Exhibit 10.4 - Agreement of Purchase & Sale (Entity Transfer Properties)
AGREEMENT OF PURCHASE AND SALE
among
▇▇▇▇▇▇▇▇ PROPERTIES ACQUISITION PARTNERS, L.P.,
a Delaware limited partnership
("▇▇▇▇▇▇▇▇"),
▇▇▇▇▇▇▇▇ PROPERTIES LIMITED, INC.,
a Delaware corporation
("PPL")
and
BRANDYWINE OPERATING PARTNERSHIP, L.P.,
a Delaware limited partnership
("Brandywine OP")
TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS............................................................................................2
1.1 Definitions..............................................................................................2
ARTICLE II. PURCHASE AND SALE; DEPOSIT; PAYMENT OF PURCHASE PRICE; STUDY PERIOD; ASSIGNMENTS SUBJECT TO EXISTING
NOTES AND LIENS...................................................................................................9
2.1 Purchase and Sale........................................................................................9
2.2 Payment of Purchase Price; Assignments Subject to Existing Notes and Liens...............................9
2.3 Deposit.................................................................................................10
2.4 Study Period............................................................................................10
ARTICLE III. ▇▇▇▇▇▇▇▇' REPRESENTATIONS AND WARRANTIES............................................................15
3.1 Organization and Power..................................................................................15
3.2 Authorization, Execution and Disclosure.................................................................16
3.3 Non-contravention.......................................................................................16
3.4 No Special Taxes........................................................................................16
3.5 Compliance with Existing Laws and Restrictive Covenants.................................................16
3.6 Personal Property.......................................................................................16
3.7 Operating Agreements....................................................................................17
3.8 Condemnation Proceedings; Roadways......................................................................17
3.9 Actions or Proceedings..................................................................................17
3.10 Bankruptcy...........................................................................................17
3.11 Hazardous Substances.................................................................................17
3.12 Parties in Possession................................................................................18
3.13 Leases...............................................................................................18
3.14 Leased Property......................................................................................19
3.15 No Unpaid Charges; Financial Statements..............................................................19
3.16 Condition of Improvements............................................................................19
3.17 Access...............................................................................................19
3.18 No Commitments.......................................................................................19
3.19 None of the Partnerships nor ▇▇▇▇▇▇▇▇ Is a "Foreign Person"..........................................19
3.20 Leasing Commissions..................................................................................20
3.21 Other Agreements.....................................................................................20
3.22 Existing Secured Indebtedness........................................................................20
3.23 Employment on "At-Will" Basis........................................................................20
3.24 Additional Representations and Warranties with Respect to the Partnerships...........................20
3.25 Representations and Warranties of PPL................................................................21
3.26 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES........................................................22
ARTICLE IV. BRANDYWINE OP'S REPRESENTATIONS AND WARRANTIES.......................................................24
4.1 Organization and Power..................................................................................24
4.2 Non-contravention.......................................................................................24
4.3 Litigation..............................................................................................24
4.4 Bankruptcy..............................................................................................24
4.5 Authorization, Execution and Disclosure.................................................................24
i
ARTICLE V. CONDITIONS PRECEDENT..................................................................................25
5.1 As to Brandywine OP's Obligations.......................................................................25
5.2 As to ▇▇▇▇▇▇▇▇' Obligations.............................................................................26
ARTICLE VI. COVENANTS OF ▇▇▇▇▇▇▇▇................................................................................27
6.1 Operating Agreements....................................................................................27
6.2 Warranties and Guaranties...............................................................................27
6.3 Insurance...............................................................................................27
6.4 Operation of Property Prior to Closing..................................................................27
6.5 No Marketing............................................................................................29
6.6 Put/Call Agreement......................................................................................29
6.7 Tax Returns.............................................................................................30
6.8 Ground Lessor Estoppels.................................................................................30
6.9 Leased Property.........................................................................................30
ARTICLE VII. CLOSING.............................................................................................30
7.1 Closing.................................................................................................30
7.2 ▇▇▇▇▇▇▇▇' Deliveries....................................................................................31
