors, transferees and assigns; provided that the Grantor may not assign or otherwise transfer any of its rights or obligations under
this Agreement without the prior written consent of the Secured Party. Without limiting the generality of the foregoing clause (c), any assignee of the Secured Party’s interest in any agreement or document which includes all or any of the
Secured Obligations shall, upon assignment in accordance with Section 13 of the Note, become vested with all the benefits granted to the Secured Party herein with respect to such Secured Obligations. 

16. Termination; Release. On the earlier of (i) the date on which all Secured Obligations have been paid and performed in full or (ii) the
date of the execution of a Development Agreement with the Government of Italy related to the establishment and financing of automotive manufacturing, assembly and retail operations in Italy, this Agreement will be terminated without any further
action required by the parties and the Secured Party will, at the request and sole expense of the Grantor, (a) duly assign, transfer and deliver to or at the direction of the Grantor (without recourse and without any representation or warranty)
such of the Collateral as may then remain in the possession of the Secured Party, together with any monies at the time held by the Secured Party hereunder, and (b) execute and deliver to the Grantor a proper instrument or instruments
acknowledging the satisfaction and termination of this Agreement. 
 17. Governing Law. This Agreement and any claim, controversy, dispute or cause
of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of Delaware. 

18. Counterparts; Entire Agreement. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by
different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in
electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and the Note constitute the entire contract among the parties with respect to the
subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. 
 [SIGNATURE PAGE
FOLLOWS] 

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

 

			
	BLU Autoworks LLC, as Grantor
		
	By:	 	 Anthony J. Bonidy

	Name:	 	Anthony J. Bonidy
	Title:	 	Manager
	
	Address for Notices:
	
	 BLU Autoworks LLC
 c/o LCV Capital
Management, LLC
 Centre City Tower, Suite 705
 650 Smithfield
Street
 Pittsburgh, PA 15222
 Attn: Lodovico C. de
Visconti

	
	Deer Valley Corporation, as Secured Party

		
	By:	 	 J. Steven Lawler

	Name:	 	J. Steven Lawler
	Title:	 	Vice President - Finance
	
	Address for Notices:
	
	 Deer Valley Corporation
 205
Carriage Street
 Guin, AL 35563
 Attn: J. Steven
Lawler

 [Signature Page to Security Agreement] 

 SCHEDULE 1 

COMMERCIAL TORT CLAIMS 

None.Bargain Sale Agreement and Initial Escrow Instructions

 Exhibit 10.03 

BARGAIN SALE AGREEMENT AND INITIAL ESCROW INSTRUCTIONS 

This Bargain Sale Agreement and Initial Escrow Instructions (“Agreement”), dated December 1, 2015, for reference purposes only,
is entered into by and between THE INDUSTRIAL DEVELOPMENT BOARD OF THE TOWN OF SULLIGENT, INC., (“Buyer”), and Deer Valley Homebuilders, Inc., a Alabama Domestic Corporation, (“Seller”). 

Recitals 
 A.
Seller is the owner of approximately 13 acres of improved real property located in the City of Sulligent (“City”), County of Lamar (“County”), State of Alabama (“State”), as more particularly described on Exhibit
A attached to this Agreement (the “Real Property”). 
 B. On the terms, conditions and provisions set forth in this Agreement,
Buyer desires to purchase, and Seller desires to sell to Buyer, the Property for public purposes. 
 C. Buyer is a political subdivision of
the State of Alabama, and is included in the list of organizations described in Section 170(c)(1) of the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder (the “Code”). 

D. Seller believes that the purchase price for the Property which is specified in this Agreement is substantially below the fair market value
of the Property. Seller intends that the difference between the purchase price and the fair market value shall be a charitable contribution to Buyer. 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, the parties agree as follows: 

Agreement 
 1.
Purchase and Sale. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property on the terms and subject to the conditions set forth in this Agreement. The “Effective Date” of this Agreement shall be
the first date upon which both Seller and Buyer have executed this Agreement. 
 2. Purchase Price. The purchase price
(“Purchase Price”) for the Property shall be One Million One Hundred Fifty Thousand Dollars ($1,150,000.00). 
 (a) Purchase
Price. The Buyer shall pay to the Seller through a Bargain Sale purchase, based on a combination of cash and a charitable contribution. A Bargain Sale occurs when a seller sells a property for the less than current appraised value (based on an
IRS 561 appraisal to be performed by an MAI appraiser “Appraised Value”) to an IRS 561 approved organization (i.e. a municipality, not for profit entity, etc.) and is then able to use the difference between appraised value and cash
received as a tax deduction through a charitable contribution. The purchase price shall be the Appraised Value. The amount of monies owed by the The Industrial Development Board of the City of Sulligent, Inc. shall not exceed $350,000.00. 

