EXHIBIT 10.23
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
PURCHASE AGREEMENT
2101, 2109, 2201, 2215 AND 0000 XXX XXXXX, XXXXXXXXX, XXXXXXXX
DATED: NOVEMBER 23, 2005
TABLE OF CONTENTS
PAGE
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ARTICLE I DEFINITIONS....................................................... 1
ARTICLE II PURCHASE PRICE AND DEPOSIT....................................... 3
ARTICLE III STUDY PERIOD; CONFIDENTIALITY; AS-IS............................ 5
ARTICLE IV TITLE............................................................ 8
ARTICLE V REPRESENTATIONS AND WARRANTIES.................................... 11
ARTICLE VI COVENANTS AND ADDITIONAL OBLIGATIONS OF OWNER.................... 16
ARTICLE VII ASSUMPTION OF THE EXISTING LOAN BY THE COMPANY.................. 18
ARTICLE VIII [INTENTIONALLY OMITTED]........................................ 18
ARTICLE IX CONDITIONS PRECEDENT............................................. 19
ARTICLE X CLOSING........................................................... 21
ARTICLE XI CLOSING MATTERS.................................................. 22
ARTICLE XII PRORATIONS AND ADJUSTMENTS...................................... 23
ARTICLE XIII DEFAULT........................................................ 26
ARTICLE XIV COORDINATION BETWEEN AGREEMENT AND OTHER CONTRACT............... 27
ARTICLE XV DAMAGE, DESTRUCTION OR CONDEMNATION.............................. 28
ARTICLE XVI BROKERS......................................................... 29
ARTICLE XVII MISCELLANEOUS.................................................. 29
ARTICLE XVIII CONFIDENTIALITY............................................... 33
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EXHIBITS
Exhibit A Legal Description of the Land
Exhibit 1.4 Existing Loan Documents
Exhibit 1.8 Description of Leases
Exhibit 2.2 Form of Escrow Agreement
Exhibit 3.2.1 Due Diligence Previously Delivered by Owner
Exhibit 3.2.2 Due Diligence to be Delivered by Owner
Exhibit 4.1 Permitted Exceptions
Exhibit 4.2.1 Title Insurance Requirements
Exhibit 4.2.2 Form of Surveyor's Certification
Exhibit 5.1(iv) Existing Loan Balances
Exhibit 11.1(b) Deed
Exhibit 11.1(c) FIRPTA Certificate
Exhibit 11.1(f) Form of Assignment and Assumption Agreement
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SUMMARY OF TERMS
OWNER: Stonewater Dox Funding LLC
OWNER'S ADDRESS: x/x Xxxxxxxxxx Xxxxxxx Xxxxxxxxxxxxx Xxxx XXX
0000 Avenue of the Xxxxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
PURCHASE PRICE: Fifteen Million and No/100 Dollars
($15,000,000.00)
TENANT: Amdocs Champaign, Inc.
PURCHASE AGREEMENT
PREAMBLE:
THIS PURCHASE AGREEMENT (this "AGREEMENT") is made as of the 23rd day of
November, 2005 (the "EFFECTIVE DATE"), by and between Gladstone Commercial
Limited Partnership, a Delaware limited partnership (the "COMPANY"), as
purchaser and Stonewater Dox Funding LLC, a Delaware limited liability company
(the "OWNER"), as seller, of all of the fee simple interest of the Property.
RECITALS:
A. Owner is the owner of the property (the "PROPERTY"), which term
Property shall include the land described in Exhibit A attached hereto (the
"LAND") and all of the Improvements (as hereinafter defined) thereon, together
with all rights and appurtenances pertaining to the Land, including, without
limitation, all of Owner's rights, title and interest in and to all: (i)
minerals, oil, gas, and other hydrocarbon substances thereon; (ii) adjacent
strips, streets, roads, avenues, alleys and rights-of-way, public or private,
open or proposed, including any rights in vault space adjacent to or within the
boundaries of the Land; (iii) easements, covenants, privileges, and
hereditaments, whether or not of record, appurtenant to the Land; (iv) access,
air, water, riparian, development, utility, and solar rights; (v) signs,
appliances, security systems, fixtures, mechanical systems, landscaping and
other property owned by Owner located at the Property, but excluding items of
movable personal property attached to the Property that relate to the business
conducted on such Property and that may be readily removed without damage; (vi)
site plans, surveys, plans and specifications, and floor plans relating to the
Property in Owner's possession or control; (vii) warranties, guarantees and
bonds relating to the Property (to the extent assignable); and (viii) permits,
licenses, certificates of occupancy (if any) and other governmental approvals
which relate to the Property (to the extent assignable).
B. The Company desires to acquire, and Owner desires to sell, the
Property, upon and subject to the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth and of other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
For purposes of this Agreement, unless the context otherwise requires, the
following terms shall have the meanings hereinafter set forth (such meanings to
be applicable to the singular and plural forms of such terms and the masculine
and feminine forms of such terms):
Section 1.1 "BUSINESS DAY" shall mean any day excluding Saturday,
Sunday and any day which on which banking institutions in the Commonwealth of
Virginia are authorized by law or by other governmental actions to close.
Section 1.2 "ENVIRONMENTAL LAW" shall mean any present and future
law and any amendments (whether common law, statute, rule, order, regulation or
otherwise), permits and other requirements or guidelines of governmental
authorities applicable to the Property and relating to the environment and
environmental conditions or to any Hazardous Material (including, without
limitation, CERCLA, 42 U.S.C. Section 9601 et seq., the Resource Conservation
and Recovery Act of 1976, 42 U.S.C. Section 6901 et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. Section 1251 et seq., the Clean Air Act, 33
U.S.C. Section 7401 et seq., the Toxic Substances Control Act, 15 U.S.C. Section
2601 et seq., the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq., the
Emergency Planning and Community Right-To-Know Act, 42 U.S.C. Section 1101 et
seq., the Occupational Safety and Health Act, 29 U.S.C. Section 651 et seq., and
any so-called "Super Fund" or "Super Lien" law, any law requiring the filing of
reports and notices relating to hazardous materials, environmental laws
administered by the Environmental Protection Agency, and any similar state and
local laws, all amendments thereto and all regulations, orders, decisions, and
decrees now or hereafter promulgated thereunder concerning the environment,
industrial hygiene or public health or safety).
Section 1.3 "EXISTING LENDER" shall mean the owner and holder of the
Existing Loan.
Section 1.4 "EXISTING LOAN" shall mean a loan made by Xxxxx Fargo
Bank, National Association to Owner in the original principal amount of
$10,000,000.
Section 1.5 "EXISTING LOAN DOCUMENTS" shall mean each of the loan
documents listed on Schedule 1.8 annexed hereto.
Section 1.6 "EXISTING MORTGAGE" shall mean that certain Mortgage and
Absolute Assignment of Rents and Leases and Security Agreement made by Owner to
Xxxxx Fargo Bank, National Association dated as of November 21, 2003 in the
amount of $10,000,000, which Existing Mortgage encumbers the Land and the
Improvements and secures the Existing Loan.
Section 1.7 "GOVERNMENTAL AUTHORITIES" shall mean any commission,
department or body of any municipality, township, city, county, state or Federal
governmental unit having jurisdiction over any of the Property or the ownership,
management, operation, use or improvement thereof.
Section 1.8 "IMPROVEMENTS" shall mean all buildings, improvements,
structures and fixtures located on the Land or within any easements appurtenant
thereto and owned by Owner, including, without limitation, sidewalks,
landscaping, parking lots and structures, roads, drainage and all above ground
and underground utility structures and
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conduits, equipment systems and other so-called "infrastructure" improvements
owned by Owner.
Section 1.9 "LEASES" shall mean, collectively the Leases described
on Exhibit 1.9 attached hereto
Section 1.10 "OTHER CONTRACT" shall mean that certain Purchase
Agreement of even date herewith between Stonewater UIS Funding LLC, as seller,
and Gladstone Commercial Limited Partnership, as purchaser, with respect to the
sale and purchase of the Other Property, as the same may be modified or amended
from time to time.
Section 1.11 "OTHER PROPERTY" shall mean that certain property
commonly known as 0000 Xxxxxxxxx Xxxx, Xxxxxxxxx, Xxxxxxxxx.
Section 1.12 "OWNER'S KNOWLEDGE" means the actual knowledge of
Xxxxxxx Xxxxxxx and Xxxxx Xxxxx following a reasonable review of Owner's files
with respect to the Property, and other knowledge of Messrs. Xxxxxxx and Stade
obtained through their usual and customary dealings with the Property Manager
and the Property and its operation in the ordinary course (but without any
special investigation or inquiry by either of them), which review and other
knowledge did not disclose any information contrary to the accuracy or veracity
of any such representation or warranty.
Section 1.13 "PURCHASE PRICE" means Fifteen Million and No/100
Dollars ($15,000,000.00)
Section 1.14 "TAX YEAR" shall mean the year period commencing on
January 1 of each calendar year and ending on December 31 of such calendar year,
being the real estate tax year for the county in which the Property is located..
Section 1.15 "TENANT" means Amdocs Champaign, Inc. a Delaware
corporation (formerly known as ITDS Intelicom Services, Inc.).
Section 1.16 "THE COMPANY'S DUE DILIGENCE AND CONTRACT COSTS" shall
mean, collectively and in the aggregate, all reasonable costs and expenses
(including, without limitation, reasonable attorneys' and accountants' fees and
related expenses) incurred by the Company in connection with the transactions
contemplated by this Agreement, including, without limitation, costs and
expenses incurred by the Company in connection with the assumption by the
Company of the Existing Loan.
ARTICLE II
PURCHASE PRICE AND DEPOSIT
Section 2.1 Purchase Price. On the terms and subject to the
conditions of this Agreement, at the Closing (as hereinafter defined), Owner
shall sell, transfer, convey, assign,
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and deliver to the Company, and the Company shall purchase and accept from Owner
all the right, title, and interest of Owner in and to the Property for the
Purchase Price.
Section 2.2 Deposit and Escrow Agreement. Simultaneously with its
execution of this Agreement, the Company shall place in escrow (by wire transfer
of immediately available federal funds) with First American Title Insurance
Company (the "TITLE COMPANY") the sum of Two Hundred Thousand and No/100 Dollars
($200,000.00), representing an initial deposit (the "INITIAL DEPOSIT"), to be
held in accordance with an Escrow Agreement (the "ESCROW AGREEMENT") in the form
attached hereto as Exhibit 2.2. Concurrently with the execution of this
Agreement, Owner, the Company and the Title Company shall enter into the Escrow
Agreement. Provided that this Agreement has not been terminated by the Company
on or before the expiration of the Study Period, then within two (2) Business
Days after the expiration of the Study Period the Company shall place in escrow
(by wire transfer of immediately available federal funds) the sum of One Hundred
Seventy-Five Thousand and No/100 Dollars ($175,000.00), representing an
additional deposit (the "ADDITIONAL DEPOSIT"; the Initial Deposit and the
Additional Deposit, together with accrued interest thereon, are herein referred
to as the "DEPOSIT"). The Deposit shall be disbursed by the Title Company in
accordance with the terms and conditions of this Agreement and the Escrow
Agreement
Section 2.3 Payment of the Purchase Price. At the Closing, the
Purchase Price shall be paid by the Company to Owner as follows:
(a) Three Hundred Seventy-five Thousand and No/100 Dollars
($375,000) by release of the Deposit by the Title Company to the Owner;
(b) Nine Million Seven Hundred Sixty-One Thousand Six Hundred
Fourteen and 72/100 Dollars ($9,761,614.72) by the Company's assumption of the
Existing Mortgage pursuant to the provisions of Article VII hereof; and
(c) Four Million Eight Hundred Sixty-Three Thousand Three Hundred
Eighty-Five and 28/100 Dollars ($4,863,385.28) by wire transfer of immediately
available federal funds to a bank account designated by Owner, subject to
adjustment pursuant to the terms hereof, and as reduced by any interest that has
accrued on the Deposit and that is released to the Owner at the Closing (said
amount, as adjusted, being herein called the "CASH BALANCE").
If, as of the Closing, the outstanding principal balance of the Existing
Mortgage is less than the amount set forth in Section 2.3(b), then the
difference shall be both deducted from the amount set forth in Section 2.3(b)
above and added to the Cash Balance payable at Closing pursuant to Section
2.3(c) above. If, as of the Closing, the outstanding principal balance of the
Existing Mortgage is more than the amount set forth in Section 2.3(b), then the
difference shall be both added to the amount set forth in Section 2.3(b) above
and deducted from the Cash Balance payable at Closing pursuant to Section 2.3(c)
above.
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ARTICLE III
STUDY PERIOD; CONFIDENTIALITY; AS-IS
Section 3.1 Term of Study Period. The term "STUDY PERIOD" shall mean
the period commencing on the Effective Date and ending at 5:00 p.m. (Eastern
Standard Time) on the date that is thirty (30) days from the Effective Date (the
"STUDY PERIOD EXPIRATION DATE"). During the Study Period, and subject to the
provisions of this Article III, the Company may conduct such reasonable due
diligence activities, inspections and studies of the Property as it deems
necessary or appropriate, and may examine and investigate all facts,
circumstances and matters relating to the Property relevant to its purchase
thereof, including, without limitation, the condition of the Land and
Improvements, title, survey matters and any other matters it deems necessary or
appropriate for purposes of consummating the transaction contemplated by this
Agreement. All such due diligence activities are sometimes referred to herein as
the "DUE DILIGENCE". If, prior to the Study Period Expiration Date, the Company
has not received all of the third party reports that the Company determines are
necessary in connection with its due diligence ("THIRD PARTY REPORTS"),
including but not limited to the Commitment, Survey (as such terms are
hereinafter defined), phase I environmental assessment, appraisal, property
condition assessment/engineering report and zoning report, then the Company
shall have a one time right to extend the Study Period Expiration Date for an
additional fifteen (15) days by written notice delivered by the Company to Owner
and the Title Company on or prior to the then current Study Period Expiration
Date, provided that such notice sets forth a description of the Third Party
Reports that have not yet been received by the Company. In no event, however,
shall the Study Period Expiration Date be later than forty-five (45) days from
(and including) the Effective Date. The Company's right, during any period for
which the Study Period is so extended, to terminate this Agreement as
hereinafter provided in this Section 3.2 may only be exercised as a result of
the Company's dissatisfaction (in its sole discretion) with the Third Party
Report(s) that gave rise to the need for the extension of the Study Period
Expiration Date. If on or before the Study Period Expiration Date, the Company,
in its sole and absolute discretion, shall elect not to proceed to the Closing
for any reason or for no reason, then the Company shall have the right to
terminate this Agreement by giving written notice of termination to Owner and
the Title Company on or before the Study Period Expiration Date, as the same may
have been extended, (time being of the essence with respect to the giving of
such notice), whereupon this Agreement shall automatically terminate, the
Deposit shall be returned to the Company, and neither party shall have any
further rights or obligations under this Agreement (other than any rights and
obligations which expressly are to survive a termination of this Agreement).
Section 3.2 Due Diligence. (a) During the Study Period, Owner shall
afford the Company and its authorized representatives access to the Property at
agreed-upon times for reasonable and customary due diligence purposes, subject
in all respects to the rights of the Tenant under the Lease. The Company shall
provide Owner or its authorized representatives with not less than one (1)
Business Days' prior written notice that the Company desires access to the
Property. Owner may have one or more representatives of Owner and/or the Tenant
accompany the Company during any such entry. The Company shall conduct the Due
Diligence in a manner which is not disruptive to the business operations
currently being
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conducted at the Property. Owner has delivered to the Company legible, true,
correct and complete copies of the documents and instruments listed in Exhibit
3.2.1 attached hereto, and Owner agrees to deliver to the Company within seven
(7) days of the Effective Date legible, true, correct and complete copies of the
documents and instruments listed in Exhibit 3.2.2 attached hereto, to the extent
the same (i) have not heretofore been delivered by Owner to the Company and (ii)
are in the possession of Owner or are within the reasonable control of Owner and
can be obtained by Owner without additional cost to Owner. In addition, Owner
agrees to make available to the Company any other documents and information
relating to the Property, Owner and/or the Existing Loan reasonably requested by
the Company, provided that such documents and information are in the possession
of Owner or are within the reasonable control of Owner and can be obtained by
Owner without additional cost to Owner. During the Study Period, Owner shall
also afford the Company and its authorized representatives access to the
property manager retained by Owner to manage the Property (the "PROPERTY
MANAGER") and all records and files relating to the Property (financial and
otherwise) in the possession and/or control of the Property Manager. The Company
shall provide Owner or its authorized representatives with not less than one (1)
Business Days' prior written notice that the Company desires access to the
Property Manager. At the request of the Company, Owner agrees to use
commercially reasonable efforts to convene a face-to-face meeting between senior
representatives of the Company and the Tenant. One or more representatives of
Owner may attend all such meetings.
