Document:

Exhibit 10.1

 

SECOND MODIFICATION AGREEMENT

 

This SECOND MODIFICATION AGREEMENT (this “Agreement”) is made as of July 14, 2006 by and among (a) Mack-Cali Realty, L.P. (the “Borrower”), (b) the Lenders party hereto, and (c) JPMorgan Chase Bank, N.A. as Administrative Agent (in such capacity, the “Administrative Agent”) for the Lenders.

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to a Second Amended and Restated Revolving Credit Agreement dated as of November 23, 2004, as modified by the Extension and Modification Agreement dated as of September 16, 2005 (the “Credit Agreement”), pursuant to which the Lenders have agreed to make loans to the Borrower on the terms and conditions set forth therein; and

WHEREAS, the Borrower has requested that the Lenders make certain modifications to the Credit Agreement, and the Lenders party hereto are willing to so modify the Credit Agreement on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and fully intending to be legally bound by this Agreement, the parties hereto agree as follows:

1.           Definitions.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement.

2.           Modifications to Credit Agreement.  As of the Effective Date (as defined in §4 hereof) the Credit Agreement is modified as follows:

2.1.       Modifications to §1.1.  §1.1. of the Credit Agreement is hereby modified as follows:

2.1.1.    The definition of the term “Acquisition Property” is hereby modified by restating such definition in its entirety to read as follows:

“Acquisition Property.  Any Real Estate that has been owned for fewer than six (6) fiscal quarters, unless the Borrower has made a one-time election to no longer treat such Real Estate as an Acquisition Property for purposes of this Agreement.”

 

 

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2.1.2.    The definition of the term “Capitalized Unencumbered Property NOI” is hereby modified by restating such definition in its entirety to read as follows:

“Capitalized Unencumbered Property NOI.  As of any date of determination with respect to an Unencumbered Property (other than an Acquisition Property), an amount equal to the Revised Adjusted Unencumbered Property NOI for such Unencumbered Property for the most recent two (2) complete fiscal quarters multiplied by two (2), with the product being divided by 8.25%, except with respect to CBD Properties, which shall be divided by 7.75%; provided that if such Unencumbered Property has been owned for fewer than two (2) complete fiscal quarters, the Revised Adjusted Unencumbered Property NOI for such Unencumbered Property shall be calculated by using the actual
results for the period that such Unencumbered Property has been owned and adjusting such results for a period of two (2) complete fiscal quarters.”

2.1.3.    The definition of the term “Consolidated Capitalized NOI” is hereby modified by restating such definition in its entirety to read as follows:

“Consolidated Capitalized NOI.  As of any date of determination, an amount equal to Revised Consolidated Adjusted Net Income for the most recent two (2) completed fiscal quarters multiplied by two (2), with the product being divided by 8.25%, except with respect to CBD Properties, which shall be divided by 7.75%; provided that if any Real Estate has been owned for fewer than two (2) complete fiscal quarters, the Revised Consolidated Adjusted Net Income for such Real Estate shall be calculated by using the actual results for the period that such Real Estate has been owned and adjusting such results for a period of two (2) complete
fiscal quarters.”

2.1.4.    The definition of the term “Consolidated Total Capitalization” is hereby modified by restating such definition in its entirety to read as follows:

“Consolidated Total Capitalization.  As of any date of determination, with respect to MCRC, the Borrower and their respective Subsidiaries determined on a consolidated basis in accordance with GAAP, the sum (without double-counting) of (a) Consolidated Capitalized NOI (other than with respect to (1) Acquisition Properties and (2) Real Estate with a negative Consolidated Capitalized NOI), plus (b) the cost of all Acquisition Properties, plus (c) the value of Unrestricted Cash and Cash 

 

-3-

 

Equivalents (excluding until forfeited or otherwise entitled to be retained by the Borrower or its Subsidiaries, tenant security and other restricted deposits), plus (d) the aggregate costs incurred and paid to date by the Borrower and its Subsidiaries with respect to Construction-In-Process, plus (e) the value of Indebtedness of third parties to the Borrower and its Subsidiaries for borrowed money which is secured by mortgage liens on real estate (valued in accordance with GAAP at the book value of such Indebtedness and not then more than 90 days past due or declared by the Borrower or its relevant Subsidiary to be past due), plus (f) the actual net cash investment by the Borrower and its Subsidiaries in any Other Investments (wherein such any Other
Investment (x) does not have any Indebtedness that is then more than 90 days past due or (y) has not been declared to be in default of any monetary or material monetizable obligations), plus (g) the book value of Unimproved Non-Income Producing Land plus (h) the value of Eligible Cash 1031 Proceeds; provided that the value of all permitted investments included within Consolidated Total Capitalization (other than Eligible Cash 1031 Proceeds) shall not exceed the limitations set forth in §9.8 hereof.”

2.1.5.    The following new definition shall be inserted in §1.1 immediately after the definition of “Capitalized Unencumbered Property NOI”:

“CBD Property(ies).  Collectively, (a) any Real Estate listed on Schedule CBD attached hereto, (b) any improved Real Estate which is located in the borough of Manhattan in New York, New York, Jersey City, New Jersey, Washington, D.C., or San Francisco, California which is acquired after June __, 2006, and (c) any other improved Real Estate which is located in markets with characteristics similar to those identified in clause (b) and is designated by the Agent and the Borrower as a CBD Property from time to time.”