 (b) Cash Amount. Three Hundred Fifty Thousand Dollars ($350,000.00) (maximum amount paid
by The Industrial Development Board of the City of Sulligent). The cash amount will remain $350,000.00 regardless if the charitable deduction increases or decreases. 

(c) Charitable Contribution Amount (Tax Deduction). To be calculated by reducing the Appraised Value by the Cash Amount. Based upon the
appraised value of $1,150,000.00, the charitable contribution would be $800,000.00. The Industrial Development Board of the Town of Sulligent provides no assurance as to the charitable deduction since that is a matter between the Internal Revenue
Service and Deer Valley Homebuilders, Inc. 
 (d) Earnest Money Deposit. As evidence of good faith, Buyer will deposit in an escrow
account to be maintained by a mutually acceptable attorney, title insurance company, as escrow agent, the sum of $10,000.00 (the “Earnest Money”) which will be credited toward the purchase price. 

3. Payment of Purchase Price. At least one (1) business day prior to Close of Escrow (as defined in Section 4(b)
below), Buyer shall deposit with Tim R. Wadsworth, Attorney at Law, Post Office Box 987, 55051 Highway 17, Sulligent, Alabama 35586, (“Escrow Holder”) the Purchase Price in immediately available funds, which shall be paid to Seller at
Close of Escrow. 
 4. Escrow. 

(a) Opening of Escrow. Within one (1) business day after the Effective Date, Seller shall open escrow (“Escrow”) with
Escrow Holder. Buyer and Seller agree to execute and deliver to Escrow Holder, in a timely manner, all escrow instructions necessary to consummate the transaction contemplated by this Agreement. If there is any inconsistency between such
supplemental instructions and this Agreement, this Agreement shall control. 
 (b) Close of Escrow. For the purpose of this
Agreement, the “Close of Escrow” shall be defined as the date that the Warranty Deed (as defined in Section 5, below) affixed thereto, is recorded in the Official Records of Lamar County. The Close of Escrow shall occur on a date
mutually acceptable to Seller and Buyer, but in no event later than December 31, 2015, unless extended by the mutual written consent of the parties hereto. 

5. Conditions of Title. The Property shall be conveyed to Buyer by Seller by a Warranty Deed, subject only to (a) a lien to
secure payment of real estate taxes and assessments (other than the assessment bonds provided for in Section 11(a) below), not delinquent; (b) such other title matters affecting the Property created by or with the written consent of Buyer;
( c) all applicable laws, ordinances, rules and governmental regulations (including, but not limited to, those relative to building, zoning and land use) affecting the development, use, occupancy or enjoyment of the Property; (d) all matters
which would be apparent from an inspection, or disclosed by the Survey; and (e) exceptions which are approved and/or accepted by Buyer in accordance with Section 7(a)(I) of this Agreement, (collectively approved Conditions of Title). 

 6. Buyer’s Title Certificate. Title shall be evidenced by Certificate of Title
equal to the Cash Purchase Price, showing title to the Property vested in Buyer, subject only to the Approved Conditions of Certificate of Title (“Title Certificate”). Buyer shall pay the cost of the Certificate of Title. 

