Document:

Collateral Assignment of Partnership Interests

    
      
        

      

    

    Exhibit
      10.17

     

    

    COLLATERAL
      ASSIGNMENT

    OF

    PARTNERSHIP
      INTERESTS

     

     

    This
      COLLATERAL
      ASSIGNMENT OF PARTNERSHIP INTERESTS
      (this
“Assignment”),
      dated
      as of March 11, 2005, from HARTMAN
      REIT OPERATING PARTNERSHIP III LP LTD,
      a Texas
      limited partnership (the “Assignor”)
      in
      favor of KeyBank National Association (the “Assignee”),
      as
      Administrative Agent under the Credit Agreement (as defined below).

     

    WHEREAS,
      the
      Assignor is the legal and beneficial owner of one hundred percent (100%) of
      the
      limited partnership interests of Hartman REIT Operating Partnership III LP,
      a
      Texas limited partnership (the “Partnership”);

     

    WHEREAS,
      pursuant to the terms of that certain Revolving Credit Agreement dated as of
      March 11, 2005 among Hartman REIT Operating Partnership, L.P., a Delaware
      limited partnership, the Partnership, each other borrower from time to time
      party thereto, the Assignee as Administrative Agent and Lender, the other
      Lenders (as defined therein), and KeyBanc Capital Markets, as Lead Arranger
      and
      Book Manager (as amended, modified, or amended and restated, and including
      any
      replacements thereof, the “Credit
      Agreement”),
      the
      Lenders have, upon the terms and subject to the conditions contained therein,
      agreed to make loans and otherwise to extend credit to the Assignor;
      and

     

    WHEREAS,
      it is a
      condition precedent to the Lenders’ making any loans or otherwise extending
      credit to the Assignor under the Credit Agreement that the Assignor execute
      and
      deliver to the Assignee a collateral assignment of partnership interests in
      substantially the form hereof;

     

    NOW,
      THEREFORE,
      in
      consideration of the premises contained herein and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto agree as follows:

     

    1.  DEFINITIONS.  

     

    All
      terms
      not specifically defined herein, which terms are defined in the Uniform
      Commercial Code as in effect in the state of New York shall have the meanings
      assigned to them therein. The following terms shall have the following meanings
      herein:

     

    Assignor.
      See
      preamble.

     

    Assigned
      Interests.
      See
§2.1 hereof.

     

    Assignee.
      See
      preamble.

     

     

    
      
        
        

      

      
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    Business
      Day.
      Any day
      on which banks are open for business in the state of New York. 

     

    Cash
      Collateral.
      See
§4.2. 

     

    Cash
      Collateral Account.
      See
§4.2. 

     

    Collateral.
      The
      Assigned Interests, the Cash Collateral, the Cash Collateral Account, and all
      other property now or hereafter pledged or assigned to the Assignee by the
      Assignor hereunder, and all income therefrom, increases therein and proceeds
      thereof.

     

    Credit
      Agreement.
      See
      preamble. 

     

    Event
      of Default.
      See §5.

     

    Loan
      Documents.
      As
      defined in the Credit Agreement. 

     

    Obligations.
      All
      obligations and liabilities of any kind, now existing or hereafter arising,
      of
      the Assignor and Borrowers to the Lenders or Assignee, certain or contingent,
      direct or indirect, due or to become due, including, without limitation, those
      arising under or in connection with the Credit Agreement, the other Loan
      Documents or under any other document, instrument or agreement executed in
      connection therewith.

     

    Partnership.
      See
      preamble. 

     

    Partnership
      Agreement.
      The
      Agreement of Limited Partnership of the Partnership, dated as of March 4, 2005.
      

     

    Time
      Deposits.
      See
§4.2. 

     

    2.  ASSIGNMENT.  

     

    2.1.  Grant
      of Security Interest.  The
      Assignor hereby pledges, grants a security interest in, mortgages, and
      collaterally assigns and transfers to the Assignee, as security for the payment
      and performance in full when due of all of the Obligations, all the right,
      title
      and interest of the Assignor in and to the Assignor’s partnership interests in
      the Partnership, wherever located and whether now owned or hereafter acquired
      or
      arising, including, without limitation, (a) all payments or distributions,
      whether in cash, property or otherwise, at any time owing or payable to the
      Assignor on account of its interest as a partner in the Partnership or in the
      nature of a management, investment banking or other fee paid or payable by
      the
      Partnership to the Assignor, (b) all of the Assignor’s rights and interests
      under the Partnership Agreement, including all voting and management rights
      and
      all rights to grant or withhold consents or approvals, (c) all rights of access
      and inspection to and use of all books and records, including computer software
      and computer software programs, of the Partnership, (d) all other rights,
      interests, property or claims to which the Assignor may be entitled in its
      capacity as a partner of the Partnership, and (e) all proceeds and products
      of
      any of the foregoing (all of the foregoing rights, title and 

     

     

    
      
        
        

      

      
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    interest
      described in the foregoing clauses (a) through (e) being herein referred to
      collectively as the “Assigned
      Interests”).
      

     

    2.2.  Pledge
      of Cash Collateral Account.  

     

    The
      Assignor also hereby pledges and assigns to the Assignee, and grants to the
      Assignee a security interest in, the Cash Collateral Account and all of the
      Cash
      Collateral, subject to the terms of this Assignment. 

     

    2.3.  Waiver
      of Certain Partnership Agreement Provisions.  

     

    The
      Assignor irrevocably waives any and all provisions of the Partnership Agreement
      that (a) prohibit, restrict, condition or otherwise affect the grant hereunder
      of any lien, security interest or encumbrance on any of the Collateral or any
      enforcement action which may be taken in respect of any such lien, security
      interest or encumbrance, or (b) otherwise conflict with the terms of this
      Assignment.

     

    2.4.  Authorization
      to File Financing Statement.  

     

    The
      Assignor hereby authorizes the Assignee to file in any Uniform Commercial Code
      filing office a financing statement naming the Assignor as the debtor and
      indicating the Collateral as the collateral. The financing statement may
      indicate some or all of the collateral on the financing statement, whether
      specifically or generally.

     

    3.  REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF ASSIGNOR.  

     

    3.1.  Representations
      and Warranties.  

     

    The
      Assignor hereby represents and warrants to Assignee as follows:

     

    (a)    The
      Partnership is duly organized, validly existing, and in good standing under
      the
      laws of the state of Texas and all other jurisdictions where the Partnership
      does business; the Partnership Agreement is in full force and effect; the
      Assignor is a duly constituted partner of the Partnership pursuant to the
      Partnership Agreement; the persons and entities listed as partners in the
      Partnership Agreement are the only partners of the Partnership; and the Assigned
      Interests are validly issued, non-assessable and, except as set forth in §3.1(g)
      hereof, fully paid partnership interests in the Partnership.