(b) The Company shall not conduct (or cause to be conducted) any
physically intrusive due diligence, such as sampling of soils, water or building
materials without the prior written consent of Owner, which consent shall not be
unreasonably withheld, conditioned and/or delayed. If the Company desires to
conduct (or to have conducted) any such physically intrusive due diligence, the
Company shall identify in writing with reasonable certainty what procedures the
Company desires to perform and request Owner's prior written consent with
respect thereto, which consent shall not be unreasonably withheld, conditioned
and/or delayed. Upon receipt of Owner's written consent, the Company shall, in
performing such due diligence, comply in all material respects (and shall cause
its consultants and representatives to comply in all material respects) with the
agreed-upon procedures and with any and all laws, ordinances, rules and
regulations applicable to the Property, and the rights of the Tenant under the
Lease, and shall not engage in any activities which would violate any permits or
Environmental Laws. Upon completion of any inspection or test, the Company shall
immediately restore the Property to the condition existing immediately prior to
such inspection or test. If the Company elects to terminate this Agreement
pursuant to Section 3.1 above, then upon request of Owner, the Company shall
provide Owner with a copy of each Third Party Report requested by Owner,
provided that Owner reimburses the Company for the reasonable costs incurred by
the Company to obtain such Third Party Reports so requested by Owner.
Section 3.3 Liability Insurance. As a condition to Owner's
consenting to the performance of the Due Diligence, in particular but without
limitation to entering upon the Property for the purpose of performing any
physical inspections and/or tests, the Company shall carry and maintain
comprehensive general liability insurance covering Owner, the
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Property Manager and Tenant against claims for bodily injury or death or
property damage occurring in, upon or about the Property, in the amount of not
less than Two Million ($2,000,000) Dollars. Such insurance shall include blanket
contractual liability coverage insuring contractual liability under the
indemnification set forth in Section 3.4 below (but such coverage or the amount
thereof shall in no way limit such indemnification). Prior to entering the
Property to conduct the Due Diligence, the Company shall provide Owner with a
certificate of insurance evidencing that such comprehensive general liability
insurance is in effect. Owner, the Property Manager and Tenant shall each be
named as an additional named insured with respect to such comprehensive general
liability insurance. The Company shall keep such insurance in full force and
effect until the earlier of the Closing or the termination of this Agreement.
Section 3.4 Indemnification. The Company shall indemnify Owner, the
Property Manager and Tenant, and hold Owner, the Property Manager and Tenant,
and their respective agents, representatives and employees, and the Property
harmless from and against all losses, costs, damages, claims and liabilities
(whether arising out of injury or death to persons or damage to the Property or
otherwise), including, but not limited to, mechanic's and materialmen's liens
and attorneys' fees, arising out of or relating to the Due Diligence and/or
entry upon the Property under this Article III, except to the extent any such
loss, cost, damage, claim and/or liability is caused by the negligence or
willful misconduct of Owner, the Property Manager or Tenant or their respective
employees, agents and/or representatives. This Section 3.4 shall survive the
Closing or earlier termination of this Agreement.
Section 3.5 Confidentiality. (a) All documents, materials, leases,
instruments, reports and written information heretofore or hereafter delivered
by Owner or the Property Manager to the Company with respect to the Property
(collectively, the "DUE DILIGENCE MATERIALS") shall be kept confidential and
shall not, without Owner's prior written consent, be disclosed by the Company,
or by its employees, agents, representatives or consultants, and shall not be
used by the Company, its employees, agents, representatives or consultants,
other than in connection with the proposed acquisition of the Property.
(b) All copies of the Due Diligence Materials will be returned to
Owner immediately upon any termination or expiration of this Agreement for any
reason. All analyses, compilations, forecasts, studies, reports or other
documents prepared by the Company, its employees, agents, representatives or
consultants (including all Third Party Reports), will be held by the Company and
kept confidential (or at the option of the Company destroyed) if for any reason
(including the Company's election to terminate this Agreement in accordance with
Section 3.1 above) the Company does not acquire the Property.
(c) If the Company violates any of the terms of this Section 3.5,
Owner shall have the right (in addition to any other rights or remedies
available to Owner at law), to seek injunctive relief to restrain any breach or
threatened breach by the Company of the terms of this Section 3.5. If the
Company, for any reason (including the Company's election to terminate this
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Agreement in accordance with Section 3.1 above) does not acquire the Property,
then the provisions of this Section 3.5 shall survive the termination of this
Agreement.
Section 3.6 As Is Condition of the Property. Other than the
representations and warranties of Owner specifically set forth herein, the
Company has not relied upon any oral or written information from Owner or its
employees, affiliates, agents, consultants, advisors or representatives,
including, without limitation, any appraisals, projections or evaluations of
credit quality prepared by Owner or any of its employees, affiliates, agents,
consultants, advisors or representatives. Without limiting the generality of the
foregoing, the Company acknowledges and agrees that, except as expressly set
forth herein, the Company is purchasing the Property "as is" and "where is" on
the Closing Date, and, except as expressly set forth herein, Owner is making no
representation or warranty, express or implied, and the Company has not relied
on any representation or warranty, express or implied, regarding the Property,
including, without limitation, any representation or warranty with respect to
(a) the business or financial condition of any tenant of the Property, (b) the
physical condition of any Improvement or personal property comprising all or a
part of any Property, or its fitness, merchantability or suitability for any use
or purpose, (c) the leases, rents, income or expenses of the Property, (d) the
compliance or non-compliance with any laws, codes, ordinances, rules or
regulations of any governmental authority (including, without limitation,
Environmental Laws), or (e) the current or future use of the Property,
including, but not limited to, any Property's use for commercial, retail,
industrial or other purposes. Owner is not liable or bound in any manner by any
verbal or written statements, representations, real estate brokers' "set-ups",
offering memorandum or information pertaining to any Property furnished by any
real estate broker, advisor, consultant, agent, employee, representative or
other person. The foregoing shall not be deemed to limit any of the Due
Diligence rights of the Company set forth in this Article III.
ARTICLE IV
TITLE
Section 4.1 State of Title. At the Closing, Owner shall sell the
Property to the Company, and the Company shall purchase the Property from the
Owner, subject only to (a) those matters set forth on Exhibit 4.1 annexed
hereto, (b) any exceptions and matters that are approved, waived or deemed to
have been approved or waived by the Company, (c) such title exceptions as the
Title Company shall be willing to, at its regular rates, omit as exceptions to
coverage, and (d) the standard exceptions and provisions contained in the form
of insuring agreement employed by Title Company (the liens, claims,
encumbrances, exceptions and matters set forth in subclauses (a) through (d)
above being collectively referred to as the "PERMITTED EXCEPTIONS").
Section 4.2 Title Commitment; Survey. Promptly after the Effective
Date the Company shall obtain at its expense: (i) a title commitment from the
Title Company, together with legible copies of documents referred to in such
commitment (a "COMMITMENT"), for an owner's policy of title insurance covering
the Property which shall in all material respects satisfy the requirements, and
include the endorsements, set forth in Exhibit 4.2.1 attached
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hereto, and (ii) a current plat of survey of the Property, including the
Improvements (a "SURVEY") prepared by a licensed surveyor, which shall be
certified to the Company, the Company's assignee (if any), and the Title Company
by means of a certificate substantially in the form of Exhibit 4.2.2 attached
hereto. The Company shall (i) instruct the Title Company to deliver copies of
the Commitment (and all title continuations thereof) to Owner and its attorneys
concurrently with the delivery of the Commitment to the Company, and (ii)
instruct the surveyor preparing the Survey to deliver a copy of the Survey to
each of Owner and its attorneys concurrently with its delivery thereof to the
Company.
Section 4.3 Permitted Exceptions. The Company shall have the right
to object, in its sole and absolute discretion, to any exceptions to title, or
to any matter shown on the Survey, which is not a Permitted Exception, by giving
written notice to Owner on or before the date that is five (5) Business Days
after the Company receives the Commitment and Survey (but in no event prior to
the expiration of the initial 30-day Study Period). In addition, the Company
shall have the right to object to any exception to title contained in any title
continuations which is not a Permitted Exception and is not otherwise set forth
in the Commitment, within five (5) Business Days after the Company receives such
title continuation (any such notice given pursuant to this Section 4.3 is herein
called a "TITLE OBJECTION NOTICE"). Any title exception set forth in the
Commitment, on the Survey or in a title continuation notice, which is not timely
objected to by delivery of a Title Objection Notice shall be deemed to be a
Permitted Exception, provided, however, that in no event shall any title defect
required to be discharged by Owner pursuant to Section 4.6 below or any
Violation required to be cured by Owner pursuant to Section 4.8 below, be for
any purpose considered a "Permitted Exception", nor shall the Company have any
obligation to object to any title defect required to be discharged by Owner
pursuant to Section 4.6 below or any Violation required to be cured by Owner
pursuant to Section 4.8 below.
Section 4.4 Owner's Rights. (a) Owner shall have the right, in its
sole discretion, upon written notice to the Company and the Title Company (the
"TITLE RESPONSE NOTICE") given within ten (10) days after Owner's receipt of any
Title Objection Notice, to elect to either (i) take such action as Owner deems
advisable to discharge those title exceptions which are not Permitted Exceptions
and are set forth in the Title Objection Notice (the "TITLE DEFECTS") or (ii)
terminate this Agreement, whereupon the Deposit (and any interest thereon) shall
be promptly refunded to the Company and thereafter neither party hereto shall
have any further obligation to the other party hereto, with the exception of
those obligations which expressly survive the termination of this Agreement. If
Owner fails timely to deliver the Title Response Notice, then Owner shall be
deemed to have elected to terminate this Agreement pursuant to clause (ii)
above. If Owner, in its Title Response Notice, elects to take action to remove,
remedy or comply with the Title Defects, Owner shall be entitled to one or more
adjournment(s) of the Closing for up to thirty (30) days in the aggregate, to
discharge the Title Defects. If Owner is unable to remove, remedy or comply with
such Title Defects at the expiration of such adjournment, then this Agreement
shall be deemed to be terminated as of the adjourned date of Closing. Upon such
termination, the Deposit (and any interest thereon) shall be promptly refunded
to the Company and neither party hereto shall have any further obligation to the
other
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party hereto, with the exception of those obligations which expressly survive
the termination of this Agreement. Except as set forth in Section 4.6 hereof,
nothing in this Agreement shall be deemed to require Owner to take or bring any
action or proceeding or any other steps to remove any defect in or objection to
title or to expend any moneys therefor, nor shall the Company have any right of
action against Owner, at law or in equity, therefor.
(b) If, at the Closing, there are any title exceptions which are not
Permitted Exceptions and which Owner is obligated by this Agreement or elects to
pay and discharge, Owner may use any portion of the Purchase Price or any other
sum to satisfy the same, provided that Owner shall have delivered to the Title
Company at the Closing instruments in recordable form sufficient to satisfy such
title exceptions of record, together with the cost of any applicable recording
or filing fees. The existence of any such liens or encumbrances shall not be
deemed objections to title if Owner shall comply with the foregoing
requirements, and so advises the Company in writing of its intent to do so.
Section 4.5 The Company's Right to Accept Title. The Company may,
upon written notice to Owner at any time on or before the Closing Date (as the
same may have been adjourned by Owner in accordance with the provisions of
Section 4.4 hereof), elect to accept such title as Owner can convey,
notwithstanding the existence of any Title Defects. In such event, (i) this
Agreement shall remain in force and effect, (ii) the parties shall proceed to
Closing and (iii) unless otherwise agreed by the Company and Owner, the Company
shall not be entitled to any abatement of the Purchase Price, any credit or
allowance of any kind or any claim or right of action against Owner for damages
or otherwise by reason of the Title Defects.
Section 4.6 Owner's Obligations. Notwithstanding anything contained
in this Article IV to the contrary, Owner shall at or prior to Closing discharge
any Title Defects which are (i) knowingly and intentionally created by Owner
subsequent to the date hereof and (ii) liquidated in amount and may be
discharged solely by the payment of a sum of money, provided that in no event
shall Owner be required to expend in excess of One Hundred Thousand and No/100
Dollars ($100,000.00) in the aggregate to discharge any such liquidated Title
Defects and to cure Violations pursuant to Section 4.8 below.
Section 4.7 Title Affidavits, Etc. (a) If requested by the Title
Company, Owner shall deliver (i) one or more reasonable and customary title
affidavits executed by Owner, certifying to factual matters concerning Owner or
the Property which are within the knowledge of Owner, (including, without
limitation, any reasonable and customary affidavit which may be required in
order to omit from title insurance coverage any exceptions for judgments,
bankruptcies or other returns against persons or entities, other than Owner,
whose names are the same as or similar to Owner's name), (ii) documents
evidencing Owner's payment of franchise or unincorporated business taxes, as
applicable, and (iii) any other documents reasonably requested by the Title
Company to issue the title insurance required pursuant to this Agreement.
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(b) If requested by the Title Company, the Company shall deliver (i)
one or more reasonable and customary title affidavits executed by the Company,
certifying to factual matters concerning the Company which are within the
knowledge of the Company (including without limitation any reasonable and
customary affidavit which may be required in order to omit from title insurance
coverage any exceptions for judgments, bankruptcies or other returns against
persons or entities, other than the Company, whose names are the same as or
similar to Company's name), (ii) documents evidencing Company's payment of
franchise or unincorporated business taxes, as applicable, and (iii) any other
documents reasonably requested by the Title Company to issue the title insurance
required pursuant to this Agreement.
Section 4.8 Violations. Owner shall cure, or cause to be cured, any
Violations, whether the same have been noted or issued as of the date hereof or
are first noted or issued after the date hereof, provided that in no event shall
Owner be required to expend in excess of One Hundred Thousand and No/100 Dollars
($100,000.00) in the aggregate to cure Violations and remove Title Defects
pursuant to Section 4.6 above. As used herein, the term "VIOLATION(S)" shall
mean any violation of any law or municipal ordinance, order or requirement noted
or issued against the Property by any federal, state or municipal department
having jurisdiction over the Property, other than any such violation that is the
responsibility of the Tenant to cure, comply with, remove or otherwise discharge
pursuant to the terms of the Lease or applicable law.
Section 4.9 No Limitation on Due Diligence Termination Rights.
Nothing set forth in this Article IV shall limit the Company's right to
terminate this Agreement as set forth in Article III.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
Section 5.1. Representations and Warranties of Owner. Owner
represents and warrants to the Company that the representations and warranties
set forth below are true and correct on and as of the Effective Date:
(a) Due Execution; Authority. (i) Owner is duly formed, validly
existing and in good standing as a limited liability company under the laws of
the State of Delaware; (ii) this Agreement is, and all the documents to be
executed and delivered by Owner pursuant to this Agreement (the "OWNER CLOSING
DOCUMENTS") will be, when executed by Owner, binding on and enforceable against
Owner in accordance with their respective terms; (iii) except for the Existing
Lender, there are no consents required from any third party to authorize Owner's
entry into and performance of this Agreement, the Owner Closing Documents and/or
the transactions contemplated hereby or thereby which have not been obtained;
(iv) this Agreement, the Owner Closing Documents and the transactions
contemplated hereby and thereby have been, or will have been prior to the
Closing, approved by all necessary action of Owner; and (v) the execution and
delivery of the Owner Closing Documents do not and will not constitute a breach
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or default under any agreement by which Owner is bound, or by which any of
Owner's property is encumbered.
(b) Contracts. There are no contracts (other than the Leases)
entered into by Owner or its agents relating to the ownership, management,
leasing, parking, operation, maintenance or repair of the Property that (i) have
a monetary obligation of more than Twenty-five Thousand and No/100 Dollars
($25,000) per year and (ii) are not cancelable without penalty by Owner upon
notice of ninety (90) days or less (any contracts affecting the Property,
together with all contracts entered into after the date hereof pursuant to
Section 6.1, are hereinafter collectively referred to as the "CONTRACTS"). To
Owner's Knowledge, Owner has performed all material obligations required to be
performed by Owner under the Contracts, and Owner has not received any written
notice of default under any of the Contracts which remains uncured. There are no
contracts for the sale, exchange or transfer of the Property or any portion
thereof other than this Agreement.
(c) The Leases. (i) No one other than Tenant has any right to occupy
any part of the Property. The Leases are the only leases or other right or grant
of occupancy of all or any part of the Property and Tenant has no right of first
refusal, option or other right to purchase all or any portion of the Property.
(ii) Owner has performed or paid all material obligations
required to be performed or paid by it under the Leases and Owner has not
received any written notice of default of any of its obligations under any of
the Leases which remains uncured.
(iii) Tenant has no obligation to post a security deposit
pursuant to the Leases, and there are no escrow or similar accounts maintained
by Owner pursuant to the Leases.
(d) Leasing Commissions. There are no unpaid leasing commissions
outstanding with respect to the Leases.
(e) Condemnation. There are no pending or, to Owner's Knowledge,
threatened, condemnation proceedings affecting all or any part of the Land or
the Improvements.
(f) Permitted Exceptions. To Owner's Knowledge, Owner has performed
all material obligations under the terms and provisions of any of the covenants,
conditions, restrictions, rights-of-way and easements constituting one or more
of the Permitted Exceptions for the Property, and Owner has not received any
written notice of default with respect to the foregoing matters which remains
uncured.
(g) Litigation. No dispute, proceeding, suit or litigation relating
to the Leases, the Property or any part thereof is pending or, to Owner's
Knowledge, threatened in any tribunal.
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(h) FIRPTA. Owner is not a "foreign person" within the meaning of
Section 1445 of the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.
(i) Existing Loan. (i) The proceeds of the Existing Loan have been
fully advanced.
(ii) Owner has not received any written notice of any default,
breach, violation or event of acceleration existing under or pursuant to any of
the Existing Loan Documents, and to Owner's Knowledge no event (other than
payments due but not yet delinquent) exists which, with the passage of time or
with notice and the expiration of any grace or cure period, would constitute a
default or event of acceleration of any of the Existing Loan Documents.
