EXHIBIT 1
4/1/02
REAL ESTATE PURCHASE AGREEMENT
BEAVER CREEK APARTMENTS
This purchase agreement ("Agreement" or "Contract"), made and
entered into by and between ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ or his nominee ("Buyer") and
Realmark-Beaver, LLC, a New York limited liability company, ("Seller").
RECITALS:
A. Buyer desires to purchase from Seller, and Seller desires to sell to
Buyer, a certain parcel of real property and all of the improvements and
buildings situated thereon, and the hereditaments and appurtenances thereto (the
"Real Property"), consisting of an apartment complex known as Beaver Creek
Apartments, and all personal property, equipment, fixtures and intellectual
property (excluding, however, any use of the name "Realmark" or any related or
similar name, it being understood that only the right, title and interest of
Seller to the name of the apartment complex shall be transferred and excluding
computer equipment and software), owned by Seller, utilized in the operation or
management of the apartment complex, and located at said apartment complex
(collectively the "Personal Property"). The Real Property together with the
Personal Property applicable to the apartment complex will be herein referred to
as the "Property".
B. Attached hereto and made a part hereof is the legal description of
the Real Property, marked with the name of the apartment complex and attached as
Exhibit A. A detailed list of the Personal Property is attached to this
Agreement as Exhibit B. Any subsequent amendment to either Exhibit A or Exhibit
B, or to any other Exhibit to this Agreement, is to be considered an integral
part of this Agreement.
FOR AND IN CONSIDERATION of the mutual promises, covenants and
agreements, hereinafter set forth, the Parties agree as follows:
SECTION 1. PURCHASE PRICE.
(a) The purchase price to be paid Seller for the Property is
$2,440,000.00 ("Purchase Price") to be paid in the following manner:
▇▇▇▇▇▇▇ Money at signing of
Purchase Agreement $ 20,000.00
Additional ▇▇▇▇▇▇▇ Money after
expiration of Due Diligence Period $ 20,000.00
Cash at closing (subject to
prorations and allocations per
Section 5) $2,400,000.00
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Total $2,440,000.00
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and payable by Buyer on closing of title and delivery of the Deed ("Closing") in
immediately available good, federal funds.
(b) All existing debt, liens, impositions and similar
encumbrances affecting the Real Property will be discharged or, if annual liens,
prorated in accordance with Section 5 and paid at the Closing.
(c) The ▇▇▇▇▇▇▇ Money in the amount stated in Section 1 (a)
above will be deposited with a nationally recognized title company selected by
Buyer (the "Title Company"), as Escrow Agent (the "Escrow Agent"), within two
(2) days from the date of Seller's execution of this Agreement. Absent any
contrary provision of this Agreement, the total ▇▇▇▇▇▇▇ Money in the amount of
$40,000.00 ill remain on deposit with the Escrow Agent until the Closing of the
Property or cancellation of escrow. If the ▇▇▇▇▇▇▇ Money deposit is not made by
the date or dates as herein above set forth, Seller may terminate this
Agreement. Interest on the ▇▇▇▇▇▇▇ Money shall follow the principal sum on any
payment or refund. Upon any permitted termination of this Agreement by Buyer,
including but not limited to the failure of the conditions precedent set out in
Section 7, the ▇▇▇▇▇▇▇ Money shall be returned to Buyer upon demand, and in
compliance with all other terms and provisions of this Agreement.
(d) Buyer and Seller agree to make a reasonable allocation of
the Purchase Price for the personalty and equipment being sold to Buyer
hereunder.
SECTION 2. PLACE AND TIME OF CLOSING.
(a) Subject to the conditions precedent set forth herein
having been met or waived, the Closing will take place on or before seventy-five
(75) days after execution of this Agreement by both parties, unless extended as
otherwise set forth in this Agreement, time being of the essence. As used herein
the term "Closing" will mean the meeting of the parties at which delivery of the
Deed and payment of the Purchase Price as called for in Section 1 occurs for the
Property.
(b) This Agreement, as an offer to purchase when signed by
Buyer, shall automatically terminate if not accepted in final form by Seller by
5 P.M., Eastern Standard Time, within five (5) business days from the date on
which Buyer executed this Agreement as indicated below.
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SECTION 3. PURCHASER'S CONTINGENCIES.
