EXHIBIT 10.2
AGREEMENT FOR PURCHASE AND SALE
AND JOINT ESCROW INSTRUCTIONS
SHADOWOOD VILLAGE
This Agreement for Purchase and Sale and Joint Escrow Instructions
(this "Agreement") is entered into as of January 26, 1999, by and between
Shadowood Village, Ltd., a Florida limited partnership ("Seller"), and DOC
Investors, LLC, a Delaware limited liability company ("Buyer"), who agree
and, to the extent applicable, instruct First American Title Insurance
Company ("Escrow Holder" or "Title Company," as the context may require), as
escrow holder, as follows:
1. This Agreement is made with reference to the following facts:
1.1. Seller owns that certain real property located at ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇, commonly known as
Shadowood Village Apartments and more fully described on EXHIBIT A
attached hereto (the "Real Property"), including without limitation
all rights, members, easements, alleys, ways, appurtenances,
shrubbery, trees, plants and privileges located thereon or
appertaining thereto, together with any and all right, title and
interest in and to any land lying in the bed or right-of-way of any
street, road, alley or avenue, open or proposed, in front of or
adjoining the land to the centerline thereof, together with any
nonexclusive right to use any and all such land lying within any such
roadbed, right-of-way, street, alley or avenue for ingress and egress
to and from the land, together with any and all right, title and
interest in and to any award made or to be made in lieu thereof, and
in and to any unpaid award for damage to the land by reason of change
of grade of any street. Along with the Real Property, Buyer intends
to purchase from Seller, and Seller intends to sell to Buyer, in
accordance with this Agreement, all improvements constructed in, on or
under the Real Property including a ▇▇▇-▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇ (▇▇▇▇▇▇▇▇▇▇▇▇, the "Improvements"), all of Seller's tangible
personal property located on and used solely in connection with the
Real Property or the Improvements, including without limitation the
tangible personal property identified on EXHIBIT B attached hereto
(the "Personal Property") and all intangible personal property owned
by Seller and now, or hereafter, used in connection with the Real
Property (the "Intangible Property") including, without limitation,
all (i) trade names, (ii) logos, (iii) warranties and guaranties
relating to the construction, operation, maintenance, repair and use
of the Improvements and the Personal Property, including, without
limitation, any and all equipment, HVAC systems, plumbing and roof
warranties and all contractors' and subcontractors' warranties (the
"Warranties"), (iv) certificates of occupancy (or the local
equivalents), permits, licenses, approvals and authorizations issued
by any federal, state or municipal government, branch, authority,
district, agency, court, tribunal, department, board, commission or
other instrumentality ("Governmental Authority"), (v) leases and other
occupancy agreements (the "Leases"), and (vi) contracts or other
similar arrangements for goods and services (the "Service Contracts").
1.2. By this Agreement, Buyer and Seller intend to provide for
the sale of the Real Property, the Improvements, the Personal Property
and the Intangible Property (collectively, the "Property") by Seller
to Buyer.
2. PURCHASE AND SALE. Subject to the terms and conditions of this
Agreement, Seller agrees to sell the Property to Buyer and Buyer agrees to
purchase the Property from Seller.
3. ESCROW.
3.1. OPENING OF ESCROW. Buyer shall immediately cause an
escrow (the "Escrow") to be opened at Escrow Holder's office located
at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇
▇▇▇▇-▇▇▇▇▇▇▇▇ for the purpose of facilitating the consummation of this
Agreement, by delivering the Deposit (as defined in Section 4.1 below)
to Escrow Holder along with a copy of the fully executed original (or
executed counterparts) of this Agreement within two (2) business days
after executing this Agreement. Escrow Holder shall, immediately upon
its receipt of the Deposit and executed Agreement, execute and deliver
to Buyer and Seller the Consent and Acceptance of Escrow Holder
attached to this Agreement, which Consent and Acceptance of Escrow
Holder shall specify the date of such receipt (the "Escrow Opening
Date"). This Agreement constitutes instructions to Escrow Holder.
Buyer and Seller shall execute such additional mutual instructions as
Escrow Holder may reasonably require, provided that such additional
instructions shall be consistent with this Agreement. Any
inconsistency between any such additional instructions and this
Agreement shall be resolved in a manner consistent with this
Agreement, and the provisions of this Agreement shall prevail unless
Buyer and Seller waive such inconsistent provision in writing by
specifically referring to the fact of such inconsistency and their
intent to waive it.
3.2. CLOSING DATE. The purchase and sale transaction
contemplated hereunder shall close in accordance with Article 8 below
(the "Closing") by 10:00 a.m. PST on the later of (i) the satisfaction
of the Concurrent Closing Contingency (as defined in Section 36 below)
and (ii) the tenth (10th) business day following the receipt of
Seller's Consent (as defined in Section 22 below) (the "Closing
Date"); provided, however, that if the Closing shall occur on the
Closing Date but after 10:00 a.m. PST, the Closing Date shall be
deemed to have occurred on the date of recordation of the Deed
(hereinafter defined) for purposes of calculating prorations under
Article 10 below, and provided further that Buyer shall have the
right, exercisable on written notice given to Seller not less than
five (5) days prior to the date originally scheduled as the Closing
Date, to extend such Closing Date for up to thirty (30) days to
accommodate the requirements of Buyer's lender and provided further
that in no event shall the Closing Date occur after February 1, 1999,
unless the parties otherwise agree in writing. If the Closing does
not occur on or before the Closing Date, then Buyer or Seller, if not
in default under this Agreement, may at any time thereafter give
written notice to Escrow Holder to cancel the Escrow whereupon the
Escrow and the subject transaction shall become terminated and Escrow
Holder shall distribute all monies and documents in Escrow Holder's
possession in accordance with this Agreement and all additional mutual
instructions as the parties may provide. Such cancellation of the
Escrow shall not prejudice
-2-
or limit any legal or equitable rights of Buyer or Seller, except as
may be limited by Article 12 below.
4. PURCHASE PRICE. The purchase price payable by Buyer for the
Property (the "Purchase Price") at the Closing is Four Million Five Hundred
Fifty Thousand and No/100 Dollars ($4,550,000.00), payable as follows:
4.1. DEPOSIT. Within three (3) business days after Buyer's
delivery of an executed copy of this Agreement to Escrow Holder, Buyer
shall deliver to Escrow Holder immediately available funds in the
amount of One Hundred Thousand and No/100 Dollars ($100,000.00) (the
"Deposit"). Escrow Holder shall promptly deposit the Deposit into a
federally-insured interest-bearing account for the benefit of Buyer
upon Escrow Holder's receipt of Buyer's United States taxpayer
identification number. The Deposit, plus any interest accrued
thereon, shall be applicable towards the Purchase Price except as
otherwise provided in Section 12 below.
4.2. BALANCE. Not later than one (1) business day prior to
the Closing Date, Buyer shall deposit with Escrow Holder cash or other
immediately available funds in the amount of the balance of the
Purchase Price, plus all other sums required of Buyer under this
Agreement to pay Buyer's costs and Buyer's share of prorations.
5. CONDITIONS PRECEDENT. Buyer's obligations under this Agreement
are subject to satisfaction or Buyer's written waiver of the following
conditions precedent (collectively, "Buyer's Conditions") on or before the
expiration of the applicable contingency period provided for below
(collectively, the "Contingency Periods"). If the respective Buyer's
Condition has not been satisfied or waived in writing, then at Buyer's
option, this Agreement and the Escrow shall be deemed terminated and neither
Buyer nor Seller shall have any further obligation to the other party under
this Agreement (except to the extent of any indemnities under this Agreement
with respect to events occurring before such termination, which indemnities
shall survive any such termination). If either party terminates the Escrow
in accordance with the preceding sentence, Escrow Holder shall, without
requiring any further instructions, immediately return the Deposit plus any
interest accrued thereon to Buyer.