     

    (b)    The
      Assignor has full right, power and authority to make this Assignment (including
      the provisions enabling the Assignee or its nominee, upon the occurrence of
      an
      Event of Default, to exercise the voting or other rights provided for herein),
      under the Partnership Agreement and under applicable law, without the consent,
      approval or authorization of, or notice to, any other person, including any
      regulatory authority or any person having any interest in the
      Partnership.

     

    (c)    The
      execution, delivery, and performance of this Assignment and the transactions
      contemplated hereby (i) have been duly authorized by all necessary partnership
      proceedings on behalf of the Assignor, (ii) do not conflict with or result
      in
      any breach or contravention of any applicable law, regulation, 

     

     

    
      
        
        

      

      
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    judicial
      order or decree to which such Assignor is subject, (iii) do not conflict with
      or
      violate any provision of the limited partnership certificate or agreement of
      the
      Assignor, and (iv) do not violate, conflict with, constitute a default or event
      of default under, or result in any rights to accelerate or modify any
      obligations under any agreement, instrument, lease, mortgage or indenture to
      which such Assignor is party or subject, or to which any of its assets are
      subject.

     

    (d)    This
      Assignment has been duly executed and delivered by the Assignor and is the
      legal, valid, and binding obligation of the Assignor enforceable against it
      in
      accordance with the terms hereof except as enforceability is limited by
      bankruptcy, insolvency, reorganization, moratorium, or other laws relating
      to or
      affecting generally the enforcement of creditors’ rights and except to the
      extent that availability of the remedy of specific performance or injunctive
      relief is subject to the discretion of the court before which any case or
      proceeding therefor may be brought.

     

    (e)    The
      Assignor is the sole, direct, legal and beneficial owner of all Assigned
      Interests, which Assigned Interests constitute 100% of the 99.9% limited
      partnership interest in the Partnership, and has good and marketable title
      thereto, free and clear of any lien, security interest, mortgage or other
      encumbrance, other than the liens and security interest granted to the Assignee
      hereunder; and the liens and security interests hereunder constitute valid
      and
      perfected first priority liens and security interests.

     

    (f)    If
      the
      Assignor is an organization, the Assignor’s type and jurisdiction of
      organization and the Assignor’s organizational identification number, if the
      Assignor has one, is set forth below the Assignor’s signature to this Agreement.
      The Assignor’s principal place of business, chief executive office, and the
      place where its records concerning the Collateral are kept is located at 1450
      West Sam Houston Parkway North, Suite 100, Houston, Texas 77043.

     

    (g)    The
      Assignor has no obligation to
      make
      any contribution, capital call or other payment to the Partnership with respect
      to the Assigned Interests.

     

    (h)    The
      copy
      of the Partnership Agreement attached hereto as Exhibit A
      is a
      true, correct, and complete copy thereof, and the Partnership Agreement has
      not
      been amended or modified in any respect, except for such amendments or
      modifications as are attached to the copy thereof delivered to the
      Assignee.

     

    (i)    The
      partnership interest of the Assignor in the Partnership is not evidenced by
      any
      certificate issued by the Partnership.

     

    (j)    The
      partnership interest of the Assignor in the Partnership is not a
      security governed by Article 8 of the Uniform Commercial Code of the
      jurisdiction in which the Partnership is organized.

     

     

    
      
        
        

      

      
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    3.2.  Covenants. The
      Assignor covenants to the Assignee as follows:

     

    (a)    The
      Assignor will not permit or agree to any amendment or modification of the
      Partnership Agreement (except for ministerial or other non-substantive
      amendments or modifications) as in effect on the date hereof (or other governing
      document with respect to the Assigned Interests), or waive any rights or
      benefits under the Partnership Agreement (or such other governing document),
      without the prior written consent of the Assignee.

     

    (b)    Without
      the prior written consent of the Assignee, the Assignor will not sell, dispose
      of or assign, beneficially or of record, or grant, create, permit or suffer
      any
      lien or encumbrance on, any of the Assigned Interests, or withdraw as the
      limited partner of the Partnership. 

     

    (c)    Without
      the prior written consent of the Assignee, the Assignor shall not cast any
      vote
      or give or grant any consent, waiver or ratification or take any other action
      which could reasonably be expected to (i) directly or indirectly authorize
      or
      permit the dissolution, liquidation or sale of the Partnership or the sale,
      lease, assignment, transfer or other disposition of any of the assets of the
      Partnership (except for personal property which is disposed of in the ordinary
      course of business and so long as no Event of Default has occurred and is
      continuing), whether by operation of law or otherwise, (ii) have the result
      of
      materially and adversely affecting any of the Assignee’s rights under this
      Assignment or under any of the other Loan Documents, (iii) violate the terms
      of
      this Assignment or any of the other Loan Documents, (iv) have the effect of
      impairing the validity, perfection or priority of the security interest of
      the
      Assignee in any manner whatsoever, or (v) cause an Event of
      Default.

     

    (d)    The
      Assignor will comply with all laws, regulations, judicial orders or decrees
      applicable to the Collateral or any portion thereof, and perform and observe
      its
      duties under the Partnership Agreement or other governing documents with respect
      to the Assigned Interests.

     

    (e)    The
      Assignor will (i) keep and maintain at its own cost and expense at its principal
      place of business satisfactory and complete records of the Collateral including
      a record of all payments received and all other dealings of a material nature
      with the Collateral, and (ii) mark its books and records pertaining to the
      Collateral and its books and records kept in its jurisdiction of organization
      to
      evidence this Assignment and the liens and security interests granted
      hereby.

     

    (f)    The
      Assignor will pay promptly when due any taxes, assessments, and governmental
      charges or levies imposed upon the Collateral or in respect of its income or
      profits therefrom, as well as all claims of any kind except that no such charge
      need be paid if (i) the validity thereof is being diligently contested in good
      faith by appropriate proceedings; (ii) such proceedings do not involve any
      danger of the sale, forfeiture, or loss of any of the Collateral or any interest
      

     

     

    
      
        
        

      

      
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    therein;
      and (iii) such charge is adequately reserved against in a manner acceptable
      to
      the Assignee.

     

    (g)    The
      Assignor will advise the Assignee promptly, in reasonable detail, of (i) any
      lien, charge, claim or other encumbrance made or asserted against any of the
      Collateral; (ii) any material change in the composition of the Collateral;
      (iii)
      the occurrence of any other event or condition which to its knowledge would
      have
      a material effect on the validity, perfection or priority of the liens and
      security interests granted hereunder; and (iv) any bankruptcy or litigation
      case
      or proceeding relating to any of the Collateral. 