(a) Due Diligence. Buyer, or its designees, will have a period of
forty-five (45) days after Seller's execution of this Agreement (the "Due
Diligence Period"), to enter the Property to make inspections, engineering
tests, surveys, and other such tests, examinations and inspections as Buyer may
desire as long as such tests, examinations, etc., do not unreasonably interfere
with the operations or any current use of the Property. All entry upon the
Property and any and all contact with on site employees of Seller by Buyer shall
be upon prior notice to Seller and, at Seller's option, accompanied by an agent
of Seller.
Buyer agrees to complete its own lease audit, financial inspection and
physical review within the first twenty (20) days of the Due Diligence Period.
All third party reports must be ordered within said first twenty (20) day
period. Buyer agrees to indicate its preliminary approval of the property within
said twenty (20) day period.
If the Closing of the Property does not occur, Buyer will make such
repairs as necessary to leave the Property in the same condition as prior to
entry by Buyer.
(i) During the Due Diligence Period, Buyer may inspect the
Property. At the signing of this Agreement or within two (2) days thereafter,
Seller shall provide or make available at designated locations, those
operational and information items which relate to the Property as follows:
1. Current Rent Roll - (Dated within 30 days of
execution)
2. Expense Statements for the last two (2) calendar
years
3. Expense Statement for the current calendar year to
date (as of the end of the month previous to
execution)
4. Copy of current ad valorem tax bills and a condensed
list of utility bills for the Property, for the last
full calendar year if in Seller's possession
5. As-built survey, if in Seller's possession
6. Copies of all third-party contracts (e.g., termite,
landscape, pool maintenance, etc.) in effect or which
will be in effect at or after the closing date, as
well as all equipment leases or personal property
financing/lease agreements.
7. Copy of the latest insurance declaration covering the
Property (the same may be within a master policy)
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8. Make available originals or copies of the first and
last page of all tenant leases for the Property in
connection with each apartment unit.
9. Certificates of Occupancy within Seller's possession.
All of the foregoing will either be at the Property location or submitted to
Buyer by Seller within two (2) days after execution of this Agreement by both
parties.
All Due Diligence materials must be maintained by Buyer or its attorneys or
agents on a confidential basis and returned to Seller if Buyer terminates this
Agreement. Buyer agrees that it will not use the Due Diligence materials for any
purpose other than to determine whether to acquire the Property and agrees that
it will not make contact with Seller's tenants unless closing occurs. In
addition, Buyer agrees that it will under no circumstances make any offer, or
use the Due Diligence materials, to acquire the interest of any partner(s) of
the selling entities or the current fee owner or its affiliates for a period of
two (2) years after the date of this Contract. Buyer and/or its agents will not,
under any circumstances, disclose to any of Seller's employees that it is
contemplating acquisition of the Property without Seller's written consent prior
to closing. All reports desired by Buyer during its Due Diligence Period shall
be ordered by Buyer at Buyer's expense, but Buyer agrees that it will supply
copies to Seller of each and every report it receives immediately upon their
completion and availability to Buyer.
(ii) During the Due Diligence Period, Buyer will conduct a
review of the economics and feasibility of acquiring and operating the Property,
including any inspection of all zoning and other government permits and
regulations and all other matters and documents relating to the operation of the
Property, including the items supplied by Seller under Section 3(a) hereof.
Buyer agrees not to contact any of Seller's vendors and will not request any
governmental inspections of the property.
(iii) After Seller provides all required documents to the
Buyer, Buyer agrees to accept or reject the Property and all documents prior to
the end of the Due Diligence Period. If Buyer does not cancel this Contract
during the Due Diligence Period, Buyer shall be deemed to have accepted the
Property and it will close on the Property in accordance with this Contract,
except for cancellation in accordance with the specific provisions of this
Contract. If Buyer cancels this Contract before the expiration of Buyer's Due
Diligence Period, then and in that event, the Deposit shall be returned to Buyer
and neither party shall have any further liability.
(b) This Agreement is contingent upon Buyer obtaining a mortgage
commitment reasonably satisfactory to Buyer within forty-five (45) days after
execution of this Agreement. Buyer shall apply promptly for such commitment and
shall pursue same with good faith and due diligence. If Buyer is unable to
obtain such commitment with the time period set forth above, either party may
thereupon terminate this Agreement and the ▇▇▇▇▇▇▇ Money shall be returned to
Buyer.
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SECTION 4. DEED AND TITLE.