2.2.       Modification to §9.6 of Credit Agreement.  §9.6 of the Credit Agreement is hereby modified by restating said §9.6 in its entirety to read as follows:

“§9.6.  Unsecured Indebtedness.  As at the end of any fiscal quarter or other date of measurement, the Borrower shall not permit the ratio of (i) Consolidated Unsecured Indebtedness to (ii) the sum (the “Section 9.6 Sum”) of (a) aggregate Capitalized Unencumbered Property NOI for all Unencumbered Properties (other than (1) Acquisition Properties and (2) Unencumbered Properties with a negative Capitalized Unencumbered Property NOI), plus (b) the cost of all Unencumbered Properties which are Acquisition Properties, plus (c) 

 

-4-

 

the value of all Eligible Cash 1031 Proceeds resulting from the sale of Unencumbered Properties to exceed 60%; provided that such ratio may exceed 60% from time to time so long as (x) such ratio does not exceed 65%, (y) such ratio ceases to exceed 60% within 180 days following each date such ratio first exceeded 60%, and (z) the Borrower provides a certificate in substantially the form of Exhibit O hereto to the Administrative Agent when such ratio first exceeds 60% and when such ratio ceases to exceed 60%.”

2.3.       Schedule CBD.  Schedule CBD attached to this Agreement is hereby added to the Credit Agreement as Schedule CBD thereto.

	
             
  	
            3.
 	
            Provisions Of General Application.
 

3.1.        Representations and Warranties. The Borrower hereby represents and warrants as of the date hereof that (a) each of the representations and warranties of the Borrower contained in the Credit Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with the Credit Agreement or this Agreement are true and correct in all material respects as of the date as of which they were made and are true and correct in all material respects at and as of the date of this Agreement (except to the extent (i) of changes resulting from transactions contemplated or not prohibited by the Credit Agreement or the other Loan Documents, (ii) of changes occurring in the ordinary course of business, or (iii) that such representations
and warranties relate expressly to an earlier date), (b) no Default or Event of Default exists on the date hereof (before and after giving effect to this Agreement), and (c) this Agreement has been duly authorized, executed and delivered by the Borrower and is in full force and effect as of the Effective Date, and the agreements and obligations of the Borrower contained herein constitute the legal, valid and binding obligations of the Borrower, enforceable against it in accordance with its terms, subject only to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and to the fact that the availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

The Borrower hereby further represents and warrants as of the date hereof that the execution, delivery and performance of this Agreement (i) are within the authority of the Borrower, (ii) do not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which the Borrower is subject or any judgment, order, writ, injunction, license or permit applicable to the Borrower, (iii) do not conflict with any provision of the agreement of limited partnership, any certificate of limited partnership, 

 

-5-

 

the charter documents or by-laws of the Borrower or any general partner or other controlling Person thereof, (iv) do not contravene any provisions of, or constitute a default, Default or Event of Default hereunder or a failure to comply with any term, condition or provision of, any other agreement, instrument, judgment, order, decree, permit, license or undertaking binding upon or applicable to the Borrower or any of the Borrower’s properties (except for any such failure to comply under any such other agreement, instrument, judgment, order, decree, permit, license, or undertaking as would not materially and adversely affect the condition (financial or otherwise), properties, business or results of operations of the Borrower, the Operating Subsidiaries or any Guarantor) or result in the creation of any mortgage, pledge, security interest, lien, encumbrance or charge upon any of the
properties or assets of the Borrower, the Operating Subsidiaries or any Guarantor, and (v) do not require (A) the approval or consent of any governmental agency or authority other than those already obtained, or (B) filing with any governmental agency or authority, other than filings which will be made with the SEC when and as required by law.

3.2.        No Other Changes.  Except as otherwise expressly provided or contemplated by this Agreement, all of the terms, conditions and provisions of the Credit Agreement remain unaltered and in full force and effect.  The Credit Agreement and this Agreement shall be read and construed as one agreement.  The making of the modifications in this Agreement does not imply any obligation or agreement by the Administrative Agent or any Lender to make any other amendment, waiver, modification or consent as to any matter on any subsequent occasion.  This Agreement shall be a Loan Document under the Credit Agreement.

3.3.       Governing Law.  This Agreement shall be deemed to be a contract under the laws of the State of New York.  This Agreement and the rights and obligations of each of the parties hereto are contracts under the laws of the State of New York and shall for all purposes be construed in accordance with and governed by the laws of such State (excluding the laws applicable to conflicts or choice of law).

3.4.        Assignment.  This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective permitted successors and assigns.

3.5.        Counterparts.  This Agreement may be executed in any number of counterparts, but all such counterparts shall together constitute but one and the same agreement.  In making proof of this Agreement, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.

 

 

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4.           Effectiveness of this Agreement.  This Agreement shall become effective on the date on which the following conditions precedent are satisfied (such date being hereinafter referred to as the “Effective Date”):

(a)         Execution and delivery to the Administrative Agent by each of the Lenders, the Borrower, the Guarantors and the Administrative Agent of this Agreement.

(b)         Execution and delivery to the Administrative Agent of (i) a certificate of each of the Borrower and MCRC confirming that there have been no changes to their respective charter documents since November 23, 2004, or (ii) if there have been changes to the Borrower’s or MCRC’s charter document since such date, a secretary’s certificate of the Borrower or MCRC certifying as to such changes.

(c)         Delivery to the Administrative Agent of an incumbency certificate of the Borrower and MCRC and of resolutions of the board of directors of MCRC authorizing this Agreement.

(d)         Payment to the Administrative Agent, for the accounts of the Agents and the Lenders, as applicable, all fees due and payable on or before the Effective Date and all expenses due and payable on or before the Effective Date, including, without limitation, reasonable attorneys’ fees and expenses and other costs and expenses incurred in connection with this Agreement.

[Remainder of page left blank intentionally]

 

 

 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement as of the date first set forth above.

 

MACK-CALI REALTY, L.P.

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

By:/s/ Barry Lefkowitz

	
             
 	
            Name:
 	
            Barry Lefkowitz
 	
             

	
             
 	
            Title:
 	
            Executive Vice President
 

and Chief Financial Officer

 

 

 

 

JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent, Swing Lender and Fronting Bank

 

 

By:/s/ Marc E. Costantino

	
             
 	
            Name: Marc E. Costantino
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

BANK OF AMERICA, N.A.