5.1. DUE DILIGENCE DELIVERIES BY SELLER. Buyer acknowledges
that Seller prior to the date of this Agreement has provided to Buyer
copies of, or access to, the items identified on EXHIBIT C attached
hereto and that such items are the only items that Buyer has requested
from Seller for Buyer's examination and review of the Property and all
aspects thereof.
5.2. DUE DILIGENCE INVESTIGATION. Buyer acknowledges that it
has investigated, reviewed and approved (or has had an adequate
opportunity to investigate and review and accordingly approves) the
physical, developmental and economic status and feasibility of the
Property, including without limitation marketing studies, land use and
legal due diligence, engineering studies, soils tests, physical
inspections and environmental surveys with respect to the Property.
In order to facilitate Buyer's investigation and analysis, Seller
-3-
has granted and will continue to grant to Buyer the right to enter the
Property at any time during normal business hours upon forty-eight
(48) hours' prior written notice to Seller, to conduct such
inspections, reviews, examinations and tests on the Property as Buyer
has deemed necessary or desirable to investigate the physical
condition of the Property, as well as access to relevant information
relating to the Property within Seller's possession or under Seller's
control (but Seller has made and now makes no representation or
warranty regarding the accuracy or completeness of such information).
Buyer further acknowledges that it is acquiring the Property in its
"as-is" condition in accordance with Section 19 below.
5.3. SELLER'S CONSENT. Seller shall have obtained Seller's
Consent in accordance with Article 22 below.
5.4. STATUS OF TITLE AND SURVEY. If Buyer intends to obtain
extended coverage title insurance in connection with this Agreement,
then Buyer shall obtain at its sole cost and expense an as-built
survey of the Property complying with 1992 ALTA/ACSM minimum standards
(the "Survey"). Buyer acknowledges that Buyer has approved the
exceptions to title shown in that certain preliminary title report or
owner's title commitment for the Property issued by the Title Company
(the "Title Report") and matters shown on the Survey (if any) other
than those exceptions or matters identified on EXHIBIT D attached
hereto ("Disapproved Title Exceptions"), which Disapproved Title
Exceptions Seller shall remove (or cause to be removed) as exceptions
to title prior to the Closing. Buyer shall have the continuing right
to update the Title Report and the Survey from time to time and to
give Seller notice of any additional Disapproved Title Exceptions
first arising after the date of the Title Report or the Survey, as the
case may be. Within ten (10) business days following receipt of any
written notice of such additional Disapproved Title Exceptions from
Buyer, Seller shall notify Buyer in writing of which of such
additional Disapproved Title Exceptions Seller will agree to cure on
or before the Closing Date; provided, however, that Seller shall
satisfy and correct, at or before the Closing, any Disapproved Title
Exceptions constituting a mortgage, deed of trust or other lien
encumbering all or any portion of the Property (other than liens
created by Buyer's acts or omissions) or otherwise created by Seller's
acts or omissions on or after the date of this Agreement ("Mandatory
Cure Items"). In the event Seller elects not to satisfy or cure any
such additional Disapproved Title Exceptions of which it is so
notified, then, within ten (10) business days following receipt of
Seller's election, Buyer shall by written notice to Seller elect one
of the following:
5.4.1. To waive such additional Disapproved Title
Exceptions and to close the transaction contemplated hereby in
accordance with the terms of this Agreement; provided, however,
that with respect to any Disapproved Title Exception which is a
Mandatory Cure Item, Buyer shall be entitled to satisfy or
remove any such Disapproved Title Exception(s) at the Closing
and to credit against the Purchase Price the amount required to
satisfy or remove such Mandatory Cure Item(s); or
-4-
5.4.2. To terminate this Agreement, in which event
Buyer shall be entitled to the immediate return of the Deposit
and the parties hereto shall have no further rights, duties or
obligations under this Agreement, except those rights, duties
and obligations that, by the express terms hereof, survive
termination of this Agreement.
5.5. OWNER'S POLICY. On or before the Closing, the Title
Company must be prepared to issue to Buyer an Owner's Policy of Title
Insurance for the Property (the "Title Policy") effective as of the
Closing, insuring Buyer in the amount of the Purchase Price that title
to the Property is vested in Buyer at the Closing, subject only to (a)
standard pre-printed exceptions (other than those preprinted
exceptions that can be removed with a customary seller's affidavit),
(b) liens for taxes and assessments not yet delinquent, (c) those
exceptions to title described in the corresponding Title Report other
than the Disapproved Title Exceptions and (d) exceptions created or
suffered by Buyer. Buyer may require a policy without a generic
survey exception only if Buyer can timely provide Title Company with
all information necessary in order for the policy to be issued on or
before the Closing Date. Seller shall not suffer any liability in
connection with its failure to remove any title exception; Buyer's
sole remedy for Seller's failure to cause the elimination of a
Disapproved Title Exception shall be termination of this Agreement.
Notwithstanding the foregoing, Seller shall cause the removal of any
Mandatory Cure Item at or before the Closing.
5.6. SELLER'S FINANCIAL CONDITION. Seller has not (i) made an
assignment for the benefit of creditors, (ii) filed a petition in
bankruptcy, (iii) been adjudicated insolvent or bankrupt, (iv)
petitioned a court for the appointment of any receiver of or trustee
for it or any substantial part of its property, (v) commenced any
proceeding relating to Seller under any reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, whether now or hereafter in effect. There shall not
have been commenced and be pending against Seller any proceeding of
the nature described in the first sentence of this Section 5.6. No
order for relief shall have been entered with respect to Seller under
the Federal Bankruptcy Code.
5.7. COVENANTS, REPRESENTATIONS AND WARRANTIES. Seller shall
have complied, and at Closing shall then be in compliance, with each
and all of its covenants contained in this Agreement in all material
respects, and the representations and warranties set forth in
Paragraph 7 hereof shall be true, complete and accurate as of the
Closing Date in all material respects.
5.8. SELLER'S DELIVERIES. Seller shall have delivered to
Buyer, in form and substance in accordance with the requirements
herein, all instruments and documents required on Seller's part to
effectuate this Agreement and the transactions contemplated hereby.
-5-
Except for the Buyer's Condition referenced in Section 5.3 above, which is a
condition to Buyer's and Seller's obligations under this Agreement, any one
or more of the foregoing Buyer's Conditions may be waived by Buyer on or
before the Closing Date.
6. BUYER'S DELIVERIES. Provided that all other conditions to Buyer's
obligation to consummate the Closing shall have been or shall concurrently be
satisfied, Buyer shall deliver to Seller through Escrow Holder, on or before
the Closing Date, for disbursement, delivery and recordation, as provided in
this Agreement, the following funds, instruments and documents, the delivery
of which is material to the consummation of the subject transaction:
6.1. FUNDS. Immediately available funds in the amount
required of Buyer under this Agreement including sufficient funds to
meet Buyer's obligations under Sections 4.2, 9 and 10.
6.2. AUTHORITY. Evidence in form and substance reasonably
satisfactory to Seller and its legal counsel that Buyer is authorized
to enter into and consummate the transactions contemplated by this
Agreement.
6.3. ASSIGNMENT OF OCCUPANCY AGREEMENTS AND SERVICE CONTRACTS.
An executed counterpart of the Assignment referenced in Section 7.5
below.
6.4. CLOSING STATEMENT. The Closing Statement summarizing the
prorations and other financial aspects of the transaction.