     

    (h)    The
      Assignor will not (i) if the Assignor is an organization, change its type or
      jurisdiction of organization or, if it has one, its organizational
      identification number, (ii) change its principal place of business or chief
      executive office or the location of the records concerning the Collateral
      without giving prior written notice to the Assignee and taking such actions
      as
      may be necessary or appropriate in the reasonable opinion of the Assignee duly
      to perfect and continue the perfection of the Assignee’s first priority lien and
      security interest in the Collateral pursuant to the laws of any jurisdiction
      into which such place of business, chief executive office, or records is or
      are
      transferred, and (iii) change its name in any matter that might make any
      financing statement filed hereunder misleading or invalid unless the Assignor
      shall have notified the Assignee thereof and taken all such actions as may
      be
      necessary or appropriate in the reasonable opinion of the Assignee to make
      any
      financing statement filed in favor of the Assignee not misleading or invalid.
      

     

    (i)    The
      Assignor shall do or cause to be done all things necessary to preserve, renew
      and keep in full force and effect its legal existence and that of the
      Partnership, the power and authority of each of the Assignor and the Partnership
      to own its property and carry on its business, the qualification of each of
      the
      Assignor and the Partnership to do business in its jurisdiction of organization,
      and the qualification of each of the Assignor and the Partnership to do business
      in each other jurisdiction where such qualification is necessary except where
      the failure so to qualify would not have a material adverse effect on the rights
      and interests of the Assignee hereunder. 

     

    (j)    If
      requested by the Assignee, within one hundred twenty (120) days after the end
      of
      each tax year, the Assignor shall furnish to the Assignee complete copies of
      the
      federal income tax returns of the Assignor and of the Partnership. 

     

    (k)    Without
      the prior written consent of the Assignee, the Assignor will not cause or permit
      the partnership interest of the Assignor in the Partnership to be evidenced
      by a
      certificate issued by the Partnership or to constitute a security governed
      by
      Article 8 of the Uniform Commercial Code of the jurisdiction in which the
      Partnership is organized. If the partnership interest at 

     

    
      
        
        

      

      
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    any
      time
      constitutes a security governed by Article 8 of the Uniform Commercial Code
      of
      the jurisdiction in which the Partnership is organized, the Assignor will,
      if it
      has not already done so, forthwith obtain an agreement from the Partnership,
      in
      form and substance satisfactory to the Assignee, that the Partnership will
      comply with instructions of the Assignee as to the Assigned Interests without
      further consent of the Assignor. 

     

    4.  RIGHTS
      OF ASSIGNEE.  

     

    4.1.  Assignee
      Appointed Attorney-in-Fact.  The
      Assignor hereby irrevocably constitutes and appoints the Assignee, its
      successors and assigns, its true and lawful attorney-in-fact, with full power
      and authority and with full power of substitution, at the expense of the
      Assignor, either in the Assignee’s own name or in the name of the Assignor, at
      any time and from time to time, in each case as the Assignee in its sole
      discretion may determine (a) to take any and all appropriate action and to
      execute any and all documents and instruments that may be necessary or desirable
      to accomplish the purposes of this Agreement and (b) upon the occurrence and
      during the continuance of an Event of Default: 

     

    
      	 	
              (i)

            	
              to
                take any action and execute any instruments that such attorney-in-fact
                may
                deem necessary or advisable to accomplish the purposes
                hereof;

            

    

     

    
      	 	
              (ii)

            	
              to
                ask, demand, collect, receive, receipt for, sue for, compound, and
                give
                acquittance for any and all sums or properties that may be or become
                due,
                payable, or distributable in respect of the Collateral or that constitute
                a part thereof, with full power to settle, adjust, or compromise
                any claim
                thereunder or therefor as fully as the Assignor could
                do;

            

    

     

    
      	 	
              (iii)

            	
              to
                endorse or sign the name of the Assignor on all instruments given
                in
                payment or in part payment thereof and all documents of satisfaction,
                discharge, or receipt required or requested in connection therewith;
                and
                

            

    

     

    
      	 	
              (iv)

            	
              to
                file or take any action or institute any case or proceeding that
                the
                Assignee may deem necessary or appropriate to collect or otherwise
                realize
                upon any or all of the Collateral, or effect a transfer thereof,
                or that
                may be necessary or appropriate to protect and preserve the right,
                title,
                and interest of the Assignee in and to the Collateral and the security
                intended to be afforded hereby.

            

    

     

    4.2.  Cash
      Collateral Account. Unless
      applied by the Assignee to Obligations then due and payable, all sums of money
      that are paid to the Assignee pursuant to this Assignment shall be deposited
      into an interest bearing account with the Assignee or another financial
      institution selected by the Assignee in its sole discretion (the “Cash
      Collateral Account”).
      Some
      or all of the funds from time to time in the Cash Collateral Account may be
      invested in time deposits, including certificates of deposit issued by the
      Assignee or another financial institution selected by the Assignee in its sole
      discretion

     

    
      
        
        

      

      
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    (such
      certificates of deposit or other time deposits being hereinafter referred to,
      collectively, as “Time
      Deposits”)
      that
      are satisfactory to the Assignee, provided, in any such case, arrangements
      satisfactory to the Assignee are made to perfect, and to ensure the first
      priority of, its lien and security interest in such Time Deposits. Interest
      earned on the Cash Collateral Account and on the Time Deposits, and the
      principal of the Time Deposits at maturity that is not invested in new Time
      Deposits, shall be deposited in the Cash Collateral Account. The Cash Collateral
      Account, all sums from time to time standing to the credit of the Cash
      Collateral Account, any and all Time Deposits, any and all instruments or other
      writings evidencing Time Deposits, and any and all proceeds of any thereof
      are
      hereinafter referred to as the “Cash
      Collateral.”
      If the
      Cash Collateral Account is not maintained with the Assignee, the Assignor shall,
      at the Assignee’s request and option, pursuant to an agreement in form and
      substance satisfactory to the Assignee, either (a) cause the depositary bank
      with which the Cash Collateral Account is maintained to agree to comply at
      any
      time with instructions from the Assignee to such depositary bank directing
      the
      funds comprising the Cash Collateral, without further consent of the Assignee,
      or (b) arrange for the Assignee to become the customer of such depositary bank
      with respect to the Cash Collateral Account.

