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.
Appears in 13 contracts
Sources: Purchase and Sale Agreement (Conam Realty Investors 3 L P), Purchase and Sale Agreement (Conam Realty Investors 4 L P), Purchase and Sale Agreement (Conam Realty Investors 5 L P)
Prorations. The following Seller shall pay (i) unpaid assessments by Condominium and Homeowner’s Associations which accrued or came due prior to Close of Escrow subject to any limitations on Seller’s liability for such assessments under applicable law, (ii) property taxes and periodic assessments secured by the Property which accrued prior to Close of Escrow, and (iii) utility or municipal liens secured by the Property which accrued prior to Close of Escrow. Seller shall notify Buyer in the event a Condominium or Homeowner’s Association demands an amount which exceeds Seller’s liability to such Association under applicable law. No later than (3) business days after Seller delivers such notice to Buyer, Buyer shall elect to (i) terminate the Agreement and receive a refund of the ▇▇▇▇▇▇▇ Money Deposit as Buyer’s sole and absolute remedy or (ii) proceed with the transaction and assume full responsibility for payment of any Association demand to the extent such demand exceeds Seller’s liability to the Association under applicable law. NO OTHER PRORATIONS ARE CONTEMPLATED UNDER THIS AGREEMENT, AND BUYER SHALL BE SOLELY RESPONSIBLE FOR ALL EXPENSES SET FORTH IN (C) BELOW. ANY SUCH AMOUNTS WHICH BY LAW ARE TO BE PAID BY SELLER SHALL BE REIMBURSED TO SELLER BY BUYER AT/OR PRIOR TO CLOSE OF ESCROW. If the regular common interest community, unit owner’s homeowner’s or condominium association dues, fees or assessments were paid prior to the Close of Escrow for a period of time subsequent to such date, then Buyer shall pay to Seller that portion of the dues, fees, and/or assessment attributable to the period of time after the Close of Escrow. Insurance premiums will not be prorated between Buyer prorated. Seller cannot endorse or assign existing insurance policies (if any) to Buyer, and Seller may cancel any existing insurance on the Property as of 11:59 p.m. local time the Close of Escrow. Rent and other income under leases of the day immediately preceding the Closing Date, on the basis of the actual number of days elapsed during Property for 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 occurs shall not be concerned with any prorations that are to prorated and shall be made after the Closing pursuant to this Agreementproperty of and retained by Seller.
Appears in 7 contracts
Sources: Purchase Agreement, Real Estate Purchase Addendum, Real Estate Purchase Addendum
Prorations. The following shall be prorated between Buyer (a) Seller and Seller Purchaser agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the "Proration Time"), the following (collectively, the "Proration Items"):
(i) Rents, in accordance with Subsection 10.4(b) below.
(ii) Security Deposits and any prepaid rents, together with interest required to be paid thereon.
(iii) Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than five (5) days prior to the Closing Date, on and a per diem adjustment shall be made for the basis of days between the actual number of days elapsed during the month in which meter reading date and 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 Date based on the most recent official tax bills or notice of valuation available meter reading.
(iv) Amounts payable under the Service Contracts other than those Service Contracts which Purchaser has elected not to assume.
(v) Real estate taxes due and payable for the fiscal year in which calendar year. If the Closing occursDate shall occur before the tax rate is fixed, with due allowance the apportionment of real estate taxes shall be upon the basis of the tax rate for the preceding year applied to the latest assessed valuation. If subsequent to the Closing Date, real estate taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property should be determined to be made higher or lower than those that are apportioned, a new computation shall be made, and Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. Seller will be charged and credited 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 amounts of all of the Property) and allocable either Proration Items relating to the period before up to and including the Closing or Proration Time, and Purchaser will be charged and credited for all of the Proration Items relating to the period after the ClosingProration Time. The estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Purchaser prior to the Closing Date (the "Closing Statement"). The Closing Statement, then Buyer and Seller once agreed upon, shall adjust the actual Taxes between Buyer be signed by Purchaser 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 The proration shall be paid at Closing by Purchaser to Seller within ten (10if the prorations result in a net credit to Seller) days after end of or by Seller to Purchaser (if the month prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure Purchaser) by increasing or reducing the cash 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 Purchaser in payment of the Purchase Price at the Closing. Escrow Holder shall If the actual amounts of the Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller's insurance policies will not be concerned assigned to Purchaser. Final readings and final ▇▇▇▇▇▇▇▇ for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Purchaser will be obligated to make its own arrangements for any prorations that are deposits with the utility providers. The provisions of this Section 10.4(a) will survive the Closing for twelve (12) months.
(b) Purchaser will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period following the Proration Time. After the Closing, Seller will cause to be made paid or turned over to Purchaser all Rental, if any, received by Seller after Closing and attributable to any period following the Proration Time. "Rental" as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each Tenant's proration share of building operation and maintenance costs and expenses as provided for under the Lease, to the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property association dues, storage rentals, special event proceeds, temporary rents, telephone receipts, locker rentals, vending machine receipts and other sums and charges payable by Tenants under the Leases or from other occupants or users of the Property. Rental is delinquent when it was due prior to the Closing pursuant Date, and payment thereof has not been made on or before the Proration Time ("Delinquent Rental"). Delinquent Rental will not be prorated at Closing. Purchaser agrees to this Agreementinclude any Delinquent Rentals in its usual billing for up to six (6) months after Closing, but Purchaser will have no liability for the failure to collect any such amounts and will not be required to declare a default under any Lease or pursue legal action or incur any costs or expenses to enforce collection of any such amounts owed to Seller by any Tenant. All sums collected by Purchaser from and after Closing from each Tenant (excluding tenant specific ▇▇▇▇▇▇▇▇ for tenant work orders and other specific services will be applied first to current amounts owed by such Tenant to Purchaser and then to Delinquent Rental owed by such Tenant to Seller. Any sums due Seller will be promptly remitted to Seller.
Appears in 6 contracts
Sources: Agreement of Sale and Purchase (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty Corp), Agreement of Sale and Purchase (Mack Cali Realty L P)
Prorations. (a) The following prorations relating to the Purchased Assets shall be prorated between Buyer made:
(i) Except as provided in Section 2.3(a)(v) and Seller as Section 2.3(a)(vi), in the case of 11:59 p.m. local time Taxes with respect to a Straddle Period, for purposes of Retained Liabilities, the day immediately preceding portion of any such Tax that is allocable to Sellers with respect to any Purchased Asset shall be:
(A) in the case of Taxes that are either (1) based upon or related to income or receipts, or (2) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible), other than Transfer Taxes, equal to the amount that would be payable if the taxable period ended on the Closing Date; and
(B) in the case of Taxes imposed on a periodic basis, or otherwise measured by the level of any item, deemed to be the amount of such Taxes for the entire Straddle Period (after giving effect to amounts which may be deducted from or offset against such Taxes) (or, in the case of such Taxes determined on an arrears basis, the basis amount of such Taxes for the actual immediately preceding period), multiplied by a fraction, the numerator of which is the number of days elapsed during in the month in which period ending on the Closing occurs: general Date and special county and city real property taxes and special assessments the denominator of which is the number of days in the entire Straddle Period. In the case of any Tax based upon or measured by capital (collectivelyincluding net worth or long-term debt) or intangibles, "Taxes"any amount thereof required to be allocated under this clause (i) 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 computed by reference 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 level 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 such items on the Closing Date. All determinations necessary to effect the foregoing allocations shall be made in a manner consistent with prior practice of the applicable Seller, and Buyer shall receive all rents Seller Group member, or Seller Subsidiary.
(ii) All charges for water, wastewater treatment, sewers, electricity, fuel, gas, telephone, garbage and other income accruing, and shall pay all other expenses accrued or incurred, in connection with utilities relating to the ownership or operation of Transferred Real 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 incomeClosing Date, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Sellers being liable to the extent such rents or other income items relate to the period ending on or before Pre-Closing Tax Period, and Purchaser being liable to the Closingextent such items relate to the Post-Closing Tax Period.
(b) If any of the foregoing proration amounts cannot be determined as of the Closing Date due to final invoices not being issued as of the Closing Date, Purchasers and Sellers shall prorate such rents or items as and when the actual invoices are issued to the appropriate Party. The Party owing amounts to the other income by means of such prorations shall be paid to Seller pay the same within ten thirty (1030) days after end delivery of a written request by 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 Agreementpaying Party.
Appears in 5 contracts
Sources: Master Sale and Purchase Agreement, Master Sale and Purchase Agreement, Master Sale and Purchase Agreement
Prorations. (a) The following prorations relating to the Purchased Assets shall be prorated between Buyer made:
(i) Except as provided in Section 2.3(a)(v) and Seller as Section 2.3(a)(vi), in the case of 11:59 p.m. local time Taxes with respect to a Straddle Period, for purposes of Retained Liabilities, the day immediately preceding portion of any such Tax that is allocable to Sellers with respect to any Purchased Asset (including, for the avoidance of doubt, with respect to any Purchased Subsidiary) shall be:
(A) in the case of Taxes that are either (1) based upon or related to income or receipts, or (2) imposed in connection with any sale or other transfer or assignment of property (real or personal, tangible or intangible), other than Transfer Taxes, equal to the amount that would be payable if the taxable period ended on the Closing Date; and
(B) in the case of Taxes imposed on a periodic basis, or otherwise measured by the level of any item, deemed to be the amount of such Taxes for the entire Straddle Period (after giving effect to amounts which may be deducted from or offset against such Taxes) (or, in the case of such Taxes determined on an arrears basis, the basis amount of such Taxes for the actual immediately preceding period), multiplied by a fraction, the numerator of which is the number of days elapsed during in the month in which period ending on the Closing occurs: general Date and special county and city real property taxes and special assessments the denominator of which is the number of days in the entire Straddle Period. In the case of any Tax based upon or measured by capital (collectivelyincluding net worth or long-term debt) or intangibles, "Taxes"any amount thereof required to be allocated under this clause (i) 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 computed by reference 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 level 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 such items on the Closing Date. All determinations necessary to effect the foregoing allocations shall be made in a manner consistent with prior practice of the applicable Seller, and Buyer shall receive all rents Seller Group member, or Seller Subsidiary.
(ii) All charges for water, wastewater treatment, sewers, electricity, fuel, gas, telephone, garbage and other income accruing, and shall pay all other expenses accrued or incurred, in connection with utilities relating to the ownership or operation of Transferred Real 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 incomeClosing Date, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Sellers being liable to the extent such rents or other income items relate to the period ending on or before Pre-Closing Tax Period, and Purchaser being liable to the Closingextent such items relate to the Post-Closing Tax Period.
(b) If any of the foregoing proration amounts cannot be determined as of the Closing Date due to final invoices not being issued as of the Closing Date, Purchasers and Sellers shall prorate such rents or items as and when the actual invoices are issued to the appropriate Party. The Party owing amounts to the other income by means of such prorations shall be paid to Seller pay the same within ten thirty (1030) days after end delivery of a written request by 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 Agreementpaying Party.
Appears in 4 contracts
Sources: Master Sale and Purchase Agreement, Master Sale and Purchase Agreement, Master Sale and Purchase Agreement
Prorations. The following Purchase Price for the Properties shall be prorated between Buyer subject to prorations and Seller credits as follows to be determined as of 11:59 p.m. local time 12:01 a.m. on the Closing Date:
1. Rents Payable Under Tenant Leases. Any portion of any rents collected subsequent to the day immediately preceding Closing Date and properly allocable to periods prior to the Closing Date, on net of Purchaser's third-party costs of collection, if any, shall be paid, promptly after receipt, to the basis Seller, but subject to all of the actual number provisions of days elapsed during this Section; and any portion thereof properly allocable to periods subsequent to the month Closing Date, if any, shall be paid to Purchaser. Any amount collected from a tenant shall first be applied to such tenant's current monthly rental and then to past due amounts in the reverse order in which they were due. Any advance rental payments or deposits paid by tenants prior to the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for applicable to the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration periods of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which time subsequent to the Closing occurs, with due allowance to be made for the maximum available discount Date and any security deposits or other exemptions amounts paid by tenants, together with any interest on both thereof to the extent permissible such interest is due to tenants, shall be credited to Purchaser on the Closing Date. No credit shall be given the Seller for accrued and unpaid rent or any other non-current sums due from tenants until said yearsums are paid.
2. Motel Room, Restaurant and Bar Revenues. Purchaser shall be entitled to all food service, bar, beverage and liquor revenues and charges and all revenues and charges from restaurant operations, Motel banquet and conference facility operations, and all other revenue of any kind attributable 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 same for the period before on and after 12:01 a.m. on 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 ClosingDate. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and Purchaser shall pay over to Seller all other expenses accrued or incurred, collections of accounts receivable in connection with the ownership Properties which have accrued as of Closing (the "Closing Accounts Receivable"). By no later than sixty (60) days after Closing, Purchaser shall pay to Seller an amount equal to the remaining Closing Accounts Receivable, minus those uncollectible Closing Accounts Receivable as agreed upon by Purchaser and Seller. Seller shall deliver to Purchaser or operation of Property before provide Purchaser a credit against the Purchase Price for the Properties in an amount equal to all guest reservation deposits held by the Motels for Motel guests arriving or staying after check-out time for the Motel on 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 . All collections of Property on or Motel receivables from any party 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 receivables due from such party which have accrued prior to Buyer Closing and then, second to the extent receivables due from such rents or other income relate to the period ending on or before the party which have accrued after 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.
Appears in 4 contracts
Sources: Purchase and Sale Agreement (Super 8 Economy Lodging Iv LTD), Purchase and Sale Agreement (Super 8 Economy Lodging Iv LTD), Purchase and Sale Agreement (Famous Host Lodging v Lp)
Prorations. The following shall be prorated between Buyer and Seller as (a) 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 each Subsequent Closing Date, the Distribution Center Closing Date and Buyer shall receive each Acquired Regional Office Closing Date (as applicable), all rents and other income accruingitems set forth on Section 2.6 of the Company Disclosure Schedules, and shall pay all other expenses accrued or incurreditems for which proration is necessary, 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, such Subsequent Closing or Distribution Center Closing (collectively, the “Prorated Charges”). Rents On a monthly basis, the Company shall calculate the applicable Prorated Charges and other incomedeliver a notice of payment due to the Buyer within fifteen (15) Business Days of the end of each month with respect to the applicable Closing, Subsequent Closings and/or Distribution Center Closing that occurred during such month. Purchaser Sub shall pay to the Company the amount set forth on such notice of payment within five (5) Business Days of receipt of such notice of payment. Whenever possible, such prorations shall be based on actual, current payments by the Company or its Affiliates and to the extent such actual amounts are not available, such prorations shall be estimated as of the Closing, such Subsequent Closing and Distribution Center Closing (as applicable) based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Purchaser Sub and the Company, and Purchaser Sub or the Company, as the case may be, promptly (but not later than ten (10) Business Days after notice of payment due) shall make any additional payment or refund so that the correct prorated amount is paid by each of Purchaser Sub and the Company.
(b) Percentage rent payable under each Acquired Lease and lease for each Acquired Regional Office, to the extent applicable, shall be prorated at the end of the current lease year for each Acquired Lease in accordance with the terms of the applicable Acquired Lease, and otherwise the percentage rent payable, if any, collected shall be paid by Buyer Purchaser Sub when due and the Company shall promptly reimburse Purchaser Sub a portion thereof determined by, in the case of an Acquired Lease with respect to an Acquired Store, multiplying (A) a fraction, the numerator of which is the amount of the Company’s or its Affiliates’ gross annual sales at such Acquired Store from the first day of such lease year to (and excluding) the Closing Date or the applicable Subsequent Closing Date (as applicable), and the denominator of which is the sum of Purchaser Sub’s and its Affiliates’ and the Company’s and its Affiliates’ gross annual sales at such Acquired Store for the entire lease year, times (B) the amount of percentage rent actually due under the Acquired Lease for such Acquired Store. The Company, upon the request of Purchaser Sub, shall promptly provide Purchaser Sub with such information as Purchaser Sub shall be required to submit to landlords under the Acquired Leases in connection with the payment of percentage rent with respect to the Acquired Stores.
(c) Purchaser Sub and the Company shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Purchaser Sub and the Company are unable to resolve such dispute within twenty (20) Business Days after the Closing date such dispute arose, Purchaser Sub and the Company shall submit the items remaining for resolution in writing, together with such written evidence as Purchaser Sub or the Company may elect to include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within twenty (20) Business Days of such submission, resolve any differences between Purchaser Sub and the Company and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the Parties. The costs, fees and expenses of the Independent Accounting Firm shall be applied first to any amounts due to Buyer borne equally by Purchaser Sub and then, the Company.
(d) Notwithstanding anything to the extent such rents or other income relate contrary in this Agreement, including this Section 2.6, all real property, personal property and similar ad valorem Taxes, if any, levied with respect to the Purchased Assets with respect to a taxable period ending beginning on or before the ClosingClosing Date and ending after the Closing Date (collectively, such rents or other income the “Apportioned Taxes”) shall be paid apportioned between the Company and Parent based on the number of days of such taxable period before and including the Closing Date (such portion of such taxable period, the “Pre-Closing Tax Period”) and the number of days of such taxable period after the Closing Date (such portion of such taxable period, the “Post-Closing Tax Period”). The Company shall be responsible for the proportionate amount of such Apportioned Taxes that is attributable to Seller the Pre-Closing Tax Period and such amount shall be an Excluded Liability, and Parent and Purchaser Sub shall be responsible for the proportionate amount of such Apportioned Taxes that is attributable to the Post-Closing Tax Period and such amount shall be an Assumed Liability. Any Apportioned Taxes shall be timely paid, and all applicable Tax Returns shall be timely filed, as provided by applicable Law. The paying Party (including through the use of any prepayment or credit or carryforward) shall be entitled to reimbursement from the non-paying Party for the non-paying Party’s portion of the Apportioned Taxes in accordance with this Section 2.6(d). Upon payment (or use of a prepayment or credit or carryforward) of any such Apportioned Taxes, the paying Party shall present a statement to the non-paying Party setting forth the amount of reimbursement to which the paying Party is entitled under this Section 2.6(d), together with such supporting evidence as is reasonably necessary to calculate the amount to be reimbursed. The non-paying Party shall make such reimbursement by wire transfer in immediately available funds within ten (10) days after end Business Days of receipt of such statement to an account designated by the paying Party. The provisions of this Section 2.6(d) shall survive the Closing Date until the expiration of the month in which statute of limitations applicable to any 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 AgreementApportioned Tax.
Appears in 4 contracts
Sources: Asset Purchase Agreement (Rite Aid Corp), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.)
Prorations. The following 12.1. Rents (exclusive of delinquent rents, but including prepaid rents); refundable security deposits (which will be assigned to and assumed by Purchaser and credited to Purchaser at Closing); water and other utility charges; fuels; prepaid operating expenses; incentive fees paid pursuant to any laundry contract; provided, however, such fee shall only be prorated if actually received by Seller and only to the extent any fee was not used to improve the laundry facilities at the Property; real and personal property taxes and other similar items shall be prorated between Buyer and Seller adjusted ratably as of 11:59 p.m. local time of the day immediately preceding on the Closing Date, and credited to the balance of the cash due at Closing. Assessments payable in installments which are due subsequent to the Closing Date shall be paid by Purchaser. If the amount of any of the items to be prorated is not then ascertainable, the adjustments thereof shall be on the basis of the actual number of days elapsed during the month most recent ascertainable data. All prorations will be final except as to delinquent rent referred to in which Paragraph 12.2 below.
12.2. All basic rent paid following the Closing occurs: general Date by any tenant of the Property who is indebted under a lease for basic rent for any period prior to and special county and city real property taxes and special assessments (collectively, "Taxes") for including the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Closing Date shall be based on the most recent official tax bills or notice deemed a "Post-Closing Receipt" until such time as all such indebtedness is paid in full. Within ten (10) days following each receipt by Purchaser of valuation available for the fiscal year in which the a Post-Closing occursReceipt, 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 Purchaser shall pay such Post-Closing Receipt to Seller. Purchaser shall use its best efforts to collect all other expenses accrued or incurredamounts which, in connection with the ownership or operation of Property before the upon collection, would constitute Post-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 Receipts hereunder. Within 120 days after the Closing Date, all Purchaser shall deliver to Seller a reconciliation statement of which rents, other income and expenses shall be prorated as of Post-Closing Receipts through the Closing. Rents and other income, if any, collected by Buyer first 90 days after the Closing Date. Upon the delivery of the Post-Closing Receipts reconciliation, Purchaser 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 deliver to Seller within ten (10) days after end any Post-Closing Receipts owing to Seller and not previously delivered to Seller in accordance with the terms hereof. Seller retains the right to conduct an audit, at reasonable times and upon reasonable notice, of Purchaser's books and records to verify the accuracy of the month in which such amounts were collected. Buyer Post-Closing Receipts reconciliation statement and upon the verification of additional funds owing to Seller, Purchaser shall incur no obligation pay to Seller for Buyersaid additional Post-Closing Receipts and the cost of performing Seller's failure to collect such rentals or other incomeaudit. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases Paragraph 12.2 of this Agreement shall be delivered by certified funds to Buyer at survive the Closing or, at Seller's option, credited to Buyer against and the cash portion delivery and recording 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 Agreementdeed.
Appears in 4 contracts
Sources: Agreement of Sale (Apple Residential Income Trust Inc), Agreement of Sale (Apple Residential Income Trust Inc), Sale Agreement (Balcor Realty Investors 83)
Prorations. The following items shall be prorated between Buyer the Seller and Seller the Purchaser as of 11:59 p.m. local time of the day immediately preceding the Closing Date; such prorations favoring the Purchaser - 14 - shall reduce the Purchase Price payable by the Purchaser at the Closing, and such prorations favoring the Seller shall increase the Purchase Price payable by the Purchaser at Closing:
9.4.1. Rents. Rents, additional rents, charges for taxes and insurance premiums or for escalations thereof, if any, property operating expense contributions, revenues from vending machines and washers and dryers, swimming pool fees and other income of the Property (other than any unapplied security and other deposits) collected by the Seller from each tenant under a Lease. Any rent and other income collected by either the Seller or the Purchaser during the month of the Closing shall be applied first against the rent and other income due for such month under the respective Lease. The Seller may, at the Seller's sole cost and expense, pursue any claims under any of the Leases and file lawsuits for past due rent or other charges, but the Seller may not exercise any rights or remedies to terminate any Lease or to dispossess any tenant thereunder. The Purchaser agrees, however, that if (i) any tenant is in arrears on the basis Closing Date in the payment of rent or other charges under its Lease as shown on the updated Rent Roll delivered at the Closing and (ii) at the time of the actual number Purchaser's receipt of days elapsed during any rental or other payment from such tenant after the end of the month in which the Closing occurs: general , such tenant is, or after application of a portion of such payment will be, current under its Lease in the payment of all accrued rental and special county other charges that do not become due and city real property taxes and special assessments (collectively, "Taxes") for payable until 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 month after the Closing occurs, with due allowance to be made for Date or thereafter and in the maximum available discount or payment of any other exemptions obligations of such tenant to the extent permissible for said yearPurchaser, then the Purchaser shall refund to the Seller, out of and to the extent of 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 such payment remaining after the Closing, then Buyer Purchaser deducts therefrom any and Seller shall adjust the actual Taxes between Buyer all sums due and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition owing to the foregoing apportionments, Seller shall receive all rents it from such tenant from 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 an amount up to the full amount of which rents, other income and expenses shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after any arrearage existing on 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 AgreementDate.
Appears in 4 contracts
Sources: Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership), Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership), Purchase and Sale Agreement (Brown Flournoy Equity Income Fund LTD Partnership)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding (a) On the Closing DateDate all rent, common area charges, utility charges, real estate taxes, sales taxes on rent and other obligations under the basis of the actual number of days elapsed during the month in which Leases transferred at 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 ClosingEffective Time (collectively, the “Prorated Charges”). Rents Whenever possible, such prorations shall be based on actual, current payments by the Sellers or their Affiliates and other incometo the extent such actual amounts are not available, such prorations shall be estimated as of the Effective Time based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Buyer and the Sellers, and Buyer or the Sellers, as the case may be, promptly (but not later than 10 Business Days after notice of payment due and delivery of reasonable supporting documentation with respect to such amounts) shall make any additional payment or refund so that the correct prorated amount is paid by each of Buyer and the Sellers.
(b) Percentage rent payable under each Lease shall be prorated at the end of the current lease year for each Lease, and the percentage rent payable, 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 by Buyer when due and the Sellers shall promptly reimburse Buyer a portion thereof determined by multiplying (10A) days after end a fraction, the numerator of which is the amount of the month in Sellers’ or their Affiliates’ gross annual sales at such Store from the first day of such lease year to (and excluding) the Closing Date, and the denominator of which is the sum of Buyer’s and its Affiliates’ and the Sellers’ and their Affiliates’ gross annual sales at such amounts were collectedStore for the entire lease year, times (B) the amount of percentage rent actually due under the Lease for such Store. The Sellers, upon the request of Buyer, shall promptly provide Buyer with such information as Buyer shall incur no obligation be required to Seller submit to landlords under the Leases in connection with the payment of percentage rent with respect to the Stores.
(c) Buyer and the Sellers shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Buyer and the Sellers are unable to resolve such dispute within 20 Business Days after the date such dispute arose, Buyer and the Sellers shall submit the items remaining for Buyer's failure resolution in writing, together with such written evidence as Buyer or the Sellers may elect to collect include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within 20 Business Days of such rentals or other incomesubmission, resolve any differences between Buyer and the Sellers and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the parties. All security The costs, fees and any other refundable deposits paid by tenants to Seller pursuant to tenant leases expenses of the Independent Accounting Firm shall be delivered borne equally by certified funds to Buyer at and New Diamond. For purposes of this Agreement the Closing or, at Seller's option, credited to “Independent Accounting Firm” means a nationally recognized accounting firm agreed upon by Buyer against and 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 AgreementSellers.
Appears in 4 contracts
Sources: Asset Purchase Agreement, Asset Purchase Agreement (CVS Corp), Asset Purchase Agreement (Albertsons Inc /De/)
Prorations. The following All items of income and expense arising from the operation of the Stations with respect to the Purchased Assets and the Assumed Contracts on or before the close of business on the Closing Date shall be prorated for the account of the Seller and thereafter shall be for the account of the Purchaser. Proration of the items described below between Buyer the Seller and Seller the Purchaser shall be effective as of 11:59 p.m. p.m., local time time, on such date and shall occur as follows with respect to those rights, liabilities and obligations of the day immediately preceding Seller transferred to and assumed by the Purchaser hereunder.
(a) Liability for state and local taxes assessed on the Purchased Assets payable with respect to the tax year in which the Closing Date, Date falls and the annual FCC regulatory fee for the Stations payable with respect to the year in which the Closing Date falls shall each be prorated as between the Seller and the Purchaser on the basis of the actual number of days of the tax year elapsed during to and including such date.
(b) Prepaid items, deposits, credits and accruals such as water, electricity, telephone, other utility and service charges, lease expenses, license fees (if any) and payments under any contracts or utility services to be assumed by the month in Purchaser shall be prorated between the Seller and the Purchaser on the basis of the period of time to which such liabilities, prepaid items and accruals apply. All prorations shall be made and paid insofar as feasible on 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 Date; any prorations not made on such date 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 practicable (not to exceed 90 days) thereafter. The Seller and the Closing. In addition Purchaser agree to the foregoing apportionmentsassume, Seller shall receive pay and perform all rents and other income accruedcosts, 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 liabilities and expenses shall be prorated as allocated to each 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 them pursuant to this AgreementSection 15.2.
Appears in 3 contracts
Sources: Asset Purchase Agreement (Hispanic Broadcasting Corp), Asset Purchase Agreement (Big City Radio Inc), Asset Purchase Agreement (Big City Radio Inc)
Prorations. The following (a) Subject to the terms and provisions of the Purchase Agreement, utility charges for the billing period in which the Closing Date occurs, real and personal property taxes attributable to the Facility, and any other items of revenue or expense attributable to the Facility (the “Prorated Items”) shall be prorated between Buyer Transferor and Seller New Operator as of 11:59 p.m. local time of the day immediately preceding the Closing Date, such that all items of income and expense accruing on the Closing Date shall be for the account of New Operator. In general, such prorations shall be made so as to reimburse Transferor for prepaid expense to the extent such expense is attributable to periods from and after the Closing Date and to charge Transferor for expenses accrued but unpaid as of the Closing Date. The intent of this provision shall be implemented by New Operator remitting to Transferor any invoices for Prorated Items that reflect a service date before the Closing Date and by New Operator assuming responsibility for the payment of any invoices for Prorated Items that reflect a service date after the Closing Date with any overage or shortage in payments by either party to be adjusted and paid as provided in Sections 1.8(b) and (c). Transferor agrees to assist in the orderly transfer of utilities, phone systems, alarm systems, and any other specialized equipment requiring dedicated lines and to provide to New Operator contact information for all requested services.
(b) All such prorations shall be made on the basis of the actual number of days elapsed during in the month in which the Closing occurs: general relevant accounting, billing or revenue period 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 information available to Transferor. Utility charges which are not metered and read as of valuation available for the fiscal year in which the Closing occurs, with due allowance to Date shall 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 accruedestimated based on prior charges, and shall pay be re-prorated upon receipt of statements therefor.
(c) To the extent possible and based on reasonable estimates, the parties shall make all other expenses accrued or incurred, in connection with the ownership or operation of Property before prorations on the Closing Date, and Buyer . All amounts owing from one party hereto to the other party hereto that require adjustment after the Closing Date shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurredbe settled within thirty (30) days after the Closing Date or, in connection with the ownership or operation of Property on or event the information necessary for such adjustment is not available within said thirty (30) day period, then as soon thereafter as practicable; provided, however, that all such adjustments shall be made within one (1) year after the Closing Date.
(d) Within thirty (30) days after the Closing Date, all of which rents, other income and expenses New Operator shall be prorated as of transfer to Transferor an amount equal to any ▇▇▇▇▇ cash remaining at the Closing. Rents and other income, if any, collected by Buyer after Facility on 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 AgreementDate.
Appears in 3 contracts
Sources: Operations Transfer Agreement (Adcare Health Systems Inc), Operations Transfer Agreement (Adcare Health Systems Inc), Operations Transfer Agreement (Adcare Health Systems Inc)
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:
(a) All taxes, on assessments and 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 on an accrual basis in accordance with generally accepted accounting principles with Seller responsible for all taxes, assessments and expenses and entitled to all income for the period prior to the Closing Date and the Buyer responsible for all taxes, assessments and expenses and entitled to all income for the period as of and subsequent to Closing Date. Notwithstanding the foregoing, Seller will satisfy any special assessments as of Closing.
(b) Buyer will receive a credit for the prorated amount of all rent (including Operating Expense as defined below) due prior to the Closing Date. Rents and other incomeNo prorations shall be made at Closing in relation to delinquent rents existing, if any, collected as of the Closing Date, nor for required tenant expense reimbursements which are not due as of the Closing Date; instead such items shall be prorated if and when received by Buyer, with (i) Buyer agreeing to use its good faith efforts to collect all amounts due and promptly forward Seller’s portion to Seller upon any such collection, (ii) Seller agreeing to cooperate with Buyer’s reasonable requests for information regarding prior lease histories and expense information, and (iii) both parties agreeing to provide reasonable information to the other as to the efforts of the reporting party. With regard to delinquent rentals and expense reimbursements, Seller shall not have the right to communicate with said tenants for collection of rent or other matters relating to the leases from and after the Closing. Buyer shall make a good faith attempt to collect such delinquent rentals and expense reimbursements after the Closing (although Buyer shall not be required to institute any eviction nor any suit or collection procedures for delinquencies), but all rents and expense reimbursements shall be applied first to any amounts due reasonable out-of-pocket expenses which Buyer may have incurred in collecting the delinquent rents and/or expense reimbursements and then to the rents and expense reimbursements owing to Buyer and then, before being applied to the extent such rents or other income relate any delinquencies which were owed to the period ending on or before Seller at Closing. If Buyer collects any delinquent rentals and/or expense reimbursements after the Closing, such rents or other income amounts owed to Seller based on the immediately preceding sentence shall be paid remitted to Seller within ten fifteen (1015) days after end from receipt by Buyer.
(c) Seller shall prepare a reconciliation as of the month in Closing Date of the amounts of all ▇▇▇▇▇▇▇▇ and charges for common area operating expenses or similar charges and tax escalations owed under the leases (collectively, “Operating Expenses”), which reconciliation shall include accurate information reasonably detailing such billing and charges. If more amounts were collected. have been expended for Operating Expenses than have been collected from tenants for Operating Expenses, Buyer shall incur no obligation pay such difference to Seller at Closing as an addition to the Purchase Price. If more amounts have been collected from tenants for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Operating Expenses than have been expended for Operating Expenses, Seller pursuant to tenant leases shall be delivered by certified funds will pay to Buyer at the Closing orClosing, at Seller's option, credited to Buyer as a credit against the cash portion Purchase Price, such excess collected amount. Buyer and Seller agree that such proration of the Purchase Price Operating Expenses at the ClosingClosing will fully relieve Seller from any responsibility to tenants and Buyer for such matters. Escrow Holder shall not In this regard, Buyer will be concerned with any prorations that are to be made solely responsible, from and after the Closing pursuant Date, for (i) collecting from tenants the amount of any outstanding Operating Expenses for periods before and after the Closing and (ii) where appropriate, reimbursing tenants for amounts attributable to Operating Expenses, as may be necessary based on annual reconciliations for Operating Expenses.
(d) If any errors or omissions are made at the Closing regarding prorations, the parties shall make the appropriate corrections promptly after the discovery thereof. The provisions of this AgreementSection 5.5 shall survive the Closing.
Appears in 3 contracts
Sources: Purchase and Sale Agreement, Purchase and Sale Agreement (Universal Health Realty Income Trust), Purchase and Sale Agreement (Universal Health Realty Income Trust)
Prorations. The following matters and items shall be apportioned between the parties hereto or, where applicable, credited in total to a particular party hereto, as of the Closing:
(a) Taxes, including, without limitation, real estate taxes and assessments, personal property, business, prepaid gaming and occupation taxes, if any (based on the most current available information), and water and sewer charges shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, or charged on the basis of applicable governmental records, and shall be readjusted when the actual number of days elapsed during the month in which the Closing occurs: general and special county and city real property bills are available pursuant to Section 13.10. Such 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 assessed for the fiscal year in shall be prorated as of the date on which the Closing occurs▇▇▇▇▇▇▇▇ are received with respect thereto, with due allowance to be made Seller being responsible for the maximum available discount or other exemptions taxes accrued with respect 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 periods before the Closing Date, and Buyer shall receive being responsible for all rents subsequent periods.
(b) Telephone 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 utility services shall be prorated as of the ClosingClosing Date. Rents and other incomeAll deposits, if any, collected made by Seller as security under any public service contract shall be credited to Seller if the same remain on deposit for the benefit of Buyer. Where possible, cut-off meter readings shall be secured for all utilities as of the Closing Date.
(c) Any amount prepaid or payable under any lease or option agreement shall be prorated at the Closing and any accrued rental and any percentage rental under space leases shall be prorated as and when collected. All security deposits held by Seller, including customer deposits held in the casino cage, shall be transferred to Buyer, and all obligations with respect to such security deposits shall be assumed by Buyer on the Closing Date.
(d) Fees paid or payable for transferable licenses and permits shall be prorated as of the Closing Date.
(e) With respect to the Business Assets and business operations then sold and conveyed to Buyer, Seller’s insurance shall be canceled on the Closing Date, and Seller shall retain all prepaid premiums and be responsible for any additional premiums due on or after the Closing shall be applied first Date due to any amounts due insurance audit or retrospective rating adjustments that were incurred prior to Buyer Closing and then, any payment of claims within the applicable deductibles required 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 collectedthereunder. Buyer shall incur no obligation arrange for immediate effectiveness of Buyer’s own insurance coverage as of the Closing Date.
(f) On the Closing Date, such other items shall be prorated as are provided for in this Agreement or as are normally prorated and adjusted in the sale of a casino business, including, without limitation, all deposits and prepaid items that inure to Seller for Buyer's failure to collect such rentals or other income. All security the benefit of Buyer (including, but not limited to, prepaid insurance) and the interest on the Assumed Obligations and on any other refundable deposits paid obligations being assumed by tenants to Seller pursuant to tenant leases Buyer hereunder as of the Closing Date. In making apportionments, all prepaid rents and similar items shall be delivered by certified funds prorated on the basis of the number of days of occupancy before and after the time set for such adjustments to Buyer at be made, and all prepaid taxes, charges and impositions shall be prorated on the Closing basis of the number of days of the applicable tax year, or on the basis of unit costs or, at Seller's optionif this is not practicable, credited to Buyer against on the cash portion basis of the Purchase Price at the Closing. Escrow Holder shall not be concerned with any prorations number of days before and after that are to be made after the Closing pursuant to this Agreementtime.
Appears in 3 contracts
Sources: Asset Purchase and Sale Agreement (Herbst Gaming Inc), Asset Purchase and Sale Agreement (Herbst Gaming Inc), Asset Purchase and Sale Agreement (Herbst Gaming Inc)
Prorations. The following (a) Rents, assessments and real and personal property taxes, operating income and expenses (including without limitation, utilities) and, to the extent provided in Section 16(c)(iii) license fees, associated with the operation of the Assets, and current installments of any LID assessments which are included in the Permitted Exceptions shall be prorated between Buyer and Seller as of 11:59 p.m. local time the Closing Date based upon actual days involved. Real and personal property taxes and operating expenses shall be prorated on the basis of the day immediately preceding best information available as of Closing. If after Closing real or personal property taxes or other operating expenses or income are determined to be different from those apportioned at Closing, then the parties shall, within thirty (30) days of such determination, promptly adjust the prorated amount to actual by payment from the party who paid too little or received too much of a credit at Closing. If the Real Property is revalued as a result of the sale transaction, there shall be no additional proration of real and personal taxes as a result of the sale transaction;
(b) all expenses, other than the payroll and employee benefits covered in Section 19 of this Agreement, related to the ownership or operation of the Assets (including but not limited to the obligations under the Contracts assumed by Buyer), shall be prorated as of the Closing Date with Seller responsible therefor for the period prior to the Closing Date and with Buyer responsible therefor for the period from and after the Closing Date;
(c) if applicable, Buyer shall pay any filing fees and other costs associated with Seller’s or Buyer’s compliance with the Antitrust Improvements Act of 1976 (the “HSR Act”) as the same relates to the transaction provided for herein or in the Related Agreements; and
(d) All prorations shall be made on the basis of the actual number of days of the year and month which have elapsed during the month in which as of the Closing occurs: general Date. The amount of proration shall be adjusted in cash after the Closing, as and special county when complete and city real property taxes accurate information becomes available. Seller and special assessments Buyer shall cooperate in making post-Closing adjustments to prorations other than those described in Section 16(b) above, within thirty (collectively30) days following Closing and, "Taxes"if and to the extent possible, it shall make adjustments with respect to the prorations described in Section 16(b) within ninety (90) days following Closing; and
(e) Buyer and Seller agree that the following shall not be subject to proration at Closing:
(i) no provision is made for the tax period then proration of water charges, sewer, electricity, fuel charges, utility charges, refuse, solid waste disposal charges, telephone, gas or other utility charges as Seller shall terminate its account with the providers of all such services as of the Closing Date and Buyer shall, prior to the Closing Date, make application to the providers of such services for the continuation of such services in effect the name of Buyer. It is anticipated that in connection with all such services the meters will be read on or about the Closing Date and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes the Seller shall be based responsible for paying the bills for such services accruing on and prior to the most recent official tax bills or notice of valuation available Closing Date and Buyer shall be responsible for the fiscal payment of all such charges accruing after the Closing Date;
(ii) no provision has been made for the proration of premiums for any insurance policies relating to the Property whether for liability, fire, theft, damage or other casualty, and Seller shall terminate such policies as of the date of Closing. Buyer shall be responsible for obtaining as of the date of Closing all insurance necessary to insure Buyer for liability, theft, fire, and casualty; and
(iii) no provision has been made for the proration of any license fees paid by Seller for the year in which the Closing occurs, with due allowance to be made for occurs unless Buyer obtains 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 benefit of any portion such license fees as part 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 incurredits licensure application process, in connection with which case 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 same shall be prorated as of at closing based on the Closing. Rents and other income, if any, collected benefit derived by Buyer after each party from 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 fees so 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.