6.5. OTHER DOCUMENTS. Any documents reasonably required of
Buyer by Title Company or Escrow Holder in order to consummate the
subject transaction.
7. SELLER'S DELIVERIES. Provided that all other conditions to
Seller's obligation to consummate the Closing shall have been or shall
concurrently be satisfied, Seller shall deliver to Buyer through Escrow
Holder on or before the Closing, for disbursement, delivery and recordation,
as provided in this Agreement, the following instruments and documents, the
delivery of which is material to the Closing:
7.1. LIMITED WARRANTY DEED. A limited warranty deed (the
"Deed") in substantially the form set forth as EXHIBIT E attached
hereto, conveying to Buyer good and marketable fee simple title to the
Real Estate, together with all rights, members, easements and
appurtenances thereto, expressly subject to the title exceptions
approved by Buyer as provided in Section 5.4 above. In addition,
Seller shall deliver an executed Real Estate Transfer Tax Declaration
or local equivalent.
7.2. RELEASE OF EXISTING INDEBTEDNESS. Seller shall cause the
Property to be released from all mortgages, deeds of trust, deeds to
secure debt, security agreements, filings and statements and other
security interests relating to any existing indebtedness that is
secured in whole or in part by the Property.
-6-
7.3. SELLER'S AFFIDAVIT. A Seller's Affidavit in the form set
forth as EXHIBIT F attached hereto and made a part hereof.
7.4. BLANKET ▇▇▇▇ OF SALE AND TRANSFER. A blanket ▇▇▇▇ of
sale, transfer and assignment agreement (the "▇▇▇▇ of Sale") in
substantially the form set forth as EXHIBIT G attached hereto,
assigning to Buyer all of Seller's right, title and interest in and to
any and all Personal Property.
7.5. ASSIGNMENT OF LEASES AND SERVICE CONTRACTS. An
assignment and assumption of Leases and Service Contracts and other
Intangible Property (the "Assignment") in substantially the form set
forth as EXHIBIT H attached hereto, assigning to Buyer all of Seller's
right, title and interest in and to the Leases and Service Contracts
(that Buyer shall have elected or elects to assume) and other
Intangible Property with a cross-indemnity between Seller and Buyer,
with Seller indemnifying Buyer with respect to any liability arising
under the Leases and Service Contracts for the period up to, but not
including, the Closing Date, and Buyer indemnifying Seller with
respect to any liability arising under the Leases and Service
Contracts arising on and after the Closing Date, respectively, and
with an express assumption by Buyer of Seller's obligations under the
Leases and Service Contracts arising on and after the Closing Date.
7.6. CERTIFIED RENT ROLL. Seller shall deliver to Buyer a
certificate, in substantially the form of EXHIBIT I attached hereto,
pursuant to which Seller shall certify to Buyer a then current Rent
Roll for the Property.
7.7. SELLER'S CERTIFICATE. A certificate addressed to Buyer
stating that the representations and warranties set forth in Section
14 are true and correct as of the Closing in all material respects or
stating any exceptions thereto.
7.8. CERTIFICATE OF NON-FOREIGN STATUS. A certificate
addressed to Buyer made in compliance with Paragraph 1445 of the
Internal Revenue Code that Seller is not a foreign person and not
subject to withholding requirements.
7.9. CLOSING STATEMENT. The Closing Statement summarizing the
prorations and other financial aspects of the transaction contemplated
by this Agreement.
7.10. LEASES AND SERVICE CONTRACTS. The original Leases,
Service Contracts, Warranties, certificate(s) of occupancy, permits
and licenses.
7.11. AUTHORITY. Evidence in form and substance reasonably
satisfactory to Buyer and its legal counsel that Seller is authorized
to enter into and consummate the transactions contemplated by this
Agreement.
7.12. KEYS. Seller shall deliver to Buyer all of the keys in
Seller's possession to any door or lock in or on the Property.
-7-
7.13. TENANT FILES. The current tenant files, including all
correspondence, notices, financial information, sales reports and
other information.
7.14. MATERIALS. All materials pertaining to the operation and
maintenance of the Property.
7.15. OTHER DOCUMENTS. All other documents reasonably required
of Seller by Escrow Holder in order to consummate the subject
transaction.
8. CLOSING ESCROW. On the Closing Date, provided that Escrow Holder
shall have received all of the documents, instruments and funds required to
be delivered by Buyer and Seller in accordance with Articles 6 and 7 above
(other than those documents and other items specified in Sections 7.10, 7.12,
7.13 and 7.14 above, which shall be deemed delivered concurrently with
delivery of possession of the Property to Buyer), and provided that Title
Company is prepared to issue the Title Policy upon the Closing and that all
other conditions to the Closing have been satisfied (or waived by the party
to this Agreement which benefits from such condition), Escrow Holder shall
promptly perform all of the following:
8.1. RECORDING. Cause the Deed to be recorded with the real
property records of the county in which the Property is located.
8.2. BUYER'S DELIVERIES. Deliver to Seller all of the items
pursuant to Section 6 above.
8.3. SELLER'S DELIVERIES. Deliver to Buyer the ▇▇▇▇ of Sale,
the Assignment and all of the other items pursuant to Article 7 except
as otherwise provided above.
8.4. COSTS AND PRORATIONS. Pay the costs and apply the
prorations in accordance with Articles 9 and 10 below.
8.5. ISSUANCE OF TITLE POLICY. Cause the Title Policy to be
issued and delivered to Buyer.
8.6. DISBURSEMENT OF PURCHASE PRICE. Disburse to Seller, or
in accordance with Seller's instructions (after making appropriate
adjustments for costs and prorations as provided in this Agreement),
all funds deposited with Escrow Holder by Buyer in payment of the
Purchase Price.
9. COSTS. Seller shall pay (a) one-half (1/2) of Escrow Holder's
fee, (b) any documentary transfer and stamp taxes payable in connection with
the recordation of the Deed and (c) Escrow Holder's customary charges to a
seller for document drafting, recording and miscellaneous charges. Buyer
shall pay (i) one-half (1/2) of Escrow Holder's fee, (ii) the premiums and
other costs for the Title Policy, including without limitation any
endorsements relating thereto, (iii) Escrow Holder's customary charges to a
buyer for document drafting, recording and miscellaneous charges, and (iv)
all costs associated with Buyer's financing of any or all of the
-8-
Purchase Price, including without limitation any applicable intangible taxes,
documentary stamps and recording costs and any fees for any loan, appraisal,
title insurance policy or other service.
10. PRORATIONS. The following shall be prorated between Buyer and
Seller as of 11:59 p.m. local time of the day immediately preceding the
Closing Date, on the basis of the actual number of days elapsed during the
month in which the Closing occurs: general and special county and city real
property taxes and special assessments (collectively, "Taxes") for the tax
period then in effect and insurance premiums (but only if Buyer is assuming
Seller's insurance policy or policies). Proration of Taxes shall be based on
the most recent official tax bills or notice of valuation available for the
fiscal year in which the Closing occurs, with due allowance to be made for
the maximum available discount or other exemptions to the extent permissible
for said year, and to the extent the tax bills do not accurately reflect the
actual Taxes assessed against the Property (or any portion of the Property)
and allocable either to the period before the Closing or to the period after
the Closing, then Buyer and Seller shall adjust the actual Taxes between
Buyer and Seller, outside of Escrow, as soon as reasonably possible following
the Closing. In addition to the foregoing apportionments, Seller shall
receive all rents and other income accrued, and shall pay all other expenses
accrued or incurred, in connection with the ownership or operation of
Property before the Closing Date, and Buyer shall receive all rents and other
income accruing, and shall pay all other expenses accrued or incurred, in
connection with the ownership or operation of Property on or after the
Closing Date, all of which rents, other income and expenses shall be prorated
as of the Closing. Rents and other income, if any, collected by Buyer after
the Closing shall be applied first to any amounts due to Buyer and then, to
the extent such rents or other income relate to the period ending on or
before the Closing, such rents or other income shall be paid to Seller within
ten (10) days after end of the month in which such amounts were collected.