7.3 Brandywine OP's Deliveries..............................................................................33
7.4 Mutual Deliveries.......................................................................................34
7.5 Closing Costs...........................................................................................34
7.6 Revenue and Expense Allocations.........................................................................34
7.7 Delinquent Rents........................................................................................36
7.8 Costs Associated with Certain Leasing Activities........................................................36
ARTICLE VIII. GENERAL PROVISIONS.................................................................................37
8.1 Condemnation............................................................................................37
8.2 Risk of Loss............................................................................................37
8.3 Broker..................................................................................................37
ARTICLE IX. LIABILITY OF BRANDYWINE OP; INDEMNIFICATION BY ▇▇▇▇▇▇▇▇; DEFAULT; TERMINATION RIGHTS.................38
9.1 Liability of Brandywine OP..............................................................................38
9.2 Indemnification by ▇▇▇▇▇▇▇▇.............................................................................38
9.3 Default by ▇▇▇▇▇▇▇▇/Failure of Conditions Precedent.....................................................39
9.4 Indemnification by Brandywine OP........................................................................40
9.5 Default by Brandywine OP/Failure of Conditions Precedent................................................40
9.6 Costs and Attorneys' Fees...............................................................................40
9.7 Limitation of Liability.................................................................................40
ARTICLE X. MISCELLANEOUS PROVISIONS..............................................................................41
10.1 Completeness; Modification...........................................................................41
10.2 Assignments..........................................................................................41
10.3 Successors and Assigns...............................................................................41
10.4 Days.................................................................................................41
10.5 Governing Law........................................................................................41
10.6 Counterparts.........................................................................................41
10.7 Severability.........................................................................................41
10.8 Notices..............................................................................................42
10.9 Escrow Agent.........................................................................................42
10.10 Incorporation by Reference...........................................................................43
10.11 Survival.............................................................................................43
10.12 Further Assurances...................................................................................43
10.13 No Partnership.......................................................................................43
10.14 Time of Essence......................................................................................43
10.15 Signatory Exculpation................................................................................43
10.16 Rules of Construction................................................................................44
10.17 SEC Reporting (8-K) Requirements.....................................................................44
ii
EXHIBITS
--------
Exhibit A - Land
Exhibit B - Description of Ground Leases
Exhibit C - Tenant's Estoppel Certificate
Exhibit D - Excluded Tangible Personal Property
Exhibit E - Existing Notes and Existing Liens
Exhibit F - Form of Lender Estoppel Certificate
Exhibit G - Form of Amended and Restated Partnership
Exhibit H - Capital Accounts of ▇▇▇▇▇▇▇▇ in the Partnerships
SCHEDULES
Schedule 3.7 Operating Agreements
Schedule 3.13 Rent Roll and Accounts Receivable Report
Schedule 3.20 Outstanding Leasing Commissions
Schedule 6.4(g) Approved New Leases
Schedule 6.6 Allocation of Aggregate Price among Retained Interests
iii
AGREEMENT OF PURCHASE AND SALE
THIS AGREEMENT OF PURCHASE AND SALE (this "Agreement") is made as of
this 14th day of March, 2001, among ▇▇▇▇▇▇▇▇ PROPERTIES ACQUISITION PARTNERS,
L.P., a Delaware limited partnership ("▇▇▇▇▇▇▇▇"), ▇▇▇▇▇▇▇▇ PROPERTIES LIMITED,
INC., a Delaware corporation ("PPL") and BRANDYWINE OPERATING PARTNERSHIP, L.P.,
a Delaware limited partnership ("Brandywine OP").
R E C I T A T I O N S:
A. ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Associates, L.P. ("111 Arrandale") is the
owner of a fee estate located in the Commonwealth of Pennsylvania that is
identified as the 111 Arrandale Land on Exhibit A attached hereto (the "111
Arrandale Land"), ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ Associates, L.P. ("440 Creamery Way") is the
owner of a fee estate located in the Commonwealth of Pennsylvania that is
identified as the ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ on Exhibit A attached hereto (the "440
Creamery Way Land"), ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ Associates, L.P. ("442 Creamery Way") is
the owner of a fee estate located in the Commonwealth of Pennsylvania that is
identified as the ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ on Exhibit A attached hereto (the "442
Creamery Way Land"), 481 ▇▇▇▇ ▇▇▇▇▇ Way Associates, L.P. ("481 ▇▇▇▇ ▇▇▇▇▇") is
the owner of a fee estate located in the Commonwealth of Pennsylvania that is
identified as the 481 ▇▇▇▇ ▇▇▇▇▇ Land on Exhibit A attached hereto (the "481
▇▇▇▇ ▇▇▇▇▇ Land"), and ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Associates, L.P. ("100
Arrandale") is the owner of a fee estate located in the Commonwealth of
Pennsylvania that is identified as the 100 Arrandale Land on Exhibit A attached
hereto (the "100 Arrandale Land").
B. Southpoint Land Holdings, Inc. ("Southpoint Inc.") is the ground
lessor under the ground leases identified on Exhibit B attached hereto as the
Southpoint Ground Leases, and Valleybrooke Land Holdings, Inc. ("Valleybrooke
Inc.") is the ground lessor under the ground leases identified on Exhibit B
attached hereto as the Valleybrooke Ground Leases.