Appears in 3 contracts
Sources: Purchase and Sale Agreement (Emeritus Corp\wa\), Purchase and Sale Agreement (Emeritus Corp\wa\), Purchase and Sale Agreement (Emeritus Corp\wa\)
Prorations. The following shall be prorated between Buyer Except as otherwise set forth in this Agreement, all taxes and Seller as of 11:59 p.m. local time other operating expenses and revenue 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 ClosingClosing Date. Rents and other income, if any, collected by Buyer after Taxes shall be prorated based upon the current year's tax taking into account the maximum available discount. If the Closing takes place and the current year's taxes are not fixed and the current year's assessment is available, taxes shall be applied first prorated based upon such assessment and the prior year's millage. If the current year's assessment is not available, then taxes shall be prorated on the prior year's tax taking into account the maximum available discount. In the event the tax proration is incorrect on the Closing Date because the property is reassessed for the tax year of the Closing by the governmental agency having jurisdiction over the Property, subsequent to any amounts due to Buyer and thenthe Closing Date, BUYER or SELLER shall be entitled, as the case may be, to the extent a reproration of such rents or other income relate taxes upon written request made to the period ending on other party. SELLER or before BUYER shall remit the Closing, such rents or other income shall be paid to Seller reproration adjustment amount requested within ten (10) days after end of request therefor. In the event SELLER or BUYER fails to remit the reproration amount requested within said ten (10) day period, the party seeking reimbursement shall be entitled to all costs of collection, including all attorneys' fees and costs incurred in collection thereof and the amount owing shall bear interest at the highest lawful rate until paid, it being acknowledged that this right shall survive Closing and delivery of the month Special Warranty Deed. Any rents received by SELLER in which such amounts were collectedrespect of the period after the Closing Date shall be promptly remitted to BUYER. Buyer With regard to delinquent rents, if any, BUYER shall incur no obligation not be held responsible for and BUYER shall not be required to Seller for Buyer's failure institute any proceedings whatsoever to collect such rentals or other incomedelinquent rents. However, all rents received by BUYER attributable to periods prior to the Closing Date shall be promptly remitted by BUYER to SELLER. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases rents collected after the Closing shall be delivered by certified funds first applied to Buyer at current rents due, then to rents for periods prior to the Closing or, at Seller's option, credited Date unless they are clearly intended by the tenant to Buyer against apply for the cash portion period prior to Closing in which event they shall be promptly remitted to SELLER. This obligation to remit shall survive the Closing and delivery of the Purchase Price Special Warranty Deed. SELLER shall deliver to BUYER at the Closing. Escrow Holder , copies of such statements, invoices bills and receipts as shall not be concerned with requested by BUYER to enable BUYER to verify the accuracy of the amounts of any prorations that are made pursuant to this paragraph. BUYER shall be credited at Closing with all advance rentals and tenant security deposits previously paid to SELLER. All prorations shall be made so that SELLER has the benefit of all income and the burden of all expenses up to and including the Closing Date and BUYER has the benefit of all income and the burden of all expenses after the Closing pursuant to this AgreementDate.
Appears in 3 contracts
Sources: Agreement of Sale (Asset Investors Corp), Agreement of Sale (Commercial Assets Inc), Agreement of Sale (Commercial Assets Inc)
Prorations. 5.4.1 The following shall be prorated between Buyer Seller and Seller Purchaser as of 11:59 p.m. local time of the day immediately preceding 12:01 a.m. on the Closing Date, Date (on the basis of the actual number of days elapsed during over the applicable period):
(a) All real estate taxes, water charges, sewer rents, vault charges and assessments on the Property on the basis of the fiscal year for which assessed. In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of the Property or from any improvements made or leases entered into on or after the Closing Date. If any assessments on the Property are payable in installments, then the installment for the current period shall be prorated (with Purchaser assuming the obligation to pay any installments due after the Closing Date).
(b) Subject to this Section 5.4.1(b), all fixed rent and regularly scheduled items of additional rent under the Leases, and other tenant charges if, as and when received. Rent for the month of Closing actually collected by Seller shall be prorated between Purchaser and Seller with Purchaser receiving rent for the day of Closing. Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all cash security or other deposits (to the extent the foregoing were made by tenants under the Leases and are not applied or forfeited prior to the Closing Date) to Purchaser on the Closing Date. Seller shall deliver to Purchaser at Closing any tenant security deposits which are held in the form of letters of credit. Rents which are “delinquent” (i.e., due but not paid) as of the Closing Date (the “Delinquent Rent”) shall not be prorated on the Closing Date. Purchaser shall deliver or provide a credit in an amount equal to seventy-five percent (75%) of the Delinquent Rent to Seller on the Closing Date, and all rights to receive such Delinquent Rent shall be assigned to Purchaser.
(c) If any tenant of the Property is obligated to pay percentage rent based upon the calendar year or lease year in which the Closing Date occurs (the “Percentage Rent Year”), Purchaser shall, within thirty (30) days after receipt of such payment with respect to the Percentage Rent Year, remit to Seller that portion which is equal to the number of days which elapsed between the commencement date of the Percentage Rent Year for each such tenant, and the Closing Date, and the total number of days in such Percentage Rent Year. If Seller has received payments of percentage rent based on any Percentage Rent Year in which the date of Closing occurs: general , in excess of Seller’s share as calculated as set forth above in this Section 5.4.1(c), it shall promptly pay such excess to Purchaser. If any tenant of the Property is obligated to reimburse Seller for additional rental type items which are billed to the tenants on an estimated basis, then Seller shall prepare a reconciliation of such amounts prior to the Closing Date and special county shall provide Purchaser with a credit for any amounts allocable to periods following the Closing Date.
(d) All operating expenses customarily apportioned between sellers and city purchasers of real estate properties similar to the Property and located in the same geographic area as the Property.
(e) Charges and payments under the Assigned Contracts assigned to Purchaser pursuant to the Assignment and Assumption of Contracts.
(f) Any prepaid items, including, without limitation, fees for licenses which are transferred to Purchaser at the Closing and annual permit and inspection fees.
(g) Utilities, including, without limitation, telephone, steam, electricity and gas, on the basis of the most recently issued bills therefor, subject to adjustment after the Closing when the next bills are available, or if current meter readings are available, on the basis of such readings, it being the intent of the parties that Seller shall use commercially reasonable efforts to cause meter readings to be completed such that all utility bills will be paid by Seller relating to periods up to the Closing Date by Seller as of the Closing Date.
(h) Deposits with telephone and other utility companies, and any other persons or entities who supply goods or services in connection with the Property if the same are assigned to Purchaser at the Closing, which shall be credited in their entirety to Seller.
(i) Personal property taxes, if any, on the basis of the fiscal year for which assessed.
(j) Permitted administrative charges, if any, on those tenants’ security deposits transferred by Seller pursuant to the Assignment and Assumption of Leases.
(k) Taxes payable by Seller relating to operations of the Property, including, without limitation, business and occupancy taxes and special assessments sales taxes, if any.
(collectivelyl) Such other items as are customarily apportioned between sellers and purchasers of real properties of a type similar to the Property and located in the same geographic area as the Property subject to Section 7.2.3(a) hereof.
(m) If Purchaser shall be assuming the Existing Financing, "Taxes"interest payable on the Existing Financing.
(a) If any of the items described in Section 5.4.1 hereof cannot be apportioned at the Closing because of the unavailability of information as to the amounts which are to be apportioned or otherwise, or are incorrectly apportioned at Closing or subsequent thereto, such items shall be apportioned or reapportioned, as the case may be, as soon as practicable after the Closing Date or the date such error is discovered, as applicable; provided that (i) with the exception of any item required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request apportionment or reapportionment of any such item at any time following the one hundred eightieth (180th ) day after the Closing Date and (ii) with respect to the items required to be apportioned pursuant to Section 5.4.1(a), (b) or (g), neither party shall have the right to request apportionment or reapportionment of any such item at any time following the one (1) year anniversary of the Closing Date. If the Closing shall occur before a real estate or personal property tax rate or assessment is fixed 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 the apportionment of taxes at the Closing shall be made upon the basis of the tax rate or assessment for the maximum available discount or other exemptions preceding fiscal year applied to the extent permissible latest assessed valuation. Promptly after the new tax rate or assessment is fixed, the apportionment of taxes or assessments shall be recomputed and any discrepancy resulting from such recomputation and any errors or omissions in computing apportionments at Closing shall be promptly corrected and the proper party reimbursed, which obligations shall survive the Closing.
(b) If Purchaser shall be assuming the Existing Financing, Purchaser shall be given a credit at the Closing for said year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion then current principal balance of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer Existing Financing and Seller shall adjust be given a credit for the actual Taxes between Buyer amount of all security, escrows 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, deposits held 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, Existing Financing (to the extent not replaced by Purchaser or released by Existing Lender). Seller agrees to provide Purchaser with a list of all such rents or other income relate to security, escrows and deposits currently held by Existing Lender, together with the period ending on or before the Closingapproximate current balances thereof, such rents or other income shall be paid to Seller within ten five (105) days after end following the date 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.
5.4.3 The provisions of this Section 5.4 shall survive the Closing.
Appears in 3 contracts
Sources: Contract of Sale (Strategic Storage Trust, Inc.), Contract of Sale (Strategic Storage Trust, Inc.), Contract of Sale (Strategic Storage Trust, Inc.)
Prorations. (a) All items that affect the Business or the Purchased Assets and that relate, in whole or in part, to periods on or prior to the effective time of the Closing, will be apportioned as of the Closing Date (the “Proration Items”), and representatives of Seller and Buyer will, if practicable, examine all relevant books and records as of the Closing Date in order to make the determination of such apportionments. The following shall net amount of all Proration Items will be prorated between settled and paid on the Closing Date to the extent practicable, or as soon thereafter as is reasonably possible. In the event that the amount of any of the Proration Items is not known by Seller and Buyer at the Closing, the proration will be made based upon the amount of the most recent cost of such Proration Item to Seller. After Closing, Buyer and Seller as each will provide to the other prompt written notice of 11:59 p.m. local time of each invoice relating to any Proration Item so estimated. Within ten days thereafter, Buyer and Seller will make any payment to the day immediately preceding other that is necessary to compensate for any difference between the proration made at the Closing Date, on and 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 correct proration 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 invoice. 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 will each fully cooperate to any amounts due to Buyer and thenavoid, to the extent such rents legally possible, the payment of duplicate personal property taxes, and each will furnish, at the request of the other, proof of payment of any personal property taxes or other income relate documentation that is a prerequisite to avoiding payment of a duplicate tax.
(b) If either Buyer or Seller (a “Payor”) pays a Proration Item for which the other (a “Payee”) is obligated in whole or in part under this Section 7.6, the Payor will present to the period ending on Payee evidence of payment and a statement setting forth the Payee’s proportionate share of such Proration Item, and the Payee will promptly pay its share to the Payor. In the event either Buyer or before Seller (as applicable, a “Recipient”) receives payments, or the Closingbenefit of payments, such rents of a Proration Item to which the other (a “Beneficiary”) is entitled in whole 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 part under this Agreement, the Recipient will promptly pay such amount to the Beneficiary.
Appears in 3 contracts
Sources: Asset Purchase Agreement (Amish Naturals, Inc.), Asset Purchase Agreement (Amish Naturals, Inc.), Asset Purchase Agreement (Amish Naturals, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as (a) As of 11:59 p.m. local time of the day immediately preceding the Closing Date, each Subsequent Closing Date and the Distribution Center Closing Date (as applicable) all items set forth on the basis Section 2.11 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 Disclosure Schedules shall be prorated as of the Closing, such Subsequent Closing or Distribution Center Closing (collectively, the “Prorated Charges”). Rents Whenever possible, such prorations shall be based on actual, current payments by Seller or its Affiliates and other incometo the extent such actual amounts are not available, such prorations shall be estimated as of the Closing, such Subsequent Closing and Distribution Center Closing (as applicable) based on actual amounts for the most recent comparable billing period. When the actual amounts become known, such prorations shall be recalculated by Buyer and Parent, and Buyer or Parent, as the case may be, promptly (but not later than ten (10) Business Days after notice of payment due) shall make any additional payment or refund so that the correct prorated amount is paid by each of Buyer and Parent.
(b) Percentage rent payable under each Acquired Lease shall be prorated at the end of the current lease year for each Acquired Lease in accordance with the terms of the applicable Acquired Lease, and otherwise the percentage rent payable, 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 by Buyer when due and Seller shall promptly reimburse Buyer a portion thereof determined by multiplying (A) a fraction, the numerator of which is the amount of Seller’s or its Affiliates’ gross annual sales at such Acquired Store from the first day of such lease year to Seller (and excluding) the Closing Date or the applicable Subsequent Closing Date (as applicable), and the denominator of which is the sum of Buyer’s and its Affiliates’ and Seller’s and its Affiliates’ gross annual sales at such Acquired Store for the entire lease year, times (B) the amount of percentage rent actually due under the Acquired Lease for such Acquired Store. Seller, upon the request of Buyer, shall promptly provide Buyer with such information as Buyer shall be required to submit to landlords under the Acquired Leases in connection with the payment of percentage rent with respect to the Acquired Stores.
(c) Buyer and Parent shall cooperate in good faith to resolve any dispute with respect to prorations. In the event Buyer and Parent are unable to resolve such dispute within ten twenty (1020) days Business Days after end the date such dispute arose, Buyer and Parent shall submit the items remaining for resolution in writing, together with such written evidence as Buyer or Parent may elect to include, to an Independent Accounting Firm. The Independent Accounting Firm shall, within twenty (20) Business Days of such submission, resolve any differences between Buyer and Parent and such resolution shall, in the absence of manifest error, be final, binding and conclusive upon each of the month in which such amounts were collectedparties. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security The costs, fees and any other refundable deposits paid by tenants to Seller pursuant to tenant leases expenses of the Independent Accounting Firm shall be delivered borne equally 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 Agreementand Parent.
Appears in 3 contracts
Sources: Asset Purchase Agreement (Rite Aid Corp), Asset Purchase Agreement (Freds Inc), Asset Purchase Agreement (Walgreens Boots Alliance, Inc.)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current tax year to the Closing Date. If Closing occurs before that year's tax bills are available, 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 proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions to amount of any deficiency in the extent permissible for said year, proration. Buyer shall pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a 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 term 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 offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by Seller at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to Seller for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Sellers at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Sources: Contract of Sale/Contribution (Education Realty Trust, Inc.), Contract of Sale/Contribution (Education Realty Trust, Inc.)
Prorations. The following shall be prorated between Buyer Rents and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Dateany other amounts payable by Tenant, 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 (collectivelyand, "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 yearnot otherwise paid directly by the Tenant under the Tenant Lease, personal property taxes, installment payments of special assessment liens, vault charges, sewer charges, utility charges and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (normally prorated operating expenses actually collected, billed or any portion paid as of the Property) and allocable either to the period before the date of 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 date of Closing and be adjusted against the Purchase Price due at the Closing, provided that within sixty (60) days after the Closing, Purchaser and Seller will make a further adjustment for such rents, taxes or charges which may have accrued or been incurred prior to the date of Closing, but not collected or paid at that date. Rents All prorations shall be based upon the actual number of days of ownership of the Property. Seller shall be responsible for all leasing commissions and other income, if any, collected by Buyer leasing costs due and payable prior to the Closing Date with respect to the Tenant Lease. Purchaser shall be responsible for all leasing commissions and other leasing costs attributable to any new leases executed on or after the Closing shall be applied first to Date or the renewal, extension or expansion of any amounts due to Buyer and then, existing lease after the Closing Date 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 Purchaser enters into any leasing agreement in which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals leasing commissions and other leasing costs are payable in connection with the renewal, extension or other income. All security and expansion of 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 existing lease after the Closing pursuant Date. Seller represents and warrants that there are no leasing commissions or other leasing costs due and payable now or in the future under any agreement to which Seller or any of its affiliates is a party with respect to the Tenant Lease. The terms and provisions of this Agreementsection shall survive Closing hereunder.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Cole Corporate Income Trust, Inc.), Purchase and Sale Agreement (Cole Corporate Income Trust, Inc.)
Prorations. The following (a) Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the business and operation of the Purchased Assets 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 Seller liable to the extent permissible for said year, and such items relate 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 time period prior 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 liable to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) Personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the business and operation of the Purchased Assets;
(ii) Rent, Taxes and all other items (including prepaid services or goods not included in Inventory) payable by or to Seller under any of Seller's Agreements assigned to Buyer pursuant to Section 2.1(d) hereof; 176
(iii) Any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) Sewer rents and charges for water, telephone, electricity and other income accruing, utilities;
(v) Rent and shall pay all Taxes and other expenses accrued or incurred, in items payable by Seller under the Real Property Agreements assigned to Buyer; and
(vi) Dues and fees payable to industry organizations under Seller's Agreements assumed by Buyer pursuant to Section 2.1(d) hereof.
(b) In connection with the ownership prorations referred to in (a) above, in the event that actual figures are not available at the Closing Date, the proration shall be based upon the actual Taxes or operation other amounts accrued through the Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of Property the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Closing Date and (ii) including and after the Closing Date, all of which rents, . Seller and Buyer agree to furnish each other income and expenses shall be prorated as of the Closing. Rents with such documents and other income, if any, collected by Buyer after the Closing shall records as may be applied first reasonably requested in order to any amounts due to Buyer confirm all adjustment 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 proration calculations made after the Closing pursuant to this AgreementSection 3.5.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Illinova Corp), Asset Purchase Agreement (Illinois Power Co)
Prorations. The following Rentals, revenues, and other income, if any, from the Property, taxes, assessments, improvement bonds, service or other contract fees, utility costs, and other expenses affecting the Property shall be prorated between Buyer and Seller as of 11:59 p.m. local time the Closing Date. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property, and therefore entitled to the income and responsible for the expenses, after 12:01 a.m. on the Closing Date. Delinquent rentals as of the day immediately preceding Closing Date shall not be prorated and Seller hereby irrevocably assigns, as of the Closing Date, on its entire right to collect the basis of the actual number of days elapsed during the month in which same to Buyer, provided, however, that any delinquent rentals actually collected by Buyer after 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 Date shall be based on remitted to Seller after deducting Buyer's actual costs (including attorney's fees and costs) in the most recent official tax bills collection of such delinquent rentals and after applying such amounts to any rentals due and owing and attributable 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. On the Closing Date, then Buyer and Seller shall adjust the actual Taxes between Buyer and be fully credited for (i) security deposits which were paid by tenants to Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition (ii) reimbursement expenses and other sums owed by Seller to tenants for work or disputes which occurred prior to the foregoing apportionmentsClosing Date or for work to be performed or allowances to be granted to any tenants upon or after the Closing Date pursuant to any Tenant Leases in existence as of the Closing Date, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued (iii) any commissions or incurred, brokerage fees payable upon or after the Closing Date in connection with the ownership or operation any Tenant Leases in existence as 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 (iv) rentals already received by Seller attributable to periods after the Closing Date, all of which rents, other income and expenses . All non-delinquent real estate taxes or assessments on the Property shall be prorated as of based on the actual current tax bill, ▇▇t if such tax bill ▇▇▇ not yet been received by Seller by the Closing Date or if supplemental taxes are assessed after the Closing for the period prior to the Closing, the parties shall make any necessary adjustment after the Closing by cash payment to the party entitled thereto so that Seller shall have borne all taxes, including all supplemental taxes, allocable to the period prior to the Closing and Buyer shall bear all taxes, including all supplemental taxes, allocable to the period after the Closing. Rents If any expenses attributable to the Property and other incomeallocable to the period prior to the Closing are discovered or billed after the Closing, the parties shall make any necessary adjustment after the Closing by cash payment to the party entitled thereto so that Seller shall have borne all expenses allocable to the period prior to the Closing and Buyer shall bear all expenses allocable to the period from and after the Closing. The provisions of this Section 6.5 shall survive the Closing for a period of one (1) year. Ten (10) days prior to the Closing, Escrow Agent shall deliver to each of the parties for their review and approval a preliminary closing statement (the "Preliminary Closing Statement") based on an income expense statement prepared by Seller, approved by Buyer, and delivered to Escrow Agent prior to said date, setting forth (i) the proration amounts allocable to each of the parties pursuant to this Section 6.5 and (ii) the Closing Costs allocable to each of the parties pursuant to Section 6.6 hereof. Based on each of the party's comments, if any, collected by Buyer after regarding the Preliminary Closing Statement, Escrow Agent shall be applied first revise the Preliminary Closing Statement and deliver a final, signed version of a closing statement 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 each 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 parties 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 AgreementStatement").
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Cytrx Corp), Purchase and Sale Agreement (Cytrx Corp)
Prorations. The following All items which would normally and customarily be prorated in a real estate sale, including real estate taxes, personal property or use taxes, and sales taxes, installments of general and special assessments due and payable in the year of Closing, utility bills, annual installments of any assessment, amounts due or revenues under the Assumed Property Contracts and any prepaid amounts related to the foregoing, shall be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding before the Closing Date, with Seller being charged and credited for all of same prior to the Closing Date, and Purchaser being charged and credited for all of same on and after the Closing Date. Rent and other amounts due by the GSA Tenant under the GSA Lease will be prorated as of the Closing Date and will be paid to the party entitled to receive such payment promptly upon being collected. Taxes will be prorated using the maximum discount allowed by law. If the actual amounts of certain agreed upon items to be prorated are not known as of the Closing Date, the prorations shall be made on the basis of the actual number of best evidence then available; provided that, within one hundred twenty (120) days elapsed during the month in after Closing, Purchaser and Seller will make a further adjustment for all such amounts which may have accrued or been incurred prior to the Closing occurs: general and special county and city Date (including, but not limited to, real property taxes and special assessments (collectivelyestate taxes), "Taxes") for but not received or paid at that date. In the tax period then event that any item of income or expense is prorated at Closing in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy error or policies). Proration of Taxes shall be based on the most recent official tax bills basis of an estimate, or notice if it is determined that the parties failed to prorate an item at Closing which should have been prorated, Purchaser and Seller agree to make a further adjustment of valuation available for the fiscal year in which the Closing occurs, with due allowance such item(s) at a final reconciliation 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 performed within one (or any portion of the Property1) 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 year after the Closing Date, all of which rents, other income and expenses shall be prorated as of . To the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first extent that either party is required to any amounts due to Buyer and then, pay to the extent other any sum based on the foregoing post-Closing adjustments of prorated items, Purchaser and Seller each agree to make 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 payments within ten fifteen (1015) days after end of the month in which such amounts were collectedpost-Closing adjustments have been calculated and agreed to. Buyer This provision 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 survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Sources: Contract of Sale (US Federal Properties Trust Inc.), Contract of Sale (US Federal Properties Trust Inc.)
Prorations. 5.4.1 The following provisions shall govern the adjustments and prorations that shall be prorated made at Closing and the allocation of income and expenses from the Property between Buyer Seller and Seller Purchaser. Except as expressly provided in this Section 5.4.1, all items of operating revenue and operating expenses of the Property, with respect to the period prior to and ending at 11:59 p.m. local time of at the Property on the day immediately preceding the Closing DateDate (the “Cut-off Time”), shall be for the account of Seller and all items of operating revenue and operating expenses of the Property with respect to the period from and after the Cut-off Time, shall be for the account of Purchaser. Without limitation on the foregoing the following shall be prorated between Purchaser and Seller as of the Cut-off Time:
(a) All non-delinquent real estate taxes, water charges, sewer rents, vault charges and assessments on the Property on the basis of the actual number fiscal year for which assessed. In no event shall Seller be charged with or be responsible for any increase in the taxes on the Property resulting from the sale of days elapsed during the month in which Property or from any improvements made or leases entered into on or after the Closing occurs: general and special county and city real property taxes and special Date. If any assessments (collectivelyon the Property are payable in installments, "Taxes") then the installment for the tax current 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 prorated (with Purchaser assuming the most recent official tax bills or notice of valuation available for the fiscal year in which obligation to pay any installments due after the Closing occursDate).
(b) Subject to this Section 5.4.1(b), with due allowance to be made for all fixed rent and regularly scheduled items of additional rent under the maximum available discount or other exemptions to the extent permissible for said yearLeases, and other tenant charges if, as and when received. Seller shall deliver or provide a credit in an amount equal to all prepaid rentals for periods after the Closing Date and all refundable cash security deposits (to the extent the tax bills do foregoing were made by tenants under the Leases and are not accurately reflect the actual Taxes assessed against the Property (applied or any portion of the Property) and allocable either forfeited prior 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 ) to Purchaser on the Closing Date. Rents which are delinquent as of the Closing Date shall receive all rents and other income accruing, not be prorated on the Closing Date. Purchaser shall include such delinquencies in its normal billing and shall pay all other expenses accrued diligently pursue the collection thereof in good faith after the Closing Date (but Purchaser shall not be required to litigate or incurred, declare a default in connection with any Lease and in no event shall Purchaser incur any liability to Seller for failure to collect such delinquencies). To the ownership or operation of Property extent Purchaser receives rents 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 such payments shall be applied first to any amounts due to Buyer and then, to toward 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 for the month in which such payment is collected, second to the rents for the month in which Closing occurs, third to any delinquent rents owed to Seller, with Seller’s share thereof being held by Purchaser in trust for Seller and promptly delivered to Seller by Purchaser, and fourth toward any rents that shall then be due and payable to Purchaser. Purchaser may not waive any delinquent rents nor modify a Lease so as to reduce or otherwise affect amounts were collectedowed thereunder for any period in which Seller is entitled to receive a share of charges or amounts without first obtaining Seller’s written consent. Buyer Seller reserves the right to pursue any remedy against any tenant owing delinquent rents and any other amounts to Seller (but shall not be entitled to terminate or threaten to terminate any lease or any tenant’s right to possession), which right shall include the right to continue or commence legal actions or proceedings against any tenant, provided that with respect to any rents or other amounts so collected by Seller, Purchaser’s share thereof, if any, shall be held by Seller in trust for Purchaser and promptly delivered to Purchaser by Seller following the conclusion of such legal action or proceeding, if any. Delivery of the Assignment and Assumption of Leases and Contracts shall not constitute a waiver by Seller of such right, and such right shall survive the Closing. Purchaser shall reasonably cooperate with Seller in any collection efforts hereunder (but shall not be required to litigate or declare a default under any Lease). With respect to delinquent rents and any other amounts or other rights of any kind respecting tenants who are no longer tenants of the Property as of the Closing Date, Seller shall retain all rights relating thereto.
(c) Tenants of the Property may be obligated to pay, as additional rent, certain percentage rent, escalations in base rent and pass throughs of operating and similar expenses pursuant to the terms of the Leases (collectively, “Additional Rents”). Seller shall send all tenants at the Property reconciliation statements for calendar year 2011 prior to Closing and shall remain exclusively liable for any Additional Rents attributable to such calendar year. Purchaser shall cooperate with Seller and the applicable tenants to conduct and conclude such reconciliation; provided, however, Purchaser shall not be required to incur any third party out-of-pocket costs or expenses in connection with such cooperation with Seller. If Seller collected estimated prepayments of Additional Rents during calendar year 2011 in excess of any tenant’s share of such expenses, then Seller shall be solely responsible for crediting or repaying those amounts to the appropriate tenants under the Leases. If Seller under-collected estimated prepayments of Additional Rents during calendar year 2011, then Seller shall be solely entitled to any reimbursement from the tenants with respect to such amounts and Purchaser shall promptly remit to Seller any amounts received by Purchaser from such tenants with respect to such Additional Rents if received after Closing; Purchaser shall reasonably cooperate with Seller to pursue the collection of any such amount in the ordinary course of business (but Purchaser shall not be required to incur any third party out-of-pocket costs or expenses in connection therewith or litigate or declare a default in any Lease and, provided that Purchaser shall have complied with the foregoing obligations, in no obligation event shall Purchaser incur any liability to Seller for Buyer's failure to collect such rentals amounts). With respect to any Additional Rents for calendar year 2012, the only proration to be made at Closing, if any, shall be a credit to Seller if Seller fully paid the operating expenses but did not receive payment of the Additional Rents for the period commencing on January 1, 2012 and ending on the Closing Date (the “Stub Period”), or a credit to Purchaser if Seller did not pay the operating expenses but received the Additional Rents for the Stub Period (in each case the credit being the amount of the Additional Rents billed to the tenants for the Stub Period). There shall be no further reconciliation after the Closing with respect to 2012 Additional Rents. Seller shall be entitled to collect any Additional Rents directly from tenants who are no longer in occupancy of space at the Property, to the extent relating to its period of ownership.
(d) Charges and payments under Contracts or permitted renewals or replacements thereof assigned to Purchaser pursuant to the Assignment and Assumption of Leases and Contracts and any fees or expenses in connection with any agreements recorded against the Property and which are not eliminated as an Unpermitted Exception pursuant to Section 4.1.
(e) Any prepaid items, including fees for licenses which are transferred to Purchaser at the Closing and annual permit and inspection fees required by applicable law.
(f) Utilities, including telephone, steam, electricity and gas, on the basis of the most recently issued bills therefor, subject to adjustment after the Closing when the next bills are available (but in no event later than one hundred twenty (120) days following the date of Closing), or if current meter readings are available, on the basis of such readings.
(g) Deposits with telephone and other income. All security utility companies, and any other refundable deposits paid by tenants persons or entities who supply goods or services in connection with the Property if the same are assigned 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 Purchaser at the Closing, which shall be credited in their entirety to Seller.
(h) Such other items as are customarily apportioned between sellers and purchasers of real properties of a type similar to the Property and located in the same geographic area as the Property, subject to Section 7.2.3(a).
5.4.2 At Closing Seller shall receive a credit for the “Purchaser Leasing Costs” (as defined below) incurred by Seller in connection with the “CytoSport Lease” (as defined below). Escrow Holder As used herein, the term “Purchaser Leasing Costs” shall mean any brokerage and leasing commissions (in an amount not be concerned to exceed $17,000), tenant improvement costs and other costs and expenses in connection with the lease with “CytoSport” (as defined below). If Purchaser has approved any prorations that are to be made extension, renewal or expansion of any existing Lease exercised or entered into from and after the Closing pursuant Effective Date in accordance with Section 7.2.3, then the parties shall agree to this Agreementprorate any cost or expense incurred in connection with such extension, renewal or expansion at the time of such approval. Notwithstanding the foregoing, Seller shall be solely responsible for any attorneys’ fees incurred by Seller in connection with the execution of the CytoSport Lease.
Appears in 2 contracts
Sources: Contract of Sale, Contract of Sale (Bebe Stores, Inc.)
Prorations. The following items shall be prorated between Buyer Seller and Seller Purchaser (with Purchaser deemed to be holding title as of 11:59 p.m. local time of the day immediately preceding the Closing Date):
a. All ad valorem and other real estate taxes with respect to the Property (collectively, the “Taxes”) shall be prorated as of 12:01 a.m. on the Closing Date. If the Closing shall occur before the tax rate is fixed for the then current year, the apportionment of the Taxes shall be made upon 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") tax rate for the immediately preceding tax period then in effect and insurance premiums year applied to the latest assessed valuation of the Property. Within thirty (but only if Buyer is assuming Seller's insurance policy or policies). Proration 30) days after the actual amount of the Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursoccurs are determined, with due allowance to be made for Seller and Purchaser shall adjust the maximum available discount proration of the Taxes and Seller or other exemptions Purchaser, as the case may be, shall pay to the extent permissible for said year, other any amount required as a result of such adjustment. All unpaid taxes and to the extent the tax bills do not accurately reflect the actual Taxes taxes assessed against the Property for prior years due to a change in use or ownership of the Property shall be paid by Seller. Notwithstanding the foregoing, there will be no proration of taxes among the parties pursuant to this provisions for which the payor is entitled to or has received a reimbursement from USPS.
b. All rent and other amounts payable under the Lease shall be prorated as of 12:01 a.m. on the Closing Date. Seller shall be charged with, and Purchaser shall receive, a credit against the Purchase Price for (i) any rent and other amounts collected by Seller or the Contributed Entity with respect to the Property prior to the Closing Date, but applicable to any period after the Closing Date and (ii) any security deposits held by Seller or the Contributed Entity with respect to the Property and prepaid rents received by Seller or the Contributed Entity with respect to the Property under the Lease. Rent is deemed to be delinquent when payment thereof is due on or prior to Closing but has not been made by Closing. Delinquent rent shall be prorated between Purchaser and Seller as of the Closing as if Seller or the Contributed Entity had received such rent and consequently, Seller shall not be entitled to any credit or increase to the Purchase Price as a result of such delinquent rent. Seller is permitted to pursue Tenant for delinquent rent that was due prior to Closing, but agrees to do so in a commercially reasonable manner (provided, however, that: (a) Seller shall not seek to have Tenant’s possession of the Land and the Improvements under the Lease terminated; and (b) Seller shall not be entitled to any rent received from Tenant after the Closing unless Tenant is current in its rent obligations to Purchaser for periods occurring from and after Closing). Delinquent rent collected by Purchaser (if any), net of the costs of collection (including attorneys’ fees), shall be applied first against those amounts currently due (or any portion of the Propertyto be due within ten (10) days) and allocable either then to amounts most recently overdue. Any payments due to Seller as a result of collected delinquent rent shall be payable by Purchaser to Seller upon receipt thereof. In the period before event Seller receives the Closing or to the period rental check from Tenant after the Closing, then Buyer and Seller shall adjust it was not a part of the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentsrent proration, Seller shall receive all immediately remit to Purchaser the full amount of the check received. Both parties acknowledge that USPS rents and other income accruedare paid in arrears, at the end of month, 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, be adjusted accordingly.
c. All other income and operating expenses of the Contributed Entity or the Property, including, without limitation, public utility charges, maintenance, management, and other service charges, and all other normal operating charges shall be prorated as of the Closing. Rents Closing Date based upon the best available information (it being understood that, unless otherwise indicated, Seller, on behalf of the Contributed Entity, shall pay all amounts due with respect to the Property that accrue prior to the Closing Date), or, in Purchaser’s sole discretion, moved into Purchaser’s name as of the Closing Date.
d. With respect to leasing commissions, tenant finish costs, costs associated with architectural plans and other incomespecifications, utility splits, and demising costs, if any, collected by Buyer after the Closing Seller shall be applied first to any amounts due to Buyer and then, to responsible for the extent payment of all 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 costs at the Closing. Escrow Holder .
e. For purposes of proration only, Purchaser is deemed to own on the Property on the Closing Date.
f. This Section 3.06 shall not be concerned merge with any prorations that are to be made after the Closing pursuant to this AgreementDeed and shall survive the Closing.
Appears in 2 contracts
Sources: Agreement of Purchase and Sale (Postal Realty Trust, Inc.), Agreement of Purchase and Sale (Postal Realty Trust, Inc.)
Prorations. The following shall be prorated between Buyer (a) All normally and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Datecustomarily proratable items, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general including, without limitation, real estate and special county and city real personal property taxes (“Taxes”), utility expenses, and special assessments (collectively, "Taxes") for payments under the tax period then in effect and insurance premiums Property Agreements (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 such Property (or any portion of the PropertyAgreements are being assumed by Purchaser at Closing) 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 Date, Seller being charged and credited for all of the same up to such date and Purchaser being charged and credited for all of the same on and after such date. If the actual amounts to be prorated are not known as of the Closing Date, the proration shall be made on the basis of the best information then available, and thereafter, when actual figures are received, a cash settlement will be made between Seller and Purchaser. Seller shall be obligated to pay any and all taxes and assessments that arise as a result of change in land usage or ownership, including without limitation all “rollback” or other additional taxes.
(b) If the Taxes for the year of Closing are not known as of the Closing Date, the proration for Taxes will be determined based upon the appraised value of the Property and the tax rates applicable to the Property during the year prior to the calendar year of the Closing.
(c) If the actual amounts to be prorated with respect to expenses other than Taxes are not known as of the Closing Date, the prorations with respect to those expenses shall be made on the best information then available.
(d) With respect to both Taxes and other expenses, after the actual amounts of the Taxes or other expenses are known, adjustments, if needed, will be made between Seller and Purchaser.
(e) The foregoing notwithstanding, it is acknowledged and agreed that the tenants under the HEB Lease, the Raising Cane’s Lease and the Hat Creek Lease are responsible to pay Taxes applicable to calendar year 2017 and subsequent calendar years for their respective leased premises (each a separate tax parcel) directly to the applicable taxing authority and, accordingly, Taxes for the tax parcels under the HEB Lease, the Raising Cane’s Lease and the Hat Creek Lease will not be pro-rated at the Closing.
(f) All deposits held by the providers of utility services to the Real Property shall, at Seller’s option, be refunded to the Seller by the appropriate utility providers, or be reimbursed to Seller by Purchaser at the Closing. Rents and other income, if any, collected by Buyer after the Closing Purchaser shall be applied first solely responsible to any amounts due to Buyer and then, make arrangements for the continuation of utility services to the extent such rents Real Property, including without limitation, the obligation to post new utility deposits in the event Seller elects to obtain a refund of Seller’s existing deposits from the providers of utility services. Notwithstanding the foregoing, Seller will not take any action or other income relate fail to take any action which would result in the cessation or termination of utility service to the period ending on or before Real Property.