(iii) Except as expressly set forth in the Existing Loan
Documents, no material term, covenant or condition of the Existing Loan
Documents has been waived, modified, altered, satisfied, canceled or
subordinated in any respect or rescinded.
(iv) As of the Effective Date, the outstanding principal
balance, accrued interest and any late fees or collection costs due and owing to
Existing Lender and the balance of any escrow and other accounts maintained by
or for the benefit of Existing Lender with respect to the Existing Loan are set
forth in Exhibit 5.1(iv).
(v) The Existing Loan is the only indebtedness of Owner
secured by the Property, and the only documents and instruments executed by
Owner in connection with the Existing Loan that encumber the Property are the
Existing Mortgage, a related assignment of leases and rents made by Owner in
favor of Lender and uniform commercial code financing statements naming Owner as
debtor and Lender as secured party.
(vi) Each of the Existing Loan Documents is the legal, valid
and binding obligation of Owner, enforceable in accordance with its terms,
except as such enforcement may be limited in the future by bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of
creditors' rights generally, and by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law).
(j) Material Change. Owner has not received written notice from any
Governmental Authority of any pending or contemplated change in any regulation,
code, ordinance or law, or private restriction applicable to the Property, or
any natural or artificial condition upon or affecting the Property, or any part
thereof, which would result in any material change in the condition of the
Property or any part thereof, or would in any way limit or impede the operation
or development of the Property.
(k) Accuracy of Documents. Owner has previously delivered to the
Company the documents and records listed on Exhibit 3.2.1 hereto, and shall to
the extent the
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same are within the possession and/or reasonable control of Owner and have not
heretofore been delivered to Owner, deliver to the Company within seven (7) days
of the Effective Date, the documents and information listed in Exhibit 3.2.2. To
the extent prepared by Owner or its employees, such documents are true, correct
and complete, and accurately reflect the matters contained therein in every
material respect. To the extent such documents have not been prepared by Owner,
to Owner's Knowledge there are no facts or circumstances that would make any of
such documents or records and the matters contained therein, inaccurate in any
material respect.
(l) Tax Matters. Owner has relied solely on its own counsel for
advice on any and all federal, state and local tax matters relating to this
Agreement and the transactions contemplated herein and has not relied on any
advice or representations of the Company, or its counsel with respect to any
federal, state and local tax matters relating to this Agreement or the
transactions contemplated herein.
(m) Warranties. Owner has not released or modified any warranties of
builders, contractors, manufacturers or other trades persons that have been
given to Owner and to Owner's Knowledge all such warranties are in full force
and effect.
(n) Bankruptcy. Owner has not: (i) made a general assignment for the
benefit of creditors; (ii) filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by Owner's creditors; (iii)
suffered the appointment of a receiver to take possession of all or
substantially all of Owner's assets; (iv) suffered the attachment, or other
judicial seizure of all, or substantially all, of Owner's assets; (v) admitted
in writing its inability to pay its debts as they come due; or (vi) made an
offer of settlement, extension or compromise to its creditors generally.
(o) Permits, Etc. To Owner's Knowledge, all permits, licenses,
authorizations and certificates of occupancy required by Governmental
Authorities for the management, occupancy, leasing and operation of the Property
are in full force and effect.
(p) Compliance with Law Under the Lease. To Owner's Knowledge, there
does not currently exist any obligation to be taken or performed by the Tenant
pursuant to the Lease that if not taken or performed, would cause the Property
to be in non-compliance with any federal, state, municipal and other
governmental laws, ordinances, requirements, rules, regulations, notices, codes
and orders, or any agreements, covenants, conditions, easements and restrictions
currently in effect and relating to the Property.
(q) Zoning; Governmental Rules and Regulations Under the Lease and
Existing Loan Documents. To Owner's Knowledge as of the date hereof, there is no
requirement of applicable law, the Lease or Existing Loan Document that would
require Owner to sell, mortgage, pledge, hypothecate or otherwise transfer or
dispose of all or any part of the Property or any interest therein, or initiate,
consent to, approve or otherwise take any action
14
with respect to zoning or any other governmental rules or regulations presently
applicable to all or any part of the Property.
(r) Not Misleading. Without limiting any of the representations and
warranties of Owner set forth in this Agreement, such representations and
warranties do not make any untrue statement of a material fact, or to Owner's
Knowledge, omit to state a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made, not
misleading.
The Company agrees that, if (i) during the Study Period, the Company
shall discover any state of facts that differs from any of the representations
set forth in Section 5.1 above or that would make such representations untrue,
or (ii) if any of the documents listed in Exhibit 3.2.1 contains any facts or
statements that differ from any of the representations set forth in Section 5.1
above or that would make such representations untrue, then the Company shall
promptly advise the Owner in writing of such different state of facts.
Section 5.2 Representations and Warranties of The Company. The
Company represents and warrants to Owner that the representations and warranties
set forth below are true and correct on and as of the Effective Date:
(a) Due Execution; Authority. (i) The Company is duly formed,
validly existing and in good standing as a limited partnership under the laws of
the State of Delaware; (ii) this Agreement is, and all the documents to be
delivered by the Company pursuant to the express terms of this Agreement (the
"COMPANY CLOSING DOCUMENTS") will be, when executed by the Company, binding on
and enforceable against the Company in accordance with their respective terms;
(iii) there are no consents required from any third party to authorize the
Company's entry into and performance of this Agreement, the Company Closing
Documents and/or the transactions contemplated hereby or thereby; (iv) this
Agreement has been, the Company Closing Documents and the transactions
contemplated hereby and thereby have been, or will have been prior to the
Closing, approved by all necessary action of the Company; and (v) the execution
and delivery of the Company Closing Documents do not and will not constitute a
breach or default under any agreement by which the Company is bound or by which
any of the Company's property is encumbered.
(b) Bankruptcy. The Company has not: (i) made a general assignment
for the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or
suffered the filing of an involuntary petition by the Company's creditors; (iii)
suffered the appointment of a receiver to take possession of all or
substantially all of the Company's assets; (iv) suffered the attachment, or
other judicial seizure of all, or substantially all, of the Company's assets;
(v) admitted in writing its inability to pay its debts as they come due; or (vi)
made an offer of settlement, extension or compromise to its creditors generally
(c) Prohibited Person. The Company is not a Prohibited Person. For
purposes hereof, a "Prohibited Person" shall mean any of the following: (i) a
person or entity
15
that is listed in the Annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224 on Terrorist Financing (effective September 24, 2001)
(the "EXECUTIVE ORDER"); (ii) a person or entity owned or controlled by, or
acting for or on behalf of any person or entity that is listed in the Annex to,
or is otherwise subject to the provisions of, the Executive Order; (iii) a
person or entity that is named as a "specially designated national" or "blocked
person" on the most current list published by the U.S. Treasury Department's
Office of Foreign Assets Control ("OFAC") at its official website,
xxxx://xxx.xxxxx.xxx/xxxxxxx/xxxxxxxxxxx/xxxx; (iv) a person or entity that is
otherwise the target of any economic sanctions program currently administered by
OFAC; or (v) a person or entity that is affiliated with any person or entity
identified in any of clause(i), (ii), (iii) and/or (iv) above.
Section 5.3 Closing Certificates of The Company and Owner. (a) The
Company, on the Closing Date, shall execute and deliver to Owner an instrument
by which the Company shall remake the representations made pursuant to Section
5.2 above as of the Closing, provided that the Company, in such instrument,
shall (i) update such representations to reflect events occurring between the
date hereof and the Closing and (ii) correct such representations and warranties
to reflect any discovered inaccuracy therein; such instrument being herein
called the "COMPANY'S REPRESENTATION CERTIFICATE".
(b) Owner, on the Closing Date, shall execute and deliver to the
Company an instrument in which Owner shall remake the representations and
warranties made pursuant to Section 5.1 above as of the Closing, provided that
Owner, in such instrument, shall (i) update such remade representations to
reflect events occurring between the date hereof and the Closing and (ii)
correct such remade representations to reflect any discovered inaccuracy
therein; such instrument being herein called "OWNER'S REPRESENTATION
CERTIFICATE".
ARTICLE VI
COVENANTS AND ADDITIONAL OBLIGATIONS OF OWNER
Section 6.1 Covenants of Owner. Owner agrees that from the date of
this Agreement to the Closing, it will:
(a) Insurance. Subject to the terms and conditions of the Leases
(and to the extent Owner is able to do so pursuant to the Leases), cause Tenant
to maintain in full force and effect all insurance required to be maintained
pursuant to the Leases.
(b) Contracts and Business Practice. Not become a party to any new
licenses, equipment leases, contracts or agreements of any kind relating to the
Property, except for such contracts or agreements as will be terminated at or
prior to the Closing without cost or expense to the Company or contracts which
the Company agrees in its sole discretion to assume at the Closing, without
having obtained in each case the prior written consent of the Company, which
consent shall not be unreasonably withheld or delayed. The Company agrees that
any requests for consent shall be responded to within five (5) Business Days of
receipt of request therefor. Except as otherwise provided in this Article VI,
Owner shall continue, and shall cause Tenant to
16
continue (to the extent Owner is able to do so pursuant to the Leases), to
manage, maintain and operate the Property in the same manner that Owner (or
Tenant, as applicable) has been managing, maintaining and operating the Property
immediately prior to the Effective Date; provided, however, that Owner shall not
have any obligation to make repairs or expenditures that are capital in nature.
(c) Compliance With Laws. Not knowingly take or fail to take any
action that will cause the Property to fail to comply with any federal, state,
municipal and other governmental laws, ordinances, requirements, rules,
regulations, notices, codes and orders, or any agreements, covenants,
conditions, easements and restrictions currently in effect relating to the
Property; provided that Owner shall not be required to take any such action, or
perform any such obligation, if and to the extent that such action is required
to be taken by the Tenant under the Leases or is otherwise the obligation of the
Tenant under the Leases.
(d) Notices. Promptly upon receipt, provide the Company with copies
of all written notices delivered to, or received by, the Tenant in connection
with the Property or the Leases, any insurance company which carries insurance
on the Property, or from any Governmental Authorities with respect to the
Property or any portion thereof.
(e) Conditions To The Closing. Use good faith efforts prior to the
Closing to satisfy all conditions to the Closing which are within Owner's
reasonable power to satisfy.
(f) No Sale or Encumbrance. Owner shall not sell, mortgage, pledge,
hypothecate or otherwise transfer or dispose of all or any part of the Property
or any interest therein, or initiate, consent to, approve or otherwise take any
action with respect to zoning or any other governmental rules or regulations
presently applicable to all or any part of the Property, except if and to the
extent required by law, the terms of the Leases or the terms of the Existing
Loan Documents.
(g) Lease. Owner shall not nor cause or permit Tenant to terminate,
modify, extend, amend or renew the Leases or enter into any new lease or other
letting arrangement without the prior written consent of the Company, which the
Company may withhold in its sole discretion.
(h) Existing Loan. Pay and perform all of its obligations pursuant
to the Existing Loan Documents, and use good faith efforts to cause Existing
Lender to consent to the assignment to, and assumption by the Company of, the
Existing Loan.
(i) Fulfillment of Obligation. To the extent Owner is obligated,
pursuant to any contract, agreement, covenant, lease, or other understanding
entered into prior to the Effective Date with any tenant, governmental
subdivision or any other third party, to effect any construction, make any
improvements or take any action, Owner shall cause any such construction,
improvements and/or action to be taken, completed and fully paid for by Owner,
at its expense, prior to the Closing. No such obligation shall be unfulfilled,
and no liability for or payment in respect of any obligation shall be
unsatisfied as of the Closing.
17
ARTICLE VII
ASSUMPTION OF THE EXISTING LOAN BY THE COMPANY
Section 7.1 Assumption of Existing Loan. The Company recognizes and
agrees that, in connection with the Existing Loan, the Property presently is
encumbered by the Existing Mortgage. The Loan is evidenced by that certain
promissory note dated as of November 21, 2003 in the stated principal amount of
$10,000,000 (the "EXISTING NOTE") executed by Owner and payable to the order of
Xxxxx Fargo Bank, National Association. Owner has heretofore delivered a true,
correct and complete copy of the Existing Note and the other Existing Loan
Documents to the Company for its review. The Company agrees that, at the
Closing, the Company shall assume Owner's obligations under the Existing Note
and all of the other Existing Loan Documents and accept title to the Property
subject to the Existing Mortgage. It shall be a condition to the Owner's and the
Company's obligations hereunder that at Closing the Existing Lender shall
release Owner, as well as any guarantors and other obligated parties under the
Existing Loan Documents from all obligations under the Existing Loan Documents
(and any related guarantees or letters of credit), including, without
limitation, any obligation to make payments of principal and interest under the
Existing Note (the foregoing assumption of the Existing Loan and the release of
Owner and all guarantors thereunder being herein called the "LOAN ASSUMPTION AND
RELEASE"). The Company shall, within three (3) Business Days of the Effective
Date, submit to the Lender a completed application for the Loan Assumption and
Release (the "APPLICATION"). The Company and Owner each agree to use
commercially reasonable diligent efforts to cause the Loan Assumption and
Release to be consummated in the most timely and efficient manner. The Company
shall pay all fees and expenses imposed or charged by the Lender and its counsel
in connection with the Loan Assumption and Release, including, without
limitation, all servicing fees and charges, transfer fees, assumption fees,
title fees and endorsement fees and this obligation to pay fees and expenses
shall survive the Closing or any earlier termination of this Agreement. The
Company and Owner shall each pay their own legal fees and costs and expenses in
connection with the Loan Assumption and Release. In connection with the Loan
Assumption and Release, the Company shall form a subsidiary entity to take title
to the Property, which subsidiary entity shall be a bankruptcy remote single
purpose entity which satisfies the requirements of the Existing Loan Documents
and of the Existing Lender.
ARTICLE VIII
[INTENTIONALLY OMITTED]
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ARTICLE IX
CONDITIONS PRECEDENT
Section 9.1 The Company's Conditions Precedent. The Company's
obligation to accept the conveyance of the fee simple title to the Property
hereunder shall be subject to the full and timely satisfaction of the following
conditions (all or any of which may be waived, in whole or in part, by the
Company in writing in its sole discretion) at or prior to the Closing:
(a) Title. The Company shall have received confirmation from the
Title Company that it is issuing to the Company at the Closing an owner's title
policy (bringing the title current to the date of the Closing) without
exceptions other than the Permitted Exceptions.
(b) Representations and Warranties. Owner's Representation
Certificate shall reflect that the representations and warranties made by Owner
in this Agreement (as the same may be deemed modified by the provisions of the
last paragraph of Section 5.1) are true and correct in all material respects as
of the Closing (with such modifications as may be necessary to reflect any
changes contemplated or permitted by this Agreement, such as a change to
subsection 5.1(i)(iv) to reflect any payments on the Existing Loan made after
the Effective Date).
(c) Performance of Obligations, etc. Owner shall have performed in
all material respects all covenants and obligations and complied with all
conditions, obligations and agreements required by this Agreement to be
performed or complied with by it at or before the Closing.
(d) Existing Loan. All right, title and interest of Owner under and
pursuant to the Existing Loan Documents shall be assigned to and assumed by the
Company, Existing Lender shall have consented to such assignment and assumption,
and all conditions to such assignment and assumption imposed by Existing Lender
shall have been satisfied or waived by Existing Lender.
(e) Tenant Estoppel Certificate. The Company shall have received an
executed estoppel certificate from the Tenant in the form prescribed by the
Leases.
(f) Closing Under the Other Contract. The Closing under this
Agreement and the closing of the transactions contemplated by the Other Contract
occur simultaneously.
(g) Construction/Improvement Work at the Property. The Company shall
have received confirmation reasonably satisfactory to it that with regard to any
construction/improvement work at the Property (the "Improvement Work"): (i) all
licenses, permits and similar authorizations required by all Governmental
Authorities relating to ongoing Improvement Work are in full force and effect;
and (ii) all applicable certificates (including, without limitation,
certificates of inspection), permits and/or licenses relating to the
19
inspection and completion of Improvement Work during or after the expiration of
the Study Period required by all Governmental Authorities.
(h) Violations. All Violations shall have been cured to the
satisfaction of the applicable Governmental Authorities.
Section 9.2 The Owner's Conditions Precedent Owner's obligation to
close on the Closing Date is subject to the satisfaction of the following
conditions precedent, any or all of which may be waived in writing by Owner:
(a) Representations and Warranties. The Company's Representation
Certificate shall reflect that the representations and warranties made by the
Company in this Agreement are true and correct in all material respects as of
the Closing.
(b) Performance of Obligations, etc. The Company shall have
satisfied and complied with (or at the Closing shall satisfy and comply with)
all of its obligations hereunder (including, without limitation, its obligations
to pay the Cash Balance and to execute and/or deliver each and all of the
documents to be executed and/or delivered by the Company pursuant to this
Agreement);
(c) Existing Loan. All right, title and interest of Owner under and
pursuant to the Existing Loan Documents shall be assigned to and assumed by the
Company, Existing Lender shall have consented to such assignment and assumption,
the Company and the Existing Lender have entered into the Loan Assumption and
Release, all conditions to such assignment and assumption imposed by Existing
Lender shall have been satisfied or waived by Existing Lender, and the Existing
Lender shall have released Owner, as well as any guarantors and other obligated
parties under the Existing Loan Documents from all obligations under the
Existing Loan Documents (and any related guarantees or letters of credit),
including, without limitation, any obligation to make payments of principal and
interest under the Existing Note; and
(d) The Closing under this Agreement and the closing of the
transactions contemplated by the Other Contract occur simultaneously.
