Document:

DIGITAL LIGHTWAVE, INC

DIGITAL LIGHTWAVE, INC. 

FIFTH AMENDED AND RESTATED SECURITY AGREEMENT

This Fifth Amended and Restated Security Agreement (this “Agreement”) is made as of April 29, 2003, by and between Digital Lightwave, Inc., a Delaware corporation (the “Debtor”), in favor of Optel, LLC (the “Secured Party”). 

RECITALS

The Debtor and the Secured Party are parties to (i) that certain Secured Promissory Note dated as of February 14, 2003 in the original principal amount of $800,000 upon the terms and subject to the conditions set forth therein, and as the same may be increased, amended, modified or extended from time to time, (ii) that certain Secured Promissory Note dated as of February 26, 2003 in the original principal amount of $650,000 upon the terms and subject to the conditions set forth therein, and as the same may be increased, amended, modified or extended from time to time, (iii) that certain Secured Promissory Note dated as of March 28, 2003 in the original principal amount of $450,000 upon the terms and subject to the conditions set forth therein, and as the same may be increased, amended, modified or extended from time to time, (iv) that certain Secured Promissory Note dated as of April 2, 2003 in the original principal amount of $60,000 upon the terms and subject to the conditions set forth therein, and as the same may be increased, amended, modified or extended from time to time, and (v) that certain Secured Promissory Note dated as of the date hereof in the original principal amount of $500,000 upon the terms and subject to the conditions set forth therein, and as the same may be increased, amended, modified or extended from time to time (collectively, the “Notes”).  The parties intend that the Debtor’s obligations to repay the Notes be secured by all of the assets of the Debtor.

AGREEMENT

In consideration of the purchase of the Notes by the Secured Party and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Debtor hereby agrees with the Secured Party as follows:

1.

Grant of Security Interest.  

(a)

To secure the Debtor’s full and timely performance of the Obligations, the Debtor hereby grants to the Secured Party a continuing Lien on and security interest (the “Security Interest”) in, all of the Debtor’s right, title and interest in and to all of its personal property and assets (both tangible and intangible), including, without limitation, the following, whether now owned or hereafter acquired and wherever located: (a) all Receivables; (b) all Equipment; (c) all Fixtures; (d) all General Intangibles; (e) all Inventory; (f) all Investment Property; (g) all Deposit Accounts; (h) all Cash; (i) all other Goods of the Debtor; (j) all Intellectual Property; and (l) all Proceeds of each of the foregoing and all accessions to, and replacements for, each of the foregoing (collectively, the “Collateral”).  The Security Interest shall be a first and prior interest in all of the Collateral, provided, however, that the Security Interest shall be subordinated with respect to any Collateral that is subject to the Prior Security Interests (as defined below).

(b)

The following terms shall have the following meanings for purposes of this Agreement:

“Account” means any “Account,” as such term is defined in the UCC now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts, rights to payment and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned or hereafter received or acquired by or belonging or owing to the Debtor whether or not arising out of goods or software sold or services rendered by the Debtor or from any other transaction, whether or not the same involves the sale of goods or services by the Debtor and all of the Debtor’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it for goods or services, and all of the Debtor’s rights to any goods represented by any of the foregoing, and all monies due or to become due to the Debtor under all purchase orders and contracts for the sale of goods or the performance of services or both by the Debtor or in connection with any other transaction (whether or not yet earned by performance on the part of the Debtor), now in existence or hereafter occurring, including, without limitation, the right to receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing. 

“Cash” means all cash, money, currency, and liquid funds, wherever held, in which the Debtor now or hereafter acquires any right, title, or interest. 

“Chattel Paper” means any “Chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“Commercial Tort Claim” shall have the meaning given to that term in Section 2(e) of this Agreement.

“Credit Documents” means this Agreement, the Notes and any UCC-1 Financing Statement filed herewith.

“Deposit Accounts” means any “Deposit accounts,” as such term is defined in the UCC, and includes any checking account, savings account, or certificate of deposit, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“Documents” means any “Documents,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“Electronic Chattel Paper” means any “Electronic chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest.

“Equipment” means any “Equipment,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest and any and all additions, upgrades, substitutions and replacements of any of the foregoing, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires interest. 

“Fixtures” means any “Fixtures,” as such term is defined in the UCC, together with all right, title and interest of the Debtor in and to all extensions, improvements, betterments, accessions, renewals, substitutes, and replacements of, and all additions and appurtenances to any of the foregoing property, and all conversions of the security constituted thereby, immediately upon any acquisition or release thereof or any such conversion, as the case may be, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“General Intangible” means any “General intangible,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all right, title and interest that the Debtor may now or hereafter have in or under any contracts, rights to payment, payment intangibles, confidential information, interests in partnerships, limited liability companies, corporations, joint ventures and other business associations, permits, goodwill, claims in or under insurance policies, including unearned premiums and premium adjustments, uncertificated securities, deposit, checking and other bank accounts, but shall not include any Intellectual Property (including the right to receive all proceeds and damages therefrom), rights to receive tax refunds and other payments and rights of indemnification.

“Goods” means any “Goods,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“Instruments” means any “Instrument,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest.

“Intellectual Property” means, collectively, all rights, priorities and privileges of the Debtor relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, inventions, patents, patent licenses, trademarks, trademark licenses and trade secrets (including customer lists), domain names, Web sites and know-how, including, but not limited to, the patents, trademarks and copyrights set forth on Schedule  2 .

“Inventory” means any “Inventory,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest, and, in any event, shall include, without limitation, all inventory, goods and other personal property that are held by or on behalf of the Debtor for sale or lease or are furnished or are to be furnished under a contract of service or that constitute raw materials, work in process or materials used or consumed or to be used or consumed in the Debtor’s business, or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in transit or in the constructive, actual or exclusive possession of the Debtor or is held by others for the Debtor’s account, including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents or other Persons. 

“Investment Property” means any “Investment property,” as such term is defined in the UCC, and includes certificated securities, uncertificated securities, money market funds and U.S. Treasury bills or notes, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“Letter of Credit Right” means any “Letter of credit right,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest, including any right to payment or performance under any letter of credit. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a security interest, and the filing of any financing statement (other than a precautionary financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction. 

“Obligations” shall mean and include all loans, advances, debts, liabilities and obligations, however arising, owed by the Debtor to the Secured Party of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising pursuant to the terms of the Notes, or any of the other Credit Documents or otherwise, including without limitation all interest, fees, charges, expenses, attorneys’ fees and accountants’ fees chargeable to the Debtor or payable by the Debtor thereunder.

“Permitted Liens” shall mean (a) Liens for taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being contested in good faith, provided that adequate reserves for the payment thereof have been established in accordance with generally accepted accounting principals, (b) Liens of carriers, warehousemen, mechanics, materialmen, vendors, and landlords and other similar Liens imposed by law incurred in the ordinary course of business for sums not overdue more than 45 days or being contested in good faith, provided that adequate reserves for the payment thereof have been established in accordance with generally accepted accounting principals, (c) deposits under workers' compensation, unemployment insurance and social security laws or to secure the performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases, or to secure statutory obligations of surety or appeal bonds or to secure indemnity, performance or other similar bonds in the ordinary course of business, (d) zoning restrictions, easements, rights-of-way, title irregularities and other similar encumbrances, which alone or in the aggregate are not substantial in amount and do not materially detract from the value of the property subject thereto or interfere with the ordinary conduct of the business of the Debtor, (e) banker's Liens and similar Liens (including set-off rights) in respect of bank deposits, (f)  Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties and in connection with the importation of goods in the ordinary course of the Debtor’s business, (g) Liens on the property or assets of any subsidiary of the Debtor in favor of the Debtor, (h) purchase money Liens that will be discharged upon the Debtor’s payment of the purchase price for the applicable property, to the extent such Liens relate solely to the property so purchased and (j) the security interests set forth on Schedule 1 (the “Prior Security Interests”); provided, however, that except for the Prior Security Interests, that in each case, such Lien is not senior or prior to the Security Interest created hereunder.

“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof). 

“Proceeds” means “Proceeds,” as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and all Accounts, Chattel Paper, Instruments, cash or other forms of money or currency or other proceeds payable to the Debtor from time to time in respect of the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Debtor from time to time with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to the Debtor from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) the proceeds, damages, or recovery based on any claim of the Debtor against third parties (i) for past, present or future infringement of any copyright, patent or patent license or (ii) for past, present or future infringement or dilution of any trademark or trademark license or for injury to the goodwill associated with any trademark, trademark registration or trademark licensed under any trademark license and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. 

“Receivables” means all of the Debtor’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and Letter of Credit Rights. 

“Supporting Obligation” means any “Supporting obligation,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest. 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of Florida; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Secured Party’s Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of Florida, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect, from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.  

Unless otherwise defined herein, all capitalized terms used herein and defined in the Notes shall have the respective meaning given to those terms in the Notes, and terms that are defined in the UCC and used herein shall have the meanings given to them in the UCC.

2.

Representations and Warranties.  The Debtor hereby represents and warrants to the Secured Party that:

(a)

Ownership of Collateral.  The Debtor is the legal and beneficial owner of the Collateral (or, in the case of after-acquired Collateral, at the time the Debtor acquires rights in the Collateral, will be the legal and beneficial owner thereof).  Except for the Security Interest granted to the Secured Party pursuant to this Agreement, the Debtor has rights in or the power to transfer the Collateral free and clear of any adverse Lien, security interest or encumbrance except as created by this Security Interest, except for Permitted Liens.  Except for the financing statements listed in Schedule 3, no financing statements covering any Collateral or any proceeds thereof are on file in any public office (other than filings listing the Secured Party as the secured party).  

(b)

Valid Security Interest.  The Security Interest granted pursuant to this Agreement will constitute a valid and continuing first priority, perfected security interest in favor of the Secured Party in the Collateral for which perfection is governed by the UCC or filing with the United States Copyright Office or United States Patent and Trademark Office.  Such Security Interest will be prior to all other Liens on the Collateral, except for Permitted Liens.

(c)

Organization and Good Standing.  The Debtor has been duly incorporated, and is validly existing and in good standing, under the laws of the State of Delaware.

(d)

Location, State of Organization and Name of the Debtor.  The Debtor’s state of organization is Delaware and the Debtor’s exact legal name as it appears in the official filings in the State of Delaware is as set forth in the first paragraph of this Agreement.  The Debtor has only one jurisdiction of organization.