 

 

By:/s/ Charlotte W. Deinhart

	
             
 	
            Name: Charlotte W. Deinhart
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

THE BANK OF NOVA SCOTIA, NEW YORK AGENCY

 

 

By:/s/ Robert Boese

	
             
 	
            Name: Robert Boese
 	
             

	
             
 	
            Title: Managing Director
 

 

 

 

 

 

WACHOVIA BANK, NATIONAL ASSOCIATION

 

 

By: /s/ Cynthia A. Bean

	
             
 	
            Name: Cynthia A. Bean
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 

By: /s/ Christopher B. Wilson

	
             
 	
            Name: Christopher B. Wilson
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

SUNTRUST BANK

 

 

By: /s/ Blake K. Thompson

	
             
 	
            Name: Blake K. Thompson
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION

 

 

By: /s/ J. Richard LItton

	
             
 	
            Name: J. Richard Litton
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

CITICORP NORTH AMERICA, INC.

 

 

By: /s/ Malav Kakad

	
             
 	
            Name: Malav Kakad
 
	
             
 	
            Title: Vice President
 

 

 

 

 

 

US BANK NATIONAL ASSOCIATION

 

 

By: /s/ Walter Whitt

	
             
 	
            Name: Walter Whitt
 	
             

	
             
 	
            Title: Vice President
 

 

 

 

 

 

BANK OF CHINA, NEW YORK BRANCH

 

 

By: /s/ William Smith

	
             
 	
            Name: William Smith
 	
             

	
             
 	
            Title: Deputy General Manager
 

 

 

 

 

 

THE BANK OF NEW YORK

 

 

By: /s/ Rick Laudisi

	
             
 	
            Name: Rick Laudisi
 	
             

	
             
 	
            Title: Managing Director
 

 

 

 

 

 

CHEVY CHASE BANK, F.S.B.

 

 

By: /s/ Dory Halati

	
             
 	
            Name: Dory Halati
 	
             

	
             
 	
            Title: Vice President
 

 

 

 

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

 

By: /s/  Brenda Casey

	
             
 	
            Name: Brenda Casey
 
	
             
 	
            Title: Director
 	
             

 

By:/s/ Joanna Soliman

	
             
 	
            Name: Joanna Soliman
 	
             

	
             
 	
            Title: Assistant Vice President
 

 

 

 

 

 

MIZUHO CORPORATE BANK, LTD.

 

 

By: /s/ Noel Purcell

	
             
 	
            Name: Noel Purcell
 	
             

	
             
 	
            Title: Senior Vice President
 

 

 

 

 

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD. (Successor by merger to UFJ Bank Limited), NEW YORK BRANCH

 

 

By: /s/ James T. Taylor

	
             
 	
            Name: James T. Taylor
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND

 

 

By: /s/ Noelle McGrath

	
             
 	
            Name: Noelle McGrath
 	
             

	
             
 	
            Title: Authorised Signatory
 

 

By: /s/ Carla Ryan

	
             
 	
            Name: Carla Ryan
 	
             

	
             
 	
            Title: Authorised Signatory
 

 

 

 

 

 

COMERICA BANK

 

 

By: /s/ Leslie A. Vogel

	
             
 	
            Name: Leslie A. Vogel
 
	
             
 	
            Title: Vice President
 	
             

 

 

 

 

 

CHANG HWA COMMERCIAL BANK, LTD., NEW YORK BRANCH

 

 

By: /s/ Jim C. Y. Chen

	
             
 	
            Name: Jim C. Y. Chen
 	
             

	
             
 	
            Title: VP & General Manager
 

 

 

 

 

 

FIRST COMMERCIAL BANK, NEW YORK AGENCY

 

 

By: /s/ Bruce M. J. Ju

	
             
 	
            Name: Bruce M. J. Ju
 	
             

	
             
 	
            Title: VP & General Manager
 

 

 

 

 

 

CHIAO TUNG BANK CO., LTD., NEW YORK AGENCY

 

 

By: /s/ Chun-Kai Hu

	
             
 	
            Name: Chun-Kai Hu
 	
             

	
             
 	
            Title: VP & Deputy General Manager
 

 

 

 

 

 

THE ROYAL BANK OF SCOTLAND

 

 

By: /s/ Neil J. Crawford

	
             
 	
            Name: Neil J. Crawford
 	
             

	
             
 	
            Title: Senior Vice President
 

 

 

 

 

 

HUA NAN COMMERCIAL BANK, NEW YORK AGENCY

 

 

By: /s/ Tei-Chin Wang

	
             
 	
            Name: Tei-Chin Wang
 	
             

	
             
 	
            Title: Assistant General Manager
 

 

 

 

 

 

BANK HAPOALIM B.M.

 

 

By: /s/ Lenroy Hackett

	
             
 	
            Name: Lenroy Hackett
 	
             

	
             
 	
            Title: First Vice President
 

 

 

BANK HAPOALIM B.M.

 

 

By: /s/ Marc Bosc

	
             
 	
            Name: Marc Bosc
 	
             

	
             
 	
            Title: Vice President
 

 

 

 

 

 

Each of the undersigned Guarantors hereby acknowledges the foregoing Second Modification Agreement and reaffirms its guaranty of the Obligations (as defined in the Guaranty executed and delivered by such Guarantor) under the Credit Agreement and the other Loan Documents, each as modified hereby or in connection herewith, in accordance with the Guaranty executed and delivered by such Guarantor.