     

    4.3.  Distributions,
      Conversion, Voting, etc.  

     

    So
      long
      as no Event of Default shall have occurred and be continuing and to the extent
      permitted under the Credit Agreement, the Assignor shall be entitled to

     

    
      	 	
              (a)

            	
              receive
                all cash and other distributions paid in respect of the Assigned
                Interests
                not authorized or made in violation of the Credit
                Agreement;

            

    

     

    
      	 	
              (b)

            	
              exercise
                any management or voting rights relating to the Assigned Interests;
                and

            

    

     

    
      	 	
              (c)

            	
              give
                consents, waivers, approvals, and ratifications in respect of the
                Assigned
                Interests. 

            

    

     

    All
      such
      rights of the Assignor to receive cash and other distributions shall cease
      if an
      Event of Default shall have occurred and be continuing, and in each such case
      the Assignor shall (i) at the request of the Assignee, issue appropriate
      instructions that any such distributions be paid directly to the Assignee or
      to
      such account as the Assignee may designate, and (ii) hold in trust for the
      Assignee and immediately pay over to the Assignee any such distributions
      received by the Assignor. All such rights of the Assignor referred to in clauses
      (b) and (c) shall, at the Assignee’s sole option, as evidenced by the Assignee’s
      notifying the Assignor in writing of its exercise of such option, cease in
      case
      an Event of Default shall have occurred and be continuing. 

     

    4.4.  No
      Assignment of Duties. This
      Assignment constitutes an assignment of the Assigned Interests and the other
      Collateral only and not an assignment of any duties or obligations of the
      Assignor with respect thereto, and by its acceptance hereof and whether or
      not
      the Assignee shall have exercised any of its rights or remedies hereunder,
      the
      Assignee does not undertake to perform or discharge, and shall not be
      responsible or 

     

     

    
      
        
        

      

      
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    liable
      for the performance or discharge of, any such duties or responsibilities,
      including, without limitation, for capital calls. The Assignor agrees that,
      notwithstanding the exercise by the Assignee of any of its rights hereunder,
      the
      Assignor shall remain liable for the full and prompt performance of all of
      the
      Assignor’s obligations and liabilities under the Partnership Agreement. Under no
      circumstances shall the Assignee or any holder of any of the Obligations as
      such
      be deemed to be a partner of the Partnership by virtue of the provisions of
      this
      Assignment unless expressly agreed to in writing by the Assignee. Without
      limiting the generality of the foregoing, the Assignee shall have no partnership
      fiduciary duty to the Assignor, whether by virtue of the security interests
      and
      liens hereunder, or any enforcement action in respect of such security interests
      and liens, unless and until the Assignee is admitted to the Partnership as
      a
      substitute partner after exercising enforcement rights under §9-504 or §9-505 of
      the Uniform Commercial Code in effect in the state of New York or otherwise.
      

     

    5.  EVENTS
      OF DEFAULT.  

     

    Any
      one
      or more of the following events shall constitute an “Event of Default”
      hereunder:  

     

    (a)    The
      Assignor shall fail to perform any of its obligations under the Partnership
      Agreement; or

     

    (b)    The
      occurrence of any “Event
      of Default”
      or
      other like occurrence under the Credit Agreement, the other Loan Documents
      or
      any other agreement between the Assignor and the Assignee or under any other
      instrument executed by the Assignor in favor of the Assignee.

     

    6.  REMEDIES.  

     

    6.1.  Remedies. During
      the continuance of an Event of Default, the Assignee shall have, in addition
      to
      the rights, powers and authorizations to collect the sums assigned hereunder,
      all rights and remedies of a secured party under the Uniform Commercial Code
      and
      under other applicable law with respect to the Assigned Interests and any other
      Collateral hereunder, including, without limitation, the following rights and
      remedies: 

     

    (a)    if
      the
      Assignee so elects and gives written notice of such election to the Assignor,
      the Assignee may, in its sole discretion, (i) exercise any management or voting
      rights relating to the Assigned Interests (whether or not the same shall have
      been transferred into its name or the name of its nominee or nominees) for
      any
      lawful purpose, including for the amendment or modification of the Partnership
      Agreement or other governing documents or the liquidation of the assets of
      the
      Partnership, (ii) give all consents, waivers, approvals, and ratifications
      in
      respect of such Assigned Interests, and (iii) otherwise act with respect thereto
      as though it were the outright owner thereof (the Assignor hereby 

     

     

    
      
        
        

      

      
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    irrevocably
      constituting and appointing the Assignee the proxy and attorney-in-fact of
      the
      Assignor, with full power and authority of substitution, to do so);

     

    (b)    the
      Assignee may, in its sole discretion, demand, sue for, collect, compromise,
      or
      settle any rights or claims in respect of any Collateral, as attorney-in-fact
      pursuant to §4(a) or otherwise; 

     

    (c)    (i)
      the
      Assignee may, in its sole discretion, sell, resell, assign, deliver, or
      otherwise dispose of any or all of the Collateral, for cash or credit or both
      and upon such terms, in such manner, at such place or places, at such time
      or
      times, and to such persons or entities as the Assignee thinks expedient, all
      without demand for performance by the Assignor or any notice or advertisement
      whatsoever except as expressly provided herein or as may otherwise be required
      by applicable law; and (ii) at the time of any such sale or other disposition,
      the Assignee or its nominee or any purchaser of the Collateral at a foreclosure
      sale may, in its sole discretion, cause the Partnership to make an election
      under §754 of the Internal Revenue Code as to the basis of any Assigned Interest
      being sold or otherwise disposed of;

     

    (d)    the
      Assignee may, in its sole discretion, cause all or any part of the Assigned
      Interests held by it to be transferred into its name or the name of its nominee
      or nominees; and

     

    (e)    the
      Assignee may, in its sole discretion, set off against the Obligations or place
      an administrative hold or freeze on any and all sums deposited with it or held
      by it, including any sums standing to the credit of the Cash Collateral Account
      and any Time Deposits issued by the Assignee, with any withdrawal penalty
      relating to Time Deposits being an expense of collection.

     

    6.2.  Remedies
      Not Exclusive. No
      single
      or partial exercise by the Assignee of any right, power or remedy hereunder
      shall preclude any other or further exercise thereof or the exercise of any
      other right, power or remedy. Each right, power and remedy herein specifically
      granted to the Assignee or otherwise available to it shall be cumulative, and
      shall be in addition to every other right, power, and remedy herein specifically
      given or now or hereafter existing at law, in equity, or otherwise. Each such
      right, power and remedy, whether specifically granted herein or otherwise
      existing, may be exercised at any time and from time to time and as often and
      in
      such order as may be deemed expedient by the Assignee in its sole
      discretion.