(e)

Location of Equipment and Inventory.  All Equipment and Inventory are (i) located at the locations indicated on Schedule 4 (ii) in transit to such locations or (iii) in transit to a third party purchaser which will become obligated on a Receivable to the Debtor upon receipt.  Except for Equipment and Inventory referred to in clauses (ii) and (iii) of the preceding sentence, the Debtor has exclusive possession and control of the Inventory and Equipment.

(g)

Delivery of Items.  Schedule 5 lists all Instruments (other than checks received in the ordinary course of business), letter-of-credit rights, Electronic Chattel paper and Chattel Paper of the Debtor as of the date hereof.  The Debtor has delivered to the Secured Party, together with all necessary stock powers, endorsements, assignments and other necessary instruments of transfer, the originals of all Receivables consisting of instruments and Chattel Paper and the originals of all certificated securities owned directly by the Debtor.

(h)

Receivables.  Each Receivable is genuine and enforceable against the party obligated to pay the same (an “Account Debtor”) free from any right of rescission, defense, setoff or discount.

(i)

Insurance.  Each insurance policy maintained by the Debtor is validly existing and is in full force and effect.  The Debtor is not in default in any material respect under the provisions of any insurance policy, and there are no facts which, with the giving of notice or passage of time (or both), would result in such a default under any material provision of any such insurance policy.  Set forth in Schedule 6 is a complete and accurate list of the insurance of the Debtor in effect on the date of this Agreement covering fire, public liability, property damage and worker’s compensation, showing as of such date, (i) the type of insurance carried, (ii) the name of the insurance carrier, and (iii) the amount of each type of insurance carried.

(j)

This Agreement is effective to create a valid and continuing Lien upon the Collateral.  All action by the Debtor necessary to protect and perfect such Lien on each item of the Collateral has been duly taken.

3.

Covenants.  The Debtor covenants and agrees with the Secured Party that, from and after the date of this Agreement until the Obligations are paid in full:

(a)

Other Liens.  Except for the Security Interest and Permitted Liens, the Debtor has rights in or the power to transfer the Collateral and its title and will be able to do so hereafter free from any adverse Lien, security interest or encumbrance, and the Debtor will defend the Collateral against the claims and demands of all persons at any time claiming the same or any interest therein.  

(b)

Further Documentation.  At any time and from time to time, upon the writ­ten request of the Secured Party, and at the sole expense of the Debtor, the Debtor will promptly and duly authenticate and deliver such further instruments and documents and take such further action as the Secured Party may reasonably request for the purpose of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted including, without limitation, filing any financing or continuation statements under the UCC in effect with respect to the Liens created hereby.  The Debtor also hereby authorizes the Secured Party to file any such financing, amendment or continuation statement without the authentication of the Debtor to the extent permitted by applicable law.  A reproduction of this Agreement shall be sufficient as a financing statement (or as an exhibit to a financing statement on form UCC-1) for filing in any jurisdiction.

(c)

Indemnification.  The Debtor agrees to defend, indemnify and hold harmless the Secured Party against any and all liabilities, costs and expenses (including, without limitation, legal fees and expenses) (“Liabilities”): (i) with respect to, or resulting from, any delay in paying, any and all excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral, (ii) with respect to, or resulting from, any delay in complying with any law, rule, regu­lation or order of any governmental authority applicable to any of the Collateral or (iii) in connection with any of the transactions contemplated by this Agreement. 

(d)

Maintenance of Records.  The Debtor will keep and maintain at its own expense complete and satisfactory, in all material respects, records of the Collateral.

(e)

Inspection Rights.  The Secured Party shall have full access during normal business hours, and upon prior notice, to all the books, corre­spondence and other records of the Debtor relating to the Collateral.  The Secured Party or its repre­sentatives may examine such records and make photocopies or otherwise take extracts from such records.  The Debtor agrees to render to the Secured Party, at the Debtor’s expense, such clerical and other assistance as the Secured Party may request with regard to the exercise of its rights pursuant to this paragraph.

(f)

Compliance with Laws, etc.  The Debtor (i) will comply with all laws, rules, regulations and orders of any governmental authority applicable to any part of the Collateral or to the operation of the Debtor’s business, the failure of which to comply with will have a material adverse effect on the Debtor, and (ii) shall not use or permit any Collateral to be used in violation of any provision of any Credit Document, any law, rule or obligation or order of any governmental authority, or any policy of insurance covering the Collateral; provided, however, that in each case, the Debtor may contest any such law, rule, regulation or order; in any reasonable manner which does not, in the reasonable opinion of the Secured Party, adversely affect the Secured Party’s rights or the priority of its Liens on the Collateral.

(g)

Payment of Obligations.  The Debtor will pay promptly when due all taxes, assessments and governmental charges or levies imposed upon the Collateral or with respect to any its income or profits derived from the Collateral, as well as all claims of any kind (including, without limitation, claims for labor, materials and supplies) against or with respect to the Collateral.

(h)

Limitation on Liens on Collateral.  The Debtor will not create, incur or permit to exist, will defend the Collateral against, and will take such other action as is necessary to remove, any Lien or claim on or to the Collateral, other than the Security Interest and Permitted Liens, and will defend the right, title and interest of the Secured Party in and to any of the Collateral against the claims and demands of all other persons.

(i)

Limitations on Dispositions of Collateral.  The Debtor will not sell, transfer, lease, or otherwise dispose of any of the Collateral, or attempt, offer or contract to do so other than dispositions of Inventory in the ordinary course of the Debtor’s business; provided, however that the Debtor will be allowed to grant licenses to its products and related documentation in the ordinary course of business and to establish or provide for escrows of related intellectual property in connection therewith.

(j)

Further Identification of Collateral.  The Debtor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Secured Party may request, all in detail acceptable to the Secured Party.

(k)

Notice of Change of State of Incorporation.  Without 30 days’ prior written notice to the Debtor shall not (i) change the Debtor’s name, state of incorporation or organization, organizational identification number or place of business (or, if the Debtor has more than one place of business, its chief executive office), or the office in which the Debtor’s records relating to Receivables are kept, or (ii) keep Collateral consisting of Chattel Paper and documents at any location other than its chief executive office.

(l)

Future Commercial Tort Claims.  The Debtor will promptly give notice to the Secured Party upon the initiation of any Commercial Tort Claim.  The Debtor hereby authorizes the Secured Party to amend this Agreement (without any further action or consent from the Debtor) to include any such Commercial Tort Claim as Collateral hereunder.

(m)

Deposit Accounts.  For each deposit account maintained by the Debtor, the Debtor shall, along with the bank or other depository institution at which such deposit account is maintained (the “Depositary Bank”), execute and deliver to the Secured Party a Deposit Account Control Agreement in form and substance reasonably satisfactory to the Secured Party.  If requested by the Secured Party, the Debtor shall also obtain a blocked account, lockbox or similar agreement with all or certain Depository Banks.  Without ten days prior written notice to the Secured Party, the Debtor shall not establish any deposit account not set forth on Schedule 6.

(n)

Collection of Receivables.  The Debtor shall collect, enforce and receive delivery of the Receivables in accordance with past practice.

(q)

Insurance. The Debtor shall (i) maintain and keep in force insurance of the types and in amounts customarily carried from time to time during the term of this Agreement in its lines of business, including fire, public liability, property damage and worker’s compensation, such insurance to be carried with companies and in amounts satisfactory to the Secured Party, (ii) deliver to the Secured Party from time to time, as the Secured Party may request, schedules setting forth all insurance then in effect, and (iii) deliver to the Secured Party copies of each policy of insurance which replaces, or evidences the renewal of, each existing policy of insurance at least 15 days prior to the expiration of such policy.  The Secured Party shall be named as additional insured or additional loss payee, as appropriate, on all liability and property insurance of the Debtor and such policies shall contain such additional endorsements as shall be required by the Secured Party.  

(r)

Mortgagee Waivers.  The Debtor shall use its best efforts to obtain waivers or subordinations of Liens from landlords and mortgagees, and the Debtor shall, in all instances, obtain signed acknowledgements of the Secured Party’s Liens from bailees having possession of any of the Debtor’s Collateral that they hold such Collateral for the benefit of the Secured Party pursuant to Section 9313(c) of the UCC.

(s)

Letters of Credit.  If the Debtor is or becomes the beneficiary of a letter of credit, the Debtor shall promptly, and in any event within two business days after becoming a beneficiary, notify the Secured Party thereof and enter into a tri-party agreement with the Secured Party and the issuer or confirmation bank with respect to such Letter of Credit Rights assigning such Letter of Credit Rights to the Secured Party and directing all payments thereunder to the Secured Party, all in form and substance satisfactory to the Secured Party.

(t)

Electronic Chattel Paper.  The Debtor shall take all steps reasonably necessary to grant the Secured Party control of all Electronic Chattel Paper in accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act.

(u)

Intellectual Property Matters.  The Debtor shall notify the Secured Party immediately if it knows or has reason to know (i) that any application or registration relating to any of its Intellectual Property that is material to the operation of its business may become abandoned or dedicated, or (ii) of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding the Debtor’s ownership of any Intellectual Property that is material to the operation of its business, its right to register the same, or to keep and maintain the same.

(v)

Intellectual Property Applications.  In no event shall the Debtor, either itself or through any agent, employee, licensee or designee, file an application for the registration of any patent, trademark or copyright with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency without giving the Secured Party prior written notice thereof, and, upon request of the Secured Party, the Debtor shall execute and deliver any and all security documents as the Secured Party may request to evidence the Secured Party’s Lien on such Intellectual Property and the general intangibles of the Debtor relating thereto or represented thereby.  The Debtor hereby authorizes the Secured Party to amend this Agreement (without any further action or consent from the Debtor) to include any such patent, trademark or copyright as Collateral hereunder.

(w)

Intellectual Property Abandonment.  The Debtor shall take all actions reasonably necessary or requested by the Secured Party to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of its Intellectual Property, including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings.

(x)

Protection of Intellectual Property.  In the event that any of the Debtor’s Intellectual Property is infringed upon, or misappropriated or diluted by a third party, the Debtor shall notify the Secured Party promptly after the Debtor learns thereof.  The Debtor shall, unless the Secured Party shall determine that such Intellectual Property is in no way material to the conduct of its business or operations, promptly sue for, and seek recovery of any and all damages resulting from such infringement, misappropriation or dilution, and shall take such other actions as the Secured Party shall deem necessary under the circumstances to protect such Intellectual Property.

