Document:

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                                                                   Exhibit 10.14

                               SECURITY AGREEMENT

         SECURITY AGREEMENT (this "Agreement"), dated as of February 23, 2001,
by and among Vital Living Products, Inc., a Delaware corporation (the
"Company"), and the secured parties signatory hereto and their respective
endorsees, transferees and assigns (collectively, the "Secured Party").

                                   WITNESSETH:

         WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof between Company and the Secured Party (the "Purchase Agreement"), Company
has agreed to issue to the Secured Party and the Secured Party has agreed to
purchase from Company certain of Company's 12% Secured Convertible Debentures,
due one year from the date of issue (the "Debentures"), which are convertible
into shares of Company's Common Stock, $ 0.01 par value (the "Common Stock"). In
connection therewith, Company will issue to the Secured Party certain Common
Stock purchase warrants dated as of the date hereof to purchase the number of
shares of Common Stock indicated below each Secured Party's name on the Purchase
Agreement (the "Warrants"); and

         WHEREAS, in order to induce the Secured Party to purchase the
Debentures, Company has agreed to execute and deliver to the Secured Party this
Agreement for the benefit of the Secured Party and to grant to the Secured Party
a first priority security interest in certain property of Company as set forth
below to secure (i) the prompt payment and performance in full of the Company's
obligations under the Debentures and (ii) the payment and performance in full of
the Company with respect to its obligations under the Warrants.

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

         1. Certain Definitions. As used in this Agreement, the following terms
shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC
(such as "general intangibles" and "proceeds") shall have the respective
meanings given such terms in Article 9 of the UCC as such article may be amended
from time to time.

                  (a) "Collateral" means the collateral in which the Secured
Party is granted a security interest by this Agreement and which shall include
the following, whether presently owned or existing or hereafter acquired or
coming into existence, and all additions and accessions thereto and all
substitutions and replacements thereof, and all proceeds, products and accounts
thereof, including, without limitation, all proceeds from the sale or transfer
of the Collateral and of insurance covering the same and of any tort claims in
connection therewith:

                           (i)      All Goods of the Company, including, without
                  limitations, all machinery, equipment, computers, motor
                  vehicles, trucks, tanks, boats, ships, appliances, furniture,
                  special and general tools, fixtures, test and quality control
                  devices and other equipment of every kind and nature and
                  wherever situated, together with all documents of title and

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                  documents representing the same, all additions and accessions
                  thereto, replacements therefor, all parts therefor, and all
                  substitutes for any of the foregoing and all other items used
                  and useful in connection with the Company's businesses and all
                  improvements thereto (collectively, the "Equipment"); and

                           (ii)     All Inventory of the Company; and

                           (iii)    All of the Company's contract rights and
                  general intangibles, including, without limitation, all
                  partnership interests, stock or other securities, licenses,
                  distribution and other agreements, computer software
                  development rights, leases, franchises, customer lists,
                  quality control procedures, grants and rights, goodwill,
                  trademarks, service marks, trade styles, trade names, patents,
                  patent applications, copyrights, deposit accounts, and income
                  tax refunds (collectively, the "General Intangibles"); and

                           (iv)     All Receivables of the Company including all
                  insurance proceeds, and rights to refunds or indemnification
                  whatsoever owing, together with all instruments, all documents
                  of title representing any of the foregoing, all rights in any
                  merchandising, goods, equipment, motor vehicles and trucks
                  which any of the same may represent, and all right, title,
                  security and guaranties with respect to each Receivable,
                  including any right of stoppage in transit; and

                           (v)      All of the Company's documents, instruments
                  and chattel paper, files, records, books of account, business
                  papers, computer programs and the products and proceeds of all
                  of the foregoing Collateral set forth in clauses (i)-(iv)
                  above.

                  (b) "Company" shall mean, collectively, Company and all of the
subsidiaries of Company, identified in Schedule A, attached hereto.

                  (c) "Obligations" means all of the Company's obligations under
this Agreement and the Debentures, in each case, whether now or hereafter
existing, voluntary or involuntary, direct or indirect, absolute or contingent,
liquidated or unliquidated, whether or not jointly owed with others, and whether
or not from time to time decreased or extinguished and later decreased, created
or incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from the Secured Party as a preference, fraudulent
transfer or otherwise as such obligations may be amended, supplemented,
converted, extended or modified from time to time.

                  (d) "UCC" means the Uniform Commercial Code, as currently in
effect in the State of New York.

         2. Grant of Security Interest. As an inducement for the Secured Party
to purchase the Debentures and to secure the complete and timely payment and
performance in full thereof, as the case may be, of all of the Obligations, the
Company hereby, unconditionally and irrevocably, pledges, grants and
hypothecates to the Secured Party, a continuing security interest in, a
continuing first lien upon, an unqualified right to possession and disposition
of and a right of set-off against, in each case to the fullest extent permitted
by law, all of the Company's right, title and interest of whatsoever kind and
nature in and to the Collateral (the "Security Interest").

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         3. Representations, Warranties, Covenants and Agreements of the
Company. The Company represents and warrants to, and covenants and agrees with,
the Secured Party as follows:

                  (a) The Company has the requisite corporate power and
authority to enter into this Agreement and otherwise to carry out its
obligations thereunder. The execution, delivery and performance by the Company
of this Agreement and the filings contemplated therein have been duly authorized
by all necessary action on the part of the Company and no further action is
required by the Company. This Agreement constitutes a legal, valid and binding
obligation of the Company enforceable in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditor's rights
generally.

                  (b) The Company represents and warrants that it has no place
of business or offices where its respective books of account and records are
kept (other than temporarily at the offices of its attorneys or accountants) or
places where Collateral is stored or located, except as set forth on Schedule A
attached hereto;

                  (c) Except as set forth on Schedule A attached hereto the
Company is the sole owner of the Collateral (except for non-exclusive licenses
granted by the Company in the ordinary course of business), free and clear of
any liens, security interests, encumbrances, rights or claims, and is fully
authorized to grant the Security Interest in and to pledge the Collateral. There
is not on file in any governmental or regulatory authority, agency or recording
office an effective financing statement, security agreement, license or transfer
or any notice of any of the foregoing (other than those that have been filed in
favor of the Secured Party pursuant to this Agreement) covering or affecting any
of the Collateral. So long as this Agreement shall be in effect, the Company
shall not execute and shall not knowingly permit to be on file in any such
office or agency any such financing statement or other document or instrument
(except to the extent filed or recorded in favor of the Secured Party pursuant
to the terms of this Agreement).

                  (d) No part of the Collateral has been judged invalid or
unenforceable. No written claim has been received that any Collateral or the
Company's use of any Collateral violates the rights of any third party. There
has been no adverse decision to the Company's claim of ownership rights in or
exclusive rights to use the Collateral in any jurisdiction or to the Company's
right to keep and maintain such Collateral in full force and effect, and there
is no proceeding involving said rights pending or, to the best knowledge of the
Company, threatened before any court, judicial body, administrative or
regulatory agency, arbitrator or other governmental authority.

                  (e) The Company shall at all times maintain its books of
account and records relating to the Collateral at its principal place of
business and its Collateral at the locations set forth on Schedule A attached
hereto and may not relocate such books of account and records or tangible
Collateral unless it delivers to the Secured Party at least 30 days prior to
such relocation (i) written notice of such relocation and the new location
thereof (which must be within the United States) and (ii) evidence that
appropriate financing statements and other necessary documents have been filed
and recorded and other steps have been taken to perfect the Security Interest to
create in favor of the Secured Party valid, perfected and continuing first
priority liens in the Collateral.