7. Conditions to Close of Escrow. 

(a) Conditions to Buyer’s Obligations: The Buyer’s obligations to close and consummate the transaction contemplated by this
Agreement is subject to the satisfaction of the following conditions: 
 (i) Title. Pursuant to the terms and conditions of this
subsection, Buyer shall have the right to approve any and all matters of and exceptions to title of the Real Property. Buyer shall have ten (10) calendar days following receipt of the Title Documents to give Seller (“Buyer’s Title
Notice”) of Buyer’s approval or disapproval of the Title Documents. Notwithstanding the foregoing, Seller agrees to remove on the Close of Escrow any mortgages or liens whereby Seller is the borrower which are currently recorded against
the Property. 
 (ii) Inspection. For the period of time commencing on the Effective Date and ending on December 15, 2015,
(“Contingency Period”), Buyer shall have the right to conduct any and all non-destructive inspections, investigations, tests and studies (including, without limitation, investigations with regard to zoning, building codes and other
governmental regulations, architectural inspections, engineering tests, economic feasibility studies and soils, seismic and geologic reports and environmental testing) with respect to the Property as Buyer may elect to make or maintain. The cost of
any such inspections, tests and/or studies shall be borne by Buyer. 
 Between the Effective Date and the Close of Escrow, Buyer and
Buyer’s employees, agents, contractors, subcontractors and consultants (collectively, “Buyer’s Representatives”) shall have the right to enter upon the Property, at reasonable times during ordinary business hours upon prior
written notice to Seller to perform such inspections, investigations, tests and studies. Following any such tests or inspections, Buyer agrees to promptly return any portions of the Property damaged or altered by Buyer during such tests or
inspections to substantially the same condition which existed prior to such test or inspection. 
 Prior to the expiration of the
Contingency Period, Buyer shall deliver to Seller written notice (“Contingency Period Notice”) of its approval or disapproval of the Property. 

If this Agreement is terminated pursuant to this subsection, Buyer shall deliver to Seller (y) the Documents and Materials delivered to
Buyer by Seller, and (z) at no cost and without warranty as to correctness, copies of all reports, studies, maps and engineering studies that were generated by third parties for Buyer with respect to the Property, including, but not limited to,
all environmental reports, surveys, marketing reports, geotechnical reports, lot studies and improvement plans; 
 (iii) Title
Certificate. As of the Close of Escrow, Title Agent shall have committed to issue the Certificate of Title to Buyer. 

 (iv) Seller’s Representations. All representations and warranties made by Seller to
Buyer in this Agreement shall be true and correct on the date hereof and shall be true and correct in all material respects as of the Close of Escrow. 

(v) Seller’s Obligations. As of the Close of Escrow, Seller shall have performed all of the obligations required to be performed
by Seller under this Agreement. 
 (vi) Approval by Buyer’s Board of Directors. Buyer’s Industrial Development Board of
the City of Sulligent shall have ratified and approved Buyer’s execution, delivery and performance of this Agreement (the “Industrial Board”). Buyer shall notify Seller and Escrow Holder promptly upon receipt of the Industrial Board
Approval. 
 (b) Conditions to Seller’s Obligations. The Close of Escrow and Seller’s obligation to consummate the
transaction contemplated in this Agreement are subject to the satisfaction of the following conditions for Seller’s benefit on or prior to the dates designated below for the satisfaction of such conditions, or the Close of Escrow in absence of
a specified date: 
 (i) Buyer’s Obligations. Buyer shall have timely performed all of the obligations required to be performed
by Buyer under this Agreement. 
 (ii) Buyer’s Representations. All representations and warranties made by Buyer to Seller in
this Agreement shall be true and correct on the date hereof and shall be true and correct in all material respects as of the Close of Escrow. 

(iii) Purchase Price. Buyer shall have timely delivered to Escrow Holder the Purchase Price and other sums owing under this Agreement
in good funds. 
 8. Deposits By Seller. At least one (1) business day prior to the Close of Escrow, Seller shall deposit
with Escrow Holder the following documents: 
 (a) Warranty Deed. The Warranty Deed, duly executed and acknowledged in recordable
form by Seller. 
 (b) Letter. Letter from Seller when to make funding available to and who to give funds to. 

9. Deposits By Buyer. At least one (1) business day prior to Close of Escrow, Buyer shall deposit or cause to be deposited
with Escrow Holder the following: 
 (a) Purchase Price. The Purchase Price and prorations provided for herein, in cash or
immediately available funds. 
 (b) Warranty Deed. A copy of the form of Grant Deed signed read and approved. 