▇. ▇▇▇▇▇▇▇▇ owns an eighty-eight percent (88%) limited partnership
interest and a one percent (1%) general partnership interest in each of 111
Arrandale, 100 Arrandale, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇, 442 Creamery Way, and 481 ▇▇▇▇ ▇▇▇▇▇
(which interests are referred to in the Partnership Agreements (as hereinafter
defined) as the "Capital Percentage Interests"). In addition, ▇▇▇▇▇▇▇▇ owns a
ninety-nine percent (99%) "Profit Percentage Interest" in each of 111 Arrandale,
100 Arrandale, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ and 481 ▇▇▇▇ ▇▇▇▇▇.
D. PPL owns 89 of the 100 outstanding shares of common stock in each of
Southpoint Inc. and Valleybrooke Inc., and PPL has the right to require that the
holders of the remaining 11 shares of outstanding common stock in each of
Southpoint Inc. and Valleybrooke Inc. sell such shares to PPL upon demand
pursuant to a Put and Call Option Agreement for Remaining Shares dated as of
October 22, 1997 (the "Option Agreement") among PPL, ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇, ▇▇.,
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ (▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ and ▇▇▇▇▇ are
collectively called the "Shareholders").
E. Brandywine OP (or its designee) is desirous of acquiring (i) from
▇▇▇▇▇▇▇▇ certain of ▇▇▇▇▇▇▇▇' partnership interests in 111 Arrandale, 100
Arrandale, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ and 481 ▇▇▇▇ ▇▇▇▇▇, and (ii) from
PPL 78 shares of common stock in each of Southpoint Inc. and Valleybrooke Inc.,
and ▇▇▇▇▇▇▇▇ and PPL are desirous of transferring such partnership interests and
common stock to Brandywine OP (or its designee), for the Purchase Price and upon
the terms and conditions hereinafter set forth.
1
NOW, THEREFORE, in consideration of the foregoing premises and in
consideration of the mutual covenants, promises and undertakings of the parties
hereinafter set forth, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by the parties, it is
agreed:
ARTICLE I.
DEFINITIONS
1.1 Definitions. The following terms shall have the indicated meanings:
"Act of Bankruptcy" shall mean if a party hereto or any general
partner thereof shall (a) apply for or consent to the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of itself
or of all or a substantial part of its property, (b) admit in writing its
inability to pay its debts as they become due, (c) make a general assignment for
the benefit of its creditors, (d) file a voluntary petition or commence a
voluntary case or proceeding under the Federal Bankruptcy Code (as now or
hereafter in effect), (e) be adjudicated a bankrupt or insolvent, (f) file a
petition seeking to take advantage of any other law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts,
(g) fail to controvert in a timely and appropriate manner, or acquiesce in
writing to, any petition filed against it in an involuntary case or proceeding
under the Federal Bankruptcy Code (as now or hereafter in effect), or (h) take
any corporate or partnership action for the purpose of effecting any of the
foregoing; or if a proceeding or case shall be commenced, without the
application or consent of a party hereto or any general partner thereof, in any
court of competent jurisdiction seeking (1) the liquidation, reorganization,
dissolution or winding-up, or the composition or readjustment of debts, of such
party or general partner, (2) the appointment of a receiver, custodian, trustee
or liquidator for such party or general partner or all or any substantial part
of its assets, or (3) other similar relief under any law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts,
and such proceeding or case shall continue undismissed for a period of ninety
(90) consecutive days; or an order (including an order for relief entered in an
involuntary case under the Federal Bankruptcy Code, as now or hereafter in
effect) judgment or decree approving or ordering any of the foregoing shall be
entered and continue unstayed and in effect, for a period of ninety (90)
consecutive days.
"Additional Retained Interests" shall mean the entire right, title
and interest of each of ▇▇▇▇▇▇ and ▇▇▇▇▇▇ in each of the Partnerships (which
interest, in aggregate, is comprised of an eleven percent [11%] Capital
Percentage Interest and a one percent [1%] Profit Percentage Interest in each of
the Partnerships).
"Amended and Restated Partnership Agreements" shall mean the
amended and restated limited partnership agreements of each of the Partnerships
that shall be executed by ▇▇▇▇▇▇▇▇ and Brandywine OP upon the assignment by
▇▇▇▇▇▇ and ▇▇▇▇▇▇ to Brandywine OP of their respective 5.5% limited partnership
interests in each of the Partnerships, which Amended and Restated Partnership
Agreements shall be generally in the form of Exhibit G hereto.
2
"Applicable Laws" shall mean any applicable building, zoning,
subdivision, environmental, health, safety or other governmental laws, statutes,
ordinances, resolutions, rules, codes, regulations, orders or determinations of
any Governmental Authority or of any insurance boards of underwriters (or other
body exercising similar functions), or any restrictive covenants or deed
restrictions affecting the Property or the ownership, operation, use,
maintenance or condition thereof.
"Assigned Partnership Interests" shall mean (a) a seventy-eight
percent (78%) Capital Percentage Interest (comprised of the entire one percent
(1%) Capital Percentage Interest owned by ▇▇▇▇▇▇▇▇ as a general partner and a
seventy-seven percent (77%) Capital Percentage Interest owned by ▇▇▇▇▇▇▇▇ as a
limited partner) and (b) a ninety-eight percent (98%) Profit Percentage Interest
(comprised of the entire one percent (1%) Profit Percentage Interest owned by
▇▇▇▇▇▇▇▇ as a general partner and a ninety-seven percent (97%) Profit Percentage
Interest owned by ▇▇▇▇▇▇▇▇ as a limited partner), in each of the Partnerships.