Section 9.3 Failure of Conditions. (a) If any condition described in
Section 9.1 is not satisfied as of the Closing Date, then Company may, at its
sole option and as its sole and exclusive remedy: (i) extend the Closing Date
for up to an additional thirty (30) days to allow for the satisfaction of such
conditions, by written notice thereof to Owner and the Title Company; (ii)
proceed to Closing without any abatement or reduction in the Purchase Price; or
(iii) terminate this Agreement by written notice thereof to Owner and the Title
Company at any time on or before the Closing. If the Company so extends the
Closing Date and any such conditions remain unsatisfied at the end of such
extended period, then the Company shall have the option, in its sole discretion,
to either: (i) terminate this Agreement by written notice thereof to Owner and
the Title Company; or (ii) proceed to the Closing without abatement or reduction
in the Purchase Price. Upon termination of this Agreement pursuant to this
Section 9.3, the
20
Deposit shall be returned to the Company, and neither party shall have any
further rights, obligations or liabilities under this Agreement, except for the
obligations set forth in this Agreement that expressly survive termination of
this Agreement. The conditions set forth in this Section 9.3 are for the
Company's sole benefit, and the Company may, in its sole discretion, waive
(conditionally or absolutely) the fulfillment of any one or more of the
conditions, or any part thereof. Owner shall not take or authorize, directly or
indirectly, any action that modifies or changes the circumstances upon which the
conditions set forth in Section 9.1 were deemed satisfied or waived by the
Company without the Company's prior written consent.
(b) If any condition described in Section 9.2 is not satisfied as of
the Closing Date, then Owner may, as its sole and exclusive remedy, (i) extend
the Closing Date for up to an additional thirty (30) days to allow for the
satisfaction of such conditions, by written notice thereof to the Company; (ii)
terminate this Agreement by written notice thereof to the Company at any time on
or before the Closing; or (iii) proceed to the Closing without any abatement or
reduction in the Purchase Price. If the Owner so extends the Closing Date and
any such conditions remain unsatisfied at the end of such extended period, then
the Owner shall have the option, in its sole discretion, to either: (i)
terminate this Agreement by written notice thereof to Owner and the Title
Company; or (ii) proceed to the Closing without abatement or reduction in the
Purchase Price. Upon termination of this Agreement under this Section 9.3(b),
the Deposit shall be returned to the Owner, and thereafter neither party shall
have any further rights, obligations or liabilities under this Agreement, other
than with respect to those rights and obligations that are expressly to survive
a termination of this Agreement. The conditions set forth in this Section 9.3(b)
are for Owner's sole benefit, and Owner may, in its sole discretion, waive the
fulfillment of any one or more of the conditions, or any part thereof. Company
shall not take or authorize, directly or indirectly, any action that modifies or
changes the circumstances upon which the conditions set forth in Section 9.2
were deemed satisfied or waived by the Owner without the Owner's prior written
consent.
(c) In addition to and without limiting the provisions of Section
9.3(a) and (b) above, Owner and the Company agree that each shall have the
unilateral right upon written notice to the other and the Title Company, to
extend the Closing Date for such period of time as may be necessary for the
Existing Lender to finally approve or disapprove the Application.
ARTICLE X
CLOSING
Section 10.1 Closing. Closing of the transactions contemplated
hereby (the "CLOSING") shall be consummated by mail through the offices of First
American Title Insurance Company, 0000 X Xxxxxx, X.X., Xxxxx 000-X, Xxxxxxxxxx,
X.X. 00000, on the date that is twenty (20) days after the expiration of the
Study Period (such date, as the same may be extended pursuant to the terms of
this Agreement, being herein called the "CLOSING DATE"; if the then scheduled
Closing Date is not a Business Day, then the Closing Date shall be the next
succeeding Business Day). Time shall be of the essence with respect to the
obligations of Owner and the Company to be performed on the Closing Date.
21
ARTICLE XI
CLOSING MATTERS
Section 11.1 Owner's Obligations. At the Closing, Owner shall:
(a) Affidavits. Execute and deliver to the Title Company such
affidavits and indemnity agreements as required by Section 4.7(a)
above.
(b) Deed. Execute and deliver to the Company a Deed in the form
attached hereto as Exhibit 11.1(b).
(c) FIRPTA Certificate. Execute and deliver to the Company a FIRPTA
Certificate substantially in the form attached hereto as Exhibit 11.1(c).
(d) Owner's Representation Certificate. Execute and deliver to the
Company the Owner's Representation Certificate as required by Section 5.3 above.
(e) Further Assurances. Execute (as applicable) and deliver (or
cause to be delivered) to the Company the Owner Closing Documents.
(f) Assignment and Assumption of Lease. Execute and deliver to the
Company an Assignment and Assumption of Lease in the form attached hereto as
Exhibit 11.1(f).
(g) Assignment of Existing Loan. Execute and deliver to the Company,
Existing Lender and the Title Company the documents and instruments necessary to
effect the assignment to the Company of the Existing Loan and Existing Loan
Documents, the assumption of the Owner's obligations under the Existing Loan
Documents, and the release of Owner, as well as any guarantors and other
obligated parties, under the Existing Loan Documents from all obligations under
the Existing Loan Documents and any related guarantees.
(h) Possession. Give full possession of the Property to the Company
(subject to the rights of the Tenant under the Leases), and in connection
therewith, turn over to the Company all keys, access codes and other equipment
and information necessary for the Company to have full and complete access to
the Property, subject only to the rights of Tenant under the Leases.
(i) Notice Letter to Tenant. Execute and deliver a letter to the
Tenant notifying the Tenant of the sale of the Property and indicating the new
address for notices under the Leases.
(j) Transfer Tax Forms. Execute and deliver all requisite transfer
tax forms and other documents required by law in order to consummate the
conveyance of the Property from Owner to the Company pursuant to this Agreement.
22
Section 11.2 The Company's Obligations. At the Closing, the Company
shall:
(a) Cash Balance. Deliver the Cash Balance to the Owner (as provided
in Section 2.3 above);
(b) Affidavits Execute and deliver to the Title Company such
affidavits and indemnity agreements as required by Section 4.7(b) above .
(c) The Company's Representation Certificate. Execute and deliver to
Owner the Company's Representation Certificate as required by Section 5.3 above.
(d) Further Assurances. Execute (as applicable) and deliver (or
cause to be delivered) to the Owner the Company's Closing Documents.
(e) Assignment and Assumption of Leases. Execute and deliver to the
Owner an Assignment and Assumption of Lease in the form attached hereto as
Exhibit 11.1(f).
(f) Assumption of Existing Loan. Execute and deliver to the Owner,
Existing Lender and the Title Company the documents and instruments reasonably
necessary to effect the assumption by the Company of the Owner's obligations
under the Existing Loan and Existing Loan Documents and the release of Owner, as
well as any guarantors and other obligated parties, under the Existing Loan
Documents from all obligations under the Existing Loan Documents and any related
guarantees, and pay to the Existing Lender all assumption fees, costs and
expenses required by the Existing Loan Documents to effect such assumption by
the Company and requisite consent by the Existing Lender.
(g) Transfer Tax Forms. Execute and deliver all requisite transfer
tax forms and other documents required by law in order to consummate the
conveyance of the Property from Owner to the Company pursuant to this Agreement.
ARTICLE XII
PRORATIONS AND ADJUSTMENTS
Section 12.1 Prorations and Adjustments. (a) Rents. All rents
payable by the Tenant to Owner under the Lease shall, at the Closing, be
apportioned between Owner and the Company as of 11:59 p.m. of the day
immediately prior to the Closing Date.
(b) Existing Loan Payments. Any current payments of principal and
interest, and any reserve amounts, due pursuant to the Existing Loan for the
month in which the Closing occurs shall at the Closing, be apportioned between
Owner and the Company as of 11:59 p.m. of the day immediately prior to the
Closing Date. All other payment items with respect to the Existing Loan shall be
brought current at the Closing by Owner.
(c) Reserves, etc. The Company shall reimburse Owner for all
reserves, impounds and other sums assigned to the Company that are then on
deposit with the Lender
23
and required to be maintained by the borrower under the Existing Loan Documents
in connection with the Existing Loan
(d) Real Estate Taxes. The Company and Owner shall only prorate real
estate for the Property that are actually due and payable during the Tax Year in
which the Closing Date occurs (the "CLOSING TAX YEAR"), regardless of the year
for which such taxes are assessed. As a result, if real estate taxes for the
Property are paid in arrears (i.e., taxes paid during any Tax Year are assessed
for or otherwise attributable to the previous Tax Year), there shall be no
proration of real estate taxes assessed for or attributable to the Property for
the Closing Tax Year (which would be due and payable during the following Tax
Year). There shall be no proration of real estate taxes other than as set forth
hereinabove and, as between the Company and Owner, the Company agrees that it
shall be solely responsible for all such real estate and personal property taxes
due and payable after the Closing. The proration of the real estate taxes
actually due and payable during the Closing Tax Year shall be calculated as
follows:
(i) Owner shall be responsible for that portion of such taxes
equal to (i) the total such taxes due and payable during the Closing Tax Year,
multiplied by (ii) a fraction, the numerator of which shall be the number of
days in the Closing Tax Year prior to the Closing Date, and the denominator of
which shall be 365; and
(ii) The Company shall be responsible for that portion of such
taxes equal to (i) the total such taxes due and payable during the Closing Tax
Year, multiplied by (ii) a fraction, the numerator of which shall be the number
of days in the Closing Tax Year subsequent to and including the Closing Date,
and the denominator of which shall be 365.
(e) Other Items. All other items which are customarily apportioned
in connection with the purchase and sale of real property similar to the
Property in the jurisdiction in which the Property is located shall, at the
Closing, be apportioned between the Owner and the Company as of 11:59 p.m. of
day immediately prior to the Closing; provided, however, that in no event shall
any item of expense be apportioned hereunder if, and to the extent that, such
expense item is the obligation of the Tenant under the Lease (it being agreed
that each of Owner and the Company shall look solely to the Tenant for the
payment of such expense during their respective periods of ownership).
(f) Tax Refunds. Notwithstanding the foregoing, any refunds of real
property taxes for tax years beginning prior to the Closing Date shall belong to
Tenant, and if paid to the Company shall be promptly refunded by the Company to
Tenant in accordance with the provisions of the Lease.
(g) Overage Rent.
(i) All reimbursements or payments in respect of operating
expenses, real estate taxes, and other charges (collectively, "OVERAGE RENT")
paid pursuant to the Lease for the accounting period in which the Closing occurs
shall when received be apportioned between Owner and the Company as of 11:59
P.M. of the day preceding the Closing Date. Owner shall
24
be entitled to receive the proportion of such Overage Rent (less any reasonable
costs and expenses incurred in the collection of such Overage Rent), that the
portion of such accounting period prior to the Closing Date bears to the entire
such accounting period. The Company shall be entitled to receive the proportion
of such Overage Rent (less any reasonable costs and expenses incurred in the
collection of such Overage Rent) that the portion of such accounting period from
and after the Closing Date bears to the entire such accounting period. If, prior
to the Closing, Owner shall receive any installments of Overage Rent
attributable to Overage Rent for periods from and after the Closing Date, such
sum shall be credited against the Cash Balance payable by the Company at the
Closing. As to Overage Rent in respect of an accounting period that shall have
expired prior to the Closing, but which shall be paid after the Closing, the
Company agrees that it will pay the entire amount over to Owner upon receipt
thereof, less the Company's reasonable costs of collection reasonably allocable
thereto. The Company agrees that it shall promptly render bills for any Overage
Rent in respect of an accounting period that shall have expired prior to Closing
but which shall be payable after the Closing, and use commercially reasonable
efforts in the collection of Overage Rent, provided, however, that the Company
shall have no obligation to commence any legal actions or proceedings to collect
any such Overage Rent. Owner shall furnish to the Company all information
relating to the period prior to the Closing that is reasonably necessary for the
billing of such Overage Rent. The Company shall deliver to Owner, concurrently
with the delivery to Tenant, copies of all statements relating to Overage Rent
for periods prior to the Closing.
(ii) To the extent that any portion of the Overage Rent is
required to be paid monthly or on another periodic basis, by Tenant on account
of estimated amounts for the current period, and at the end of each calendar
year (or, if applicable, at the end of each lease year or tax year, as the case
may be), such estimated amounts are to be recalculated based upon the actual
expenses, taxes and other relevant factors for that calendar (lease or tax)
year, with the appropriate adjustments being made with Tenant, then such portion
of the Overage Rent paid shall be prorated between Owner and the Company at the
Closing, based on such estimated payments (i.e., with Owner entitled to retain
all monthly and other periodic installments of such amounts paid with respect to
periods prior to the calendar month or other relevant period in which the
Closing Date occurs, Owner to pay to the Company at the Closing all monthly or
other relevant period installments of such amounts paid with respect to periods
following the calendar month or other relevant period in which the Closing
occurs and Owner and the Company shall apportion all monthly installments of
such amounts with respect to the calendar month in which the Closing occurs) and
at the time(s) of final calculation and collection from (or refund to) Tenant of
the amounts in reconciliation of actual Overage Rent for a period for which
estimated amounts have been prorated, there shall be a reproration between Owner
and the Company, with the net credit resulting from such reproration being
payable to the appropriate party (i.e., to Owner if the recalculated amounts
exceed the estimated amounts and to the Company if the recalculated amounts are
less than the estimated amounts).
Section 12.2 Costs and Expenses. Except as otherwise provided in
this Agreement, the Company shall be solely responsible for the following: (a)
all costs of preparation of the Survey for the Property; (b) all costs of
conducting all environmental tests
25
and other Due Diligence of and with respect to the Property; and (c) all costs
and fees in connection with the assumption of the Existing Loan. Owner shall pay
all costs associated with: (i) any costs of state, county, city, local,
municipal and township recording, transfer and similar taxes and impositions
with respect to the conveyance of the Property; (ii) repaying any indebtedness
secured by the Property (other than the Existing Loan); (iii) any gains taxes,
income taxes or similar taxes owing as a result of the transactions contemplated
hereby; and (iv) all costs associated with the issuance to the Company of the
new owner's policy of title insurance, including the premium for such policy and
the cost for a zoning endorsement (ALTA 3.1) and a comprehensive endorsement
(ALTA 9). All other endorsements shall be paid for by the Company. The Company
and Owner shall share equally escrow fees and other closing costs. The Company
and Owner shall each pay their respective legal fees and expenses incurred in
connection with the negotiation of this Agreement and all related documents, and
in addressing each such party's tax and securities issues.
ARTICLE XIII
DEFAULT
Section 13.1 Default By The Company. If (i) any of the
representations and warranties made by the Company in this Agreement (as updated
by the Company's Representation Certificate) are inaccurate or incorrect in any
material respect on the date made or deemed made, or (ii) if the Company fails
to perform its covenants, obligations or agreements under this Agreement and
such failure is not cured on or before the earlier of ten (10) days after
written notice by Owner to Company or the Closing Date, or (iii) the purchaser
under the Other Contract (the "OTHER PURCHASER") fails to perform its covenants,
obligations or agreements under the Other Contract and the seller under the
Other Contract (the `OTHER SELLER") terminates the Other Contract as a result of
such failure, then in any of such events, Owner's sole and exclusive remedy
shall be the right to cancel and terminate this Agreement and receive and retain
the Deposit (provided, however, that if the Company is then obligated to post
the Additional Deposit but has not done so, then Owner shall have a right to
receive the Initial Deposit and shall have a post termination damage claim
against the Company for the Additional Deposit and all expenses incurred by
owner in collecting same, including reasonable attorneys' fees). Upon such
termination, each party shall be released from all duties or obligations
contained herein except as may otherwise be expressly set forth in this
Agreement as surviving a termination of this Agreement, and the Title Company
shall immediately pay the Deposit to Owner as liquidated damages as the sole and
exclusive remedy of Owner, it being understood and agreed that Owner is hereby
releasing and/or waiving any right it might have to either specifically enforce
this Agreement or to xxx for damages (other than to collect the Additional
Deposit, as aforesaid, if the same had not been delivered to the Title Company
when due). Owner has agreed to this liquidated damage provision because of the
difficulty of ascertaining Owner's actual damages given the uncertainties of the
real estate market, fluctuating property values and differences of opinion with
respect to such matters.
Section 13.2 Default By Owner. If (i) any of the representations and
warranties made by Owner in this Agreement (as updated by Owner's Representation
Certificate) are
26
inaccurate or incorrect in any material respect on the date made or deemed made,
or (ii) if Owner fails to perform its covenants, obligations or agreements under
this Agreement and such failure is not cured on or before the earlier of ten
(10) days after written notice by the Company to Owner or the Closing Date, or
(iii) the Other Seller fails to perform its covenants, obligations or agreements
under the Other Contract and the Other Purchaser terminates the Other Contract
as a result of such failure, then the Company shall have the right, at its sole
option, to: (a) terminate this Agreement, whereupon the Deposit shall be
returned to the Company and neither party shall have any further right or
liability to the other under this Agreement except as may be otherwise expressly
set forth in this Agreement; (b) waive the default, misrepresentation or failure
to perform and proceed with the Closing without any adjustment or reduction in
the Purchase Price; or (c) receive the Deposit from the Title Company and pursue
an action for specific performance.