     

    6.3.  Public
      Sale. In
      the
      event of any sale or other disposition of the Collateral as provided in §6.1(c),
      the Assignee shall give to the Assignor at least five (5) Business Days’ prior
      written notice of the time and place of any public sale or other disposition
      of
      the Collateral or of the time after which any private sale or any other
      disposition is to be made. The Assignor hereby acknowledges that five (5)
      Business Days’ prior authenticated notice of such sale or other disposition or
      sales or other dispositions shall be reasonable notice. The Assignee may enforce
      its rights hereunder without any other 

     

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    notice
      and without compliance with any other condition precedent now or hereafter
      imposed by law, regulation, judicial order or decree or otherwise (all of which
      are hereby expressly waived by the Assignor, to the fullest extent permitted
      by
      law). The Assignee may buy any part or all of the Collateral, in each case
      free
      from any right or equity of redemption, at any public sale or other disposition
      and if any part or all of the Collateral is of a type customarily sold or
      otherwise disposed of in a recognized market or is of a type which is the
      subject of widely-distributed standard price quotations, the Assignee may buy
      at
      private sale or other disposition and may make payments thereof by any means.
      The Assignee may apply the cash proceeds actually received from any sale or
      other disposition to the reasonable expenses of retaking, holding, preparing
      for
      sale, selling, and the like, to reasonable attorneys’ fees, travel, and all
      other expenses which may be incurred by the Assignee in attempting to collect
      the Obligations or to enforce this Assignment or in the prosecution or defense
      of any case or proceeding related to this Assignment, and then to the
      Obligations in accordance with the requirements of the Credit Agreement.

     

    6.4.  Private
      Sale. The
      Assignor recognizes that the Assignee may be unable to effect a public sale
      or
      other disposition of the Collateral by reason of the lack of a ready market
      for
      the Collateral, of the limited number of potential buyers of the Collateral
      or
      of certain prohibitions contained in the Securities Act of 1933, state
      securities laws, federal banking laws, and other applicable laws, and that
      the
      Assignee may be compelled to resort to one or more private sales or other
      dispositions thereof to a restricted group of purchasers. The Assignor agrees
      that any such private sales or other dispositions may be at prices and other
      terms less favorable to the seller than if sold at public sales or other
      dispositions and that such private sales or other dispositions shall not solely
      by reason thereof be deemed not to have been made in a commercially reasonable
      manner. The Assignee shall be under no obligation hereunder or otherwise (except
      as provided by applicable law) to delay a sale or other disposition of any
      of
      the Collateral for the period of time necessary to permit the registration
      of
      such securities for public sale or other public disposition under the Securities
      Act of 1933 and applicable state securities laws. Any such sale or other
      disposition of all or a portion of the Collateral may be for cash or on credit
      or for future delivery and may be conducted at a private sale or other
      disposition where the Assignee or any other person or entity may be the
      purchaser of all or part of the Assigned Interests so sold or otherwise disposed
      of. The Assignor agrees that to the extent notice of sale or other disposition
      shall be required by law, at least five (5) Business Days’ prior notice to the
      Assignor of the time and place after which any private sale is to be made shall
      constitute reasonable notification. Subject to the foregoing, the Assignee
      agrees that any sale or other disposition of the Assigned Interests shall be
      made in a commercially reasonable manner. The Assignee shall incur no liability
      as a result of the sale or other disposition of any of the Collateral, or any
      part thereof, at any private sale which complies with the requirements of this
      §6.4. The Assignor hereby waives, to the extent permitted by applicable law,
      any
      claims against the Assignee arising by reason of the fact that the price at
      which any of the Collateral, or any part thereof, may have been sold or
      otherwise disposed of at such private sale was less than the price that might
      have been obtained at a public sale or other public disposition, even if the
      Assignee accepts the first offer deemed by the Assignee in good faith deemed
      to
      be commercially 

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    reasonable
      under the circumstances and does not offer any of the Collateral to more than
      one offeree.

     

    6.5.  Further
      Assurances.

     

    The
      Assignor further agrees to do or cause to be done all such other acts and things
      as may be reasonably necessary to make any sales of any portion or all of the
      Collateral valid and binding and in compliance with any and all applicable
      laws
      (including, without limitation, the Securities Act, the Securities Exchange
      Act
      of 1934, as amended, the rules and regulations of the Securities and Exchange
      Commission applicable thereto and all applicable state securities or “blue sky”
      laws), regulations, orders, writs, injunctions, decrees or awards of any and
      all
      courts, arbitrators or governmental instrumentalities, domestic or foreign,
      having jurisdiction over any such sale or sales, all at the Assignor’s expense.
      The Assignor further agrees that a breach of any of the covenants contained
      in
      this remedies section will cause irreparable injury to the Assignee, that
      Assignee has no adequate remedy at law in respect of such breach and, as a
      consequence, agrees that each and every covenant contained in this section
      shall
      be specifically enforceable against the Assignor by the Assignee and the
      Assignor hereby waives and agrees not to assert any defenses against an action
      for specific performance of such covenants.

     

    6.6.  Title. The
      Assignor further acknowledges its obligation for payment of any deficiency
      remaining beyond the amount of the sale or other disposition price of the
      Assigned Interests, or any of them, less any payment or expenses incurred by
      the
      Assignee in connection with such sale or other disposition, and the Assignor
      will promptly pay the amount of any such deficiency to the Assignee. Nothing
      contained in this Assignment shall be construed to require the Assignee to
      take
      any action with respect to the Assigned Interests, whether by way of foreclosure
      or otherwise and except as required by the Partnership Agreement, in order
      to
      permit the Assignee to become a substitute limited partner of the Partnership
      under the Partnership Agreement.

     

    7.  ASSIGNMENT
      NOT AFFECTED BY OTHER ACTS.  

     

    The
      Assignor acknowledges and agrees that the security interests and collateral
      assignments herein provided for shall remain in full force and effect and shall
      not be impaired by any acceptance by the Assignee of any other collateral
      security for or guaranty of any of the Obligations, or by any failure or neglect
      or omission on the part of the Assignee to realize upon, collect or protect
      any
      Obligations or any Collateral. The security interests and collateral assignments
      herein provided for shall not in any manner be affected or impaired by any
      renewal, extension, modification, amendment, waiver, or restatement of any
      of
      the Obligations or of any collateral security therefor, or of any guaranty
      thereof, the Assignor hereby waiving any and all suretyship defenses to the
      extent otherwise applicable. In order to sell or otherwise dispose of or
      otherwise realize upon the security interests and assignments herein granted
      and
      provided for, and exercise the rights granted the Assignee hereunder and under
      applicable law, there shall be no obligation on the part of the Assignee at
      any
      time to first resort for payment to any 

     

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

       

    

     

    guarantors
      of the Obligations or any part thereof or to resort to any other collateral
      security, property, liens or other rights or remedies whatsoever, and the
      Assignee shall have the right to enforce the security interests and collateral
      assignments herein provided for irrespective of whether or not other proceedings
      are pending for realization upon or from any of the foregoing.