"Assignment and Assumption Agreement" shall mean one or more
agreements whereby, subject to the allocation provisions in Section 7.8 hereof,
(a) ▇▇▇▇▇▇▇▇ (1) assigns all of ▇▇▇▇▇▇▇▇' right, title and interest in and to
the Intangible Personal Property, to the extent assignable, and (2) indemnifies,
defends and holds Brandywine OP, the Partnerships and their respective agents,
employees, officers, partners, directors, shareholders and contractors harmless
with respect to all defaults, liabilities, claims, costs and expenses
(including, without limitation, reasonable attorneys' fees) relating to acts or
omissions accruing under the Assumed Operating Agreements before the Closing
Date; and (b) Brandywine OP indemnifies, defends and holds ▇▇▇▇▇▇▇▇ harmless
with respect to all defaults, liabilities, claims, costs and expenses
(including, without limitation, reasonable attorneys' fees) relating to acts or
omissions accruing under the Assumed Operating Agreements after the Closing
Date.
"Assignment of Leases" shall mean the agreement whereby, subject to
the allocation provisions in Section 7.8 hereof, (a) ▇▇▇▇▇▇▇▇ indemnifies,
defends and holds Brandywine OP, the Partnerships and their respective agents,
employees, officers, partners, directors, shareholders and contractors harmless
with respect to all defaults, liabilities, claims, costs and expenses
(including, without limitation, reasonable attorneys' fees) relating to acts or
omissions accruing under such Leases before the Closing Date; and (b) Brandywine
OP indemnifies, defends and holds ▇▇▇▇▇▇▇▇ harmless with respect to all
defaults, liabilities, claims, costs and expenses (including, without
limitation, reasonable attorneys' fees) relating to acts or omissions accruing
under such Leases after the Closing Date.
"Assignment of Partnership Interests" shall mean one or more
assignment and assumption agreements whereby (a) ▇▇▇▇▇▇▇▇ assigns to Brandywine
OP (or its designee), all of ▇▇▇▇▇▇▇▇' right, title and interest in and to the
Assigned Partnership Interests free of liens and encumbrances, (b) Brandywine OP
assumes all of ▇▇▇▇▇▇▇▇' right, title and interests in and to the Assigned
Partnership Interests and indemnifies, defends and holds ▇▇▇▇▇▇▇▇ and its
agents, employees, officers, directors and shareholders harmless with respect to
all defaults, liabilities, claims, costs and expenses (including, without
limitation, reasonable attorneys' fees) relating to acts or omissions relating
to the Assigned Partnership Interests or the Partnerships after the Closing
Date, and (c) ▇▇▇▇▇▇▇▇ indemnifies, defends and holds Brandywine OP and its
agents, employees, officers, partners, directors and shareholders harmless with
respect to all defaults, liabilities, claims, costs and expenses (including,
without limitation, reasonable attorneys' fees) relating to acts or omissions
relating to the Assigned Partnership Interests or the Partnerships accruing
before the Closing Date.
3
"Assumed Operating Agreements" shall mean the Operating Agreements
listed on Schedule 3.7 hereto which are not to be terminated pursuant to the
last sentence of Section 3.7 hereof..
"Authorizations" shall mean all licenses, permits and approvals
required by any governmental or quasi-governmental agency, body, department,
commission, board, bureau, instrumentality or officer, any owners association
created pursuant to deed restrictions affecting the Real Property or otherwise
appropriate with respect to the construction, ownership, operation, leasing,
maintenance, or use of the Property or any part thereof.
"Brandywine OP" shall mean Brandywine Operating Partnership, L.P.,
a Delaware limited partnership.
"Brandywine OP's Objections" shall mean the objections defined as
such in Section 2.4(d) hereof.
"Brandywine OP's Organizational Documents" shall mean the
organizational documents and all amendments thereto of Brandywine OP.
"Capital Percentage Interests" shall have the meaning ascribed to
such term in the applicable Partnership Agreements.
"Closing" shall mean the Closing of the purchase and sale of the
Assigned Partnership Interests and Purchased Stock pursuant to this Agreement
and shall be deemed to occur on the Closing Date.
"Closing Date" shall mean the date on which the Closing occurs.
"Closing Documents" shall mean the documents defined as such in
Section 7.1 hereof.
"Corporations" shall mean Southpoint Inc. and Valleybrooke Inc.
"Deposit" shall mean all amounts deposited from time to time with
Escrow Agent by Brandywine OP pursuant to Section 2.3 hereof, plus all interest
or other earnings that may accrue thereon. All cash Deposits shall be invested
by Escrow Agent in a commercial bank or banks acceptable to Brandywine OP at
money market rates, or in such other investments as shall be approved in writing
by ▇▇▇▇▇▇▇▇ and Brandywine OP. The Deposit shall be held and disbursed by Escrow
Agent in strict accordance with the terms and provisions of this Agreement.