(g) All security deposits actually in Seller’s possession under the terms of any existing leases shall be delivered to Purchaser at the Closing, and Purchaser will assume all liabilities and obligations of Seller in connection with such rents security deposits. As for any security deposits not in the form of cash (e.g., letters of credit), Seller must deliver to Purchaser at Closing the original letter of credit or other income shall non-cash instrument, together with all transfer documentation and transfer fees required by the issuing entity to cause same to be paid reissued to Purchaser immediately following the Closing. Seller and Purchaser agree to cooperate to ensure that fully executed Tenant Letters are sent to all of the Tenants at the Property within ten (10) days after end of the Closing.
(h) All rents collected with respect to the Property as of the Closing Date for the then current month shall be prorated as of the Closing Date. Purchaser shall make reasonable attempt after Closing to collect uncollected rents for any period prior to Closing (the “Delinquent Rents”) in which the usual course of operation of the Property; provided, however, Purchaser shall not be required to declare a lease default or institute any legal action in any court against any Tenant. Seller may not initiate (nor demand that Purchaser initiate) legal proceedings for collection of delinquent rentals against any Tenants. One hundred eighty (180) days after the Closing Date, upon written request from Seller, Purchaser shall provide Seller with a written accounting (the “Uncollected Rents Accounting”) of all of the Delinquent Rents and all other rents and expenses collected by Purchaser after Closing. Purchaser shall promptly pay to Seller all Delinquent Rents not previously remitted by Purchaser to Seller, but only to the extent Seller is entitled to the same under this section. In making the computations required by this Section, all amounts of Delinquent Rent collected from Tenants shall be applied: (i) first to Purchaser’s actual and reasonable costs of collection, including, without limitation, court costs and reasonable attorneys’ fees; (ii) next, to current rental owed by such amounts were collectedTenant; and (iii) finally, to delinquent rentals, if any, owed by such Tenant in the inverse order of their maturity. Buyer shall incur no Seller will deliver to Purchaser, within five (5) business days following receipt, any rents received by Seller after the Closing and attributable to the period from and after the Closing. If Seller has provided any Tenant with free rent under the terms of its Tenant Lease (the “Free Rent”), then Seller agrees, at the Closing, to provide Purchaser with a credit against the Purchase Price equal to that portion of the Free Rent, if any, covering the period after the Closing Date; provided, however, Purchaser will not be entitled to such credit if any such Free Rent would be paid to Purchaser under any Master Lease.
(i) The Hotel Lease, defined in the Rent Roll, includes an obligation to reimburse landlord for impact and subsequent user fees prepaid by Seller for Buyer's failure to Water Control and Improvement District No. 17 (“WCID 17”). The requirement to reimburse these impact and subsequent user fees are referred to herein as the “Impact Fees Reimbursements”. All Impact Fees Reimbursements will be paid to Seller when received from the applicable Tenant. After Closing, Purchaser agrees to use commercially reasonable efforts, at no cost or liability to Purchaser, to collect such rentals unpaid Impact Fees Reimbursements from the Tenant under the Hotel Lease when due in the usual course of operation of the Property and will promptly remit Impact Fees Reimbursements, if any, collected to Seller; provided, however, Purchaser shall not be required to declare a lease default or institute any legal or other incomeproceedings against any Tenant. All security and any other refundable deposits Purchaser agrees that it will, if permitted by the terms of the Hotel Lease, offset the Impact Fees Reimbursement due by the Tenant under the Hotel Lease (if the Impact Fees Reimbursement has not otherwise been paid by tenants such Tenant) from any Security Deposit due back to Tenant under the Hotel Lease at the time the Security Deposit refund is due Tenant and pay such offset amount to Seller. Seller pursuant may not initiate (nor demand that Purchaser initiate) legal or other proceedings for collection of Impact Fees Reimbursements from any Tenant.
(j) All (i) unpaid tenant finish out or construction allowances, landlord construction cost or reimbursement obligations, if any, under the Tenant Leases executed on or prior to tenant leases shall Closing (“Unpaid Allowances”) and (ii) unpaid leasing commissions, if any, for Tenant Leases executed on or prior to Closing (“Unpaid Leasing Commissions”), will be delivered paid by certified funds Seller to Buyer Purchaser at the Closing or, at Seller's option, credited to Buyer by credit against the cash portion Purchase Price, and Purchaser will assume all liabilities and obligations of Seller in connection with the payment of the Purchase Price Unpaid Allowances and the Unpaid Leasing Commissions so credited; provided, however, if Unpaid Allowances or Unpaid Leasing Commissions are outstanding under any Tenant Leases which are not Earn-Out Leases as of the Closing then, in lieu of such credit, such Unpaid Allowances and Unpaid Leasing Commissions will be funded by Seller into escrow in accordance with the Tenant Allowance/Commission Escrow Agreement at the Closing.
(k) Seller has entered into a Tenant Lease effective May 15, 2015 (the “RCR Lease”), with Raising Cane’s Restaurants, LLC (“RCR”). Escrow Holder Prior to Closing, Seller paid to RCR the entire $1,450,000 Allowance (as defined in the RCR Lease). Notwithstanding the terms of clause (i) above, if the Closing occurs, Purchaser will reimburse Seller at Closing the amount of the Allowance paid by Seller to RCR to the extent not already collected by Seller from RCR as Improvement Rent (as defined in the RCR Lease) under the RCR Lease.
(l) Seller shall not be concerned with any prorations that are has agreed to be made fund an escrow in the amount of $140,000.00 at the Closing in order to provide funding for certain landscape improvements on the Property after the Closing pursuant to in accordance with a landscape escrow agreement in the form attached hereto and incorporated herein for all purposes as Exhibit “G-1.” The provisions of this AgreementSection 5.05 shall survive the Closing.
Appears in 2 contracts
Sources: Agreement of Sale and Purchase, Agreement of Sale and Purchase (Stratus Properties Inc)
Prorations. The (a) Contributor and the Partnership shall jointly prepare not less than five (5) days prior to the Closing Date, a closing settlement statement estimating the closing prorations and adjustments of the following shall items (without duplication of one another or any other provision hereof):
(i) All rents billed for the month in which the Closing Date occurs will be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the “Cut-Off Time”) based on the amounts billed and the actual number of days in the month during which the Closing Date occurs; and Contributor will be entitled to such rent for the period on and before the Cut-Off Time, and the Partnership will be entitled to such rent for the period after the Cut Off Time. All rents payable by each tenant whose Lease commences on or after the Closing shall belong entirely to the Partnership, including any pre-paid rents received by Contributor or the Company. Should rent be received subsequent to Closing by the Partnership or the Company which belongs to Contributor, it will be promptly remitted to Contributor, and should rent be received subsequent to Closing by Contributor which belongs to the Partnership, it will promptly be remitted to the Partnership. If the Company collects any rent after the Closing Date from any tenant who was delinquent in the payment of rent as of the Closing Date, such rent shall be applied by the Company (1) first to the reimbursement of any cost or expense (including attorney fees) incurred by the Company or its agents in collecting such rent, (2) second, the remainder to the calendar month in which the Closing Date occurred, (3) third, the remainder to any calendar month or months following the calendar month in which the Closing Date occurred, until the tenant is current with respect to all rents payable after the Closing Date, and (4) finally any remainder to calendar months prior to the month in which the Closing Date occurred.
(ii) An amount equal to all cash tenant security deposits previously received by Contributor (or its predecessors as landlord under the Leases), to the extent not previously returned to such tenants or applied against rent or other obligations of tenants, will be credited to the Partnership.
(iii) Rent and other charges owed or paid by Contributor under any ground lease, if applicable, will be prorated as of the Cut-Off Time.
(iv) Personal property Taxes, gas, electric, steam, water and sewer charges, and other utility charges (utility charges will be prorated based on the last reading of meters prior to Closing performed at Contributor’s request, if possible) as of the Cut-Off Time.
(v) Real property Taxes will be prorated as of the Cut-Off Time.
(vi) Amounts owed or paid by Contributor under the Licenses will be prorated as of the Cut-Off Time.
(vii) Amounts owed or paid by Contributor under any reciprocal easement agreement will be prorated as of the Cut-Off Time.
(viii) Leasing commissions, tenant improvement allowances and other leasing costs for each Lease will be amortized over the term of the Lease in accordance with US GAAP. Leasing costs paid by the Company prior to the Cut-Off Time in excess of the portion of such costs amortized prior to the Cut-Off Time will be treated in accordance with GAAP and credited to Contributor.
(ix) An amount equal to any utility deposits posted by the Company with utilities as of the Cut-Off Time will be credited to Contributor.
(x) An amount equal to any escrows posted by the Company with the Lenders pursuant to the Loan Documents will be credited to Contributor.
(xi) The principal amount of, and all accrued and unpaid interest on the Loan as of the Cut-Off Time will be credited to the Partnership in computing the Capital Contribution Amount.
(xii) Except as otherwise provided herein, all other cash, including working capital, bank account balances or other cash-equivalents, held by the Company as of the Cut-Off Date will be credited to Contributor (and will continue to be held by the Company).
(xiii) Except as otherwise provided herein, all other liabilities of the Company, current or contingent (e.g., accrued expenses or accounts payable), as of the Cut-Off Time will be credited to the Partnership, to the extent that such liabilities would be required to appear on the Company’s balance sheet prepared in accordance with GAAP.
(xiv) Except as otherwise provided herein, all other pre-paid expenses of the Company as of the Cut-Off Time will be credited to Contributor.
(xv) All amounts for costs of Closing in accordance with Section 5.2.
(xvi) Such other matters as are customarily prorated in similar transactions where the Property is located will be prorated as of the Cut-Off Time.
(b) Prorations and/or adjustments shall be effected at Closing by increasing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to Contributor) or by reducing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to the Partnership).
(c) If the actual amounts of the items prorated and/or adjusted are not known as of the Closing Date, the prorations and/or adjustments will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations and/or re-adjustments will be made on the basis of the actual number figures, and a final computation of the Capital Contribution Amount will be made by Contributor and the Partnership not later than the date that is one hundred eighty (180) days elapsed following the end of the calendar year during which Closing occurs.
(d) If the month Closing Date shall occur before the real property tax rate is fixed, the apportionment of Taxes shall be upon the basis of the tax rate for the preceding fiscal year applied to the latest assessed valuation. If, subsequent to the Closing Date, Taxes are determined to be higher or lower than those that were apportioned, a new computation shall be made, and a re-proration or adjustment of the Capital Contribution Amount will be effected.
(e) Percentage rent, if any, payable under any Lease shall be prorated with respect to the full lease year or other applicable full period provided for under the Lease in which the Closing occurs: general occurs on a per diem basis as and special county and city real property taxes and special assessments (collectivelywhen collected. The proration of percentage rent, "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 any, shall be based on the most recent official tax bills or notice of valuation available aggregate sales for the fiscal full lease year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to applicable full period under the extent permissible for said yearLease, 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 by attributing tenant’s specific periodic sales amount to the period before the Closing or to Date and the period after the Closing, then Buyer from 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 Date and expenses shall be prorated as of then applying the Closingapplicable percentage rent percentage. Rents and other income, if any, Any percentage rent collected by Buyer the Company after Closing (including any percentage rent which is delinquent) and pertaining to (i) an entire lease year or accounting period of a tenant under a Lease which ends on a date prior to the Closing shall be applied first to any amounts due to Buyer and then, Date or (ii) that portion of a lease year or accounting period of such tenant covering a period prior to the extent Closing Date where such rents lease year or other income relate accounting period begins prior to the period ending on or before the ClosingClosing Date and ends thereafter, such rents or other income shall in both cases be paid to Seller within ten (10) days Contributor promptly after end of receipt by 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 AgreementCompany.
Appears in 2 contracts
Sources: Contribution Agreement (Phillips Edison - ARC Shopping Center REIT Inc.), Contribution Agreement (Phillips Edison - ARC Shopping Center REIT Inc.)
Prorations. 3.2.1. The following shall be prorated between Buyer and Seller apportioned with respect to the Property as of 11:59 p.m. local time the end of the day immediately preceding Transition Period (as defined in Section 6.1.1), as if Purchaser were vested with title to the Property as of the end of the Transition Period.
(a) rents, if any, as and when collected (the term “rents” as used in this Agreement includes all payments due and payable by Tenants under the Leases);
(b) taxes (including personal property taxes on the Personal Property) and assessments levied against the Property;
(c) payments under the Contracts;
(d) gas, electricity and other utility charges for which Seller is liable, if any, such charges to be apportioned at 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 most recent meter reading occurring prior to Closing; and
(collectively, "Taxes"e) any other accrued or prepaid operating expenses 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 occursProperty and, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearcustomarily prorated between a purchaser and a seller in the Commonwealth of Massachusetts, and any other items pertaining to the extent Property.
3.2.2. Notwithstanding anything contained in the tax bills do not accurately reflect foregoing provisions:
(a) At Closing, Seller shall deliver to Purchaser any security deposits and prepaid rents (for periods on or after the actual Taxes assessed end of the Transition Period) under the Leases or credit to the account of Purchaser the unapplied amount of such security deposits and prepaid rents. All prepaid rents covering the period of time commencing on or after the end of the Transition Period shall be delivered by Seller to Purchaser on the Closing Date, or Purchaser may elect to receive a credit against the Property Purchase Price in the amount of such prepaid rents.
(b) Any taxes paid at or any prior to Closing shall be prorated based upon the amounts actually paid. If taxes and assessments for the current year have not been paid before Closing, Seller shall be charged at Closing an amount equal to that portion of the Property) such taxes and allocable either assessments which relates to the period before the Closing end of the Transition Period and Purchaser shall pay the taxes and assessments prior to their becoming delinquent. Any such apportionment made with respect to a tax year for which the tax rate or to assessed valuation, or both, have not yet been fixed shall be based upon 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 accruedmost recent ascertainable, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property before the be re-prorated post-Closing Date, once final taxes 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 assessments for 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 Agreementhave been determined.
Appears in 2 contracts
Sources: Purchase and Sale Agreement, Purchase and Sale Agreement (Global Partners Lp)
Prorations. The following items shall be prorated by the parties at the Closing Conference as of the Close of Escrow:
(a) Real property taxes and special assessments with respect to the Land and Improvements based upon the latest available tax information such that Seller shall be responsible for all such taxes levied against the Property and all installments of special assessments then payable, to and including the day prior to the earlier of the Close of Escrow or the “Commencement Date” of the Lease, and Buyer shall be responsible for all taxes levied against the Property and all installments of special assessments payable thereafter. In the event Seller receives any payment from FedEx for any taxes or assessments, Seller shall credit Buyer for all such amounts received. In the event the actual real property taxes and special assessments differ from the latest available information used to prorate such amounts, Buyer and Seller shall re-prorate such amounts promptly upon reciept of information regarding such actual amounts; and
(b) Rents and other receivables under the Lease (collectively, “Rents”) shall be accounted for as follows:
(i) Rents due and payable in the month of the Close of Escrow 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 that Seller has collected all current Rents;
(collectively, "Taxes"ii) 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 entitled to all Rents and other receivables accruing after the most recent official tax bills or notice Close of valuation available for the fiscal year in which the Closing occurs, with due allowance Escrow; and
(iii) Seller shall promptly remit to be made for the maximum available discount or other exemptions Buyer all sums received by Seller from FedEx (including advanced rentals) 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 accruing after the Closing, then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside Close of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionments, Seller shall receive all Escrow other than for 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 receivables for which 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 Agreementreceived credit hereunder.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (O'Donnell Strategic Industrial REIT, Inc.), Purchase and Sale Agreement (O'Donnell Strategic Industrial REIT, Inc.)
Prorations. As promptly as reasonably practicable after the Closing:
(i) Buyers and Sellers shall prorate all installments of real property Taxes and personal property taxes, special assessments, water and sewer rentals, vault charges and other real property related charges incurred in the Ordinary Course of Business with respect to the Owned Real Property and, to the extent constituting an obligation under the applicable Leases, the Leased Real Property leased pursuant to such Leases. The following Parties shall calculate such proration using current year real estate Tax information, if available. If current year Tax information is not available, then the Parties shall calculate such proration using the amount due and payable in the year immediately preceding the year of Closing, subject to subsequent adjustment when the current Tax bills become available. Sellers’ prorated portion of such Taxes shall be included in the calculation of the Tax Amount. At such time as Tax bills for such property Taxes are received, the Parties shall calculate any necessary adjustments to such prorations in order to reflect differences between such estimated Taxes and the actual Taxes as reflected in such Tax bills, and the Parties shall make the necessary payments to each other to account for such differences, which payments shall be treated as a supplemental Purchase Price Adjustment. All property and similar Taxes (but not including any Transfer Taxes covered by Section 6(h), and for the sake of clarity, not including any income Taxes) shall be prorated between Buyer Sellers and Seller Buyers as of 11:59 p.m. local time of the day immediately preceding the Closing Date. For this purpose, the amount of property and similar Taxes for any Tax year or period with respect to Sellers, the Target Companies and Tiwest that begins on or before and ends after the basis Closing Date (a “Straddle Period”) allocated to the period prior to the end of the actual Closing Date shall be the product of (A) the amount of such property and similar Taxes due for the entire Straddle Period and (B) a fraction with the numerator equal to the number of days elapsed during in the month in which Straddle Period up to and including the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for the tax period then denominator equal to the number of days in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies)the entire Straddle Period. Proration of Taxes Buyers shall be based on responsible for and control the most recent official tax bills or notice conduct of valuation available for the fiscal year in which the Closing occursany audit, with due allowance to be made for the maximum available discount litigation or other exemptions Tax proceeding with respect to property Taxes for any Straddle Period.
(ii) For purposes of this Section 6(e), the amount of any expense credited by one Party 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 deemed an expense 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 AgreementParty.
Appears in 2 contracts
Sources: Asset and Equity Purchase Agreement (Tronox Inc), Asset and Equity Purchase Agreement (Huntsman International LLC)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current tax year to the Closing Date. If Closing occurs before that year's tax bills are available, 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 proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions amount of any deficiency in the proration. Buyer shall cause the Partnership to the extent permissible for said year, pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) Buyer acknowledges that all cash assets of the Partnership will be distributed to Seller prior to the Closing. All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a 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 term 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 offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by the Partnership at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, each Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to the Partnership for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Seller at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Sources: Contract of Sale (Education Realty Trust, Inc.), Contract of Sale (Education Realty Trust, Inc.)
Prorations. Income and expenses from the operation of the System ---------- through the Closing Date shall be for the account of Seller and after the Closing Date for the account of Buyer. The following items of income, cost and expense shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Date (or such other date or dates as the parties may hereafter agree upon in writing) in the manner set forth below:
(a) Subscriber and other revenue shall be prorated on the basis of the actual number of days of the time period to which such revenue relates elapsed through the Closing Date, provided that subscriber and other revenue represented by accounts receivable shall be for the account of Seller, only to the extent that (i) such accounts receivable have been outstanding less than Sixty-One (61) days as of the Closing Date based on a statement certified by authorized officers to be true, correct and complete to the best of such officers' information, knowledge and belief and (ii) the aggregate amount of such accounts receivable is reduced by Five Percent (5%) of the amount thereof. For purposes of this Section 5.1(a), an account receivable shall be deemed outstanding for the number of days elapsed during from the month in which date of the statement giving rise to such account receivable through and including the Closing occurs: general Date;
(b) Copyright, pole attachment or other fees or charges, not delinquent, arising under any of the Franchises, Authorities and special county Assumed Contracts, or otherwise shall be prorated on the basis of the number of days of the time period to which such fees or charges relate elapsed through the Closing Date;
(c) All real and city real personal 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 levied 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 Assets and all assessments and excise taxes payable with regard to cable television services and related sales to Subscribers (or any portion excluding penalties and interest and except such taxes as are referred to in Section 3.2) shall be prorated on the basis of the Property) and allocable either to number of days of the relevant tax year or 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 elapsed through the Closing Date, based on the latest available information;
(d) Rents, utilities 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 similar recurring expenses shall be prorated as on the basis of the Closing. Rents number of days of the time period to which such expenses relate elapsed through the Closing Date; and
(e) Wages, salaries, payroll taxes (other than withholding taxes) and other income, if any, collected by fringe benefits of employees who continue in the employ of Buyer after the Closing Date shall be applied first prorated on the basis of the number of working days (including paid holidays) during the payroll period through the Closing Date relative to the total number of such days during that payroll period, provided that any amounts due wages, salaries or other benefits payable to Buyer and thenor for any employee on account of that employee's termination of employment shall not be prorated but shall be paid by the party which effects the termination of that employee's employment;
(f) Accrued vacation shall be prorated separately on the basis of the number of vacation days accrued through the Closing Date relative to the maximum number of vacation days accruable under the established policies of Seller as set forth in its Associate Policy Guide, a copy of which has been delivered to Buyer; and
(g) Any income or expense under any Assumed Contract, to the extent such rents or other income relate not expressly referred to above in this Section 5.1, shall be prorated on a basis reasonably related 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 basis upon which such amounts were collected. Buyer shall incur no obligation to Seller for Buyer's failure to collect such rentals income 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 Agreementexpense is determined.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Ids Jones Growth Partners 87-a LTD/Co/), Asset Purchase Agreement (Ids Jones Growth Partners 87-a LTD/Co/)
Prorations. The following 16.1 Real estate and personal property taxes and ground rents under the Ground Leases shall be prorated between Buyer and Seller as of 11:59 p.m. local time midnight of the day immediately before the Closing Date. In the event that the taxes for the year of the Closing are unknown, the tax proration will be based upon such taxes for the prior year and, at the request of either party, such taxes for the year of the Closing shall be reprorated and adjusted when the tax bill for the year ▇▇ ▇he Closing is received and the actual amount of taxes is known.
16.2 Utility bills or charges, where applicable, shall be prorated as of midnight of the day before the Closing Date. The parties shall, to the extent reasonably possible, have utility meters read the day preceding the Closing Date and Seller shall be responsible for paying all utility bills or charges which accrued against the Property prior to midnight of the day before the Closing Date and Purchaser shall be required to pay all utility bills or charges accruing against the Property on or subsequent to midnight of the day before the Closing Date, on the basis with any charge for which a reading could not be made as of the actual number of days elapsed during the month in which day preceding the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") for Date being prorated as of midnight of 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 day before the Closing Date using an estimate based on the most recent official tax bills or notice reading for such utility. Purchaser shall, as of valuation available for the fiscal year in which day prior to the Closing occursDate, post with due allowance to be made for the maximum available discount or other exemptions each utility company such deposit as each such utility company shall require, to the extent permissible for said year, and end that Seller's utility deposits shall be refunded 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 Seller following the Closing, then Buyer and Seller after appropriate charge for Seller's utility bills. Purchaser shall adjust secure its own insurance on the actual Taxes between Buyer and Seller, outside Property as 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 Seller shall receive cancel all rents existing insurance policies as of the Closing Date. Purchaser and Seller shall, before and after the Closing, reasonably cooperate with each 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 Datethis Section 16.2.
16.3 The parties agree that, except as otherwise specifically stated elsewhere in this Agreement, all of which rents, other income and expenses shall of the Property are intended to be prorated as of midnight of the Closingday before the Closing Date. Rents and other incomePurchaser shall be deemed the owner of the Property, if anyfor the purpose of such calculation, collected for the entire Closing Date. Income shall include all revenue of Seller derived from the operation of the Property. Expenses shall include all expenses from the operation of the Property. Income actually received by Buyer after Seller prior to the Closing in payment for a period subsequent to the Closing shall be applied first appear on the closing statement as a credit to any amounts due to Buyer and then, Purchaser. Expenses actually paid by Seller prior to the extent such rents or other income relate Closing in payment for a period subsequent to the period ending Closing shall appear on or before the Closingclosing statement as a credit to Seller.
16.4 Notwithstanding anything to the contrary in Section 16.3 above, such rents or other income under the Leases, including, without limitation, fixed rent and additional rent, including operating expense and real estate tax pass-throughs (collectively, "Rents"), shall be paid to Seller within ten (10) days after end of addressed in 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.manner set forth in
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Highwoods Properties Inc), Purchase and Sale Agreement (Highwoods Realty LTD Partnership)
Prorations. The following shall be prorated between Buyer (a) Seller and Seller Purchaser agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the "PRORATION TIME"), the following (collectively, the "PRORATION ITEMS"):
(i) Rentals, in accordance with Section 10.4(b) below.
(ii) Cash Security Deposits and any prepaid rents, together with interest required to be paid thereon.
(iii) Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than five (5) days prior to the Closing Date, on and a per diem adjustment shall be made for the basis of days between the actual number of days elapsed during the month in which meter reading date and 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 Date based on the most recent official tax bills or notice of valuation available meter reading.
(iv) Amounts payable under the Spectrasite Agreements and amounts payable under the Service Contracts other than those Service Contracts which Purchaser has elected not to assume.
(v) Real estate taxes due and payable for the fiscal year in which calendar year. If the Closing occursDate shall occur before the tax rate is fixed, with due allowance to the apportionment of real estate taxes shall be made upon the basis of the tax rate for the maximum available discount or other exemptions preceding year applied to the extent permissible for said yearlatest assessed valuation. If, and subsequent 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, real estate taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property and Buyer Improvements should be determined to be higher or lower than those that are apportioned, a new computation shall receive all rents and other income accruingbe made, and shall Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. Purchaser shall, at Closing, assume all other expenses accrued incurred or incurred, to be incurred in connection with any real estate tax appeals that are pending at the ownership or operation time of Property on or after Closing. Seller will be charged and credited for the Closing Date, amounts of 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 Proration Items relating to the period ending up to the Proration Time, and Purchaser will be charged and credited for all of the Proration Items relating to the period from and after the Proration Time. The estimated Closing prorations shall be set forth on or before a preliminary closing statement to be prepared by Seller and submitted to Purchaser prior to the ClosingClosing Date (the "CLOSING STATEMENT"). The Closing Statement, such rents or other income once agreed upon, shall be signed by Purchaser and Seller. The proration shall be paid at Closing by Purchaser to Seller within ten (10if the prorations result in a net credit to Seller) days after end of or by Seller to Purchaser (if the month prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure Purchaser) by increasing or reducing the cash 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 Purchaser in payment of the Purchase Price at the Closing. Escrow Holder shall If the actual amounts of the Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller's insurance policies will not be concerned assigned to Purchaser. Final readings and final ▇▇▇▇▇▇▇▇ for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Purchaser will be obligated to make its own arrangements for any prorations that are deposits with the utility providers. The provisions of this Section 10.4(a) will survive the Closing for twelve (12) months.
(b) Purchaser will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period from and after the Proration Time. After the Closing, Seller will cause to be made paid or turned over to Purchaser all Rental, if any, received by Seller after Closing and attributable to any period from and after the Closing pursuant Proration Time. "RENTAL" as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each Tenant's proration share of building operation and maintenance costs and expenses as provided for under the Lease, to this Agreement.the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges, tenant or real property
Appears in 2 contracts
Sources: Agreement of Sale and Purchase (Mack Cali Realty L P), Agreement of Sale and Purchase (Mack Cali Realty Corp)
Prorations. The At Closing, the following prorations shall be prorated between Buyer and Seller made as of 11:59 p.m. local time of the day immediately preceding midnight on the Closing Date. Seller shall furnish to Purchaser and Title Company a draft Closing Statement three (3) days prior to the expected Closing Date containing the following pro-rations of income and expense and the apportionment of taxes:
(a) All collected rents and other income with respect to the Property, on the basis of the actual number of days elapsed during if any, for the month in which the Closing occurs: general , and special county real estate and city real personal property taxes and special other assessments (collectively, "Taxes") with respect to the Property 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 date of Closing. Rents If the Closing shall occur before all of the rents from the Property have actually been paid for the month in which the Closing occurs, the apportionment of any such rent shall be upon the basis of such rents actually received by the Seller. Subsequent to the Closing, if any rents for the month of closing, or for prior rental periods, are actually received by Purchaser, promptly after its receipt of such rents, Purchaser shall apply first, to satisfy such tenant’s current due and owing rent obligations relating to the period after the Closing Date; second, to satisfy such delinquent rent obligations relating to the period in which the Closing Date occurred; and third, to satisfy such delinquent rent obligations relating to the period prior to the Closing Date. Purchaser shall make a good faith effort and attempt to collect any such rents not apportioned at the Closing, for the benefit of Seller. Purchaser shall receive credit against the Purchase Price for the amount of any refundable and non-refundable security deposits and fees for which the Seller is accountable (plus accrued interest thereon as required by law), cleaning, administrative, redecorating, pet, key or other incomedeposits and fees (with the exception of application fees) and prepaid rentals for a later calendar month. Upon Closing, Purchaser shall assume Seller’s obligations for such fees as noted herein to the extent Purchaser has received credit against the Purchase Price for such fees. Purchaser will defend, indemnify, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any security deposits or other fees credited to Purchaser. Seller will indemnify and hold Purchaser harmless from and against any demands and claims made by tenants arising out of any security deposits not credited to Purchaser. For utility charges, Seller and Purchaser shall use their best efforts to cause all utility ▇▇▇▇▇▇▇▇ to be closed and billed by the respective utility companies as of the Closing Date in order that utility charges may be separately billed for the periods prior to and after the Closing Date. In the event any such utility charges are not separately billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred during the billing period in which the Closing Date occurs.
(b) If the Closing shall occur before the tax rate or the assessed valuation of the Property is fixed for the then current year, the apportionment of taxes shall be upon one hundred five percent (105%) the basis of the tax rate for the preceding year applied to the latest assessed valuation. Subsequent to the Closing, when the tax rate and the assessed valuation of the Property is fixed for the year in which the Closing occurs, the parties agree to adjust the proration of taxes and, if necessary, to refund or repay such sums as shall be necessary to effect such adjustment; provided, however, if the taxes for such period increase due to a valuation of the Property that is due solely to the sale of the Property to Purchaser, Seller shall not be allocated any portion of said increase resulting from such revaluation. Seller shall pay all special tax assessments, if any, collected by Buyer after pending against the Closing shall be applied first to any amounts due to Buyer and then, Property prior to the extent such rents or Closing.
(c) The monthly installment of principal and interest and any other income relate charges due under the Existing Loan with respect 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 Closing occurs will be prorated as of the Closing Date, Seller will transfer its interest in all escrows held by VHDA to Purchaser, and Purchaser will pay to Seller at Closing, in addition to the Purchase Price, the principal amount of all such escrows, provided that Seller assigns the escrows and VHDA acknowledges the transfer. However, if VHDA does not permit Seller to assign the escrows to Purchaser or the transfer of the escrows is otherwise impractical, Seller shall be entitled to receive the full amount of all escrow accounts, Purchaser shall have no interest in any funds escrowed or deposited by Seller with VHDA, and Purchaser shall be responsible for Buyer's failure to collect such rentals or other income. All security funding all escrows as required by VHDA.
(d) Seller shall be charged, and the Purchaser credited, with interest accrued but unpaid on the indebtedness secured by the First Deed of Trust, together with any other refundable deposits paid by tenants to monthly charges and amounts normally due thereunder through the Closing.
(e) Seller pursuant to tenant leases shall be delivered by certified credited, and Purchaser charged, for the existing balances as of the date of Closing for all escrow, reserve and deposit accounts or funds held for the holder of the First Deed of Trust for real and personal property ad valorem taxes, insurance, replacement reserves, debt service reserves for principal and interest, rebate reserves, and the like, all of which account balances shall be transferred to Buyer Purchaser at Closing.
(f) Any ▇▇▇▇▇ cash maintained at the Closing or, Property for day-to-day operations shall remain the property of Seller at Seller's option, credited to Buyer against the cash portion Closing.
(g) The agreements of the Purchase Price at Seller and Purchaser set forth in this Section 6.3 shall survive the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Berkshire Income Realty Inc), Purchase and Sale Agreement (Berkshire Income Realty Inc)
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 accounts shall be prorated as of the Closing Date and purchased in cash by Purchaser or credited against cash due to Seller or due from Purchaser, as applicable:
(a) Real estate, personal property taxes, ad valorem taxes and sanitary sewer assessments and similar impositions on the Property (the “Taxes”) if any, for the period prior to Closing shall be prorated as of the Closing Date. The Taxes for the year in which the Closing occurs shall be prorated as of the Closing Date based on the assessment for that year if the assessed value and applicable rates are known at the time of Closing. Rents ; otherwise, Taxes shall be prorated on the basis of the most recent ascertainable assessed value and other incomerates.
(b) All prepaid rents and amounts payable under the leases, license agreements, service, operating and maintenance contracts assigned to and assumed by the Purchaser, as set forth herein, to the extent same shall cover periods subsequent to Closing shall be credited to Seller.
(c) Amounts prepaid as fees for business permits and licenses which are permitted by law to be assigned to and credited to Seller.
(d) Refundable deposits paid to Seller as lessor under leases or agreements that Purchaser agrees to assume and advance deposits received by Seller for reservations on and after the date of Closing shall transfer to Purchaser, and Purchaser shall thereupon acquire and assume all of Seller’s rights and obligations, if any, collected by Buyer after in and to such deposits.
(e) All charges for utilities and telephones shall be prorated as of the Closing Date. Purchaser shall transfer all utilities including telephones into its name as of the Closing Date and shall pay all charges therefor from and after Closing.
(f) All Lender Held Escrows shall be applied first to any amounts due to Buyer assumed by Purchaser 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 credited to Seller within ten (10) days after end as 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 AgreementDate.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Sotherly Hotels Lp), Purchase and Sale Agreement (Sotherly Hotels Lp)
Prorations. The (a) Contributor and the Partnership shall jointly prepare not less than five (5) days prior to the Closing Date, a closing settlement statement estimating the closing prorations and adjustments of the following shall items (without duplication of one another or any other provision hereof):
(i) All rents billed for the month in which the Closing Date occurs will be prorated between Buyer and Seller as of 11:59 p.m. local time of on the day immediately preceding the Closing Date (the “Cut-Off Time”) based on the amounts billed and the actual number of days in the month during which the Closing Date occurs; and Contributor will be entitled to such rent for the period on and before the Cut-Off Time, and the Partnership will be entitled to such rent for the period after the Cut Off Time. All rents payable by each tenant whose Lease commences on or after the Closing shall belong entirely to the Partnership, including any pre-paid rents received by Contributor or the Company. Should rent be received subsequent to Closing by the Partnership or the Company which belongs to Contributor, it will be promptly remitted to Contributor, and should rent be received subsequent to Closing by Contributor which belongs to the Partnership, it will promptly be remitted to the Partnership. If the Company collects any rent after the Closing Date from any tenant who was delinquent in the payment of rent as of the Closing Date, such rent shall be applied by the Company (1) first to the reimbursement of any cost or expense (including attorney fees) incurred by the Company or its agents in collecting such rent, (2) second, the remainder to the calendar month in which the Closing Date occurred, (3) third, the remainder to any calendar month or months following the calendar month in which the Closing Date occurred, until the tenant is current with respect to all rents payable after the Closing Date, and (4) finally any remainder to calendar months prior to the month in which the Closing Date occurred.
(ii) An amount equal to all cash tenant security deposits previously received by Contributor (or its predecessors as landlord under the Leases), to the extent not previously returned to such tenants or applied against rent or other obligations of tenants, will be credited to the Partnership.
(iii) Rent and other charges owed or paid by Contributor under any ground lease, if applicable, will be prorated as of the Cut-Off Time.
(iv) Personal property Taxes, gas, electric, steam, water and sewer charges, and other utility charges (utility charges will be prorated based on the last reading of meters prior to Closing performed at Contributor’s request, if possible) as of the Cut-Off Time.
(v) Real property Taxes will be prorated as of the Cut-Off Time.
(vi) Amounts owed or paid by Contributor under the Licenses will be prorated as of the Cut-Off Time.
(vii) Amounts owed or paid by Contributor under any reciprocal easement agreement will be prorated as of the Cut-Off Time.
(viii) Leasing commissions, tenant improvement allowances and other leasing costs for each Lease will be amortized over the term of the Lease in accordance with US GAAP. Leasing costs paid by the Company prior to the Cut-Off Time in excess of the portion of such costs amortized prior to the Cut-Off Time will be treated in accordance with US GAAP and credited to Contributor.
(ix) An amount equal to any utility deposits posted by the Company with utilities as of the Cut-Off Time will be credited to Contributor.
(x) An amount equal to any escrows posted by the Company with the Lenders pursuant to the Loan Documents will be credited to Contributor.
(xi) The principal amount of, and all accrued and unpaid interest on the Loan as of the Cut-Off Time will be credited to the Partnership in computing the Capital Contribution Amount.
(xii) Except as otherwise provided herein, all other cash, including working capital, bank account balances or other cash-equivalents, held by the Company as of the Cut-Off Date will be credited to Contributor (and will continue to be held by the Company).
(xiii) Except as otherwise provided herein, all other liabilities of the Company, current or contingent (e.g., accrued expenses or accounts payable), as of the Cut-Off Time will be credited to the Partnership, to the extent that such liabilities would be required to appear on the Company’s balance sheet prepared in accordance with GAAP.
(xiv) Except as otherwise provided herein, all other pre-paid expenses of the Company as of the Cut-Off Time will be credited to Contributor.
(xv) All amounts for costs of Closing in accordance with Section 5.2.
(xvi) Such other matters as are customarily prorated in similar transactions where the Property is located will be prorated as of the Cut-Off Time.
(b) Prorations and/or adjustments shall be effected at Closing by increasing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to Contributor) or by reducing the Capital Contribution Amount (if the prorations and/or adjustments result in a net credit to the Partnership).
(c) If the actual amounts of the items prorated and/or adjusted are not known as of the Closing Date, the prorations and/or adjustments will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations and/or re-adjustments will be made on the basis of the actual number figures, and a final computation of the Capital Contribution Amount will be made by Contributor and the Partnership not later than the date that is one hundred eighty (180) days elapsed following the end of the calendar year during which Closing occurs.
(d) If the month Closing Date shall occur before the real property tax rate is fixed, the apportionment of Taxes shall be upon the basis of the tax rate for the preceding fiscal year applied to the latest assessed valuation. If, subsequent to the Closing Date, Taxes are determined to be higher or lower than those that were apportioned, a new computation shall be made, and a re-proration or adjustment of the Capital Contribution Amount will be effected.
(e) Percentage rent, if any, payable under any Lease shall be prorated with respect to the full lease year or other applicable full period provided for under the Lease in which the Closing occurs: general occurs on a per diem basis as and special county and city real property taxes and special assessments (collectivelywhen collected. The proration of percentage rent, "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 any, shall be based on the most recent official tax bills or notice of valuation available aggregate sales for the fiscal full lease year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions to applicable full period under the extent permissible for said yearLease, 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 by attributing tenant’s specific periodic sales amount to the period before the Closing or to Date and the period after the Closing, then Buyer from 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 Date and expenses shall be prorated as of then applying the Closingapplicable percentage rent percentage. Rents and other income, if any, Any percentage rent collected by Buyer the Company after Closing (including any percentage rent which is delinquent) and pertaining to (i) an entire lease year or accounting period of a tenant under a Lease which ends on a date prior to the Closing shall be applied first to any amounts due to Buyer and then, Date or (ii) that portion of a lease year or accounting period of such tenant covering a period prior to the extent Closing Date where such rents lease year or other income relate accounting period begins prior to the period ending on or before the ClosingClosing Date and ends thereafter, such rents or other income shall in both cases be paid to Seller within ten (10) days Contributor promptly after end of receipt by 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 AgreementCompany.