                  (f) This Agreement creates in favor of the Secured Party a
valid security interest in the Collateral securing the payment and performance
of the Obligations and, upon making the filings described in the immediately
following sentence, a perfected first priority security interest in such
Collateral. Except for the filing of financing statements on Form-1 under the
UCC with the jurisdictions indicated on Sched-

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ule B, attached hereto, no authorization or approval of or filing with or notice
to any governmental authority or regulatory body is required either (i) for the
grant by the Company of, or the effectiveness of, the Security Interest granted
hereby or for the execution, delivery and performance of this Agreement by the
Company or (ii) for the perfection of or exercise by the Secured Party of its
rights and remedies hereunder.

                  (g) On the date of execution of this Agreement, the Company
will deliver to the Secured Party one or more executed UCC financing statements
on Form-1 with respect to the Security Interest for filing with the
jurisdictions indicated on Schedule B, attached hereto and in such other
jurisdictions as may be requested by the Secured Party.

                  (h) The execution, delivery and performance of this Agreement
does not conflict with or cause a breach or default, or an event that with or
without the passage of time or notice, shall constitute a breach or default,
under any agreement to which the Company is a party or by the Company is bound.
No consent (including, without limitation, from stock holders or creditors of
the Company) is required for the Company to enter into and perform its
obligations hereunder.

                  (i) The Company shall at all times maintain the liens and
Security Interest provided for hereunder as valid and perfected first priority
liens and security interests in the Collateral in favor of the Secured Party
until this Agreement and the Security Interest hereunder shall terminated
pursuant to Section 11. The Company hereby agrees to defend the same against any
and all persons. The Company shall safeguard and protect all Collateral for the
account of the Secured Party. At the request of the Secured Party and upon
reasonable notice, the Company will sign and deliver to the Secured Party at any
time or from time to time one or more financing statements pursuant to the UCC
(or any other applicable statute) in form reasonably satisfactory to the Secured
Party and will pay the cost of filing the same in all public offices wherever
filing is, or is deemed by the Secured Party to be, necessary or desirable to
effect the rights and obligations provided for herein. Without limiting the
generality of the foregoing, the Company shall pay all fees, taxes and other
amounts necessary to maintain the Collateral and the Security Interest
hereunder, and the Company shall obtain and furnish to the Secured Party from
time to time, upon demand, such releases and/or subordinations of claims and
liens which may be required to maintain the priority of the Security Interest
hereunder.

                  (j) Except for the sale of Inventory in the ordinary course of
business and the sale of two utility vans that the Company is currently
attempting to sell, the Company will not transfer, pledge, hypothecate,
encumber, license (except for non-exclusive licenses granted by the Company in
the ordinary course of business), sell or otherwise dispose of any of the
Collateral without the prior written consent of the Secured Party.

                  (k) The Company shall keep and preserve its Equipment,
Inventory and other tangible Collateral in good condition, repair and order
(ordinary wear and tear excepted) and shall not operate or locate any such
Collateral (or cause to be operated or located) in any area excluded from
insurance coverage.

                  (l) The Company shall, within ten (10) days of obtaining
knowledge thereof, advise the Secured Party promptly, in sufficient detail, of
any substantial change in the Collateral (other than any change resulting from
the sale of Inventory in the ordinary course of business and the sale of two
utility vans that the Company is currently attempting to sell), and of the
occurrence of any event which would

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have a material adverse effect on the value of the Collateral or on the Secured
Party's security interest therein.

                  (m) The Company shall promptly execute and deliver to the
Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and
assurances and take such further action as the Secured Party may from time to
time request and may in its sole discretion deem necessary to perfect, protect
or enforce its security interest in the Collateral including, without
limitation, the execution and delivery of a separate security agreement with
respect to the Company's intellectual property ("Intellectual Property Security
Agreement") in which the Secured Party has been granted a security interest
hereunder, substantially in a form acceptable to the Secured Party, which
Intellectual Property Security Agreement, other than as stated therein, shall be
subject to all of the terms and conditions hereof.

                  (n) The Company shall permit the Secured Party and its
representatives and agents to inspect the Collateral during normal business
hours and upon one business day's notice, and to make copies of records
pertaining to the Collateral as may be requested by the Secured Party from time
to time.

                  (o) The Company will take all steps reasonably necessary to
diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

                  (p) The Company shall promptly notify the Secured Party in
sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Collateral and of any other
information received by the Company that may materially affect the value of the
Collateral, the Security Interest or the rights and remedies of the Secured
Party hereunder.

                  (q) All information heretofore, herein or hereafter supplied
to the Secured Party by or on behalf of the Company with respect to the
Collateral is accurate and complete in all material respects as of the date
furnished.

         4. Defaults. The following events shall be "Events of Default":

                  (a) The occurrence of an Event of Default (as defined in the
Debentures) under the Debentures;

                  (b) Any representation or warranty of the Company in this
Agreement or in the Intellectual Property Security Agreement, if any, shall
prove to have been incorrect in any material respect when made;

                  (c) The failure by the Company to observe or perform any of
its obligations hereunder or in the Intellectual Property Security Agreement for
ten (10) days after receipt by the Company of notice of such failure from the
Secured Party; and

                  (d) Any breach of, or default under, the Warrants.

         5. Duty To Hold In Trust. Upon the occurrence of any Event of Default
and at any time thereafter, the Company shall, upon receipt by it of any
revenue, income or other sums subject to the Security Interest, whether

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payable pursuant to the Debentures or otherwise, or of any check, draft, note,
trade acceptance or other instrument evidencing an obligation to pay any such
sum, hold the same in trust for the Secured Party and shall forthwith endorse
and transfer any such sums or instruments, or both, to the Secured Party for
application to the satisfaction of the Obligations.

         6. Rights and Remedies Upon Default. Upon occurrence of any Event of
Default and at any time thereafter, the Secured Party shall have the right to
exercise all of the remedies conferred hereunder and under the Debentures, and
the Secured Party shall have all the rights and remedies of a secured party
under the UCC and/or any other applicable law (including the Uniform Commercial
Code of any jurisdiction in which any Collateral is then located). Without
limitation, the Secured Party shall have the following rights and powers:

                  (a) The Secured Party shall have the right to take possession
of the Collateral and, for that purpose and in accordance with applicable law,
enter, with the aid and assistance of any person, any premises where the
Collateral, or any part thereof, is or may be placed and remove the same, and
the Company shall assemble the Collateral and make it available to the Secured
Party at places which the Secured Party shall reasonably select, whether at the
Company's premises or elsewhere, and make available to the Secured Party,
without rent, all of the Company's respective premises and facilities for the
purpose of the Secured Party taking possession of, removing or putting the
Collateral in saleable or disposable form.

                  (b) The Secured Party shall have the right to operate the
business of the Company using the Collateral and shall have the right to assign,
sell, lease or otherwise dispose of and deliver all or any part of the
Collateral, at public or private sale or otherwise, either with or without
special conditions or stipulations, for cash or on credit or for future
delivery, in such parcel or parcels and at such time or times and at such place
or places, and upon such terms and conditions as the Secured Party may deem
commercially reasonable, all without (except as shall be required by applicable
statute and cannot be waived) advertisement or demand upon or notice to the
Company or right of redemption of the Company, which are hereby expressly
waived. Upon each such sale, lease, assignment or other transfer of Collateral,
the Secured Party may, unless prohibited by applicable law which cannot be
waived, purchase all or any part of the Collateral being sold, free from and
discharged of all trusts, claims, right of redemption and equities of the
Company, which are hereby waived and released.