4
"Environmental Damages" shall mean all third-party claims,
judgments, damages, losses, penalties, fines, liabilities (including, without
limitation, punitive damages and strict liability), encumbrances, liens, costs
and expenses of investigation and defense of any claim, whether or not such is
ultimately defeated, and of any settlement or judgment, of whatever kind or
nature, contingent or otherwise, matured or unmatured, including, without
limitation, attorneys' fees and disbursements and consultants' fees, any of
which arise as a result of the existence of Hazardous Materials upon, about or
beneath the Property or migrating or threatening to migrate from the Property,
or as a result of the existence of a violation of Environmental Requirements
pertaining to the Property.
"Environmental Requirements" shall mean (i) all applicable
statutes, regulations, rules, policies, ordinances, codes, licenses, permits,
orders, approvals, plans, authorizations, and similar items, of all Governmental
Authorities, and (ii) all judicial, administrative and regulatory decrees,
judgments and orders, in each case of (i) and (ii) relating to the protection of
human health or the environment from Hazardous Materials and health and safety
of employees or the public from Hazardous Materials, including, without
limitation, all requirements thereof pertaining to reporting, licensing,
permitting, investigation and remediation of emissions, discharges, releases or
threatened releases of Hazardous Materials into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of Hazardous Materials.
"Escrow Agent" shall mean Chicago Title Insurance Company, whose
address is ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇▇▇▇
▇▇▇▇▇▇.
"Existing Liens" shall mean the deed(s) of trust, mortgage(s),
assignments of leases, indemnities, loan agreements and other security
instruments securing, evidencing or executed in connection with the Existing
Notes described on Exhibit E hereto.
"Existing Notes" shall mean the promissory notes described on
Exhibit E hereto.
"FIRPTA Certificates" shall mean the affidavit of ▇▇▇▇▇▇▇▇ and PPL
under Section 1445 of the Internal Revenue Code, as amended, certifying that
neither ▇▇▇▇▇▇▇▇ nor PPL is a foreign corporation, foreign partnership, foreign
trust, foreign estate or foreign person (as those terms are defined in the
Internal Revenue Code and regulations promulgated thereunder), in form and
substance satisfactory to Brandywine OP.
"▇▇▇▇▇▇" shall mean ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, the holder of a 5.5% limited
partnership interest in each of the Partnerships.
"Governmental Authority" shall mean any federal, state, county,
municipal or other government or any governmental or quasi-governmental agency,
department, commission, board, bureau, officer or instrumentality, foreign or
domestic, or any of them.
"Ground Lease" shall mean each existing ground lease, and all
amendments thereto, under which ▇▇▇▇▇▇▇▇ leases the Leasehold Estate Land, as
identified on Exhibit A-2 hereto.
5
"Ground Lessor" shall mean each ground lessor under each Ground
Lease, which Ground Lessor shall mean and include each of Southpoint Inc. and
Valleybrooke Inc.
"Hazardous Materials" shall mean any chemical substance: (i) which
is or becomes defined as a "hazardous substance," "hazardous waste," "hazardous
material," "pollutant," "contaminant," or "toxic," "explosive," "corrosive,"
"flammable," "infectious," "radioactive," "carcinogenic," or "mutagenic"
material under any law, regulation, rule, order, or other authority of the
federal, state or local governments, or any agency, department, commission,
board, or instrumentality thereof, regarding the protection of human health or
the environment from such chemical substances including, but not limited to, the
following federal laws and their amendments, analogous state and local laws, and
any regulations promulgated thereunder: the Clean Air Act, the Clean Water Act,
the Oil Pollution Control Act, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1986, the Emergency Planning and Community
Right to Know Act, the Solid Waste Disposal Act, the Resource Conservation and
Recovery Act, the Safe Drinking Water Act, the Federal Insecticide, Fungicide
and Rodenticide Act, and the Toxic Substances Control Act, including, without
limitation, asbestos and gasoline and other petroleum products (including crude
oil or any fraction thereof); (ii) without limitation, which contains gasoline,
diesel fuel or other petroleum hydrocarbons; (iii) without limitation, which
contains asbestos-containing materials or urea formaldehyde foam insulation; or
(iv) without limitation, radon gas; provided, however, the term "Hazardous
Materials" shall not include de minimis quantities of substances of kinds and in
amounts ordinarily and customarily used or stored in properties similar to the
Property for the purposes of cleaning or other maintenance or operations and
otherwise in compliance with Environmental Requirements.
"Improvements" shall mean all buildings, improvements, fixtures and
other items of real estate located on the various Parcels.
"Insurance Policies" shall mean all policies of insurance
maintained by or on behalf of ▇▇▇▇▇▇▇▇, the Partnerships or the Corporations
pertaining to the Property, its operation, or any part thereof.