Appears in 2 contracts
Sources: Limited Partnership Agreement (Phillips Edison - ARC Shopping Center REIT Inc.), Limited Partnership Agreement (Phillips Edison - ARC Shopping Center REIT Inc.)
Prorations. The following Except for the income and obligations which are the subject of the TBA, Seller shall be prorated entitled to all income earned or accrued and shall be responsible for all liabilities and obligations incurred or payable in connection with the operation of the Stations through the close of business on the day preceding the Closing Date. Buyer shall be entitled to all income earned or accrued and shall be responsible for all liabilities and obligations incurred or payable in connection with the operation of the Stations after the close of business on the day preceding the Closing Date. All overlapping items of income or expense for which Buyer is not entitled to receive or responsible to pay under the TBA shall be apportioned between Seller and Buyer and Seller as of 11:59 p.m. local time the close of business on the day immediately preceding the Closing Date, in accordance with generally accepted accounting principles with the understanding that Buyer shall only have responsibility for the Assumed Obligations. Items to be apportioned include, but are not limited to, the following:
(a) Prepaid expenses arising from payments made for goods or services prior to the Closing Date if all or part of the goods or services have not been received or used prior to the Closing Date (for example, rents paid in advance for a rental period extending beyond the Closing Date);
(b) Liabilities, customarily accrued, arising from expenses incurred but unpaid as of the close of business on the basis of the actual number of days elapsed during the month in which day preceding the Closing occurs: general Date (for example, frequency discounts; rent; and special county and city real sales commissions); and
(c) Personal 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 utility charges relating 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 Stations. Within thirty (or any portion of the Property30) and allocable either to the period before the Closing or to the period days after the Closing, then Buyer and shall deliver to Seller shall adjust a statement setting forth in reasonable detail the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition basis for prorations pursuant 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 Datethis Section, and Buyer shall receive all rents and other income accruingpay to Seller, and or Seller shall pay all other expenses accrued to Buyer, as the case may be, any net amount due as the result of the proration statement (or, if there is a dispute, the undisputed amount thereof). If Seller disputes Buyer's determinations, or, if at any time after delivery of Buyer's statement of determinations any party determines that any item included in the proration is inaccurate or incurredthat an additional item should be included in the prorations, in connection the parties shall confer with regard to the ownership or operation matter and an appropriate adjustment and payment shall be made as agreed upon by them or, if they are unable to resolve the matter, by a firm of Property independent certified public accountants mutually agreeable to the parties, whose decision on or after the Closing Date, all of which rents, other income matter shall be binding and whose fees and expenses shall be prorated as of the Closing. Rents and other income, if any, collected borne equally 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 Agreementthem.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Nassau Broadcasting Corp), Asset Purchase Agreement (Nassau Broadcasting Corp)
Prorations. The following To the extent not included in the Assumed Reserved Liabilities, (i) Sellers shall be prorated between Buyer bear all personal property and Seller as of 11:59 p.m. local time of ad valorem Tax liability with respect to 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 Acquired Assets to the extent permissible for said yearsuch Tax relates to periods prior to the Closing, and (ii) Purchaser shall bear all personal property and ad valorem Tax liability with respect to the Acquired Assets to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) such Tax relates to periods from and allocable either to the period before the Closing or to the period after the Closing, then Buyer in each instance irrespective of the reporting and Seller payment dates of such Taxes. To the extent not included in the Assumed Reserved Liabilities, (i) Sellers shall adjust bear all salaries and other compensation payable to employees or officers who are Transferred Employees, and other recurring payments under Contracts that are Designated Contracts with respect to the actual Taxes between Buyer Acquired Assets to the extent such salaries and Seller, outside of Escrow, as soon as reasonably possible following compensation and recurring payments relate to periods prior to the Closing. In addition , and (ii) Purchaser shall bear all salaries and other compensation payable to employees or officers who are Transferred Employees and other recurring payments under Contracts that are Designated Contracts with respect 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 thenAcquired Assets, to the extent such rents or other income salaries and compensation and recurring payments relate to the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days periods from and 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 To the extent not be concerned with any prorations included in the Assumed Reserved Liabilities, all other property Taxes, ad valorem Taxes, and similar recurring Taxes and fees on the Acquired Assets, and all salaries and other compensation payable to employees or officers who are Transferred Employees, and other recurring payments under Contracts that are Designated Contracts, shall be pro rated for the applicable period between Purchaser and the applicable Seller as of 12:01 a.m. local time on the Closing Date. All payments to be made after by Purchaser or any Seller in accordance with this Section 2.9 shall be made, to the extent then determinable within 5 Business Days of the determination of the Final Closing pursuant Net Current Assets, or to this Agreementthe extent not determinable as of the determination of the Final Closing Net Current Assets, promptly following the determination thereof, with such payments paid to the appropriate Party when due. Each Party shall have the right of reasonable review and approval of the other's property Tax Returns and assessments for which any other Party bears any economic responsibility. The Parties shall reasonably cooperate with respect to any review, contest, or challenge of any Tax Return or assessment. The Parties shall undertake a reconciliation and allocation procedure using the mechanism set out above for the reconciliation and allocation of payroll expenses and costs, and other recurring payments under Contracts that are Designated Contracts; it being understood that the processing and payment of vendor invoices shall be performed in accordance with the procedures set forth in Schedule 2.9 hereto.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Mariner Post Acute Network Inc), Asset Purchase Agreement (Genesis Health Ventures Inc /Pa)
Prorations. The following (a) Non-delinquent real property taxes and any current installments on any improvement assessment liens, ▇▇▇▇▇-▇▇▇▇ bond payments and similar assessments affecting the Real Property and any personal property taxes affecting the Personal Property shall be prorated between based on the most recent available tax bills using a 30-day month and a 360-day year. Any increase in real property taxes and assessments arising out of the sale of the Real Property to Buyer (or its assignee), or a sale or change in ownership after the sale to Buyer, and any supplemental real property taxes and assessments arising out of any construction pertaining to the Real Property completed following the Close of Escrow shall be paid by Buyer when assessed, and Buyer shall indemnify Seller from and against all such taxes. Any supplemental real property taxes or private assessments arising out of any occurrence before the Close of Escrow shall be paid by Seller when assessed to the extent such taxes or assessments are attributable to any period before the Close of Escrow, and Seller shall indemnify Buyer from and against all such taxes and assessments. The parties’ indemnification obligations under this Section shall survive the Close of Escrow.
(b) Non-delinquent rentals and other charges payable by tenants shall be prorated based on the updated Rent Roll delivered pursuant to Section 5(c)(v). Rentals are delinquent when payment thereof is more than thirty (30) days past due as of the Close of Escrow. In addition, rentals from a tenant less than thirty (30) days past due will be considered delinquent if that tenant also has at least one month of rental more than thirty days past due (e.g. if a tenant has not paid its monthly rental for January of a year, and assuming a date after February 1 for the Close of Escrow, due to the January delinquency the rental for the month of February also will be considered delinquent even though it is less than thirty ((30) days past due). Escrow Holder shall credit the amount of security deposits held by Seller as shown on the Rent Roll against the Purchase Price payable by Buyer. Rentals collected by Seller not shown on the updated Rent Roll and delinquent rentals collected by Buyer as hereafter provided shall be prorated by the parties outside of escrow as of the Closing Date and paid to the entitled party as soon as practical from time to time as collected. After the Close of Escrow Buyer shall use its commercially reasonable efforts to collect any delinquent rentals, but Buyer shall not be required to file suit or evict a tenant. If, after making diligent efforts to collect delinquent rentals from any tenant or tenants, or ninety (90) days after the Close of Escrow, whichever first occurs, Buyer elects not to file a legal action against such tenant or tenants, Buyer shall notify Seller, and Seller may file a legal action or actions against such tenant or tenants for the delinquent rentals owing to Seller except that Seller shall not pursue an eviction remedy. Delinquent rentals collected by Buyer, net of the reasonable costs of collection (including attorney’s fees), shall be applied first against rent accruing for the month in which the Closing occurs, then against any other amounts owing Buyer, then against other amounts most overdue. Percentage rent, if applicable and if any, for the rental period including Closing shall be prorated upon receipt, based upon the tenant’s sales for the portion of the lease year allocable to Seller’s and Buyer’s respective ownership of the Property.
(c) No later than two (2) business days before the Close of Escrow, the parties will prorate outside of escrow on an accrual basis all known deposits and operating expenses concerning the Property, refundable deposits held by any governmental agency or utility that will be assigned to Buyer at the Close of Escrow. If any of the foregoing cannot be apportioned at the Closing Date because of the unavailability of the amounts which are to be apportioned, such items shall be apportioned and paid to the entitled party as soon as practicable after the Closing Date, but in no event later than ninety (90) days after the Closing Date. Sewer, gas, electric, telephone and other utility charges, to the extent not reimbursed or paid directly by tenants, shall not be prorated but shall be paid by Seller to the utility company.
(d) Buyer and Seller shall take all steps necessary to effectuate the transfer of all utilities presently in Seller’s name into Buyer’s name as of 11:59 p.m. local time the Close of Escrow. Where necessary, Buyer will post deposits with the utility companies.
(e) All prorations and adjustments shall be made as of 12:00 midnight on 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.
Appears in 2 contracts
Sources: Purchase and Sale Agreement, Purchase and Sale Agreement (RREEF Property Trust, Inc.)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local If the Purchase Price is received by Seller’s depository bank in time of the day immediately preceding to credit to Seller’s account on the Closing Date, on the basis day of the actual number of days elapsed during the month in which the Closing occurs: general shall belong to Buyer 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 all prorations hereinafter provided 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 as of the Property) and allocable either to Closing shall each be made as of the period before end of 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 day 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 If the cash portion of the Purchase Price at is not so received by Seller’s depository bank on the ClosingClosing Date, then the day of Closing shall belong to Seller and such proration shall be made as of the end of the day that is the Closing Date. Escrow Holder In each such proration set forth below, the portion thereof applicable to periods beginning as of Closing shall be credited to Buyer or charged to Buyer as applicable and the portion thereof applicable to periods ending as of Closing shall be credited to Seller or charged to Seller as applicable. The parties acknowledge and agree that the Lease is a fully triple net lease such that Buyer, as tenant, is responsible to pay directly, or reimburse Seller for, any and all expenses incident to the ownership, operation and maintenance of the Premises, in each case as required under the Lease. As a result, the parties shall not be concerned engage in normal and customary prorations. However, at Closing, Buyer shall pay or credit to Seller any and all of the following: (i) all Rent (as defined in the Lease) owing from Buyer, as tenant, to Seller (such amounts, “Rental Amounts”) under the Lease for the portion of the month in which closing occurs occurring prior to Closing and any period prior to Closing to the extent not previously paid by Buyer to Seller, including, but not limited to, any rental delinquencies; and (ii) all sums advanced or paid by Seller for real estate taxes, operating expenses, general assessments or special assessments related to the Premises for any period prior to or subsequent to the Closing to the extent not previously paid or reimbursed by Buyer, including, but not limited to, real estate taxes paid by Seller with respect to any prorations period prior to or subsequent to the Closing and not yet reimbursed. At Closing, Seller shall credit to Buyer any Rental Amounts paid by Buyer that are allocable to be made the period from and after Closing; provided, however, that Seller shall retain all amounts of additional rent previously paid by Buyer to Seller on account of common area maintenance expenses, real estate taxes, insurance expenses or other expenses to the extent incurred by Seller on account of expenses allocable to the Premises prior to or after Closing pursuant to this Agreementand previously paid by Seller.
Appears in 2 contracts
Sources: Lease Agreement (Isis Pharmaceuticals Inc), Lease Agreement (Isis Pharmaceuticals Inc)
Prorations. The following shall be prorated between Buyer (a) For purposes of determining the Purchase Price, personal property 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 Taxes, fees with respect to any Transferable Permits, rents under any leases of real or personal property, or other similar expenses, that are not due or assessed until after the Effective Time but which are attributable in whole or in part to any period commencing prior to the Effective Time, and special assessments (collectively, "Taxes") for any other amounts that by the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration terms 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 this Agreement are to be made for allocated between the maximum available discount or other exemptions to the extent permissible for said yearParties, 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 will be prorated as of the Closing. Rents and other incomeEffective Time, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, with Seller liable to the extent such rents items relate to any period prior to the Effective Time, and Buyer liable to the extent such items relate to any period from and after the Effective Time. If the actual amounts to be prorated are not known, Seller shall include an itemized estimate in the Post-Closing Adjustment Statement based upon the most recent available rates, assessments, valuations, or other income relate to data, and the period ending on or before Parties shall adjust the Closing, such rents or other income shall be amounts 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 orto reflect such prorations. Any prorations shall be made so as to avoid duplication of any amounts, at Seller's optionand will be adjusted to properly take into account any amounts thereof used in determining the Purchase Price.
(b) The proration of all items under this Section 3.4 will be recalculated by Buyer within a reasonable period of time following the date upon which the actual amounts become available to Buyer. Buyer will notify Seller of such recalculated amounts, credited and will provide Seller with all documentation relating to Buyer against the cash portion such recalculations, including tax statements and other notices from third parties. The Parties will make such payments to each other as are necessary to reconcile any estimated amounts prorated as of the Purchase Price at Effective Time with the Closing. Escrow Holder shall not be concerned with any prorations that are final amounts to be prorated. Seller and Buyer agree to furnish each other with such documents and other records as may be reasonably requested in order to confirm all proration calculations made after the Closing pursuant to this AgreementSection 3.4.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Algonquin Power & Utilities Corp.), Asset Purchase Agreement (Atmos Energy Corp)
Prorations. The following shall be prorated between Buyer items relating to the Assets and Seller as of 11:59 p.m. local time the ownership and operation 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") Generating Assets will be allocated pro rata per diem for the tax year that includes the date of Closing, with Seller liable for such items to the extent they are allocable to the period then prior to the date of the Closing and Purchaser liable for such items to the extent they are allocable to periods beginning with and subsequent to the Closing:
(a) Property Taxes on or with respect to the Assets.
(b) Rents, additional rents, Taxes, to the extent normally adjusted in effect connection with similar transactions, and insurance premiums other items payable by Seller under the Real Property Leases and the Business Contracts.
(but only c) The amount of rents, Taxes and charges for sewer, water, telephone, electricity and other utilities relating to the Real Property and the real property subject to the Real Property Leases.
(d) All other items (excluding other Taxes) normally adjusted in connection with similar transactions. Except as otherwise agreed by the parties, the net amount of all such prorations will be settled and paid as of date of the Closing. At least ninety (90) days prior to date of the Closing, Seller will provide Purchaser with a reasonably detailed schedule showing a calculation of the estimated prorations as if Buyer the Closing were occurring on such date. If the Closing shall occur before a real estate Tax rate is assuming Seller's insurance policy or policies). Proration fixed, the apportionment of Taxes shall be based upon the Tax rate for the preceding year applied to the latest assessed valuation and such Taxes shall be reprorated upon the request of Seller, on the most recent official tax bills one hand, or notice Purchaser, on the other hand, made within sixty (60) days after the date that the actual amounts become available. Seller and Purchaser agree to furnish each other with such documents and other records as may be reasonably requested in order to confirm all adjustment and proration calculations made pursuant to this Section 1.06. To the extent required by any approval of valuation available for the fiscal year in which transfer of the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions FERC project licenses related 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 apportionmentsHydro Units, Seller shall receive all rents and other income accrued, and shall agrees to pay all other expenses annual charges 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 under such licenses 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.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Pp&l Inc), Asset Purchase Agreement (Pp&l Resources Inc)
Prorations. The following Except to the extent otherwise specifically provided for herein and except to the extent the Book Value of such Liabilities are not deducted from the Aggregate Purchase Price in accordance with Section 2.03(a), Schedule 2.03(a)(1) and Schedule 2.03(a)(2), (i) all payments under or pursuant to any Assumed Contract (including document custodial arrangements and applicable insurance policies) or Contract for the Seller Licensed Intellectual Property, (ii) all items of income and expense with respect to the Owned Real Property and the Leased Real Property, and (iii) all real and personal property Taxes related to the Purchased Assets, whether or not payable after the Second Closing Date, shall be prorated between Buyer the Sellers and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, Purchaser on the basis of a 365 day year, or for contracts payable on a monthly basis on the actual basis of a 30 day month, and the number of days elapsed during and days remaining in the month in which applicable period through the end of the Second Closing occurs: general Date. With respect to the real and special county and city real personal property taxes and special assessments (collectivelyTaxes, "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 such proration shall be based on the most recent official tax bills or notice assessments of valuation available the real property and the personal property located thereon for the fiscal year in which Taxing period(s) prior to the Second Closing occurs, with due allowance Date and the then applicable Tax rates. With respect to be made any products sold (or services rendered) pursuant to any Assumed Contract or Contract for the maximum available discount or other exemptions Seller Licensed Intellectual Property, the Sellers and Purchaser shall use commercially reasonable efforts to arrange for vendors to ▇▇▇▇ the extent permissible for said yearSellers directly, through and to including 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 Second 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 Purchaser directly after the Second Closing Date. To the extent that vendors ▇▇▇▇ the Sellers after the Second Closing Date for any such products or services provided after the Second Closing Date, all of which rentsthe Sellers shall forward such bills to Purchaser, other income and expenses Purchaser shall be prorated as of pay such bills when due. To the Closing. Rents and other income, if any, collected by Buyer extent that vendors ▇▇▇▇ Purchaser after the Second Closing Date for any such products or services provided before the Second Closing Date, Purchaser shall be applied first forward such bills to any amounts the Sellers, and the Sellers shall pay such bills when due to Buyer and then, to the extent such rents bills are not otherwise included in the calculation of the Aggregate Purchase Price or other income relate otherwise included in the True-up Payment. A final determination of all amounts prorated pursuant to this Section 2.03(g) shall occur at the time Purchaser prepares and delivers to the period ending on Sellers the Post-Closing Statement in accordance with Section 2.04, and any payment required by the Sellers or before the Closing, Purchaser pursuant to such rents or other income determination (“True-up Payment”) shall be paid to Seller within ten (10) days after end of the month reflected 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 AgreementAdjustment.
Appears in 2 contracts
Sources: Asset Purchase Agreement, Residential Servicing Asset Purchase Agreement (Nationstar Mortgage Holdings Inc.)
Prorations. The following All current rent, reimbursements and other income from the Property and all current taxes, assessments, utilities, maintenance charges and similar expenses of the Property, determined using the accrual method of accounting, shall be prorated between Buyer Optionor and Seller Optionee as of 11:59 p.m. local time the Closing Date and, to the extent of information then available, such prorations shall be made at the day immediately preceding Closing. Optionor and Optionee shall use their best efforts prior to the Closing Date to prepare a schedule of prorations covering as many items to be prorated as practicable so such prorations can be made at the Closing. Such prorations shall be adjusted, if necessary, and completed after the Closing as soon as final information becomes available. Optionor and Optionee agree to cooperate and to use their best efforts to complete such prorations no later than thirty (30) days after the Closing Date, except for any annual reconciliation of expense reimbursements payable by tenants which cannot be completed until the final accounting for the year has been prepared. Monthly income and expense items shall be prorated on the basis of a thirty (30) day month. Such income and expenses of the actual number of days elapsed during Property for the month in which period before the Closing occurs: general and special county and city real property taxes and special assessments (collectively, "Taxes") Date shall be for the tax account of Optionor and such income and expenses for the period then in effect on and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes after the Closing Date shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which account of Optionee. Security deposits, other refundable deposits, and similar prepaid rents shall be credited to Optionee and charged to Optionor at the Closing occursClosing. Optionor shall pay all taxes, with due allowance to be made assessments, invoices for the maximum available discount goods furnished or services supplied, and other exemptions expenses relating 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 that are allocable either to the period before the Closing or Date. Optionor shall immediately pay 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 Optionee all rents and other income accrued, and shall pay all other expenses accrued received by Optionor either before or incurred, in connection with the ownership or operation of Property before after 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 Date that are allocable to the ownership or operation of Property period on or after the Closing Date, all of which rents, other income and expenses . Optionor shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after solely responsible for collecting rents or charges that became due from tenants before the Closing Date. If any such rents or charges are received by Optionee, then Optionee shall pay such rents or charges to Optionor but all money received by Optionee shall be applied first to any amounts rent that accrues or becomes 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 AgreementDate.
Appears in 2 contracts
Sources: Option Agreement (Archon Corp), Option Agreement (Archon Corp)
Prorations. The following All utility accounts at the Facilities shall be read as of the Effective Time, and Seller shall be responsible for all utility charges prior to such reading and Buyer shall be responsible for all utility charges primarily related to the Business thereafter. All rent and other charges due under the Contracts shall be prorated between Seller and Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding Effective Time. Except with respect to real and personal property Taxes subject to Tax abatement or incentive arrangements which are allocated in accordance with the Closing Datefollowing sentence, on the basis of the actual number of days elapsed during the month in which the Closing occurs: general real and special county personal property Taxes, assessments and city real property taxes and special assessments (collectivelysimilar items, "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 occursany, due with due allowance to be made for the maximum available discount or other exemptions respect 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 Assets shall be prorated as of the Closing. Rents Effective Time, and other incomeall such Taxes, if any, collected by Buyer after assessments and similar items allocable to any period prior to the Closing Effective Time shall be applied first paid by Seller, and all such Taxes, assessments and similar items allocable to any amounts due to Buyer and then, period subsequent to the extent Effective Time shall be paid by Buyer. With respect to real and personal property Taxes which are subject to Tax abatement or incentive arrangements, the portion of such rents or other income relate Taxes that shall be allocable to the period ending on or before as of the Closing, such rents or other income Effective Time shall be paid to Seller within ten (10) days after end computed as if such period ended and the books of the month in which such amounts Business were collected. Buyer closed each as of the Effective Time; provided, however, the foregoing shall incur no obligation not relieve Seller of any liability or responsibility under Section 11.13 and shall not apply if and to Seller for Buyer's failure the extent the result would be to collect such rentals or other income. All security and any other refundable deposits paid by tenants allocate 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 period after the cash Effective Time more than a pro rata portion of the Purchase Price at amount of any such Tax determined as if there were no abatement or incentive for any portion of the Closingactual Tax period. Escrow Holder shall not be concerned with Notwithstanding any prorations that are to be made after the Closing pursuant to other provision of this Agreement, (i) if Seller pays any amount allocated to Buyer under this Section 17 Buyer will reimburse Seller upon demand for the amount paid to the extent it is not reflected as an asset on the final Statement of Net Working Capital; and (ii) if Buyer pays any amount allocated to Seller under this Section 17 Seller will reimburse Buyer upon demand for the amount paid to the extent it is not reflected as a liability on the final Statement of Net Working Capital. Notwithstanding the above, there shall be no duplication of adjustments reflected in the final Statement of Net Working Capital.
Appears in 2 contracts
Sources: Asset Purchase Agreement, Asset Purchase Agreement (Smithfield Foods Inc)
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 DateAll current rent (including without limitation percentage rent), 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 (collectivelyestate taxes, "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 occurscommon area charges, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearutility charges, and to other obligations of Seller under the extent - 7 - Leases or income or obligations of Seller under the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion of the Property) Subleases and allocable either to the period before the Closing or to the period after the ClosingLicenses, 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 ClosingEffective Time with respect to each Assumed Lease Store in accordance with the payment terms of the Lease applicable thereto (collectively the "Prorated Charges"). Rents and other incomeWhenever possible, if any, collected by Buyer after the Closing such prorations shall be applied first based on actual, current payments by or income to any amounts due to Buyer Seller and then, to the extent such rents or other income relate actual amounts are not available, such prorations shall be estimated as of the Effective Time for the applicable Store based on actual amounts for the most recent comparable billing period and such prorations shall be final (absent manifest error) without further reconciliations. Notwithstanding anything to the period ending on or before contrary in this Agreement, for any Lease for which a proration is not set forth in a Lease, for the ClosingNew Leases, such rents or other income and for the Fixed Assets, the property taxes shall be paid to prorated on a "calendar year or lien basis" for any such Assumed Leased Store, Owned Store or Fixed Asset not located in ▇▇▇▇▇ County, and on a "last tax due date basis" for any such Assumed Leased Store, Owned Store or Fixed Asset located in ▇▇▇▇▇ County. Seller within shall pay the Buyer a pro rata amount of percentage rent payable by Buyer under a Lease for an Assumed Lease Store for the lease year including the Effective Time for such Lease, not later than ten (10) business days after end prior to the date that Buyer is obligated to pay such percentage rent. Seller's prorated share shall be determined by multiplying (A) a fraction, the numerator of which is the amount of Seller's gross annual sales at such Assumed Lease Store from the first day of such lease year to (but not including) the Effective Time for the applicable Store, and the denominator of which is the sum of Buyer's and Seller's gross annual sales at such store for the entire lease year, times (B) the amount of percentage rent actually due under the Lease for such Assumed Lease Store. Seller, upon the request of Buyer, shall promptly provide the Buyer such information as Buyer shall be required to submit to landlords under the Leases in connection with the payment of percentage rent with respect to an Assumed Lease Store. Notwithstanding any of the month foregoing, the fixed percentage rent set out in which such amounts were collected. Buyer shall incur no obligation the Fourth Amendment to Seller Lease 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 Store #6103 of $106,145.40 shall be delivered by certified funds to Buyer at the Closing or, at Seller's option, credited to Buyer against the cash portion prorated on a per diem basis as of the Purchase Price at Effective Time for the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementapplicable Store based on a lease year commencing July 1, 2007, and ending June 30, 2008.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Spartan Stores Inc), Asset Purchase Agreement (Spartan Stores Inc)
Prorations. The following shall (a) Ad valorem taxes and assessments (whether for real estate or personal property) against the Property will be prorated between Buyer and Seller at Closing as of 11:59 p.m. local time the Closing Date based on the tax bills for the year of the day immediately preceding Closing. Buyer will receive at Closing a credit against the Purchase Price in an amount equal to the portion of the taxes and assessments on the Property from the beginning of the current year to the Closing Date. If Closing occurs before that year's tax bills are available, 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 proration will be based on the most recent official latest tax bills or notice of valuation available rate applied to the latest unappealed tax value. If an estimated proration is made, then after the taxes and assessments for the fiscal year in which the Closing occursoccurs are finally assessed, with due allowance within 30 days after demand, Buyer shall refund to be made for Seller any amount overpaid by Seller or Seller shall pay to Buyer the maximum available discount or other exemptions to amount of any deficiency in the extent permissible for said year, proration. Buyer shall pay all taxes and to the extent the tax bills do not accurately reflect the actual Taxes assessed assessments against the Property before they become delinquent.
(or any b) All income and expenses of the Real Property and Improvements (other than ad valorem taxes and assessments) will be prorated at Closing as of the Closing Date on an accrual basis. All rents actually prepaid for a 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 term 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 offset against the cash portion of Purchase Price. All other income and expense items subject to proration pertaining to the Purchase Price period prior to the Closing Date will be allocated to and paid by Sellers and all income and expense items subject to proration pertaining to the period starting on the Closing Date will be allocated to and paid by Buyer. Seller is responsible for Lease commissions due Seller's employees and locator fees for Leases under which the tenant moves into a unit prior to the Closing Date. Buyer is responsible for locator fees for Leases under which the tenant moves into a unit on or after the Closing Date. All application fees which are not prepaid security deposits shall be retained by Seller. Any income payable in connection with any Service Contract will be prorated, but no lump sum or up front payments paid to Seller with respect to any Service Contract will be prorated. Rent will be prorated based on the Rent Roll provided by Seller at the Closing. Escrow Holder No later than 3 business days prior to the Closing Date, Buyer and each Seller shall not be concerned with mutually approve and provide to Closing Agent a schedule of prorations in as complete and accurate a form as possible. No later than 60 days after Closing, Seller and Buyer shall make appropriate post-closing adjustments to the prorations of income and expenses but in no event will any prorations that are to readjustment be made after the 60th day after the Closing pursuant Date, other than a readjustment of ad valorem taxes and assessments.
(c) All Deposits paid as refundable security for rent, cleaning, pet deposits, or any other purposes will be paid to Buyer at Closing and the obligation, if any, to refund the cash deposits to tenants is assumed by Buyer. Except as provided in SECTION 6.3(d), no non-refundable deposits or fees paid by tenants shall be paid or payable to Buyer.
(d) Any amounts of so-called "hassle free move-out" payments paid to Seller for current leases on the Properties shall be equally split between Seller and Buyer and, at Closing, Seller shall pay to Buyer its share thereof.
(e) All deposits and escrows made by Seller with the respective Lenders will be delivered to the Sellers at Closing and will be retained by the Seller or will be credited to the Seller at Closing.
(f) The obligations of Sellers and Buyer under this AgreementSECTION 6.3 survive the Closing.
Appears in 2 contracts
Sources: Contract of Sale (Education Realty Trust, Inc.), Contract of Sale (Education Realty Trust, Inc.)
Prorations. The following (a) All collected rents and other income and all operating expenses with respect to the Property for the month in which the Closing occurs, and real estate and personal property taxes and other assessments with respect to the Property for the year in which Closing occurs, shall be prorated between Buyer and Seller as of 11:59 p.m. local time the close of business 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 Rent collected by Purchaser 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 current rent due, with any additional amount owed to Buyer Seller to be remitted to Seller within 10 days of receipt. Purchaser shall make a good faith effort to collect any back rents owed to Seller, but shall not be obligated to initiate any litigation to collect such rents. If the amount of any item to be adjusted is not ascertainable on the Closing Date, the item shall be prorated by the Purchaser and then, Seller based on the best available information. Those items shall be reprorated as promptly after the Closing as possible. Any errors or omissions in computing the prorations at the Closing shall be corrected promptly. The obligation to the extent such rents or other income relate to the reprorate shall survive for a period ending on or before of six (6) months after the Closing, such rents or other income . Any payments due as a result of reproration shall be paid to Seller within ten (10) days after end of the month reproration.
(b) If the Closing occurs before the tax ▇▇▇▇ for the year of closing is available, taxes shall be prorated using the taxes paid in which such prior year. After the tax ▇▇▇▇ is available, the taxes shall be reprorated at the request of the Seller or Purchaser based on the tax ▇▇▇▇ for the year of closing. Any amounts were collecteddue as a result of the reproration shall be paid within ten (10) days of the reproration. Buyer Special assessment liens, if any, that are a charge or lien on the Property or that are due and payable at the time of Closing shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security and any other refundable deposits be paid by tenants to Seller pursuant to tenant leases Seller.
(c) To the extent possible, Purchaser shall be delivered by certified funds to Buyer at responsible for arranging all utility service and insurance coverage for the Project in its own name commencing as of 12:01 a.m. on the Closing or, at Seller's option, credited Date. Seller shall be responsible for all utility charges accrued prior to Buyer against the cash portion Closing Date and Seller shall receive a refund of the Purchase Price at the Closingall utility deposits and insurance premiums. Escrow Holder shall If a change in utility service cannot be concerned with any prorations that are to be made after effected on the Closing pursuant to this AgreementDate, utility charges will be estimated and prorated as provided in Section 4.8(a).
Appears in 2 contracts
Sources: Assignment and Assumption of Agreement for Purchase and Sale of Property (Boston Capital Real Estate Investment Trust Inc), Assignment and Assumption of Agreement for Purchase and Sale of Property (Boston Capital Real Estate Investment Trust Inc)
Prorations. The 6.7.1. Real property taxes, assessments, rents, security deposits, and CAM expenses shall be prorated through Escrow between Buyer and Seller as of Close of Escrow. Rents, security deposits and CAM expenses shall be approved by Buyer prior to Close of Escrow. Rents and other charges under the Lease that are delinquent as of the Close of Escrow will not be prorated, and rents and other amounts received by Buyer on or after the Close of Escrow in respect of the Lease will be applied in the following order: (i) to Buyer's actual out-of-pocket costs of collection incurred with respect to the collected amounts; (ii) to rents due under the Lease for the month in which the payment is received by Buyer; (iii) to rents attributable to any period after the Close of Escrow that are past due on the date of receipt; and (iv) to rents and other charges delinquent as of the Close of Escrow (and Buyer promptly will remit these amounts to the Seller). Buyer will use commercially reasonable efforts to collect any delinquent rents, provided that Buyer has no obligation to institute legal proceedings, including an action for unlawful detainer, against the Tenant. In no event will Seller commence or maintain any action after the Close of Escrow against the Tenant to collect any sums purportedly owed by the Tenant to Seller. Tax and assessment prorations shall be based on the latest available tax ▇▇▇▇. If, after Close of Escrow, Buyer receives any further or supplemental tax ▇▇▇▇ relating to any period prior to Close of Escrow, or Seller receives any further or supplemental tax ▇▇▇▇ relating to any period after Close of Escrow, the recipient shall promptly deliver a copy of such tax ▇▇▇▇ to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax ▇▇▇▇ Buyer and Seller shall deliver to the taxing authority their respective shares of such tax ▇▇▇▇, prorated as of Close of Escrow.
6.7.2. All leasing commissions owing and tenant improvements with respect to the Property transactions entered into prior to execution of this Agreement shall be paid by Seller, and Seller shall indemnify and hold Buyer harmless for Lease commission claims brought against the Property arising therefrom. All leasing commissions for new leases executed after the date of this Agreement shall be prorated between Buyer and Seller as their respective periods of 11:59 p.m. local time ownership bear to the primary term of the day immediately preceding new lease.
6.7.3. Seller agrees to indemnify and hold Buyer harmless of and from any and all liabilities, claims, demands, suits, and judgments, of any kind or nature, including court costs and reasonable attorneys' fees (except those items which under the Closing Dateterms of this Agreement specifically become the obligation of Buyer), on brought by the basis of the actual number of days elapsed during the month in which the Closing occurs: general Tenant or any other third parties 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 events occurring on or before the Closingdate of closing and which are in any way related to the Property, such rents or other income shall be paid and all expenses related thereto, including but not limited to Seller within ten (10) days after end of the month in which such amounts were collectedcourt costs and attorneys' fees.
6.7.4. Buyer shall incur no obligation agrees to indemnify and hold Seller for Buyer's failure to collect such rentals harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or other income. All security nature, including court costs and reasonable attorneys' fees, brought by the Tenant or any other refundable deposits paid by tenants third parties and based on events occurring subsequent to Seller pursuant the date of closing and which are in any way related to tenant leases shall be delivered by certified funds to Buyer at the Closing orProperty, at Seller's optionand all expenses related thereto, credited to Buyer against including, but not limited to, court costs and attorneys' fees, provided, that the cash portion of the Purchase Price at the Closing. Escrow Holder foregoing indemnity shall not be concerned with construed to limit the effect of, nor shall it be applicable to the subject matter of, any prorations that are to be made after of Seller's representations and warranties expressed in this Agreement or in the Closing pursuant to this Agreementclosing documents delivered by Seller.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (T Reit Inc), Purchase and Sale Agreement (NNN 2003 Value Fund LLC)
Prorations. The following prorations relating to the Purchased Assets and the ownership and operation of the Business set forth in this Section 4.6 will be made as of the Closing. The prorations shall be estimated and prepared by Sellers and included in the Estimated Closing Statement and the Final Closing Statement delivered to Buyer pursuant to Section 4.1 and Section 4.3, respectively (in each case to the extent not already reflected in the Estimated Closing Net Working Capital).
(a) Utility meters will be read, to the extent that the utility company will do so, during the daylight hours on the Closing Date (or as near as practicable prior thereto), with charges to that time paid by Sellers and charges thereafter paid by Buyer. Prepaid utility charges shall be adjusted on the Estimated Closing Statement and Final Closing Statement. Charges for utilities which are un-metered, or the meters for which have not been read on the Closing Date, will 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 Sellers as of the Closing. Rents Sellers or Buyer, as appropriate, shall, upon receipt, submit a copy of the utility ▇▇▇▇▇▇▇▇ for any such charges to the other party and such receiving party shall pay its pro-rata share of such charges to the submitting party within seven (7) days from the date of any such submission (to the extent not already reflected in the Estimated Closing Net Working Capital).
(b) All income and expenses pursuant to the Assumed Contracts will be prorated between Buyer and Sellers as of the Closing Date on the Estimated Closing Statement and Final Closing Statement. Sellers shall receive a credit on the Estimated Closing Statement and Final Closing Statement for (i) the amount of any prepaid rents related to periods from and after the Closing, and (ii) security deposits, or other incomedeposits previously paid by Sellers under the Assumed Contracts, if any, less any such amounts paid to and collected by Sellers under the Assumed Contracts. Any amounts received by Buyer under the Assumed Contracts related to any period prior to the Closing shall be promptly paid to Sellers. Any amounts received by Sellers under the Assumed Contracts related to any period 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 promptly paid to Seller within ten (10) days after end of Buyer. Except as otherwise specified in this Section 4.6 or agreed by the month in which such amounts were collected. Buyer shall incur no obligation parties or with respect to Seller for Buyer's failure adjustments 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 made pursuant to Section 4.3, the Closing. Escrow Holder shall not net amount of all such prorations will be concerned with any prorations that are to be made after settled and paid on the Closing pursuant to this AgreementDate.