(y)

Chattel Paper.  The Debtor shall type, print or stamp conspicuously on the face of all original copies of all Collateral consisting of Chattel Paper and Documents not in the possession of the Secured Party having a value in excess of $100,000 a legend satisfactory to the Secured Party indicating that such Chattel Paper is subject to the security interest granted hereby.

(z)

Limitation on Filing of Financing Statements.  The Debtor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement without the prior written consent of the Secured Party and agrees that it will not do so without the prior written consent of the Secured Party, subject to the Debtor’s rights under Section 9509(d)(2) of the UCC.

4.

Event of Default; the Secured Party’s Appointment as Attorney-in-Fact.

(a)

Event of Default.  For purposes of this Agreement, the occurrence of any one of the following events (each, an “Event of Default”) shall constitute a default hereunder and under the Notes or any of the other Credit Documents:

(i)

The Debtor’s failure to pay or discharge the Obligations in full in accordance with the terms of the Notes or any of the other Credit Documents;

(ii)

A breach of any representation or warranty made by the Debtor under the this Agreement, the Notes or any of the other Credit Documents as of the date thereof or any other document or instrument entered into between the Debtor and the Secured Party in connection herewith.

(iii)

The Debtor’s failure to observe or perform any other covenant, obligation, condition or agreement contained in this Agreement, the Notes or any of the other Credit Documents and such failure shall continue for 10 days after the earlier of (i) the Debtor’s written acknowledgement of such failure and (ii) written notice by the Secured Party to the Debtor of such failure.

(iv)

The insolvency of the Debtor, the commission of any act of bankruptcy by the Debtor, the execution by the Debtor of a general assignment for the benefit of creditors, the filing by or against the Debtor of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition without dismissal for a period of 90 days or more, or the appointment of a receiver or trustee to take possession of the property or assets of the Debtor.

(v)

A default shall occur under the Notes or any of the other Credit Documents, or any other agreement entered into between the Debtor and the Secured Party in connection herewith.

(b)

Powers.  The Debtor hereby appoints the Secured Party and any officer or agent of the Secured Party, with full power of substitution, as its attorney-in-fact with full irrevocable power and authority in the place of the Debtor and in the name of the Debtor or its own name, from time to time in the Secured Party’s discretion so long as an Event of Default has occurred and is continuing, for the purpose of carrying out the terms of this Agreement, to take any appropriate action and to authenticate any instrument which may be necessary or desirable to accomplish the purposes of this Agreement.  Without limiting the foregoing, so long as an Event of Default has occurred and is continuing, the Secured Party shall have the right, without notice to, or the consent of, the Debtor, to do any of the following on the Debtor’s behalf:

(i)

to pay or discharge any taxes or Liens levied or placed on or threatened against the Collateral;

(ii)

to direct any party liable for any payment under any of the Collateral to make payment of any and all amounts due or to become due thereunder directly to the Secured Party or as the Secured Party directs;

(iii)

to ask for or demand, collect, and receive payment of and receipt for, any payments due or to become due at any time in respect of or arising out of any Collateral;

(iv)

to commence and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to enforce any right in respect of any Collateral;

(v)

to defend any suit, action or proceeding brought against the Debtor with respect to any Collateral;

(vi)

to settle, compromise or adjust any suit, action or proceeding described in subsection (v) above and to give such discharges or releases in connection therewith as the Secured Party may deem appropriate;

(vii)

to assign any patent right included in the Collateral of the Debtor (along with the goodwill of the business to which any such patent right pertains), throughout the world for such term or terms, on such conditions, and in such manner, as the Secured Party shall in its sole discretion determine; and

(viii)

generally, to sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral and to take, at the Secured Party’s option and the Debtor’s expense, any actions which the Secured Party deems necessary to protect, preserve or realize upon the Collateral and the Secured Party’s Liens on the Collateral and to carry out the intent of this Agreement, in each case to the same extent as if the Secured Party were the absolute owner of the Collateral for all purposes.

The Debtor hereby ratifies whatever actions the Secured Party shall lawfully do or cause to be done in accordance with this Section 4.  This power of attorney shall be a power coupled with an interest and shall be irrevocable.

(c)

No Duty on the Secured Party’s Part.  The powers conferred on the Secured Party by this Section 4 are solely to protect the Secured Party’s interests in the Collateral and shall not impose any duty upon it to exercise any such powers.  The Secured Party shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither the Secured Party nor any of its officers, directors, employees or agents shall, in the absence of willful misconduct or gross negligence, be responsible to the Debtor for any act or failure to act pursuant to this Section 4.

5.

Performance by the Secured Party of the Debtor’s Obligations.  If the Debtor fails to per­form or comply with any of its agreements or covenants contained in this Agreement and the Secured Party performs or complies, or otherwise causes performance or compliance, with such agreement or covenant in accordance with the terms of this Agreement, then the expenses of the Secured Party incurred in connection with such performance or compliance shall be payable by the Debtor to the Secured Party on demand and shall constitute Obligations secured by this Agreement.

6.

Remedies.  If an Event of Default has occurred and is continuing, the Secured Party may exercise, in addition to all other rights and remedies granted to it in this Agreement and in any other instrument or agreement relating to the Obligations, all rights and remedies of a secured party under the UCC.  Without limiting the foregoing, the Secured Party, without demand of performance or other demand, present­ment, protest, advertisement or notice of any kind (except any notice required by law) to or upon the Debtor or any other person (all of which demands, defenses, advertisements and notices are hereby waived), may in such circumstances collect, receive, appropriate and realize upon any or all of the Collateral, and/or may sell, lease, assign, give an option or options to purchase, or otherwise dispose of and deliver any or all of the Collateral (or contract to do any of the foregoing), in one or more parcels at a public or private sale or sales, at any exchange, broker’s board or office of the Secured Party or elsewhere upon such terms and conditions as the Secured Party may deem advisable, for cash or on credit or for future delivery without assumption of any credit risk.  The Secured Party shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase all or any part of the Collateral so sold, free of any right or equity of redemption in the Debtor, which right or equity is hereby waived or released.  The Secured Party shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable expenses incurred therein or in connection with the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Party under this Agreement (including, without limitation, reasonable attorneys’ fees and expenses) to the payment in whole or in part of the Obligations, in such order as the Secured Party may elect, and only after such application and after the payment by the Secured Party of any other amount required by any provision of law, need the Secured Party account for the surplus, if any, to the Debtor.  To the extent permitted by applicable law, the Debtor waives all claims, damages and demands it may acquire against the Secured Party arising out of the exercise by the Secured Party of any of its rights hereunder.  If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten days before such sale or other disposition.  The Debtor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay the Obligations and the fees and disbursements of any attorneys employed by the Secured Party to collect such deficiency. 

7.

Limitation on Duties Regarding Preservation of Collateral.  The Secured Party’s sole duty with respect to the custody, safekeeping and preservation of the Collateral, under Section 9207 of the UCC or otherwise, shall be to deal with it in the same manner as the Secured Party deals with similar property for its own account.  Neither the Secured Party nor any of its directors, officers, employees or agents shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of the Debtor or otherwise.

8.

Powers Coupled with an Interest.  All authorizations and agencies contained in this Agreement with respect to the Collateral are irrevocable and are powers coupled with an interest.

9.

No Waiver; Cumulative Remedies.  The Secured Party shall not by any act (except by a written instrument pursuant to Section 11(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any default under the Notes or any of the other Credit Documents or in any breach of any of the terms and conditions of this Agreement.  No failure to exer­cise, nor any delay in exercising, on the part of the Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Secured Party of any right or remedy under this Agreement on any one occasion shall not be construed as a bar to any right or remedy which the Secured Party would otherwise have on any subsequent occasion.  The rights and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently and are not exclusive of any rights or remedies provided by law.

10.

Termination of Security Interest.  Upon satisfaction of the Debtor’s obligations pursuant to the Notes, the security interest granted herein shall terminate and all rights to the Collateral shall revert to the Debtor.  Upon any such termination, the Secured Party shall authenticate and deliver to the Debtor such documents as the Debtor may reasonably request to evidence such termination.

11.

Miscellaneous.

(a)

Amendments and Waivers.  Any term of this Agreement may be amended with the written consent of the parties or their respective successors and assigns.  Any amendment or waiver effected in accordance with this Section 11(a) shall be binding upon the parties and their respective successors and assigns.

(b)

Transfer; Successors and Assigns.  The terms and conditions of this Agreement shall be binding upon the Debtor and its successors and assigns, as well as all persons who become bound as a debtor to this Agreement and inure to the benefit of the Secured Party and its successors and assigns.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

(c)

Governing Law.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.

(d)

Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

(e)

Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

(f)

Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address or facsimile number as set forth below or as subsequently modified by written notice.

(h)

Payments Free of Taxes, Etc.  All payments made by the Debtor under this Agreement shall be made by the Debtor free and clear of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings.  In addition, the Debtor shall pay upon demand any stamp or other taxes, levies or charges of any jurisdiction with respect to the execution, delivery, registration, performance and enforcement of this Agreement.  Upon request by the Secured Party, the Debtor shall furnish evidence satisfactory to the Secured Party that all requisite authorizations and approvals by, and notices to and filings with, governmental authorities and regulatory bodies have been obtained and made and that all requisite taxes, levies and charges have been paid.

(i)

Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable.  In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

(j)

Entire Agreement.  This Agreement, and the documents referred to herein constitute the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties hereto concerning such subject matter are expressly canceled.

(k)

Amendment and Restatement.  Effective upon execution of this Agreement by both parties, the Fourth Amended and Restated Security Agreement dated as of April 2, 2003 between the Debtor and the Secured Party is hereby amended and restated in its entirety to read as set forth in this Agreement.

[Signature Page Follows]

The Debtor and the Secured Party have caused this Agreement to be duly executed and delivered as of the date first above written.

DEBTOR:

DIGITAL LIGHTWAVE, INC.