Buyer shall incur no obligation to Seller for Buyer's failure to collect such
rentals or other income. All security and any other refundable deposits paid
by tenants to Seller pursuant to tenant leases shall be delivered by
certified funds to Buyer at the Closing or, at Seller's option, credited to
Buyer against the cash portion of the Purchase Price at the Closing. Escrow
Holder shall not be concerned with any prorations that are to be made after
the Closing pursuant to this Agreement.
11. FAILURE OF ESCROW TO CLOSE. If Escrow fails to close by reason
of a failure of a Buyer's Condition in accordance with Article 5 above, or
because of a default by Seller under this Agreement, Buyer shall be entitled
to the immediate return of the Deposit upon delivery of written notice by
Buyer to Escrow Holder. If this Agreement or Escrow is terminated, Buyer
shall return to Seller, within two (2) business days after the termination of
Escrow, all documents and materials provided by Seller or its agents to Buyer
or its agents in connection with this Agreement or the Property and all
copies thereof.
12. LIQUIDATED DAMAGES. THE PARTIES HAVE DISCUSSED AND NEGOTIATED IN
GOOD FAITH THE QUESTION OF THE DAMAGES THAT WOULD BE SUFFERED BY SELLER IF
THE CLOSING DOES NOT OCCUR BECAUSE BUYER BREACHES THIS AGREEMENT AND HAVE
ENDEAVORED TO REASONABLY ESTIMATE SUCH DAMAGES. THEY AGREE THAT (I) SUCH
DAMAGES ARE AND WILL BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, (II)
LIQUIDATED
-9-
DAMAGES IN THE AMOUNT OF THE DEPOSIT (AS IT MAY BE INCREASED FROM TIME TO
TIME) ARE AND WOULD BE REASONABLE AS A MEASURE OF SUCH DAMAGES, (III) IN THE
EVENT OF SUCH BREACH, SELLER SHALL BE ENTITLED TO RETAIN THE DEPOSIT AS SUCH
LIQUIDATED DAMAGES, AND (IV) IN CONSIDERATION OF THE PAYMENT OF SUCH
LIQUIDATED DAMAGES, SELLER SHALL BE DEEMED TO HAVE WAIVED ALL OTHER CLAIMS
FOR DAMAGES OR RELIEF AT LAW OR IN EQUITY ON ACCOUNT OF THE FAILURE OF THE
CLOSING TO OCCUR, EXCEPT FOR: (A) CLAIMS FOR THE RETURN OR OTHER DELIVERY OF
DOCUMENTS IN CONNECTION WITH THIS AGREEMENT; (B) ACTIONS TO EXPUNGE A LIS
PENDENS OR OTHER CLOUDS ON TITLE CAUSED BY BUYER; (C) CLAIMS ON ACCOUNT OF
BUYER'S INDEMNITY OBLIGATIONS UNDER THIS AGREEMENT, AND (D) ATTORNEYS' FEES
AND COSTS INCURRED BY SELLER INCIDENT TO CLAUSES (A) THROUGH (C).
NOTWITHSTANDING THE FOREGOING, IN THE EVENT BUYER OBJECTS TO, FAILS TO
COOPERATE WITH OR OTHERWISE OPPOSES SELLER'S WITHDRAWAL OF THE DEPOSIT OUT OF
THE ESCROW, SELLER SHALL HAVE ALL OF THE REMEDIES OTHERWISE AVAILABLE TO
SELLER AT LAW OR IN EQUITY.
SELLER'S INITIALS BUYER'S INITIALS
__________ __________
13. POSSESSION. Seller shall deliver possession of the Property to
Buyer on the Closing Date, subject to the rights of tenants.
14. SELLER'S REPRESENTATIONS AND WARRANTIES. Seller represents and
warrants to and covenants with Buyer that the following representations and
warranties are complete and accurate as of the date of this Agreement and
will be complete and accurate as of the Closing Date:
14.1. AUTHORITY. Seller is a limited partnership, duly
organized, validly existing and in good standing under the laws of the
State of Florida, and Seller has full right, power and authority to
enter into this Agreement and to perform all of the obligations and
liabilities of Seller hereunder. This Agreement has been duly and
validly authorized, executed and delivered by and on behalf of Seller
and, assuming the due authorization, execution and delivery thereof by
and on behalf of Buyer, constitutes a valid and binding obligation of
Seller enforceable in accordance with its terms, subject to the
effects of bankruptcy, insolvency, reorganization, receivership and
other similar laws affecting the rights and remedies of creditors
generally and to general equitable principles (whether considered in a
proceeding at law or in equity). Neither the execution nor delivery
of this Agreement or any other documents executed and delivered, or to
be executed and delivered, by Seller in connection with the
transactions described herein will violate any provision of Seller's
organizational documents or of any agreements, regulations or laws to
which Seller is bound.
-10-
14.2. NO OTHER AGREEMENTS. To Seller's actual knowledge,
other than this Agreement, the Leases, the Service Contracts and the
matters identified on EXHIBIT J attached hereto, there are no leases,
service contracts, management agreements or other agreements or
instruments in force or effect that (a) grant to any person or entity
any right, title, interest or benefit in or to all or any part of the
Property or (b) any rights relating to the use, maintenance,
operation, construction or management of all or any part of the
Property.
14.3. NO LITIGATION. Except as set forth in EXHIBIT K
attached hereto, Seller has no actual knowledge, nor has Seller
received any notice, of any pending litigation or proceeding brought
by any person or entity or Governmental Authority against Seller with
respect to the Property.
14.4. POSSESSION. To Seller's actual knowledge, except for
the tenants in possession of the Property under the Leases, as shown
in the Rent Roll, there are no parties in possession of or claiming
any possession to any portion of the Property as lessees, tenants at
sufferance, licensees, easement holders, trespassers or otherwise.
14.5. NO ASSESSMENTS. Seller has received no notice of any
(a) assessments against the Property that are unpaid, whether or not
they have become liens, except ad valorem taxes for the current year,
or (b) any change in the assessed value or basis for levy of taxes
regarding the Property.
14.6. NOTICE OF CONDEMNATION; RIGHT OF WAY MATTERS. Seller has
received no notice of any threatened or contemplated action by any
Governmental Authority having the power of eminent domain, which might
result in any part of the Property being taken by condemnation or
conveyed in lieu thereof. Seller shall, promptly upon receiving any
such notice, give Buyer written notice thereof.
14.7. VIOLATION OF LAWS. Seller has received no notice that
any Governmental Authority has determined that there are any
violations of zoning, health, environmental, or other statutes,
ordinances, or regulations affecting the Property. In the event
Seller receives notice of any such violations prior to Closing
affecting the Property, Seller shall promptly notify Buyer thereof.
14.8. NO BANKRUPTCY. Seller is not a party to any voluntary
or involuntary proceedings in bankruptcy, reorganization or similar
proceedings under the federal bankruptcy laws or under any state laws
relating to the protection of debtors, or subject to any general
assignment for the benefit of creditors, and to Seller's actual
knowledge, no such action has been threatened.
14.9. ZONING. Seller shall, promptly upon receiving any
notice of any contemplated or threatened rezoning of the Property,
give Buyer written notice thereof.