(a) Seller shall deliver to Buyer at Closing, a special or
limited warranty deed (or bargain and sale deed, where appropriate) ("Deed") in
a form reasonably acceptable to Buyer, conveying good and marketable fee simple
title to the Real Property, subject only to such easements, restrictions of
record and title exceptions set forth in the commitment for title insurance
specifically approved by Buyer, and taxes not delinquent. In addition, Seller
shall convey title to the Personal Property to Buyer, free and clear of all
liens and encumbrances (except those disclosed and deemed approved during due
diligence; e.g., equipment leases or personal property financing documents), by
the execution and delivery at Closing of a ▇▇▇▇ of Sale in form and substance
reasonably satisfactory to Buyer, without warranty, except as to Seller's title.
(b) Seller agrees to provide a copy of its most recent
existing title insurance policy or title insurance commitment to Buyer. Buyer
shall then obtain an ALTA Form B Title Insurance Commitment (the "Title
Commitment"), within fifteen (15) days of the date of execution of this Contract
by both parties, issued by a title insurance company selected by Buyer,
committing to insure fee simple title to the Property in the amount of the
Purchase Price for such Property in Buyer's name, with all standard exceptions
removed (except for the rights of tenants under unrecorded leases and/or except
for standard exceptions normally not removed pursuant to local custom with
respect to the Real Property), and containing no other exceptions not
specifically approved by Buyer. Buyer will provide a copy of said title
commitment to Seller within 5 days after same is completed, but no later than 20
days after signing this Agreement. Buyer shall have ten (10) days after receipt
to examine the Title Commitment and inform Seller of Buyer's objection to any
exception contained in or title defect revealed by the Title Commitment.
(c) If Buyer's examination of the Title Commitment reveals
that the Title Commitment for the Real Property contains objectionable
exceptions or that the title to the Real Property is defective and thereafter,
the issuing title insurance company refuses to delete the objectionable
exceptions or the defects cannot be cured within a reasonable period of time
after written notice by Buyer, specifically pointing out the objection/defects,
then Buyer may elect to terminate this Agreement upon written notice to Seller.
Notwithstanding the foregoing, however, in order to terminate the Contract, an
objectionable exception or defect must be one which renders title unmarketable
and uninsurable because of such specified objection or defect, or the specified
objection or defect shall be materially inconsistent with the present use of the
Property as an apartment complex.
(d) Seller will pay for preparation of the Deed for the Real
Property, and for one-half (1/2) of State and local transfer taxes, if any.
(e) Buyer will pay for any title insurance commitment, title
insurance premiums, one-half (1/2) of State and local transfer taxes, for any
updated survey of the Property and the recording of the Deed for the Property.
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(f) Seller and Buyer will each pay their own attorney's fees.
SECTION 5. PRORATIONS AND ALLOCATIONS.
(a) Collected rents, real estate taxes, laundry income,
service contracts, equipment leases or other personal property financing,
utility deposits, insurance and other expenses whether or not a lien, assessed
or to be assessed for the tax year in which the transaction is consummated will
be prorated as to the Property as of the date of the Closing. Seller and Buyer
agree to enter into a post closing adjustment agreement relative to all
adjustments and uncollected rent.
(b) Security deposits held by Seller or paid by any lessees at
the Property will be transferred to Buyer in full at Closing, including any
interest earned thereon and payable to the Tenant under State law.
(c) Real estate taxes will be adjusted on the basis of the
fiscal year for school taxes and on the basis of the calendar year for local and
county taxes.
(d) Seller agrees to allow a repair credit to Buyer for
$120,000 at closing in order to allow for deferred maintenance at the property.
SECTION 6. CONDEMNATION OR CASUALTY. Seller agrees to give Purchaser
prompt written notice of any fire or other casualty occurring to all or any
portion of the improvements at the Real Property and/or Personalty between the
date hereof and the date of closing. If prior to the closing, there shall occur:
(i) damage to the improvements at the Property caused by fire
or other casualty which would cost 5% of the Purchase Price of the Property or
more to repair based on the estimate of a reputable third party contractor
chosen by Seller; or
(ii) the taking or condemnation of all or any portion of the
Real Property and/or the improvements as aforesaid as would materially interfere
with the use thereof; then, if any of such events set forth in (i) or (ii) above
occurs, Buyer or Seller, at its option, may terminate its obligations under this
Agreement by written notice given to the other within seven (7) days after Buyer
has received the notice referred to above or at the closing, whichever is
earlier. If Buyer or Seller does not elect to terminate its obligations as
aforesaid, the closing shall take place as provided herein without an abatement
of the purchase price (except that Buyer shall be allowed a credit for any
deductible under Seller's insurance) and there shall be assigned to the Buyer at
closing, all interest of the Seller in and to any insurance proceeds or
condemnation awards which may be payable to Seller on account of such
occurrence.