 

MACK-CALI REALTY CORPORATION

 

By: /s/ Barry Lefkowitz

	
             
 	
            Name:
 	
            Barry Lefkowitz
 	
             

	
             
 	
            Title:
 	
            Executive Vice President and
 
	
             
 	
            Chief Financial Officer
 	
             

					

 

 

	
             
 	
            11 COMMERCE DRIVE ASSOCIATES L.L.C.
 

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

SIX COMMERCE DRIVE ASSOCIATES  L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

20 COMMERCE DRIVE ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

CENTURY PLAZA ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

C.W. ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

D.B.C. REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI BUILDING V ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

500 COLUMBIA TURNPIKE ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

ROSELAND II L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

OFFICE ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

600 PARSIPPANY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

400 RELLA REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

VAUGHN PRINCETON ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

MONMOUTH/ATLANTIC REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

JUMPING BROOK REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

COMMERCENTER REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MOUNT AIRY REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

300 TICE REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

BRIDGE PLAZA REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI CW REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

CROSS WESTCHESTER REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

ELMSFORD REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

TALLEYRAND REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

MID-WESTCHESTER REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI MID-WEST REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

SO. WESTCHESTER REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI SO. WEST REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member 

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI WP REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

WHITE PLAINS REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MOORESTOWN REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

PRINCETON CORPORATE CENTER REALTY

ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member 

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

PRINCETON OVERLOOK REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member 

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

BMP SOUTH REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member 

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

LINWOOD REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MOUNTAINVIEW REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

120 PASSAIC STREET L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

M-C PROPERTIES CO. REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI EAST LAKEMONT L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

WESTAGE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

COLLEGE ROAD REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

SKYLINE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MACK-CALI B PROPERTIES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

ONE SYLVAN REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

1717 REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

12 SKYLINE ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

9 CAMPUS REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

MAPLE 6 CAMPUS L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

5/6 SKYLINE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

 

 

 

MACK-CALI MORRIS REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI CAMPUS REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 
	
             
 	
            its general partner
 	
             

 

 

BMP MOORESTOWN REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI TAXTER ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

SYLVAN/CAMPUS REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

	
             
 	
            its general partner
 

 

 

 

 

 

5 WOOD HOLLOW REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

14 COMMERCE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

400 CHESTNUT REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

232 STRAWBRIDGE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

MACK-CALI WILLOWBROOK COMPANY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

 

 

 

TERRI REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

1000 BRIDGEPORT REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

WEST AVENUE REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

KEMBLE PLAZA II REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its manager

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

KNIGHTSBRIDGE REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its manager

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

 

 

 

 

4 GATEHALL REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty. L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation, 
 

its general partner

 

4 PARAGON REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI BRIDGEWATER REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI JOHNSON ROAD L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI SHORT HILLS L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

 

 

MACK-CALI WOODBRIDGE L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner 

 

MONUMENT 150 REALTY L.L.C.

 

	
             
 	
            By:
 	
            Monument Holding L.L.C.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

101 HUDSON STREET ASSOCIATES

 

	
             
 	
            By:
 	
            MC Hudson Holding L.L.C., 
 

its general partner

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

	
             
 	
            By:
 	
            MC Hudson Realty L.L.C.,
 

its general partner

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

 

 

 

 

 

343 THORNALL SPE LLC

 

	
             
 	
            By:
 	
            343 Thornall Holding L.L.C.
 

its sole member

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P., 
 

its non-member manager

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI PROPERTIES CO.

 

	
             
 	
            By:
 	
            Mack-Cali Sub III, Inc., 
 

its general partner

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P.
 

its general partner

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

CAL-TREE REALTY ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack–Cali Sub XV Trust
 

its general partner

 

FIVE SENTRY REALTY ASSOCIATES

L.P.

 

	
             
 	
            By:
 	
            Mack–Cali Sub XV Trust
 

its general partner  

 

MACK-CALI AIRPORT REALTY ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack–Cali Sub XV Trust
 

its general partner

 

 

 

 

 

MACK-CALI PENNSYLVANIA REALTY

ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack–Cali Sub XV Trust
 

its general partner

 

MACK-CALI-R COMPANY NO. 1 L.P.

 

	
             
 	
            By:
 	
            Mack-Cali Sub XV Trust
 

its general partner

 

MAPLE 4 CAMPUS L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc.,
 
	
             
 	
            its general partner
 	
             

 

 

CLEARBROOK ROAD ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc.,
 
	
             
 	
            its general partner
 	
             

 

 

25 COMMERCE REALTY L.L.C.

 

By:  Mack-Cali Texas Property L.P.,

	
             
 	
            its member
 

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc., 
 

its general partner

 

 

 

 

 

 

 

	
             
 	
            600 HORIZON CENTER L.L.C.
 

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc., 
 

its general partner

 

 

	
             
 	
            LITTLETON REALTY ASSOCIATES L.L.C.
 

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc., 
 

its general partner

 

 

	
             
 	
            3 ODELL REALTY L.L.C.
 

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc., 
 

its general partner

 

 

	
             
 	
            4 SENTRY REALTY L.L.C.
 

 

	
             
 	
            By:
 	
            4 Sentry Holding L.L.C.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc.,
 

its general partner

 

 

 

 

 

 

 

3 SKY REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc., 
 

its general partner

 

PARSIPPANY 4/5 REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc.,
 

its general partner

 

6 PARSIPPANY L.L.C.

 

	
             
 	
            By: 
 	
            Mack-Cali Texas Property L.P.,
 

its member

 

	
             
 	
            By:
 	
            Mack-Cali Sub XVII, Inc.,
 

its general partner

 

PHELAN REALTY ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack–Cali Sub VI, Inc.,
 

its general partner

 

795 FOLSOM REALTY ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack-Cali Sub VI, Inc.,
 

its general partner

 

CALI HARBORSIDE (FEE) ASSOCIATES L.P.

 

	
             
 	
            By:
 	
            Mack-Cali Sub X, Inc.,
 

its general partner

 

 

 

 

 

MACK-CALI PLAZA I, L.L.C. (successor by merger to Cali-Harborside Plaza I (Fee) Associates, L.P.)