-11-
14.10. SERVICE CONTRACTS. Attached hereto as EXHIBIT L and
incorporated herein is a complete and accurate list of all of the
Service Contracts and as of the date of this Agreement Seller has
delivered to Buyer complete and accurate copies of all such Service
Contracts. Seller has received no notice of any default, or claim of
default, on the part of any party to any of such Service Contracts,
and within five (5) business days following mutual execution of this
Agreement, Buyer shall notify Seller of any Service Contract that
Buyer wishes to assume and Seller, at its sole cost and expense, shall
terminate all other Service Contracts within five (5) days prior to
Closing in accordance with (but only to the extent permitted under)
the governing terms of the applicable Service Contract.
14.11. LEASES. The copies of the Leases delivered or made
available by Seller to Buyer in accordance with Section 7.10 above are
complete and accurate, and there are no amendments or modifications
thereto not disclosed on the rent roll delivered in accordance with
Section 7.6 above or otherwise in writing by Seller to Buyer. Seller
hereby covenants and agrees with Buyer that, so long as this Agreement
remains in full force and effect, Seller will continue to operate and
manage the Property in substantially the same manner as it has been
operated and managed in the past.
14.12. AVAILABILITY OF AGREEMENTS. Seller shall make available
to Buyer for review at Seller's offices at the Property during normal
business hours, and upon reasonable advance notice, full, true,
correct and complete copies of all Service Contracts, Leases and all
written amendments, modifications, agreements, or understandings
relating thereto as are in effect from time to time while this
Agreement remains in effect.
14.13. EMPLOYEE LIABILITY. To Seller's actual knowledge, after
the Closing Buyer shall not be obligated to continue the employment of
any of the employees of Seller or Seller's property manager. To
Seller's actual knowledge, all of the employees for the Property are
employees of Seller's property manager and not of Seller.
14.14. HAZARDOUS MATERIALS. To Seller's actual knowledge,
Seller has not generated, disposed of, released or found any Hazardous
Materials (hereinafter defined) on the Property, and Seller has no
actual knowledge of the existence of any areas for the generation,
storage or disposal of any Hazardous Materials on the Property.
Seller has received no notice that any Governmental Authority has
determined that there are any violations of Environmental Laws (as
hereinafter defined) affecting the Property. In the event Seller
receives notice of any such Hazardous Materials on the Property or any
such violation affecting the Property prior to the Closing, Seller
immediately shall notify Buyer thereof. "Hazardous Materials" means
petroleum, including crude oil or any fraction thereof, asbestos,
radon gas, polychlorinated biphenyls, and any other substance
identified as hazardous in the following, as the same may have been
amended: the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, 42 U.S.C. Section 9601, ET SEQ.; the Resource
Conservation Act of 1976, 42 U.S.C. Section 6921, ET SEQ.; the Toxic
Substances Control Act, 15 U.S.C. Section 2601, ET SEQ.; the Federal
Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Section 136; the
Federal Water Pollution Control Act, 33 U.S.C. Section 1251, ET SEQ.;
the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801,
ET SEQ.; the
-▇▇-
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇, 42 U.S.C. Section 6901, ET SEQ.; the
Clean Air Act, 42 U.S.C. Section 7401, ET SEQ.; and any other
legislation or ordinance of any Governmental Authority identified by
its terms as pertaining to hazardous materials, waste or asbestos
("Environmental Laws").
14.15. AGREEMENTS AFFECTING THE PROPERTY. Subject to the
provisions in Section 14.11 hereof, Seller hereby covenants and agrees
with Buyer that, so long as this Agreement remains in full force and
effect, Seller will not sell, assign, convey (absolutely or as
security), grant a security interest in, or otherwise encumber or
dispose of, the Property (or any interest or estate therein) without
the prior written consent of the Buyer. Seller has not executed and
will execute no exclusive or other brokerage agreements which will
survive the Closing Date. Seller shall not enter into Service
Contracts from and after the date of this Agreement without the prior
written consent of Buyer, which consent may be granted or withheld in
Buyer's sole and absolute discretion; provided, however, that Seller
hereby covenants and agrees with Buyer that, so long as this Agreement
remains in full force and effect, Seller will continue to operate and
manage the Property in substantially the same manner as it has been
operated and managed in the past.
14.16. MAINTENANCE OF INSURANCE. Seller shall maintain in full
force and effect all existing policies of insurance relating to the
Property through and including the Closing Date, shall pay all
premiums with respect to such insurance on or before the due date
therefor and shall not knowingly take any action which would cause
such insurance not to remain in full force and effect or fail
knowingly to take any action required to maintain such insurance in
full force and effect.
14.17. FIXTURES. All fixtures and articles of Personal
Property included in and which are part of the sale are now, and at
the Closing will be, owned by Seller free and clear of any conditional
bills of sale, chattel mortgages, security agreements or financing
statements, or other liens of security interest created by Seller, and
shall be transferred to Buyer as a part of the transaction.
14.18. SECURITY DEPOSITS. Security deposits shown in the
certified rent roll are a full, true and complete list of all of the
security deposits for the Property and are now held by Seller and
Seller's property manager under the terms of the Leases, and none have
been forfeited by any existing tenant.
14.19. NON-FOREIGN STATUS. Seller is not a "foreign person" as
that term is defined in the Internal Revenue Code of 1986, as amended,
and the regulations promulgated pursuant thereto, and Buyer has no
obligation under the Internal Revenue Code Section 1445 to withhold
and pay over to the Internal Revenue Service any part of the "amount
realized" by Seller in the transaction contemplated hereby (as such
term is defined in the regulations issued under Internal Revenue Code
Section 1445).
14.20. REPRESENTATIONS, WARRANTIES AND COVENANTS RE-MADE AT
CLOSING. The foregoing warranties and representations are true, and
the foregoing covenants are in full
-13-
force and effect and binding on Seller as of the date hereof and shall
be in full force and effect and deemed to have been automatically
reaffirmed and restated by Seller as of the Closing Date.
For purposes of this Section 14, "Seller's actual knowledge" shall mean the
knowledge of (i) J. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, (ii) ▇▇▇▇▇ ▇▇▇▇▇▇ and (iii) ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇ without any duty of investigation or inquiry and "notice" shall mean
written notice. The representations and warranties of Seller shall survive
the Closing for six (6) months, and any claim made by Buyer against Seller
with respect thereto must be asserted within such six-month period.
15. BUYER'S REPRESENTATIONS AND WARRANTIES. The accuracy and
completeness of the following constitute a condition to the Closing, and
Buyer represents and warrants to Seller that the following is complete and
accurate as of the date of this Agreement and shall be complete and accurate
as of the Closing, and shall survive the Closing: Buyer is duly organized
and validly existing and is (or will at the Closing be) qualified to conduct
its business and has the legal power, right and authority to enter into this
Agreement and to consummate the transactions contemplated by this Agreement.
All requisite action (corporate, partnership, trust or otherwise) has been
taken by Buyer in connection with entering into this Agreement and the
consummation of the transactions contemplated by this Agreement. The
individual executing this Agreement on behalf of Buyer has the legal power,
right and actual authority to bind Buyer to the terms and conditions of this
Agreement. This Agreement and all documents required by this Agreement to be
executed by Buyer are and are valid, legally binding obligations of and
enforceable against Buyer in accordance with their terms. The foregoing
warranties and representations are true, and the foregoing covenants are in
full force and effect and binding on Buyer as of the date hereof and shall be
in full force and effect and deemed to have been automatically reaffirmed and
restated by Buyer as of the Closing Date.