     

    8.  MISCELLANEOUS.  

     

    8.1.  Additional
      Instruments and Assurances. The
      Assignor hereby agrees, at its own expense, to execute and deliver, from time
      to
      time, any and all further, or other, instruments, and to perform such acts,
      as
      the Assignee may reasonably request to effect the purposes of this Assignment
      and to secure to the Assignee the benefits of all rights and remedies conferred
      upon the Assignee by the terms of this Assignment.

     

    8.2.  Release. If
      and
      only if all of the Obligations shall have been indefeasibly paid, performed,
      and
      discharged in full in cash, and any commitments to lend under the Credit
      Agreement shall have been canceled, the Assignee shall, upon demand and at
      the
      sole expense of the Assignor, release this Assignment and the lien hereof by
      proper instrument or instruments, at the request and expense of the Assignor.
      

     

    8.3.  Assignee’s
      Exoneration. Under
      no
      circumstances shall the Assignee be deemed to assume any responsibility for
      or
      obligation or duty with respect to any part or all of the Collateral of any
      nature or kind or any matter or proceeding arising out of or relating thereto,
      other than (a) to exercise reasonable care in the physical custody of the
      Collateral and (b) if an Event of Default shall have occurred and be continuing,
      to act in a commercially reasonable manner in exercising its rights and remedies
      with respect to the Collateral. Subject to the foregoing, the Assignee shall
      not
      be required to take any action of any kind to collect, preserve or protect
      its
      or the Assignor's rights in the Collateral. 

     

    8.4.  No
      Waiver, etc. Any
      term
      of this Assignment may be amended or modified with, but only with, the written
      consent of the Assignor and the Assignee. Any term of this Assignment may be
      waived by a writing executed by the party to be charged with such waiver. No
      act, failure, or delay by the Assignee shall constitute a waiver of its rights
      and remedies hereunder or otherwise. No single or partial waiver by the Assignee
      of any default, right, or remedy that it may have shall operate as a waiver
      of
      any other default, right, or remedy or of the same default, right, or remedy
      on
      a future occasion. 

     

    8.5.  Waiver
      By Assignor. The
      Assignor hereby waives presentment, notice of dishonor, and protest of all
      instruments included in or evidencing any of the Obligations or the Collateral,
      and any and all other notices and demands whatsoever (except as expressly
      provided herein or in the Credit Agreement or for notices required in connection
      with judicial proceedings).

     

    8.6.  Notice,
      etc. All
      notices, requests, and other communications hereunder shall be made and
      effective in the manner and at the address set forth in §21 of the Credit

     

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

     

    Agreement
      or at such other address as may be set forth or in a notice from the notifying
      party to the other parties hereto.

     

    8.7.  Overdue
      Amounts. Until
      paid, all amounts due and payable by the Assignor hereunder shall be a debt
      secured by the Collateral and shall bear, whether before or after judgment,
      interest at the rate of interest for overdue principal set forth in the Credit
      Agreement.

     

    8.8.  Governing
      Law; Consent to Jurisdiction. This
      Assignment is intended to take effect as a sealed instrument and shall be
      governed by, and construed in accordance with, the laws of the state of New
      York
THE
      ASSIGNOR AGREES THAT ANY PROCEEDING FOR THE ENFORCEMENT OF THIS ASSIGNMENT
      MAY
      BE BROUGHT IN THE COURTS OF THE STATE
      OF
      NEW YORK OR THE STATE OF GEORGIA, OR ANY OTHER COURT HAVING JURISDICTION OVER
      THE ASSIGNOR, OR
      ANY
      FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NON-EXCLUSIVE JURISDICTION
      OF
      SUCH COURT AND TO SERVICE OF PROCESS IN ANY SUCH PROCEEDING BEING MADE UPON
      THE
      ASSIGNOR BY MAIL AT THE ADDRESS SPECIFIED IN &SECT;8.6. THE ASSIGNOR HEREBY
      WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY
      SUCH
      PROCEEDING OR ANY SUCH COURT OR THAT SUCH PROCEEDING IS BROUGHT IN AN
      INCONVENIENT COURT.

     

    8.9.  Waiver
      of Jury Trial. EACH
      OF
      THE ASSIGNOR AND THE ASSIGNEE HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH
      RESPECT TO ANY PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS
      ASSIGNMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE PERFORMANCE OF ANY
      SUCH
      RIGHTS OR OBLIGATIONS. 

     

    8.10.
      Limitation
      of Liability.
      Except
      as
      prohibited by applicable law, each of the Assignor and Assignee waives any
      right
      which it may have to claim or recover in any proceeding referred to in the
      preceding sentence any special, exemplary, or punitive damages or any damages
      other than, or in addition to, actual or consequential damages. The Assignor
      (a)
      certifies that neither the Assignee nor any representative, agent, or attorney
      of the Assignee has represented, expressly or otherwise, that the Assignee
      would
      not, in the event of any proceeding, seek to enforce the foregoing waivers
      and
      (b) acknowledges that, in entering into the Credit Agreement and the other
      Loan
      Documents to which the Assignee is a party, the Assignee is relying upon, among
      other things, the waivers and certifications contained in this
§8.10.

     

    8.11.  Severability
      and Enforceability. All
      provisions hereof are severable and the invalidity or unenforceability of any
      of
      such provisions shall in no manner affect or impair the validity and
      enforceability of the remaining provisions hereof.

     

    8.12.  Successors
      and Assigns. This
      Assignment shall be binding upon the Assignor and upon the legal
      representatives, successors and assigns of the Assignor and shall inure to
      the
      benefit of the Assignee and its successors and assigns.

     

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    8.13.  Counterparts. This
      Assignment may be executed in any number of counterparts, each constituting
      an
      original, but all together one and the same instrument.

     

    8.14.  Entire
      Agreement.
      This
      Assignment and the Loan Documents and any other document executed in connection
      herewith or therewith express the entire understanding of the parties with
      respect to the transactions contemplated hereby. Neither this Assignment nor
      any
      terms hereof may be changed, waived or terminated except by a writing signed
      by
      each party hereto.