By:  ____________________________

Name:___________________________

Title:  ___________________________

SECURED PARTY:

OPTEL, LLC

By:  ____________________________

Name:___________________________

Title:  ___________________________Agreement of Purchase and Sale dated as of April 22, 2003

 
Exhibit 10.01

 
 
AGREEMENT FOR PURCHASE AND SALE 
OF REAL PROPERTY AND
ESCROW INSTRUCTIONS 
 
THIS AGREEMENT FOR PURCHASE
AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS (“Agreement”) is made and entered into as of this      day of April, 2003, by and between PROCACCI FINANCIAL GROUP, LTD. F/K/A PROCACCI REAL ESTATE MANAGEMENT CO.
LTD, a Florida limited partnership (“Seller”) and GREIT—DCF CAMPUS, LLC, a Florida limited liability company (“Buyer”), with reference to the following facts: 
 

	 	A.	 	Seller owns certain real property located in Broward County, Florida commonly known as Department of Children and Families Campus and such other assets, as the same
are herein described. This real property is actually comprised of two separate platted parcels: “Swindell’s Subdivision No. 2” and “Plantation Plaza”. This Agreement is for the purchase and sale of only that land and the
improvements thereon, legally described as “Swindell’s Subdivision No. 2, more specifically described in Exhibit A attached hereto (the “Land”). 

 

	 	B.	 	Seller desires to sell to Buyer and Buyer desires to purchase from Seller the Land and the associated assets. 

 
NOW, THEREFORE, in consideration of the mutual covenants, premises and
agreements herein contained, the parties hereto do hereby agree as follows: 
 

	1.	 	Purchase and Sale. 

 

	 	1.1.	 	The purchase and sale includes, and at Close of Escrow (hereinafter defined) Seller shall sell, transfer, grant and assign to Buyer, Seller’s entire right and
interest in and to all of the following (hereinafter sometimes collectively, the “Property”): 

 

	 	1.1.1.	 	The Land, together with all structures, buildings, improvements, machinery, fixtures, and equipment affixed or attached to the Land and all easements, development
rights, rights of way, and other rights appurtenant to the Land (all of the foregoing being collectively referred to herein as the “Real Property”); 

 

	 	1.1.2.	 	All leases (the “Leases”), including associated amendments, with all persons (“Tenants”) leasing the Real Property or any part thereof or
hereafter entered into in accordance 

	 	 
with the terms hereof prior to Close of Escrow, together with all security deposits, other deposits held in connection with the Leases, Lease
guarantees and other similar credit enhancements providing additional security for such Leases; 

 

	 	1.1.3.	 	All tangible and intangible personal property owned by Seller located on or used in connection with the Real Property, including, specifically, without limitation,
equipment, furniture, tools and supplies, and all related intangibles including Seller’s interest in the name “Department of Children & Families Campus” (the “Personal Property”); 

 

	 	1.1.4.	 	All service contracts, agreements, warranties and guaranties relating to the operation, use or maintenance of the Property (the “Contracts”); and

 

	 	1.1.5.	 	To the extent transferable, all building permits, certificates of occupancy and other certificates, permits, licenses and approvals relating to the Property (the
“Permits”). 

 

	2.	 	Purchase Price. 

 
The total Purchase Price of the Property shall be Three Million, Eight Hundred Forty Five Thousand Dollars ($3,845,000.00)
(“Purchase Price”), and payable as follows: 
 

	 	2.1.	 	Deposit/Further Payments. 

 

	 	2.1.1.	 	Buyer has deposited into Escrow (hereinafter defined) the amount of Fifty Thousand and No/ 100 Dollars ($50,000.00) (the “Deposit”), in the form of
a wire transfer payable to Chicago Title Company, attn. Kandy Knotts, at 560 E. Hospitality Lane, San Bernardino, CA 92408 (“Escrow Holder”) in accordance with the standard escrow agreement of the Escrow Holder. Escrow Holder
has placed the Deposit into an interest bearing money market account at a bank or other financial institution reasonably satisfactory to Buyer, and interest thereon shall be credited to Buyer’s account and shall be deemed to be part of the
Deposit. The Buyer has deposited with the Escrow Holder an additional deposit of One Hundred Fifty 

 

2 

Thousand Dollars ($150,000.00). One-Third (1/3rd) of the total amount, Sixty Six Thousand, Six Hundred Sixty Six Dollars and 67
cents ($66,666.67) of this deposit is the “Deposit” applicable to this Agreement. The remainder of this deposit is applicable to an agreement between the parties for the purchase of that certain real property located in Broward County,
Florida being legally described as “Plantation Plaza”. 
 
THE ENTIRE DEPOSIT HAS BEEN PLACED IN ESCROW. 
 

	 	2.1.2.	 	Reserved. 

 

	 	2.1.3.	 	On or before Close of Escrow, Buyer shall deposit with the Escrow Holder, to be held in Escrow, the balance of the Purchase Price, in immediately available funds by
wire transfer made payable to Escrow Holder. 

 

	 	2.1.4.	 	In the event that this Agreement is terminated by Buyer in accordance with its terms, the Deposit shall be immediately and automatically paid over to Buyer without
the need for any further action by either party hereto. 

 

	3.	 	Title to Property. 

 

	 	3.1.	 	Title Insurance. 

 
Seller will, at Seller’s sole expense, cause First American Title Insurance Company (the “Title Company”) to issue
an Extended Coverage ALTA Owner’s Policy of Title Insurance (the “Title Policy”) for and on behalf of Buyer in the total amount of the Purchase Price and obtainable at standard rates insuring good, marketable and insurable title in
and to the Real Property. The Title Policy shall be free and clear of exceptions except as follows: 
 

	 	3.1.1.	 	Real property taxes and assessments, which are a lien not yet due; 

 

	 	3.1.2.	 	The Permitted Exceptions (hereinafter defined) included in such policy and approved by Buyer as herein described. 

 

	 	3.2.	 	Procedure for Approval of Title. 

 

3 

 
Seller shall,
no later than three (3) business days following the Effective Date, provide to Buyer a current title insurance commitment and/or preliminary title report for both “Swindell’s Subdivision No. 2” and “Plantation Plaza”,
including good and legible copies of all related items identified as exceptions therein (the “Title Documents”). Buyer shall have thirty (30) days following the later of (A) the Effective Date or (B) receipt of the Title Documents and the
Survey (hereinafter defined) to review and approve, in writing, the condition of the title to the Real Property (“Title Review Period”). If the Title Documents or the Survey reflect or disclose any defect, exception or other
matter affecting the Real Property (“Title Defects”) that is unacceptable to Buyer, then Buyer shall provide Seller with written notice of Buyer’s objections no later than the conclusion of the Title Review Period; provided, however,
if Buyer shall fail to notify Seller in writing within the Title Review Period either that the condition of title is acceptable or of any specific objections to the state of title to the Real Property, then Buyer shall be deemed to have objected to
all exceptions to title or other conditions or matters which are shown on the Survey or described in the Title Documents. Seller may, at its sole option, elect, by written notice given to Buyer within three (3) days following the conclusion of the
Title Review Period (“Seller’s Notice Period”), to cure or remove the objections made or deemed to have been made by Buyer; provided, however, Seller shall in all events have the obligation to (i) act in good faith in making such
election and curing any Title Defects that Seller elects to cure, (ii) specifically remove any monetary encumbrances affecting the Real Property, and (iii) remove any Title Defect that attaches to the Real Property subsequent to the conclusion of
the Title Review Period. The failure of Seller to deliver written notice electing to cure any or all such objected to exceptions during the Seller’s Notice Period shall be deemed an election by Seller not to cure such exceptions. Should Seller
elect to attempt to cure or remove any objection, Seller shall have fifteen (15) days from the conclusion of the Title Review Period (“Cure Period”) in which to accomplish the cure. In the event Seller elects (or is deemed to have elected)
not to cure or remove any objection, then Buyer shall be entitled, as Buyer’s sole and exclusive remedies, either to (i) terminate this Agreement and obtain a refund of the Deposit or (ii) waive any objections that Seller has not elected to
cure and close this transaction as otherwise contemplated herein. The failure of Buyer to provide written notice to Seller within ten (10) days following the expiration of the Seller’s Notice Period waiving any objections Seller has not

 

4 

 
elected to
cure shall be deemed an election by Buyer to terminate this Agreement. Any exceptions to title accepted by Buyer pursuant to the terms of this paragraph shall be deemed “Permitted Exceptions.” 
 

	4.	 	Due Diligence Items. 

 

	 	4.1.	 	Seller shall, within three (3) business days after the Effective Date (the “Delivery Date”), deliver to Buyer each of the following (collectively,
the “Due Diligence Items”): 

 

	 	4.1.1.	 	An ALTA survey of the Real Property in Seller’s possession (the “Survey”); 

 

	 	4.1.2.	 	Copies of all Leases presently in effect with respect to the Real Property, together with any amendments or modifications thereof; 

 

	 	4.1.3.	 	A “rent roll” with respect to the Real Property for the calendar month immediately preceding the Effective Date, showing with respect to each Tenant of the
Real Property: (1) the name of the Tenant, (2) the number of rentable square feet in Tenant’s premises as set forth in Tenant’s Lease, (3) the current monthly base rental payable by such Tenant, (4) the term of the Lease, (5) any available
options for the Tenant under the Lease; and (6) the amount of any security deposit; 

 

	 	4.1.4.	 	A “rent roll” current as of December, 2000, 2001 and 2002 year to date; 

 

	 	4.1.5.	 	An aging report showing, with respect to each Tenant of the Real Property, the date through which such Tenant has paid rent and a Tenant by Tenant monthly aging
report for the preceding 24 months; 

 

	 	4.1.6.	 	A list of all contracts, including service contracts, warranties, management, maintenance, leasing commission or other agreements affecting the Real Property, if
any, together with copies of the same; 

 

	 	4.1.7.	 	All site plans, leasing plans, as-built plans, drawings, environmental, mechanical, electrical, structural, soils and 

 

5 

	 	 
similar reports and/or audits and plans and specifications relative to the Real Property in the possession of Seller or under the control of
Seller, if any; 

 

	 	4.1.8.	 	True and correct copies of the real estate and personal property tax statements covering the Property or any part thereof for each of the two (2) years prior to the
current year and, if available, for the current year; 

 

	 	4.1.9.	 	A schedule of all current or pending litigation with respect to the Real Property or any part thereof, if any, or otherwise with respect to Seller that might have a
material adverse effect on Seller’s ability to perform hereunder, together with a brief description of each such proceeding; 

 

	 	4.1.10.	 	Operating statements for the Real Property for calendar years 2000, 2001 and 2002 year to date, or if shorter, for any periods during which Seller was owner of the
Real Property; 

 

	 	4.1.11.	 	Buyer may review and copy Tenant files and records relating to the ownership and operation of the Real Property (Such files and records may be made available for
inspection by Buyer during ordinary business hours at Seller’s management office); 

 

	 	4.1.12.	 	An inventory of all personal property located on the Real Property which is used in the maintenance of the Real Property or stored for future use with the Real
Property; 

 

	 	4.1.13.	 	Copies of existing loan documents and notes affecting the Real Property, if loan is to be assumed; 

 

	 	4.1.14.	 	Copies of utility bills for the Real Property for the calendar years 2000, 2001 and 2002 year to date; 

 

	 	4.1.15.	 	Any reports in the possession of Seller from a licensed pest control contractor regarding the presence on the Real Property of dry rot or termite infestation;

 

	 	4.1.16.	 	Any reports in the possession of Seller from a licensed HVAC contractor concerning the condition of HVAC equipment and its capacity to service the Real Property;

 

6 

 

	 	4.1.17.	 	Any Environmental Impact Reports in the possession of the Seller for the Real Property; 

 

	 	4.1.18.	 	Any reports in possession of the Seller from a licensed roofer concerning the water-proofness and condition of the roof for the Real Property;

 

	 	4.1.19.	 	A Broker’s Sale Package; 

 

	 	4.1.20.	 	General Ledger for 2001 & YTD 2002; and 

 

	 	4.1.21.	 	Seismic Assessment report if applicable. 

 
         ALL ITEMS TO BE DELIVERED HAVE BEEN DELIVERED. 
 