Appears in 2 contracts
Sources: Equity Interest Purchase Agreement (CAESARS ENTERTAINMENT Corp), Equity Interest Purchase Agreement (Penn National Gaming Inc)
Prorations. The following Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the Business and operation of the Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local the Closing Date, with Seller liable for such items to the extent such items relate to any time period prior to the Closing Date, and Buyer liable for such items to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days). The Base Purchase Price shall be increased to the extent Buyer will benefit financially due to Seller's payment prior to the Closing Date of the portion of any such item allocable to Buyer, and (except with respect to the items addressed in clause (a) below) shall be decreased to the extent Seller will benefit financially due to Buyer's payment on or after the Closing Date of the portion of any such item allocable to Seller. The items subject to proration include the following:
(a) Subject to Section 6.10(b), personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the Business and operation of the Assets;
(b) rent, Taxes (other than Income Taxes) and all other items (including prepaid services or goods not included in Inventories) payable by or to Seller under any of the Assigned Agreements to the extent not included in the account payables of the Business outstanding as of the day immediately preceding the Closing Date;
(c) any permit, 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 (collectivelylicense, "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 occursregistration, with due allowance to be made for the maximum available discount compliance assurance fees or other exemptions fees with respect to any Transferable Permit or other Asset;
(d) sewer rents and charges for water, telephone, electricity and other utilities with respect to the Assets;
(e) rent and Taxes payable by or to Seller under the Real Property Leases assigned to Buyer to the extent permissible for said year, and not included in the account payables of the Business outstanding as of the day immediately preceding the Closing Date;
(f) deposits made by Seller to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property transferred to Buyer;
(or any portion of the Propertyg) and allocable either to the period before the Closing or to the period after the Closing, then Buyer and prepaid expenses paid by 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 transferred to Buyer; and
(h) petty cash held locally for the period ending on or before the Closing, such rents or other income shall be paid to Seller within ten (10) days after end benefit of the month in which such amounts were collected. Buyer shall incur no obligation Business ▇▇ ▇▇e extent transferred 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.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Citizens Communications Co), Asset Purchase Agreement (Citizens Communications Co)
Prorations. The (a) On the Closing Date, or as promptly as practicable following the Closing Date, but in no event later than one hundred and twenty (120) calendar days thereafter, the water, gas, electricity and other utilities, local business or other license fees to the extent assigned and other similar periodic charges payable with respect to the Acquired Assets shall be prorated between Buyer Seller, on the one hand, and Seller Buyer, on the other hand, effective as of 11:59 p.m. local time of the day immediately preceding Effective Time with Seller being responsible for amounts related to the period prior to but excluding the Closing Date and Buyer being responsible for amounts related to the period on and after the Closing Date. The Parties shall use commercially reasonable efforts to cause utility meter readings to be determined as of the Effective Time or as close thereto as reasonably practicable; provided, however, that if a Party’s proration for a particular amount owed under this Section 2.4 cannot be determined due to the unavailability of the necessary information on the appropriate invoice or remittance statement, then the proration shall be calculated on a per day basis of using the actual number of days elapsed during in the month in which respective Party’s period.
(b) All income, proceeds and receipts attributable to the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyoperation, "Taxes") for use, ownership, or otherwise of the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes Acquired Assets prior to the Effective Time shall be based on the most recent official tax bills or notice property 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 Seller and to the extent permissible received by Buyer or its Affiliates, Buyer shall promptly and fully disclose, account for said yearand transmit same to Seller. All income, proceeds and receipts attributable to the operation, use, ownership, or otherwise of the Acquired Assets on and after the Effective Time shall be the property of Buyer and to the extent received by Seller or its Affiliates, Seller shall promptly and fully disclose, account for and transmit same to Buyer. In addition, all invoices, costs, expenses, disbursements and payables attributable to the Acquired Assets prior to the Effective Time shall be the sole obligation of Seller, and Seller shall promptly pay, or if paid by Buyer, Seller shall promptly reimburse Buyer for same. All invoices, costs, expenses, disbursements and payables attributable to the Acquired Assets on and after the Effective Time shall be the sole obligation of Buyer, and Buyer shall promptly pay, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property paid by Seller, Buyer shall promptly reimburse Seller for same.
(or any portion c) The provisions of the Property) and allocable either to the period before the Closing or to the period after this Section 2.4 shall survive 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.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Western Refining, Inc.), Asset Purchase Agreement (Western Refining, Inc.)
Prorations. The following 6.7.1. Real property taxes, personal property taxes, assessments, rents, and CAM expenses shall be prorated through Escrow between Buyer and Seller as of Close of Escrow. All security deposits shall be paid over to Buyer. Rents and CAM expenses shall be approved by Buyer prior to Close of Escrow. Any delinquent rents attributable to periods prior to the Close of Escrow and which are collected by Buyer or Seller shall be retained by or paid to Seller; provided, however, that any amounts collected by Buyer or Seller shall be first applied to any rents then due to Buyer and, if collected by Seller, remitted to Buyer for such purpose. Seller shall have the right to pursue any Tenant for delinquent rent, but shall not (a) cause Tenant to be delinquent for their current rent or become financially unstable or (b) have the right to seek eviction of the Tenant by unlawful detainer or other means. Tax and assessment prorations shall be based on the latest available tax ▇▇▇▇. If after Close of Escrow either party receives any further or supplemental tax ▇▇▇▇ relating to any period prior to Close of Escrow, the recipient shall promptly deliver a copy of such tax ▇▇▇▇ to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax ▇▇▇▇ Buyer and Seller shall deliver to the taxing authority their respective shares of such tax ▇▇▇▇, prorated as of Close of Escrow. All prorations shall be based on a 360-day year.
6.7.2. All leasing commissions owing and tenant improvements with respect to the Real Property entered into prior to execution of the Agreement including, but not limited to, commissions for lease renewals and expansion options, shall be paid by Seller, and Seller shall indemnify and hold Buyer harmless for lease commission claims brought against the Real Property arising therefrom. All leasing commissions and tenant improvement costs for new Leases executed after the date of this Agreement shall be prorated between Buyer and Seller as their respective periods of 11:59 p.m. local time ownership bears to the primary term 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 incurrednew Lease subject, 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 thenevents, to the extent such rents prior approval of said Leases as herein provided by Buyer pursuant to Paragraph 7.3.
6.7.3. Seller agrees to indemnify and hold Buyer harmless from any and all liabilities, claims, demands, suits, and judgments, of any kind or other income relate to nature, including court costs and reasonable attorney fees (except those items which under the period ending terms of this Agreement specifically become the obligation of Buyer), brought by third parties and based on events occurring on or before the Closing, such rents or other income shall be paid Close of Escrow and which are in any way related to Seller within ten (10) days after end of the month in which such amounts were collectedProperty.
6.7.4. Buyer shall incur no obligation agrees to indemnify and hold Seller for Buyer's failure harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or nature, including court costs and reasonable attorneys fees, brought by third parties and based on events occurring subsequent to collect such rentals or other income. All security the Close of Escrow and which are in any other refundable deposits paid by tenants way related 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 AgreementProperty.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (G Reit Inc), Purchase and Sale Agreement (G Reit Inc)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time Notwithstanding anything to the contrary in any of the day immediately preceding the Closing Date, on the basis CAPCO Agreements:
(a) The Parties agree that all 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 (collectivelyitems normally prorated, "Taxes") for the tax period then in effect and insurance premiums including those listed below (but only if Buyer is assuming Seller's insurance policy or policiesnot including Income Taxes). 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 relating to the extent permissible for said year, business and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion operation 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 Exchange Assets shall be prorated as of the Closing. Rents Exchange Closing Date, with each Conveying Party remaining liable for such items to the extent such items relate to any time period prior to the Exchange Closing Date, and the Party that is acquiring such Conveying Party's Exchange Assets under this Agreement to be liable for such items to the extent such items relate to periods commencing with the Exchange Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days):
(i) personal property, real estate and occupancy Taxes, assessments and other incomecharges, if any, collected on or with respect to the business and operation of the Exchange Assets;
(ii) rent, Taxes and all other items (including prepaid services or goods not included in Inventories) payable by Buyer or to a Conveying Party under any of the Assigned Agreements conveyed by that Party;
(iii) any permit, license, registration, compliance assurance fees or other fees with respect to any Transferable Permit;
(iv) sewer rents and charges for water, telephone, electricity and other utilities with respect to the Exchange Assets;
(v) rent and Taxes payable by a Conveying Party under the Real Property Leases assigned to the Party that is acquiring such Real Property Leases under this Agreement; and
(vi) insurance premiums paid on or with respect to the business and operation of the Exchange Assets.
(b) In connection with the prorations referred to in Section 5.4 (a) above, in the event that actual figures are not available at the Exchange Closing Date, the proration shall be based upon the actual Taxes or other amounts accrued through the Exchange Closing Date or paid for the most recent year (or other appropriate period) for which actual Taxes or other amounts paid are available. Such prorated Taxes or other amounts shall be re-prorated and paid to the appropriate Party within sixty (60) days of the date that the previously unavailable actual figures become available. The prorations shall be based on the number of days in a year or other appropriate period (i) before the Exchange Closing Date and (ii) including and after the Exchange Closing shall Date. The Parties agree to furnish each other with such documents and other records as may be applied first reasonably requested in order to any amounts due to Buyer confirm all adjustment 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 proration calculations made after the Closing pursuant to this AgreementSection 5.4.
Appears in 2 contracts
Sources: Generation Exchange Agreement (Dqe Inc), Generation Exchange Agreement (Duquesne Light Co)
Prorations. The following Escrow Holder will prorate between the parties, in Cash, to the Close of Escrow, an amount calculated by multiplying the Total Sales Percentage by each of the following: (a) 2012 state, County, city and special district (if any) real property taxes, special taxes and assessments for the Project based on the latest information available to Escrow Holder (i.e., $4,205,805 real property taxes for the 2012 tax year calculated using the total assessed value provided in the 2012 First Pass Assessment (i.e., $25,953,750) and the effective tax rate for 2011), (b) rental payments, other revenues and expenses and (c) any other items Seller and Buyer mutually instruct Escrow Holder to prorate prior to the Close of Escrow. All rental payments and other tenant charges and additional rents received by Buyer from a tenant after the Closing Date shall be applied first to collection costs and then to the most recently accrued obligation of such tenant. After application as set forth above, Buyer shall remit to Seller on the Final Adjustment Date (as defined below) that portion of rentals and other tenant charges and additional rents received after the Closing Date attributable to periods prior to the month of Closing, and if attributable to the month of Closing, Seller’s share thereof in accordance with the proration set forth above; provided, however, that any rent received from the United States of America, the Department of Homeland Security and Department of Justice, and Internal Revenue Service Department of Treasury, Bureau of Alcohol, Tobacco and Firearms shall be deemed to be payment for the prior month’s outstanding rent due. In the event any prorations made under this Agreement shall prove to be incorrect for any reason, then any party shall be entitled to an adjustment to correct the same. Any item which cannot be finally prorated between Buyer and Seller as of 11:59 p.m. local time because of the day immediately preceding the Closing Date, unavailability of information shall be tentatively prorated on the basis of the actual number of days elapsed during best data then available and re-prorated when the month information is available. If any items to be adjusted are not determinable at Closing (including, but not limited to, items set forth in which this Article 5), the adjustment shall be made subsequent to the Closing occurs: general and special county and city real property within thirty (30) days following the final determination of 2012 taxes and special assessments (collectively, "Taxes") for the tax period then in effect and insurance premiums Project (but only if Buyer is assuming Seller's insurance policy or policiesthe “Final Adjustment Date”). Proration The provisions of Taxes this Article 5 and the obligations of Sellers and Buyer hereunder shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which survive 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 deemed merged into any prorations that are to be made after the Closing pursuant to this Agreementinstrument delivered at Closing.
Appears in 2 contracts
Sources: Purchase Agreement (G REIT Liquidating Trust), Purchase Agreement (NNN 2002 Value Fund LLC)
Prorations. The following shall be prorated between (a) Seller and Buyer and Seller agree to adjust, as of 11:59 p.m. local time of on the day immediately preceding the Closing Date, Date (the “Proration Time”) on the basis of then applicable six (6) month real property tax billing period, the actual number of days elapsed during following (collectively, the month in which the Closing occurs: general “Proration Items”): real estate and special county and city real personal 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 subject to the extent permissible for said yearterms of Section 9.7.1(b) below), utility bills (except as hereinafter provided), and collected Rents (subject to the extent terms of Section 9.7.1(b) below) payable by the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion owner of the Property) . Seller will be charged and allocable either credited for the amounts of all of the Proration Items relating to the period before up to and including the Closing or Proration Time, and Buyer will be charged and credited for all of the Proration Items relating to the period after the Proration Time. Such preliminary estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Buyer for Buyer’s approval prior to the Closing Date (the “Closing Statement”). Seller agrees that twenty-four (24) hours prior to the Closing, then Seller will discontinue data entry operations in the on-site computer system, including making deposits of rental income and will forward final reports as soon as practicable to Buyer’s representative so as to enable Buyer and Seller to work together to transition the management of the Property and complete work on prorations as set forth herein. The Closing Statement, once agreed upon, shall adjust the actual Taxes between be signed by Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition Seller and delivered 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 Escrow Agent for purposes of making the ownership or operation of Property before the preliminary proration adjustment at 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, subject to the extent such rents or other income relate to the period ending on or before the Closing, such rents or other income final cash settlement provided for below. The preliminary proration shall be paid at Closing by Buyer to Seller within ten (10if the preliminary prorations result in a net credit to Seller) days after end of or by Seller to Buyer (if the month preliminary prorations result in which such amounts were collected. Buyer shall incur no obligation a net credit to Seller for Buyer's failure ) by increasing or reducing the cash 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 in payment of the Purchase Price at the Closing. Escrow Holder If the actual amounts of the Proration Items are not known as of the Proration Time, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received (not to exceed 120 days after closing), re-prorations will be made on the basis of the actual figures, and a final cash settlement will be made between Seller and Buyer. No prorations will be made in relation to insurance premiums, and Seller’s insurance policies will not be assigned to Buyer. The provisions of this Section 9.7.1(a) will survive the Closing for a period of twelve (12) months.
(b) Buyer will receive a credit on the Closing Statement for the prorated amount (as of the Proration Time) of all Rent previously paid to or collected by Seller and attributable to any period following the Proration Time. Rents are “Delinquent” when they were due prior to the Closing Date, and payment thereof has not been made on or before the Closing Date. Delinquent Rents will not be prorated. All sums collected by Buyer from and after Closing from each Tenant will be applied first to current amounts owed by such Tenant and then to Delinquent Rent owed by such Tenant to the extent not previously collected by Seller. Buyer shall deliver to Seller all Delinquent Rent collected hereunder on a monthly basis within five (5) days of the end of each calendar month. Buyer shall not have an exclusive right to collect any sums due Seller from Tenant under the Leases and Seller hereby retains the right to collect any sums due Seller from Tenants under the Leases for any sums due Seller for period attributable to Seller’s ownership of the Property; provided, however, Seller shall not be concerned with permitted to commence or pursue any prorations that are to be made after legal proceedings including eviction against any current Tenant. The provisions of this Section 9.7.1(b) will survive the Closing pursuant to this AgreementClosing.
Appears in 2 contracts
Sources: Agreement of Sale and Purchase (Behringer Harvard Multifamily Reit I Inc), Agreement of Sale and Purchase (Behringer Harvard Multifamily Reit I Inc)
Prorations. The following 12.1. Rents (exclusive of delinquent rents, but including prepaid rents); refundable security deposits (which will be assigned to and assumed by Purchaser and credited to Purchaser at Closing); water and other utility charges; fuels; prepaid operating expenses; real and personal property taxes prorated on a "net" basis (i.e. adjusted for all tenants' liability, if any, for such items); operating expenses which are reimbursable by the tenants for the period prior to the Closing Date less any amount previously paid by the Tenants shall be prorated between Buyer credited to Seller; and Seller other similar items shall be adjusted ratably as of 11:59 p.m. local time of the day immediately preceding on the Closing Date, and credited against the balance of the cash due at Closing. Assessments payable in installments which are due subsequent to the day before the Closing Date shall be paid by Purchaser. If the amount of any of the items to be prorated is not then ascertainable, the adjustments thereof shall be on the basis of the actual number most recent ascertainable data. All prorations will be final except as to the matters referred to in Paragraph 12.2 below. If the Seller shall have collected from tenants any payments for utilities, taxes, common area expenses, or other operating expenses in excess of days elapsed during the month in which amounts incurred by Seller for any period prior to the Closing occurs: general and special county and city real property taxes and special assessments (collectivelyDate, "Taxes") then Purchaser shall receive a credit for the tax such excess amounts. If Seller is credited for any utilities, taxes, common area expenses, or other operating expenses in excess of amounts incurred by Seller for any 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 prior to the Closing occursDate, with due allowance to be made then Purchaser shall receive a credit for the maximum available discount such excess amounts. If Seller is credited for any utilities, taxes, insurance, CAM 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 expenses which Seller has paid applicable to the period before the Closing or prior to the period proration date and which are reimbursable by tenants after the Closing, then Buyer the amount of the credit shall be held in escrow by the Title Company and shall be released to Seller shall adjust when payment is made by the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible tenant.
12.2. All basic rent paid following the ClosingClosing Date by any tenant of the Property who is indebted under a lease for basic rent for any period prior to and including the Closing Date shall be deemed a "Post-Closing Receipt" until such time as all such indebtedness is paid in full. In addition to the foregoing apportionmentsWithin ten (10) days following each receipt by Purchaser of a Post-Closing Receipt, Seller shall receive all rents and other income accrued, and Purchaser shall pay such Post-Closing Receipt to Seller. Purchaser shall use its best efforts to collect all other expenses accrued or incurredamounts which, in connection with the ownership or operation of Property before the upon collection, would constitute Post-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 Receipts hereunder. Within 120 days after the Closing Date, all Purchaser shall deliver to Seller a reconciliation statement of which rents, other income and expenses shall be prorated as of Post-Closing Receipts through the Closing. Rents and other income, if any, collected by Buyer first 90 days after the Closing Date. Upon the delivery of the Post-Closing Receipts reconciliation, Purchaser shall be applied first deliver to Seller any amounts due Post-Closing Receipts owing to Buyer Seller and thennot previously delivered to Seller in accordance with the terms hereof. Seller retains the right to conduct an audit, at reasonable times and upon reasonable notice, of Purchaser's books and records to verify the extent such rents or other income relate accuracy of the Post-Closing Receipts reconciliation statement and upon the verification of additional funds owing to Seller, Purchaser shall pay to Seller said additional Post-Closing Receipts and the period ending on or before cost of performing Seller's audit. Paragraph 12.2 of this Agreement shall survive the Closing and the delivery and recording of the deed. If, following the Closing, Seller receives any rebates or refunds of utility charges, insurance, real or personal property taxes or operating expenses, the amount of such rents rebate or other income refund shall be paid to Purchaser, and Purchaser shall indemnify, defend and hold harmless the Seller within ten (10) days after end against the claims of the month in which Tenants with respect to such amounts were collectedfunds. 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 The provisions of this paragraph shall be delivered by certified funds to Buyer confirmed at the Closing or, at Seller's option, credited to Buyer against the cash portion of the Purchase Price at the and shall survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Sources: Sale Agreement (Balcor Equity Pension Investors Iii), Agreement of Sale (Balcor Equity Pension Investors Ii)
Prorations. The At Closing, the following prorations shall be prorated between Buyer and Seller made as of 11:59 p.m. local time of the day immediately preceding midnight on the Closing Date. Seller shall furnish to Purchaser and Title Company a draft Closing Statement three (3) days prior to the expected Closing Date containing the following pro-rations of income and expense and the apportionment of taxes:
(a) All collected rents and other income with respect to the Property, on the basis of the actual number of days elapsed during if any, for the month in which the Closing occurs: general , and special county real estate and city real personal property taxes and special other assessments (collectively, "Taxes") with respect to the Property 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 date of Closing. Rents If the Closing shall occur before all of the rents from the Property have actually been paid for the month in which the Closing occurs, the apportionment of any such rent shall be upon the basis of such rents actually received by the Seller. Subsequent to the Closing, if any rents for the month of closing, or for prior rental periods, are actually received by Purchaser, promptly after its receipt of such rents, Purchaser shall apply first, to satisfy such tenant’s current due and owing rent obligations relating to the period after the Closing Date; second, to satisfy such delinquent rent obligations relating to the period in which the Closing Date occurred; and third, to satisfy such delinquent rent obligations relating to the period prior to the Closing Date. Purchaser shall make a good faith effort and attempt to collect any such rents not apportioned at the Closing, for the benefit of Seller. Purchaser shall receive credit against the Purchase Price for the amount of any refundable and non-refundable security deposits and fees for which the Seller is accountable (plus accrued interest thereon as required by law), cleaning, administrative, redecorating, pet, key or other incomedeposits and fees (with the exception of application fees) and prepaid rentals for a later calendar month. Upon Closing, Purchaser shall assume Seller’s obligations for such fees as noted herein to the extent Purchaser has received credit against the Purchase Price for such fees. Purchaser will defend, indemnify, and hold Seller harmless from and against all demands and claims made by tenants arising out of the transfer or disposition of any security deposits or other fees credited to Purchaser. Seller will indemnify and hold Purchaser harmless from and against any demands and claims made by tenants arising out of any security deposits not credited to Purchaser. For utility charges, Seller and Purchaser shall use their best efforts to cause all utility ▇▇▇▇▇▇▇▇ to be closed and billed by the respective utility companies as of the Closing Date in order that utility charges may be separately billed for the periods prior to and after the Closing Date. In the event any such utility charges are not separately billed, the same shall be prorated. In connection with any such proration, it shall be presumed that utility charges were uniformly incurred during the billing period in which the Closing Date occurs.
(b) If the Closing shall occur before the tax rate or the assessed valuation of the Property is fixed for the then current year, the apportionment of taxes shall be upon one hundred five percent (105%) the basis of the tax rate for the preceding year applied to the latest assessed valuation. Subsequent to the Closing, when the tax rate and the assessed valuation of the Property is fixed for the year in which the Closing occurs, the parties agree to adjust the proration of taxes and, if necessary, to refund or repay such sums as shall be necessary to effect such adjustment; provided, however, if the taxes for such period increase due to a valuation of the Property that is due solely to the sale of the Property to Purchaser, Seller shall not be allocated any portion of said increase resulting from such revaluation. Seller shall pay all special tax assessments, if any, collected by Buyer after pending against the Closing shall be applied first to any amounts due to Buyer and then, Property prior to the extent such rents or other income relate to Closing.
(c) Intentionally omitted
(d) Intentionally omitted
(e) Intentionally omitted
(f) Any ▇▇▇▇▇ cash maintained at the period ending on or before Property for day-to-day operations shall remain the property of Seller at Closing.
(g) The agreements of Seller and Purchaser set forth in this Section 6.3 shall survive 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.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Berkshire Income Realty Inc), Purchase and Sale Agreement (Berkshire Income Realty Inc)
Prorations. The following shall be prorated between Buyer All Taxes other than Transfer Taxes or Taxes based upon or related to income or receipts, including but not limited to, all personal property taxes, ad valorem obligations and Seller as of 11:59 p.m. local time of similar taxes imposed on a periodic basis, in each case levied with respect to the day immediately preceding International Assets for a taxable period which includes (but does not end on) the Assets Call Closing Date, shall be apportioned between the Seller and DISH as of the Assets Call Closing Date based on the basis of the actual number of days elapsed during in such taxable period prior to the month Assets Call Closing Date (the “Pre-Closing Period”) and the number of days in which such taxable period following the Assets Call Closing occurs: general and special county and city real property taxes and special assessments Date (collectively, "Taxes") the “Post-Closing Period”). The Seller shall be liable for the tax period then in effect and insurance premiums (but only if Buyer proportionate amount of such Taxes that 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 attributable 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 Pre-Closing Period. Within ninety (or any portion of the Property90) and allocable either to the period before the Closing or to the period days 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 Assets Call Closing Date, the Seller and Buyer DISH shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection present a reimbursement to which each is entitled under this Section 9.4 together with such supporting evidence as is reasonably necessary to calculate 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 Closingproration amount. 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 The proration amount shall be paid by the Party owing it to Seller the other within ten (10) days after end delivery of such statement. Thereafter, the Seller shall notify DISH upon receipt of any ▇▇▇▇ for personal property Taxes relating to the International Assets, part or all of which are attributable to the Post-Closing Period, and shall promptly deliver such ▇▇▇▇ to DISH who shall pay the same to the appropriate taxing authority, provided that if such ▇▇▇▇ covers the Pre-Closing Period, the Seller shall also remit, prior to the due date of assessment, to DISH payment for the proportionate amount of such ▇▇▇▇ that is attributable to the Pre-Closing Period. In the event that either the Seller or DISH shall thereafter make a payment for which it is entitled to reimbursement under this Section 9.4, the other Party shall make such reimbursement promptly but in no event later than thirty (30) days after the presentation of a statement setting forth the amount of reimbursement to which the presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement. Any payment required under this Section 9.4 and not made within ten (10) days of delivery of the month in which such amounts were collected. Buyer statement 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 bear interest at the Closing orrate per annum determined, at Seller's optionfrom time to time, credited to Buyer against under the cash portion provisions of Section 6621(a)(2) 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 AgreementCode for each day until paid.
Appears in 2 contracts
Sources: Implementation Agreement, Implementation Agreement (ICO Global Communications (Holdings) LTD)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of (a) At the day immediately preceding Closing, utility charges for the Closing Date, on the basis of the actual number of days elapsed during the month billing period in which the Closing occurs: general and special county and city real , personal property taxes attributable to the Facility, and special assessments any other items of revenue or expense attributable to the Facility (collectively“Prorated Items”), "Taxes") including, but not limited to Bed Taxes (defined herein)/user fees, shall be prorated between Existing Operator and New Operator as of the Closing Date. In general, such prorations shall be made so as to reimburse Existing Operator for prepaid expense items to the extent such expense items are attributable to periods after the Closing and to charge Existing Operator for expenses accrued but unpaid as of the Closing. The intent of this provision shall be implemented by New Operator remitting to Existing Operator any invoices for Prorated Items that reflect a service date before the Closing and by New Operator assuming responsibility for the tax period then payment of any invoices for Prorated Items that reflect a service date after the Closing with any overage or shortage in effect payments by either party to be adjusted and insurance premiums paid as provided in Sections 1.7(b) and (but only if Buyer is assuming Seller's insurance policy or policiesc). Proration Notwithstanding the foregoing, New Operator acknowledges and agrees that it shall have no right, title or interest in and to any retroactive workers compensation insurance program payments whether or not the same are paid prior to or after the Closing Date if and to the extent they relate to any period prior to the Closing Date. For the avoidance of Taxes doubt, any Bed Tax or similar provider taxes or fees shall be prorated between Existing Operator and New Operator based on the period of its operation of the Facility occurring before and after the Closing Date, as the case may be, including, but not limited to, any such assessments made by the State of Georgia and/or paid by Existing Operator prior to the Closing Date that would apply to operation of the Facility after the Closing Date.
(b) Any and all deposits paid by Existing Operator with respect to the Facility including, without limitation, any and all equipment lease, security and/or utility deposits paid to and/or cash or other collateral held by any equipment lessor or by any utility, insurance company or surety, shall remain the sole and exclusive property of Existing Operator and New Operator shall have no right or interest therein or thereto, and to the extent that Existing Operator does not receive a return of any such deposit on the Closing Date and such security deposit has been assigned to and assumed by New Operator, New Operator shall reimburse Existing Operator on the Closing Date or at some later date when an assignment takes place, the amount of any such security deposit assumed by New Operator. In furtherance of the foregoing, New Operator and Existing Operator shall cooperatively work to transition the utilities serving the Facility into the name of New Operator effective as of the Closing Date.
(c) All such prorations shall be made on the basis of actual days elapsed in the relevant accounting, billing or revenue period and shall be based on the most recent official tax bills or notice of valuation information available for to Existing Operator. Without limiting the fiscal year in which the Closing occursforegoing, with due allowance to water, electricity, sewer, gas, telephone and other utility charges shall be made for the maximum available discount or other exemptions based, to the extent permissible practicable, on final meter readings and invoices covering the period of time through the Closing Date. Utility charges which are not metered and read for said yearthe Closing shall be estimated based on prior charges, and to shall be re-prorated upon receipt of statements, therefore.
(d) To the extent possible and based on reasonable estimates, 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 Parties shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following make all prorations at the Closing. In addition All amounts owing from one party hereto 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 party hereto that require adjustment 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 settled within ten thirty (1030) days after end the Closing Date or, in the event the information necessary for such adjustment is not available within said thirty (30) day period, then as soon thereafter as practicable.
(e) Within thirty (30) days after Closing, New Operator shall transfer to Existing Operator an amount equal to any p▇▇▇▇ cash remaining at the Facility as 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.
Appears in 2 contracts
Sources: Operations Transfer Agreement (Selectis Health, Inc.), Operations Transfer Agreement (Selectis Health, Inc.)
Prorations. (a) The following parties intend that Seller shall operate for its own account the business conducted at the Branch Offices until the Effective Time, and that Purchaser shall operate such business for its own account on and after the Effective Time. Thus, for purposes of this Agreement, items of proration and other adjustments shall include, without limitation: (i) rental payments under the Leases and payments under the Assumed Contracts; (ii) sales, transfer, excise and use taxes and personal and real property Taxes and assessments arising from the Leases, or otherwise from the Branch Offices (determined by assuming that the taxable year or period ended at the Effective Time and in accordance with Section 2.4(b)); (iii) Federal Deposit Insurance Corporation (“FDIC”) deposit insurance assessments for Deposit Liabilities (excluding any special or prepaid assessments paid or to be paid by Seller, including the prepaid assessment collected by the FDIC on December 30, 2009, which in either case shall not be prorated and the total amount of which shall remain with Seller), (iv) trustee or custodian fees on ▇▇▇ accounts that are transferred to Purchaser as part of the Transferred Assets; (v) prepaid expenses and items and accrued but unpaid liabilities a portion of which is attributable to periods after the Effective Time (it being understood that Purchaser shall have no liability for any accrued but unpaid liabilities attributable to Excluded Assets or Excluded Liabilities), as of the close of business on the Closing Date; and (vi) prepaid safe deposit rental payments previously received by Seller, reduced by applicable past due payments with respect to corresponding safe deposit box rentals.
(b) Seller shall be prorated between Buyer responsible for fifty percent (50%) of all Transfer Taxes that may be imposed on the purchase and sale of the Transferred Assets and Purchaser shall be responsible for the other fifty percent (50%) of such Transfer Taxes. “Transfer Taxes” means all sales, use, value added, excise, registration, documentary, stamp, transfer, real property transfer, recording, and other similar Taxes and fees (together with any interest, penalties or additions to Tax or additional amount imposed). The parties shall cooperate in good faith to minimize such Transfer Taxes to the extent legally permissible. Purchaser and Seller shall apportion pro rata all real property and personal property Taxes paid or payable in connection with the Transferred Assets. Such apportionment shall be made on a per diem basis as of 11:59 p.m. local time of the day immediately preceding Closing Date and shall be based upon the fiscal year for which the same are assessed. In the event that the applicable tax ▇▇▇▇, or other information reasonably necessary for computing any such apportionment is not available on the Closing Date, the apportionment shall be made at Closing on the basis of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city next-preceding fiscal year’s real property taxes and special assessments personal property Taxes. Within thirty (collectively, "Taxes"30) for calendar days after receipt by the parties of the applicable 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 information reasonably necessary for said yearcomputing such apportionment, Purchaser and to the extent the tax bills do not accurately reflect Seller shall apportion the actual Taxes assessed against the Property (or any portion of the Property) and allocable and, if either to the period before the Closing or to the period after the party paid more than its proper share thereof at Closing, then Buyer and Seller the other party shall adjust promptly reimburse such party for 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 Agreementamount so expended.
Appears in 2 contracts
Sources: Branch Purchase and Assumption Agreement (Green Bancorp, Inc.), Branch Purchase and Assumption Agreement (Green Bancorp, Inc.)
Prorations. The Purchase Price set forth in Paragraph 3.0 is subject to the following shall be prorated between adjustments and prorations:
9.1 Plus an amount which will credit SELLER for lease payments which have been paid in advance for time periods on and after Closing ("Prepaid Leases"). Attached as Exhibit 9.1 is a list of Prepaid Leases which Buyer and Seller agree shall be added to the Purchase Price.
9.2 Minus the amounts which will credit Buyer for the following:
9.2.1 Any lease payments for which Buyer becomes obligated relating to any period of time prior to Closing.
9.2.2 Any advertising services delivered by Parent or Buyer on and after Closing for which Seller has already billed or otherwise receives payment.
9.2.3 All items of income and expense listed below relating to the Assets will be prorated 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 Seller liable to the extent permissible for said year, such items relate to any time period up to 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 including the Closing Date, and Buyer shall receive all liable to the extent such items relate to periods on or subsequent to the Closing Date; including without limitation (a) personal property, real estate, occupancy and water taxes, if any, on or with respect to the Assets; (b) rents, taxes and other items payable by Seller under any contract to be assigned to or assumed by Buyer; (c) the amount of sewer rents and charges for water, telephone, electricity and other income accruing, utilities and shall pay fuel; (d) all other expenses rentals that are or would be payable or have accrued pursuant to "percentage rental" lease provisions with respect to periods after the Closing Date; and (e) all items paid or incurred, in connection with the ownership or operation of Property payable 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 Date under any amounts due to Buyer and then, obligation specifically assumed to the extent such rents or other income relate not specifically referenced in clauses (a) - (d) above which are normally prorated in connection with similar transactions. A list of percentage leases with the date of expiration is attached hereto as Exhibit 9.2.3;
9.2.4 If current payments with respect to the period ending items to be prorated pursuant to this Section 9.2 are not ascertainable on or before the ClosingClosing Date, such rents or other income payments shall be paid prorated on the basis of the most recently ascertainable ▇▇▇▇ therefor and shall be reprobated between Seller and Buyer when the current bills with respect to Seller such items have been issued and a cash settlement shall be made within ten thirty (1030) 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 Agreementthereafter.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Universal Outdoor Inc), Asset Purchase Agreement (Universal Outdoor Holdings Inc)
Prorations. The following Purchase Price for the Property shall be prorated between Buyer subject to prorations and Seller credits as follows to be determined as of 11:59 p.m. local time 12:01 a.m. on the Closing Date:
1. Rents Payable Under Tenant Leases. Any portion of any rents collected subsequent to the day immediately preceding Closing Date and properly allocable to periods prior to the Closing Date, on net of Purchaser's third-party costs of collection, if any, shall be paid, promptly after receipt, to the basis Seller, but subject to all of the actual number provisions of days elapsed during this Section; and any portion thereof properly allocable to periods subsequent to the month Closing Date, if any, shall be paid to Purchaser. Any amount collected from a tenant shall first be applied to such tenant's current monthly rental and then to past due amounts in the reverse order in which they were due. Any advance rental payments or deposits paid by tenants prior to the Closing occurs: general Date and special county and city real property taxes and special assessments (collectively, "Taxes") for applicable to the tax period then in effect and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration periods of Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which time subsequent to the Closing occurs, with due allowance to be made for the maximum available discount Date and any security deposits or other exemptions amounts paid by tenants, together with any interest on both thereof to the extent permissible such interest is due to tenants, shall be credited to Purchaser on the Closing Date. No credit shall be given the Seller for accrued and unpaid rent or any other non-current sums due from tenants until said yearsums are paid.
2. Motel Room, Restaurant and Bar Revenues. Purchaser shall be entitled to all food service, bar, beverage and liquor revenues and charges and all revenues and charges from restaurant operations, Motel banquet and conference facility operations, and all other revenue of any kind attributable 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 same for the period before on and after 12:01 a.m. on 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 ClosingDate. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, and Purchaser shall pay over to Seller all other expenses accrued or incurred, collections of accounts receivable in connection with the ownership Properties which have accrued as of Closing (the "Closing Accounts Receivable"). By no later than sixty (60) days after Closing, Purchaser shall pay to Seller an amount equal to the remaining Closing Accounts Receivable, minus those uncollectible Closing Accounts Receivable as agreed upon by Purchaser and Seller. Seller shall deliver to Purchaser or operation of Property before provide Purchaser a credit against the Purchase Price for the Properties in an amount equal to all guest reservation deposits held by the Motels for Motel guests arriving or staying after check-out time for the Motel on 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 . All collections of Property on or Motel receivables from any party 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 receivables due from such party which have accrued prior to Buyer Closing and then, second to the extent receivables due from such rents or other income relate to the period ending on or before the party which have accrued after 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.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Super 8 Motels LTD), Purchase and Sale Agreement (Super 8 Motels LTD)
Prorations. The following shall be prorated between Buyer and Seller Seller, as of 11:59 p.m. local time the Close of the day immediately preceding the Closing DateEscrow, on the basis of the actual number of days elapsed during the month in which the Closing Close of Escrow occurs: (a) general and special county and city real property taxes and special assessments (collectively, "Taxes"); (b) for utilities; and (c) any service agreements transferred to Buyer at the tax period then in effect Close of Escrow. The amount of any utility deposit, or any other deposit transferred to Buyer pursuant hereto, shall be credited to Seller and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies)debited to Buyer. Proration of Taxes shall must be based on the most recent official tax bills or notice of valuation available to the general public for the fiscal year in which the Closing Close of Escrow (such obligation to survive the Close of Escrow) 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 such actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Close of Escrow. In the event that after the Closing, there shall be a retroactive increase in any Taxes imposed on the owner of the Property: (i) if such increase shall relate to the tax year in which the Close of Escrow occurred, such increase shall be prorated by Seller and Buyer on a per diem basis based on their respective periods of ownership during the period such increase is effective, (ii) if such increase shall relate to any tax year subsequent to the tax year during which the Close of Escrow occurred, such increase shall be the obligation of Buyer, and (iii) if such increase shall relate to any tax year prior to the tax year during which the Close of Escrow occurred, such increase shall be the obligation of Seller. In addition to the foregoing apportionments, Seller shall receive all rents and other income accrued, accrued prior to the a Close of Escrow and shall pay all other expenses accrued or incurred, incurred in connection with the ownership or operation of the Property before prior to the Closing Date, Close of Escrow and Buyer shall receive all rents and other income accruing, accruing on or after the Close of Escrow and shall pay all other expenses incurred or accrued or incurred, in connection with the ownership or operation of the Property on or after the Closing Date, all Close of which rents, other income Escrow. If 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 Escrow Holder requires any information or instructions from Buyer and Seller in order to perform such rents or other income relate to the period ending on or before the Closingprorations, such rents or other income Buyer and Seller 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 Closingfurnish Escrow Holder with further mutual instructions. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing Close of Escrow pursuant to this Agreement.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Neurocrine Biosciences Inc), Purchase and Sale Agreement (Neurocrine Biosciences Inc)
Prorations. The following shall items are to be prorated apportioned between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding before the Closing Date, except as otherwise set forth below:
(a) Rents and Charges. Basic rents, percentage rents and payments or reimbursements for taxes, utilities and operating expenses and all other charges or reimbursables as and when collected under the Leases including without limitation charges for any special services provided to any Tenant, overtime HVAC or special cleaning (collectively, the "Rents"); provided, however, that all Rents collected after the Closing under the Leases shall be applied, on a Lease by Lease basis and unless any Tenant specifies otherwise with respect to a payment, first, to satisfy obligations attributable to the payment period in which Closing occurs, second, in payment of Rents due and payable for the period after the Closing Date, and third, after Rents for all current periods have been satisfied in full, in payment of Rents in arrears for the periods prior to the payment period in which the Closing occurs. At Closing, Seller shall assign to Buyer all of its claims or causes of action against existing Tenants, if any, provided, however, that if any such Tenant files a counterclaim or initiates an action against Seller which is not covered by Buyer's indemnity provided for under Section 33 below, then Seller shall retain such claims or causes of action (or such claims or causes of action shall be reassigned to Seller) to the extent necessary for Seller to assert a complete setoff or other defense against such Tenant's counterclaim or other action. If at the time of Closing (as reflected in a schedule to be delivered by Seller at Closing of all amounts known to Seller as due and payable by any Tenant for the period prior to Closing but uncollected as of Closing, whether or not past due) or thereafter there are Rents owed by Tenants to Seller, then Buyer will make commercially reasonable efforts, without suit, to collect the same for the account of Seller and any such Rents, if received, shall have been received by Buyer for the account of Seller and will be remitted by Buyer to Seller within 15 days of receipt. If, however, Buyer, in its sole discretion, elects to s▇▇ any Tenant for Rents in arrears for periods after Closing, Buyer shall include in such suit (and, upon recovery, pay to Seller) amounts due Seller from such Tenant (net of any prior collections and payments to Seller) for periods prior to Closing and Seller shall be responsible for incremental legal fees and expenses, if any, reasonably incurred by Buyer's counsel in prosecuting such action on Seller's behalf at the same time it is prosecuting such action on Buyer's behalf. Notwithstanding the foregoing, as to any Rents due Seller which are unpaid as of the date which is 45 days after such Rents are due, at Seller's option upon written notice to Buyer, Seller may for its own account, take such action as it may deem advisable to recover such past due Rents including the exercise of all legal or equitable remedies (except that Seller may not exercise any right to terminate a Lease, evict a Tenant or attach any Rents that become due after Closing) and from and after the date Seller gives Buyer notice of the exercise of such right, that part of the Rents due Seller which Seller elects to collect shall be deemed reassigned to Seller without any further document or instrument, and Buyer shall be released from any further obligation to make any efforts to collect such amounts except to reasonably cooperate with Seller's collection efforts (and Seller further agrees promptly to deliver to Buyer copies of all correspondence and legal papers filed in connection with such recovery efforts by Seller). Subject to the foregoing, Buyer shall also provide Seller with a written report on a monthly basis setting forth the status of the billing and collection of the Rents attributable to all periods prior to Closing. Seller expressly agrees that if Seller receives any Rents directly from Tenants after the Closing Date, Seller shall remit same to Buyer (but only to the extent such Rents have not been reassigned to Seller as provided herein) within 15 days after receipt thereof and Buyer shall deliver to Seller the amount thereof, if any, to which Seller is entitled pursuant to the terms hereof within 15 days after receipt thereof. All prepaid Rents and charges for the period following the Closing and all cash security or other cash deposits of Tenants held by Seller shall be paid over (or credited) by Seller to Buyer at Closing. Buyer shall also provide Seller with a written report on a monthly basis setting forth the status of the billing and collection of the Rents attributable to all periods prior to Closing. Except as set forth herein, Seller shall not be entitled to collect or attempt to collect Rents from Tenants except those whose Leases or rights to possession under the Leases have been terminated and have vacated their premises.