 10. Costs and Expenses. Any documentary transfer taxes charged by the County (if
any) shall be paid by Seller. Except as otherwise specified in this Agreement, Buyer shall pay any applicable City transfer taxes, escrow fees and recording charges. Buyer and Seller shall each pay all legal and professional fees and fees of other
consultants incurred by Buyer and Seller, respectively. All closing costs incurred through the Escrow relating to the Property shall be split  1⁄2 each between
Buyer and Seller. 
 11. Prorations. 

(a) Taxes/Assessments. All non-delinquent real estate taxes and non-delinquent assessments on the Property shall be prorated as of
12:01 a.m. on the day of the Close of Escrow based on the actual current tax bill. All delinquent taxes and all delinquent assessments, interest, and penalties, if any, on the Property shall be paid at the Close of Escrow from funds accruing to
Seller. 
 12. Corrections. If any errors or omissions are made regarding adjustments and prorations as set forth herein, the
parties shall make the appropriate corrections promptly upon discovery thereof. If any estimates are made at the Close of Escrow regarding adjustments or prorations, the party shall make the appropriate correction promptly when accurate information
becomes available. Any corrected adjustment or proration shall be paid in cash to the party entitled thereto. 
 13. Condition and
Inspection of Property. Notwithstanding any other provision of this Agreement to the contrary, Seller makes no representation or warranty (except as expressly set forth in Section 15 below) whatsoever regarding the Property, the
physical condition of the Property, its past use, its compliance with laws (including, without limitation, laws governing environmental matters, zoning, and land use), or its suitability for Buyer’s intended use. Seller has not conducted any
investigation regarding the condition of the Property, and the Property is sold AS-IS, WHERE-IS, WITH ALL FAULTS, AND THERE IS NO WARRANTY, EXPRESS OR IMPLIED, REGARDING THE CONDITION OF THE PROPERTY. Buyer hereby represents and warrants that Buyer
is relying solely upon, and as of the expiration of the Contingency Period will have conducted its own independent inspection, investigation, and analysis of the Property as it deems necessary or appropriate in so acquiring the Property from Seller,
including, without limitation, any and all matters concerning the condition, use, sale, development or suitability for development of the Property. 

14. Property Condition Waiver. Following the Close of Escrow, Buyer waives its right to recover from Seller, and the trustees,
members, managers, directors, officers, general partners, limited partners, employees and agents of Seller, (collectively, “Seller’s Representatives”), and hereby releases Seller and Seller’s Representatives from, any and all
damages, losses, liabilities, costs or expenses whatsoever (including attorney’s fees and costs) and claims therefor, whether direct or indirect, known or unknown, foreseen or unforseen, which may arise on account of or in any way arising out
of or connected with (I) the physical condition of the Property, and (ii) the environmental condition of the Property. The foregoing waiver and release shall exclude only those losses, liabilities, damages, costs or expenses, and claims
therefor, arising from or attributable to (x) a material matter actually known to Seller (excluding constructive notice) and (1) not disclosed to Buyer and (2) not discovered by Buyer prior to the Close of Escrow, and (y) any
breach by Seller of its express representations or warranties under this Agreement. 

 15. Seller’s Representations and Warranties. In consideration of Buyer
entering into this Agreement, Seller makes the representations and warranties set forth in this Section 15. 
 (a) Seller’s
Authority. Seller is the sole owner of fee title to the Property and has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transactions contemplated in the execution,
delivery and performance of this Agreement. Furthermore, the execution and delivery of this Agreement has been duly authorized and no other action by Seller is required in order to make it a valid and binding contractual obligation of Seller. 

(b) No Prior Transfers. Seller has not previously sold, transferred or conveyed the Property, or granted to any other person or entity
any right or interest in all or any part of the Property and Seller has not entered into any executory contracts for the sale of all or any part of the Property (other than this Agreement), nor do there exist any rights of first refusal or options
to purchase the Property, other than this Agreement and except as may be set forth in the Title Documents or the Leases. 
 (c)
Leases. To the Seller’s present actual knowledge, there are no leases or other agreements (whether oral or written) affecting or relating to the rights of any party with respect to the possession of the Property or any portion thereof
which will be in effect after Close of Escrow. 
 16. Buyer’s Representations and Warranties. In consideration of Seller
entering into this Agreement as an inducement to Seller to sell the Property to Buyer, Buyer makes the following representations and warranties, each of which is material and is being relied upon by Seller. 