	 	4.2.	 	Estoppel Certificates. 

 
Seller shall obtain and deliver to Buyer, no later than ten (10) days prior to Close of Escrow, estoppel certificates from (a) State of
Florida, Broward Sheriff Office I, II & III, Broward County Child Services and Riverwood Enterprises (the “Major Tenants”) and (b) seventy five percent (75%) of all remaining Tenants of the Real Property (measured by square footage
occupied) (the “Required Percentage Estoppels”), in all cases in a form provided by, or otherwise approved by, Buyer. In the event Seller is unable to obtain the Required Percentage Estoppels despite diligent efforts to do so, Seller may
deliver to Buyer an estoppel certificate executed by Seller and otherwise in form approved by Buyer covering sufficient estoppels that, together with those obtained, equal the Required Percentage Estoppels; provided, however, Seller shall thereafter
continue to use diligent efforts to obtain an estoppel certificate executed by any such Tenant. Whether executed by the Tenant or by Seller, the matters certified in the estoppel certificates shall be subject to Buyer’s reasonable approval.
Buyer shall notify Seller within three (3) business days following receipt of a copy of any executed estoppel certificate of Buyer’s approval or disapproval and the basis of such disapproval, if disapproved. If (a) Buyer reasonably disapproves
of any estoppel certificate, and Seller is unable to deliver a reasonably acceptable estoppel certificate prior to the Close of Escrow, and, without such estoppel certificate Seller will have failed to deliver the Required Percentage Estoppels or
(b) 

 

7 

Seller is unable to deliver acceptable forms of the Major Estoppels, this Agreement shall automatically terminate, Buyer shall be entitled to
a refund of the Deposit without any further action required by any party, and neither party shall have any further obligation to the other. In addition to the foregoing, Seller shall use diligent efforts to obtain any and all subordination,
attornment and non-disturbance agreements required by Buyer’s lender. 
 
         ALL ESTOPPEL CERTIFICATES HAVE BEEN DELIVERED. 
 

	5.    Inspections.	 	

 
BUYER HAS APPROVED ALL ITEMS. 
 

	6.    Escrow.	 	

 

	 	6.1.	 	Opening. 

 
Purchase and sale of the Property shall be consummated through an escrow (“Escrow”) to be opened with Escrow Holder within two
(2) business days after the execution of this Agreement by Seller and Buyer. This Agreement shall be considered as the Escrow instructions between the parties, with such further consistent instructions as Escrow Holder shall require in order to
clarify its duties and responsibilities. If Escrow Holder shall require further Escrow instructions, Escrow Holder may prepare such instructions on its usual form. Such further instructions shall, so long as not inconsistent with the terms of this
Agreement, be promptly signed by Buyer and Seller and returned to Escrow Holder within three (3) business days of receipt thereof. In the event of any conflict between the terms and conditions of this Agreement and any further Escrow instructions,
the terms and conditions of this Agreement shall control. 
 

	 	6.2.  Close	 	of Escrow. 

 
Escrow shall close at a mutually agreeable date (“Close of Escrow”) within thirty (30) days after the expiration
of the Due Diligence Period. 
 

8 

 

	 	6.3.	 	Buyer Required to Deliver. 

 
Buyer shall deliver to Escrow the following: 
 

	 	6.3.1.	 	In accordance with Paragraph 2, the Deposit; 

 

	 	6.3.2.	 	On or before Close of Escrow, the balance of the Purchase Price; provided, however that Buyer shall not be required to deposit the balance of the Purchase Price into
Escrow until Buyer has been notified by Escrow Holder that (i) Seller has delivered to Escrow each of the documents and instruments to be delivered by Seller in connection with Buyer’s purchase of the Property, (ii) Title Company has committed
to issue and deliver the Title Policy to Buyer, and (iii) the only impediment to Close of Escrow is delivery of such amount by or on behalf of Buyer; 

 

	 	6.3.3.	 	On or before Close of Escrow, such other documents as Escrow Holder may require from Buyer in order to issue the Title Policy; and 

 

	 	6.3.4.	 	An original Assignment and Assumption Agreement, duly executed by Buyer assuming all of Seller’s right, title and interest in and to the Leases, the Permits and
the Contracts from and after the Close of Escrow. 

 

	 	6.4.	 	Seller Required to Deliver. 

 
On or before Close of Escrow, Seller shall deliver to Escrow or Buyer, as applicable, the following: 
 

	 	6.4.1.	 	A duly executed and acknowledged Special Warranty Deed, conveying fee title to the Real Property in favor of Buyer; 

 

	 	6.4.2.	 	A completed Certificate of Non-Foreign Status, duly executed by Seller under penalty of perjury; 

 

	 	6.4.3.	 	Reserved; 

 

	 	6.4.4.	 	A Bill of Sale, for the Personal Property, if any, in favor of Buyer and duly executed by Seller; 

 

9 

 

	 	6.4.5.	 	Such other documents as Escrow Holder may require from Seller in order to issue the Title Policy; 

 

	 	6.4.6.	 	Tenant’s estoppel certificates as required by and provided for in Paragraph 4.2 and SNDA as required by and provided for in Paragraph 9.1.7;

 

	 	6.4.7.	 	An original Assignment and Assumption Agreement duly executed and acknowledged by Seller, assigning all of Seller’s interest in and to the Leases, Contracts and
Permits to Buyer from and after the Close of Escrow; 

 

	 	6.4.8.	 	To Buyer, all keys to all buildings and other improvements located on the Real Property, combinations to any safes thereon, and security devices therein in
Seller’s possession; 

 

	 	6.4.9.	 	A letter from Seller addressed to each Tenant informing such Tenant of the change in ownership as set forth; 

 

	 	6.4.10.	 	To Buyer, the original Leases; and 

 

	 	6.4.11.	 	To Buyer, all records and files relating to the management or operation of the Real Property, including, without limitation, all insurance policies, all security
contracts, all tenant files (including correspondence), property tax bills, and all calculations used to prepare statements of rental increases under the Leases and statements of common area charges, insurance, property taxes and other charges which
are paid by Tenants of the Real Property. 

 

	 	6.4.12.	 	A certification from Stoner & Associates, Surveyors, setting forth that the parcels of real property comprising “Swindell’s Subdivision No. 2” and
“Plantation Plaza” are contiguous without any hiatus, interruption or impairment to the legal description thereof. 

 

	 	6.5.	 	Buyer’s Costs. 

 
Buyer shall pay the following: 
 

	 	6.5.1.	 	One-half (1/2) of Escrow Holder’s fee, costs and expenses; and 

 

10 

 

	 	6.5.2.	 	All other costs customarily borne by purchasers of real property in Broward County, Florida. 

 

	 	6.6.	 	Seller’s Costs. 

 
Seller shall pay the following: 
 

	 	6.6.1.	 	One-half (1/2) of Escrow Holder’s fees, costs and expenses; 

 

	 	6.6.2.	 	The cost of recording the Deed and any transfer tax; 

 

	 	6.6.3.	 	Escrow Holder premium for the Title Policy; and 

 

	 	6.6.4.	 	All other costs customarily borne by sellers of real property in Broward County, Florida. 

 

	 	6.7.	 	Prorations. 

 

	 	6.7.1.	 	Real property taxes, personal property taxes, assessments, rents, and CAM expenses shall be prorated through Escrow between Buyer and Seller as of Close of Escrow.
All security deposits shall be paid over to Buyer. Rents and CAM expenses shall be approved by Buyer prior to Close of Escrow. Any delinquent rents attributable to periods prior to the Close of Escrow and which are collected by Buyer or Seller shall
be retained by or paid to Seller; provided, however, that any amounts collected by Buyer or Seller shall be first applied to any rents then due to Buyer and, if collected by Seller, remitted to Buyer for such purpose. Seller shall have the right to
pursue any Tenant for delinquent rent, but shall not (a) cause Tenant to be delinquent for their current rent or become financially unstable or (b) have the right to seek eviction of the Tenant by unlawful detainer or other means. Tax and assessment
prorations shall be based on the latest available tax bill. If after Close of Escrow either party receives any further or supplemental tax bill relating to any period prior to Close of Escrow, the recipient shall promptly deliver a copy of such tax
bill to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax bill Buyer and Seller shall deliver to the taxing authority their respective shares of such tax bill, prorated as of Close of Escrow. All
prorations shall be based on a 360-day year. 