 

	
             
 	
            By:
 	
            Mack-Cali Realty, L.P., its sole member
 

 

	
             
 	
            By:
 	
            Mack-Cali Realty Corporation,
 

its general partner

 

MACK-CALI PROPERTY TRUST

 

300 HORIZON REALTY L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Property Trust,
 

its member

 

HORIZON CENTER REALTY ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Property Trust,
 

its member

 

M-C CAPITOL ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack–Cali Property Trust,
 

its manager

 

ROSELAND OWNERS ASSOCIATES L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Property Trust,
 

its member

 

 

 

 

SENTRY PARK WEST L.L.C.

 

	
             
 	
            By:
 	
            Mack-Cali Glendale Limited Partnership,
 

its member

 

	
             
 	
            By:  
 	
            Mack-Cali Sub XXII, Inc.,
 

its general partner

 

By: /s/ Barry Lefkowitz

	
             
 	
            Name:
 	
            Barry Lefkowitz
 	
             

	
             
 	
            Title:
 	
            Executive Vice President and
 

Chief Financial Officer of 

each of the above named 

entities

 

 

 

 

 

Mack-Cali Realty Corporation

Schedule CBD

CBD Properties

	
             
 	
             
 	
             
 
	
             
 	
            Property Address
 	
            City/State
 
	
             
 	
             
 	
             
 
	
             
 	
            Harborside Financial Center 1
 	
            Jersey City, NJ
 
	
             
 	
            Harborside Financial Center 2
 	
            Jersey City, NJ
 
	
             
 	
            Harborside Financial Center 3
 	
            Jersey City, NJ
 
	
             
 	
            Harborside Financial Center 4-A
 	
            Jersey City, NJ
 
	
             
 	
            Harborside Financial Center 5
 	
            Jersey City, NJ
 
	
             
 	
            101 Hudson Street
 	
            Jersey City, NJ
 
	
             
 	
             
 	
             
 
	
             
 	
            760 Market Street
 	
            San Francisco, CA
 
	
             
 	
            795 Folsom Street
 	
            San Francisco, CA
 
	
             
 	
            201 South Third Street
 	
            San Francisco, CA
 
	
             
 	
             
 	
             
 
	
             
 	
            1400 L Street
 	
            Washington, DC
 
	
             
 	
            1201 Connecticut Avenue NW
 	
            Washington, DCEXHIBIT 10.1

                            PATENT PURCHASE AGREEMENT

         This PATENT PURCHASE  AGREEMENT  ("Agreement") is entered into on April
16, 2004 ("Effective Date") by and between Buck International LLC with an office
at 171 Main St. #271, Los Altos,  California  94022  ("Purchaser"),  and Arkona,
Inc. with an office at 10542 South Jordan Gateway, Suite 200, South Jordan, Utah
84095 ("Seller"). The parties hereby agree as follows.

1.       BACKGROUND

1.1      Seller owns certain United States Letters  Patents and/or  applications
         for United States Letters  Patents and/or related  foreign  patents and
         applications.

1.2      Seller wishes to sell its right, title and interest in such patents and
         applications to Purchaser.

1.3      Purchaser wishes to purchase such patents and applications.

2.       DEFINITIONS

2.1      "Assignment Agreements" means the agreements assigning ownership of the
         Patents from the inventors and/or prior owners to Seller.

2.2      "List  of  Prosecution  Counsel"  means  the  names  and  addresses  of
         prosecution  counsel who  prosecuted  the Patents and who are currently
         handling the Patents.

2.3      "Patents"  means  those  patents and  applications  listed in Exhibit A
         hereto, and all reissues,  reexaminations,  extensions,  continuations,
         continuations  in  part,  continuing  prosecution   applications,   and
         divisions  of  such  patents  and  applications;   provisional   patent
         applications that are or will be continuations or continuations in part
         of such patents and  applications;  and foreign  counterparts to any of
         the foregoing including without limitation utility models.

3. DELIVERY AND PAYMENT

3.1      Delivery.  Within ten (10) days  following the Effective  Date,  Seller
         shall deliver to Purchaser an executed copy of the Assignment of Patent
         Rights in  Exhibit B hereto,  the  Assignment  Agreements,  the List of
         Prosecution  Counsel,  and all files and  original  documents  owned or
         controlled by Seller  (including  without  limitation  Letters Patents)
         relating to the Patents including,  without limitation, all prosecution
         files for pending patent applications  included in the Patents, and its
         own files relating to the issued Patents.

3.2      Payment.  Within ten (10) days following Seller's delivery to Purchaser
         of the items listed in Section 3.1,  Purchaser  shall pay to Seller the
         amount of One Hundred Thousand dollars ($100,000.00).
<PAGE>

4. TRANSFER OF PATENTS

4.1      Patent Assignment.  Seller hereby sells, assigns, transfers and conveys
         to Purchaser all right, title and interest it has in and to the Patents
         and all inventions and discoveries described therein, including without
         limitation,  all rights of Seller under the Assignment Agreements,  and
         all rights of Seller to collect royalties under such Patents.

4.2      Assignment of Causes of Action. Seller hereby sells, assigns, transfers
         and conveys to Purchaser all right, title and interest it has in and to
         all causes of action and enforcement rights, whether currently pending,
         filed, or otherwise, for the Patents and all inventions and discoveries
         described  therein,  including without  limitation all rights to pursue
         damages,  injunctive  relief and other  remedies for past,  current and
         future infringement of the Patents.

5. ADDITIONAL OBLIGATIONS

5.1      Further  Cooperation.  At the reasonable  request of Purchaser,  Seller
         shall  execute and deliver  such other  instruments  and do and perform
         such  other  acts and  things  as may be  necessary  or  desirable  for
         effecting completely the consummation of the transactions  contemplated
         hereby,  including without  limitation  execution,  acknowledgment  and
         recordation of other such papers,  and using best efforts to obtain the
         same from the respective inventors, as necessary or desirable for fully
         perfecting and conveying unto Purchaser the benefit of the transactions
         contemplated hereby.