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If, prior to the closing, there shall occur:
(i) damage to the Property caused by fire or other casualty
which would cost less than 5% of the Purchase Price of the Property based on the
estimate of a reputable third party contractor chosen by Seller to which Buyer
has no reasonable objection; or
(ii) the taking or condemnation of all or any portion of the
said Real Property and/or improvements as aforesaid which is not material to the
use, thereof; then, if any of such events set forth in (i) or (ii) above occurs,
Buyer shall have no right to terminate its obligations under this Agreement, but
there shall be assigned to Buyer at closing all interest of Seller in and to any
insurance proceeds or condemnation awards which may be payable to Seller on
account of any such occurrence, and in addition, Buyer shall be allowed a credit
for any deductible under Seller's insurance policy.
Seller shall be responsible for maintaining fire and extended
coverage insurance prior to closing as is currently in place.
SECTION 7. CONDITIONS. The following shall be conditions precedent to
Buyer's obligations hereunder, unless specifically waived in whole or in part in
writing by Buyer:
(a) Litigation. There being no existing or pending claims,
lawsuits, or governmental proceedings, or appeals, which challenge Seller's
title to the Property.
(b) Title Insurance Policy. Title to the Property at Closing
being marketable or insurable (Buyer agrees to request that the title company
issuing the title commitment list any questions of marketability in the title
commitment) and/or in accordance with the provisions of Section 4 above, free
and clear of all liens and encumbrances. In addition, Buyer receiving assurances
at Closing from the title insurance company issuing the Title Commitment, that
after Closing, Buyer will be issued an ALTA Form B Title Insurance Policy, with
all standard exceptions removed, except as set forth in Section 4 above, and all
other exceptions validly objected to by Buyer deleted from such policy, insuring
fee simple marketable title to the Property or in accordance with Section 4
above, in the amount of the Purchase Price, in Buyer's name, free and clear of
all liens and encumbrances not otherwise specifically agreed to by Buyer prior
to Closing.
(c) Personal Property. Seller conveying title to the Personal
Property to Buyer at Closing free and clear of all liens and encumbrances
(except for equipment leases and personal property financing disclosed during
due diligence) by a ▇▇▇▇ of Sale without warranties except as to title in form
and substance reasonably satisfactory to Buyer.
(d) Compliance With Representations and Warranties. Seller
will be in substantial compliance with all other representations and warranties
made herein in Section 8, or elsewhere in this Agreement, at Closing to the
reasonable satisfaction of Buyer.
(e) The condition of the Personal Property and Real Property
shall be in substantially the same condition at closing as they were at end of
the Buyer's Due Diligence Period.
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With respect to all of the foregoing, to the extent that they are
representations and warranties of Seller, they are made to the best of Seller's
knowledge and belief without independent investigation at this time.
SECTION 8. SELLER'S WARRANTIES. The following representations and
warranties of Seller shall survive the Closing for a period of three (3) months.
(a) The legal description of the Property contained in the
recitals to this Agreement is substantially correct and will be confirmed by any
survey obtained by Buyer and/or confirmed by the title company.
(b) To Seller's best knowledge and belief, Seller has not
received written notification that the Property is not in compliance with any
federal, state, county and municipal laws, ordinances and regulations, including
but not limited to all federal, state, county and municipal environmental laws
and regulations, applicable to or affecting the Property, subject to Seller's
right to cure as hereinabove stated.
(c) Seller will convey fee simple, marketable or insurable
title to the Property to Buyer at Closing and will convey title to the Personal
Property to Buyer at Closing by ▇▇▇▇ of Sale, in form and substance reasonably
satisfactory to Buyer, free and clear of all liens and encumbrances.
(d) Seller will not interfere with Buyer's opportunity to hire
Seller's on-site employees who work at the Property, but Buyer will have no
obligation to hire any of those individuals. Buyer will make no efforts to hire
such employees until after all contingencies have been removed and no earlier
than 10 days before closing.