ARTICLE XIV
COORDINATION BETWEEN AGREEMENT AND OTHER CONTRACT
Section 14.1 Coordination of the Sale of the Property and the Other
Property. Owner and the Company acknowledge and agree that (i) the Property and
the Other Property are intended to be sold together as part of a single
integrated transaction, (ii) as a matter of convenience only, the parties have
agreed sell the Property and the Other Property pursuant to the terms of two
separate agreements (consisting of this Agreement and the Other Contract),
rather than pursuant to a single agreement, and (iii) cross defaulting this
Agreement and the Other Contract pursuant to Sections 13.1 and 13.2 is intended
to further the intent of the parties to consummate the sale of the Property and
the Other Property as a single integrated transaction. If the Other Contract is
terminated by the Other Seller or Other Purchaser thereunder for any reason
pursuant to the terms of the Other Contract (including, without limitation, if
the Other Purchaser terminates the Other Contract prior to the end of the due
diligence period under the Other Contract pursuant to Article III of the Other
Contract), then (i) this Agreement shall automatically terminate on the date on
which such Other Contract is so terminated, (ii) if, as a result of such
termination of such Other Contract, the deposit thereunder is payable to the
Other Seller, then the Deposit (and all interest accrued thereon) shall be paid
to Owner, (iii) if, as a result of such termination of the Other Contract, the
deposit thereunder is payable to the Other Purchaser, then the Deposit (and all
interest accrued thereon) shall be paid to the Company and (iv) thereafter
neither Owner nor the Company shall any further rights or obligations hereunder,
other than those which expressly survive the termination of this Agreement.
Section 14.2 Coordination of Closing Dates for the Sale of the
Property and the Other Property. Owner and the Company acknowledge that the
intent of the parties is that the Closing under this Agreement, and the closing
under the Other Contract, are all to occur simultaneously. If, as of any date,
the then current scheduled closing date under the Other Contract is, for any
reason, later than the then current scheduled Closing Date under this Agreement,
then and in such event, the scheduled Closing Date under this Agreement shall
automatically be adjourned to (and shall be) the then current scheduled closing
date under the
27
Other Contract. In furtherance of the foregoing, if the Other Seller or the
Other Purchaser has any right to adjourn the closing date under the Other
Contract and exercises such right, then the scheduled Closing Date under this
Agreement shall automatically be extended to the scheduled closing date under
the Other Contract.
ARTICLE XV
DAMAGE, DESTRUCTION OR CONDEMNATION
Section 15.1 Casualty. (a) If, between the date hereof and the
Closing, there shall occur a fire or other casualty affecting the Improvements
which is not a Major Casualty, then the Company shall have no right to terminate
this Agreement and shall purchase the Property in its damaged condition without
reduction of or offset against the Purchase Price or any other claim against
Owner. Owner shall assign to the Company the right to receive any insurance
proceeds payable to Owner as a result of such fire or other casualty (inclusive
of any rental interruption proceeds payable with respect to any period from and
after the Closing); provided, however, that Owner shall be entitled to retain
(to the extent theretofore paid to Owner), and shall not be obligated to assign
the right to receive (to the extent not theretofore paid to Owner), an amount of
such insurance proceeds equal to Owner's reasonable expenses, if any, incurred
in collecting such proceeds and repairing the damage caused by fire or other
casualty. For purposes hereof, a "MAJOR CASUALTY" means a fire in or other
casualty to the Improvements which causes damage or injury that the repair or
replacement cost of which would exceed Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00), as determined by the professional retained by the Company
to perform a structural and/or physical inspection of the Property in connection
with the Company's acquisition of the Property pursuant to this Agreement.
(b) If, between the date hereof and the Closing, there shall occur a
fire or other casualty affecting the Improvements which is a Major Casualty,
then the Company shall have the option, to be exercised by notice given to Owner
within ten (10) days after the Company has notice of such fir or other casualty,
to terminate this Agreement. If the Company shall so elect to terminate this
Agreement, then (i) the Company shall be entitled to the return of the Deposit
(and any interest thereon) and (ii) neither party hereto shall have any further
obligations or liabilities to the other with respect to the Property (or under
this Agreement), except for those which expressly survive the termination of
this Agreement. If the Company shall not elect to terminate this Agreement as
provided in this subsection (b), then this Agreement shall remain in full force
and effect with respect and the provisions of Section 15.1(a) above shall apply
to such damage and any insurance proceeds payable in connection therewith.
(c) Subject to the provisions of Section 15.1(a) and the applicable
provisions of the Lease, Owner shall not have any obligation to repair any
damage or destruction to the Improvements
Section 15.2 Condemnation or Taking. If, prior to the Closing, the
Property or any part thereof shall be condemned or taken and such condemnation
or taking materially
28
interferes with the existing business use of the Property, the Company may (a)
terminate this Agreement, or (b) complete the transactions contemplated by this
Agreement notwithstanding such condemnation. If the Company elects to complete
the transactions contemplated hereby, the Company shall be entitled to receive
the condemnation proceeds and Owner shall, at the Closing and thereafter,
execute and deliver to the Company all required assignments of claims and other
similar items. If the Company elects to terminate this Agreement, then upon
written notice to Owner and without further action of the parties, this
Agreement shall become null and void and no party shall have any rights or
obligations under this Agreement.
ARTICLE XVI
BROKERS
Section 16.1 Brokers. Owner, on the one hand, and the Company, on
the other, hereby represent and warrant each to the other that it has not
authorized any broker, agent or finder to act on its behalf in connection with
the transaction contemplated by this Agreement except CB Xxxxxxx Xxxxx and
Transwestern Commercial Services (the "BROKERS"), who have been engaged by Owner
pursuant to separate written agreements, and shall be paid by Owner, it being
agreed that the Company shall have no liability for any commissions, fees
payments or other sums payable to the Brokers or either of them. Each party
agrees that it shall indemnify, defend and save the other harmless from and
against any cost, expense, claim, loss, liability or damages, including
reasonable attorneys' fees and court costs, resulting from a breach of the
foregoing representation and warranty. The terms and provisions of this Section
16.1 shall survive the Closing or any earlier termination of this Agreement.
ARTICLE XVII
MISCELLANEOUS
Section 17.1 Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given/received: (a) on the date delivered if delivered personally; (b) on
the date sent if sent by facsimile, with a copy sent by one of the other methods
of delivery described in this Section; (c) the next Business Day after deposit
with a recognized overnight courier service when marked for delivery on the next
Business Day; or (d) five (5) days after mailing if sent by registered or
certified United States mail, properly addressed and postage pre-paid, and
addressed to the party for whom it is intended at the address hereinafter set
forth:
If to Owner : Stonewater Dox Funding LLC
x/x Xxxxxxxxxx Xxxxxxx Xxxxxxxxxxxxx Xxxx XXX
0000 Avenue of the Americas LLC
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxx Xxxxxxxx
Fax: (000) 000-0000
29
with a copy to each of : Stonewater Partners
000 Xxxxxxxxxx Xxxxxx
Xxxxx 000
Xxxxx Xxxxxx, Xxx Xxxx 00000
Attn: Xxxx Xxxxxxx
Fax: (000)-000-0000
And
Xxxxx Xxxx LLP
1290 Avenue of the Americas
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. Xxxxx
Fax: (000) 000-0000
If to the Company: Gladstone Commercial Limited Partnership
c/o Gladstone Commercial Corporation
0000 Xxxxxxxxxx Xxxxx
Xxxxxx Xxxxx
XxXxxx, XX 00000
Attn: Mr. Xxxxxxxxxxx Xxxxxx
Fax: (000) 000-0000
with a copy to: Xxxxxxxxx Xxxxxxx Xxxxx & Xxxxxxxx LLP
0000 X Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attn: Xxxxx X. Xxxxx, Esq.
Fax: 000-000-0000
Either party may designate a change of address by written notice to the other in
accordance with the provisions set forth above, which notice shall be given at
least ten (10) days before such change of address is to become effective. The
attorney for either party may send notices on that party's behalf.
Section 17.2 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the respective personal representatives, heirs,
successors and assigns of the parties. Owner shall not have any right to assign
its rights or obligations under this Agreement without the prior written consent
of the Company. The Company shall have no right to assign its rights or
obligations under this Agreement without the prior written consent of Owner.
Notwithstanding the foregoing; Company may assign its rights and obligations
under this Agreement to any person or entity that is an affiliate of the
Company, without the consent of Owner, provided that (i) the Company is not
released from its liability hereunder, (ii) such assignee assumes all of the
obligations of the Company under this Agreement, (iii) the Company delivers a
copy of the assignment and assumption agreement to the Owner at or prior
30
to Closing, (iv) the assignee is a single purpose bankruptcy remote entity that
meets the requirements set forth in the Existing Loan Documents for the borrower
thereunder, and (v) such assignee has been approved by the holder of the
Existing Loan as the new borrower under the Existing Loan. As used herein, an
affiliate is a person or entity controlled by, under common with, or
controlling, another person or entity. Any assignment or attempted assignment of
this Agreement or the rights and obligations hereunder other than strictly in
accordance with the provisions of this Section 17.2 shall be null and void and
of no force or effect.
Section 17.3 1031 Exchange. Owner hereby advises the Company that
the sale of the Property may be part of a tax-free exchange under Section 1031
of the Internal Revenue Code for Owner. The Company hereby agrees to take all
reasonable steps on or before the Closing Date to facilitate such exchange if
requested by Owner, provided that (a) the Company shall not be required to
acquire any substitute property, (b) such exchange shall not affect the
representations, warranties, liabilities and obligations of the parties to each
other under this Agreement, (c) the Company shall not incur any additional cost,
expense or liability in connection with such exchange, and (d) no dates in this
Agreement will be extended as a result thereof. Notwithstanding anything to the
contrary contained in the foregoing, if Owner so elects to close the transfer of
the Property as an exchange, then (i) Owner, at its sole option, may delegate
its obligations to transfer the Property under this Agreement, and may assign
its rights to receive the Purchase Price from the Company, to a deferred
exchange intermediary (an "INTERMEDIARY") or to an exchange accommodation
titleholder, as the case may be; (ii) such delegation and assignment shall in no
way reduce, modify or otherwise affect the obligations of Owner pursuant to this
Agreement; (iii) Owner shall remain fully liable for its obligations under this
Agreement as if such delegation and assignment shall not have taken place; (iv)
Intermediary or exchange accommodation titleholder, as the case may be, shall
have no liability to the Company; and (v) the closing of the transfer of the
Property to the Company shall be undertaken by direct deed from Owner to the
Company or to exchange accommodation titleholder, as the case may be.
Section 17.4 Governing Law. This Agreement shall be construed and
enforced in accordance with the laws of the state in which the Property is
located, excluding conflicts of laws principles.
Section 17.5 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument; provided, however,
in no event shall this Agreement be effective unless and until signed by all
parties hereto.
Section 17.6 Further Assurances. In addition to the obligations
required to be performed hereunder by Owner and the Company at or prior to the
Closing, each party, from and after the Closing, shall execute, acknowledge
and/or deliver such other instruments, as may reasonably be requested in order
to effectuate the purposes of this Agreement; provided, however, that the
foregoing provisions of this Section 17.6 shall not obligate either party to
31
execute, acknowledge or deliver any instrument which would or might impose upon
such party any additional liability or obligations (beyond that imposed upon on
it under the documents delivered by such party at the Closing and the other
provisions of this Agreement which survive the Closing).
Section 17.7 Recitals; Exhibits. Each and all of the recitals set
forth above and the exhibits attached hereto are hereby incorporated into this
Agreement by reference.
Section 17.8 Rules of Construction. Section captions used in this
Agreement are for convenience only and shall not affect the construction of the
Agreement. All references to "Articles" and "Sections," without reference to a
document other than this Agreement are intended to designate articles and
sections of this Agreement, and the words "herein," "hereof," "hereunder" and
other words of similar import refer to this Agreement as a whole and not to any
particular Section, unless specifically designated otherwise. The use of the
term "including" shall mean in all cases "including but not limited to," unless
specifically designated otherwise. No rules of construction against the drafter
of this Agreement shall apply in any interpretation or enforcement of this
Agreement, any documents or certificates executed pursuant hereto, or any
provisions of any of the foregoing.
Section 17.9 Time of Essence; Force Majeure. Time is important to
all parties in the performance of this Agreement, and the parties have agreed
that strict compliance is required as to any date set out in this Agreement.
Notwithstanding the foregoing, in the event that Owner or the Company shall be
delayed, hindered in or prevented from the performance of any act or obligation
required under this Agreement by reason of acts of God, strikes, lockouts, labor
troubles or disputes, inability to procure or shortage of materials or labor,
failure of power or utilities (that are not due to the negligence or willful
misconduct of Owner, the Company or their respective agents), delay in
transportation, fire, vandalism, accident, flood, severe weather, other
casualty, requirements imposed by Governmental Authorities, riot, insurrection,
civil commotion, sabotage, explosion, war, natural or local emergency, acts or
omissions of others, including the other party, or other reasons of a similar or
dissimilar nature not solely the fault of, or under the exclusive control of
such party, then performance of such act or obligation shall be excused for the
period of the delay and the period for the performance of any such act or
obligation shall be extended for the period equivalent to the period of such
delay. Provided, however, none of the Company's monetary obligations under this
Agreement shall be so excused or abated as a result of the provisions of this
Section 17.9.
Section 17.10 Entire Agreement. This Agreement and the exhibits
attached hereto and thereto contain the entire agreement between the parties
relating to the Property, all prior negotiations between the parties, including,
without limitation, any letter of intent, access agreement and confidentiality
agreement (including all amendments or modifications thereof), are merged in
this Agreement, and there are no promises, agreements, conditions, undertakings,
warranties or representations, oral or written, express or implied, between them
other than as herein set forth. No change or modification of this Agreement
shall be valid unless the same is in writing and signed by the parties hereto.
No waiver of any of the
32
provisions of this Agreement and other agreements referred to herein shall be
valid unless in writing and signed by the party against whom it is sought to be
enforced.
Section 17.11 No Third Party Beneficiary. This Agreement and each of
the provisions hereof are solely for the benefit of Owner and the Company and
their permitted assigns. No provisions of this Agreement, or of any of the
documents and instruments executed in connection herewith shall be construed as
creating in any person or entity other than Owner and the Company and their
permitted assigns any rights of any nature whatsoever
Section 17.12 Severability. If any provision in this Agreement is
found by a court of competent jurisdiction to be in violation of any applicable
law, and if such court should declare such provision of this Agreement to be
unlawful, void, illegal or unenforceable in any respect, the remainder of this
Agreement shall be construed as if such unlawful, void, illegal or unenforceable
provision were not contained therein, and the rights, obligations and interests
of the parties hereto under the remainder of this Agreement shall continue in
full force and effect undisturbed and unmodified in any way.
Section 17.13 Waiver of Trial by Jury. EACH PARTY HEREBY WAIVES,
IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY ACTION BROUGHT ON, UNDER
OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS
OR CERTIFICATES EXECUTED IN CONNECTION HEREWITH, THE PROPERTIES, OR ANY CLAIMS,
DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS PERTAINING HERETO OR TO ANY OF THE
FOREGOING.
Section 17.14 Attorneys' Fees. In the event that there shall be a
dispute under this Agreement resulting in the institution of any action or
proceeding by Owner or the Company against the other, the prevailing party shall
be entitle to receive from the other party reasonable attorneys' fees and
disbursements and all court costs and expenses incurred in connection with such
action or proceeding.
Section 17.15 No Recording. Neither this Agreement nor any
memorandum hereof shall be recorded. Each party hereby agrees to indemnify and
hold harmless the others for all liabilities, losses, damages, liens, suits,
claims, costs and expenses (including reasonable attorneys' fees) incurred by
the others by reason of a breach of the foregoing covenant.
Section 17.16 Survival. All representations, warranties, covenants,
agreements and indemnities set forth in or made pursuant to this Agreement and
any indemnification related thereto shall remain operative, and shall survive
the Closing under this Agreement, only with respect to claims made in writing
not later than twelve (12) months after the Closing.
ARTICLE XVIII
CONFIDENTIALITY
Section 18.1 Public Announcements. Except as provided otherwise in
this Section 18.1, Owner and the Company hereby agree that they will not, and
shall direct their
33
respective employees, officers, agents and representatives not to, directly or
indirectly, release or cause or permit to be released to the public prior to the
Closing any press notices, publicity (oral or written) or advertising promotion
relating to, or otherwise publicly announce or disclose or cause or permit to be
publicly announced or disclosed, in any manner whatsoever, the terms, conditions
or substance of this Agreement or the transactions contemplated herein, without
first obtaining the consent of the Company and the Owner, which consent shall
not be unreasonably withheld. It is understood that the foregoing shall not (i)
preclude any party from discussing the substance or any relevant details of the
transactions contemplated in this Agreement on a confidential basis with any of
its partners, attorneys, officers, directors, employees, accountants,
professional consultants, financial advisors, rating agencies, or potential
lenders, as the case may be (the "REPRESENTATIVES") provided that such
Representatives have been informed of the parties' obligations hereunder and the
obligations of the parties under securities laws with respect to disclosure of
information and trading in the stock of Company or its Affiliates or (ii)
prevent it from complying with applicable laws, including, without limitation,
governmental regulatory, disclosure, tax and reporting requirements. Owner and
the Company shall each have the right to seek and obtain equitable relief to
enforce the provisions of this Article XVIII.