     

    [Signatures
      follow on the Next Pages]

     

     

     

     

    

    
      
        
        

      

      
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    [Signature
      Page to Collateral Assignment of Partnership Interests; 

     

    HROP
      III LP LTD in HROP III LP]

     

    

     

    IN
      WITNESS WHEREOF,
      the
      Assignor and the Assignee have executed this Assignment as of the date first
      above written, as an instrument under seal.

     

                    ASSIGNOR:  
      HARTMAN
      REIT OPERATING PARTNERSHIP III 

                                             LP
      LTD, a Texas
      limited partnership

     

    
      
                                                                                                                                                 By:       
          Hartman
          REIT Operating Partnership III GP 

                                                                                                                                                               LLC,
          a Texas limited
          liability company, its 

                                                                                                                                                               sole
          general
          partner

      

    

     

    
      
                                                                                                                                                               By:     
          Hartman
          REIT Operating 

                                                                                                                                                                          
          Partnership, L.P., a
          Delaware limited 

                                                                                                                                                                          
          partnership, its
          sole member

      

    

     

    
      
                                                                                                                                                                          By:    
          Hartman
          Commercial 

                                                                                                                                                                                    
          Properties REIT, a
          Maryland 

                                                                                                                                                                                     real
          estate investment trust,

                                                                                                                                                                                    
          its sole general
          partner

      

    

    

                                
      By:       _________________________    

                             
      Name: Allen R.
      Hartman

                             
      Title:
      President

    

    

                                             
      Organizational identification number (or 

                                                                             
      state “none” if the jurisdiction does not issue 

                                                                             
      one):

    

                              800460879                                                                 
           

    

     

     

    [Signatures
      continue on the Next Pages]

     

    
 

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    

     

    [Signature
      Page to Collateral Assignment of Partnership Interests; 

     

    HROP
      III LP LTD in HROP III LP]

     

    

    

     

                                    ASSIGNEE:   
      KEYBANK
      NATIONAL ASSOCIATION

     

     

                                             By:____________________________

                                     
      Name: 
      Meredith Hall

                                     
      Title: 
      Vice President

    

     

     

    [Signatures
      continue on the Next Page]

     

     

    
 

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    

     

    [Signature
      Page to Collateral Assignment of Partnership Interests; 

     

    HROP
      III LP LTD in HROP III LP]

     

     

    The
      undersigned hereby consents to the transactions contemplated by the above
      Agreement.

    

     

    HARTMAN
      REIT OPERATING PARTNERSHIP 

    III
      LP, a
      Texas limited partnership 

    

    By:         
      Hartman
      REIT Operating Partnership III GP LLC,

    a
      Texas
      limited liability company, its sole general

    partner

    

    
      	 	
              By:

            	
              Hartman
                REIT Operating Partnership, L.P., 

            

    

    a
      Delaware limited partnership, its sole member

    

    
      	 	
              By:
                

            	
              Hartman
                Commercial Properties REIT, a Maryland real estate 

              investment
                trust, its sole general partner

            

    

    

    By:        
      _____________________________       

    Name:
      Allen R. Hartman

    Title:
      President

    

    

     

    -18-Exhibit 10.52

                           SEVENTH AMENDMENT AGREEMENT

      SEVENTH AMENDMENT AGREEMENT (this "Agreement") dated as of June 3, 2005 by
and  among (1)  Imagistics  International  Inc.  (the  "Borrower"),  (2) Bank of
America,  N.A. (as successor to Fleet Capital  Corporation)  (together  with its
successors and assigns, "Bank of America"), and the other financial institutions
party to the Credit Agreement (as defined below) as lenders  (collectively,  the
"Lenders"  and   individually,   a  "Lender")  and  (3)  Bank  of  America,   as
administrative agent (the  "Administrative  Agent") for the Lenders with respect
to a certain  Credit  Agreement  dated as of  November  9, 2001 by and among the
Borrower,  the Lenders and the Administrative  Agent, as amended by that certain
First  Amendment  Agreement  dated as of March 19,  2002,  that  certain  Second
Amendment  Agreement  dated as of July 19, 2002,  that certain  Third  Amendment
Agreement  dated as of March 5, 2003,  that certain Fourth  Amendment  Agreement
dated as of May 16, 2003, that certain Fifth Amendment Agreement dated as of May
7, 2004 and that certain Sixth Amendment  Agreement dated as of June 1, 2004 (as
amended, the "Credit Agreement").

                              W I T N E S S E T H:

      WHEREAS,  the Borrower has requested  that the Lenders amend certain terms
and  provisions of the Credit  Agreement on the terms and  conditions  set forth
herein; and

      WHEREAS,  the  parties  hereto  have  agreed  to so amend  such  terms and
provisions of the Credit Agreement on the terms and conditions set forth herein.

      NOW,  THEREFORE,  for good and  valuable  consideration,  the  receipt and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

      ss.1.  Definitions.  Capitalized terms used herein without definition that
are  defined in the Credit  Agreement  (after  giving  effect to the  amendments
thereof set forth herein) shall have the same meanings herein as therein.

      ss.2.   Ratification  of  Existing  Agreements.   All  of  the  Borrower's
obligations  and  liabilities  to the  Creditors  as  evidenced  by or otherwise
arising under the Credit  Agreement,  the Notes and the other Credit  Documents,
are, by the Borrower's  execution of this  Agreement,  ratified and confirmed in
all respects.  In addition,  by the Borrower's execution of this Agreement,  the
Borrower  represents and warrants that it does not have any counterclaim,  right
of  set-off  or  defense  of any  kind  with  respect  to such  obligations  and
liabilities.

      ss.3.  Representations and Warranties.  The Borrower hereby represents and
warrants to the Creditors that all of the representations and warranties made by
the Borrower in the Credit  Agreement,  the Notes and the other Credit Documents
are true in all material respects on the date hereof as if made on and as of the
date  hereof,  except to the extent  that such  representations  and  warranties
relate expressly to an earlier date.

<PAGE>

      ss.4.   Conditions   Precedent.   The   effectiveness  of  the  amendments
contemplated  hereby shall be subject to the  satisfaction on or before the date
hereof of each of the following conditions precedent:

            (a) Representations  and Warranties.  All of the representations and
      warranties made by the Borrower  herein,  whether directly or incorporated
      by  reference,  shall be true and  correct  on the date  hereof  except as
      provided in ss.3 hereof.

            (b)  Performance;  No Event of  Default.  The  Borrower  shall  have
      performed  and  complied  in all  respects  with all terms and  conditions
      herein  required to be performed or complied with by it prior to or at the
      time hereof, and there shall exist no Default or Event of Default.

            (c) Corporate Action.  All requisite  corporate action necessary for
      the valid  execution,  delivery  and  performance  by the Borrower of this
      Agreement  and  all  other  instruments  and  documents  delivered  by the
      Borrower  in  connection  therewith  shall have been duly and  effectively
      taken.