(a) Buyer’s Authority. Buyer has the legal right, power and authority to enter into this Agreement and to consummate the
transactions contemplated hereby, and the execution, delivery and performance of this Agreement as provided herein and no other action by Buyer is requisite to the valid and binding execution, deliver and performance of this Agreement. 

(b) Enforceability. This Agreement and all documents required hereby to be executed by Buyer are and shall be valid, legally binding
obligations of and enforceable against Buyer in accordance with their terms. 
 (c) No Side Agreements or Representations. Buyer
represents, warrants and covenants to Seller that Buyer has entered into this Agreement based upon its rights and intentions to independently inspect the Property. Except as specifically provided in Section 15 of this Agreement, Seller makes no
representation or warranty regarding the condition of the Property, its past use, or its suitability for Buyer’s intended use. Buyer will be relying solely upon its own independent inspection, investigation, and analysis of the Property as it
deems necessary or appropriate in so acquiring the Property from Seller, including, without limitation, any and all matters concerning the condition, use, sale, development or suitability of the Property. 

 17. Damage or Condemnation Prior to Closing. Seller shall promptly notify Buyer of
any casualty to the Property or any condemnation proceeding considered or commenced prior to the Close of Escrow. If any such damage or proceeding relates to or may result in the loss of any “material portion” (as defined herein) of the
Property, Seller or Buyer may, each at its option, elect either to (i) terminate this Agreement, in which event, except as otherwise provided herein, neither party shall have any further rights or obligations hereunder, or (ii) continue
the Agreement in effect, in which event upon the Close of Escrow, Buyer shall be entitled to any compensation, award, or other payments or relief resulting from such casualty or condemnation proceedings. The term “material portion” shall
mean damages greater than One Hundred Thousand Dollars ($100,000.00). 
 18. Notices. All notices, demands, consents, requests
or other communications required to or permitted to be given pursuant to this Agreement shall be in writing, shall be given only in accordance with the provisions of this Section, shall be addressed to the parties in the manner set forth below, and
shall be conclusively deemed to have been properly delivered: (a) upon receipt when hand delivered during normal business hours (provided that, notices which are hand delivered shall not be effective unless the sending party obtains a signature
of a person at such address that the notice has been received); (b) upon receipt when sent by facsimile to the number set forth below (provided that, notices given by facsimile shall not be effective unless the receiving party delivers the
notice also by one other method permitted under this Section); (c) upon the day of delivery if the notice has been deposited in an authorized receptacle of the United States Postal Service as first-class, registered or certified mail, postage
prepaid, with a return receipt requested (provided that, the sender has in its possession the return receipt to prove actual delivery); or (d) one (1) business day after the notice has been deposited with either Golden State Overnight;
FedEx or United Parcel Service to be delivered by overnight delivery (provided that, the sending party receives a confirmation of actual delivery from the courier). The addresses of the parties to receive notices are as follows: 

 

			
	TO SELLER:	 	TO BUYER:
	Deer Valley Homebuilders, Inc.	 	Danny J. Otts, Chairman
	Post Office Box 310	 	Industrial Development Board of the Town of Sulligent, Inc.
	Guin, Alabama 35563	 	Post Office Box 365
		 	Sulligent, Alabama 35586
		
	TO ESCROW HOLDER:	 	
	Tim R. Wadsworth	 	
	Attorney at Law	 	
	Post Office Box 987	 	
	Sulligent, Alabama 35586	 	