5.2      Payment of Fees. Seller shall pay any maintenance fees, annuities,  and
         the like due on the Patents for a period of thirty (30) days  following
         the Effective Date.

6. REPRESENTATIONS AND WARRANTIES

         Except as specifically described on Exhibit C to this Agreement, Seller
hereby represents and warrants to Purchaser as follows:

6.1      Authority.  Seller  has the  right  and  authority  to enter  into this
         Agreement and to carry out its obligations hereunder.

6.2      Title and Contest. Seller has good and marketable title to the Patents,
         including  without  limitation all rights,  title,  and interest in the
         Patents to sue for infringement thereof. The Patents are free and clear
         of all liens, mortgages, security interests or other encumbrances,  and
         restrictions on transfer. There are no actions, suits,  investigations,
         claims or proceedings  threatened,  pending or in progress  relating in
         any way to the Patents.  There are no existing  contracts,  agreements,
         options,  commitments,  proposals, bids, offers, or rights with, to, or
         in any person to acquire any of the Patents.

6.3      Existing  Licenses.  No rights or licenses  have been granted under the
         Patents.

6.4      Restrictions  on Rights.  Purchaser will not be subject to any covenant
         not to sue or similar  restrictions  on its enforcement or enjoyment of

                                      -2-
<PAGE>

         the  Patents  as a  result  of the  transaction  contemplated  in  this
         Agreement, or any prior transaction related to the Patents.

6.5      Conduct.  None of  Seller or its  representatives  has  engaged  in any
         conduct,  or omitted to perform any necessary  act, the result of which
         would  invalidate  any of the  Patents  or  hinder  their  enforcement,
         including but not limited to misrepresenting  Seller's patent rights to
         a standard-setting organization.

6.6      Enforcement.  Seller  has not put a third  party on notice of actual or
         potential  infringement of any of the Patents or considered enforcement
         action(s) with respect to any of the Patents.

6.7      Patent  Office  Proceedings.  None  of the  Patents  have  been  or are
         currently   involved  in  any  reexamination,   reissue,   interference
         proceeding,  or any similar proceeding and that no such proceedings are
         pending or threatened.

6.8      Fees. All maintenance fees, annuities,  and the like due on the Patents
         have been timely paid.

6.9      Consents.  Seller has  obtained  all third party  consents,  approvals,
         and/or other authorizations required to make the assignments of Section
         4.

6.10     Validity and Enforceability.  The Patents have never been found invalid
         or  unenforceable  for any reason in any  administrative,  arbitration,
         judicial or other proceeding, and Seller has not received any notice or
         information of any kind from any source suggesting that the Patents may
         be invalid or unenforceable.

7.       MISCELLANEOUS

7.1      License Grant Back.  Purchaser  hereby grants to Seller a royalty-free,
         fully paid-up, irrevocable,  non-transferable,  non-exclusive worldwide
         license to make, have made, use, sell, offer to sell, import and export
         any product or process (or use  thereof)  that is covered by or claimed
         or embodied in any of the Patents.

7.2      Limitation on Consequential  Damages.  NEITHER PARTY SHALL BE LIABLE TO
         THE  OTHER  FOR  LOSS OF  PROFITS,  OR ANY  SPECIAL,  CONSEQUENTIAL  OR
         INCIDENTAL DAMAGES,  HOWEVER CAUSED, EVEN IF ADVISED OF THE POSSIBILITY
         OF SUCH  DAMAGE.  THE PARTIES  ACKNOWLEDGE  THAT THESE  LIMITATIONS  ON
         POTENTIAL   LIABILITIES   WERE  AN   ESSENTIAL   ELEMENT   IN   SETTING
         CONSIDERATION UNDER THIS AGREEMENT.

7.3      Limitation  of  Liability.  EXCEPT IN THE CASE OF FRAUD,  EACH  PARTY'S
         TOTAL  LIABILITY  UNDER  THIS  AGREEMENT  SHALL BE LIMITED TO THE SALES
         PRICE  OF ONE  HUNDRED  THOUSAND  DOLLARS  ($100,000.00).  THE  PARTIES
         ACKNOWLEDGE  THAT THESE  LIMITATIONS ON POTENTIAL  LIABILITIES  WERE AN
         ESSENTIAL ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.

                                      -3-
<PAGE>

7.4      Compliance  with  Laws.  Notwithstanding  anything  contained  in  this
         Agreement to the  contrary,  the  obligations  of the parties  shall be
         subject to all laws,  present  and  future,  of any  government  having
         jurisdiction  over the  parties  and this  transaction,  and to orders,
         regulations, directions or requests of any such government.

7.5      Confidentiality  of Terms.  The parties  hereto shall keep the terms of
         this Agreement  confidential and shall not now or hereafter divulge any
         of this  information  to any  third  party  except:  (a) with the prior
         written consent of the other party; (b) as otherwise may be required by
         law or legal  process,  including in  confidence to legal and financial
         advisors in their  capacity of  advising a party in such  matters;  (c)
         during the course of litigation as long as the disclosure of such terms
         and conditions  are  restricted in the same manner as the  confidential
         information of other  litigating  parties;  or (d) in confidence to its
         legal  counsel,  accountants,  banks and  financing  sources  and their
         advisors   solely  in  connection   with   complying   with   financial
         transactions;  provided that, in (b) through (d) above,  the disclosing
         party shall use all  legitimate  and legal means  available to minimize
         disclosure to third parties,  including  without  limitation  seeking a
         confidential treatment request or protective order whenever appropriate
         or  available;  and (ii) the  disclosing  party shall provide the other
         party  with  at  least  ten  (10)  days  prior  written  notice  of the
         disclosure.

7.6      Governing  Law. Any claim arising  under or relating to this  Agreement
         shall be  governed  by the  internal  substantive  laws of the State of
         Delaware without regard to principles of conflict of laws.