                  (c) The Company hereby irrevocably appoints the Secured Party
as the Company's attorney-in-fact, with full authority in the place and stead of
the Company and in the name of the Company, from time to time in the Secured
Party's discretion, to file one or more financing or continuation statements and
amendments thereto, relative to any of the Collateral without the signature of
the Company where permitted by law.

         7. Applications of Proceeds. The proceeds of any such sale, lease or
other disposition of the Collateral hereunder shall be applied first, to the
expenses of retaking, holding, storing, processing and preparing for sale,
selling, and the like (including, without limitation, any taxes, fees and other
costs incurred in connection therewith) of the Collateral, to the reasonable
attorneys' fees and expenses incurred by the Secured Party in enforcing its
rights hereunder and in connection with collecting, storing and disposing of the
Collateral, and then to satisfaction of the Obligations, and to the payment of
any other amounts required by applicable law, after which the Secured Party
shall pay to the Company any surplus proceeds. If, upon the sale, license or
other disposition of the Collateral, the proceeds thereof are insufficient to
pay all amounts to which the Secured Party is legally entitled, the Company will
be liable for the deficiency, together with interest thereon, at the rate of 15%
per annum (the "Default Rate"), and the reasonable fees of any attorneys
employed by the Secured Party to collect such deficiency. To the extent
permitted by applicable law, the Company waives all claims, damages and de-

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mands against the Secured Party arising out of the repossession, removal,
retention or sale of the Collateral, unless due to the gross negligence or
willful misconduct of the Secured Party.

         8. Costs and Expenses. The Company agrees to pay all out-of-pocket
fees, costs and expenses incurred in connection with any filing required
hereunder, including without limitation, any financing statements, continuation
statements, partial releases and/or termination statements related thereto or
any expenses of any searches reasonably required by the Secured Party. The
Company shall also pay all other claims and charges which in the reasonable
opinion of the Secured Party might prejudice, imperil or otherwise affect the
Collateral or the Security Interest therein except to the extent such claims and
charges are being contested in good faith and adequate reserves therefor are
maintained. The Company will also, upon demand, pay to the Secured Party the
amount of any and all reasonable expenses, including the reasonable fees and
expenses of its counsel and of any experts and agents, which the Secured Party
may incur in connection with (i) the enforcement of this Agreement, (ii) the
custody or preservation of, or the sale of, collection from, or other
realization upon, any of the Collateral, or (iii) the exercise or enforcement of
any of the rights of the Secured Party under the Debentures. Until so paid, any
fees payable hereunder shall be added to the principal amount of the Debentures
and shall bear interest at the Default Rate.

         9. Responsibility for Collateral. The Company assumes all liabilities
and responsibility in connection with all Collateral, and the obligations of the
Company hereunder or under the Debentures and the Warrants shall in no way be
affected or diminished by reason of the loss, destruction, damage or theft of
any of the Collateral or its unavailability for any reason.

         10. Security Interest Absolute. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Debentures, the Warrants or any agreement entered into in connection with
the foregoing, or any portion hereof or thereof; (b) any change in the time,
manner or place of payment or performance of, or in any other term of, all or
any of the Obligations, or any other amendment or waiver of or any consent to
any departure from the Debentures, the Warrants or any other agreement entered
into in connection with the foregoing; (c) any exchange, release or
nonperfection of any of the Collateral, or any release or amendment or waiver of
or consent to departure from any other collateral for, or any guaranty, or any
other security, for all or any of the Obligations; (d) any action by the Secured
Party to obtain, adjust, settle and cancel in its sole discretion any insurance
claims or matters made or arising in connection with the Collateral; or (e) any
other circumstance which might otherwise constitute any legal or equitable
defense available to the Company, or a discharge of all or any part of the
Security Interest granted hereby. Until the Obligations shall have been paid and
performed in full, the rights of the Secured Party shall continue even if the
Obligations are barred for any reason, including, without limitation, the
running of the statute of limitations or bankruptcy. The Company expressly
waives presentment, protest, notice of protest, demand, notice of nonpayment and
demand for performance. In the event that at any time any transfer of any
Collateral or any payment received by the Secured Party hereunder shall be
deemed by final order of a court of competent jurisdiction to have been a
voidable preference or fraudulent conveyance under the bankruptcy or insolvency
laws of the United States, or shall be deemed to be otherwise due to any party
other than the Secured Party, then, in any such event, the Company's obligations
hereunder shall survive cancellation of this Agreement, and shall not be
discharged or satisfied by any prior payment thereof and/or cancellation of this
Agreement, but shall remain a valid and binding obligation enforceable in
accordance with the terms and provisions hereof. The Company waives all right to
require the Secured Party to proceed against any other person or to apply any
Collateral which the Secured Party may hold at any time, or to marshal assets,
or to pursue any other remedy. The Company waives any defense arising by reason
of the application of the statute of limitations to any obligation secured
hereby.

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         11. Term of Agreement. This Agreement and the Security Interest shall
terminate on the date on which all payments under the Debentures have been made
in full and all other Obligations have been paid or discharged. Upon such
termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

         12. Power of Attorney; Further Assurances.

                  (a) The Company authorizes the Secured Party, and does hereby
make, constitute and appoint it, and its respective officers, agents, successors
or assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Collateral that may come into possession of the Secured Party;
(ii) to sign and endorse any UCC financing statement or any invoice, freight or
express bill, bill of lading, storage or warehouse receipts, drafts against
debtors, assignments, verifications and notices in connection with accounts, and
other documents relating to the Collateral; (iii) to pay or discharge taxes,
liens, security interests or other encumbrances at any time levied or placed on
or threatened against the Collateral; (iv) to demand, collect, receipt for,
compromise, settle and sue for monies due in respect of the Collateral; and (v)
generally, to do, at the option of the Secured Party, and at the Company's
expense, at any time, or from time to time, all acts and things which the
Secured Party deems necessary to protect, preserve and realize upon the
Collateral and the Security Interest granted therein in order to effect the
intent of this Agreement, the Debentures and the Warrants, all as fully and
effectually as the Company might or could do; and the Company hereby ratifies
all that said attorney shall lawfully do or cause to be done by virtue hereof.
This power of attorney is coupled with an interest and shall be irrevocable for
the term of this Agreement and thereafter as long as any of the Obligations
shall be outstanding.

                  (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the proper filing
and recording places in any jurisdiction, including, without limitation, the
jurisdictions indicated on Schedule B, attached hereto, all such instruments,
and take all such action as may reasonably be deemed necessary or advisable, or
as reasonably requested by the Secured Party, to perfect the Security Interest
granted hereunder and otherwise to carry out the intent and purposes of this
Agreement, or for assuring and confirming to the Secured Party the grant or
perfection of a security interest in all the Collateral.

         13. Notices. All notices, requests, demands and other communications
hereunder shall be in writing, with copies to all the other parties hereto, and
shall be deemed to have been duly given when (i) if delivered by hand, upon
receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof,
(iii) if sent by nationally recognized overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

         If to the Company:          Vital Living Products, Inc.
                                     5001 Smith Farm Road
                                     Matthews, NC 28104
                                     Attention:
                                     Facsimile:

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         With copies to:
                                     Kennedy Covington Lobdell & Hickman, L.L.P.
                                     Bank of America Corporate Center 42nd Floor
                                     100 North Tryon Street
                                     Charlotte, NC  28202-4006
                                     Attention: J. Norfleet Pruden III, Esq.
                                     Facsimile:  (704) 331-7598

         If to the Secured Party:    AJW Partners, LLC
                                     155 First Street, Suite B
                                     Mineola, NY 11501
                                     Attention: Corey S. Ribotsky
                                     Facsimile: (516) 739-7115

                                              and

                                     New Millennium Capital Partners II, LLC
                                     155 First Street, Suite B
                                     Mineola, NY 11501
                                     Attention: Glenn A. Arbeitman
                                     Facsimile: (516) 739-7115

                                              and

                                     Equilibrium Equity, LLC
                                     155 First Street, Suite B
                                     Mineola, New York  11501
                                     Attention: Glenn A. Arbeitman
                                     Facsimile:        516-739-7115

         With copies to:             Ballard Spahr Andrews & Ingersoll, LLP
                                     1735 Market Street
                                     51st Floor
                                     Philadelphia, PA 19103
                                     Attention: Gerald J. Guarcini, Esq.
                                     Facsimile: (215) 864-8999

         14. Other Security. To the extent that the Obligations are now or
hereafter secured by property other than the Collateral or by the guarantee,
endorsement or property of any other person, firm, corporation or other entity,
then the Secured Party shall have the right, in its sole discretion, to pursue,
relinquish, subordinate, modify or take any other action with respect thereto,
without in any way modifying or affecting any of the Secured Party's rights and
remedies hereunder.