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the day and year first above written.
WITNESS: OWNER:
STONEWATER DOX FUNDING LLC, a Delaware
limited liability company
By: ________________________ By: ___________________________________
Name: ________________________ Name: ___________________________________
Title: ________________________ Title: Authorized Signatory
THE COMPANY:
GLADSTONE COMMERCIAL LIMITED
PARTNERSHIP, a Delaware limited partnership
By: Gladstone Commercial Partners, LLC
By: Gladstone Commercial Corporation
By: ________________________ By: __________________________________
Name: ________________________ Name: Xxxxxx X. Xxxxx
Title: ________________________ Title: Principal and Managing Director
34
EXHIBIT A
LEGAL DESCRIPTION OF THE LAND
The land referred to in this policy is described as follows:
TRACT 1:
Xxx 0 xx Xxxxx Xxxx xx Xxx 0 xx Xxx 0 Development Subdivision, as per Plat
recorded as Document 98R 28668, situated in Champaign County, Illinois.
TRACT 2:
Xxxx 0 xxx 0 xx Xxxxx Xxxx of Xxxx 0, 0 xxx 0 xx Xxx 3 Development Subdivision,
a subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.
TRACT 3:
Xxx 0 xx Xxxxx Xxxx xx Xxxx 0, 0 and 7 of Par 3 Development Subdivision, a
subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.
TRACT 4:
Xxx 0 xx Xxxxx Xxxx xx Xxx 0 Xxx 0 Development Subdivision recorded as Document
98R 14068, situated in Champaign County, Illinois.
EXHIBIT 1.4
EXISTING LOAN DOCUMENTS
1. Agreement regarding required insurance between Owner and Xxxxx Fargo Bank,
National Association
2. Assignment of Management Contracts
3. Cash Management Agreement
4. Guarantor Release Agreement
5. Lender's Instructions to Escrow Agent
6. Letter for Guarantor Release
7. Limited Guaranty by Drawbridge Special Opportunity Funds LP
8. Limited Guaranty by Drawbridge Special Opportunity Funds LP, Stonewater
Funding LLC, and Stonewater Partners, Inc.
9. Limited Guaranty by Stonewater Funding LLC
10. Limited Guaranty by Stonewater Partners Inc.
11. Letter re: Loan Securitization and Sale
12. Mortgage and Absolute Assignment of Rents and Leases and Security
Agreement
13. Payment direction letter to Tenant
14. Payment method agreement made by Owner
15. Promissory Note Secured by Mortgage
16. Subordination Agreement and Non-Disturbance and Attornment Agreement
17. UCC Financing Statement with respect to mortgage
18. Estoppel Certificate
19. Xxxxx Fargo Letter re: Satisfaction of Contingent Terms Pursuant to
Approved Property Expansion
EXHIBIT 1.8
DESCRIPTION OF LEASES
Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated January 29, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated February 25, 1999, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain Addendum Number One to Lease,
dated December 22, 2000.
Lease, dated December 22, 2000, between Stonewater Dox Funding LLC
(successor-in-interest) to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain Addendum No. 1 to Lease, dated
September 18, 2001, as further amended by that certain Amendment to Lease, dated
September 14, 2004, and as further amended by that certain Addendum No. 2 to
Lease, dated February 25, 2005.
EXHIBIT 2.2
FORM OF ESCROW AGREEMENT
This Escrow Agreement (this "AGREEMENT") is made and entered into this ___
day of November, 2005, among STONEWATER DOX FUNDING LLC, a Delaware limited
liability company ("OWNER"), and GLADSTONE COMMERCIAL LIMITED PARTNERSHIP, a
Delaware limited partnership (the "COMPANY"), and FIRST AMERICAN TITLE INSURANCE
COMPANY ("ESCROW AGENT"). Reference is made to that certain Purchase Agreement
dated as of November __, 2005 (the "CONTRACT"), between Owner and the Company.
The defined terms used in this Agreement shall have the meanings set forth in
the Contract.
The Company and Owner have agreed to select Escrow Agent to serve as
escrow agent with respect to the Deposit to be made by the Company pursuant to
the Contract. The purpose of this Agreement is to prescribe instructions
governing the services of Escrow Agent with respect to the Deposit and the
Closing.
1. Owner and the Company hereby engage Escrow Agent to serve as escrow
agent with respect to the Deposit made by the Company pursuant to the terms of
the Contract, a copy of which has been delivered to and received by Escrow
Agent. Escrow Agent hereby accepts such engagement.
2. Escrow Agent acknowledges receipt of the Deposit and agrees to place
the Deposit into an interest-bearing escrow account and to notify the Company
and Owner of the location and number of such interest-bearing account. Interest
shall be maintained in the escrow account as a part of the Deposit and credited
to the Company for tax purposes. The Company's Federal Taxpayer Identification
Number is 00-0000000.
3. Escrow Agent shall disburse the Deposit and any interest earned thereon
in accordance with the terms and conditions of the Contract, provided that
Escrow Agent shall first give each party ten (10) days written notice in
accordance with Section 17.1 of the Contract of Escrow Agent's intent to
disburse, and upon receipt of written objection to such disbursement by either
party, Escrow Agent shall act in accordance with Section 4 herein. At the time
of the Closing, if any, if the Deposit has not been disbursed previously in
accordance with the Contract, then Escrow Agent shall disburse the Deposit and
interest thereon to Owner to be credited against the Purchase Price.
4. In the event that there is a dispute regarding the disbursement or
disposition of the Deposit or the interest earned thereon, or in the event
Escrow Agent shall receive conflicting written demands or instructions with
respect thereto, then Escrow Agent shall withhold such disbursement or
disposition until notified by both parties that such dispute is resolved or
Escrow Agent may file a suit of interpleader at the cost and expense of Owner
and the Company.
5. Escrow Agent shall not be liable for any damage, liability or loss
arising out of or in connection with the services rendered by Escrow Agent
pursuant to this Agreement unless the same results from the negligence, gross
negligence, or willful misconduct of Escrow Agent.
6. Copies of all notices given by any party hereunder shall be delivered
in person or mailed, postage prepaid, to all other parties hereto, to the
following addresses:
(1) If to the Company Gladstone Commercial Limited Partnership
c/o Gladstone Commercial Corporation
0000 Xxxxxxxxxx Xxxxx
Xxxxxx Xxxxx
XxXxxx, XX 00000
Attn: Mr. Xxxxxxxxxxx Xxxxxx
Fax: (703) (000) 000-0000
with a copy to: Xxxxxxxxx Xxxxxxx Xxxxx & Xxxxxxxx LLP
0000 X Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attn: Xxxxx X. Xxxxx, Esq.
Fax: (000) 000-0000
(2) If to the Owner: Stonewater Dox Funding LLC
x/x Xxxxxxxxxx Xxxxxxx Xxxxxxxxxxxxx Xxxx
XXX
0000 Avenue of the Americas LLC
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxx Xxxxxxxx
Fax: (000) 000-0000
with a copy to each of: Stonewater Partners
000 Xxxxxxxxxx Xxxxxx
Xxxxx 000
Xxxxx Xxxxxx, Xxx Xxxx 00000
Attn: Xxxx Xxxxxxx
Fax: (000)-000-0000
and
Xxxxx Xxxx LLP
1290 Avenue of the Americas
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. Xxxxx
Fax: 000-000-0000
2
7. The instructions contained herein may not be modified, amended or
altered in any way except by a writing (which may be in counterpart copies)
signed by Owner, the Company and Escrow Agent. Notices for Owner and the Company
may be given by the respective attorneys for each such party.
8. The Company and Owner reserve the right, at any time and from time to
time, to jointly substitute a new escrow agent in place of Escrow Agent.
9. This Agreement is intended solely to supplement and implement the
provisions of the Contract and is not intended to modify, amend or vary any of
the rights or obligations of the Company or Owner under the Contract.
10. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument; provided, however, in no event shall
this Agreement be effective unless and until signed by all parties hereto.
[BALANCE OF PAGE INTENTIONALLY LEFT BLANK]
[SIGNATURES FOLLOW ON THE NEXT PAGE]
3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.
WITNESS: OWNER:
STONEWATER DOX FUNDING LLC,
a Delaware limited liability company
By: __________________ By: _______________________________________
Name: __________________ Name: _______________________________________
Title: __________________ Title: Authorized Signatory
THE COMPANY:
GLADSTONE COMMERCIAL LIMITED
PARTNERSHIP, a Delaware limited partnership
By: Gladstone Commercial Partners, LLC
By: Gladstone Commercial Corporation
By: __________________ By: _______________________________
Name: __________________ Name: Xxxxxx X. Xxxxx
Title: __________________ Title: Principal and Managing Director
ESCROW AGENT:
FIRST AMERICAN TITLE INSURANCE COMPANY
By: _______________________________________
Name: Xxxxxxx Xxxxxxx
Title: Vice President
4
EXHIBIT 3.2.1
DOCUMENTS PREVIOUSLY DELIVERED BY OWNER
Date Sent Format
--------- ------
Loan Documents:
Agreement regarding required insurance between Owner and Xxxxx
Fargo Bank, National Association 10/17 PDF
Assignment of Management Contracts 10/17 PDF
Cash Management Agreement 10/17 PDF
Guarantor Release Agreement 10/17 PDF
Lender's Instructions to Escrow Agent 10/17 PDF
Letter for Guarantor Release 10/17 PDF
Limited Guaranty by Drawbridge Special Opportunity Funds LP 10/17 PDF
Limited Guaranty by Drawbridge Special Opportunity Funds LP, Stonewater Funding
LLC, and Stonewater Partners Inc. 10/17 PDF
Limited Guaranty by Stonewater Funding LLC 10/17 PDF
Limited Guaranty by Stonewater Partners Inc. 10/17 PDF
Letter re: Loan Securitization and Sale 10/17 PDF
Mortgage and Absolute Assignment of Rents and Leases and Security Agreement 10/17 PDF
Payment direction letter to Tenant 10/17 PDF
Payment method agreement made by Owner 10/17 PDF
Promissory Note Secured by Mortgage 10/17 PDF
Subordination Agreement and Non-Disturbance and Attornment Agreement 10/17 PDF
UCC Financing Statement with respect to mortgage 10/17 PDF
Estoppel Certificate 10/17 PDF
Xxxxx Fargo Letter re: Satisfaction of Contingent Terms Pursuant to Approved Property 10/17 PDF
Expansion
Leases:
0000 Xxx Xxxxx Lease 10/17 PDF
First Addendum to Lease (0000 Xxx Xxxxx) 10/17 PDF
Addendum Number Two to Lease (0000 Xxx Xxxxx) 10/17 PDF
0000 Xxx Xxxxx Lease 10/17 PDF
First Addendum to Lease (0000 Xxx Xxxxx) 10/17 PDF
Addendum Number Two to Lease (0000 Xxx Xxxxx) 10/17 PDF
0000 Xxx Xxxxx Lease 10/17 PDF
First Addendum to Lease (0000 Xxx Xxxxx) 10/17 PDF
Addendum Number Two to Lease (0000 Xxx Xxxxx) 10/17 PDF
0000 Xxx Xxxxx Lease 10/17 PDF
Addendum Number One to Lease (0000 Xxx Xxxxx) 10/17 PDF
0000 Xxx Xxxxx Lease 10/17 PDF
Addendum No. 1 to Lease (0000 Xxx Xxxxx) 10/17 PDF
Addendum to Lease (0000 Xxx Xxxxx)
Addendum No. 2 to Lease (0000 Xxx Xxxxx) 10/17 PDF
Property:
Survey 10/17 PDF
Final Plat 10/17 PDF
Owner's Certificate of Dedication-Addendum 1a 10/17 PDF
Owner's Certificate of Dedication-Addendum 1b 10/17 PDF
Owner's Certificate of Dedication-Addendum 1c 10/17 PDF
Certificates of Occupancy 10/17 PDF
Insurance Certificates 10/17 PDF
Third Party Reports:
PZR Zoning Report 10/17 PDF
Phase I Environmental Site Assessment 10/17 PDF
Property Condition Report 10/17 PDF
Mold Checklist 10/17 PDF
Title:
UCC Financing Statement with respect to mortgage 10/17 PDF
Creditors' Rights Affidavit 10/17 PDF
Partial Release and Termination Documents 10/17 PDF
Owner's Policy of Title Insurance 10/17 PDF
Unanimous Writing in Lieu of Meeting of the Members of Xxx 0 Xxxxxxxxxxx, X.X.X. 10/17 PDF
Owner's Authorization Certificate for Acquisition and Loan 10/17 PDF
Budget:
2005 Monthly Budget 10/17 XLS
2004 Monthly Budget 10/17 XLS
Amdocs 2004 Budget Reconciliation 10/17 XLS
2
EXHIBIT 3.2.2
SCHEDULE OF DOCUMENTS TO BE DELIVERED TO THE COMPANY
(1) The Lease, including without limitation, amendments, side letters, option
exercise letters and other documents, certificates or instruments applicable to
the Lease, subleases or similar instruments pursuant to which a person occupies
the Property; and copies of all pending lease proposals.
(2) A current rent roll, certified as accurate by Owner's chief financial
officer or an equivalent officer or official, together with all correspondence
between Owner and Tenant with regard to the Lease and Tenant's occupancy of the
Property.
(3) Existing studies, reports and appraisals, if any, relating to the Property
and in the possession and/or control of Owner.
(4) Financial information for Tenant.
(5) Full year 2004-2006 operating budget for and with respect to the Property,
together with financial information and records for the Property (including,
without limitation, financial statements, containing, at a minimum, statements
of profit and losses and balance sheets) for the last three (3) calendar years,
together with the books and records for the Property, including historical
property and operating statements, tax bills, capital expenditure records,
renovation budget(s) and maintenance records of the Property. Such statements
shall properly reflect the profit and loss from the management, leasing,
maintenance, repair and operation of the Property for three (3) years.
(6) Zoning reports.
(7) As-built plans and specifications for the Improvements on the Property, to
the extent reasonably available.
(8) Copies of all contracts, agreements, equipment leases, service and
maintenance agreements, and vendor contracts related to the Property.
(9) Copies of Owner's existing title policy for the Property, together with a
complete legal description and legible copies of all documents referred to in
the title reports or policies.
(10) Copies of existing "as-built" surveys of the Property, any readily
available topographical information and traffic studies in Owner's or its
property manager's possession.
(11) All environmental reports and studies in Owner's possession (including,
without limitation, all analytical data, remediation design, modeling, boring
logs, correspondence, directives, submissions and responses to or from
Governmental Authorities and environmental consultants) and notices and asbestos
reports and all reports, proposals and/or notices relating
to the physical condition of the Property, including, without limitation, any
soils reports, engineering, architectural or other structural reports or studies
and similar data relating to the Property in Owner's possession.
(12) Existing fire and casualty insurance policies (or summaries thereof) and
current certificates evidencing such coverage.
(13) All information concerning any pending real estate tax assessment appeals,
protests and proceedings.
(14) All agreements relating to leasing commissions affecting the Property, and
a list of leasing commissions to be discharged by Owner.
(15) Copies of all of the Existing Loan Documents.
(16) Copies of all construction contracts or other agreements to which Owner or
its agent is a party relating to ongoing construction work, repairs or
renovations being done to any Improvements at the Property.
(17) Copies of all agreements, proffers, if any, and other non-public documents
relating to land use restrictions or other conditions limiting or otherwise
affecting development of the Property.
(18) Copies of all unexpired warranties and guaranties covering the personal
property and the roof, elevators, heating and air conditioning systems and any
other components of the Improvements, and a list and description of any material
third party bonds, warranties and guaranties which will be in effect after the
Closing with respect to the Property, including, without limitation, the
Improvements.
(19) Copies of all certificates of occupancy, approvals, licenses and permits.
(20) Copies of any and all written claims, demands or notices from any third
party which concern or otherwise affect the Property received by Owner during
the prior three (3) years, or earlier if unresolved, including, without
limitation, written notice of potential litigation, written notices from any
Governmental Authority, copies of any reports issued by the local Fire Marshal
regarding inspection of the Improvements during Owner's ownership of the
Property and a list of major repairs (excluding tenant improvements) and major
casualties occurring during Owner's ownership of the Property, together with any
internal lists of claims or anticipated litigation related to the Property
prepared by or on behalf of Owner.
(21) True and complete copies of Owner's organizational documents, as well as
any fictitious name or similar filings, including all amendments to the
foregoing, certified as true and complete.
2
(22) All of the records of the architects, engineers and consultants related to
the Property in Owner's possession or in the possession of such architects,
engineers and consultants.
3
EXHIBIT 4.1
PERMITTED EXCEPTIONS
1. The state of facts shown on survey dated October 31, 2003, as last revised
November 14, 2003, made by HDC Engineering, Project #03344.
2. Taxes for the year 2005, which are a lien although not yet due & payable.
City of Champaign Township, 45-20-24-326-020, Tax Code 60. (Tract 1).
City of Champaign Township, 45-20-24-326-011, Tax Code 2. (part of Tract 2).
City of Champaign Township, 45-20-24-326-012, Tax Code 2. (part of Tract 2).
City of Champaign Township, 45-20-24-326-013, Tax Code 2. (Tract 3).
City of Champaign Township, 45-20-24-326-016, Tax Code 60. (Tract 4).