(b) All percentage rentals received under the Leases for the year in which the Closing Date occurs shall be apportioned between Buyer and Seller pro-rata based on the percentage of such year the Project is owned by each. All other charges to or contributions by Tenants under the Leases for the period under such Leases which includes the Closing Date, including without limitation, payments or reimbursements, whether for taxes, utilities, other operating expenses or otherwise, shall be apportioned on the basis of the ratio which the expenses actually paid by each party for such period bears to the total of all expenses with respect to such period for which such payment was made by the Tenant. Such apportionments shall be adjusted as soon as practicable after the end of the current lease year, and at such time Buyer shall furnish Seller with statements in reasonable detail showing the calculation of such apportionments, rents and payments, and any adjustments shall be allocated for the portion to which it applies. If either Seller or Buyer shall have collected more than its share of such amounts payable under any Lease pursuant to this Section, such party shall promptly remit to the other the amount of such excess. If any Tenant is entitled to refunds of any such rents or charges, such refunds shall be paid by the party hereto that received such rents or charges.
(c) Real property taxes and assessments and refunds for the tax year in which the Closing occurs. In the event a final tax b▇▇▇ is not available for such year at the Closing, the required proration shall be made on the basis of the most recent available tax b▇▇▇ and a further proration shall be made between the parties when the tax b▇▇▇ for the tax year in which the Closing occurs becomes available. If any proceeding for certiorari or other proceeding to determine the assessed value of the Project or the real property taxes payable with respect to the Project shall have been commenced prior to, and is pending as of, the Closing Date (a "Tax Protest"), Buyer and Seller shall agree upon the certiorari counsel who shall continue the prosecution of such proceeding or proceedings to completion. Buyer shall have the authority to settle or compromise any claim relating solely to the tax year in which the Closing Date occurs and the tax years thereafter and to receive and deliver to Seller any real estate tax refunds or abatements due to Seller net of costs of collection and refunds due to Tenants. Buyer shall consult with Seller with respect to settling or compromising claims relating to the tax year in which the Closing Date occurs. Seller shall have the right to be promptly informed as to the status of such proceedings. Seller shall have the authority to settle or compromise any claim relating solely to any tax year prior to the tax year in which the Closing Date occurs and to keep all amounts received on such claims, net of any refunds due to Tenants. The parties agree to cooperate with each other, and to execute any and all documents reasonably requested by the other party, in furtherance of the foregoing.
(d) Fees and charges under such of the Service Contracts as are being assigned to and assumed by Buyer at the Closing, on the basis of the actual number periods to which such Service Contracts relate.
(e) Utility charges, including water, sewer, steam, electricity and gas, vault taxes and maintenance charges, if any, for sewers (other than those charges required to be paid directly to the utility companies by any Tenant under its Lease). In conjunction with such prorations, Seller will assign to Buyer all utility deposits which are assignable (and Seller shall be credited with such amounts) and notify, or cause to be notified, all utilities servicing the Project of days elapsed during the month change in which ownership and direct that all future b▇▇▇▇▇▇▇ be made to Buyer at the address of the Project with no interruption of service. Seller shall use its reasonable efforts to procure final meter readings for all utilities as of 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, Date and to the extent the tax have bills do not accurately reflect the actual Taxes assessed against the Property rendered directly to Seller.
(or any portion of the Propertyf) and allocable either At least three (3) business days prior to the period before the Closing or to the period after the Closing, then Buyer and Seller jointly shall adjust prepare a closing statement, subject to and in accordance with the actual Taxes between Buyer terms hereof, indicating the net amount due to either party as a result of the adjustments and Seller, outside prorations provided for herein. Any errors in the calculation of Escrow, apportionments shall be corrected or adjusted as soon as reasonably possible following practicable (but not more often than monthly) after the ClosingClosing Date. In addition If it is impracticable 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 apportion certain items hereunder on 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 such items shall be prorated apportioned and paid 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 collectedsoon as practicable thereafter. Buyer shall incur no obligation agrees to Seller take necessary actions after Closing in a timely manner in order to make the adjustments and reprorations provided for hereunder, including, without limitation b▇▇▇▇▇▇▇ to Tenants and completion of Buyer's failure to collect such rentals or other income. All security and any other refundable deposits paid by tenants to Seller undertakings pursuant to tenant leases Subsection (b) above (other than collections) no later than April 30, 2000.
(g) The provisions of this Section 5.1 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 survive Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Carlyle Real Estate LTD Partnership Xiv /Il/), Purchase and Sale Agreement (Carlyle Real Estate LTD Partnership Xv)
Prorations. The following shall be prorated apportioned on a per diem basis as of 12:01 a.m. of the Closing Date ("Adjustment Date") and adjusted between Buyer the parties on the basis of the number of days in the month of the Closing with respect to each Property for items that are payable on a monthly basis and, for items that are not paid on a monthly basis, such items shall be adjusted on the basis of the number of days applicable to such period, with Seller receiving a credit for all amounts prepaid by Seller for any period from and after the Closing Date and Seller as of 11:59 p.m. local time of charged with any unpaid charges for the day immediately preceding period prior to the Closing Date:
(a) Real estate and other taxes, assessments and charges, and other municipal and State charges, license and permit fees, water and sewer rents and charges, if any, on the basis of the actual number fiscal period for which assessed or charged;
(b) Water, electric, gas, steam and other utility charges for service furnished to the Property;
(c) Fuel, if any, and all taxes thereon, on the basis of days elapsed during a reading taken as close as possible to the Adjustment Date;
(d) Base rents and any other rental payments (the "Rents") paid under the terms of the Leases for 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 thereafter;
(e) Any amounts paid or payable under any Service Contracts being assigned to the period after the Closing, then Buyer Buyer;
(f) All costs associated with telephone directory listings 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 any other income accrued, and shall pay all prepaid advertising;
(g) Any other expenses accrued or incurred, customary adjustments made in connection with the ownership or operation sale of Property before similar type buildings. There will be no proration of insurance costs at Closing. Except as may be otherwise provided herein, all other expenses and liabilities which are attributable to the period prior to the Closing DateDate shall be the obligation of Seller and those which are attributable to the period from and after the Closing Date shall be the obligation of Buyer. To the extent there are items of prepaid income, and Buyer shall receive all rents a credit attributable to the period from 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.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Prudential Bache a G Spanos Realty Partners L P I), Purchase and Sale Agreement (Prudential Bache Ag Spanos Genesis Income Partners L P I)
Prorations. The following items shall be prorated between Buyer Seller and Seller Purchaser (with Purchaser deemed to be holding title as of 11:59 p.m. local time of the day immediately preceding the Closing Date):
a. All ad valorem and other real estate taxes with respect to the Property (collectively, the “Taxes”) shall be prorated as of 12:01 a.m. on the Closing Date. If the Closing shall occur before the tax rate is fixed for the then current year, the apportionment of the Taxes shall be made upon 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") tax rate for the immediately preceding tax period then in effect and insurance premiums year applied to the latest assessed valuation of the Property. Within thirty (but only if Buyer is assuming Seller's insurance policy or policies). Proration 30) days after the actual amount of the Taxes shall be based on the most recent official tax bills or notice of valuation available for the fiscal year in which the Closing occursoccurs are determined, with due allowance to be made for Seller and Purchaser shall adjust the maximum available discount proration of the Taxes and Seller or other exemptions Purchaser, as the case may be, shall pay to the extent permissible for said year, other any amount required as a result of such adjustment. All unpaid taxes and to the extent the tax bills do not accurately reflect the actual Taxes taxes assessed against the Property for prior years due to a change in use or ownership of the Property shall be paid by Seller. Notwithstanding the foregoing, there will be no proration of taxes between the parties pursuant to this provision for which the payor is entitled to or has received a reimbursement from USPS.
b. All rent and other amounts payable under the Lease shall be prorated as of 12:01 a.m. on the Closing Date. Seller shall be charged with and Purchaser shall receive a credit against the Purchase Price for (i) any rent and other amounts collected by Seller prior to the Closing Date, but applicable to any period after the Closing Date and (ii) any security deposits held by Seller and prepaid rents received by Seller under the Lease. Rent is deemed to be delinquent when payment thereof is due on or prior to Closing but has not been made by Closing. Delinquent rent shall be prorated between Purchaser and Seller as of the Closing as if Seller had received such rent and consequently, Seller shall not be entitled to any credit or increase to the Purchase Price as a result of such delinquent rent. Seller is permitted to pursue Tenant for delinquent rent that was due prior to Closing, but agrees to do so in a commercially reasonable manner (provided, however, that: (a) Seller shall not seek to have Tenant’s possession of the Land and the Improvements under the Lease terminated; and (b) Seller shall not be entitled to any rent received from Tenant after the Closing unless Tenant is current in its rent obligations to Purchaser for periods occurring from and after Closing). Delinquent rent collected by Purchaser (if any), net of the costs of collection (including attorneys’ fees), shall be applied first against those amounts currently due (or any portion of the Propertyto be due within ten (10) days) and allocable either then to amounts most recently overdue. Any payments due to Seller as a result of collected delinquent rent shall be payable by Purchaser to Seller upon receipt thereof. In the period before event Seller receives the Closing or to the period rental check from Tenant after the Closing, then Buyer and Seller shall adjust it was not a part of the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentsrent proration, Seller shall receive all immediately remit to Purchaser the full amount of the check received. Both parties acknowledge that USPS rents and other income accruedare paid in arrears, at the end of month, 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, be adjusted accordingly.
c. All other income and operating expenses of the Property, including, without limitation, public utility charges, maintenance, management, and other service charges, and all other normal operating charges shall be prorated as of the Closing. Rents Closing Date based upon the best available information (it being understood that, unless otherwise indicated, Seller shall pay all amounts due with respect to the Property that accrue prior to the Closing Date), or, in Purchaser’s sole discretion, moved into Purchaser’s name as of the Closing Date.
d. With respect to leasing commissions, tenant finish costs, costs associated with architectural plans and other incomespecifications, utility splits, and demising costs, if any, collected by Buyer after the Closing Seller shall be applied first to any amounts due to Buyer and then, to responsible for the extent payment of all 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 costs at the Closing. Escrow Holder .
e. For purposes of proration only, Purchaser is deemed to own the Property on the Closing Date.
f. This Section 3.06 shall not be concerned merge with any prorations that are to be made after the Closing pursuant to this AgreementDeed and shall survive the Closing.
Appears in 2 contracts
Sources: Agreement of Purchase and Sale (Postal Realty Trust, Inc.), Agreement of Purchase and Sale (Postal Realty Trust, Inc.)
Prorations. The following shall apply with respect to each Closing: at least five (5) days prior to the respective Closing Date, Assignor shall provide to Assignee such information and verification reasonably necessary to support the prorations and adjustments under this Section 10. To the extent Assignor pays such operating expenses, assessments, charges under contracts and utility charges with respect to such Property pursuant to an Existing Lease, Assignor shall continue to be responsible for such charges pursuant to the terms and provisions of the Existing Leases. All other assessments, charges under contracts and utility charges with respect to such Property shall be prorated between Buyer Assignor and Seller Assignee, based on the actual number of days in the applicable period, as of 11:59 p.m. local time the close of the day immediately preceding the such 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 Assignor bearing all such items to the extent permissible for said year, attributable to the period prior to such Closing Date and Assignee bearing all such items to the extent attributable the tax bills do not accurately reflect period commencing on such Closing Date. Notwithstanding the actual Taxes assessed against the Property (or foregoing, Assignor shall be solely responsible for all costs and expenses of any portion kind under any of the Property) Existing Leases. In the event Assignor has any questions or concerns regarding prorations or other expenses under the Existing Leases, Assignor shall contact and allocable either to negotiate directly with the period Boulder Seller or the Longmont Seller, as applicable. Notwithstanding the foregoing, in the event Assignee receives a credit from the Longmont Seller or the Boulder Seller, as applicable, for any base rent or additional rent under the Existing Longmont Lease or the Existing Boulder Sublease, as applicable, that was paid by Assignor before the respective Closing or Date and applies to the any period after such Closing Date (the Closing“Prepaid Rent”), 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 Assignor shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, in connection with a credit for such Prepaid Rent on the ownership or operation of Property before the respective 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.
Appears in 1 contract
Prorations. The following All revenues, income, receivables, costs, expenses and payables of the Property shall be prorated apportioned equitably between Buyer and Seller the parties 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 in a particular month, and with respect to the month items enumerated below where a particular manner of apportionment is provided, then apportionment of such item shall be made in which such manner. The obligation to make apportionments shall survive Closing. Without limitation, the following items shall be so apportioned: 12.
1.1 Monthly rents and percentage rent and "passthroughs" of real estate taxes and operating expenses due from occupancy tenants under Tenant Leases, as and when collected. If at Closing there are any past due rents or charges owed by occupancy tenants, they shall notinto be prorated until received; Buyer shall include such delinquencies in its normal billing and shall pursue the collection thereof in good faith after 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 Date (but only if Buyer is assuming Seller's insurance policy shall not be required to litigate or policiesdeclare a default in any Tenant Lease). 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 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 Buyer receives amounts on account 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 Tenant Leases 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 such payments shall be applied first toward the delinquentthen current rent owed to SellerBuyer in connection with the applicable Tenant Lease for which such payments are received, and 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 excess monies received shall be paid applied toward the payment of any then currentdelinquent rents owed to Seller within ten (10) days after end of the month Buyer, with Seller's share thereof being promptly delivered to Seller. Buyer may not waive any delinquent rents nor modify a Tenant Lease so as to reduce or otherwise affect amounts owed thereunder for any period in which such Seller is entitled to receive its share of charges or amounts were collectedwithout first obtaining Seller's written consent. Buyer shall incur no obligation Seller hereby reserves the right to Seller for Buyer's failure to collect such rentals or other income. All security pursue any remedy against any tenant owing delinquent rents and any other refundable deposits paid by amounts or other rights of any kind respecting tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at who are no longer tenants of the Property as of 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 AgreementDate.
Appears in 1 contract
Prorations. The following shall be prorated between Buyer (a) Subject to Section 2.8, at the Closing, any ad valorem, use, real and Seller as of 11:59 p.m. local time personal property and similar Taxes, installments or special assessments arising from, or relating to, the Purchased Assets or the conduct of the day immediately preceding GCI Business, which were paid before the Closing Date and relate to periods both before and after the Closing Date, on the basis shall be prorated and adjusted between Seller and Buyer as of the actual number of days elapsed during the month in which the Closing occurs: general Date on a per diem basis, 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 responsible for and pay to Seller 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 such amounts allocable either to the period before or portion thereof beginning after the Closing or Date.
(b) Subject to the period Section 2.8, after the Closing, then any ad valorem, use, real and personal property and similar Taxes, installments or special assessments arising from, or relating to, the Purchased Assets or the conduct of the GCI Business, which become due and payable by Buyer on or after the Closing Date and relate to periods both before and after the Closing Date, shall be prorated and adjusted between Seller and Buyer as of the Closing Date on a per diem basis, and Seller shall adjust be responsible for and pay to Buyer the actual portion of such amounts allocable to the period or portion thereof ending on the Closing Date for which payment is due after the Closing Date within ten (10) business days after Buyer provides written notice of the amount of such Taxes and a calculation of the portion allocable to Seller.
(c) Subject to Section 2.8, after the Closing, any ad valorem, use, real and personal property and similar Taxes, installments or special assessments arising from, or relating to, the Purchased Assets or the conduct of the GCI Business, which become due and payable by Seller on or after the Closing Date and relate to periods both before and after the Closing Date, shall be prorated and adjusted between Seller and Buyer as of the Closing Date on a per diem basis, and Buyer shall be responsible for and pay to Seller the portion of such amounts allocable to the period or portion thereof beginning after the Closing Date for which payment is due after the Closing Date within ten (10) business days after Seller provides written notice of the amount of such Taxes and a calculation of the portion allocable to Buyer.
(d) All refunds of Taxes described in paragraphs (a), (b) and (c) shall be prorated and adjusted between Seller and Buyer as of the Closing Date on a per diem basis, and the party receiving such refund shall pay to the other party the portion of such refunds allocable to the other party (which in the case of Seller, outside of Escrow, as soon as reasonably possible following shall be the Closing. In addition portion thereof allocable 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 period ending on the Closing Date, and Buyer in the case of Buyer, shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with be the ownership or operation of Property on or portion thereof allocable to the period beginning after the Closing Date, ) within five (5) business days.
(e) Buyer shall timely pay all of which rents, other income Taxes described in paragraph (b) when due and expenses payable and shall be prorated as of the Closing. Rents solely responsible for any and other incomeall interest and penalties arising from any failure to make such timely payments, if any, collected by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, except to the extent attributable to Seller’s failure to comply with paragraph (b). Seller shall timely pay all Taxes described in paragraph (c) when due and payable and shall be solely responsible for any and all interest and penalties arising from any failure to make such rents or other income relate timely payments, except to the period ending on or before the Closing, such rents or other income shall be paid extent attributable 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 ’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 comply with any prorations that are to be made after the Closing pursuant to this Agreementparagraph (c).
Appears in 1 contract
Sources: Asset Purchase Agreement (Seracare Life Sciences Inc)
Prorations. The following prorations shall be prorated made between Buyer Purchaser and Seller as of 11:59 p.m. local time the date of Closing (for the purposes of the day immediately preceding following prorations, Purchaser shall be deemed to be the owner of the Property for the entire Closing Date):
(a) Seller shall receive a credit, if any, for any ad valorem taxes, assessments, maintenance costs or other costs and expenses advanced by Seller, if any (collectively the "Advances"), which (i) are attributable to the Closing Date and the period subsequent thereto, or (ii) are reimbursable to Seller by Tenant pursuant to the Lease, but have not been received by Seller as of the Closing Date. Seller agrees to remit to Purchaser, within thirty (30) days of receipt of same, all reimbursements received from Tenant after the Closing Date for all such Advances that are credited to Seller at Closing.
(b) Purchaser shall receive a credit, if any, for any ad valorem taxes, assessments, maintenance costs or other costs and expenses, if any, prepaid by Tenant to Seller (i) that relate to the Closing Date and period subsequent to the Closing Date, on or (ii) are (or may become) owed by Seller to Tenant pursuant to the basis Lease, but have not been paid to Tenant as of the actual number Closing Date.
(c) Purchaser shall receive a credit against the Purchase Price in an amount equal to the sum of days elapsed during (i) any and all leasing or other commissions due and payable (or that may become due and payable) in connection with the Lease, (ii) any and all tenant improvement and other allowances and concessions due, payable or owed (or that may become due, payable or owed) under the Lease, and (iii) any and all budgeted capital expenditures relating to the Property that have not been paid as of the Closing Date.
(d) All Rent and other amounts payable by the Tenant to the Landlord under the Lease attributable to the period prior to the Closing Date shall be the property of Seller, and all Rent and other amounts payable by the Tenant to the Landlord under the Lease attributable to the Closing Date and the period subsequent thereto shall be the property of Purchaser. If Rent due for the month in which the Closing occurs: general Date occurs has been paid by Tenant to Seller prior to the Closing Date, then such Rent shall be the property of Seller and special county Purchaser shall receive a credit for all such Rent attributable to the Closing Date and city real the period subsequent thereto. If Rent due for the month in which the Closing Date occurs has not been paid by Tenant to Seller prior to the Closing Date, then such Rent shall be the property of Purchaser and Seller shall receive a credit for all such Rent attributable to the period prior to the Closing Date. Purchaser and Seller each agree to remit to the other, within thirty (30) days after receipt of same, all Rent received by them after the Closing Date which is defined as the property of the other party pursuant to the terms of this subparagraph, which obligation shall expressly survive Closing hereunder. Purchaser shall receive a credit against the Purchase Price in an amount equal to all security deposits, if any, required under the Lease, provided however, Purchaser shall assume all obligations of the aforementioned security deposits as required under the Leases. STORE NO. 2630 (e) As of the Closing, any and all ad valorem taxes and special assessments attributable to the Property (collectively, "Taxes") for calendar year 2002 and all prior calendar years shall be paid by Seller. Taxes for calendar year 2003 that remain unpaid as of the tax period then in effect Closing shall be prorated as between Seller and insurance premiums Purchaser as follows: (but only if Buyer is assuming Seller's insurance policy or policies). Proration a) Seller shall be responsible for the aggregate amount of Taxes (less any portion thereof payable by the Tenant pursuant to the Lease) levied or assessed against the Property during, or attributable to the Property for, calendar year 2003, multiplied by a fraction, the numerator of which shall be based on the most recent official tax bills or notice number of valuation available days during calendar year 2003 that Seller owned the Property, and the denominator of which shall be 365; and (b) Purchaser shall be responsible for the fiscal aggregate amount of Taxes (less any portion thereof payable by the Tenant pursuant to the Lease) levied or assessed against the Property during, or attributable to the Property for, calendar year in 2003, multiplied by a fraction, the numerator of which shall be the number of days during calendar year 2003 that Purchaser owned the Property, and the denominator of which shall be 365. Any Taxes attributable to calendar year 2003 that are due and payable as of the Closing occurs, with due allowance to Date shall be made for paid by Seller as of the maximum available discount or other exemptions Closing Date as part of the proration of Taxes payable by Seller pursuant to the extent permissible prior sentence. If the final amount of Taxes for said yearcalendar year 2003 are not known at the Closing, then Seller and Purchaser shall, in good faith, estimate the amount of same at closing, and shall re-prorate such Taxes within thirty (30) days of the date that the final amount shall be determined (i.e., issuance of the final Tax ▇▇▇▇ for calendar year 2003).
(f) if 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 Closingapplicable, 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 Purchaser 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 a credit against the cash portion of the Purchase Price at in amounts equal to the Closing. Escrow Holder shall not be concerned with any prorations that Lease Rent Credit and/or the Late Delivery Credit (as such terms are to be made after the Closing pursuant to this Agreementdefined in Section 15(3) below).
Appears in 1 contract
Sources: Real Estate Purchase Contract (Inland Western Retail Real Estate Trust Inc)
Prorations. The following shall To the extent included in Working Capital on the Closing Financial Statement, the obligations and liabilities listed below relating to the Premises and/or Assets will 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 Sellers liable to be made for the maximum available discount or other exemptions Purchaser therefor to the extent permissible for said year, such items relate to any time period up to and including the day prior to the Closing Date and Purchaser liable to Seller therefor to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or such items relate to any portion of the Property) and allocable either to the time 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 commencing on or after the Closing Date: ad valorem, all of which rents, other income occupancy and expenses shall be prorated as of the Closing. Rents and other incomewater taxes, if any, collected on or with respect to the Business, the Premises and/or Assets; rents, taxes and similar items payable by Buyer after Seller under any Assigned Contract; the Closing shall be applied first amount of any license or registration fees paid to a Governmental Authority with respect to any amounts due Permits which are being assigned or transferred hereunder; the amount of sewer rents and charges for water, telephone, electricity and other utilities and fuel; and any other items which are normally prorated in connection with similar transactions. Sellers agree to Buyer furnish Purchaser with such documents and then, other records as Purchaser reasonably requests in order for Purchaser to the extent calculate all adjustments and prorations pursuant to this Section 1.2.2 The amount of such rents prorations owed by Purchaser or other income relate Sellers pursuant to the period ending on or before the Closing, such rents or other income this Section 1.2.2 shall be paid to Seller Purchaser by Sellers or to Sellers by Purchaser, as the case may be, on the Closing Date and shall be treated as an adjustment to the Purchase Price paid by Purchaser to Sellers on the Closing Date. If current payments with respect to items to be prorated pursuant to this Section 1.2.2 are not ascertainable on the Closing Date, such payments shall be prorated on the basis of the most recently ascertainable ▇▇▇▇ therefor and shall be prorated between Sellers and Purchaser within ten sixty (1060) 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 Closing Date and any other refundable deposits paid by tenants to Seller pursuant to tenant leases a cash settlement shall be delivered made promptly thereafter on an item 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 Agreementitem basis.
Appears in 1 contract
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 DateCurrent real estate taxes, based 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 latest tax ▇▇▇▇ then available; personal property taxes and special assessments (collectivelyassessments, "Taxes") for the tax period then in effect collected rents, maintenance fees, solid waste disposal obligations 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 yearcontract obligations, 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 similar customarily proratable items shall be prorated as of the Closing Date with Buyer being responsible for and assuming payment for all amounts due for all periods after Closing and being credited with those due or collected for those periods prior to Closing on the day of Closing. Rents In the event either party collect rent of which a portion belongs to the other party, then the collecting party shall prorate such rent and deliver the other party's share within 10 days of receipt. The provisions of the Paragraph are intended to survive Closing. Seller shall have the right to collect any past due rents and Buyer shall cooperate with Seller in the collection process for such rents. All amounts payable by tenants at the Property as periodic estimates of the costs of the utilities, taxes, insurance, maintenance, repairs and other income, if any, collected by Buyer after operating expenses relating to the months or other applicable periods up through the month or other applicable period within which the Closing occurs shall be applied first adjusted and prorated as above. Seller shall not receive a credit for any estimates and expenses which are due and payable prior to Closing but not yet billed or paid, or delinquent at the time of Closing, but Buyer shall pay such amounts to Seller immediately upon receipt of any amounts which are billed, paid, or are delinquent with respect to the period after Closing. Buyer agrees to take all reasonable efforts to ▇▇▇▇ and collect any such sums due for periods prior to Buyer Closing which are not billable by the Seller prior to Closing and then, Seller hereby reserves all rights to take legal action against tenants at the Property for recovery of all such items applicable to the period before Closing to the extent such rents or other income relate to the period ending on or before the not paid after 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.
Appears in 1 contract
Prorations. The following Seller and the Assigning Subsidiaries shall bear all property and ad valorem tax liability with respect to the Purchased Assets if the lien or assessment date (the date on which the liability becomes fixed or assignable to the Purchased Assets) arises on or prior to the Cut-Off Date irrespective of the reporting and payment dates of such Taxes. Seller and the Assigning Subsidiaries shall be prorated between Buyer and Seller responsible for all other Taxes as of 11:59 p.m. levied by any foreign, federal, state or local time taxing authority in any jurisdiction with respect to the ownership, use or leasing of the day immediately preceding Purchased Assets for all periods (or portions thereof) on or prior to the Closing DateDate and Purchaser shall be responsible for all such Taxes with respect to the ownership, on the basis use or leasing 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") Purchased Assets 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 all periods (or any portion of the Propertyportions thereof) 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. Notwithstanding the foregoing sentence, all any property and ad-valorem tax liability not subject to the first sentence of which rentsthis Section 2.5 or any sales, other income and expenses use or similar Tax liability shall be prorated allocated between the Seller and the Assigning Subsidiaries and the Purchaser and the Purchaser Affiliates as of the Cut-Off Date. All payments to be made by Seller and the Assigning Subsidiaries in accordance with this Section 2.5 shall be made, to the extent then determinable, at the Closing with such payments deposited into escrow until due, or, to the extent not determinable as of the Closing, promptly following the determination thereof, with such payments deposited into escrow pursuant to Section 2.6 until due. Rents Purchaser shall have the right of review 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 approval of each member of the month in Seller Group's property Tax Returns and assessments and the right to contest any assessment for which such amounts were collectedPurchaser may be adversely affected. Buyer Seller shall incur no obligation cause each Assigning Subsidiary to Seller for Buyer's failure cooperate with Purchaser to collect such rentals or other income. All security and advance 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 Agreementcontest.
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Prorations. The following Except as otherwise provided herein, all prorations are to be apportioned at 11:59 p.m. on the day immediately preceding the Closing Date:
(a) Ad valorem taxes for the year of closing shall be prorated between Buyer and Seller at closing based upon November discount. If the closing occurs before the millage rate is fixed for the year, the proration of taxes shall be based upon the millage rate for the preceding year applied to the latest assessed valuation.
(b) Utilities, if any, shall be prorated as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on but paid by the basis parties outside of this escrow.
(c) Any rental or other income of the actual number of Property which is payable for periods thirty (30) days elapsed during the month in which or less prior to 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 (Date 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 Escrowwhich, 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 has not been received by Seller, shall receive all rents and be credited to Seller provided, however, that such rental or other income accruing, shall not be credited to Seller if it is due from tenants or other parties who also owe Seller amounts for periods more than thirty (30) days prior to the Closing Date and shall pay become property of Purchaser if and when such funds are collected.
(d) Any rental or other income of the Property which is payable for periods more than thirty (30) days prior to the Closing Date but which, as of the Closing Date, has not been received by Seller, shall not be credited to Seller but shall become the property of Purchaser if and when such is collected.
(e) Any rental or other income of the Property previously collected by Seller which represents payments attributable to the use of part or all other expenses accrued or incurred, in connection with of the ownership or operation of Property on or after the Closing Date, all of which rents, other income and expenses date shall be prorated as of credited to Purchaser.
(f) Seller acknowledges the Closing. Rents and other incomeresponsibility to pay to the Title Company in cash at the Closing all unpaid assessments against the Property, if any, collected by Buyer after existing as of the Closing Date whether due and payable before or after such date, so that the Title Company may remit such payments directly to the assessing agency. (Ad valorem taxes on real and personnel property 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 prorated 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 accordance with any prorations that are to be made after the Closing pursuant to this Agreementparagraph 5.05(a).)
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Sources: Purchase and Sale Agreement (Johnstown Consolidated Income Partners)
Prorations. The following shall be prorated between Buyer (a) All real and Seller as of 11:59 p.m. local time of personal property Taxes or similar ad valorem obligations levied with respect to the day immediately preceding Purchased Assets for any taxable period that includes the Closing Date and ends after 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 whether imposed 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, shall be prorated between Sellers and Purchaser as of 12:01 a.m. (Eastern time) on the Closing Date. If any Taxes subject to proration are paid by Purchaser, on the one hand, and Sellers, on the other hand, the proportionate amount of such Taxes paid (or in the event of a refund of any portion of such Taxes previously paid is received, such refund) shall be paid promptly by (or to) the other after the payment of such Taxes (or promptly following the receipt of any such refund).
(b) To the extent practicable, the parties hereto shall notify the gas, water, sewage treatment, telephone and electric utility companies that Purchaser shall be responsible for the payment of all obligations of the Business or the Purchased Assets incurred therefor on or after the Closing. Purchaser shall be responsible for the payment of all charges for such services incurred after the Closing. Sellers shall be responsible, as debtors-in-possession, for the payment of all charges for such services incurred from and after September 28, 2003 to (but excluding) the Closing Date. Sellers shall use commercially reasonable efforts to cause the telephone companies to render a bill for telephone service incurred from and after September 28, 200▇ ▇▇ (but excluding) the Closing Date, and Sellers shall be responsible for the payment of such bill.
(▇) ▇xcept as otherwise expressly provided herein, all installments of special assessments or other charges on or with respect to the Purchased Assets payable by Sellers for any period in which rentsthe Closing Date shall occur, including base rent, common area maintenance, royalties, all municipal, utility or authority charges for water, sewer, electric or gas charges, garbage or waste removal, and cost of fuel, shall be apportioned as of 12:01 am (Eastern Time) on the Closing Date, and each party shall pay its proportionate share promptly upon the receipt of any bill, statement or other income and expenses charge with respect thereto. If such charge▇ ▇▇ rates are assessed either based upon time or for a specified period, such charges or rates shall be prorated as of the Closing. Rents and other income, if any, collected by Buyer after 12:01 am (Eastern Time) on the Closing Date. If such charges or rates are assessed based upon usage of utility or similar services, such charges 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 prorated based upon meter readings taken 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 AgreementDate.
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Prorations. The following 6.7.1. Real property taxes, personal property taxes, assessments, rents, and CAM expenses shall be prorated through Escrow between Buyer and Seller as of Close of Escrow. All security deposits shall be paid over to Buyer. Rents and CAM expenses shall be approved by Buyer prior to Close of Escrow. Any delinquent rents attributable to periods prior to the Close of Escrow and which are collected by Buyer or Seller shall be retained by or paid to Seller; provided, however, that any amounts collected by Buyer or Seller shall be first applied to any rents then due to Buyer and, if collected by Seller, remitted to Buyer for such purpose. Seller shall have the right to pursue any Tenant for delinquent rent, but shall not (a) cause Tenant to be delinquent for their current rent or become financially unstable or (b) have the right to seek eviction of the Tenant by unlawful detainer or other means. Tax and assessment prorations shall be based on the latest available tax b▇▇▇. If after Close of Escrow either party receives any further or supplemental tax b▇▇▇ relating to any period prior to Close of Escrow, the recipient shall promptly deliver a copy of such tax b▇▇▇ to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax b▇▇▇ Buyer and Seller shall deliver to the taxing authority their respective shares of such tax b▇▇▇, prorated as of Close of Escrow. All prorations shall be based on a 360-day year. Any percentage rents due or paid under any of the Leases (“Percentage Rent”) shall be prorated between Buyer and Seller outside of Escrow as of the date of Close of Escrow on a Lease-by-Lease basis, as follows; (a) Seller shall be entitled to receive the portion of the Percentage Rent under each Lease for the Lease Year in which Close of Escrow occurs, which portion shall be the ratio of the number of days of said Lease Year in which Seller was Landlord under Lease to the total number of days in said Lease Year, and (b) Buyer shall receive the balance of Percentage Rent paid under each Lease for the lease Year. As used herein, the term “Lease Year” means the twelve (12) month period as to which annual Percentage Rent is owed under each Lease. Upon receipt by either Buyer or Seller of any gross sales reports (“Gross Sales Reports”) and/or any full or partial payment of Percentage Rent from any tenant of the Property, the party receiving the same shall promptly provide to the other party a copy of the Gross Sales Report and/or a check for the other party’s prorata share of the Percentage Rent within five (5) days of the receipt thereof. Nothing contained herein shall be deemed or construed to require either Buyer to Seller to pay to the other party its prorata share of the percentage rent prior to receiving the percentage rent from the Tenant, and the acceptance or negotiation of any check for Percentage Rent by either party shall not be deemed a waiver of that party’s right to contest the accuracy or amount of the Percentage Rent paid by the tenant. NOTWITHSTANDING ANYTHING TO THE CONTRARY, HOWEVER, THE PARTIES HAVE AGREED THAT SELLER SHALL GIVE BUYER A CREDIT AT CLOSING FOR PREPAID RENT IN THE AMOUNT OF THREE HUNDRED ONE THOUSAND, TWO HUNDRED SIX DOLLARS ($301,206.00).
6.7.2. All leasing commissions owing and tenant improvements with respect to the Real Property entered into prior to execution of the Agreement including, but not limited to, commissions for lease renewals and expansion options, shall be paid by Seller, and Seller shall indemnify and hold Buyer harmless for lease commission claims brought against the Real Property arising therefrom. All leasing commissions and tenant improvement costs for new Leases executed after the date of this Agreement shall be prorated between Buyer and Seller as their respective periods of 11:59 p.m. local time ownership bears to the primary term 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 incurrednew Lease subject, 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 thenevents, to the extent such rents prior approval of said Leases as herein provided by Buyer pursuant to Paragraph 7.3.
6.7.3. Seller agrees to indemnify and hold Buyer harmless from any and all liabilities, claims, demands, suits, and judgments, of any kind or other income relate to nature, including court costs and reasonable attorney fees (except those items which under the period ending terms of this Agreement specifically become the obligation of Buyer), brought by third parties and based on events occurring on or before the Closing, such rents or other income shall be paid Close of Escrow and which are in any way related to Seller within ten (10) days after end of the month in which such amounts were collectedProperty.
6.7.4. Buyer agrees to indemnify and hold Seller harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or nature, including court costs and reasonable attorneys fees, brought by third parties and based on events occurring subsequent to the Close of Escrow and which are in any way related to the Property. The provisions of this Section 6.7 shall 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 survive the Closing or, at Seller's option, credited to Buyer against the cash portion Close 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 AgreementEscrow.