(e) Seller shall be responsible for (and Buyer shall not
assume the obligation of) all employee wages, benefits (including payments for
accrued bonuses, vacation or sick pay, unemployment compensation, employment
taxes, medical claims or similar payments), contributions under any benefit
programs or agreements, severance pay obligations and other related employee
costs arising as a result of any events, acts (or failures to act) prior to the
Closing Date with respect to the Property at which such persons are employed,
whether or not disclosed on the schedules to this Agreement.
(f) Seller retains all liability and responsibility for
fulfilling all federal and/or state COBRA and continuation of group health
insurance coverage requirements (pursuant to Section 4980B of the Code, sections
601-608 of ERISA, and any applicable state laws) with respect to Seller's
current or former employees (and their dependents). Buyer does not hereby and
will not at the Closing of the Property assume any obligation to provide medical
insurance coverage to persons that it employs because it acquires the Property.
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(g) The physical condition of the Personal Property and Real
Property shall be maintained in substantially the same condition as they were at
the expiration of Buyer's due diligence period through the Closing Date.
(h) Seller has title to the property, or the right to acquire
same, has the authority to enter into this Agreement, is entering into this
Agreement with the knowledge of the current owner and has the authority to sign
all documents required to be signed to implement Seller's obligations under this
Agreement.
SECTION 9. NON-PERFORMANCE.
(a) If Seller fails to deliver the Deed or meet any of the
conditions hereof willfully, Buyer, at Buyer's sole option, may (i) terminate
this Agreement whereupon the ▇▇▇▇▇▇▇ Money shall be returned to Buyer on demand
or (ii) Buyer may bring an action for specific performance, and if Buyer
prevails, all reasonable costs and expenses of any such action shall be paid by
Seller as a reduction of the Purchase Price, or (iii) bring an action for
monetary damages. The foregoing shall be the sole and exclusive remedies of
Buyer. However, if Buyer elects to bring an action for monetary damages, they
shall be specifically limited, if proven, to an amount equal to the ▇▇▇▇▇▇▇
Money on deposit as set forth hereinabove, plus any out of pocket third party
expenses incurred in connection with Buyer's Due Diligence (said third party
expenses not to exceed, however, the sum of $20,000). Any damages resulting from
a breach of any warranty or representation either before or after Closing shall
be subject to the same limitation and aggregated with any damages for breach of
this Agreement as set forth above.
(b) If Buyer defaults at any time, Seller and Buyer agree that
it will be extremely difficult or impractical to fix Seller's actual damages.
Therefore, in such an event, the entire ▇▇▇▇▇▇▇ Money shall be delivered to
Seller as liquidated damages for loss of a bargain and not as a penalty. Buyer
will then be released from all liability to Seller related to this Agreement,
such liquidated damages being Seller's sole remedy.
SECTION 10. BROKERS, AGENTS AND CONSULTANTS. Seller represents and
warrants to Buyer that no broker, consultant or agent is due a commission or fee
from the proceeds of the Closing, claiming by, through or under Seller except as
stated herein, and Seller hereby agrees to indemnify and hold harmless Buyer
from the claims of any agent, consultant or broker for the payment of any such
commission or commissions.
Buyer represents and warrants to Seller that no other broker,
consultant or agent is due a commission or fee from the proceeds of the Closing
claiming by, through or under Buyer, and hereby agrees to indemnify and hold
harmless Seller and the Property from the claims of any other agent, consultant
or broker for the payment of any commission, finder's fee or other compensation.
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SECTION 11. LEASES.
(a) Seller agrees that prior to the Closing it will not enter
into any long term commercial leases or service agreements without the prior
written consent of Buyer which will not be unreasonably withheld or delayed.
This provision shall not be applicable until after the expiration of Buyer's Due
Diligence Period, however Seller will supply a copy of any such agreements
entered into during Due Diligence immediately to Buyer. Seller will enter into
Leases with Tenants of the apartments or renewals or extensions thereof on its
standard lease agreement and at current rents and terms through closing.
(b) Seller shall assign the existing tenant leases to Buyer at
Closing along with all service contracts and other agreements affecting the
Property. Buyer shall execute an assumption agreement or other agreements with
respect to all tenant leases and service contracts or other agreements from and
after the date of closing.
SECTION 12. INSURANCE. Seller will cancel its insurance coverage on the
Property effective at Closing of the Property, and Buyer will place new
insurance coverage on the Property effective on the same date.