         15. Miscellaneous.

                  (a) No course of dealing between the Company and the Secured
Party, nor any failure to exercise, nor any delay in exercising, on the part of
the Secured Party, any right, power or privilege

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hereunder or under the Debentures shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
thereunder preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.

                  (b) All of the rights and remedies of the Secured Party with
respect to the Collateral, whether established hereby or by the Debentures or by
any other agreements, instruments or documents or by law shall be cumulative and
may be exercised singly or concurrently.

                  (c) This Agreement constitutes the entire agreement of the
parties with respect to the subject matter hereof and is intended to supersede
all prior negotiations, understandings and agreements with respect thereto.
Except as specifically set forth in this Agreement, no provision of this
Agreement may be modified or amended except by a written agreement specifically
referring to this Agreement and signed by the parties hereto.

                  (d) In the event that any provision of this Agreement is held
to be invalid, prohibited or unenforceable in any jurisdiction for any reason,
unless such provision is narrowed by judicial construction, this Agreement
shall, as to such jurisdiction, be construed as if such invalid, prohibited or
unenforceable provision had been more narrowly drawn so as not to be invalid,
prohibited or unenforceable. If, notwithstanding the foregoing, any provision of
this Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

                  (e) No waiver of any breach or default or any right under this
Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any
subsequent breach or default or right, whether of the same or similar nature or
otherwise.

                  (f) This Agreement shall be binding upon and inure to the
benefit of each party hereto and its successors and assigns.

                  (g) Each party shall take such further action and execute and
deliver such further documents as may be necessary or appropriate in order to
carry out the provisions and purposes of this Agreement.

                  (h) This Agreement shall be construed in accordance with the
laws of the State of New York, except to the extent the validity, perfection or
enforcement of a security interest hereunder in respect of any particular
Collateral which are governed by a jurisdiction other than the State of New York
in which case such law shall govern. Each of the parties hereto irrevocably
submit to the exclusive jurisdiction of any New York State or United States
Federal court sitting in Manhattan county over any action or proceeding arising
out of or relating to this Agreement, and the parties hereto hereby irrevocably
agree that all claims in respect of such action or proceeding may be heard and
determined in such New York State or Federal court. The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. The parties hereto further waive any objection to venue
in the State of New York and any objection to an action or proceeding in the
State of New York on the basis of forum non convenient.

                                       34
<PAGE>   11

                  (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING
OF ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT
MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR
EACH PARTY TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL
CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY
FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL
COUNSEL, AND THAT SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO
A JURY TRIAL FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING
THAT, NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED
EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE
EVENT OF A LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A
TRIAL BY THE COURT.

                  (j) This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

                  [Remainder of Page Intentionally Left Blank]

                                       35
<PAGE>   12

                  IN WITNESS WHEREOF, the parties hereto have caused this
Security Agreement to be duly executed on the day and year first above written.

                                    VITAL LIVING PRODUCTS, INC.

                                    /s/ Donald R. Podrebarac
                                    -------------------------------------
                                    Donald R. Podrebarac
                                    President and Chief Executive Officer

                                    AJW PARTNERS, LLC
                                    By:  SMS Group, LLC

                                    /s/ Corey S. Ribotsky
                                    -------------------------------------
                                    Corey R. Ribotsky
                                    Manager

                                    NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                    By:  First Street Manager II, LLC

                                    /s/ Glenn A. Arbeitman
                                    -------------------------------------
                                    Glenn A. Arbeitman
                                    Manager

                                    EQUILIBRIUM EQUITY, LLC

                                    /s/ Glenn A. Arbeitman
                                    -------------------------------------
                                    Glenn A. Arbeitman
                                    Manager
<PAGE>   13

                                   SCHEDULE A

Principal Place of Business of the Company:

5001 Smith Farm Road
Matthews, NC 28104

Locations Where Collateral is Located or Stored:

5001 Smith Farm Road
Matthews, NC 28104

List of subsidiaries of the Company:

None

Collateral Subject to Liens:

GMAC has liens on two utility vans owned by the Company.
<PAGE>   14

                                   SCHEDULE B

Jurisdictions:

Delaware Secretary of State
North Carolina Secretary of State
Mecklenburg County Register of Deeds<PAGE>   1
                                                                    EXHIBIT 4.14

                          [FORM OF FIXED RATE SECURITY]

REGISTERED                                                 PRINCIPAL AMOUNT
NO._________                                               $___________________
CUSIP NO._____________

                              IRT PROPERTY COMPANY

           MEDIUM-TERM NOTE DUE NINE MONTHS OR MORE FROM DATE OF ISSUE
                          UNCONDITIONALLY GUARANTEED BY
                 IRT PARTNERS, L.P., IRT CAPITAL CORPORATION II,
         IRT MANAGEMENT COMPANY AND IRT ALABAMA, INC. (THE "GUARANTORS")

         [Unless this Security is presented by an authorized representative of
The Depository Trust Company, a New York corporation, 55 Water Street, New York,
New York ("DTC"), to IRT Property Company, a Georgia corporation (herein called
the "Company," which term includes any successor person under the Indenture
referred to on the reverse hereof), or its agent for registration of transfer,
exchange or payment, and any Security issued is registered in the name of Cede &
Co., or in such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein.

         Unless and until it is exchanged in whole or in part for securities in
certificated form, this Security may not be transferred except as a whole by DTC
to a nominee of DTC or by a nominee of DTC to DTC or another nominee of DTC or
by DTC or any such nominee to a successor of DTC or a nominee of such successor
of DTC.]1

         [If applicable, this Security will contain information required by U.S.
Federal Income Tax "Original Issue Discount" rules, as that term is defined in
the Internal Revenue Code of 1986, as amended.]