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Prorations. The following shall be prorated between Buyer and Seller 15.1 Except as of 11:59 p.m. local time of the day immediately preceding the Closing Dateotherwise indicated, 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 (collectivelyrentals, "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 occursrevenues, 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 from the Property, real property taxes, operating expenses, assessments owing under any covenants, conditions or restrictions affecting the Property, if any, and all other items of expense and income shall be adjusted ratably as of 12:01 a.m. on the Closing Date ("Proration Date"). Real estate taxes and operating expenses which are reimbursable by Buyer tenants shall be prorated net of all tenants' liabilities for such items except to the extent tenants are delinquent with respect to such matters, in which case Purchaser shall receive a credit for such amounts. Except as provided in the preceding sentence, all real property taxes on the Property shall be prorated on an accrual basis so that Seller pays all amounts that relate to the period prior to the Closing Date, regardless of when such sums are billed, due or payable, and Purchaser pays all amounts relating to the period from and after the Closing Date. As used herein, "rentals" includes, but is not limited, fixed monthly rentals, additional rentals, percentage rentals, escalation rentals, operating cost pass-throughs and other sums and charges payable by tenants under the Leases. Purchaser shall be credited with an amount equal to the amount of any security deposits and other deposits, and any interest accrued thereon for the benefit of a tenant, owed to any tenant pursuant to the terms of any Lease. Seller shall be entitled to a credit for all transferable utility deposits transferred hereunder, if any, and all other utility deposits, if any, may be withdrawn by and refunded to Seller and Purchaser shall make its own replacement deposits for utilities as may be required by the respective utilities involved. Assessments, excluding regular ad valorem real estate taxes, payable in installments which are due prior to the Closing Date shall be paid by Seller. Assessments, if any, excluding regular ad valorem real estate taxes, payable in installments which are due subsequent to the Closing Date shall be paid by Purchaser. If the amount of any of the items to be prorated is not then ascertainable, the adjustments thereof shall be on the basis of the most recent ascertainable data. If any ongoing real estate tax contest has not been finalized as of the Closing Date, Purchaser and Seller agree that the tax bill existing prior to the conte▇▇, shall be the most recent data for the tax year being contested and Purchaser agrees to re-prorate such amount as it relates to the real estate tax proration for the current tax year to the extent such tax contest is successful. All other prorations will be final except as to delinquent rent referred to in Paragraph 15.2 below and as provided in Paragraph 15.3.
15.2 From and after the Closing Date, Seller shall not have the right to institute or continue any legal, equitable or other action, suit or arbitration or pursue any claims against any tenant for any matter relating to the Property or such tenant's Lease. Notwithstanding the foregoing, Seller shall have the right to institute and pursue an action against Precept Sports for any amount owing by Precept Sports to Seller. Seller shall not be entitled to any rentals received from Tenants after the Closing Date unless such Tenants are current in their rental obligations for periods occurring from and after the Closing Date. Delinquent rentals collected by Purchaser, net of the costs of collection (including reasonable attorneys' fees), shall be applied first to any amounts currently due and then to Buyer and thenamounts most recently overdue. Purchaser shall use its reasonable, good faith efforts, at no additional cost or expense to Purchaser, to collect all delinquent rentals owed to Seller. Within 180 days after the extent Closing Date, Purchaser shall deliver to Seller a reconciliation statement of such rents or other income relate amounts through the first 150 days after the Closing Date. Upon the delivery of such reconciliation, Purchaser shall deliver to Seller any such amounts received by Purchaser and owing to Seller net of reasonable collection costs. Purchaser shall provide Seller with any information reasonably necessary to verify the accuracy of the reconciliation statement and upon the verification of additional funds owing to Seller, Purchaser shall pay to Seller such amounts. This Paragraph 15.2 of this Agreement shall survive the Closing and the delivery and recording of the Deed.
15.3 All refunds attributable to the period ending on or before the Closing, such rents or other income shall be paid of time prior 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 Date in connection with any prorations that are ongoing real estate tax protests for the Property initiated by Seller prior to be made after the Closing shall remain the property of Seller and are not being assigned by Seller to Purchaser pursuant to this Agreement. In the event any such refunds are paid to Purchaser, Purchaser agrees to promptly remit all such sums to Seller. Purchaser agrees, at no cost or expense to Purchaser, to execute any documents reasonably requested by Seller in connection with such tax protests.
15.4 At Closing, Purchaser and Seller shall enter into an escrow agreement with the Title Company pursuant to which $10,346 of Seller's proceeds of sale ("First American Holdback") shall be deposited. The escrow agreement shall provide that the First American Holdback shall be delivered (i) to Seller if First American Bank exercises the renewal option contained in its lease on or before July 31, 1997 or (ii) to Purchaser if First American Bank fails to exercise such renewal option on or before July 31, 1997.
15.5 At Closing, Seller shall credit Purchaser with $11,507.75, representing one-month's rent on Suite 501 for January 1997.
15.6 Purchaser shall pay at Closing Purchaser's share of any leasing commission costs described on Exhibit R which are due and payable as of the Closing Date. Purchaser hereby assumes Seller's obligations under the Leasing Agreement dated September 1, 1992 between Seller and CB Commercial Real Estate Group, Inc. with respect to Purchaser's share of the leasing commissions described on Exhibit R which are not paid in full at Closing.
Appears in 1 contract
Prorations. The following shall Liability for real and personal property, ad valorem and other taxes, utility charges and deposits, rents, prepaid expenses, security services and any and all other expenses relating to the Purchased Assets and which are not treated elsewhere herein, will be allocated and prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding through the Closing Date, on Date to reflect 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 principle that Seller shall be based on the most recent official tax bills or notice of valuation available responsible for the fiscal year in which the Closing occurs, with due allowance all expenses arising prior 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 be responsible for all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation of Property arising on or after the Closing Date. To the extent that any of the items listed below in this Section 6.4 are paid by Seller prior to the Closing or are payable by Buyer or Seller after the Closing Date, all such items shall be apportioned as of which rentsthe Closing Date, other income such that Seller shall be liable for (and expenses shall reimburse Buyer to the extent that Buyer shall pay) that portion of any such item relating or attributable to periods prior to the Closing Date, and Buyer shall be liable (and shall reimburse Seller to the extent Seller shall have paid) that portion of any such item relating or attributable to periods on or after the Closing Date. Should any amounts to be prorated not have been finally determined on the Closing Date, a mutually satisfactory estimate of such amounts made on the basis of Seller’s records shall be used as a basis for settlement at Closing, and the amount finally determined will be prorated as of the ClosingClosing Date, and appropriate settlement made as soon as practicable after such final determination. Rents If as a result of any such settlement in accordance with the preceding sentence, either party is owed an amount from the other party, then the appropriate party shall make reimbursement for such amounts. Such prorated items shall include: (a) personal property, real estate, retail sales, occupancy and other incomewater taxes, if any, collected on or with respect to the Purchased Business, the Purchased Assets and/or Assumed Obligations notwithstanding the date of the assessment of such Taxes; (b) taxes, rent and other items paid or payable under any Assumed Contract or other contractual obligation to be assigned to or assumed by Buyer after hereunder, except as provided otherwise herein; (c) the Closing shall be applied first to amount of sewer rents and charges for water, telephone, electricity and other utilities and fuel; (d) insurance premiums of 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 policies acquired by tenants to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at Closing; and (e) any and all other expenses customarily subject to proration in connection with the Closing or, at Seller's option, credited sale and purchase of assets. Seller and Buyer agree to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall not be concerned furnish each other with any prorations that are such documents and other records as each party reasonably requests in order to be confirm all adjustment and proration calculations made after the Closing pursuant to this AgreementSection 6.4. The proration and adjustment process provided in this Section 6.4 shall also include an adjustment for security and other deposits heretofore paid by Seller to third parties.
Appears in 1 contract
Sources: Asset Purchase Agreement (Children S Books & Toys Inc)
Prorations. The following (a) (i) Rents, including, without limitation, percentage rents, if any, and any additional charges and expenses payable by tenants under Leases, all as and when actually collected; water, sewer and utility charges; amounts payable under any agreements or documents that are intended to remain in effect after the Closing; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property (including, without limitation, expenses prepaid by Seller and expenses already paid by Seller but which are being amortized over time by Seller and with respect to which Seller shall receive a credit at Closing in the amount of the prepaid or unamortized portion thereof), shall all be prorated between Buyer and Seller as of 11:59 p.m. local time 12:01 a.m. on the date of Closing (i.e., Buyer is entitled to the income and responsible for the expenses of the day immediately preceding the Closing Dateof Closing), on the basis of a 365-day year. Buyer shall pay or reimburse Seller for the actual number tenant improvement costs, leasing commissions, free rent and other concessions, as provided in Section 7.2 and Seller shall credit Buyer for the tenant improvements costs, leasing commissions, free rent and other concessions, as provided in Section 7.2. Anything herein contained to the contrary notwithstanding, there shall be no proration 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 years 2006 or 2007, payable in effect 2007 and insurance premiums (but only if 2008, respectively. Buyer is assuming Seller's insurance policy or policies). Proration of Taxes shall be based on purchase 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 Property subject to the extent permissible for said yearlien of such real property taxes, and shall pay such real property taxes when due with no recourse to the extent the tax bills do Seller. In addition, Buyer agrees not accurately reflect the actual Taxes assessed against to invoice, or attempt to collect from, any tenant of the Property who is a tenant under a Lease where Seller (or any portion rather than some prior owner of the Property) is the landlord for 2006 real property taxes payable in 2007. Seller will furnish the tenants under the Leases with the 2007 budget of expenses prior to December 31, 2006 and allocable either the invoices submitted by Seller to the period before tenants under 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 Leases for rent and other income accruedamounts due Seller on January 1, and 2007 shall pay all other expenses accrued or incurred, reflect the expense shown in connection with the ownership or operation of Property before the Closing Date, and Buyer shall receive all 2007 budget.
(ii) 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 and paid as provided in this Section 8.5(a). If a tenant shall specifically designate a payment as being attributable to a specific period of time or for a specific purpose, including, without limitation, for operating expenses or real estate tax payments which were not paid or were underpaid by such tenant or for reimbursement for work performed by Seller on the tenant’s premises, such payment shall be so applied. If there is no such designation, any amounts payment received from a tenant after Closing shall be deemed a payment of rent due to Buyer after the Closing until the tenant is current on rents and then, to sums due under the extent such rents or other income relate to the period ending applicable Lease on or before after the Closing, and then such rents or other income payments shall be paid to Seller within ten (10) days after end to the extent of the month in which such amounts were collectedany rent or other sums owing to Seller for periods prior to Closing. Buyer shall incur use reasonable efforts to collect such rents and other sums owing to Seller, but shall have no obligation to threaten or pursue any eviction or collection proceedings against any tenant. Seller for Buyer's failure retains the right to collect any such rentals rents and other sums (including payments due Seller on account of the reconciliation of 2006 expenses as provided in Section 8.5(a) (iii)) from tenants after Closing; provided, however, that Seller shall have no right to cause any such tenant to be evicted or other income. All security and to threaten any tenant with eviction or to exercise any other refundable deposits paid by tenants landlord remedy against such tenant other than 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▇▇▇ for collection.
Appears in 1 contract
Sources: Agreement of Purchase and Sale (Dividend Capital Total Realty Trust Inc.)
Prorations. The following 6.7.1. Real property taxes, personal property taxes, assessments, rents, and CAM expenses shall be prorated through Escrow between Buyer and Seller as of Close of Escrow. All security deposits actually received and presently held by Seller and not applied by Seller in accordance with the Leases and applicable law shall be paid over to Buyer. Any delinquent rents attributable to periods prior to the Close of Escrow and which are collected by Buyer or Seller shall be retained by or paid to Seller; provided, however, that any amounts collected by Buyer or Seller shall be first applied to any rents then due to Buyer and, if collected by Seller, remitted to Buyer for such purpose. Seller shall have the right to pursue any Tenant for delinquent rent, but Seller shall not intentionally cause a Tenant to become financially unstable or, without the consent of Buyer (which consent may not be unreasonably withheld, conditioned or delayed) seek eviction of the Tenant by unlawful detainer or other means. Tax and assessment prorations shall be based on the latest available tax ▇▇▇▇. If after Close of Escrow either party receives any further or supplemental tax ▇▇▇▇ relating to any period prior to Close of Escrow, the recipient shall promptly deliver a copy of such tax ▇▇▇▇ to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax ▇▇▇▇ Buyer and Seller shall deliver to the taxing authority their respective shares of such tax ▇▇▇▇, prorated as of Close of Escrow. All prorations shall be based on a 360-day year.
6.7.2. All leasing commissions and tenant improvement costs owing with respect to Leases of the Real Property entered into prior to execution of the Agreement (including but not limited to commissions for lease renewals and expansion options) shall be paid by Seller, but only to the extent that any portion of same are actually due and payable prior to the Close of Escrow. All leasing commissions and tenant improvement costs for new Leases executed after the date of this Agreement shall be prorated between Buyer and Seller as in accordance with their respective periods of 11:59 p.m. local time ownership during the primary term of the day immediately preceding the Closing Datenew Lease, 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 incurredsubject, 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 thenevents, to the extent such rents prior approval of said Leases by Buyer as provided in Paragraph 7.3.
6.7.3. Seller agrees to indemnify and hold Buyer harmless from any and all liabilities, claims, demands, suits, and judgments, of any kind or other income relate to nature, including court costs and reasonable attorney fees (except those items which under the period ending terms of this Agreement specifically become the obligation of Buyer), brought by third parties and based on events occurring on or before the Closing, such rents or other income shall be paid Close of Escrow and which are in any way related to Seller within ten (10) days after end of the month in which such amounts were collectedProperty.
6.7.4. Buyer agrees to indemnify and hold Seller Parties harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or nature, including court costs and reasonable attorneys fees, brought by third parties and based on events occurring subsequent to the Close of Escrow and which are in any way related to the Property. The provisions of this Section 6.7 shall 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 survive the Closing or, at Seller's option, credited to Buyer against the cash portion Close 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 AgreementEscrow.
Appears in 1 contract
Prorations. (a) The following shall be prorated between Buyer Parties will each execute and Seller as of 11:59 p.m. local time of the day immediately preceding deliver to Escrow Agent for the Closing Date, on a closing statement for each Property setting forth 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 accruedPurchase Price, and shall pay all other expenses accrued or incurredclosing credits, in connection with the ownership or operation of Property before the Closing Dateprorations, charges, costs and Buyer shall receive all rents and other income accruingadjustments contemplated by this Agreement, 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 allocable to such Property. All prorations will be prorated calculated as of the Closing. Rents Closing Date by Escrow Agent, based upon the latest available information, with income and other income, if any, collected by Buyer after expense for the Closing shall be applied first Date being allocated to Buyer. Buyer will receive a credit for any amounts due to Buyer and then, to the extent such rents rent paid or other income relate to payable by Tenant for the period ending on or before beginning with and including the Closing, such rents or other income shall be paid to Seller within ten (10) days after end Closing Date through and including the last day 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 incomeClosing occurs. All security other credits and charges to Buyer and Seller will be similarly prorated as of the Closing Date. Real estate taxes and assessments, if not the sole responsibility of Tenant under the respective Lease, will be prorated on an accrual basis and, if actual amounts are not available, will be based upon the current valuation and latest available tax rates or assessments. All pre-paid or abated rents or deposit amounts (including any tax or expense escrows and any other refundable deposits security deposits) held by Seller under a Lease, if any, will be paid by tenants to Buyer in the form of a credit against the Purchase Price. Seller pursuant will timely perform any tax or expense reconciliations that may be required under the Lease to tenant leases shall the extent applicable to Seller’s period of ownership. If Closing occurs on or after the twentieth (20th) day of the calendar month, the monthly scheduled rent amount(s) payable to the landlord under each respective Lease for the full calendar month following the month in which Closing occurs will be delivered by certified funds credited to Buyer at Closing (and, in such event, Seller will be Master Purchase and Sale Agreement Walgreens—10 Pack entitled to receive and retain such credited amounts when paid by Tenant). If after Closing either Party receives any rents or other amounts that properly belong to the other Party based upon the Closing orprorations, at Seller's optionsuch amounts will be immediately remitted to such other Party.
(b) If after Closing either Party discovers any errors, credited to Buyer against or receives additional information, indicating that the cash portion of prorations were inaccurate, such Party will promptly notify the Purchase Price at other and the ClosingParties will correctly re-prorate the amounts in question. Escrow Holder shall not No such correction will be concerned with any prorations that are to be made required later than twelve (12) months after the Closing pursuant Date unless prior to such date the Party seeking the correction has given a written notice to the other Party specifying the nature and basis for such correction; provided, however, that if a correction is sought because current tax or assessment bills for a Property were not available as of Closing, the correction period with respect to the closing proration of such taxes or assessments for that Property will if needed continue beyond such 12-month period until thirty (30) days after Buyer’s receipt of the applicable bills. In the event of any re-proration under this AgreementSection, the Party owing funds will within thirty (30) days after determination remit to the other Party the amount shown to be due. The provisions of this Section 12 shall survive Closing.
Appears in 1 contract
Sources: Master Purchase and Sale Agreement (Cole Credit Property Trust V, Inc.)
Prorations. The following shall items relating to the Premises are to 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 with Seller given credit for and charged for the Closing occurs: general Date:
(a) All real estate and special county and city real personal property taxes due and special assessments (collectively, "Taxes") payable 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 occurs shall be made for the maximum available discount or other exemptions to the extent permissible for said year, prorated between Seller and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion Purchaser as 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 Seller shall receive pay all back real estate and personal property taxes to and including the Closing Date.
(b) All collected rents (not including Prepaid Rents), income and revenues of the Premises; all operating expenses of the Premises; all utility charges; and all assessments or liens for governmental assessments shall be prorated between Seller and Purchaser as of the Closing Date. All uncollected Rents prior to the Closing Date (the "Delinquent Rents") shall remain Seller's property and shall not be prorated. All Prepaid Rents shall be delivered to Purchaser at Closing without proration. Purchaser agrees to make a good faith effort and attempt, for a period of three (3) months after Closing, to collect Delinquent Rents and to pay such Delinquent Rents to Seller promptly after collection by Purchaser; provided, however, that nothing contained herein shall operate to require Purchaser to institute a lawsuit to recover any such Delinquent Rents or to terminate any Lease. In the event Purchaser is successful in collecting sums from any Residents under the Leases and such sums consist of both Delinquent Rents and current rents, the amount so received by Purchaser shall: (i) first be applied to rents and other charges under the Leases attributable to any period after the Closing Date which are due on the date of receipt; and (ii) then to Delinquent Rents, which amounts, if any, shall be paid to Seller. If the Purchaser incurs collection costs not recovered from a Resident any other sums recovered from the Resident including sums for Delinquent Rents shall be allocated to reimburse such costs on a pro-rata basis. No portion of Delinquent Rents attributable to a particular Resident shall be applied against the rents or Delinquent Rents attributable to another Resident, or to the expenses incurred by Purchaser in collecting such rents or Delinquent Rents from such other Resident. Seller shall be entitled to continue to prosecute any and all legal actions commenced by Seller prior to the Closing Date against any Resident or Residents owing Delinquent Rents. Purchaser agrees that its obligations hereunder with respect to uncollected Rents shall survive Closing of the transactions contemplated under this Agreement for a period of six (6) months after Closing. With respect to operating expenses for salaries and wages of employees, employees' vacation pay, sick leave, employees' bonuses, if any, welfare fund and union dues, if any, federal income accruingtax on employees' wages withheld at the source, federal and/or state payroll taxes, social security taxes and all state, municipal county or other employee based or related taxes, the proration as of the Closing Date shall pay all other expenses accrued or incurredbe solely with respect to those employees, if any, whom Purchaser, in connection with the ownership or operation of Property on or its sole discretion, elects to continue in such employment from and after the Closing Date; provided, all however, that in no event shall such employee compensation prorations chargeable to Seller pursuant to this Subsection exceed the amounts for which Seller would have been liable had such employee been terminated as of which rentsthe Closing Date and not re-hired by Purchaser; and there shall be no proration with respect to any employee not so continued by Purchaser, other income such obligation being an operating expense prior to the Closing Date and expenses shall payable by Seller.
(c) All of the above-listed items that are required to be prorated as of the Closing. Rents Closing Date and other income, if any, collected by Buyer after that are not subject to an exact determination at the time of Closing shall be applied first to estimated by the parties. When any amounts due to Buyer and then, to the extent such rents or other income relate to the period ending on or before item so estimated is capable of exact determination after the Closing, such rents or the party in possession of the facts necessary to make the determination shall send the other income party a detailed statement of the exact determination so made, and the parties shall be paid to Seller adjust the prior estimate within ten (10) days after end both parties have received said statement. The cash payment due to Seller at Closing shall be increased or decreased by proration of the month foregoing items, as appropriate.
(d) All Deposits, and any interest thereon that would be owed to any Residents by law or contract if the residency expired without default on the Closing Date, as shown on the updated rent roll to be delivered by Seller to Purchaser at the Closing, shall be transferred or credited to Purchaser, in which such amounts were collectedfull, without proration, on the Closing Date, and Purchaser shall indemnify and hold Seller harmless from any liability with reference thereto accruing from and after the Closing Date. Buyer shall incur no obligation Purchaser agrees to Seller for Buyer's failure to collect such rentals or other incomehold the security deposits in accordance with the provisions of the Leases and of applicable law. All security and any other refundable deposits paid by tenants Prepaid Rents relating to Seller pursuant to tenant leases occupancy after the Closing Date shall be delivered by certified funds to Buyer Purchaser at Closing, without proration.
(e) To the extent the same are not the direct responsibility of Residents under Leases, all other income and expenses of the Premises shall be prorated as of 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 AgreementDate.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Homes for America Holdings Inc)
Prorations. The Seller and Purchaser agree to the following prorations and allocation of costs in connection with this Agreement and the transactions contemplated hereby:
(a) All of the following operating costs of the Purchased Assets: (i) utilities, and (ii) any ordinary course of business service agreements for the Premise, each of which shall be allocated between Seller and Purchaser based upon the Effective Time, such that Seller shall pay that portion of the operating costs pertaining to that period of time up to and including the Effective Time, and Purchaser shall pay that portion of the operating costs from and after the Effective Time.
(b) Sales taxes, deed tax or transfer taxes, if any, imposed in connection with the transactions contemplated hereby, shall be paid by Seller.
(c) Real estate taxes due and payable in the year prior to the year of Closing and all prior years, including any real estate taxes otherwise payable during any such year which may have been deferred, shall be paid by Seller. Real estate taxes shall be prorated between Buyer for those taxes which are due 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 payable 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 calendar year in which the Closing Date occurs, with due allowance such that Seller shall pay that portion of those taxes pertaining to that period of time up to and including the Closing Date, and Purchaser shall pay that portion of such taxes from and after the Closing Date. In the event that, as of the Closing Date, the actual tax ▇▇▇▇ for the year of Closing is not available and the amount of taxes to be made for prorated as aforesaid cannot be ascertained, the maximum available discount or other exemptions to rates, millages and assessed valuation of the extent permissible for said previous year, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (with known changes, shall be used. On 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 Seller shall pay all special assessments, whether or not then due, levied or pending against the Property as of the Closing Date; or, at Purchaser’s option, Purchaser shall receive all rents a credit at Closing for the amount thereof against the Purchase Price. If the actual amount of any pending or other assessments is not known at the Closing Date, the Title Company shall withhold in escrow from Seller’s proceeds at closing an amount equal to 125% of the estimated amount thereof. When the amount of said assessments becomes fixed and other income accruingpayable, the Title Company shall apply said escrow in payment of the assessments, returning any surplus to Seller; provided that if the amount withheld in escrow is insufficient to pay the assessments, Seller shall immediately pay, and shall be liable for the immediate payment of, any such deficiency. Purchaser shall be responsible for the payment of any special assessments which are not the responsibility of Seller pursuant to this Section.
(d) Seller and Purchaser each shall pay all one-half of the fee charged by the Title Company for handling the Real Estate portion of the Closing. All other expenses accrued costs associated with closing the Real Estate portion of the transaction not specifically addressed herein shall be allocated in the manner customary for commercial real estate transactions in the Minneapolis-St. ▇▇▇▇ metropolitan area. All prorations and payments to be made under the foregoing provisions shall be made on the basis of a written statement or incurred, statements agreed upon by Seller and Purchaser or in connection accordance with the ownership closing statement for the Real Estate executed and delivered at Closing. If not determined at or operation of Property on or before Closing, the parties will endeavor to determine the amounts which are subject to this Section, and effectuate the pro-ration, within sixty (60) days after the Closing Date. At that time, all of which rentsor as soon thereafter as the pro-rations have been completed, other income and expenses the party who owes a net amount based on the pro-rations 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, promptly pay said amount to the extent other party; provided that if such rents or other income relate amount is owed by Seller, it may be satisfied by a joint instruction of Purchaser and Seller to the period ending on or before Escrow Agent to release such amount to Purchaser from 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 AgreementAccount.
Appears in 1 contract
Prorations. The following Purchase Price shall be increased or decreased as required to effectuate the proration of revenues and expenses or liabilities, as set forth below. All revenues and all expenses and liabilities of Seller arising from the operation of the Station and related to the Purchased Assets, including tower rental, License fees (to the extent the corresponding License is assignable), utility charges, real property and personal property Taxes and assessments levied against the Purchased Assets, property and equipment rentals, sales and service charges, and subject to the provisions of Section 6.6, employee salaries, wages and commissions payable to Transferred Employees (including bonuses, vacation pay and personal leave pay), and employment-related Taxes on account thereof, shall be prorated between Buyer and Seller as of 11:59 p.m. local time of in accordance with 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, principle that Seller shall receive all rents revenues and other income accruedshall be responsible for all expenses, costs, and shall pay all other expenses accrued or incurred, in connection with liabilities allocable to the ownership or operation operations of Property before the Closing DateStation for the period prior to the Effective Time, and Buyer shall receive all rents revenues and other income accruingshall be responsible for all expenses, costs, and shall pay all other expenses accrued or incurred, in connection with obligations allocable to the ownership or operation operations of Property on or the Station for the period after the Closing DateEffective Time, all of which rents, other income and expenses subject to the following:
(i) There shall be prorated as no adjustment or proration for, and Seller shall remain solely liable with respect to, any Contracts not included in the Assumed Contracts and any other obligation or liability not being assumed by Buyer in accordance with Section 2.5. An adjustment and proration shall be made in favor of Buyer to the Closingextent that Buyer assumes any liability under any Assumed Contract to refund (or to credit against payments otherwise due) any security deposit or similar prepayment paid to Seller by any lessee or other third party. Rents An adjustment and other incomeproration shall be made in favor of Seller to the extent Buyer receives the right to receive a refund (or to a credit against payments otherwise due) under any Assumed Contract to any security deposit or similar pre-payment paid by or on behalf of Seller.
(ii) An adjustment and proration shall be made in favor of Seller for the amount, if any, collected by which the fair market value of the goods or services to be received by the Station under its trade or barter agreements as of the Effective Time exceeds by more than Ten Thousand Dollars ($10,000.00) in the aggregate the fair market value of any advertising time remaining to be run by the Station as of the Effective Time. An adjustment and proration shall be made in favor of Buyer to the extent that the amount of any advertising time remaining to be run by the Station under its trade or barter agreements as of the Effective Time exceeds by more than Ten Thousand Dollars ($10,000.00) in the aggregate the fair market value of the goods or services to be received by the Station as of the Effective Time.
(iii) An adjustment and proration shall be made in favor of Seller for the amount, if any, of prepaid expense, the benefit of which accrues to Buyer hereunder, and other current assets acquired by Buyer after the Closing shall be applied first to any amounts due to Buyer and then, hereunder which are paid by Seller to the extent such rents or prepaid expenses and other income current assets 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 AgreementEffective Time.
Appears in 1 contract
Sources: Asset Purchase Agreement (Sinclair Broadcast Group Inc)
Prorations. The following prorations shall be prorated made between Seller and Buyer and Seller as at the Close of 11:59 p.m. local time of the day immediately preceding the Closing DateEscrow, based on the basis of the actual number of days elapsed during in the month in which the Closing occurs: general occurs and special county a three hundred sixty-five (365) day year:
(a) Real property taxes, utility fees (pursuant to the Utility Escrow Agreement referred to in Sections 5.2 and city real property taxes 5.3 of this Agreement) and special assessments (collectivelydeposits, "Taxes") common area maintenance expenses, operating expenses for the tax period then in effect Property, personal property taxes, if any, with respect to the Personal Property, assessments, sewer charges, and insurance premiums (but only if Buyer is assuming Seller's insurance policy or policies). Proration of Taxes other costs and expenses attributable to the Property shall be based on prorated as of the most recent official tax bills Close of Escrow. To the extent any expenses or notice of valuation available charges for the fiscal year Property are paid by tenants to the landlord under the Leases on an estimated basis, for which a future reconciliation of actual to estimates is to be performed, Seller and Buyer shall make an adjustment at Closing for the applicable reconciliation period in which the Closing occurs, with due allowance to be made occurs based on a comparison of the actual expenses for the maximum available discount or other exemptions Property paid by Seller as of the Closing Date to the estimated expenses for the Property paid by tenants to Seller. The adjustment for such reconciliation period shall be calculated as follows: To the extent permissible the aggregate amount of the estimated payments that a tenant has made to Seller as of the Closing Date exceeds such tenant’s share of the actual expenses for said yearthe Property paid by Seller as of the Closing Date (after deducting such tenant’s applicable base year amounts), Buyer shall receive a credit for the excess tenant payments. To the extent the aggregate amount of the estimated payments that a tenant has made to Seller as of the Closing Date is less than such tenant’s share of the actual expenses for the Property paid by Seller as of the Closing Date (after deducting such tenant’s applicable base year amounts), Seller shall receive a credit when and to the extent such payments are collected, to the tax bills do not accurately reflect extent Seller is entitled to receive from such tenant payments of such shortfall under the actual Taxes assessed against terms of such tenant’s Lease. Subsequent to Closing, Buyer shall assume all rights and obligations to collect from or pay to Lease tenants any reconciliation amounts. Any prorations based on an estimated basis shall be subject to reproration upon the final determination of such amounts.
(b) All rents, additional rent, income, and other amounts payable to the owner or landlord of the Property (or any portion collectively, “Property Rent”) shall also be prorated as of Close of Escrow. Accrued but unpaid Property Rent existing as of the Property) and allocable either Closing shall not be prorated; provided, however, that Buyer shall use reasonable efforts to the period before the Closing collect such accrued but unpaid Property Rent (but shall not be obligated to institute litigation or to the period incur expenses other than nominal expenses), from and after the Closing, then and Buyer shall remit any Property Rent received from and Seller after the Closing attributable to the period prior to the Closing immediately to Seller. For purposes of this Agreement, any payments received by Buyer after Closing from a tenant whose Property Rent was due and unpaid as of the Closing, shall adjust be applied first toward Property Rent due for the actual Taxes between Buyer month of Closing; second, toward Property Rent due for any period after the month of Closing; and Sellerthen, outside to the extent of Escrowany excess after such applications, shall be deemed Property Rent received on account of the period prior to the month of Closing, up to the amount of the delinquency and, as soon as reasonably possible following provided above, shall be remitted immediately by Buyer to Seller. Seller hereby reserves its rights under the Closing. In addition Leases to the foregoing apportionments, Seller shall receive all rents and other income accrued, and shall pay all other expenses accrued or incurred, extent any tenant under any of the Leases is delinquent in connection with the ownership or operation payment of Property before Rent thereunder as of the Closing Date, and Buyer shall receive all from and after the Closing Date, reasonably cooperate with Seller to the extent necessary to enable Seller to pursue recovery of the delinquent Property Rent (except that Buyer shall have no obligation to involve itself in any manner in any litigation instituted by Seller). Notwithstanding anything contained herein to the contrary, Seller shall have the right to institute legal proceedings to attempt to recover such delinquent amounts only if Buyer has failed to collect such delinquency within seventy-five (75) days after the Closing Date; provided, however, no such proceeding shall include the remedy of dispossessing such tenant(s) from its leased premises in the Property.
(c) Advance rents (which have not been applied pursuant to the terms of the Leases) shall be transferred or credited to Buyer at Closing. The full amount of the security deposits paid under the Leases shall be credited to Buyer at Closing in the form of a reduction in the Purchase Price.
(d) Any tenant improvement or leasing commission costs or referral fees incurred by Seller from the Effective Date through the Closing Date with respect to new leases or other rental agreements (and other income accruingrenewals, and extensions or expansions under existing leases or rental agreements) executed from the Effective Date through the Closing Date shall pay all other expenses accrued or incurredinitially be paid by Seller if such payments are due prior to Closing but, except for an amount equal to $115,781 in connection with tenant ▇▇▇▇▇▇▇▇▇ which Buyer shall be responsible to pay and for which Seller shall provide a partial credit to Buyer at Closing in the ownership amount of $19,312, Buyer shall reimburse Seller for such costs/payments on the Closing Date. With respect to any lease or operation other rental agreement entered into after the Effective Date, Buyer will only be responsible for such costs or fees if Buyer approves such lease or other rental agreement in writing, prior to lease execution, such approval not to be unreasonably withheld, conditioned or delayed. Buyer shall provide its written consent or rejection of Property any proposed lease (or amendment, expansion modification or other rental agreement) within three (3) business days of receipt of a copy of the proposed lease terms. Buyer’s failure to provide such written rejection or consent within such three (3) business day period shall be deemed approval of the proposed lease and the associated tenant improvement costs and leasing commission fees.
(e) Buyer and Seller agree to prorate real estate taxes and assessments for the period for which such taxes are assessed, regardless of when payable. Any taxes to be paid at or prior to Closing shall be prorated based upon the amounts actually paid, with Buyer being charged and Seller being credited at Closing with that portion of such taxes and assessments which relates to the period on or after the Closing Date. If taxes and assessments for the fiscal year in which Closing occurs have been determined but have not been paid before Closing, all of which rents, other income and expenses Seller shall be prorated as charged and Buyer credited at Closing with an amount equal to that portion of the Closing. Rents such taxes 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 assessments which relates to the period ending on or before the Closing Date and Buyer shall pay the taxes and assessments prior to their becoming delinquent. If the actual taxes and assessments are not known at Closing, such rents or other income the proration shall be based upon the most recent assessed values and tax rates. To the extent that the actual taxes and assessments paid to Seller differ from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves within ten sixty (1060) 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 issuance 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 Agreementfinal tax bills.
Appears in 1 contract
Prorations. The following shall are to be prorated apportioned between Buyer Purchaser and Seller as of 11:59 p.m. local time 12:01 a.m. on the Closing Date (provided, however, that in the event that any of the day immediately preceding Leases covering all or part of the Closing DateProperty provide that the tenants or subtenants thereunder are responsible for direct payment of any of the expenses, such expenses shall not be apportioned as between Seller and Purchaser):
(a) Property taxes in accordance with the practice prevailing in the city, county and state where the Property is located;
(b) Rents if, as and when collected, including base rents, escalations, additional rent and percentage rent (“Rents”) as further described below;
(c) Water, sewer, gas, electric, vault and fuel charges, if any; Purchase and Sale Agreement Des ▇▇▇▇▇ Corners
(d) Operating expenses for the Property, including sums due or already paid pursuant to any Service Agreements (excluding any prepaid or upfront monies paid to Seller under any Service Agreements) that are assigned to Purchaser;
(e) Amounts paid pursuant to all transferable licenses and permits, on the basis of the actual number of days elapsed during the month in fiscal year for which the Closing occurs: general and special county and city real property taxes and special assessments levied;
(collectively, "Taxes"f) Assessments but only 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 annual installment for the fiscal year in which Closing occurs; and
(g) Any rollback taxes or subsequent assessments due to change in use or ownership shall be paid by Purchaser. Notwithstanding anything contained herein, any real estate tax refunds or rebates which apply to periods before the Closing Date shall remain the property of Seller, and Seller shall have the right to file and pursue any appeals attributable to Seller’s period of ownership of the Property (including any appeal of taxes for the year in which Closing occurs) with respect to tax assessments for the Property. Purchaser shall cooperate with Seller in connection with any such appeal. If Seller is successful in any such tax appeal related to the calendar year in which Closing occurs, with due allowance Purchaser and Seller shall share in the cost of such appeal and rebates or refunds in the same proportion as the proration of real estate taxes set forth on the Seller Closing Statement executed by Seller and the Purchaser Closing Statement executed by Purchaser at Closing; provided, however, Purchaser shall only be required to be made for share in the maximum available discount costs of any such appeal if the appeal results in an actual reduction or other exemptions to the extent permissible for said year, cost savings and to the extent that the savings exceed the cost of such appeal. Seller will also calculate and apply to the Property’s tenants’ accounts credits and charges if and where applicable. Seller will provide copies of this calculation, along with copies of the ▇▇▇▇▇▇▇▇, to Purchaser, along with any balance due to Purchaser. If Purchaser is successful in any such tax bills do not accurately reflect the actual Taxes assessed against the Property (or any portion appeal attributable to Seller’s period of ownership of the Property) and allocable either to the period before the Closing or to the period after the Closing, then Buyer Purchaser and Seller shall adjust share in the actual Taxes between Buyer cost of any such appeal and Sellerrebates or refunds in the same proportion as the proration of the real estate taxes set forth on the Seller Closing Statement executed by Seller and the Purchaser Closing Statement executed by Purchaser at Closing; provided, outside of Escrow, as soon as reasonably possible following the Closing. In addition to the foregoing apportionmentshowever, Seller shall receive all rents only be required to share in the costs of any such appeal if the appeal results in an actual reduction or cost savings 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 that the savings exceed the cost of such rents or other income relate appeal. Purchaser will also calculate and apply credits and charges to the period ending on or before the Closingtenant’s accounts, such rents or other income shall be paid to Seller within ten (10) days after end where applicable. Purchaser will provide copies of this calculation, along with copies of the month in which such amounts were collected. Buyer ▇▇▇▇▇▇▇▇, to Seller, together with any balance due to Seller.
(h) The provisions of this Section 11.2 shall incur no obligation to Seller for Buyer's failure to collect such rentals or other income. All security survive Closing 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 delivery of the Purchase Price Deed and shall not be deemed merged into the Deed or any instrument of conveyance delivered at the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Cohen & Steers Income Opportunities REIT, Inc.)
Prorations. (a) The following shall Parties will each execute and deliver to Escrow Agent for the Closing a closing statement setting forth the Purchase Price and all closing credits, prorations, charges, costs and adjustments contemplated by this Agreement. All prorations will be prorated between Buyer and Seller calculated as of 11:59 p.m. local time of the day immediately preceding the Closing DateDate by Escrow Agent, on based upon the basis latest available information, with income and expense for the Closing Date being allocated to Buyer. Buyer will receive a credit for any rent paid by the Tenants for the period beginning with and including the Closing Date through and including the last day 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 occurs (collectivelyincluding any monthly estimates of common area maintenance charges, "Taxes") for the tax period then in effect and taxes, 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 similar expenses to the extent the tax bills do Tenants pay monthly). Buyer shall not accurately reflect receive a credit at Closing for any rent which is payable for the actual Taxes assessed against the Property (or any portion month of the Property) and allocable either to the period before the Closing or to the period after the Closing, but has not then Buyer and Seller shall adjust the actual Taxes between Buyer and Seller, outside been paid by a Tenant as 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 in such event the Party that receives such rent when paid by such Tenant, shall immediately remit to the other Party such other Party's respective portion of such rent, prorated as of the Closing Date as provided above. All other credits and charges to Buyer and Seller will be prorated as of the Closing Date. Real estate taxes and assessments, if not the sole responsibility of the applicable Tenant under its Lease, will be prorated on an accrual basis and, if actual amounts are not available, will be based upon the current valuation and latest available tax rates or assessments. All pre-paid or abated rents or deposit Purchase and Sale Agreement ▇▇▇▇▇▇ Marketplace, Lawton, Oklahoma amounts (including any tax or expense escrows and any security deposits) held or owed by Seller under the Leases, if any, will be paid to Buyer in the form of a credit against the Purchase Price. If after Closing either Party receives any rents or other amounts that properly belong to the other Party based upon the Closing prorations, such amounts will be immediately remitted to such other Party.