 Each party shall make an ordinary, good faith effort to ensure that it will accept or receive
notices that are given in accordance with this Section 18, and that any person to be given notice actually receives such notice. 
 19.
Brokers. Seller represents it has not engaged a brokerage firm and owes no commission or finder’s fee in connection with this transaction (“Seller’s Broker”). Buyer represents it has not engaged any person entitled
to any brokerage commission or finder’s fee in connection with this transaction. 
 20. Assignment. Buyer shall not
assign its right, title or interest in this Agreement to any other party without the prior written consent of Seller. 
 21.
Cooperation Covenants. 
 (a) Acknowledgment of Donation. Buyer acknowledges that Seller intends to seek recognition by
the Internal Revenue Service (“IRS”) and the State of a non-cash charitable contribution with respect to the sale of the Property in accordance with this Agreement, as more particularly described in Recital E above. Buyer covenants to
reasonably cooperate with Seller with respect to such donation by completing the Noncash Charitable Donations Form (IRS Form 8283) and any corollary State form, and to complete related subsequent IRS and State forms, if any, as requested by Seller,
the IRS, or the State with respect to such non-cash charitable contribution. This covenant shall survive the Close of Escrow. The Donation will be based upon an appraisal from a licensed certified appraiser from the State of Alabama. All costs of
the appraiser shall be paid by Sellers. 
 22. Miscellaneous. 

(a) Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and
each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 
 (b) Waivers.
No waiver of any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any
obligation or act shall be deemed an extension of the time for performance of any other obligation or act except those of the waiving party, which shall be extended by a period of time equal to the period of the delay. 

(c) Survival. All of Buyer’s and Seller’s warranties, indemnities, representatives, covenants, obligations, undertakings and
agreements contained in this Agreement shall survive following the Close of Escrow. 

 (d) Successors and Assigns. Subject to Section 20, this Agreement shall be binding
upon and shall inure to the benefit of the grantees, transferees, successors and permitted assigns of the parties hereto. 
 (e) Entire
Agreement. This Agreement (including all Recitals and Exhibits attached hereto), is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings
with respect thereto. This Agreement may not be modified, changed, supplemented, suspended, canceled or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly
authorized in writing or as otherwise expressly permitted herein. 
 (f) Time of Essence. Seller and Buyer acknowledge and agree that
time is strictly of the essence with respect to each and every term, condition, obligation and provision hereof and that failure to timely perform any of the terms, conditions, obligations or provisions hereof by either party shall constitute a
material breach of and non-curable (but waivable) default under this Agreement by the party so failing to perform. 
 (g) Relationship of
Parties. Nothing contained in this Agreement shall be deemed or construed by the parties to create the relationship of principal and agent, a partnership, joint venture or any other association between Buyer and Seller. 

(h) Construction/Exhibits. Headings at the beginning of each paragraph and subparagraph are solely for the convenience of the parties
and are not a part of the Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been
prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to paragraphs, Sections, subparagraphs and subsections are to this Agreement. All exhibits referred to in this Agreement
are attached and incorporated herein by this reference. 
 (i) Governing Law. The parties hereto acknowledge that this Agreement has
been negotiated and entered into in the State of Alabama. The parties hereto expressly agree that this Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of Alabama. 

(j) Possession of Property. Subject to the Approved Conditions of Title, Buyer shall be entitled to the possession of the Property
immediately following the Close of Escrow. 
 (k) Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original (including copies sent to a party by facsimile transmission or in portable document format (pdf)), but all of which, together, shall constitute one and the same instrument. 

(l) Recitals. Each of the parties acknowledge and agree that the Recitals set forth above in this Agreement are true and correct. 

 23. Appraisal. Seller will pay for a qualified appraisal (“Appraisal”)
from the Earnest Money. The Appraisal shall be done by a qualified appraiser (“Appraiser”) that complies with the requirements of Section 170 of the Internal Revenue Code, the regulations, rulings and other pronouncements of the
Internal Revenue Service, including current IRS Publication 561. A copy of the appraisal will be provided to Seller and Buyer and dated a date no later than 30 days prior to the Closing except as consented to by the Buyer. 

24. IRS Form 8283. Upon the receipt of a Warranty Deed for the Property at Closing, Buyer shall sign and deliver Internal
Revenue Service From 8283 to Seller for the appraised value. The form will represent that Buyer is a duly established non-profit corporation and qualified as a tax exempt public charity under Internal Revenue Service Code Section 501(c)(3)
qualified to receive federal tax deductible contributions pursuant to the Internal Revenue Code 170. However, all parties understand that the amount of a charitable deduction under Section 170 of the Internal Revenue Code is governed by the
Internal Revenue Code Regulations. Both parties understand that the maximum amount of monies due by the Buyer to obtain free and clear title of the Property being sold is $350,000.00. Any dispute between the Seller and the Internal Revenue Service
as to the amount of charitable deduction is governed by the Internal Revenue Code and Regulations and the interpretation of the laws to the facts of this transaction by any Federal and State. 