<TABLE>
         <S>                                          <C>
         Original Issue Date:                         Initial Redemption Date:
         Stated Maturity Date:                        Initial Redemption Price:
         Interest Rate:                               Initial Redemption Percentage:
         Interest Payment Dates:                      Annual Redemption Percentage Reduction:
         Regular Record Dates:                        Redemption Limitation Date:
         Other/Additional Provisions:                 Indexed Note:  Yes__ No__
         Optional Redemption:  Yes__ No__             Amortizing Note:  Yes__ No__
                                                      (Constant - Yield Method)

         Original Issue Discount Note:  Yes __ No __

         Issue Price (percentage of principal):       Specified Currency:
         Yield to Maturity (%):                       Sinking Fund:  Yes__ No__
         Initial Accrual Period OID (%):              Option to Elect Repayment:  Yes__ No__
                                                      Optional Repayment Dates:  Yes: __ No __
</TABLE>

         IRT PROPERTY COMPANY, a corporation duly organized and existing under
the laws of the State of Georgia (hereinafter called the "Company", which term
includes any successor corporation under the Indenture hereinafter referred to),
for value received, hereby promises to pay to ________________, or registered
assigns, the principal sum of ___________________ Dollars ($______________) on
the Stated Maturity Date specified above

--------------------
(1) Insert if Global Security
<PAGE>   2

(except to the extent redeemed or repaid prior to such date) and to pay interest
thereon, if any, from the Original Issue Date specified above or from the most
recent Interest Payment Date to which interest has been paid or duly provided
for, on the principal amount hereof at the Interest Rate per annum specified
above (computed on the basis of a 360-day year of twelve 30-day months),
semi-annually in arrears on each Interest Payment Date commencing with the
Interest Payment Date next succeeding the Original Issue Date specified above,
and at Maturity until the principal hereof is paid or duly provided for. Unless
this Security is a Security which has been issued upon transfer of, in exchange
for, or in replacement of, a Predecessor Security, interest on this Security
shall accrue from the Original Issue Date indicated above. If this Security has
been issued upon transfer of, exchange for, or in replacement of, a Predecessor
Security, interest on this Security shall accrue from the last Interest Payment
Date to which interest was paid on such Predecessor Security or, if no interest
was paid on such Predecessor Security, from the Original Issue Date indicated
above. The first payment of interest on a Security originally issued and dated
between a Regular Record Date specified above and an Interest Payment Date will
be due and payable on the Interest Payment Date following the next succeeding
Regular Record Date to the registered owner on such next succeeding Regular
Record Date. Subject to certain exceptions provided in the Indenture referred to
herein below, the interest so payable on any Interest Payment Date will be paid
to the Person in whose name this Security is registered at the close of business
on the Regular Record Date (whether or not a Business Day) next preceding such
Interest Payment Date, and interest payable upon Maturity will be paid to the
person to whom principal is payable.

         Notwithstanding the foregoing, if an Addendum is attached hereto or
"Other/Additional Terms" apply to this Security as specified above, this
Security shall be subject to the terms set forth in such Addendum or such
"Other/Additional Terms."

         The principal of, premium, if any, and interest, if any, on, this
Security is payable by the Company in the Specified Currency specified above.

         Any interest not punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice of
which shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.

         [Until this Security is paid in full or payment therefor in full is
duly provided for, the Company will at all times maintain a Paying Agent (which
Paying Agent may be the Trustee) in The Borough of Manhattan in The City of New
York. The Company has initially appointed SunTrust Bank as the Paying Agent at
its corporate trust offices at the Harris Trust Company of New York, Wall Street
Plaza, 88 Pine Street, 19th Floor, New York, New York 10005.]

         If this Security is a Global Security: Payments of principal, premium,
if any, and interest on this Security will be made to DTC or its nominee, as
Holder of this Security, by wire transfer of immediately available funds.

         If this Security is not a Global Security: Payment of interest on this
Security (other than payments of interest at Maturity) will be made by check
mailed to the Person entitled thereto at such Person's last address as it
appears in the Security Register or, in the case of a Holder of $10,000,000 or
more in aggregate principal amount of Securities of this series whether having
identical or different terms or provisions, by wire transfer of immediately
available funds to such account as may have been designated by such Holder. Any
such designation for wire transfer purposes shall be made by filing the
appropriate information with the Paying Agent at its corporate trust office not
later than 15 calendar days prior to the applicable Interest Payment Date and,
unless revoked by written notice to the Paying Agent received by the Paying
Agent on or prior to the Regular Record Date immediately preceding the
applicable Interest Payment Date, shall remain in effect with respect to any
further payments with respect to this Security payable to such Holder. Payment
of principal of, premium, if any, and interest, if any, on this Security at
Maturity will be made in immediately available funds, against presentation and
surrender of this Security at the office or agency of the Company maintained for
that purpose in The Borough of Manhattan, The

                                        2
<PAGE>   3

City of New York, which at the date hereof is the corporate trust office of the
Trustee located at the Harris Trust Company of New York, Wall Street Plaza, 88
Pine Street, 19th Floor, New York, New York 10005, and in the case of any
repayment on an optional repayment date, upon submission of a duly completed
election form and as required by the provisions relating to repayment of the
securities at the option of the Holder.

           No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         Any payment on this Security due on any day which is not a Business Day
need not be made on such day, but may be made on the next succeeding Business
Day with the same force and effect as if made on the due date and no additional
interest shall accrue on the amount so payable for the period from and after
such date. For purposes of this Security, "Business Day" means any day that is
not a Saturday or Sunday and that is not a legal holiday or a day on which
banking institutions are generally authorized or obligated by law, regulation or
executive order to close in the City of New York, New York or any other place
where the principal of, premium, if any, and interest on, the Security is
payable.

         Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

         Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature or its duly
authorized agent referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

                                       3
<PAGE>   4

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:
                                            IRT PROPERTY COMPANY
[SEAL]

                                            By:
                                                --------------------------------
                                                Name:   James G. Levy
                                                Title:  Chief Financial Officer

ATTEST:

----------------------------
W. Benjamin Jones, III
Secretary

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the
series designated therein referred to
in the within-mentioned Indenture.

SUNTRUST BANK
   as Trustee

By:
    ------------------------------------------
    Authorized Signature

OR

    ------------------------------------------
    as Authenticating Agent for the Trustee

By:
   -------------------------------------------
    Authorized Signature

                                       4
<PAGE>   5

                                    GUARANTY

         Each of IRT Partners, L.P., a Georgia limited partnership, IRT Capital
Corporation II, a Georgia corporation, IRT Management Company, a Georgia
corporation, and IRT Alabama, Inc., an Alabama corporation (the "Guarantors,"
which term includes any successors under the Indenture (the "Indenture")
referred to in the Security upon which this Guaranty is endorsed), has
unconditionally guaranteed to the Trustee and the Holder of the Security upon
which this Guaranty is endorsed full and prompt payment and performance, when
due, whether at maturity, by acceleration or otherwise, of (a) payment and
performance obligations of IRT Property Company, a Georgia corporation (the
"Company"), (i) under the Indenture with respect to the Securities, (ii) under
the Securities and (iii) as a result of the issuance of the Securities and (b)
the obligation to pay an amount equal to the amount of any and all damages which
the Trustee and the Holders, or any part of them, may suffer by reason of a
breach by either the Company or any other obligor of any obligation, covenant or
undertaking under (x) the Indenture with respect to the Securities or (y) the
Securities (collectively, the "Obligations"). Each Obligation shall rank pari
passu with each other Obligation.

         This Guaranty shall not be valid or obligatory for any purpose until
the certificate of authentication of the Security upon which this Guaranty is
endorsed shall have been manually executed by or on behalf of the Trustee under
the Indenture.

         All terms used in this Guaranty which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

         This Guaranty shall be governed by and construed in accordance with the
laws of the State of Georgia, except to the extent that the Trust Indenture Act
shall be applicable.

                                       5
<PAGE>   6

         IN WITNESS WHEREOF, the Guarantors have caused this Guaranty to be duly
executed.

Date:
     -----------

                           IRT PARTNERS, L.P.

                           By:   IRT PROPERTY COMPANY
                                   as General Partner

                           By:
                                ------------------------------------------------
                                Name:  Thomas H. McAuley
                                Title: President and Chief Executive Officer

                           IRT CAPITAL CORPORATION II

                           By:
                                ------------------------------------------------
                                Name:  Thomas H. McAuley
                                Title: President

                           IRT MANAGEMENT COMPANY

                           By:
                                ------------------------------------------------
                                Name:  Thomas H. McAuley
                                Title: President

                           IRT ALABAMA, INC.