(b) If after Closing either Party discovers any errors, or receives additional information, indicating that the prorations were inaccurate, such Party will promptly notify the other and the Parties will correctly re-prorate the amounts in question. No such correction will be required later than twelve (12) months after the Closing Date unless prior to such date the Party seeking the correction has given a written notice to the other Party specifying the nature and basis for such correction; provided, however, that if a correction is sought because current tax or assessment bills for the Property were not available as of Closing, the correction period with respect to the closing proration of such taxes or assessments will continue until thirty (30) days after Buyer's receipt of the applicable bills. In the event of any re-proration under this Section, the Party owing funds will within thirty (30) days after determination remit to the other Party the amount shown to be due. The provisions of this Section shall receive all rents and other income accruing, and shall pay all other expenses accrued or incurred, in connection with the ownership or operation survive Closing.
(c) For a period of Property on or twelve (12) months after the Closing Date, all Seller will perform any reconciliations required under the Leases with respect to Seller’s period of which rentsownership for common area maintenance charges, other income taxes, insurance or similar expenses; and expenses shall Seller will be prorated as of the Closing. Rents and other income, if any, collected by Buyer after the Closing shall be applied first (i) responsible to pay any amounts due the Tenants, or (ii) entitled to Buyer and thenreceive any amounts owed by the Tenants, to as a result of any such reconciliation. The provisions of this Section shall survive Closing.
(d) If the extent such rents or other income relate to the period ending on or before the actual rent commencement date for any Lease has not occurred by Closing, such rents or but has been determined by Closing and is no longer subject to any conditions precedent that have not been satisfied (other income shall be paid to than the mere passage of time), Seller within ten (10) days after end of the month in which such amounts were collected. will provide 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 with a credit against the cash portion of the Purchase Price at Closing equal to any lease revenue (i.e., base rent, plus taxes, insurance, common area maintenance charges and any other payments required by Tenants under the Closing. Escrow Holder shall not be concerned with Leases) that would have been due under such Lease, without regard to any prorations that are to be made after free rent periods or rental abatements and other inducements, for the period from the Closing pursuant Date through the actual date of rent commencement under such Lease had the obligation to this Agreementcommence paying rent been in effect on the Closing Date.
(e) All unpaid leasing costs relating to the Leases, including, without limitation, tenant improvement costs or allowances, free rent periods or rental abatements, concessions and other inducements and all brokerage commissions relating to the Leases are the obligation of Seller and shall be paid by Seller at Closing with evidence of payment delivered to Buyer at Closing or Buyer shall receive a credit against the Purchase Price for any such amount(s) not paid.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Cole Credit Property Trust V, Inc.)
Prorations. The following (a) Rental and lease charges related to the Section 365 Agreements, current taxes related to the Real Property Leases or the Personal Property, or other similar items of expense, and utilities related to the Real Property Leases or the Personal Property (collectively, the "Proration Items") shall be prorated between Seller and Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on the basis . All Proration Items that represent obligations due or accrued in respect of the actual number of days elapsed during the month in which periods prior to 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 paid in full 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 yearotherwise satisfied by Seller, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property all Proration Items that represent obligations due and accrued in respect of periods after Closing shall be paid in full or otherwise satisfied by Buyer.
(or any portion of the Propertyb) 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 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 practicable after the Closing Date, representatives of Seller and Buyer shall examine all of which rents, other income relevant books and expenses shall be prorated records as of the Closing. Rents and other income, if any, collected by Buyer after Closing Date in order to make 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 determination of the month in which such amounts Proration Items that 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 not settled at the Closing. Escrow Holder Payments for taxes related to the Real Property Leases and the Personal Property (the "Tax Item") shall not be concerned with any prorations determined based on the assumption that the tax obligations for the current year are to one hundred and five percent (105%) of the tax obligations for the prior year. The parties expressly acknowledge and agree that the determination of the Tax Items based on such assumption shall be final and binding on the parties, regardless of the actual taxes that will be due and owing once the current year's tax bills are rendered. Payments in respect of Proration Items shall be made to the appropriate party by wire transfer within five business days after determination.
(c) In the Closing pursuant event that any party (the "Payor") pays a Proration Item to which the other party (the "Payee") is obligated in whole or in part, the Payor shall present to the Payee evidence of payment and a statement setting forth the Payee's proportionate share of such Proration Item, and the Payee shall promptly pay such share to the Payor. In the event that any party receives payment of a Proration Item to which the other party is entitled in whole or in part, under this Agreement, the receiving party shall promptly pay the other party's share to the other party.
Appears in 1 contract
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"a) 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 occurstaxes, with due allowance to be made for the maximum available discount or other exemptions to the extent permissible for said yearutilities, 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 Closingrentals, 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 revenues and other income, if any, from the Property and any other charges which are not required to be paid by directly by the tenants shall be prorated as of 11:59 p.m. on the day prior to the Closing Date (“Proration Date”). There shall be no proration of any insurance premiums with respect to the Property, nor any assumption of insurance coverage by Buyer. All real and any personal property taxes that are required to be prorated shall be prorated to the Proration Date. Each party shall pay their own attorneys’ fees. Lease income and all other income and revenue of the Property shall be prorated as of the Proration Date based upon the rental income and revenue actually collected by Buyer for the month in which Closing occurs. Any rental delinquencies paid after the Closing shall be applied first to any amounts due current delinquent rents owed to Buyer, then to current rents owed to Buyer, and then to delinquent rent owed to Seller for the period prior to Closing. Security deposits, prepaid rents, and all other deposits and fees shall be transferred to Buyer in cash at Closing. Operating Expenses and thenother pass through costs under the Tenant Leases, if any, shall also be prorated at the Proration Date based upon Buyer’s and Seller’s good faith estimates thereof, provided that upon final reconciliation of such charges, Seller will be responsible for any refunds due tenants for overpayments due for period prior to Closing and Seller shall be entitled to collect from tenants any underpayments due for periods prior to Closing. Any revenue or expense amount which cannot be ascertained with certainty as of Closing shall be prorated based upon the parties’ reasonable estimation, and shall be reconciled within thirty (30) days of Closing or as soon thereafter as the precise amounts can be ascertained. Either party owing the other party money based upon the final reconciliation shall promptly pay it to the extent such rents or other income relate to party, which amount shall bear interest at the period ending on or before rate of 12% per annum from the Closing, such rents or other income shall be paid to Seller within ten (10) date 10 days after end written demand for such payment is made by the party entitled to such payment.
(b) Seller shall pay any real estate excise tax in connection with this sale, and Buyer shall pay the recording fees for Seller’s deed.
(c) Seller shall pay the premium for an owner’s standard coverage owner’s policy of the month in which such amounts were collectedtitle insurance. Buyer shall incur no obligation to Seller pay 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 extended coverage portion of the Purchase Price at premium and any endorsements requested by Buyer.
(d) Seller and Buyer shall each pay one-half of the Closing. escrow and closing fees charged by the Escrow Holder shall not Agent.
(e) Other items will also be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.prorated as customary in Seattle, Washington
Appears in 1 contract
Sources: Real Estate Purchase and Sale Agreement (Trupanion, Inc.)
Prorations. The following Buyer and Seller agree that all of the items normally prorated, including those listed below (but not including Income Taxes), relating to the Business and operation of the Assets shall be prorated between Buyer and Seller as of 11:59 p.m. local the Closing Date, with Seller liable for such items to the extent such items relate to any time period prior to the Closing Date, and Buyer liable for such items to the extent such items relate to periods commencing with the Closing Date (measured in the same units used to compute the item in question, otherwise measured by calendar days). The Base Purchase Price shall be increased to the extent Buyer will benefit financially due to Seller's payment prior to the Closing Date of the portion of any such item allocable to Buyer under this Section , and (except with respect to the items addressed in clause (a) below) shall be decreased to the extent Seller will benefit financially due to Buyer's payment prior to the Closing Date of the portion of any such item allocable to Seller under this Section. The items subject to proration include the following:
(a) Subject to Section 6.10(b), personal property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the Business and operation of the Assets;
(b) rent, Taxes (other than Income Taxes) and all other items (including prepaid services or goods not included in Inventories) payable by or to Seller under any of the Assigned Agreements to the extent not included in the account payables and other taxed accrued of the Business outstanding as of the day immediately preceding the Closing Date;
(c) any permit, 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 (collectivelylicense, "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 occursregistration, with due allowance to be made for the maximum available discount compliance assurance fees or other exemptions fees with respect to any Transferable Permit or other Asset;
(d) sewer rents and charges for water, telephone, electricity and other utilities with respect to the Assets;
(e) rent and Taxes payable by or to Seller under the Real Property Leases assigned to Buyer to the extent permissible for said year, not included in the account payables and other taxes accrued of the Business outstanding as of the day immediately preceding the Closing Date;
(f) deposits made by Seller to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property transferred to Buyer;
(or any portion of the Propertyg) and allocable either prepaid expenses paid by Seller 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 extent transferred to Buyer and then, prepaid employee benefits with respect to Transferred Employees; and
(h) petty cash held locally for 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 benefit of the month in which such amounts were collected. Buyer shall incur no obligation Business to Seller for th▇ ▇▇▇ent transferred to 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.
Appears in 1 contract
Sources: Asset Purchase Agreement (Citizens Communications Co)
Prorations. The following (a) Rents, including, without limitation, base rents, minimum guaranteed rents, percentage rents, if any, and any additional charges and expenses payable by tenants under Leases, all as and when actually collected; real property taxes and assessments; water, sewer and utility charges (if not separately metered and paid by tenants); amounts payable under any Service Contracts that survive Closing or other agreements or documents that survive Closing; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses of the operation and maintenance of the Property, shall all be prorated between Buyer and Seller as of 11:59 p.m. local time on the day immediately prior to Closing (i.e., Buyer is entitled to the income and responsible for the expenses of the day immediately preceding the Closing Dateof Closing), on the basis of a 365-day year. Buyer shall reimburse Seller for the actual number tenant improvement costs, leasing commissions, and other expenses, and free rent and other concessions, as and to the extent provided in Section 7.2. Delinquent rents or other delinquent sums that are due pursuant to the terms of days elapsed during the Leases shall not be prorated. Any prepaid rents attributable to periods from and after the Closing Date shall be transferred to Buyer either directly or by way of a credit against the Purchase Price in favor of Buyer. Buyer shall receive a credit against the Purchase Price for the amount of all "free rent" or abated rent to which any tenant may be entitled under a Lease, to the extent relating to periods occurring from and after the Closing Date. All rents collected after the Closing shall be applied and paid as provided in this Section 8.5(a). If a tenant shall specifically designate a payment as being attributable to, or if it is readily ascertainable that a payment received from a tenant is attributable to, a specific period of time or for a specific purpose, including, without limitation, for operating expenses or real estate tax payments which were not paid or were underpaid by such tenant or for reimbursement for work performed by Seller on the tenant's premises, such payment shall be so applied. If there is no such designation or if not so readily ascertainable, any payment received from a tenant after Closing shall be deemed a payment of rent and other sums due after the Closing until the tenant is current on rents and sums due under the applicable Lease on or after the Closing, and then such payments shall be applied to rents and other sums owing for 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 payments shall be paid to Seller within ten (10) days after end to the extent of the month in which such amounts were collectedany rent or other sums owing to Seller for periods prior to Closing. Buyer shall incur no obligation use reasonable efforts to collect such rents and other sums owing to Seller for a period of six (6) months after Closing. Seller retains the right to collect any such rents and other sums from tenants after Closing; provided, however, that Seller shall have no right to terminate a Lease, cause any such tenant to be evicted or to exercise any other landlord remedy against such tenant. Without limiting the generality of the immediately preceding sentence, in no event shall Seller commence any legal proceedings against any tenant after the Closing with respect to any matter relating to a Lease. Reconciliations of taxes, insurance charges and other expenses owed by tenants under Leases for the calendar year (or fiscal year if different from the calendar year) in which the Closing occurs shall be prepared by Buyer with the cooperation of Seller within one hundred eighty (180) days following the end of such year in accordance with the requirements set forth in the Leases and as provided in this Section 8.5(a). For those Leases in which tenants pay a proportionate share of taxes, insurance charges or other expenses over a base year amount or expense stop, the proration between the parties of the income received from tenants over such base year amount or expense stop shall be calculated based on the total amount of such expenses for the Property incurred by both Seller and Buyer for the entire calendar (or, if applicable, fiscal) year, rather than on the amount of such expenses actually incurred by each party for such year, in order to enable the parties to determine if the base year amount or expense stop for such year is exceeded. Such income as so calculated shall be prorated between the parties based on the number of days each party owned the Property during such year and otherwise in accordance with this Section 8.5(a). By way of illustration but without limiting the foregoing, if: (i) the Closing occurred on June 1, 2013, (ii) during Seller's period of ownership of the Property during the year 2013 (151 days), Seller incurred expenses of $450,000, (iii) during Buyer's failure period of ownership of the Property during the year 2013 (214 days), Buyer incurred expenses of $500,000, (iv) total expenses for such year recovered from tenants under Leases is $400,000 (e.g., $950,000 total expenses minus a total base year amount of $550,000), then Seller would be entitled to collect $165,479.45 of such rentals income ($400,000/365 days = $1,095.89 per diem multiplied by 151 days) and Buyer would be entitled to $234,520.55 of such income ($1,095.89 per diem multiplied by 214 days), regardless of the actual amount of expenses actually incurred by each party (which would have instead resulted in Seller receiving $189,473.68 of such income and Buyer receiving $210,526.32 of such income). For Leases which do not have a base year amount or expense stop, the proration between the parties of income received from tenants from reconciliations of expenses under the Leases shall be calculated based on the expenses actually incurred by each party for such year and each party's period of ownership of the Property, and otherwise in accordance with this Section 8.5(a). The amount of any cash security deposits received by Seller under Leases (and not otherwise forfeited by a tenant in accordance with the terms of a Lease) shall be credited against the Purchase Price (and Seller shall be entitled to retain such cash security deposits). Seller shall receive credits at Closing for the amount of any utility or other incomedeposits with respect to the Property to the extent Buyer receives the benefit of such deposits. All Buyer shall cause all utilities to be transferred into Buyer's name and account at the time of Closing. Seller shall use reasonable efforts to cause all non-cash security and any other refundable deposits paid by tenants in the form of letters of credit to Seller pursuant to tenant leases shall be delivered by certified funds transferred to Buyer at the time of Closing. Seller and Buyer hereby agree that if any of the aforesaid prorations and credits cannot be calculated accurately on the Closing orDate or in the case of rents or other charges received from tenants, such amounts have not been collected, then the same shall be calculated as soon as reasonably practicable after the Closing Date or the date such amounts have been collected, and either party owing the other party a sum of money based on such subsequent proration(s) or credits shall pay said sum to the other party within thirty (30) days thereafter. Any amounts not paid within such thirty (30) day period shall bear interest from the date actually received by the payor until paid at Sellerthe greater of (i) the rate of ten percent (10%) per annum or (ii) the prime rate (or base rate) reported from time to time in the "Money Rates" column or section of The Wall Street Journal as being the base rate on corporate loans at larger United States money center commercial banks plus two (2) percent. Upon request of either party, the parties shall provide a detailed and accurate written statement signed by such party certifying as to the payments received by such party from tenants from and after Closing and to the manner in which such payments were applied, and shall make their books and records available for inspection by the other party during ordinary business hours upon reasonable advance notice.
(b) Seller shall pay the base premium for the Title Policy and Buyer shall pay the costs for all endorsements to the Title Policy requested by Buyer (including but not limited to any extended coverage, whether by endorsement or deletion of exception), and the costs of deleting any "Survey Exception" from the Title Policy. The costs of the Survey with the Approved Table A Items, ordered in accordance with Section 4.1(a) hereof, shall be paid by Seller upon Closing. The costs of any additional Table A items that are requested by Buyer or Buyer's optionlender and are not Approved Table A Items shall be the responsibility of Buyer. One-half of all escrow and closing fees shall be paid by Seller at Closing. Buyer shall pay: (i) one-half of all escrow or closing fees; and (ii) all recording charges incident to the recording of the deed for the Real Property at Closing. Transfer taxes imposed upon the transfer of the Property by applicable law shall be shared equally by Seller and Buyer. The parties will execute and deliver any required transfer or other similar tax declarations to the appropriate governmental entity at Closing.
(c) Any percentage rent for the rental periods including Closing shall be prorated upon receipt, credited to Buyer against based upon the cash tenant's sales for the portion of the Purchase Price at lease year allocable to Seller's and Buyer's respective ownership of the Property.
(d) The provisions of this Section 8.5 shall survive the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Sources: Purchase and Sale Agreement (American Realty Capital - Retail Centers of America, Inc.)
Prorations. The following Escrow Agent shall be prorated between Buyer and Seller as of 11:59 p.m. local time of the day immediately preceding the Closing Dateprorate Property rents, 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 (collectivelyincluding, "Taxes") for the tax period then in effect and insurance premiums (but only without limitation, percentage rents, 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 yearany, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property any additional charges and expenses payable under leases, all as and when actually collected (or any portion of the Property) and allocable either to the period before the Closing or to the period after the Closingwhether such collection occurs prior to, 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); real property taxes and assessments; water, all sewer and utility charges; amounts payable under any Operating Agreement or other agreements or documents; annual permits and/or inspection fees (calculated on the basis of which rentsthe period covered); and any other expenses of the operation and maintenance of the Property (including, other income without limitation, expenses prepaid by Seller and expenses already paid by Seller but which are being amortized over time by Seller and with respect to which Seller shall receive a credit at Closing in the amount of the prepaid or unamortized portion thereof), shall all be prorated as of 12:01 a.m. on the Closing Date (i.e., Purchaser is entitled to the income and responsible for the expenses of the day of Closing), on the basis of a 365-day year. Rents and other income, if any, Any sums collected by Buyer Seller or Purchaser from tenants after the Closing shall be applied first as provided in this Section 4.4. If a tenant shall specifically designate a payment as being attributable to, or if it is readily ascertainable that a payment received from a tenant is attributable to a specific period of time or for a specific purpose, including, without limitation, for operating expenses or real estate tax payments which were not paid or were underpaid by such tenant or for reimbursement for work performed by Seller on the tenant's premises, such payment shall be so applied. If there is no such designation or if not so readily ascertainable, any amounts payment received from a tenant after Closing shall be deemed a payment of rent due to Buyer after the Closing until the tenant is current on rents and then, to sums due under the extent such rents or other income relate to the period ending applicable lease on or before after the Closing, and then such rents or other income payments shall be paid to Seller to the extent of any rent or other sums owing to Seller for periods prior to Closing. Purchaser shall use reasonable efforts to collect such rents and other sums owing to Seller. Seller retains the right to collect any such rents and other sums from tenants after Closing; provided, however, that Seller shall have no right to cause any such tenant to be evicted or to exercise any other landlord remedy against such tenant other than to ▇▇▇ for collection. Reconciliations of taxes, insurance charges and other expenses owed by tenants under leases for the calendar year (or fiscal year if different from the calendar year) in which the Closing occurs shall be prepared by Purchaser with the cooperation of Seller within ninety (90) days following the end of such year in accordance with the requirements set forth in the Property leases and as provided in this Section 4.4. The proration between the parties of income received from tenants from reconciliations of expenses under the leases shall be calculated based on the expenses actually incurred by each party for such year and each party's period of ownership of the Property, and otherwise in accordance with this Section 4.4. The amount of any cash security deposits plus accrued and undisbursed interest, if any, held by Seller under the Property leases shall be paid by Seller to Purchaser through Escrow Agent at the Closing and Seller shall deliver and assign to Purchaser any letters of credit held by Seller in lieu of or in addition to any tenant cash security deposits. Seller shall receive credits at Closing for the amount of any utility or other deposits with respect to the Property. Purchaser shall cause all utilities in Seller's name to be transferred into Purchaser's name and account at the time of Closing. Seller and Purchaser hereby agree that if any of the aforesaid prorations and credits cannot be calculated accurately on the Closing Date, then the same shall be calculated as soon as reasonably practicable after the Closing Date, and either party owing the other party a sum of money based on such subsequent proration(s) or credits shall pay said sum to the other party within ten (10) days thereafter. Upon request of either party, the parties shall provide a detailed and accurate written statement signed by such party certifying as to the payments received by such party from tenants from and after end of Closing and to the month manner in which such amounts payments were collected. Buyer applied, and shall incur no obligation to Seller make their books and records available for Buyer's failure to collect such rentals or inspection by the 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 Agreementparty during ordinary business hours upon reasonable advance notice.
Appears in 1 contract
Sources: Purchase and Sale Agreement (BioMed Realty Trust Inc)
Prorations. The following shall be prorated between Buyer and Seller as of 11:59 p.m. local time of (a) At the day immediately preceding Closing, utility charges for the Closing Date, on the basis of the actual number of days elapsed during the month billing period in which the Closing occurs: general and special county and city real , personal property taxes attributable to the Facility, and special assessments any other items of revenue or expense attributable to the Facility (collectively“Prorated Items”), "Taxes") including, but not limited to Bed Taxes (defined herein)/user fees, shall be prorated between Existing Operator and New Operator as of the Closing Date. In general, such prorations shall be made so as to reimburse Existing Operator for prepaid expense items to the extent such expense items are attributable to periods after the Closing and to charge Existing Operator for expenses accrued but unpaid as of the Closing. The intent of this provision shall be implemented by New Operator remitting to Existing Operator any invoices for Prorated Items that reflect a service date before the Closing and by New Operator assuming responsibility for the tax period then payment of any invoices for Prorated Items that reflect a service date after the Closing with any overage or shortage in effect payments by either party to be adjusted and insurance premiums paid as provided in Sections 1.7(b) and (but only if Buyer is assuming Seller's insurance policy or policiesc). Proration Notwithstanding the foregoing, New Operator acknowledges and agrees that it shall have no right, title or interest in and to any retroactive workers compensation insurance program payments whether or not the same are paid prior to or after the Closing Date if and to the extent they relate to any period prior to the Closing Date. For the avoidance of Taxes doubt, any Bed Tax or similar provider taxes or fees shall be prorated between Existing Operator and New Operator based on the period of its operation of the Facility occurring before and after the Closing Date, as the case may be, including, but not limited to, any such assessments made by the State of Georgia and/or paid by Existing Operator prior to the Closing Date that would apply to operation of the Facility after the Closing Date.
(b) Any and all deposits paid by Existing Operator with respect to the Facility including, without limitation, any and all equipment lease, security and/or utility deposits paid to and/or cash or other collateral held by any equipment lessor or by any utility, insurance company or surety, shall remain the sole and exclusive property of Existing Operator and New Operator shall have no right or interest therein or thereto, and to the extent that Existing Operator does not receive a return of any such deposit on the Closing Date and such security deposit has been assigned to and assumed by New Operator, New Operator shall reimburse Existing Operator on the Closing Date or at some later date when an assignment takes place, the amount of any such security deposit assumed by New Operator. In furtherance of the foregoing, New Operator and Existing Operator shall cooperatively work to transition the utilities serving the Facility into the name of New Operator effective as of the Closing Date.
(c) All such prorations shall be made on the basis of actual days elapsed in the relevant accounting, billing or revenue period and shall be based on the most recent official tax bills or notice of valuation information available for to Existing Operator. Without limiting the fiscal year in which the Closing occursforegoing, with due allowance to water, electricity, sewer, gas, telephone and other utility charges shall be made for the maximum available discount or other exemptions based, to the extent permissible practicable, on final meter readings and invoices covering the period of time through the Closing Date. Utility charges which are not metered and read for said yearthe Closing shall be estimated based on prior charges, and to shall be re-prorated upon receipt of statements, therefore.
(d) To the extent possible and based on reasonable estimates, 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 Parties shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following make all prorations at the Closing. In addition All amounts owing from one party hereto to the foregoing apportionmentsother party hereto that require adjustment after the Closing shall be settled within thirty (30) days after the Closing Date or, Seller in the event the information necessary for such adjustment is not available within said thirty (30) day period, then as soon thereafter as practicable.
(e) Within thirty (30) days after Closing, New Operator shall receive transfer to Existing Operator an amount equal to any p▇▇▇▇ cash remaining at the Facility as of the Closing.
(f) New Operator shall be solely responsible for all rents costs, fees and other income accrued, and shall pay all other expenses accrued or incurred, incurred by New Operator in connection with the ownership transfer of operations of the Facility including, but not limited to, the cost of any training of the Facility’s employees prior to Closing which it may elect to undertake with the approval of Existing Operator, which approval shall not be unreasonably withheld, conditioned or delayed, provided such training is conducted in a manner which does not disrupt the operation of Property before the Facility prior to the Closing Date, and Buyer the cost of any due diligence that it undertakes in furtherance of such transfer of operations including, but not limited to, the costs of any examination or copying by New Operator or its agents of any books, records, patient files or other operational or fiscal information and data of any kind of Existing Operator or the Facility. To the extent feasible, all such books, records, patient files or other operational or fiscal information and data shall receive all rents be provided to New Operator in electronic format.
(g) Existing Operator will pay any sales and other income accruing, and shall pay all other expenses accrued use or incurred, similar taxes resulting from or payable 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 sale 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 Transferred Assets pursuant to this AgreementAgreement and shall remit the same to the proper taxing authorities unless Existing Operator is required as a matter of law to be the remitting party, in which case New Operator shall remit the payment(s) to Existing Operator and it shall, in turn, remit the same to the proper taxing authorities. Existing Operator shall be responsible for and shall pay any of its own income, capital gains, or similar tax that may be required to be paid as a consequence of the sale of the Transferred Assets.
Appears in 1 contract
Sources: Operations Transfer Agreement (Selectis Health, Inc.)
Prorations. The following shall be prorated between Buyer Except as otherwise set forth in this Agreement, all taxes and Seller as of 11:59 p.m. local time other operating expenses and revenue 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 ClosingClosing Date. Rents and other income, if any, collected by Buyer after Taxes shall be prorated based upon the current year's tax. If the Closing takes place and the current year's taxes are not fixed and the current year's assessment is available, taxes shall be applied first prorated based upon such assessment and the prior year's millage. If the current year's assessment is not available, then taxes shall be prorated on the prior year's tax. In the event the tax proration is incorrect on the Closing Date because the property is reassessed for the tax year of the Closing by the governmental agency having jurisdiction over the Property, subsequent to any amounts due to Buyer and thenthe Closing Date, BUYER or SELLER shall be entitled, as the case may be, to the extent a reproration of such rents or other income relate taxes upon written request made to the period ending on other party. SELLER or before BUYER shall remit the Closing, such rents or other income shall be paid to Seller reproration adjustment amount requested within ten (10) days after end of request therefor. In the event SELLER or BUYER fails to remit the reproration amount requested within said ten (10) day period, the party seeking reimbursement shall be entitled to all costs of collection, including all attorneys' fees and costs incurred in collection thereof and the amount owing shall bear interest at the highest lawful rate until paid, it being acknowledged that this right shall survive Closing and delivery of the month Special Warranty Deed. Any rents received by SELLER in which such amounts were collectedrespect of the period after the Closing Date shall be promptly remitted to BUYER. Buyer With regard to delinquent rents, if any, BUYER shall incur no obligation not be held responsible for and BUYER shall not be required to Seller for Buyer's failure institute any proceedings whatsoever to collect such rentals or other incomedelinquent rents. However, all rents received by BUYER attributable to periods prior to the Closing Date shall be promptly remitted by BUYER to SELLER. All security and any other refundable deposits paid by tenants to Seller pursuant to tenant leases rents collected after the Closing shall be delivered by certified funds first applied to Buyer at current rents due, then to rents for periods prior to the Closing or, at Seller's option, credited Date unless they are clearly intended by the tenant to Buyer against apply for the cash portion period prior to Closing in which event they shall be promptly remitted to SELLER. This obligation to remit shall survive the Closing and delivery of the Purchase Price Special Warranty Deed. SELLER shall deliver to BUYER at the Closing. Escrow Holder , copies of such statements, invoices bills and receipts as shall not be concerned with requested by BUYER to enable BUYER to verify the accuracy of the amounts of any prorations that are made pursuant to this paragraph. BUYER shall be credited at Closing with all advance rentals and tenant security deposits previously paid to SELLER. All prorations shall be made so that SELLER has the benefit of all income and the burden of all expenses up to and including the Closing Date and BUYER has the benefit of all income and the burden of all expenses after the Closing pursuant Date. SELLER and BUYER shall indemnify and hold harmless the other party harmless from all claims or damages, expenses or obligations, including applicable attorney's fees, incurred in connection with the prorated items due to this Agreementtheir respective periods of ownership or the Real Property or the Personal Property, and for the benefit and charges relating therto.
Appears in 1 contract
Prorations. The following (a) All prepaid rent, taxes and known assessments, rents, utilities and any other sums normally and usually pro-rated in the sale of commercial property in the metropolitan area in which the Property is located, shall be prorated between Buyer and Seller pro-rated as of 11:59 p.m. local time of the day immediately preceding the Closing Date, on with Purchaser being deemed to own the basis Property for the entire day of the actual number of days elapsed during the month in which the Closing occurs: general and special county and city Date. All real property estate 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 prorated based on the most recent official tax bills or notice of valuation available for upon the fiscal year in which the Closing occurs, with due allowance to be made for the maximum available discount or other exemptions year. Subsequent to the extent permissible for said yearClosing, and to the extent the tax bills do not accurately reflect the actual Taxes assessed against the Property (if any rental or any portion of the Property) and revenues allocable either to the period before prior to the Closing Date are actually received by Purchaser, all such amounts shall first be applied to post closing rents due to Purchaser and the balance shall be immediately paid by Purchaser to Seller. Purchaser shall make a good faith effort and attempt to collect any rental or revenues allocable to the period after the ClosingClosing Date for the benefit of Seller; however, then Buyer and Seller Purchaser shall adjust the actual Taxes between Buyer and Seller, outside of Escrow, as soon as reasonably possible following the Closingnot be required to expend any funds or institute any litigation in its collection efforts. 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 After the Closing, such rents or other income shall be paid to Seller within ten (10) days after end may take any action against any of the month tenants for unpaid rent, provided that Seller hereby waives any and all rights it may have to dispossess any delinquent tenant or levy or attach the leasehold interest, fixtures, or personal property of any such tenant.
(b) At Closing, Purchaser shall receive a credit for each security deposit under each Lease then held by Seller in which the amount then held by Seller, as the amount of such amounts were collected. Buyer shall incur no obligation to security deposit may have been reduced or applied by 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 under the Closing or, at Seller's option, credited to Buyer against the cash portion terms of the Purchase Price Lease.
(c) In the event property taxes or assessments are estimated at Closing, Purchaser and Seller shall, upon the issuance of the actual tax bi▇▇ ▇r assessment after Closing, promptly make such financial adjustments between themselves as are necessary to correctly prorate such taxes. This paragraph shall survive the Closing. Escrow Holder shall not be concerned with any prorations that are to be made after the Closing pursuant to this Agreement.
Appears in 1 contract
Sources: Purchase Agreement (Manufactured Housing Properties Inc.)
Prorations. The Each of the following shall be prorated apportioned between Buyer RAI and Seller Acquiror as of 11:59 p.m. local time the close of business on the day immediately preceding the Closing DateDate (the “Cut-Off Time”), on the basis of the actual number of days elapsed during of the month that shall have elapsed as of the Cut-Off Time and based upon the actual number of days in which the Closing occursmonth and a 365 day year: general (a) water, sewer, gas, electric, vault and special county and city real property taxes and special assessments fuel charges, if any (collectively, "Taxes"unless separately billed to a Seller (or its Affiliate) for the tax period then in effect usage prior to the Cut-Off Time and insurance premiums to Acquiror from and after the Cut-Off Time); (but only if Buyer is assuming Seller's insurance policy b) real estate Taxes, and general or policies). Proration of Taxes shall be based special assessments on the most recent official tax bills Transferred Owned Property, or notice of valuation available any other governmental Tax or charge levied or assessed against the Transferred Owned Property, but, in each case, only for the annual installment for the fiscal year in which the Closing Date occurs; (c) any other charge, with due allowance to be made for amount, cost or expense customarily prorated in the maximum available discount or jurisdiction in which the Transferred Owned Property is located, including rent, security deposits, prepaid rents and other exemptions to the extent permissible for said yearcredits, free rent credits, and credits in respect of tenant improvements, leasing commissions and capital expenditures; and (d) payroll and compensation expense for employees who become Transferred Employees. The Parties acknowledge and agree that the purpose and intent of the provisions set forth in this Section 2.08 as to prorations and adjustments is that RAI shall bear the expenses of the ownership and operation of the Transferred Owned Property for which buyers and sellers would customarily prorate or apportion and shall receive the income therefrom accruing through the Cut-Off Time and Acquiror shall bear such expenses and receive such income accruing thereafter. To the extent the tax bills do adjustments described in this Section 2.08 cannot accurately reflect be made at the actual Taxes assessed against Closing because applicable amounts cannot be finally ascertained, the Property (or any portion Parties shall make such adjustments at the Closing based on the best available information, subject to reasonably prompt adjustment upon receipt of the Propertyfinal report, distribution or other evidence of the applicable amounts as herein provided. The foregoing allocations and adjustments shall be shown on a closing statement (with such supporting documentation as the Parties may reasonably require being attached as exhibits to such statement) and allocable either to shall increase or decrease (as the period before case may be) the Closing Purchase Price payable by Acquiror. Any discrepancy resulting from such recomputation and any errors 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 omissions in computing apportionments at 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 Agreementpromptly corrected.
Appears in 1 contract
Prorations. Real property taxes, assessments, rents, operating expenses under Contracts assumed by Buyer and cam charges ( “CAM Charges”) shall be prorated through Escrow between Buyer and Seller as of Close of Escrow. Rents collected prior of Close of Escrow shall be prorated through Escrow between Buyer and Seller. Any Rents collected subsequent to Close of Escrow, the recipient shall promptly deliver to the other party, not later than five (5) days from receipt thereof, a check in the amount of the prorated amount due to the other party as of the day of the Close of Escrow. All rent received shall be allocated to rent due in the month of Close of Escrow. Rents, operating expenses under Contracts assumed by the Buyer and Cam Charges shall be approved by Buyer prior to Close of Escrow. Any delinquent rents collected by Buyer shall be paid to Seller. Seller shall have the right to pursue any Tenant for delinquent rent, but shall not cause a Tenant to be delinquent for their current rent or become financially unstable. If after Close of Escrow either party receives a ▇▇▇▇ for operating expenses that should be paid partly or in full by the other party, the party receiving the ▇▇▇▇ shall, not later than five (5) days from receipt thereof, send a copy of the ▇▇▇▇ together with a proration of the amount due by the other party. The following amount due by the other party shall be paid to the party receiving the ▇▇▇▇, within five (5) days of receipt thereof Tax and assessment prorations shall be based on the latest available tax ▇▇▇▇. If, after Close of Escrow, Buyer receives any further or supplemental tax ▇▇▇▇ relating to any period prior to Close of Escrow, or Seller receives any further or supplemental tax ▇▇▇▇ relating to any period after Close of Escrow, the recipient shall promptly deliver a copy of such tax ▇▇▇▇ to the other party, and not later than ten (10) days prior to the delinquency date shown on such tax ▇▇▇▇ Buyer and Seller shall deliver to the taxing authority their respective shares of such tax ▇▇▇▇, prorated as of Close of Escrow. Notwithstanding, the foregoing, all utilities shall be read on the Closing date and Buyer shall arrange for such utilities to be transferred to the name of the Buyer as of the Closing date, accordingly there will be no proration of utilities. Seller shall provide Buyer a certified reconciliation of Cam Charges of Tenants 10 days prior to the Closing date. Seller will pay to Buyer, in cash, the amount of any Cam Charges, including insurance and utilities paid to Seller by Tenants of the Property, for the Closing date and periods subsequent to the Closing date. Any CAM Charges subsequently received by Buyer which are owing to Seller by Tenants of the Property for periods prior to the Closing date will be forthwith paid by Buyer to Seller; provided, however, it will be Seller’s responsibility to collect the same. Buyer will pay to Seller in cash, the amount of any CAM Charges for the period before Closing which are paid at year end by any Tenants, when the same are received. The obligations in this paragraph shall survive Closing.
6.7.1. All leasing commissions owing and tenant improvements with respect to the Property transactions entered into prior to execution of this Agreement shall be paid by Seller, and Seller shall indemnify and hold Buyer harmless for Lease commission claims brought against the Property arising therefrom. All leasing commissions for new Leases and for Lease renewals and expansion options executed after the date of this Agreement shall be prorated between Buyer and Seller as their respective periods of 11:59 p.m. local time ownership bear to the primary term of the day immediately preceding new Lease.
6.7.2. Seller agrees to indemnify and hold Buyer harmless of and from any and all liabilities, claims, demands, suits, and judgments, of any kind or nature, including court costs and reasonable attorneys’ fees (except those items which under the Closing Dateterms of this Agreement specifically become the obligation of Buyer), on the basis of the actual number of days elapsed during the month in which the Closing occurs: general brought by third parties 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 events occurring on or before the Closingdate of Closing and which are in any way related to the Property, such rents or other income shall be paid and all expenses related thereto, including but not limited to Seller within ten (10) days after end of the month in which such amounts were collectedcourt costs and attorneys’ fees.
6.7.3. Buyer shall incur no obligation agrees to indemnify and hold Seller for Buyer's failure harmless of and from any and all liabilities, claims, demands, suits and judgments, of any kind or nature, including court costs and reasonable attorneys’ fees, brought by third parties and based on events occurring subsequent to collect such rentals or other income. All security the date of Closing and which are in any other refundable deposits paid by tenants way related to Seller pursuant to tenant leases shall be delivered by certified funds to Buyer at the Closing orProperty, at Seller's optionand all expenses related thereto, credited to Buyer against the cash portion of the Purchase Price at the Closing. Escrow Holder shall including, but not be concerned with any prorations that are to be made after the Closing pursuant to this Agreementlimited to, court costs and attorneys’ fees.
Appears in 1 contract