16. CONDEMNATION. If all or any material portion of the Property is
taken by eminent domain (or is the subject of a pending or contemplated
taking which has not been consummated) before the Closing, then (a) Seller,
if Seller has actual knowledge thereof, shall notify Buyer of such fact and
(b) Buyer shall have the option to terminate this Agreement upon written
notice to Escrow Holder and Seller given no later than thirty (30) business
days after Seller has given such notice. For purposes of the foregoing
sentence, a portion of the Property shall not be deemed material unless the
taking thereof diminishes the rentable area of the building or the recreation
facilities or restricts access to the Property. If this Agreement is so
terminated, then (i) Buyer shall pay all costs associated with the
cancellation of the Escrow pursuant to this Section, (ii) neither Buyer nor
Seller shall have any further rights or obligations under this Agreement
(except to the extent of any indemnities under this Agreement with respect to
events occurring before such termination, which indemnities shall survive any
such termination), and (iii) Escrow Holder shall, without requiring any
further instruction from Seller, immediately return to Buyer the Deposit and
all interest accrued thereon. If Buyer does not terminate this Agreement
within such thirty-day period, then (A) Buyer shall not thereafter have the
right to terminate this Agreement by reason of such taking and (B) Buyer and
Seller shall proceed to the Closing in accordance with this Agreement,
without modification of the terms of this Agreement, except that (1) the
Property will not include the property so taken, (2) the Purchase Price will
be reduced
-14-
by the amount of any awards for such taking awarded to Seller as of the
Closing Date, and (3) Seller shall assign and turn over to Buyer, and Buyer
shall be entitled to receive and retain, all awards for such taking not yet
awarded as of the Closing.
17. DESTRUCTION. If the Property or any portion thereof is damaged
by fire or other casualty on or before the Closing Date, Seller immediately
shall notify Buyer of such damage. If the estimated cost to repair the
damage is less than the greater of (i) $400,000 and (ii) five percent (5%) of
the Purchase Price and does not eliminate or materially impair access to the
Property, Buyer and Seller shall proceed to the Closing in accordance with
the terms of this Agreement, without modification of the terms of this
Agreement, in which event Buyer shall be entitled to an assignment of the
proceeds of all insurance relating to such fire or other casualty. If the
estimated cost to repair the damage equals or exceeds the greater of (i)
$400,000 and (ii) five percent (5%) of the Purchase Price, Buyer may elect
either (a) to terminate this Agreement and receive the return of the Deposit
(minus any escrow or title cancellation fees), in which case neither party
shall have any additional rights or obligations under this Agreement, or (b)
to proceed to the Closing in accordance with this Agreement, without
modification of the terms of this Agreement, in which event Buyer shall be
entitled to an assignment of the proceeds of all insurance relating to such
fire or other casualty, if any. Such election shall be made by Buyer within
thirty (30) business days following Seller's notification to Buyer. Buyer's
failure to elect to terminate this Agreement within such thirty-day period
shall conclusively be deemed an election to proceed to the Closing.
18. BROKERS. Each party to this Agreement represents and warrants to
the other that no real estate or business broker, agent, finder, or other
person is responsible for bringing about or negotiating this Agreement and
that such party has not dealt with any real estate broker, agent, finder or
person relative to this Agreement in any manner. Each party to this
Agreement shall defend, indemnify, and hold harmless the other party to this
Agreement against all liabilities, damages, losses, costs, expenses,
attorneys' fees and claims arising from (a) any breach of such representation
by such indemnifying party set forth in the preceding sentence, and (b) any
claims that may be made against such indemnified party by any real estate
broker, agent, finder or other person alleging to have acted on behalf of or
to have dealt with such indemnifying party.
19. NO RELIANCE - AS-IS. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN
THIS AGREEMENT OR IN ANY OF THE DOCUMENTS TO BE DELIVERED PURSUANT HERETO,
BUYER ACKNOWLEDGES THAT IT IS PURCHASING THE PROPERTY IN RELIANCE SOLELY ON:
(I) BUYER'S INSPECTION OF THE REAL PROPERTY, THE PERSONAL PROPERTY AND THE
IMPROVEMENTS; (II) BUYER'S INDEPENDENT VERIFICATION OF THE TRUTH OF ANY
STATEMENTS CONTAINED IN THE DOCUMENTS MADE AVAILABLE TO BUYER; AND (III) THE
OPINIONS AND ADVICE OF CONSULTANTS AND ATTORNEYS ENGAGED BY BUYER CONCERNING
THE PROPERTY. BUYER FURTHER ACKNOWLEDGES THAT BEFORE ITS EXECUTION OF THIS
AGREEMENT BUYER SHALL HAVE PERFORMED OR WILL HAVE HAD AN OPPORTUNITY TO
PERFORM ALL OF ITS DUE DILIGENCE INVESTIGATIONS OF AND WITH RESPECT TO THE
PROPERTY AS BUYER DEEMS APPROPRIATE, INCLUDING ENGINEERING STUDIES, SOILS
TESTS, ENVIRONMENTAL SURVEYS AND TESTING, PHYSICAL INSPECTIONS, ALTA OR OTHER
SURVEYS AND MARKET ANALYSES AS WELL AS BUYER'S EVALUATION OF THE CONDITION
AND STATUS OF
-15-
THE PERSONAL PROPERTY AND IMPROVEMENTS AND THE OPERATION AND FUTURE PROSPECTS
OF THE PROPERTY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT
OR IN ANY OF THE DOCUMENTS TO BE DELIVERED PURSUANT HERETO, AT THE CLOSING,
BUYER ACCEPTS THE PROPERTY AND ALL MATTERS RELATING TO THE PROPERTY IN THEIR
"AS IS," "WHERE-IS" AND "WITH ALL FAULTS" CONDITION OR STATUS AS OF THE
CLOSING DATE, INCLUDING SUCH MATTERS AS: SOILS AND GEOLOGICAL CONDITION,
TOPOGRAPHY, AREA AND CONFIGURATION OF THE REAL PROPERTY; THE AGE AND
CONDITION OF THE IMPROVEMENTS AND PERSONAL PROPERTY; THE EXISTENCE OF ANY
HAZARDOUS OR TOXIC SUBSTANCES OR MATERIALS, CONSTRUCTION DEFECTS OR OTHER
MATTERS WHICH WOULD OR COULD NECESSITATE ABATEMENT OR REMEDIATION ACTION BY
THE PROPERTY'S OWNER; ANY PHYSICAL OR MECHANICAL DEFECTS IN THE IMPROVEMENTS
OR PERSONAL PROPERTY; ANY EASEMENT, LICENSE OR ENCROACHMENT WHICH IS NOT A
MATTER OF PUBLIC RECORD, WHETHER OR NOT VISIBLE UPON INSPECTION OF THE
PROPERTY; THE ZONING AND OTHER LAND USE REGULATIONS APPLICABLE TO THE
PROPERTY; AND ANY OTHER MATTER RELATING TO THE PROPERTY INCLUDING, BUT NOT
LIMITED TO, VALUE, TITLE, INCOME, FEASIBILITY, COST, MARKETING AND INVESTMENT
RETURN. BUYER ACKNOWLEDGES AND AGREES THAT SELLER IS NOT MAKING ANY EXPRESS
OR IMPLIED WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER WITH
RESPECT TO THE PROPERTY. IN PARTICULAR BUT NOT BY WAY OF LIMITATION OF THE
FOREGOING, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY OF THE
DOCUMENTS TO BE DELIVERED PURSUANT HERETO, SELLER MAKES NO WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, RELATING TO COMPLIANCE OF THE
IMPROVEMENTS WITH CURRENT BUILDING CODES, INCLUDING WITHOUT LIMITATION THOSE
RELATING TO UPDATED OR REVISED STANDARDS FOR PLUMBING, ELECTRICAL, STRUCTURAL
OR SEISMIC MATTERS. BUYER WARRANTS AND REPRESENTS TO SELLER THAT BUYER HAS
NOT RELIED ON AND WILL NOT RELY ON, EITHER DIRECTLY OR INDIRECTLY, ANY
WARRANTY OR REPRESENTATION OF SELLER NOT EXPLICITLY SET FORTH IN THIS
AGREEMENT.