                           By:
                                ------------------------------------------------
                                Name:  Thomas H. McAuley
                                Title: President

                                       6
<PAGE>   7

                                [Reverse of Note]

                              IRT PROPERTY COMPANY

                           MEDIUM-TERM FIXED RATE NOTE

                 DUE NINE MONTHS OR MORE FROM THE DATE OF ISSUE

GENERAL

         This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture dated as of September 9, 1998, as amended or
supplemented from time to time (herein called the "Indenture"), among the
Company, the Guarantors and SunTrust Bank, as Trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto, reference is made for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Guarantors, the Trustee and the Holders of the
Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered and guaranteed. The acceptance of this Security
shall be deemed to constitute the consent and agreement by the Holder hereof to
all of the terms and provisions of the Indenture. This Security is one of the
series of the Securities designated above, of the Company, which series is
limited to an aggregate principal amount of $100,000,000 or the equivalent
thereof in one or more foreign or composite currencies. The Securities of this
series may mature at different times, bear interest, if any, at different rates,
be redeemable at different times or not at all, be repayable at the option of
the Holder at different times or not at all, be issued at an original issue
discount and be denominated in different currencies.

         The Securities are issuable only in registered form without coupons and
will be either (a) book-entry securities represented by one or more global
securities recorded in the book-entry system maintained by the Depository or (b)
certificated securities issued to and registered in the names of, the beneficial
owners or their nominees.

ADDITIONAL COVENANTS

         In addition to the covenants and agreements contained in the Indenture,
the Company shall be subject to the following additional covenants with respect
to the Securities.

         The Company will not, and will not permit any subsidiary to, incur any
Debt (as defined below) if, immediately after giving effect to the incurrence of
such additional Debt and the application of the proceeds thereof, the aggregate
principal amount of all of the outstanding Debt of the Company and the
Subsidiaries on a consolidated basis determined in accordance with GAAP is
greater than 60% of the sum of (without duplication) (i) the Total Assets (as
defined below) of the Company and the Subsidiaries as of the end of the calendar
quarter covered our Annual Report on Form 10-K or Quarterly Report on Form 10-Q,
as the case may be, most recently filed with the SEC (or, if such filing is not
permitted under the Securities Exchange Act of 1934, as amended, with SunTrust
Bank) prior to the incurrence of such additional Debt, and (ii) the purchase
price of any real estate assets or mortgage receivable acquired, and the amount
of any securities offering proceeds received (to the extent that such proceeds
were not used to acquire real estate assets or mortgagers receivable or used to
reduce Debt), by the Company or any Subsidiary since the end of such calendar
quarter, including those proceeds obtained in connection with the incurrence of
such additional Debt.

         In addition to the foregoing limitation on the incurrence of Debt, the
Company will not, and will not permit any Subsidiary to, incur any Debt secured
by any Encumbrance (as defined below) upon any of the Company's or any
Subsidiary's property if, immediately after giving effect to the incurrence of
such additional Debt and the application of the proceeds thereof, the aggregate
principal amount of all of the Company's and its Subsidiaries' outstanding Debt
on a consolidated basis which is secured by any Encumbrance on property of the
Company or any Subsidiary is greater than 40% of the sum of (without
duplication) (i) the Total Assets of the Company and the

                                       7
<PAGE>   8

Subsidiaries as of the end of the calendar quarter covered in our Annual Report
on Form 10-K or Quarterly Report on Form 10-Q, as the case my be, most recently
filed with the SEC (or, if such filing is not permitted under the Securities
Exchange Act of 1934, as amended, with SunTrust Bank) prior to the incurrence of
such additional Debt and (ii) the purchase price of any real estate assets or
mortgages receivable acquired, and the amount of any securities offering
proceeds received (to the extent that such proceeds were not used to acquire
real estate assets or mortgages receivable or used to reduce Debt), by the
Company or any Subsidiary since the end of such calendar quarter, including
those proceeds obtained in connection with the incurrence of such additional
Debt.

         The Company and its Subsidiaries may not at any time own Total
Unencumbered Assets (as defined below) equal to less than 150% of the aggregate
outstanding principal amount of the Unsecured Debt of the Company and its
Subsidiaries on a consolidated basis.

         In addition to the foregoing limitations on the incurrence of Debt, the
Company will not, and will not permit any Subsidiary to, incur any Debt if the
ratio of Consolidated Income Available for Debt Service (as defined below) to
the Annual Service Charge (as defined below) for the four consecutive fiscal
quarters most recently ended prior to the date on which such additional Debt is
to be incurred shall have been less than 1.5:1 on a pro forma basis after giving
effect thereto and to the application of the proceeds therefrom, and calculated
on the assumption that (i) such Debt and any other Debt incurred by the Company
and its Subsidiaries since the first day of such four-quarter period and the
application of the proceeds therefrom, including to refinance other Debt, had
occurred at the beginning of such period; (ii) the repayment or retirement of
any other Debt by the Company and its Subsidiaries since the first day of such
four-quarter period had been repaid or retired at the beginning of such period
(except that, in making such computation, the amount of Debt under any revolving
credit facility shall be computed based upon the average daily balance of such
debt during such period); (iii) in the case of Acquired Debt (as defined below)
or Debt incurred in connection with any acquisition since the first day of such
four-quarter period, the related acquisition had occurred as of the first day of
such period with the appropriate adjustments with respect to such acquisition
being included in such pro forma calculation; and (iv) in the case of any
acquisition or disposition by the Company or its Subsidiaries of any asset or
group of assets since the first day of such four-quarter period, whether by
merger, stock purchase or sale, or asset purchase or sale, such acquisition or
disposition or any related repayment of Debt had occurred as of the first day of
such period with the appropriate adjustments with respect to such acquisition or
disposition being included in such pro forma calculation.

         As used herein, and in the Indenture:

                  "Acquired Debt" means Debt of a person (i) existing at the
         time such Person becomes a Subsidiary or (ii) assumed in connection
         with the acquisition of assets from such person, in each case, other
         than Debt incurred in connection with, or in contemplation of, such
         person becoming a Subsidiary or such acquisition. Acquired Debt shall
         be deemed to be incurred on the date of the related acquisition of
         assets from any person or the date the acquired Person becomes a
         Subsidiary.

                  "Annual Service Charge," for any period, means the maximum
         amount which is payable during such period for interest on, and the
         amortization during such period of any original issue discount of, Debt
         of the Company and its Subsidiaries and the amount of dividends which
         are payable during such period in respect of any Disqualified Stock.

                  "Capital Stock" means, with respect to any Person, any capital
         stock (including preferred stock), shares, interests, participations or
         other ownership interests (however designated) of such Person and any
         rights (other than debt securities convertible into or exchangeable for
         corporate stock), warrants or options to purchase any thereof.

                  "Consolidated Income Available for Debt Service," for any
         period, means Earnings from Operations (as defined below) of the
         Company and its Subsidiaries plus amounts which have been deducted, and
         minus amounts which have been added, for the following (without
         duplication): (i) interest on Debt of the Company and its Subsidiaries,
         (ii) provision for taxes of the Company and its Subsidiaries based on
         income, (iii) amortization of debt discount, (iv) provisions for gains
         and losses on properties and

                                       8
<PAGE>   9

         property depreciation and amortization, (v) the effect of any noncash
         charge resulting from a change in accounting principles in determining
         Earnings from Operations for such period and (vi) amortization of
         deferred charges.