7.7      Jurisdiction. Each party hereby agrees to jurisdiction and venue in the
         courts of the State of Utah or the Federal courts  sitting  therein for
         all  disputes  and  litigation   arising  under  or  relating  to  this
         Agreement.

7.8      Entire Agreement. The terms and conditions of this Agreement, including
         its exhibits, constitutes the entire agreement between the parties with
         respect to the subject  matter  hereof,  and merges and  supersedes all
         prior and contemporaneous agreements, understandings,  negotiations and
         discussions.  Neither of the parties shall be bound by any  conditions,
         definitions,   warranties,   understandings,  or  representations  with
         respect to the subject  matter hereof other than as expressly  provided
         herein.  The  section  headings  contained  in this  Agreement  are for
         reference  purposes only and shall not affect in any way the meaning or
         interpretation   of  this  Agreement.   No  oral  explanation  or  oral
         information   by  either  party  hereto  shall  alter  the  meaning  or
         interpretation of this Agreement.  No amendments or modifications shall
         be effective  unless in a writing signed by authorized  representatives
         of  both   parties.   These   terms   and   conditions   will   prevail
         notwithstanding  any  different,  conflicting  or additional  terms and
         conditions  which may appear on any purchase order,  acknowledgment  or
         other  writing not expressly  incorporated  into this  Agreement.  This
         Agreement  may be  executed  in two  (2) or more  counterparts,  all of
         which,  taken  together,   shall  be  regarded  as  one  and  the  same
         instrument. The following exhibits are attached hereto and incorporated
         herein: Exhibit A (entitled "Patent Rights to be Assigned");  Exhibit B
         (entitled  "Assignment  of Patent  Rights")  and  Exhibit  C  (entitled
         "Exceptions to Seller's Representations".

                                      -4-
<PAGE>

7.9      Notices:  All notices required or permitted to be given hereunder shall
         be in writing,  shall make  reference to this  Agreement,  and shall be
         delivered  by  hand,  or  dispatched  by  prepaid  air  courier  or  by
         registered or certified airmail, postage prepaid, addressed as follows:

         If to Seller                                 If to Purchaser
         ------------                                 ---------------
         Arkona, Inc.                                 Buck International, LLC
         10542 South Jordan Gateway, Suite 200        171 Main St. #271.
         South Jordan, Utah  84095                    Los Altos, CA  94022
         Attn: Alan Rudd                              Attn: Managing Director

         Such notices  shall be deemed  served when received by addressee or, if
         delivery is not  accomplished by reason of some fault of the addressee,
         when tendered for delivery.  Either party may give written  notice of a
         change of address and,  after notice of such change has been  received,
         any notice or request  shall  thereafter be given to such party at such
         changed address.

7.10     Relationship   of   Parties.   The  parties   hereto  are   independent
         contractors.  Neither  party  has  any  express  or  implied  right  or
         authority to assume or create any obligations on behalf of the other or
         to bind the other to any contract,  agreement or  undertaking  with any
         third party.  Nothing in this Agreement  shall be construed to create a
         partnership,  joint venture,  employment or agency relationship between
         Seller and Purchaser.

7.11     Equitable   Relief.   Seller   agrees  that  damages   alone  would  be
         insufficient  to compensate  Purchaser for a breach of this  Agreement,
         acknowledges  that  irreparable harm would result from a breach of this
         Agreement,  and  consents to the  entering  of an order for  injunctive
         relief to prevent a breach or further  breach,  and the  entering of an
         order for specific performance to compel performance of any obligations
         under this Agreement.

7.12     Severability. The terms and conditions stated herein are declared to be
         severable.  If any  paragraph,  provision,  or clause in this Agreement
         shall  be  found  or be  held to be  invalid  or  unenforceable  in any
         jurisdiction in which this Agreement is being performed,  the remainder
         of this Agreement  shall be valid and enforceable and the parties shall
         use  good  faith to  negotiate  a  substitute,  valid  and  enforceable
         provision  which most nearly  effects the  parties'  intent in entering
         into this Agreement.

7.13     Waiver.  Failure by either party to enforce any term of this  Agreement
         shall not be deemed a waiver of future enforcement of that or any other
         term in this  Agreement  or any  other  agreement  that may be in place
         between the parties.

7.14     Assignment.  The terms and conditions of this Agreement  shall inure to
         the  benefit of  Purchaser,  its  successors,  assigns  and other legal
         representatives,  and shall be  binding  upon  Seller,  its  successor,
         assigns and other legal representatives.

                                      -5-
<PAGE>

         In witness  whereof,  the parties have  executed  this Patent  Purchase
Agreement as of the Effective Date:

Buck International LLC                               Arkona, Inc.
Purchaser                                            Seller

/s/   [illegible]                                    /s/ Alan Rudd
-------------------------                            -----------------------
Signature                                            Signature

N/A                                                  Alan Rudd
-------------------------                            -----------------------
Printed Name                                         Printed Name

Managing Director                                    Chief Executive Officer
-------------------------                            -----------------------
Title                                                Title

June 2004                                            June 2004
-------------------------                            -----------------------
Date                                                 Date

                                      -6-
<PAGE>

<TABLE>
<CAPTION>

                                                                                                             Exhibit A

                          Patent Rights To Be Assigned
------------------------- ------------- ---------------------- --------------------------------------------------------

       Patent or
     Application No.         Country        Filing Date                         Title and Inventor(s)
------------------------- ------------- ---------------------- --------------------------------------------------------
<S>    <C>                <C>           <C>                    <C>
       5,999,947              U.S.      May 27, 1997           DISTRIBUTING DATABASE DIFFERENCES CORRESPONDING TO
                                                               DATABASE CHANGE EVENTS MADE TO A DATABASE TABLE
                                                               LOCATED ON A SERVER COMPUTER
                                                               Inventors: John M. Zollinger, Salt Lake City, Utah;
                                                               Johnathan Devine, San Francisco, Calif.
------------------------- ------------- ---------------------- --------------------------------------------------------
       6,321,236              U.S.      August 3, 1999         DISTRIBUTING DATABASE DIFFERENCES CORRESPONDING TO
                                                               DATABASE CHANGE EVENTS MADE TO A DATABASE TABLE
                                                               LOCATED ON A SERVER COMPUTER
                                                               Inventors: John M. Zollinger, Salt Lake City, Utah;
                                                               Johnathan Devine, San Francisco, Calif.
------------------------- ------------- ---------------------- --------------------------------------------------------
</TABLE>