20. INDEMNITY REGARDING INSPECTION. In consideration of Seller's
permission to Buyer and its agents to perform investigations and testing on
and about the Property prior to the Closing, Buyer shall defend, indemnify
and hold harmless Seller and Seller's partners, and their respective
officers, employees, agents, contractors, successors, assigns, and affiliates
(collectively, the "Indemnitees"), and the Property from all claims, costs,
liens, actions and judgments (including attorneys' fees and other defense
costs actually incurred by Seller) resulting from Buyer's investigation of
the Property or its attempts to obtain any regulatory approvals in connection
with the Property, or otherwise caused by Buyer or any of its employees,
agents or independent contractors, except for the non-negligent release of
Hazardous Materials already on the Property occasioned thereby. Unless and
until the Closing occurs, Buyer shall maintain all the information which it
obtains in connection with the Property in strict confidence and shall not
reveal any of such information to any party other than those parties to which
it may otherwise be required to disclose in accordance with applicable law.
Buyer shall, at Buyer's sole cost, promptly repair any damage resulting from
its activities on the Property and restore the Property to substantially the
same condition as before Buyer or any of its agents first entered the
Property. If the Closing does not occur on or before the Closing Date for
any reason other than a breach of this Agreement by Seller, Buyer shall
provide Seller, at Seller's cost, copies of all third-party engineering and
environmental reports and materials derived from Buyer's investigation of the
-16-
Property, concurrently with reimbursement by Seller of Buyer's out-of-pocket
costs in procuring such reports and materials.
21. BUYER'S REMEDIES. In the event the transaction contemplated
hereby is not consummated as a result of Seller's default hereunder, Buyer's
sole and exclusive remedies shall be either (i) to seek from Escrow Holder
the return of the Deposit and any other documents and funds then held by
Escrow Holder and Seller shall reimburse Buyer for Buyer's reasonable and
documented out-of-pocket expenses incurred in connection with the purchase
transaction contemplated under this Agreement (but in no event to exceed
one-fourth percent (1/4%) of Purchase Price)or (ii) to seek specific
performance of Seller's obligations hereunder by delivering the Purchase
Price into the Escrow; provided, however, that as conditions precedent to
such action for specific performance, [A] no uncured default in the
performance of Buyer's obligations under this Agreement shall exist and no
event shall have occurred which with the passage of time or with notice, or
both, could become such an event of default, and [B] Buyer shall not seek to
amend the Purchase Price in such action.
22. SELLER'S PARTNERS' APPROVAL. Notwithstanding anything to the
contrary contained in this Agreement, the Closing shall not occur unless and
until Seller shall have obtained written approval ("Seller's Consent") from
those partners of Seller (or those partners of the partners of Seller, as the
case may be) whose approval is legally required before Seller may sell the
Property to Buyer hereunder. Seller shall seek such approval immediately
after the Escrow Opening Date. If Seller's Consent is not obtained within
twenty-one (21) days after the Escrow Opening Date (as such period may be
extended by Seller at Seller's sole option for up to an additional forty (40)
days), Seller or Buyer may terminate this Agreement by written notice
delivered to the other before Seller's Consent is obtained, in which case
Buyer shall be entitled to the return of the Deposit and neither Buyer nor
Seller shall have any further rights or obligations under this Agreement
(except to the extent of any indemnities under this Agreement with respect to
events occurring before such termination, which indemnities shall survive any
such termination and except that Seller shall reimburse Buyer for Buyer's
reasonable and documented out-of-pocket engineering and environmental
expenses (but in no event to exceed $3,600)).
23. FURTHER ASSURANCES. Each party to this Agreement shall execute
and deliver all instruments and documents and take all actions as may be
reasonably required or appropriate to carry out the purposes of this
Agreement.
24. COUNTERPARTS AND EXHIBITS. This Agreement may be executed in
counterparts, each of which is deemed an original and all of which together
constitute one document. All exhibits attached to and referenced in this
Agreement are incorporated into this Agreement.
25. TIME OF ESSENCE. Time and strict and punctual performance are of
the essence with respect to each provision of this Agreement.
26. ATTORNEY'S FEES. The prevailing party in any litigation,
arbitration, mediation, bankruptcy, insolvency or other proceeding
("Proceeding") relating to the enforcement or interpretation of this
Agreement may recover from the unsuccessful party all costs, expenses and
-17-
actual attorney's fees (including expert witness and other consultants' fees
and costs) relating to or arising out of (a) the Proceeding (whether or not
the Proceeding proceeds to judgment), and (b) any post-judgment or post-award
proceeding including, without limitation, one to enforce or collect any
judgment or award resulting from the Proceeding. All such judgments and
awards shall contain a specific provision for the recovery of all such
subsequently incurred costs, expenses and actual attorney's fees.
27. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the state in which the Property is located.
Each party hereby authorizes and accepts service of process sufficient for
personal jurisdiction in any action against it as contemplated by this
paragraph by registered or certified mail, return receipt requested, postage
prepaid, to its address for the giving of notices set forth in this Agreement.
28. MODIFICATION. This Agreement may be modified only by a writing
executed by the party to this Agreement against whom enforcement of the
modification is sought.
29. PRIOR UNDERSTANDINGS. This Agreement and all documents
specifically referred to and executed in connection with this Agreement: (a)
contain the entire and final agreement of the parties to this Agreement with
respect to the subject matter of this Agreement, and (b) supersede all
negotiations, stipulations, understandings, agreements, representations and
warranties, if any, with respect to such subject matter, which precede or
accompany the execution of this Agreement.
30. INTERPRETATION. Whenever the context so requires in this
Agreement, all words used in the singular may include the plural (and vice
versa) and the word "person" includes a natural person, a corporation, a
firm, a partnership, a joint venture, a trust, an estate or any other entity.
The terms "includes" and "including" do not imply any limitation. Unless
"business day " is specified, the term "day" means a calendar day. The term
"business day" means any day other than a Saturday, Sunday or Federal or
other holiday in the State in which the Property is located. If the last day
for any act falls on a day other than a business day, the time for
performance shall be extended to the next business day. No remedy or
election under this Agreement is exclusive, but rather, to the extent
permitted by applicable law, each such remedy and election is cumulative with
all other remedies at law or in equity. The paragraph headings in this
Agreement (a) are included only for convenience, (b) do not in any manner
modify or limit any of the provisions of this Agreement and (c) may not be
used in the interpretation of this Agreement. Each provision of this
Agreement is valid and enforceable to the fullest extent permitted by law.
If any provision of this Agreement (or the application of such provision to
any person or circumstance) is or becomes invalid or unenforceable, the
remainder of this Agreement, and the application of such provision to persons
or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected by such invalidity or unenforceability.
31. SUCCESSORS-IN-INTEREST AND ASSIGNS. Buyer may not assign its
rights under this Agreement to any person or entity without the prior written
consent of Seller, which consent may be withheld in Seller's sole and
absolute discretion; provided, however, that Buyer may assign
-18-
such rights to a subsidiary wholly-owned by Buyer upon written notice given
to Seller not less than five (5) business days prior to the Closing. No
assignment by Buyer of any of its rights or obligations under this Agreement
shall relieve Buyer of any of its obligations under this Agreement unless
Seller expressly agrees to such release in writing. Subject to the
foregoing, this Agreement shall be binding on and shall inure to the benefit
of the successors-in-interest and assigns of each party to this Agreement.