                  "Debt" of the Company or any Subsidiary means any indebtedness
         of the Company or any Subsidiary, whether or not contingent, in respect
         of (i) money borrowed or evidenced by bonds, notes, debentures or
         similar instruments, (ii) indebtedness for borrowed money secured by
         any Encumbrance existing on property owned by the Company or any
         Subsidiary, (iii) the reimbursement obligations, contingent or
         otherwise, in connection with any letters of credit actually issued or
         amounts representing the balance deferred and unpaid of the purchase
         price of any property or services, except any such balance that
         constitutes an accrued expense or trade payable, or all conditional
         sale obligations or obligations under any title retention agreement,
         [(iv) the principal amount of all obligations of the Company or any
         Subsidiary with respect to redemption, repayment or other repurchase of
         any Disqualified Stock] or (v) any lease of property by the Company or
         any Subsidiary as lessee which is reflected on the Company's
         Consolidated Balance Sheet as a capitalized lease in accordance with
         GAAP, to the extent, in the case of items of indebtedness under (i)
         through (iii) above, that any such items (other than letters of credit)
         would appear as a liability on the Company's Consolidated Balance Sheet
         in accordance with GAAP, and also includes, to the extent not otherwise
         included, any obligation by the Company or any Subsidiary to be liable
         for, or to pay, as obligor, guarantor or otherwise (other than for
         purposes of collection in the ordinary course of business), Debt of
         another Person (other than the Company or any Subsidiary) (it being
         understood that Debt shall be deemed to be incurred by the Company or
         any Subsidiary whenever the Company or such Subsidiary shall create,
         assume, guarantee or otherwise become liable in respect thereof).

                  "Disqualified Stock" means, with respect to any Person, any
         Capital Stock of such Person which by the terms of such Capital Stock
         (or by the terms of any security into which it is convertible or for
         which it is exchangeable or exercisable), upon the happening of any
         event or otherwise (i) matures or is mandatorily redeemable, pursuant
         to a sinking fund obligation or otherwise (other than Capital Stock
         which is redeemable solely in exchange for common stock), (ii) is
         convertible into or exchangeable or exercisable for Debt or
         Disqualified Stock or (iii) is redeemable at the option of the holder
         thereof, in whole or in part (other than Capital Stock which is
         redeemable solely in exchange for common stock), in each case on or
         prior to the stated maturity of the Notes.

                  "Earnings from Operations," for any period, means net earnings
         excluding gains and losses on sales of investments, extraordinary
         items, and property valuation losses, net as reflected in the financial
         statements of the Company and its Subsidiaries for such period
         determined on a consolidated basis in accordance with GAAP.

                  "Encumbrance" means any mortgage, lien, charge, pledge or
         security interest of any kind.

                  "Executive Group" means, collectively, those individuals
         holding the offices of Chairman, Vice Chairman, President, Chief
         Executive Officer, Chief Operating Officer or any Vice President of the
         Company.

                  "Subsidiary" means (i) a corporation, partnership, joint
         venture, limited liability company or other person the majority of the
         shares, if any, of the non-voting capital stock or other equivalent
         ownership interests of which (except directors' qualifying shares) are
         at the time directly or indirectly owned by the Company and/or any
         other Subsidiary or Subsidiaries, and the majority of the shares of the
         voting capital stock or other equivalent ownership interests of which
         (except directors' qualifying shares) are at the time directly or
         indirectly owned by the Company, any other Subsidiary or Subsidiaries,
         and/or one or more individuals of the Executive Group (or, in the event
         of death or disability of any of such individuals, his/her respective
         legal representatives, or such individuals' successors in office as
         officers of the Company) and (ii) any person the accounts of which are
         consolidated with the accounts of the Company.

                                       9
<PAGE>   10

                  "Total Assets," as of any date, means the sum of (i) the
         Undepreciated Real Estate Assets and (ii) all other assets of the
         Company and its Subsidiaries determined in accordance with GAAP (but
         excluding accounts receivable and intangibles.)

                  "Total Unencumbered Assets" means the sum of (i) the
         Undepreciated Real Estate Assets not subject to an Encumbrance for
         borrowed money and (ii) all other assets of the Company and its
         Subsidiaries not subject to an Encumbrance for borrowed money
         determined in accordance with GAAP (but excluding accounts receivable
         and intangibles).

                  "Undepreciated Real Estate Assets," as of any date, means the
         cost (original cost plus capital improvements) of real estate assets of
         the Company and its Subsidiaries on such date, before depreciation and
         amortization determined on a consolidated basis in accordance with
         GAAP.

                  "Unsecured Debt" means Debt which is not secured by any
Encumbrance upon any of the properties of the Company or any Subsidiary.

EVENTS OF DEFAULT

         If an Event of Default, as defined in the Indenture, with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

MODIFICATION AND WAIVERS; OBLIGATION OF THE COMPANY ABSOLUTE

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the Guarantors and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company, the
Guarantors and the Trustee with the consent of the Holders of a majority in
principal amount of the Securities at the time Outstanding of all series to be
affected, acting together as a class. The Indenture also contains provisions
permitting the Holders of a majority in principal amount of the Securities of
all series at the time Outstanding affected by certain provisions of the
Indenture, acting together as a class, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company and Guarantors
with those provisions of the Indenture. Certain past defaults under the
Indenture and their consequences may be waived under the Indenture by the
Holders of a majority in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such series.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of, premium, if any, and
interest on, this Security at the times, place and rate, and in the coin or
currency, herein prescribed, except that in the event the Company deposits money
as provided in Section 401 of the Indenture, such payments will be made only
from proceeds of such money.

DEFEASANCE AND COVENANT DEFEASANCE

         The Indenture contains provisions for defeasance at any time of (a) the
entire indebtedness on this Security and (b) certain restrictive covenants and
certain Events of Default, upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Security.

REDEMPTION

         If so provided on the face hereof, the Company may at its option redeem
this Security in whole or from time to time in part in increments of $1,000
(provided that any remaining principal amount of this Security shall not

                                       10
<PAGE>   11

be less than the minimum authorized denomination hereof) on or after the date
designated as the Initial Redemption Date on the face hereof at 100% of the
unpaid principal amount hereof or the portion thereof redeemed multiplied by a
percentage (the "Redemption Percentage"), together with accrued interest, if
any, to the Redemption Date. The Redemption Percentage shall initially be equal
to the Initial Redemption Percentage specified on the face hereof and shall
decline at each anniversary of the Initial Redemption Date by the amount of the
Annual Redemption Percentage Reduction specified on the face hereof, until the
Redemption Percentage is equal to 100%. The Company may exercise such option by
causing the Trustee to mail a notice of such redemption at least 30 but not more
than 60 days prior to the applicable Redemption Date to each Holder of the
Securities of this series to be redeemed. In the event of redemption of this
Security in part only, the Company shall issue a new Security or Securities for
the unredeemed portion hereof in the name of the Holder hereof upon the
cancellation hereof. If less than all of the Securities of this series with like
tenor and terms are to be redeemed, the Securities to be redeemed shall be
selected by the Trustee by such method as the Trustee shall deem fair and
appropriate.

SINKING FUND

         Unless otherwise specified on the face hereof, this Security will not
be entitled to any sinking fund.