"Intangible Personal Property" shall mean all intangible personal
property owned or possessed by ▇▇▇▇▇▇▇▇, the Partnerships or the Corporations
and used in connection with the ownership, operation, leasing, occupancy or
maintenance of the Property, including, without limitation, (1) ▇▇▇▇▇▇▇▇', the
Partnerships' or the Corporations' exclusive right to use any trade names
associated with the Property and all variations thereof (other than variants of
▇▇▇▇▇▇▇▇' legal name, all rights to which shall be retained by ▇▇▇▇▇▇▇▇), (2)
the Authorizations, (3) escrow accounts (subject to the provisions of Section
7.6 hereof), utility and development rights and privileges, general intangibles,
business records, plans and specifications pertaining to the Real Property and
the Personal Property, and (4) any unpaid award for taking by condemnation or
any damage to the Land by reason of a change of grade or location of or access
to any street or highway.
"▇▇▇▇▇▇" shall mean ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, the holder of a 5.5%
limited partnership interest in each of the Partnerships.
6
"Land" shall mean those certain parcels of real estate lying and
being in the Commonwealth of Pennsylvania, as more particularly described on
Exhibit A attached hereto, together with all easements, rights, privileges,
remainders, reversions and appurtenances thereunto belonging or in any way
appertaining, and all of the estate, right, title, interest, claim or demand
whatsoever of ▇▇▇▇▇▇▇▇, the Partnerships or the Corporations therein, in the
streets and ways adjacent thereto and in the beds thereof, either at law or in
equity, in possession or expectancy, now or hereafter acquired.
"Leased Property" shall mean all leased items of personal property.
"Leases" shall mean all leases, tenancies and other rights of
occupancy or use for any portion of the Real Property and leasehold estate,
together with any and all amendments thereto; provided, the Leases shall not
include any Ground Lease.
"Note" shall mean a full recourse unsecured promissory note
executed by Brandywine OP, payable to ▇▇▇▇▇▇▇▇, bearing interest at the rate of
9.22% per annum, payable interest only quarterly, with the first installment of
interest being payable on the first day of the calendar month that is three (3)
full calendar months following the Closing Date and continuing on the first day
of each quarter-annual anniversary of such date thereafter, and the entire
principal balance of and all accrued interest on the Note shall be due and
payable on the date that is three (3) years and one (1) day following the
Closing Date. The principal balance of the Note shall be equal to seventy-eight
percent (78%) of the amount by which the Purchase Price exceeds the outstanding
principal balance of the Existing Notes on the Closing Date.
"Operating Agreements" shall mean all management, service, supply
and maintenance contracts, if any, in effect with respect to the Property and
all other contracts (other than the Leases) that affect the Property or are
otherwise related to the construction, ownership, operation, occupancy or
maintenance of the Property.
"Owner's Title Policy" shall mean an owner's policy of title
insurance for the Fee Estate Land and a leasehold policy of title insurance for
the Leasehold Estate Land issued to the Partnership by the Title Company,
pursuant to which the Title Company insures Brandywine OP's ownership of fee
simple title to the Fee Estate Land and leasehold title to the Leasehold Estate
Land subject only to Permitted Title Exceptions. The Owner's Title Policy shall
insure the Partnership in the aggregate amount of the Purchase Price and shall
be acceptable in form and substance to Brandywine OP. Brandywine OP may require
such deletions of standard exceptions and such title endorsements as are legally
available and customarily required by institutional investors purchasing
property comparable to the Property in each State where the Property is
situated. The description of the Land in the Owner's Title Policy shall be by
courses and distances or by reference to a legal, subdivided lot and shall be
identical to the description shown on the Survey.
"Parcel" shall mean each individual tract of the Land described on
Exhibit A hereto.
"Partnership Agreements" shall mean the limited partnership
agreements, as amended, creating the Partnerships.
7
"Partnerships" shall mean 111 Arrandale, 100 Arrandale, ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇ and 481 ▇▇▇▇ ▇▇▇▇▇.
"Permitted Title Exceptions" shall mean the Existing Liens,
Existing Notes and those exceptions to title to the Real Property that are
satisfactory to Brandywine OP as determined pursuant to Section 2.4(d) hereof.
"Personal Property" shall mean collectively the Tangible Personal
Property and the Intangible Personal Property.
"▇▇▇▇▇▇▇▇' Organizational Documents" shall mean the organizational
documents and all amendments thereto of ▇▇▇▇▇▇▇▇.
"Profit Percentage Interest" shall have the meaning ascribed to
such term in the applicable Partnership Agreements.
"Property" shall mean collectively the Real Property and the
Personal Property.
"Purchased Stock" shall mean seventy-eight (78) shares of common
stock in each of Southpoint Inc. and Valleybrooke Inc. to be sold by PPL to
Brandywine OP (or its designee) on the Closing Date.