SECTION 13. ASSIGNMENT. Buyer shall not have the right to assign this
Agreement, in whole or in part, to any party with whom it is not affiliated
without the express written consent of Seller. Upon any such assignment approved
by Seller, the assignee shall assume the obligations of Buyer. Seller's consent
pursuant to this section shall be in its sole discretion and shall include
approval of all proposed assignment documents. In accordance with the foregoing,
the Buyer shall have the right to assign to an entity with which the Buyer is
affiliated provided the Buyer herein remains liable for performance of this
Contract.
SECTION 14. ENTIRE AGREEMENT. All prior understandings and agreements
of the parties are merged herein, and this Agreement reflects the entire
understanding of the parties. This Agreement may not be changed or terminated
orally.
SECTION 15. SUCCESSORS AND ASSIGNS. The terms of this Agreement shall
be binding upon and inure to the benefit of the parties hereto, their respective
legal representatives, successors and assigns.
SECTION 16. INDEMNIFICATIONS.
(a) SELLERS INDEMNITY. Seller shall indemnify, defend and hold
Buyer harmless from any claim, demand, loss, liability, damage, or expense
(including reasonable attorneys' fees) in connection with third-party claims for
injury or damage to personal property in connection with the ownership or
operation of the Property prior to Closing. These indemnification obligations of
Seller shall be repeated at and shall survive the Closing.
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(b) BUYERS INDEMNITY. Buyer shall indemnify, defend and hold
Seller harmless from any claim, demand, loss, liability, damage, or expense
(including reasonable attorneys' fees), due to Buyers operation of the Property
from and after Closing. The indemnification obligations of Buyer shall be
repeated at and shall survive the Closing.
SECTION 17. NOTICES. All notices required or permitted hereby shall be
in writing and delivered either in person or sent electronically, and by
national overnight express carrier. Notices shall be deemed to have been given
when sent as follows:
Buyer: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ or his nominee
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Copy To: ▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
Papernick & ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Seller: Realmark-Beaver, LLC
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
Copy to: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Esq.
Amigone, Sanchez, Mattrey & ▇▇▇▇▇▇▇▇, LLP
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Fax: ▇▇▇-▇▇▇-▇▇▇▇
SECTION 18. CONSTRUCTION. Time shall be construed to be of the essence.
SECTION 19. GOVERNING LAW. This Agreement will be governed by and
construed according to Pennsylvania law.
SECTION 20. ESCROW. The Escrow Agent hereby acknowledges receipt of the
▇▇▇▇▇▇▇ Money and agrees to hold the same in escrow until the closing or sooner
termination of this Agreement and shall pay over and apply the proceeds thereof
in accordance with the terms of this Agreement. If, for any reason, the closing
does not occur and either party makes a written demand upon the Escrow Agent for
payment of the ▇▇▇▇▇▇▇ Money, the Escrow Agent shall give written notice to the
other party of such demand. If the Escrow Agent does not receive a written
objection from the other party to the proposed payment within five (5) business
days after the giving of such notice, the Escrow Agent is hereby authorized to
make such payment. If the Escrow Agent does receive such written objection
within such five (5) day period, or if for any reason the Escrow Agent in good
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faith shall elect not to make such payment, the Escrow Agent shall continue to
hold the ▇▇▇▇▇▇▇ Money until otherwise directed by written instructions from the
parties to this Agreement or until a final judgment (beyond any applicable
appeal period) by a Court of competent jurisdiction is rendered disposing of
such ▇▇▇▇▇▇▇ Money.
The Escrow Agent shall be liable as a depository only and its
duties hereunder are limited to the safekeeping of the ▇▇▇▇▇▇▇ Money and the
delivery of same in accordance with the terms of this Agreement. The Escrow
Agent will not be liable for any act or omission done in good faith, or for any
claim, demand, loss or damage made or suffered by any party to this Agreement,
excepting such as may arise through or be caused by the Escrow Agent's
negligence or willful misconduct.
In any action involving the parties, Buyer acknowledges that Escrow
Agent may represent Seller.
IN WITNESS WHEREOF, this Agreement has been executed by the parties, or
by the duly authorized officer of the parties, on the day and year shown below.
BUYER:
Executed April 2, 2002
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By:/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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SELLER:
Executed April 2, 2002
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Realmark-Beaver, LLC
By: Realmark-Beaver Management, Inc.
By:/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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RECEIPT OF ESCROW AGENT
The undersigned hereby acknowledges receipt of the ▇▇▇▇▇▇▇ Money provided for
herein, and that the same is being held as Escrow Agent pursuant to the terms of
the above Purchase Agreement.
as Escrow Agent
By:
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