32. NOTICES. Each notice and other communication required or
permitted to be given under this Agreement ("Notice") must be in writing.
Notice is duly given to another party upon: (a) hand delivery to the other
party, (b) receipt by the other party when sent by facsimile to the address
and number for such party set forth below (provided, however, that the Notice
is not effective unless a duplicate copy of the facsimile Notice is promptly
given by one of the other methods permitted under this paragraph), (c) three
business days after the Notice has been deposited with the United States
postal service as first class certified mail, return receipt requested,
postage prepaid, and addressed to the party as set forth below, or (d) the
next business day after the Notice has been deposited with a reputable
overnight delivery service, postage prepaid, addressed to the party as set
forth below with next-business-day delivery guaranteed, provided that the
sending party receives a confirmation of delivery from the
delivery-service-provider.
If to Seller:
Shadowood Village, Ltd.
c/o Continental American Properties, Ltd.
▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
-19-
If to Buyer:
DOC Investors, LLC
c/o Lend Lease Real Estate Investments, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
King & Spalding
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
If to Escrow Holder:
First American Title Insurance Company
▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇-▇▇▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
Each party shall make a reasonable, good faith effort to ensure that it will
accept or receive Notices to it that are given in accordance with this
paragraph. A party may change its address for purposes of this paragraph by
giving the other party(ies) written notice of a new address in the manner set
forth above.
33. WAIVER. Any waiver of a default or provision under this
Agreement must be in writing. No such waiver shall constitute a waiver of
any other default or provision concerning the same or any other provision of
this Agreement. No delay or omission by a party in the exercise of any of
its rights or remedies constitutes a waiver of (or otherwise impairs) such
right or remedy. A consent to or approval of an act does not waive or render
unnecessary the consent to or approval of any other or subsequent act.
34. DRAFTING AMBIGUITIES. Each party to this Agreement and its legal
counsel have reviewed and revised this Agreement. The rule of construction
that ambiguities are to be resolved against the drafting party or in favor of
the party receiving a particular benefit under an agreement shall not be
employed in the interpretation of this Agreement or any amendment to this
Agreement.
-20-
35. THIRD PARTY BENEFICIARIES. Nothing in this Agreement is intended
to confer any rights or remedies on any person other than the parties to this
Agreement and their respective successors-in-interest and permitted assignees.
36. CONCURRENT CLOSING. Notwithstanding anything to the contrary
contained in this Agreement, the Closing shall be subject to and contingent
upon, and shall occur concurrently with, the Closing of the purchase
transactions for the following properties between Seller (or entities
affiliated with Seller) and Buyer (the "Concurrent Closing Contingency"):
Autumn Heights, Creekside Oaks, Lakeview Village, Las Colinas, Oaktree
Village, Ponte Vedra Beach Village I, Ponte Vedra Village Beach II, Rancho
Antigua, Skyline Village, Tierra Catalina, Village at the Foothills I,
Village at the Foothills II & III; provided, however, that in the event this
purchase transaction or any of the other purchase transactions enumerated
above is terminated as a result of (i) condemnation or (ii) damage or
destruction in accordance with the applicable purchase agreement, such
purchase transaction(s) shall not be taken into account in determining
whether the Concurrent Closing Contingency shall have been satisfied (unless
the aggregate number of purchase transactions so terminated is two or more,
in which event the Concurrent Closing Contingency shall be deemed not to have
been satisfied) and provided further that in the event of (i) condemnation or
(ii) damage or destruction with respect to Creekside Oaks/Oaktree Village
(the "Companion Project") whereby the purchase transaction for the Companion
Project is terminated in accordance with the applicable purchase agreement,
this purchase transaction shall also be terminated but this purchase
transaction and the purchase transaction for the Companion Project shall be
deemed to be a single purchase transaction for purposes of determining the
aggregate number of purchase transactions so terminated. In addition, in the
event this purchase transaction or any of the other purchase transactions
enumerated above does not close as a result of a default by Buyer in the
performance of its obligations under this Agreement or any other respective
purchase agreement, Seller shall be entitled (but not obligated) to exercise
its rights under Section 12 above and the corresponding provisions of each
such purchase agreement even though the Concurrent Closing Contingency shall
not have been satisfied.
37. EXCLUSIVITY. So long as this Agreement is in effect, Seller
shall not solicit, negotiate, offer or accept an offer for the purchase of
the Property (or any interest therein) for sale or contract to sell the
Property (or any interest therein) to any party other than Buyer or
negotiate, solicit or entertain any offers to purchase or sell the Property
(or any interest therein).
38. CONFIDENTIALITY. Buyer and Seller agree that all documents and
information concerning the Property delivered to Buyer, the subject matter of
this Agreement and all negotiations shall remain confidential, and neither
party shall disclose any terms of this Agreement without the prior approval
of the other party except as may be required by law. Buyer and Seller shall
be entitled to disclose such information only to those parties required to
know it, including without limitation employees of either of the parties,
consultants, attorneys and accountants engaged by either Buyer or Seller, and
prospective or existing investors and lenders. This Section 38 shall expire
upon the earlier of the termination of this Agreement and the Closing.
-21-
39. RADON DISCLOSURE. Seller is required pursuant to Section
404.056(8), Florida Statutes, to disclose the following: Radon is a
naturally occurring radioactive gas that, when it has accumulated in a
building in sufficient quantities, may present health risks to persons who
are exposed to it over time. Levels of radon that exceed federal and state
guidelines have been found in buildings in Florida. Additional information
regarding radon and radon testing may be obtained from your county public
health unit.
-22-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.
SELLER:
SHADOWOOD VILLAGE, LTD.,
a Florida limited partnership
By: ConAm Property Services IV, Ltd.,
a California limited partnership,
its general partner
By: Continental American Development, Inc.,
a California corporation,
its general partner
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
----------------------------
Its: Vice President
[Signatures Continued On Next Page]
-23-
BUYER:
DOC Investors, LLC,
a Delaware limited liability company
By: ConAm DOC Affiliates LLC,
a California limited liability company,
its administrative member
By: Continental American Properties, Ltd.,
a California limited partnership,
its managing member
By: DJE Financial Corp.,
a California corporation,
its general partner
By: /s/ J. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
----------------------------
Its Vice President
-24-
CONSENT AND ACCEPTANCE OF ESCROW HOLDER:
The undersigned acknowledges having received an executed original of this
Agreement (or counterparts thereof) and the Deposit on January 26, 1999,
which date is the "Escrow Opening Date" for purposes of this Agreement.
The undersigned hereby consents to and accepts the instructions set forth in
the above Agreement for Purchase and Sale and Joint Escrow Instructions.
First American Title Insurance Company
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
----------------------------
Its: Vice President
-25-
INDEX OF EXHIBITS
EXHIBIT SECTION
------- -------
Exhibit A - Legal Description Section 1.1
Exhibit B - Schedule of Personal Property Section 1.1
Exhibit C - Due Diligence Materials Delivered to Buyer Section 5.1
Exhibit D - Disapproved Title Exceptions Section 5.4
Exhibit E - Form of Deed Section 7.1
Exhibit F - Form of Seller's Affidavit Section 7.3
Exhibit G - ▇▇▇▇ of Sale Section 7.4
Exhibit H - Form of Assignment Section 7.5
Exhibit I - Form of Certificate for Rent Roll Section 7.6
Exhibit J - Other Agreements and Instruments Section 14.2
Exhibit K - Pending Litigation or Other Proceedings Section 14.3
Exhibit L - Schedule of Service Contracts Section 14.10