3. The land lies within the boundaries of Xxxxxxx Branch Mutual Drainage
District. (Tracts 1-4).
4. Easement in favor of Illinois Power Company, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded December 23, 1992 in book 1876 at page 506 as document no. 92R
36921, affecting the North 10 feet of Lot 7 and other land. (Tract 3).
5. Easement in favor of the City of Champaign, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded July 10, 1996 in book 2424 at page 500 as document no. 96R 17099.
(Tract 1).
6. Covenants, restrictions, easements and building setback lines contained in
the Owner's Certificate attached to and as shown on the Final Plat of Xxxx
0, 0 xxx 0 xx Xxx 3 Development Subdivision recorded July 10, 1996 in book
"CC" at page 185 as document no. 96R 17100, as amended by First Addendum
dated November 1, 2003 and recorded November 25, 2003 as document 2003 R
52074 which does not contain a reversionary or forfeiture clause. (Tracts
2 and 3).
7. Terms and provisions of an Annexation Agreement as disclosed by instrument
recorded July 23, 1996 in book 2428 at page 782 as document no. 96R 18251.
(Tracts 1-4).
Amendment No. 1 recorded February 14, 1997 as document no. 97R 3279.
Amendment No. 2 recorded January 14, 1998 as document no. 98R 1024.
Amendment No. 3 recorded June 15, 2000 as document no. 2000R 12962.
8. Easement in favor of Illinois Power Company, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded September 3, 1996 in book
2443 at page 169 as document no. 96R 22014, affecting a strip of land 10
feet in width over Lot 5. (Tract 2, Lot 5).
9. Covenants, restrictions, easements and building setback lines contained in
the Owner's Certificate attached to and as shown on the Final Plat of Xxx
0 xx Xxx 0 Xxxxxxxxxxx Xxxxxxxxxxx recorded May 18, 1998 as document no.
98R 14068, as amended by First Addendum dated November 1, 2003 and
recorded on November 25, 2003 as document 2003 R 52075, which does not
contain a reversionary or forfeiture clause. (Tract 4).
10. The right of tenants, as tenants only with no right or option to purchase
or right of first refusal.
11. Mortgage, Absolute Assignment of Rents and Leases and Security Agreement
(and Fixture Filing) dated November 21, 2003 and recorded November 25,
2003 as document 2003 R 52081 made by Stonewater DOX Funding LLC to Xxxxx
Fargo Bank, National Association, to secure a note for $10,000,000.
12. UCC-1 Financing Statement filed by Xxxxx Fargo Bank N.A., as secured
party, against Stonewater Dox Funding L.L.C., as debtor on December 30,
2003 under filing number 200312305627857.
2
EXHIBIT 4.2.1
TITLE INSURANCE REQUIREMENTS AND ENDORSEMENTS
This Memorandum will provide you with a checklist of standard title
insurance requirements for projects being acquired by Gladstone Commercial
Corporation, or an affiliated company ("GCC"). Additional or different
requirements may be specified for your particular transaction.
1. GENERAL:
(a) The maximum single risk assumed by any single title insurer may
not exceed 25% of that company's capital, surplus and statutory reserves. Excess
amounts may be covered by appropriate reinsurance arrangements with other
acceptable title insurance companies.
(b) The title insurance policy must be written by an insurer that
has an acceptable rating from at least one of the following independent rating
agencies:
- a "Financial Stability Rating" of "S" (Substantial) or better or a
"Statutory Accounting Rating" of "C" (Average) or better from Demotech, Inc.;
- a "BBB" or better rating from Duff and Xxxxxx Credit Rating
Company;
- a "C" or better rating from LACE Financial Corporation;
- a "Baa" or better rating from Xxxxx'x Investors Service; or
- a "BBB" or better rating from Standard and Poor's, Inc.
(c) Each title insurance policy must be written by an insurer
authorized to do business in the jurisdiction where the property is located.
(d) Subject to the satisfaction of other requirements set forth
herein, GCC will accept the standard 1992 ALTA form of loan title insurance
policy or the 1990, 1987 or 1970 (amended October 17, 1970, and October 17,
1984) form of owner's policies. GCC must receive and approve a commitment and a
pro forma owner's title insurance policy. Copies of all documents and/or surveys
referred to in the legal description or in the exceptions in Schedule B-I must
be submitted with the commitment. The title insurance company must remove (by
endorsement or written waiver) any creditors' rights exception or exclusion.
(e) If the 1990 or 1987 ALTA form of policy or a policy containing
similar arbitration provisions is used, the title insurance company must agree
that the compulsory arbitration provisions of the policy do not apply for any
claims by or on behalf of the insured.
(f) The policy must include an Environmental Protection Lien
Endorsement (ALTA Form 8.1). Subparagraph (b) of ALTA Form 8.1 may take
exception for an entire state statute that provides for environmental protection
liens that could take priority, only if specific sections or subsections are
referenced. A reference solely to a general statute is acceptable only
if approved in writing by GCC prior to closing. If no such statutes exist,
"None" should be entered in the space below subparagraph (b).
(g) The policy must include a Comprehensive Endorsement (ALTA Form
9).
2. SCHEDULE A - DESCRIPTION:
(a) The amount of the title insurance policy must equal at least the
original purchase price of the property.
(b) The effective date of the title policy must be as of the date
(and time, where available) of the recordation of the Deed.
(c) The policy must name as the insured the entity designated by GCC
as the owner.
(d) Schedule A must include a description of the Deed, with the
complete name of the instrument, the date of execution, recordation date and
recordation information.
(e) The legal description of the property in the title insurance
policy must precisely conform to that shown on the survey of the property.
Alternatively, the title insurance policy may be endorsed to provide that the
legal description is the same as shown on the survey.
(f) Any appurtenant easements (such as access or utility easements)
must be set forth in the legal description and affirmatively insured under
Schedule A as a separate insured interest in land.
(g) The title insurance policy must include, as an informational
note, in Schedule A (i) the recorded plat number (and recording information), if
any, and (ii) the property parcel number(s) or tax identifying number(s), as
applicable, for the property, if such numbers are available in the jurisdiction
in which the property is located.
3. SCHEDULE B-I - TITLE EXCEPTIONS:
(a) Standard exceptions (such as for parties in possession, other
matters not shown on public records and for filed and unfiled mechanics' and
materialmen's liens) must be deleted.
(b) The title insurance company must remove (by endorsement or
written waiver) any creditor's rights exception to or exclusion from the title
insurance policy.
(c) If the title insurance policy includes any exception for taxes,
assessments or other lienable items, it must expressly insure that such taxes,
assessments or items are not yet due and payable.
2
(d) The title insurance policy must contain no exception for any
filed or unfiled mechanics' or materialmen's liens.
(e) The standard survey exception to the title policy, if any, must
be deleted. Exceptions to specific matters shown in a recorded plat must be
specifically described and affirmative coverage must be obtained for any matters
listed.
(f) Any lien, encumbrance, condition, restriction or easement must
be included in the policy and must be described in sufficient detail so that its
nature, width and location, as applicable is readily discernible in the written
description. All exceptions which regard easement rights of others to the
property must be listed as an "Easement ...". The policy must affirmatively
insure that improvements do not encroach upon the listed easements or
affirmatively insure against loss or damage due to such encroachment.
(g) All easements listed in Schedule B-I must appear on the survey
noted by deed book and page number. If Schedule B-I indicates the presence of
any easements that are not specifically located, the title policy must provide
affirmative insurance against any loss resulting from the exercise by the holder
of such easement of its right to use or maintain that easement.
4. SCHEDULE B-II - SUBORDINATE MATTERS:
Tenants in possession under unrecorded leases must be listed as such
on Schedule B, Part II or included as an exception in Schedule B, Part I as
"rights of tenants in possession as of the date hereof, as tenant's only, under
unrecorded leases."
5. REQUIRED ENDORSEMENTS:
(a) ALTA 9 Comprehensive Endorsement
(b) Survey Endorsement
(c) ALTA 3.1 Zoning Endorsement (with additional coverage for number
and type of parking spaces)
(d) Doing Business Endorsement (as applicable)
(e) Access Endorsement
(f) Separate Tax Lot Endorsement
(g) Environmental Protection Lien Endorsement
(h) Subdivision Endorsement
(i) Contiguity Endorsement
3
(j) Creditor's Rights Endorsement (as applicable)
(k) Tax Deed Endorsement (as applicable)
(l) Mechanics' Lien Endorsements (as applicable)
(m) Non-Imputation Endorsement (as applicable)
(n) Fairways Endorsement (as applicable)
(o) Condominium Endorsement (as applicable)
4
EXHIBIT 4.2.2
[FORM OF SURVEYOR CERTIFICATION]
[NAME], a registered land surveyor, License No. [NUMBER], in and for the
State of __________ and legally doing business in __________ County, does hereby
certify to Gladstone Commercial Corporation, a Delaware corporation, its
successors and assigns] and [TITLE COMPANY] and [LENDER]:
1. The accompanying survey ("SURVEY") represents a true and correct survey made
by me on ________________, 200_ of the land therein particularly described.
2. The Survey and the information, courses and distances shown thereon are
correct.
3. The title lines and lines of actual possession are the same.
4. The land described in the Survey is the same as described in the title
insurance commitment described below.
5. The area of the subject property and the size, location and type of buildings
and improvements and any other matters situated on the subject property are as
shown and all buildings and improvements are within the boundary lines and
applicable set-back lines of the property.
6. There are no violations of zoning ordinances, restrictions or other rules and
regulations with reference to the location of said buildings and improvements.
7. There are no easements or uses affecting this property appearing from a
careful physical inspection of the same, other than those shown and depicted on
the Survey.
8. There are no encroachments on the adjoining properties, streets, or alleys by
any of said buildings, structures and improvements, other than as shown on the
Survey.
9. There are no party walls or visible encroachments on said described property
by streets, alleys or buildings, structures or other improvements situated on
adjoining property, except as shown on the Survey.
10. All utility services required for the operation of the premises either enter
the premises through adjoining public streets, or the Survey shows the point of
entry and location of any utilities that pass through or are located on
adjoining land.
11. The Survey shows the location and direction of all visible storm drainage
systems for the collection and disposal of all roof and surface drainage.
12. Any discharge into streams, rivers or other conveyance system is shown on
the Survey.
13. The subject property [INSERT "DOES" OR "DOES NOT"] lie within a Special
Flood Hazard Area ("SFHA") as defined by the Federal Emergency Management
Agency; the property lies within Zone(s) __________ [ONLY ZONES WITH PREFIXES OF
"A" OR "V" ARE IN SFHAS] of the Flood Insurance Rate Map identified as Community
Panel No. ____________, bearing an effective date of ________________.
14. The subject property has access to and from a duly dedicated and accepted
public street or highway [IF NOT, SO STATE].
15. [EXCEPT AS SHOWN ON THE SURVEY,] the subject property does not serve any
adjoining property for drainage, utilities or ingress or egress.
16. The record description of the subject property forms a mathematically closed
figure [IF NOT, SO STATE].
17. The undersigned has received and examined a copy of [COMPANY] Title
Company's Commitment No. [NUMBER]; and the location of any matter shown thereon,
to the extent it can be located, has been shown on this Survey with the
appropriate recording reference.
18. The parties listed above are entitled to rely on the survey and this
certificate as being true and accurate.
19. This Survey is made in accordance with the 1999 "Minimum Standard Detail
Requirements for Land Title Surveys" jointly established and adopted by American
Land Title Association ("ALTA") and American Congress on Surveying and Mapping
("ACSM") and meets the requirements of an Urban Survey, as defined in the
current accuracy standards jointly adopted by ALTA and ACSM and includes items
1, 2, 3, 4, 6, 7(a,b,&c), 8, 9, 10, 11(a), 13 (including uses), 14, 15, and 16
of Table A thereof.
20. [IF THE CERTIFICATE IS ATTACHED TO RATHER THAN TYPED OR OTHERWISE REPRODUCED
ON THE FACE OF THE SURVEY, ADD A PARAGRAPH SPECIFICALLY IDENTIFYING THE SURVEY
(SUCH AS BY DATE, PROPERTY DESCRIPTION AND SURVEY NUMBER) TO WHICH THE
CERTIFICATE RELATES.]
_______________________________________________
[SIGNATURE]
_______________________________________________
[TYPE NAME OF SURVEYOR BELOW SIGNATURE LINE]
Registration No. ______________________________
Date: _______________________
[SEAL]
2
EXHIBIT 5.1(IV)
EXISTING LOAN BALANCES
Loan Balance $ 9,772,861.03
Tax Reserve $ 58,724.72
Insurance Reserve $ 8,115.45
EXHIBIT 11.1(b)
FORM OF DEED
SPECIAL WARRANTY DEED
THE GRANTOR, STONEWATER DOX FUNDING LLC., a Delaware limited liability
company, for and in consideration of TEN DOLLARS ($10,00), and other good and
valuable consideration in hand paid, GRANTS, BARGAINS and SELLS to the GRANTEE,
____________________________________, a _______________________ the following
described real estate situated in the County of Champaign, in the State of
Illinois:
See Exhibit A, attached hereto and incorporated herein by reference.
Subject to the items listed on Exhibit B attached hereto and incorporated
herein by reference.
The property described herein and conveyed hereby is not homestead
property pursuant to the laws of the State of Illinois.
To have and to hold, the above granted premises unto the said Grantee
forever.
And Grantor hereby covenants, promises and agrees to and invites Grantee,
and its successors and assigns, that (a) Grantor has not done or suffered to be
done anything whereby the property herein granted is, or may be, in any manner
encumbered to changed, except as herein recited, and (b) Grantor will warrant
and forever defend the described property against all persons lawfully claiming,
or to claim the same of acts done to encumber the property by, through and under
the Grantor.
WITNESS: GRANTOR:
STONEWATER DOX FUNDING LLC, a Delaware
limited liability company
By: _____________________ By: _____________________________________
Name: _____________________ Name: _____________________________________
Title: _____________________ Title: Authorized Signatory
STATE OF _____________ )
) ss.:
COUNTY OF ___________ )
On the _____ day of ________________, 2005 before me, the undersigned,
personally appeared ______________________, personally known to me or proved to
me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he/she executed
the same in his/her capacity, and that by his/her signature on the instrument,
the individual, or the person upon behalf of which the individual acted,
executed the instrument.
_________________________
Notary Public
2
EXHIBIT A
Legal Description
The land referred to in this policy is described as follows:
TRACT 1:
Xxx 0 xx Xxxxx Xxxx xx Xxx 0 xx Xxx 0 Development Subdivision, as per Plat
recorded as Document 98R 28668, situated in Champaign County, Illinois.
TRACT 2:
Xxxx 0 xxx 0 xx Xxxxx Xxxx of Xxxx 0, 0 xxx 0 xx Xxx 3 Development Subdivision,
a subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.
TRACT 3:
Xxx 0 xx Xxxxx Xxxx xx Xxxx 0, 0 and 7 of Par 3 Development Subdivision, a
subdivision in the City of Champaign, Champaign County, Illinois, as per plat
recorded July 10, 1996 in Plat Book "CC" at page 185 as Document 96R 17100.
TRACT 4:
Xxx 0 xx Xxxxx Xxxx xx Xxx 0 Xxx 0 Development Subdivision recorded as Document
98R 14068, situated in Champaign County, Illinois.
3
EXHIBIT B
Permitted Exceptions
1. The state of facts shown on survey dated October 31, 2003, as last revised
November 14, 2003, made by HDC Engineering, Project #03344.
2. Taxes for the year 2005, which are a lien although not yet due & payable.
City of Champaign Township, 45-20-24-326-020, Tax Code 60. (Tract 1).
City of Champaign Township, 45-20-24-326-011, Tax Code 2. (part of Tract 2).
City of Champaign Township, 45-20-24-326-012, Tax Code 2. (part of Tract 2).
City of Champaign Township, 45-20-24-326-013, Tax Code 2. (Tract 3).
City of Champaign Township, 45-20-24-326-016, Tax Code 60. (Tract 4).
3. The land lies within the boundaries of Xxxxxxx Branch Mutual Drainage
District. (Tracts 1-4).
4. Easement in favor of Illinois Power Company, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded December 23, 1992 in book 1876 at page 506 as document no. 92R
36921, affecting the North 10 feet of Lot 7 and other land. (Tract 3).
5. Easement in favor of the City of Champaign, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded July 10, 1996 in book 2424 at page 500 as document no. 96R 17099.
(Tract 1).
6. Covenants, restrictions, easements and building setback lines contained in
the Owner's Certificate attached to and as shown on the Final Plat of Xxxx
0, 0 xxx 0 xx Xxx 3 Development Subdivision recorded July 10, 1996 in book
"CC" at page 185 as document no. 96R 17100, as amended by First Addendum
dated November 1, 2003 and recorded November 25, 2003 as document 2003 R
52074 which does not contain a reversionary or forfeiture clause. (Tracts
2 and 3).
7. Terms and provisions of an Annexation Agreement as disclosed by instrument
recorded July 23, 1996 in book 2428 at page 782 as document no. 96R 18251.
(Tracts 1-4).
Amendment No. 1 recorded February 14, 1997 as document no. 97R 3279.
Amendment No. 2 recorded January 14, 1998 as document no. 98R 1024.
Amendment No. 3 recorded June 15, 2000 as document no. 2000R 12962.