 

11 

Any percentage rents due or paid under any of the Leases (“Percentage Rent”)
shall be prorated between Buyer and Seller outside of Escrow as of the date of Close of Escrow on a Lease-by-Lease basis, as follows; (a) Seller shall be entitled to receive the portion of the Percentage Rent under each Lease for the Lease Year in
which Close of Escrow occurs, which portion shall be the ratio of the number of days of said Lease Year in which Seller was Landlord under Lease to the total number of days in said Lease Year, and (b) Buyer shall receive the balance of Percentage
Rent paid under each Lease for the lease Year. As used herein, the term “Lease Year” means the twelve (12) month period as to which annual Percentage Rent is owed under each Lease. Upon receipt by either Buyer or Seller of any gross sales
reports (“Gross Sales Reports”) and/or any full or partial payment of Percentage Rent from any tenant of the Property, the party receiving the same shall promptly provide to the other party a copy of the Gross Sales Report and/or a check
for the other party’s prorata share of the Percentage Rent within five (5) days of the receipt thereof. Nothing contained herein shall be deemed or construed to require either Buyer to Seller to pay to the other party its prorata share of the
percentage rent prior to receiving the percentage rent from the Tenant, and the acceptance or negotiation of any check for Percentage Rent by either party shall not be deemed a waiver of that party’s right to contest the accuracy or amount of
the Percentage Rent paid by the tenant. NOTWITHSTANDING ANYTHING TO THE CONTRARY, HOWEVER, THE PARTIES HAVE AGREED THAT SELLER SHALL GIVE BUYER A CREDIT AT CLOSING FOR PREPAID RENT IN THE AMOUNT OF THREE HUNDRED ONE THOUSAND, TWO HUNDRED SIX
DOLLARS ($301,206.00). 
 

	 	6.7.2.	 	All leasing commissions owing and tenant improvements with respect to the Real Property entered into prior to execution of the Agreement including, but not limited
to, commissions for lease renewals and expansion options, shall be paid by Seller, and Seller shall indemnify and hold Buyer harmless for lease commission claims brought against the Real Property arising therefrom. All leasing commissions and tenant
improvement costs for new Leases executed after the date of this Agreement shall be prorated 

 

12 

	 	 
between Buyer and Seller as their respective periods of ownership bears to the primary term of the new Lease subject, in all events, to the
prior approval of said Leases as herein provided by Buyer pursuant to Paragraph 7.3. 

 

	 	6.7.3.	 	Seller agrees to indemnify and hold Buyer harmless from any and all liabilities, claims, demands, suits, and judgments, of any kind or nature, including court costs
and reasonable attorney fees (except those items which under the terms of this Agreement specifically become the obligation of Buyer), brought by third parties and based on events occurring on or before the Close of Escrow and which are in any way
related to the Property. 

 

	 	6.7.4.	 	Buyer agrees to indemnify and hold Seller harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or nature, including court
costs and reasonable attorneys fees, brought by third parties and based on events occurring subsequent to the Close of Escrow and which are in any way related to the Property. 

 
The provisions of this Section 6.7 shall survive the Close of
Escrow. 
 

	 	6.8.	 	Determination of Dates of Performance. 

 
The parties hereto, and the Title Agent, have mutually prepared and delivered a schedule which states each of the following dates:

 

	 	6.8.1.	 	The Effective Date pursuant to Paragraph 2.1.1; 

 

	 	6.8.2.	 	The date of receipt of the Title Documents by Buyer; 

 

	 	6.8.3.	 	The date by which title must be approved by Buyer pursuant to Paragraph 3.2; 

 

	 	6.8.4.	 	The Delivery Date pursuant to Paragraph 4.1; 

 

	 	6.8.5.	 	The date by which the Inspections and Due Diligence Items must be approved by Buyer pursuant to Paragraph 5.2; 

 

	 	6.8.6.	 	 The date by which the amounts described in Paragraph 2 must be deposited by Buyer, for which determination Escrow Holder shall assume satisfaction of the
condition 

 

13 

	 	 
expressed in Paragraph 2 on the last date stated for its satisfaction; and 

 

	 	6.8.7.	 	The date of Close of Escrow pursuant to Paragraph 6.2. 

 
If any events which determine any of the aforesaid dates occur on a date other than the date specified or assumed for its occurrence in
this Agreement, parties, and the Title Agent, shall amend the schedule and re-determine as appropriate each of the dates of performance in the aforesaid schedule and notify Buyer and Seller of the dates of performance, as redetermined. 
 
THE PARTIES HAVE EXCHANGED THIS SCHEDULE OF EVENTS.

 

	7.	 	Seller Representations, Warranties, and Covenants. 

 

	 	7.1	 	Representations and Warranties. 

 
Seller hereby represents and warrants as of the date hereof and as of the Close of Escrow by appropriate certificate to Buyer as follows:

 

	 	7.1.1.	 	Seller is a limited partnership duly formed and validly existing under the law of the State of Florida. Seller has full power and authority to enter into this
Agreement, to perform this Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement and all documents contemplated hereby by Seller have been duly and validly authorized by all
necessary action on the part of Seller and all required consents and approvals have been duly obtained and will not result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, agreement or instrument to
which Seller is a party or otherwise bound. This Agreement is a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization,
arrangement, moratorium or other similar laws affecting the rights of creditors generally. 

 

	 	7.1.2.	 	 Seller has good and marketable title to the Real Property, subject to the Permitted Exceptions. There are no 

 

14 

outstanding rights of first refusal, rights of reverter or options relating to the Real Property or any interest therein. To Seller’s
knowledge, there are no unrecorded or undisclosed documents or other matters which affect title to the Real Property. Subject to the Leases, Seller has enjoyed the continuous and uninterrupted quiet possession, use and operation of the Real
Property, without material complaint or objection by any person. 
 

	 	7.1.3.	 	Seller is not a “foreign person” within the meaning of Section 1445(f) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

	 	7.1.4.	 	There is one on-site employee of Seller at the Real Property, and following the Close of Escrow, Buyer shall have no obligation to employ or continue to employ any
individual employed by Seller or its affiliates in connection with the Real Property. 

 

	 	7.1.5.	 	Except as set forth on any schedule of litigation delivered pursuant to Paragraph 4.1.9, there are no actions, suits or proceedings pending, or to the best of
Seller’s knowledge, threatened against Seller and affecting any portion of the Real Property, at law or in equity, or before or by any federal, state, municipal, or other governmental court, department, commission, board, bureau, agency, or
instrumentality, domestic or foreign. 

 

	 	7.1.6.	 	Seller has not received any notice of any violations of any ordinance, regulation, law, or statute of any governmental agency pertaining to the Real Property or any
portion thereof. 

 

	 	7.1.7.	 	There are no unpaid bills, claims, or liens in connection with any construction or repair of the Real Property except for those that will be paid in the ordinary
course of business prior to Close of Escrow or which have been bonded over or the payment of which has otherwise been adequately provided for to the satisfaction of Buyer. 

 

	 	7.1.8.	 	Seller has not experienced any material physical or mechanical defects in the buildings or any material settlement or earth movement affecting the Real Property.

 

15 

 

	 	7.1.9.	 	To Seller’s knowledge, the zoning of the Real Property permits the current building and use of the Real Property, and to Seller’s knowledge there is no
pending, or contemplated, rezoning. To Seller’s knowledge, the Real Property complies with all applicable subdivision laws and all local ordinances enacted thereunder and no subdivision or parcel map not already obtained is required to transfer
the Real Property to Buyer. 

 

	 	7.1.10.	 	The information in the Rent Roll is true, correct, and complete. Seller has or will pursuant to Paragraph 4 and Paragraph 7.3 deliver to Buyer true, accurate and
complete copies of all of the Leases and there are no leases, subleases, licenses, occupancies or tenancies in effect pertaining to any portion of the Real Property, and no persons, tenants or entities occupy space in the Real Property, except as
stated in the Rent Roll. There are no options or rights to renew, extend or terminate the Leases or expand any Lease premises, except as shown in the Rent Roll and the Leases. No brokerage commission or similar fee is due or unpaid by Seller with
respect to any Lease, and there are no written or oral agreements that will obligate Buyer, as Seller’s assignee, to pay any such commission or fee under any Lease or extension, expansion or renewal thereof to the best of Seller’s
knowledge. The Leases and any guaranties thereof are in full force and effect, and are subject to no defenses, setoffs or counterclaims for the benefit of the Tenants thereunder. Neither Seller nor, to Seller’s knowledge, any Tenant is in
default under its Lease. Seller is in full compliance with all of the landlord’s obligations under the Leases, and Seller has no obligation to any Tenant under the Leases to further improve such Tenant’s premises or to grant or allow any
rent or other concessions. No rent or other payments have been collected in advance for more than one (1) month and no rents or other deposits are held by Seller, except the security deposits described on the Rent Roll and rent for the current
month. Each rental concession, rental abatement or other benefit granted to Tenants under the Leases will have been fully utilized prior to the Close of Escrow. 

 

16 

 

	 	7.1.11.	 	To Seller’s knowledge, there are no presently pending or contemplated proceedings to condemn the Real Property or any part of it. 

 

	 	7.1.12.	 	To Seller’s knowledge, all water, sewer, gas, electric, telephone and drainage facilities, and all other utilities required by law or by the normal operation of
the Real Property are connected to the Real Property and are adequate to service the Real Property in its present use and normal usage by the Tenants and occupants of the Real Property and are in good working order and repair.

 

	 	7.1.13.	 	To Seller’s knowledge, Seller has all licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way
which are required in order to continue the present use of the Real Property and ensure adequate vehicular and pedestrian ingress and egress to the Real Property. 

 

	 	7.1.14.	 	Except for the Leases and the Contracts, there are no agreements or other obligations which may affect the current use of the Real Property. Seller has fully
performed all of the obligations required to be performed by Seller under the Contracts, and to Seller’s knowledge, the other parties to the same are not in default thereunder. 

 

	 	7.1.15.	 	The operating statements furnished to Buyer in connection with or pursuant to this Agreement (a) accurately reflect the financial condition of the Real Property as
of the date thereof and (b) do not fail to state any material liability, contingent or otherwise, or any other facts the omission of which would be misleading. 

 

	 	7.1.16.	 	Seller has no knowledge of nor received any written notice of violation issued pursuant to any environmental law with respect to the Real Property or any use or
condition thereof. In addition Seller has no knowledge that there are aboveground or underground storage tanks located on the Real Property. 

 

	 	7.1.17.	 	 Seller has not released and, to the best of Seller’s knowledge, there has been no release of, any pollutant or hazardous substance of any kind onto or under
the Real 

 

17 

	 	 
Property that affects the Real Property or that would result in the prosecution of any claim, demand, suit, action or administrative
proceeding against Buyer as owner of the Real Property based on any environmental requirements of state, local or federal law including, but not limited to, the Comprehensive Environmental Response Compensation and Liability Act of 1980, U.S.C. 9601
et seq., except as noted in environmental reports. 