"Purchase Price" shall mean $20,104,512.00 payable in the manner
described in Section 2.2 hereof.
"Real Property" shall mean the Land and the Improvements.
"Rent Roll" shall have the meaning ascribed to such term in Section
2.4(b)(2) of this Agreement.
"Retained Interests" shall mean all right, title and interest to be
retained by ▇▇▇▇▇▇▇▇ in each of the Partnerships other than the Assigned
Partnership Interests (which interest is comprised of an eleven percent [11%]
Capital Percentage Interest and a one percent [1%] Profit Percentage Interest)
and the eleven (11) shares of common stock to be retained by PPL in each of
Southpoint Inc. and Valleybrooke Inc.
"Study Period" shall mean the period commencing on the date this
Agreement has been fully executed and delivered by all parties hereto, and
continuing through February 16, 2001. Except as expressly noted herein to the
contrary, time periods herein referred to shall mean the time periods as in
effect, from time to time, at Dallas, Texas.
"Submission Matters" shall mean all items ▇▇▇▇▇▇▇▇ is required to
deliver to ▇▇▇▇▇▇▇▇ pursuant to Section 2.4(b) hereof.
"Survey" shall mean the survey defined as such in and prepared
pursuant to Section 2.4(d) hereof.
8
"Tangible Personal Property" shall mean the items of tangible
personal property consisting of all furniture, fixtures, equipment, machinery
and other personal property of every kind and nature located on or used or
useful in the ownership and operation of the Property and owned by ▇▇▇▇▇▇▇▇, the
Partnerships or the Corporations, including, without limitation, ▇▇▇▇▇▇▇▇', the
Partnerships' or the Corporations' interest as lessee with respect to any such
Tangible Personal Property, other than (a) the items of personal property
identified on Exhibit D hereto, and (b) the Leased Property.
"Title Commitment" shall mean the title commitment and exception
documents defined as such in Section 2.4(d) hereof.
"Title Company" shall mean Fidelity National Title Insurance
Company or other title insurance underwriter selected by Brandywine OP.
"UCC Reports" shall mean the reports defined as such in Section
2.4(d) hereof.
"Utilities" shall mean public sanitary and storm sewers, natural
gas (if any), telephone, public water facilities, electrical facilities and all
other utility facilities and services (if any) necessary or appropriate for the
operation and occupancy of the Property as an office building.
"Warranties and Guaranties" shall mean all warranties and
guaranties relating to the Improvements, or the Tangible Personal Property or
any part thereof.
ARTICLE II.
PURCHASE AND SALE; DEPOSIT; PAYMENT OF PURCHASE PRICE;
STUDY PERIOD; ASSIGNMENTS SUBJECT TO EXISTING NOTES AND LIENS
2.1 Purchase and Sale. On the Closing Date, ▇▇▇▇▇▇▇▇ agrees to sell the
Assigned Partnership Interests free and clear of all liens and encumbrances, PPL
agrees to sell the Purchased Stock free and clear of liens and encumbrances and
Brandywine OP agrees to purchase the Assigned Partnership Interests and
Purchased Stock in accordance with and subject to the other terms and conditions
set forth herein.
2.2 Payment of Purchase Price; Assignments Subject to Existing Notes
and Liens. The Purchase Price shall be paid to ▇▇▇▇▇▇▇▇ and PPL in the following
manner:
(a) Brandywine OP shall receive a credit against the Purchase Price
in an amount equal to the cash Deposit.
(b) Brandywine OP shall acknowledge and agree that the Property is
subject to the unpaid balances of the Existing Notes payable to the lienholders
described in Exhibit E hereto having approximate unpaid principal balances in
the amounts specified in Exhibit E, and subject to the obligations contained in
the Existing Liens. Notwithstanding the foregoing, (i) to the extent that any of
the Existing Notes or Existing Liens (or the loan documents executed in
connection therewith) create personal liability for specified acts, omissions or
occurrences (such acts, omissions or occurrences being referred to as "Carve-Out
Activities") and the associated personal liability being referred to as
"Carve-Out Liability"), (A) Brandywine OP shall, if Closing occurs, be
responsible for any such Carve-Out Liability attributable to Carve-Out
Activities accruing and occurring from and after the Closing Date, and shall and
does hereby indemnify and hold ▇▇▇▇▇▇▇▇ harmless with respect thereto, and (B)
▇▇▇▇▇▇▇▇ shall and does hereby indemnify and hold Brandywine OP harmless with
respect to Carve-Out Liability attributable to Carve-Out Activities accruing or
occurring prior to the Closing Date. If permitted by the holders of the Existing
Notes, ▇▇▇▇▇▇▇▇ shall be released from all Carve-Out Liability under the
Existing Notes and Liens and Brandywine OP shall execute such documents as the
holders of the Existing Notes may require to evidence the assumption by
Brandywine OP of the Carve-Out Liability. If permitted by any holder of an
Existing Note, ▇▇▇▇▇▇▇▇ shall be released from all Carve-Out Liability under
such Existing Note and Existing Liens securing payment of such existing Note,
and Brandywine OP shall execute such documents as the holder of any such
Existing Note may reasonably require to evidence the assumption by Brandywine OP
of the Carve-Out Liability attributable to Carve-Out Activities of Brandywine OP
or any of the Partnerships or Corporations accruing and occurring from and after
the Closing Date. The provisions of this Section 2.2(b) shall survive the
Closing.