8. Easement in favor of Illinois Power Company, and its successors and
assigns, and the provisions relating thereto contained in the grant
recorded September 3, 1996 in book
4
2443 at page 169 as document no. 96R 22014, affecting a strip of land 10
feet in width over Lot 5. (Tract 2, Lot 5).
9. Covenants, restrictions, easements and building setback lines contained in
the Owner's Certificate attached to and as shown on the Final Plat of Xxx
0 xx Xxx 0 Xxxxxxxxxxx Xxxxxxxxxxx recorded May 18, 1998 as document no.
98R 14068, as amended by First Addendum dated November 1, 2003 and
recorded on November 25, 2003 as document 2003 R 52075, which does not
contain a reversionary or forfeiture clause. (Tract 4).
10. The right of tenants, as tenants only with no right or option to purchase
or right of first refusal.
11. Mortgage, Absolute Assignment of Rents and Leases and Security Agreement
(and Fixture Filing) dated November 21, 2003 and recorded November 25,
2003 as document 2003 R 52081 made by Stonewater DOX Funding LLC to Xxxxx
Fargo Bank, National Association, to secure a note for $10,000,000.
12. UCC-1 Financing Statement filed by Xxxxx Fargo Bank N.A., as secured
party, against Stonewater Dox Funding L.L.C., as debtor on December 30,
2003 under filing number 200312305627857.
5
EXHIBIT 11.1(C)
FIRPTA CERTIFICATE
Section 1445 of the Internal Revenue Code of 1986, as amended (the
"CODE"), provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person or entity. To inform the
transferee that withholding of tax is not required upon the disposition of a
U.S. real property interest by ____________________, _________ (the "COMPANY"),
the undersigned hereby certifies the following on behalf of the Company:
1. The Company is not a foreign person, foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the
Code and the Income Tax Regulations promulgated thereunder);
2. Transferor is not a disregarded entity as defined in
Sections 1.1445-2(b)(2)(iii);
3. The Company's U.S. Employer identification number is ___________; and
4. The Company's office address is:
___________________________
___________________________
___________________________
The undersigned, as ______________ of the Company, understands that this
certification may be disclosed to the Internal Revenue Service by the transferee
and that any false statement contained herein could be punished by fine,
imprisonment or both.
Under penalties of perjury, the undersigned, as _____________ of the
Company, declares that the undersigned has examined this certification and that,
to the best of the undersigned's knowledge and belief, it is true, correct and
complete, and the undersigned further declares that the undersigned has
authority to sign this document on behalf of the Company.
______________________________________________,
a
By: _______________________________________
Name: _______________________________________
Title: _______________________________________
EXHIBIT 11.1(f)
Form of Assignment and Assumption Agreement
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "ASSIGNMENT") is made as of
the ___ day of ______________, 200_ by STONEWATER DOX FUNDING LLC, a Delaware
limited liability company, having an address at c/o Drawbridge Special
Opportunities Fund, LLC, 0000 Xxxxxx xx xxx Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000
("ASSIGNOR"), in consideration of Ten ($10.00) Dollars and for other good and
valuable consideration paid by __________________, a __________________________,
having an office at ___________________________________________________
("ASSIGNEE").
Assignor hereby assigns to Assignee all of Assignor's right, title and
interest in and to the following documents (collectively, the "LEASE"):
Lease dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated January 29, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated September 19, 1996, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain First Addendum to Lease, dated
February 25, 1999, and as further amended by that certain Addendum Number Two to
Lease, dated December 22, 2000.
Lease, dated February 25, 1999, between Stonewater Dox Funding LLC
(successor-in-interest to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain Addendum Number One to Lease,
dated December 22, 2000.
Lease, dated December 22, 2000, between Stonewater Dox Funding LLC
(successor-in-interest) to Xxx 0 Xxxxxxxxxxx, X.X.X.) and Amdocs Champaign, Inc.
(f/k/a ITDS Intelicom Services, Inc.) for property located at 0000 Xxx Xxxxx,
Xxxxxxxxx, Xxxxxxxx, as amended by that certain Addendum No. 1 to Lease, dated
September 18, 2001, as further amended by that certain Amendment to Lease, dated
September 14, 2004, and as further amended by that certain Addendum No. 2 to
Lease, dated February 25, 2005.
TO HAVE AND TO HOLD, unto Assignee and its successors and/or assigns. This
assignment is made without any recourse and without representation or warranty
of any kind, express or implied.
And Assignee hereby assumes all of the obligations of Assignor under the
Lease and assumes due performance of all of the terms and provisions of the
Lease on Assignor's part to be performed and observed thereunder.
This Assignment may be signed in multiple counterparts which, when
taken together and signed by all parties and delivered to any other party
hereto, shall constitute a binding instrument between the parties.
This instrument shall be governed by and construed in accordance
with the laws of the State of Illinois.
IN WITNESS WHEREOF, Assignor and Assignee have duly executed this
agreement as of the date above written.
WITNESS: ASSIGNOR:
STONEWATER DOX FUNDING LLC, a Delaware
limited liability company
By: __________________ By: _______________________________________
Name: __________________ Name: _______________________________________
Title: __________________ Title: Authorized Signatory
ASSIGNEE:
By: __________________ By: _______________________________________
Name: __________________ Name: _______________________________________
Title: __________________ Title: Authorized Signatory
2
AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of December
22, 2005, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (the "Agreement"). Seller and Purchaser desire to amend the
Agreement upon and subject to the terms and conditions of this Amendment.
Therefore, in consideration of the premises and of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser, intending to
be legally bound, agree to amend the Agreement as follows:
THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON DECEMBER 30, 2005 ("STUDY PERIOD EXPIRATION DATE)." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
BY: GLADSTONE COMMERCIAL PARTNERS, LLC
BY: GLADSTONE COMMERCIAL CORPORATION
BY: _______________________
NAME: XXXXXX X. XXXXX
TITLE: PRINCIPAL AND MANAGING DIRECTOR
Stonewater UIS Funding LLC
By: _____________________________________
Name: _____________________________________
Title: Authorized Signatory
3
AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of December
30, 2005, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005, as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005 (as so modified, the "Agreement").
Seller and Purchaser desire to further amend the Agreement upon and subject to
the terms and conditions of this Amendment. Therefore, in consideration of the
premises and of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Seller and Purchaser, intending to be legally bound, agree to
amend the Agreement as follows:
THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 6, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
BY: GLADSTONE COMMERCIAL PARTNERS, LLC
BY: GLADSTONE COMMERCIAL CORPORATION
BY: _______________________
NAME: XXXXXX X. XXXXX
TITLE: PRINCIPAL AND MANAGING DIRECTOR
Stonewater UIS Funding LLC
By: _____________________________________
Name: _____________________________________
Title: Authorized Signatory
4
AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January 6,
2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005 and that certain Amendment to
Purchase Agreement dated December 30, 2005, the "Agreement"). Seller and
Purchaser desire to further amend the Agreement upon and subject to the terms
and conditions of this Amendment. Therefore, in consideration of the premises
and of the mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Seller and Purchaser, intending to be legally bound, agree to amend the
Agreement as follows:
THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 5:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 13, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
ARTICLE XIX NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN SECTION 3.1 OF
THE AGREEMENT, PURCHASER HEREBY WAIVES ANY RIGHT TO TERMINATE THE AGREEMENT
BASED ON THE INFORMATION DISCLOSED BY (I) THE STRUCTURAL/ENGINEERING/PROPERTY
CONDITION REPORT, ENVIRONMENTAL REPORT, APPRAISAL REPORT, TITLE
REPORT/COMMITMENT AND SURVEY RECEIVED WITH RESPECT TO THE PROPERTY (AS SUCH TERM
IS DEFINED IN THE AGREEMENT); AND (II) CREDIT UNDERWRITING OF XXXXXX
XXXXXXXXXXX. PURCHASER HEREBY ACCEPTS THE LEASE MORE PARTICULARLY DESCRIBED IN
EXHIBIT A.
EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.
5
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
BY: GLADSTONE COMMERCIAL PARTNERS, LLC
BY: ___________________________
NAME: ___________________________ BY: GLADSTONE COMMERCIAL CORPORATION
TITLE: AUTHORIZED SIGNATORY
BY: _______________________
NAME: XXXXXX X. XXXXX
TITLE: PRINCIPAL/MANAGING DIRECTOR
EXHIBIT A
[Description of Lease]
Lease - Building 3 dated August 14, 1998 and effective as of June 1, 1998
between Stonewater UIS Funding, LLC (as successor to Meritex Enterprises, Inc.,
the successor-in-interest to Space Center Enterprises, Inc.) and Xxxxxx
Xxxxxxxxxxx, as amended by (i) that certain First Amendment to Lease effective
as of November 30, 1999, (ii) that certain Second Amendment to Lease effective
as of Xxxxx 00, 0000, (xxx) that certain Third Amendment to Lease effective as
of May 7, 2004, and (iv) that certain Fourth Amendment to Lease effective as of
August 10, 2004
6
AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
13, 2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005, that certain Amendment to Purchase
Agreement dated December 30, 2005 and that certain Amendment to Purchase
Agreement dated January 6, 2006, the "Agreement"). Seller and Purchaser desire
to further amend the Agreement upon and subject to the terms and conditions of
this Amendment. Therefore, in consideration of the premises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Seller and Purchaser,
intending to be legally bound, agree to amend the Agreement as follows:
THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 7:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 17, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
BY: GLADSTONE COMMERCIAL PARTNERS, LLC
BY: ___________________________
NAME: ___________________________ BY: GLADSTONE COMMERCIAL CORPORATION
TITLE: AUTHORIZED SIGNATORY
BY: _______________________
NAME: XXXXXX X. XXXXX
TITLE: PRINCIPAL/MANAGING DIRECTOR
7
AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
17, 2006, and is by and between Stonewater UIS Funding LLC, a Delaware limited
liability company ("Seller") and Gladstone Commercial Limited Partnership, a
Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement dated
November 23, 2005 (as the same has been modified by that certain Amendment to
Purchase Agreement dated December 22, 2005, that certain Amendment to Purchase
Agreement dated December 30, 2005, that certain Amendment to Purchase Agreement
dated January 6, 2006 and that certain Amendment to Purchase Agreement dated
January 13, 2006, the "Agreement"). Seller and Purchaser desire to further amend
the Agreement upon and subject to the terms and conditions of this Amendment.
Therefore, in consideration of the premises and of the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Seller and Purchaser, intending to
be legally bound, agree to amend the Agreement as follows:
THE FIRST SENTENCE OF SECTION 3.1 IS HEREBY DELETED AND THE FOLLOWING IS
INSERTED IN LIEU THEREOF: "THE TERM "Study Period" SHALL MEAN THE PERIOD
COMMENCING ON THE EFFECTIVE DATE AND ENDING AT 7:00 P.M. (EASTERN STANDARD TIME)
ON JANUARY 20, 2006 ("STUDY PERIOD EXPIRATION DATE")." NOTWITHSTANDING ANYTHING
CONTAINED IN THE AGREEMENT TO THE CONTRARY, PURCHASER SHALL NOT HAVE ANY RIGHT
TO EXTEND THE STUDY PERIOD EXPIRATION DATE.
EXCEPT AS EXPRESSLY MODIFIED BY THIS AMENDMENT, THE AGREEMENT SHALL BE AND
REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT, AND AS MODIFIED BY THIS
AMENDMENT, THE AGREEMENT IS HEREBY RATIFIED AND CONFIRMED BY SELLER AND
PURCHASER. THIS AMENDMENT MAY BE ENTERED INTO IN COUNTERPARTS, AND ALL SUCH
COUNTERPARTS WHEN TAKEN TOGETHER SHALL CONSTITUTE A SINGLE INSTRUMENT.
GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
Stonewater UIS Funding LLC
BY: GLADSTONE COMMERCIAL PARTNERS, LLC
BY: ______________________
NAME: ______________________ BY: GLADSTONE COMMERCIAL CORPORATION
TITLE: AUTHORIZED SIGNATORY
BY: _______________________
NAME: XXXXXXXXXXX XXXXXX
TITLE: PRINCIPAL/MANAGING DIRECTOR
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AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as of January
20, 2006 by and between Stonewater UIS Funding LLC, a Delaware limited liability
company ("Seller") and Gladstone Commercial Limited Partnership, a Delaware
limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement
dated November 23, 2005 (as the same has been modified by that certain Amendment
to Purchase Agreement dated December 22, 2005, that certain Amendment to
Purchase Agreement dated December 30, 2005, that certain Amendment to Purchase
Agreement dated January 6, 2006, that certain Amendment to Purchase Agreement
dated January 13, 2006 and that certain Amendment to Purchase Agreement dated
January 17, 2006 (collectively the "Agreement"). Seller and Purchaser desire to
further amend the Agreement upon and subject to the terms and conditions of this
Amendment. All capitalized terms used herein and not otherwise defined herein
shall have the meaning ascribed thereto in the Agreement.
Now, therefore, in consideration of the premises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficient of which is hereby acknowledged, Seller and Purchaser
intending to be legally bound, agree to further amend the Agreement as follows:
1. Purchaser hereby acknowledges and agrees that the Study Period
has expired and that Purchaser has no further right to terminate the Agreement
pursuant to Section 3.1 thereof.
2. The following is hereby added to Article II of the Agreement:
Section 2.4 Amendment to Lease. Notwithstanding anything
contained herein to the contrary, unless on or prior to the Closing Date
the Seller, as landlord, and the Tenant, shall have executed and delivered
an amendment to the Lease which has been approved by the Existing Lender
and (i) modifies section 12.5 of the Lease to provide that the Landlord
shall provide all of the insurance (including, without limitation the
specified coverage limits and specified deductibles) required by Section 5
of the Existing Mortgage, (ii) provides that Tenant shall reimburse
Landlord, as additional rent, for all of the insurance premiums payable by
Landlord from time to time to obtain such insurance, (iii) modifies
section 10.1 of the Lease to reinstate in its entirety the provisions of
section 10.1 of the original lease dated August 14, 1998 (effective as of
June 1, 1998) between Space Center Enterprises, Inc., as Landlord, and
Tenant, with respect to the Property (without giving any further effect to
Section 2 and Section 3 of the Forth Amendment to Lease dated as of August
10, 2004 between Seller, as landlord, and Tenant), (iv) reduces the annual
minimum rent by $10,000, and (v) otherwise is in a form reasonably
satisfactory to Purchaser, then at the Closing the Purchase Price shall be
reduced by two hundred thirty-five thousand ($235,000) dollars (and
accordingly, the Cash Balance payable by the Company shall be reduced by
$235,000).
3. Subsection 9.1(e) of the Agreement is hereby deleted and the
following is hereby substituted in lieu thereof:
(e) Tenant Estoppel Certificate. The Company shall have
received an executed estoppel certificate from the Tenant in substantially the
form annexed hereto as Exhibit 9.1(e), with no material changes.
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4. Except as expressly modified by this Amendment, the Agreement
shall be and remain unchanged and in full force and effect, and as modified by
this Amendment, the Agreement is hereby ratified and confirmed by Seller and
Purchaser. This Amendment may be entered into in counterparts, and all such
counterparts when taken together shall constitute a single instrument.
IN WITNESS WHEREOF, the parties hereto have executed and
delivered this Amendment as of the day and year first above written.
SELLER: STONEWATER UIS FUNDING LLC
By: ___________________________
Name:
Title
PURCHASER: GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
By: Gladstone Commercial Partners, LLC
By: Gladstone Commercial Corporation
By: _________________________
Xxxxxxxxxxx Xxxxxx
Principal/Managing Director
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AMENDMENT TO PURCHASE AGREEMENT
THIS AMENDMENT TO PURCHASE AGREEMENT (this "Amendment") is made as
of February ___, 2006 by and between Stonewater UIS Funding LLC, a Delaware
limited liability company ("Seller") and Gladstone Commercial Limited
Partnership, a Delaware limited partnership ("Purchaser").
RECITAL
Seller and Purchaser are parties to that certain Purchase Agreement
dated November 23, 2005, as the same has been modified by that certain Amendment
to Purchase Agreement dated December 22, 2005, that certain Amendment to
Purchase Agreement dated December 30, 2005, that certain Amendment to Purchase
Agreement dated January 6, 2006, that certain Amendment to Purchase Agreement
dated January 13, 2006, that certain Amendment to Purchase Agreement dated
January 17, 2006 and that certain Amendment to Purchase Agreement dated January
20, 2006 (collectively the "Agreement"). Capitalized terms used herein and not
defined shall have the meanings ascribed to them in the Agreement.
AGREEMENT
Now, therefore, in consideration of the promises and of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Seller and Purchaser
agree that the Closing Date, as set forth in Section 10.1 of the Agreement,
shall be February 17, 2006. Nothing contained herein shall be deemed to modify
or limit the rights of Seller or Purchaser to extend the Closing Date pursuant
to the express terms of the Agreement.
This Amendment may be executed in any number of counterparts, each
of which shall constitute an original but all of which, taken together, shall
constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have executed and delivered
this Amendment as of the day and year first above written.
SELLER: STONEWATER UIS FUNDING LLC
By: ___________________________
Name:
Title
PURCHASER: GLADSTONE COMMERCIAL LIMITED PARTNERSHIP
By: Gladstone Commercial Partners, LLC
By: Gladstone Commercial Corporation
By: _________________________
Xxxxxx X. Xxxxx
Principal/Managing Director
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