 

	 	7.2.	 	Indemnity; Survival. 

 
The foregoing representations and warranties of Seller are made by Seller as of the date hereof and again as of Close of Escrow and shall
survive the Close of Escrow for a period of one year and shall not be merged as of the date of the Close of Escrow hereunder. Seller shall indemnify and defend Buyer against and hold Buyer harmless from, and shall be responsible for all claims,
demands, liabilities, losses, damages, costs and expenses, including reasonable attorney’s fees, that may be suffered or incurred by Buyer, including any third party due diligence expenses incurred by Buyer, if any representation or warranty
made by Seller is untrue or incorrect in any material respect when made. The terms of Seller’s indemnity set forth above with respect to the representations and warranties made herein shall survive for a period of one year following the Close
of Escrow. 
 

	 	7.3.	 	Covenants of Seller.    Seller hereby covenants from and after the Effective Date as follows: 

 

	 	7.3.1.	 	To cause to be in force fire and extended coverage insurance upon the Real Property, and public liability insurance with respect to damage or injury to persons or
property occurring on the Real Property in at least such amounts, and with the same deductibles, as are maintained by Seller on the date hereof. 

 

	 	7.3.2.	 	That any building constituting an improvement on the Real Property will be in the same physical condition at the Close of Escrow that it was at the date of
Buyer’s inspection, normal wear and tear excepted, and that all normal maintenance has been conducted from and after the Effective Date in the same fashion as prior to the Effective Date. 

 

18 

 

	 	7.3.3.	 	To not enter into any new lease with respect to the Real Property, without Buyer’s prior written consent, which shall not be unreasonably withheld. Exercise of
a mandatory renewal option shall not be considered a new lease. To the extent specifically disclosed to Buyer in connection with any request for approval, any brokerage commission and the cost of Tenant improvements or other allowances payable with
respect to a new Lease shall be prorated between Buyer and Seller in accordance with their respective periods of ownership as it bears to the primary term of the new Lease. Further, Seller will not modify or cancel any existing Lease covering space
in the Real Property without first obtaining the written consent of Buyer which shall not be unreasonably withheld. Buyer shall have five (5) business days following receipt of a request for any consent pursuant to this paragraph in which to approve
or disapprove of any new Lease or any modification or cancellation of any existing Lease. Failure to respond in writing within said time period shall be deemed to be consent. Seller’s execution of a new lease or modification or cancellation of
an existing Lease following Buyer’s reasonable refusal to consent thereto shall constitute a default hereunder. 

 

	 	7.3.4.	 	To not sell, assign, or convey any right, title, or interest whatsoever in or to the Real Property, or create or permit to attach any lien, security interest,
easement, encumbrance, charge, or condition affecting the Real Property (other than the Permitted Exceptions). 

 

	 	7.3.5.	 	To not, without Buyer’s written approval, (a) amend or waive any right under any Contract, or (b) enter into any service, operating or maintenance agreement
affecting the Real Property that would survive the Close of Escrow. 

 

	 	7.3.6.	 	To fully and timely comply with all obligations to be performed by it under the Leases and Contracts, and all Permits, licenses, approvals and laws, regulations and
orders applicable to the Real Property. 

 

19 

 

	 	7.3.7.	 	To provide Buyer with monthly rent rolls containing the same information in its rent roll delivered pursuant to Paragraph 4.1.3. 

 

	 	7.3.8.	 	To provide Buyer with copies of (a) any default letters sent to Tenants and, (b) any copies of correspondence received from a Tenant that it is “going
dark” or seeking to re-negotiate its lease and (c) notices of bankruptcy filings received with respect to any Tenant. 

 

	8.	 	Buyer Representations and Warranties. 

 
Buyer hereby represents and warrants to Seller as of the date hereof and as of the Close of Escrow by appropriate certificate that:

 
Buyer is a limited liability company duly
organized and validly existing under the laws of the Commonwealth of Virginia. Buyer has full power and authority to enter into this Agreement, to perform this Agreement and to consummate the transactions contemplated hereby. The execution, delivery
and performance of this Agreement and all documents contemplated hereby by Buyer have been duly and validly authorized by all necessary action on the part of Buyer and all required consents and approvals have been duly obtained and will not result
in a breach of any of the terms or provisions of, or constitute a default under, any indenture, agreement or instrument to which Buyer is a party or otherwise bound. This Agreement is a legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. 
 

	9.	 	Conditions Precedent to Close of Escrow. 

 

	 	9.1.	 	Conditions Precedent. 

 
The obligations of Buyer to purchase the Property pursuant to this Agreement shall, at the option of Buyer, be subject to the following
conditions precedent: 
 

	 	9.1.1.	 	 All of the representations, warranties and agreements of Seller set forth in this Agreement shall be true and correct in all material respects as of the date
hereof and as of the Close of Escrow, and Seller shall not have on or prior to the 

 

20 

	 	 
Close of Escrow, failed to meet, comply with or perform in any material respect any covenants or agreements on Seller’s part as required
by the terms of this Agreement. 

 

	 	9.1.2.	 	There shall be no change in the matters reflected in the Title Documents, and there shall not exist any encumbrance or title defect affecting the Real Property not
described in the Title Documents except for the Permitted Exceptions or matters to be satisfied at the Close of Escrow. 

 

	 	9.1.3.	 	Unless Seller receives notice from Buyer at least thirty (30) days prior to the Close of Escrow, effective as of the Close of Escrow, any management agreement
affecting the Real Property shall be terminated by Seller and any and all termination fees incurred as a result thereof shall be the sole obligation of Seller. 

 

	 	9.1.4.	 	Seller shall have operated the Real Property from and after the date hereof in substantially the same manner as prior thereto. 

 

	 	9.1.5.	 	Seller shall deliver to Buyer copies of Tenant insurance certificates in Seller’s possession or control. 

 

	 	9.1.6.	 	No Major Tenant shall be in default under its Lease nor shall any Major Tenant have given notice that it is discontinuing operations at the Real Property nor shall a
Major Tenant filed bankruptcy or sought any similar debtor protective measure or be the subject of an involuntary bankruptcy. 

 

	 	9.1.7.	 	If Buyer’s lender requires the execution of subordination, non-disturbance and attornment agreements (“SNDAs”) from Tenants as a condition to closing
the loan to Buyer, Buyer’s obligations under this Agreement shall be subject to the delivery of SNDAs in form and substance acceptable to Buyer’s lender. 

 

	 	9.1.8.	 	 If any Tenant security deposit is in a form other than cash, the instrument constituting the security deposit must be reissued in Buyer’s name as of the
Close of Escrow or else a cash escrow equal to the amount of the security deposit 

 

21 

	 	 
will be established at the Close of Escrow until the instrument is reissued in Buyer’s name. 

 

	 	9.1.9.	 	The parties must have closed escrow simultaneously on the transaction for the sale by Seller to Buyer of the real property known as “Plantation Plaza.”

 

	 	9.2.	 	Effect of Failure. 

 
If Buyer notifies Seller in writing of a failure to satisfy the conditions precedent set forth in this Paragraph 9, Seller may, within
five (5) days after receipt of Buyer’s notice, agree to satisfy the condition by written notice to Buyer, and Buyer shall thereupon be obligated to close the transaction provided (a) Seller so satisfies such condition and (b) no such right to
cure shall extend the Close of Escrow. If Seller fails to agree to cure or fails to cure such condition by the Close of Escrow, this Agreement shall be automatically terminated, the Deposit shall be returned to Buyer without any further action
required from either party and neither party shall have any continuing obligations hereunder; provided, however, if such failure constitutes a breach or default of its covenants, representations or warranties Seller shall remain liable for such
breach or default as otherwise set forth in this Agreement. 
 

	10.	 	Damage or Destruction Prior to Close of Escrow. 

 
In the event that the Real Property should be damaged by any casualty prior to Close of Escrow, then Seller shall promptly provide Buyer
with written notice of such casualty. If the cost of repairing such damage, as estimated by an architect or contractor retained pursuant to the mutual agreement of the parties (the “Cost of Repairs”), is (a) less than One Hundred Thousand
Dollars ($100,000), the Close of Escrow shall proceed as scheduled and any insurance proceeds, plus the cash amount of any associated deductible, shall be paid over to Buyer; or (b) greater than One Hundred Thousand Dollars ($100,000), then Buyer
may in its discretion either (i) elect to terminate this Agreement, in which case the Deposit shall be returned to Buyer without any further action required from either party and neither party shall have any further obligation to the other or (ii)
proceed to Close of Escrow in which event any insurance proceeds, plus the cash amount of any associated deductible, shall be paid over to Buyer. In the event that the casualty is uninsured, the Buyer may terminate this Agreement unless the Buyer
receives a credit 
 

22 

against the Purchase Price equal to the Cost of Repairs. The foregoing notwithstanding, in the event any casualty results in the cancellation
of, or rental abatement under, any Lease, Buyer shall have the option to terminate this Agreement without regard to the cost of repairs. Any notice required to terminate this Agreement pursuant to this Paragraph shall be delivered no later than
thirty (30) days following Buyer’s receipt of Seller’s notice of such casualty. 
 

	11.	 	Eminent Domain. 

 
If, before the Close of Escrow, proceedings are commenced for the taking by exercise of the power of eminent domain of all or a material
part of the Real Property which, as reasonably determined by Buyer, would render the Real Property unacceptable to Buyer or unsuitable for Buyer’s intended use, Buyer shall have the right, by giving written notice to Seller within thirty (30)
days after Seller gives notice of the commencement of such proceedings to Buyer, to terminate this Agreement, in which event this Agreement shall automatically terminate, the Deposit shall be returned to Buyer without any further action required
from either party and neither party shall have any continuing obligations hereunder. If, before the Close of Escrow, proceedings are commenced for the taking by exercise of the power of eminent domain of less than a material part of the Real
Property, or if Buyer has the right to terminate this Agreement pursuant to the preceding sentence but Buyer does not exercise such right, then this Agreement shall remain in full force and effect and, on the Close of Escrow, the condemnation award
(or, if not theretofore received, the right to receive such portion of the award) payable on account of the taking shall be assigned, or paid to, Buyer. Seller shall give written notice to Buyer within three (3) business days after Seller’s
receiving notice of the commencement of any proceedings for the taking by exercise of the power of eminent domain of all or any part of the Real Property. The foregoing notwithstanding, in the event the taking results in the cancellation of, or rent
abatement under, any Lease, Buyer shall have the option to terminate this Agreement. 
 