            (d)  Delivery.  The  Borrower and the  Majority  Lenders  shall have
      executed this Agreement and delivered this Agreement to the Administrative
      Agent.

      ss.5.  Amendments to the Credit Agreement.

            5.1  Amendment  to  Section  1.01.   The  definition  of  "Permitted
      Repurchase  Amount"  appearing in Section 1.01 of the Credit  Agreement is
      hereby amended in its entirety to read as follows:

                  "Permitted  Repurchase  Amount"  shall mean an amount equal to
            the  sum of (a)  $168,000,000,  plus  (b)  the  amount  of net  cash
            proceeds  actually received by the Borrower from the issuance and/or
            resale by the Borrower of up to 1,000,000 shares of its common stock
            Equity  Interests  to  its  employees  pursuant  to  the  Borrower's
            employee  stock  purchase  plan.

            5.2  Amendment  to Section  9.06.  Subsection  9.06(h)(viii)  of the
      Credit Agreement is hereby amended in its entirety to read as follows:

                  (viii)  the  Acquisition  Consideration  for such  Acquisition
            (other  than any  Acquisition  Consideration  consisting  of  Equity
            Interests  (other than  Disqualified  Equity  Interests) or proceeds
            from the  issuance by Borrower of its Equity  Interests  (other than
            Disqualified   Equity   Interests))   (collectively,   the   "Equity
            Acquisition  Consideration"),  together with the aggregate amount of
            the  Acquisition   Consideration   (other  than  Equity  Acquisition
            Consideration)  for  all  Acquisitions  effected  pursuant  to  this
            Section  9.06(h)  since  the  Effective   Date,   shall  not  exceed
            $100,000,000; and

                                       2
<PAGE>

            5.3 Amendments to Section 9.08.

            (a)  Section  9.08 of the  Credit  Agreement  is hereby  amended  by
      deleting the  references to  "$5,000,000"  in each of clauses (g), (h) and
      (j) and inserting "$15,000,000" in lieu thereof.

            (b) Section 9.08(f) of the Credit Agreement is hereby amended in its
      entirety to read as follows:

                  (f) Indebtedness  and Contingent  Obligations of the Companies
            incurred (i) in connection  with the financing or refinancing of the
            acquisition  after  the  Effective  Date  of  any  Property  or  any
            improvement  thereon by any Company or (ii) under any Capital Lease,
            provided that the aggregate amount of (x) all such  Indebtedness and
            Contingent Obligations described in clauses (i) and (ii) above, plus
            (y) all Indebtedness and Contingent Obligations permitted by Section
            9.08(g)  which are  secured by Liens  permitted  pursuant to Section
            9.07(c)(A)  (or,  with  respect  to  any  extensions,   renewals  or
            replacements  thereof,  pursuant  to  Section  9.07(j))  at any time
            outstanding  shall not exceed  $15,000,000  in the aggregate for the
            Companies,  collectively;

            5.4 Amendment to Section 9.10.  Subsection  9.10(c)(i) of the Credit
      Agreement is hereby amended in its entirety to read as follows:

                  (i)  repurchases of Equity  Interests of Borrower in an amount
            not to exceed  Permitted  Repurchase  Amounts in the aggregate after
            the Effective Date; provided,  however,  that after giving effect to
            any such  repurchase,  Borrower shall  thereupon have the ability to
            borrow not less than  $20,000,000  in the form of a  Revolving  Loan
            pursuant to this Agreement;

      ss.6. Miscellaneous Provisions.

            (a) Except as otherwise expressly provided by this Agreement, all of
the respective  terms,  conditions and provisions of the Credit  Agreement,  the
Notes  and the  other  Credit  Documents  shall  remain  the  same.  The  Credit
Agreement,  the Notes and the other Credit  Documents,  each as amended  hereby,
shall continue in full force and effect,  and that this Agreement and the Credit
Agreement shall be read and construed as one instrument.

            (b) This  Agreement is intended to take effect  under,  and shall be
construed according to and governed by, the laws of the State of New York.

            (c) This  Agreement  may be executed in any number of  counterparts,
but all such  counterparts  shall  together  constitute but one  instrument.  In
making  proof of this  Agreement it shall not be necessary to produce or account
for more than one  counterpart  signed by each party hereto by and against which
enforcement hereof is sought. A facsimile of an executed  counterpart shall have
the same effect as the original executed counterpart.

         [Remainder of page intentionally blank; Signature Pages follow]

                                       3
<PAGE>

            IN WITNESS  WHEREOF,  each of the  parties  hereto  have caused this
Agreement to be executed in its name and behalf by its duly  authorized  officer
as of the date first written above.

                                            IMAGISTICS INTERNATIONAL INC.

                                            By:  /s/ TIMOTHY E. COYNE
                                                 -----------------------------
                                                 Timothy E. Coyne
                                                 Its Chief Financial Officer

<PAGE>

                                        BANK OF AMERICA, N.A.,
                                         as Administrative Agent and as a Lender

                                        By: /s/ KENNETH S. STRUGLIA
                                            -----------------------
                                            Kenneth S. Struglia
                                            Its Managing Director

<PAGE>

                                        MERRILL LYNCH CAPITAL CORPORATION,
                                         as a Lender

                                        By: /s/ ANTHONY J. LAFAIRE
                                            ----------------------
                                            Anthony J. Lafaire
                                            Its:  Director

<PAGE>

                                        JPMORGAN CHASE BANK,
                                         as a Lender

                                        By: /s/ PETER M. KILLEA
                                            -------------------
                                            Peter M. Killea
                                            Its:  Vice President

<PAGE>

                                            PEOPLE'S BANK,
                                              as a Lender

                                            By: /s/ GEORGE F. PAIK
                                                ------------------
                                                George F. Paik
                                                Its:  Vice President

<PAGE>

                                            BANK LEUMI, USA,
                                            as a Lender

                                            By:  /s/ JOHN KOENIGSBERG
                                               ----------------------
                                               John Koenigsberg
                                               Its: First VP

                                            By:  /s/ IRIS STEINHARDT
                                               ---------------------
                                               Iris Steinhardt
                                               Its: Vice President

<PAGE>

                                            U.S. BANK NATIONAL ASSOCIATION, as a
                                            Lender

                                            By:____________________________

                                                 Its:

<PAGE>

                                            CITIZENS BANK OF MASSACHUSETTS,
                                            as a Lender

                                            By: /s/ CINDY CHEN
                                                --------------------------------
                                                Cindy Chen
                                                Its:  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]