25. Inspections and Due Diligence. Buyer shall have the right, at its sole cost and expense during the contingency period, to
perform any studies, inspections, or other due diligence it deems necessary or desirable on the Property, upon consent of Seller (“Inspection Period”), including but not limited to, acquiring necessary permits, Phase I or Phase II
environmental studies, structural, heating and cooling, survey, boundary lines, zoning, intended use and so forth. If inspections are not satisfactory to Buyer, based on Buyer’s sole discretion, Buyer may cancel this proposed transaction by
providing written notice to Seller. Buyer will indemnify Seller from any claims for injury to person or property occurring during any testing or studies. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. 

 

									
	BUYER:	 		 		 	SELLER:
				
	THE INDUSTRIAL DEVELOPMENT BOARD OF THE TOWN OF SULLIGENT, INC.	 		 		 	 Deer Valley Homebuilders, Inc.
 An Alabama
Domestic Corporation

					
	By:	 	 /s/ Danny J. Otts
	 		 	By:	 	 /s/ John S. Lawler

		 	Danny J. Otts, Chairman	 		 		 	John S. Lawler, Officer
					
	Date:	 	 12/22/15
	 		 	Date:	 	 12/22/15

 EXHIBIT A 

Legal Description of the Real Property 

Said parcel being in and a part of the SE 1/4 of SW 1/4, Section 22, Township 13 South, Range 15 West, Lamar County, Alabama, and being
more particularly described as follows: 
 Commencing at the Southwest corner of the SW 1/4 of SW 1/4, Section 22, Township 13 South,
Range 15 West, Lamar County, Alabama; thence run North 88 degrees 18’ 31” East along the South line of said SW 1/4 of SW 1/4 for a distance of 1318.61 feet to the Southwest corner of the SE 1/4 of SW 1/4 of said Section 22; thence run
North 00 degrees 54’ 33” West along the West line of said SE 1/4 of SW 1/4 for a distance of 369.95 feet to the point of beginning. FROM SAID POINT OF BEGINNING continue North 00 degrees 54’ 33” West along the West line of said
SE 1/4 of SW 1/4 for a distance of 871.00 feet to a point on the southerly right-of-way of Alabama Highway 278 (120’ R.O.W.); thence run easterly along said southerly right-of-way for a distance of 612.12 feet; thence run S 00 degrees 28’
56” E for a distance of 994.72 feet; thence run North 86 degrees 50’ 37” West for a distance of 600.00 feet to the point of beginning. Said parcel containing 13 acres, more or less. 

SOURCE OF TITLE: BOOK 452, PAGE 253 

This conveyance is made subject to the following: 
  

	 	(i)	Non delinquent real property taxes and all assessments and unpaid installments thereof which are not delinquent. 

  

	 	(ii)	Title to all minerals within and underlying the premises, together with all mining rights and other rights, privileges and immunities relating thereto. 

 

	 	(iii)	Power line, road and all utility easements 

  

	 	(iv)	Title exceptions of record. 

  

	 	(v)	Items which a current and correct Survey or physical inspection would show. 

  

	 	(vi)	Matters learned by or described to Grantee or its agents prior to the expiration of the Closing. 

  

	 	(vii)	Environmental matters. 

  

	 	(viii)	Matters caused by, through, or under Grantee. 

  

	 	(ix)	Any other Approval Conditions of Certificate of Title. 

  

									
	BUYER:	 		 		 	SELLER:
			
	THE INDUSTRIAL DEVELOPMENT BOARD OF THE TOWN OF SULLIGENT, INC.	 		 	Deer Valley Homebuilders, Inc.
	 		 		 	An Alabama Domestic Corporation
					
	By:	 	 /s/ Danny J. Otts
	 		 	By:	 	 /s/ John S. Lawler

		 	Danny J. Otts, Chairman	 		 		 	John S. Lawler, Officer
					
	Date:	 	 12/22/15
	 		 	Date:	 	 12/22/15

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