	12.	 	Notices. 

 
All notices, demands, or other communications of any type given by any party hereunder, whether required by this Agreement or in any way
related to the transaction contracted for herein, shall be void and of no effect unless given in accordance with the provisions of this Paragraph. All notices shall be in writing and delivered to the person to whom the 

 

23 

notice is directed, either (a) in person, (b) by United States Mail, as a registered or certified item, return receipt requested, (c) by
telecopy or (d) by a nationally recognized overnight delivery courier. Notices delivered by telecopy or overnight courier shall be deemed received on the business day following transmission. Notices delivered by certified or registered mail shall be
deemed delivered three (3) days following posting. Notices shall be given to the following addresses: 
 

	         Seller:
	  	 Procacci Financial Group, Ltd.
 c/o Philip J. Procacci
 5082 Coconut Creek Parkway
 Margate, FL 33063
 (954) 979-5082
 (954) 979-7765 Fax

	
	         With Required Copy
to:
	  	 Michael Colodny, Esq.
 Colodny, Fass & Talenfeld, P.A.
 2000 West Commercial Blvd
 Suite 232
 Ft. Lauderdale, FL 33309
 (954) 492-4010
 (954) 492-1144
Fax

	
	         Buyer:
	  	 Anthony W. Thompson
 GREIT—DCF Campus, LLC
 c/o Triple Net Properties, LLC
 1551 N. Tustin Avenue, Suite 650
 Santa Ana, CA 92705
 (714) 667-8252
 (714) 667-6860
Fax

	
	         With Required Copy
to:
	  	 Louis J. Rogers, Esquire
 Hirschler Fleischer
 701 East Byrd Street, 15th Floor
 Richmond, VA 23219
 (804) 771-9567
 (804) 644-0957 Fax

 

	13.	 	Remedies. 

 

	 	13.1.	 	 Defaults by Seller.    If there is any default by Seller under this Agreement, following notice to Seller and seven (7) days
thereafter during which period Seller may cure the default, Buyer may at its 

 

24 

	 	 
option, either (a) declare this Agreement terminated in which case the Deposit shall be returned to Buyer without any further action required
from either party, and bring an action for any damages incurred by Buyer or (b) treat the Agreement as being in full force and effect and bring an action against Seller for specific performance. The foregoing notwithstanding, no right to cure shall
extend the Close of Escrow. 

 

	 	13.2.	 	Defaults by Buyer.    If there is any default by Buyer under this Agreement, following notice to Buyer and seven (7) days, during which
period Buyer may cure the default, Seller may, as its sole remedy, declare this Agreement terminated, in which case the Deposit shall be paid to Seller as liquidated damages and each party shall thereupon be relieved of all further obligations and
liabilities, except any which survive termination. The foregoing notwithstanding, no right to cure shall extend the Close of Escrow. 

 
In the event this Agreement is terminated due to the default of Buyer hereunder, Buyer shall, in addition, deliver to Seller, at no cost
to Seller, the Due Diligence Items. 
 

	14.	 	Assignment. 

 
Buyer may assign any or all of its rights and obligations under this Agreement to any one or more persons or entities upon notice to
Seller; provided however, that absent the express agreement of Seller, no such assignment shall release Buyer from its liabilities hereunder. 
 

	15.	 	Interpretation and Applicable Law. 

 
This Agreement shall be construed and interpreted in accordance with the laws of the State where the Real Property is located. Where
required for proper interpretation, words in the singular shall include the plural; the masculine gender shall include the neuter and the feminine, and vice versa. The terms “successors and assigns” shall include the heirs, administrators,
executors, successors, and assigns, as applicable, of any party hereto. 
 

	16.	 	Amendment. 

 
This Agreement may not be modified or amended, except by an agreement in writing signed by the parties. The parties may waive any of the
conditions contained herein or any of the obligations of the other 

 

25 

party hereunder, but any such waiver shall be effective only if in writing and signed by the party waiving such conditions and obligations.

 

	17.	 	Attorney’s Fees. 

 
In the event it becomes necessary for either party to file a suit to enforce this Agreement or any provisions contained herein, the
prevailing party shall be entitled to recover, in addition to all other remedies or damages, reasonable attorneys’ fees and costs of court incurred in such suit. 
 

	18.	 	Entire Agreement; Survival. 

 
This Agreement (and the items to be furnished in accordance herewith) constitutes the entire agreement between the parties pertaining to
the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings of the parties in connection therewith. No representation, warranty, covenant, agreement, or condition not expressed in this Agreement shall be
binding upon the parties hereto nor shall affect or be effective to interpret, change, or restrict the provisions of this Agreement. The obligations of the parties hereunder and all other provisions of this Agreement shall survive the Close of
Escrow or earlier termination of this Agreement, except as expressly limited herein. 
 

	19.	 	Counterparts. 

 
This Agreement may be executed in any number of counterparts, all of which when taken together shall constitute the entire agreement of
the parties. 
 

	20.	 	Acceptance. 

 
Time is of the essence of this Agreement. If the final date of any period falls upon a Saturday, Sunday, or legal holiday under the
Federal law or laws of the States of Florida and California, then in such event the expiration date of such period shall be extended to the next day which is not a Saturday, Sunday, or legal holiday under Federal law or the laws of the States of
Florida and California. 
 

	21.	 	Real Estate Commission. 

 
Seller and Buyer each represent and warrant to the other that neither Seller nor Buyer has contacted or entered into any agreement with
any real estate broker, agent, finder or any other party in connection with 

 

26 

this transaction, and that neither party has taken any action which would result in any real estate broker’s, finder’s or other
fees or commissions being due and payable to any party with respect to the transaction contemplated hereby, except that Seller has contracted with Marcus & Millichap as its broker and will pay a commission to said broker in the amount of One
Hundred Thirty One Thousand, Three Hundred Dollars ($131,300.00) and a commission of One Hundred Thousand Dollars ($100,000.00) to Triple Net Properties Realty, Inc. if, but only if, the Close of Escrow occurs pursuant to this Agreement. Such
commission shall be payable upon the Close of Escrow from the proceeds of the Purchase Price deposited by Buyer. Each party hereby indemnifies and agrees to hold the other party harmless from any loss, liability, damage, cost, or expense (including
reasonable attorneys’ fees) resulting to the other party by reason of a breach of the representation and warranty made by such party in this Paragraph. 
 

	22.	 	Financing Contingency. 

 
THIS FINANCING CONTINGENCY HAS BEEN WAIVED. 
 

	23.	 	Cooperation with S-X 3-14 Audit. 

 
The Seller acknowledges that Buyer intends to assign all of its rights, title and interest in and to this Agreement. The assignee may be a
publicly registered company (“Registered Company”) promoted by the Buyer. The Seller acknowledges that it has been advised that if the purchaser is a Registered Company, the assignee is required to make certain filings with the Securities
and Exchange Commission (the “SEC Filings”) that related to the most recent pre-acquisition fiscal year (the “Audited Year”) for the Property. To assist the assignee in preparing the SEC Filings, the Seller agrees to provide the
assignee with the following: 
 

	 	1.	 	Access to bank statements for the Audited year; 

 

	 	2.	 	Rent Roll as of the end of the Audited Year; 

 

	 	3.	 	Operating Statements for the Audited Year; 

 

	 	4.	 	Access to the general ledger for the Audited Year; 

 

	 	5.	 	Cash receipts schedule for each month in the Audited Year; 

 

27 

 

	 	6.	 	Access to invoice for expenses and capital improvements in the Audited Year; 

 

	 	7.	 	Copies of all insurance documentation for the Audited Year; 

 

	 	8.	 	Copies of accounts receivable aging as of the end of the Audited Year and an explanation for all accounts over 30 days past due as of the end of the Audited Year;
and 

 

	 	9.	 	Signed representation letter at the end of the field work. 

 
The provisions of this Paragraph 23 shall survive the Close of Escrow. 
 

	24.	 	Cooperation with Section 1031 Exchange. 

 
Buyer acknowledges that Seller may elect to use this transaction as part of a Section 1031 tax-deferred exchange. In connection with such
exchange, Buyer agrees to cooperate in effecting the exchange in accordance with Section 1031 of the Internal Revenue Code, including execution of any documents that may be reasonably necessary to effect the exchange provided that the Seller shall
bear all additional costs incurred in connection with the exchange and that the Buyer shall not be obligated to delay the closing of the transaction between the parties or to execute any note, contract or other document providing for any personal
liability which will survive the exchange. 
 
THIS
SECTION IS AN INCORPORATION OF THE EXISTING ADDENDUM BETWEEN THE PARTIES. 
 

	25.	 	NO RIGHTS UNDER THE PRIOR AGREEMENT BETWEEN THE PARTIES HAVE BEEN REMOVED FROM THIS AGREEMENT. THIS AGREEMENT, AND THE COMPANION AGREEMENT FOR PLANTATION PLAZA,
TOGETHER CONTAIN THE ENTIRE AGREEMENT PREVIOUSLY MADE BETWEEN THE PARTIES. 

 
THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK 
 

28 

 
SIGNATURE
PAGE FOR AGREEMENT FOR PURCHASE  
AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS 
 
EXECUTED on this          day
of April, 2003. 
 
SELLER: 
 
 

	
	 Procacci Financial Group, Ltd.,
a Florida Limited Partnership

	 By:    Procacci Commercial Realty, Inc.
 Its General Partner         

 

	
	 By:
	 	 /s/    PHILIP J.
PROCACCI        

	 	 	 Philip J. Procacci

	 Title:
	 	 President

 
EXECUTED on this
22 day of April, 2003. 
 
BUYER: 
 
 

	 GREIT—DCF CAMPUS, LLC,
 a Florida limited liability company

 

	 
	 By:
	 	 /s/    ANTHONY W.
THOMPSON        

	 	 	 Anthony W. Thompson
 President

 
ESCROW HOLDER:

 

	 CHICAGO TITLE COMPANY

	
	 By:
	 	

	 Name
	 	 
	 Title
	 	 

 
TITLE AGENT

 

	 FIRST AMERICAN TITLE INSURANCE COMPANY

	
	 By:
	 	 /s/    MIKE
COLODNY        

	 Name:
	 	 Mike Colodny

	 Title:
	 	 Agent

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