REPAYMENT AT HOLDER'S OPTION

         If so provided on the face hereof, this Security will be repayable
prior to the Stated Maturity Date at the option of the Holder, in whole or in
part and in increments of $1,000 (provided that any remaining principal amount
of this Security surrendered for partial repayment shall not be less than the
minimum authorized denomination hereof), on or after the date designated as an
Optional Repayment Date on the face hereof at 100% of the principal amount to be
repaid, plus accrued unpaid interest, if any, to the Repayment Date. In order
for this Security to be repaid, the Trustee must receive at the applicable
address of the Trustee set forth below or at such other place or places of which
the Company shall from time to time notify the Holder of the within Security, at
least 30 but not more than 60 calendar days prior to an Optional Repayment Date,
either (i) this Security, with the form below entitled "Option to Elect
Repayment" duly completed, or (ii) a telegram, telex, facsimile transmission, or
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or a trust company
in the United States of America setting forth (a) the name, address and
telephone number of the Holder of this Security, (b) the principal amount of
this Security and the amount of this Security to be repaid, (c) a statement that
the option to elect repayment is being exercised thereby, and (d) a guarantee
stating that the Trustee will receive this Security, with the form below
entitled "Option to Elect Repayment" duly completed, not later than five
Business Days after the date of such telegram, telex, facsimile transmission or
letter (and this Security and form duly completed are received by the Company by
such fifth Business Day). Any such election shall be irrevocable. The address to
which such deliveries are to be made is the corporate trust office of the
Trustee located on the date hereof at the Harris Trust Company of New York, Wall
Street Plaza, 88 Pine Street, 19th Floor, New York, New York 10005 (or, at such
other place as the Company shall notify the Holders of the Securities of this
series). All questions as to the validity, eligibility (including time of
receipt) and acceptance of any Security for repayment will be determined by the
Company, whose determination will be final and binding. Upon any partial
repayment, this Security shall be cancelled and a new Security or Securities for
the remaining principal amount hereof shall be issued in the name of the Holder
of this Security. Beneficial owners of Global Securities electing to have all or
a portion of their book-entry Securities repaid must instruct the participant
through which they own their interest to direct DTC or its nominee as Holder of
the Security to exercise the repayment option on their behalf.

AUTHORIZED DENOMINATIONS

         Unless otherwise provided on the face hereof, this Security is issuable
only in registered form without coupons in denominations of $1,000 or any amount
in excess thereof which is an integral multiple of $1,000.

REGISTRATION OF TRANSFER

         Upon due presentment for registration of transfer of this Security at
the corporate trust office of the Trustee in The Borough of Manhattan, The City
of New York or at the corporate trust office of the Paying Agent in The

                                       11
<PAGE>   12

Borough of Manhattan, The City of New York, a new Security or Securities of this
series in authorized denominations for an equal aggregate principal amount will
be issued to the transferee in exchange herefor, as provided in the Indenture
and subject to the limitations provided therein and to the limitations described
below, without charge except for any tax or other governmental charge imposed in
connection therewith.

         If this Security is a Global Security (as specified above), this
Security is exchangeable for definitive Securities in registered form only if
(x) the Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for this Security or if at any time the Depositary ceases
to be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, and the Company does not appoint a successor Depositary within 90 days
after receiving such notice or after becoming aware that the Depositary has
ceased to be so registered as a clearing agency, (y) the Company in its sole
discretion determines that this Security shall be exchangeable for definitive
Securities in registered form and notifies the Trustee thereof or (z) an Event
of Default with respect to the Securities represented hereby has occurred and is
continuing. If this Security is exchangeable pursuant to the preceding sentence,
it shall be exchangeable for definitive Securities in registered form, bearing
interest at the same rate, having the same date of issuance, redemption
provisions, Stated Maturity Date and other terms and of authorized denominations
aggregating a like amount.

         If this Security is a Global Security (as specified above), this
Security may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor of the Depositary or a nominee of such successor. Except as provided
above, owners of beneficial interests in this Global Security will not be
entitled to receive physical delivery of Securities in definitive form and will
not be considered the Holders hereof for any purpose under the Indenture.

         Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

NO PERSONAL RECOURSE

         No recourse shall be had for the payment of the principal of, premium,
if any, or interest, if any on, this Security, or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture or any
indenture supplemental thereto, against any incorporator, stockholder, officer
or director, as such, past, present or future, of the Company, the Guarantors or
any of their respective successor corporations (or other entities), whether by
virtue of any constitution, statute or rule of law, or by any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.

DEFINED TERMS

         All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

GOVERNING LAW

         This Security shall be governed by and construed in accordance with the
law of the State of Georgia, without regard to principles of conflicts of laws,
except to the extent that the Trust Indenture Act shall be applicable.

                                       12
<PAGE>   13

                            OPTION TO ELECT REPAYMENT

               TO BE COMPLETED ONLY IF THIS SECURITY IS REPAYABLE
                   AT THE OPTION OF THE HOLDER AND THE HOLDER
                          ELECTS TO EXERCISE SUCH RIGHT

         The undersigned hereby irrevocably requests and instructs the Company
to repay the within Security (or the portion thereof specified below), pursuant
to its terms, on the Optional Repayment Date first occurring after the date of
receipt by the Company of the within Security as specified below (the "Repayment
Date"), at a Repayment Price equal to 100% of the principal amount thereof,
together with interest to the Repayment Date, to the undersigned,
______________________________________, at ___________________________________
(please print or typewrite name and address of the undersigned).

         For this option to elect repayment to be effective, the Company must
receive, at the applicable address of the Paying Agent set forth in the within
Security or at such other place or places of which the Company shall from time
to time notify the Holder of the within Security, at least 30 but not more than
60 calendar days prior to an Optional Repayment Date, either (i) this Security,
with this "Option to Elect Repayment" form duly completed, or (ii) a telegram,
telex, facsimile transmission, or letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial
bank or a trust company in the United States of America setting forth (a) the
name, address and telephone number of the Holder of the Security, (b) the
principal amount of the Security and the amount of the Security to be repaid,
(c) a statement that the option to elect repayment is being irrevocably
exercised thereby, and (d) a guarantee stating that the Security to be repaid
with the form entitled "Option to Elect Repayment" on the addendum to the
Security duly completed will be received by the Company not later than five
Business Days after the date of such telegram, telex, facsimile transmission or
letter (and such Security and form duly completed are received by the Company by
such fifth Business Day).

         If less than the entire principal amount of the within Security is to
be repaid, specify the portion thereof (which shall be an integral multiple of
$1,000) which the holder elects to have repaid: $_____________.

         If less than the entire principal amount of the within Security is to
be repaid, specify the denomination or denominations (which shall be $1,000 or
an integral multiple thereof) of the Security or Securities to be issued to the
holder for the portion of the within Securities not being repaid (in the absence
of any specification, one such Security will be issued for the portion not being
repaid): $______________.

Date: ___________________

                  Notice: The signature to this Option to Elect
                   Repayment must correspond with the name as
                  written on the face of the within Security in
                     every particular without alteration or
                      enlargement or any change whatsoever.

                                       13
<PAGE>   14

                                  ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

         TEN COM - as tenants in common

         TEN ENT - as tenants by the entireties

         JT TEN - as joint tenants with right of survivorship and not as tenants
                  in common

         UNIF GIFT MIN ACT - __________________ Custodian ________________
                                (Custodian)                    (Minor)
         Under Uniform Gifts to Minors Act

         -------------------------
                  (State)

         Additional abbreviations may also be used though not in the above list.

              FOR VALUE RECEIVED, the undersigned hereby sell(s),
                         assign(s) and transfer(s) unto

Please Insert Social Security or
Other Identifying Number of Assignee

-------------------------------

------------------------------------------------------------

------------------------------------------------------------

------------------------------------------------------------
(PLEASE PRINT OR TYPE NAME AND ADDRESS INCLUDING POSTAL
ZIP CODE OF ASSIGNEE)

the within Security of IRT PROPERTY COMPANY and all rights thereunder and does
hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the within-named Company, with full
power of substitution in the premises.

Dated:
      -------------------------

                                                        ------------------------

                               Signature Guaranteed:
                                                        ------------------------

NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the within Security in every particular, without
alteration or enlargement or any change whatsoever.

                                       14

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