<PAGE>

                                                                     Exhibit B

                           ASSIGNMENT OF PATENT RIGHTS

For  good  and   valuable   consideration,   the  receipt  of  which  is  hereby
acknowledged,  Arkona, Inc. having offices at 10542 South Jordan Gateway,  Suite
200, South Jordan, Utah 84095 ("Assignor"),  does hereby sell, assign,  transfer
and convey unto Buck  International  LLC, a Delaware limited liability  company,
having  an  office  at 171  Main  Street,  #271,  Los  Altos,  California  94022
("Assignee") or its designees,  all of Assignor's  right,  title and interest in
and  to  the  patent   applications  and  patents  listed  below,  any  patents,
registrations,  or certificates of inventions issuing on any patent applications
listed below,  the  inventions  disclosed in any of the  foregoing,  any and all
counterpart United States,  international and foreign patents,  applications and
certificates of inventions  based upon or covering any portion of the foregoing,
and  all   reissues,   re-examinations,   divisionals,   renewals,   extensions,
provisionals,  continuations and  continuations  in-part of any of the foregoing
(collectively "Patent Rights"):

<TABLE>
<CAPTION>

       Patent or
     Application No.         Country        Filing Date                         Title and Inventor(s)
------------------------- ------------- ---------------------- --------------------------------------------------------
<S>    <C>                <C>           <C>                    <C>
       5,999,947              U.S.      May 27, 1997           DISTRIBUTING DATABASE DIFFERENCES CORRESPONDING TO
                                                               DATABASE CHANGE EVENTS MADE TO A DATABASE TABLE
                                                               LOCATED ON A SERVER COMPUTER
                                                               Inventors: John M. Zollinger, Salt Lake City, Utah;
                                                               Johnathan Devine, San Francisco, Calif.
------------------------- ------------- ---------------------- --------------------------------------------------------
       6,321,236              U.S.      August 3, 1999         DISTRIBUTING DATABASE DIFFERENCES CORRESPONDING TO
                                                               DATABASE CHANGE EVENTS MADE TO A DATABASE TABLE
                                                               LOCATED ON A SERVER COMPUTER
                                                               Inventors: John M. Zollinger, Salt Lake City, Utah;
                                                               Johnathan Devine, San Francisco, Calif.
------------------------- ------------- ---------------------- --------------------------------------------------------
</TABLE>

Assignor  represents,  warrants and covenants that, to its knowledge:  (i) it is
the sole  owner and  assignee  and holder of record  title to the Patent  Rights
identified above, (ii) it has obtained and properly recorded previously executed
assignments  for  all  patent  applications  and  patents  identified  above  as
necessary  to fully  perfect  its rights and title  therein in  accordance  with
governing law and regulations in each respective jurisdiction,  and (iii) it has
full  power  and  authority  to make  the  present  assignment.  Assignor  shall
indemnify and hold harmless  Assignee for any breach of the foregoing.

Assignor  further  agrees to and hereby does sell,  assign,  transfer and convey
unto Assignee all of its rights:  (i) in and to causes of action and enforcement
rights for the Patent Rights including all rights to pursue damages,  injunctive
relief and other remedies for past and future infringement of the Patent Rights,
and (ii) to apply in any or all countries of the world for patents, certificates
of  invention  or other  governmental  grants for the Patent  Rights,  including
without  limitation  under the Paris Convention for the Protection of Industrial
Property,  the International Patent Cooperation Treaty, or any other convention,
treaty,  agreement  or  understanding.   Assignor  also  hereby  authorizes  the
respective  patent office or governmental  agency in each  jurisdiction to issue
any and all patents or  certificates  of invention which may be granted upon any
of the Patent  Rights in the name of  Assignee,  as the  assignee  to the entire
interest therein.

                                      -1-
<PAGE>

Assignor will, at the reasonable  request of Assignee and without  demanding any
further consideration  therefor, do all things necessary,  proper, or advisable,
including without  limitation the execution,  acknowledgment  and recordation of
specific   assignments,   oaths,   declarations   and  other   documents   on  a
country-by-country   basis,  to  assist   Assignee  in  obtaining,   perfecting,
sustaining,  and/or  enforcing the Patent Rights.  Such assistance shall include
providing,  and obtaining from the respective  inventors,  prompt  production of
pertinent  facts and  documents,  giving of  testimony,  execution of petitions,
oaths,  powers of  attorney,  specifications,  declarations  or other papers and
other assistance reasonably necessary for filing patent applications,  complying
with any duty of disclosure, and conducting prosecution, reexamination, reissue,
interference or other priority proceedings, opposition proceedings, cancellation
proceedings, public use proceedings, infringement or other court actions and the
like with respect to the Patent Rights.

The terms and  conditions  of this  Assignment  shall  inure to the  benefit  of
Assignee, its successors, assigns and other legal representatives,  and shall be
binding upon Assignor,  its successor,  assigns and other legal representatives.
IN WITNESS  WHEREOF  this  Assignment  of Patent  Rights is  executed at on June
[illegible], 2004.
ASSIGNOR

By:      /s/ Alan Rudd
         --------------------------------------------
Name:    Alan Rudd
         --------------------------------------------
Title:   Chief Executive Officer
         --------------------------------------------

(Signature MUST be notarized)

                                      -2-
<PAGE>

                                                                    Exhibit C

                     Exceptions to Seller's Representations

None.

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