9
(c) Brandywine OP shall pay the amount by which the Purchase Price
exceeds the sum of (a) the cash Deposit, plus (b) the outstanding principal
balance of the Existing Notes on the Closing Date, as adjusted in the manner
specified in Article VII and as set forth below, to ▇▇▇▇▇▇▇▇ at Closing by
executing and delivering the Note to ▇▇▇▇▇▇▇▇. Brandywine OP shall receive a
credit against the Purchase Price in an amount equal to the outstanding
principal balance of the Existing Notes on the Closing Date. The Purchase Price
shall be allocated among Assigned Partnership Interests and Purchased Stock in a
manner to be agreed upon by ▇▇▇▇▇▇▇▇, PPL and Brandywine OP on or before the
Closing Date.
2.3 Deposit. Within three (3) days after the execution hereof by both
▇▇▇▇▇▇▇▇ and Brandywine OP and as a condition precedent to the effectiveness of
this Agreement, Brandywine OP shall deliver to Escrow Agent a wire transfer or
check (a) in the sum of Fifty Dollars ($50.00) (the "Independent
Consideration"), payable to the order of ▇▇▇▇▇▇▇▇ representing the Independent
Consideration for ▇▇▇▇▇▇▇▇' execution of this Agreement (which check or the
proceeds of which wire transfer shall thereafter be delivered by Escrow Agent to
▇▇▇▇▇▇▇▇), and (b) the sum of $100,000.00 (the proceeds of which wire transfer
or check Escrow Agent shall deposit and invest in an interest bearing account at
a financial institution acceptable to Brandywine OP or as otherwise agreed to in
writing by ▇▇▇▇▇▇▇▇ and Brandywine OP). The proceeds of the wire transfer or
check are referred to herein as the "Deposit" and Escrow Agent shall hold and
invest the Deposit pursuant to the terms, conditions and provisions of this
Agreement. All accrued interest on the Deposit shall become part of the Deposit.
The Deposit (regardless of whether it is the proceeds of a wire transfer or
check) shall be either (a) returned to Brandywine OP pursuant hereto, or (b)
paid to ▇▇▇▇▇▇▇▇ pursuant hereto. For purposes of reporting earned interest with
respect to the Deposit, ▇▇▇▇▇▇▇▇' Federal Tax Identification Number is
▇▇-▇▇▇▇▇▇▇, and Brandywine OP's Federal Tax Identification Number is ▇▇-▇▇▇▇▇▇▇.
2.4 Study Period.
(a) Brandywine OP and its agents, contractors and duly authorized
representatives shall have the right, until 5:00 p.m., Dallas, Texas time on the
last day of the Study Period, and thereafter unless, as provided below,
Brandywine OP notifies ▇▇▇▇▇▇▇▇ in writing prior to the expiration of the Study
Period that Brandywine OP has elected to terminate this Agreement, to enter upon
the Real Property and to perform, at Brandywine OP's expense, such economic,
surveying, engineering, topographic, environmental, marketing and other tests,
studies and investigations as Brandywine OP may deem appropriate. If such tests,
studies and investigations do not warrant, in Brandywine OP's sole, absolute and
unreviewable discretion, the acquisition of the Assigned Partnership Interests
and the Purchased Stock for the purposes contemplated by Brandywine OP, then
Brandywine OP may elect not to proceed with this transaction and shall notify
▇▇▇▇▇▇▇▇ and Escrow Agent, in writing prior to the expiration of the Study
Period, that Brandywine OP has elected to terminate this Agreement, in which
event this Agreement automatically shall terminate, the Deposit shall be
promptly returned to Brandywine OP and Brandywine OP, ▇▇▇▇▇▇▇▇ and PPL shall be
released from all further liability or obligation hereunder except those which
expressly survive a termination of this Agreement. If Brandywine OP does not so
notify ▇▇▇▇▇▇▇▇ of its determination to terminate this Agreement prior to the
expiration of the Study Period, then Brandywine OP shall be deemed to have
waived its right to terminate this Agreement pursuant to this Section 2.4.
10
(b) ▇▇▇▇▇▇▇▇ has delivered or made available at the Property the
following to Brandywine OP:
(1) Copies of all Leases in effect as of the date of this
Agreement, together with, to the extent in ▇▇▇▇▇▇▇▇' possession or
reasonably available to ▇▇▇▇▇▇▇▇, copies of all correspondence received
from or sent to tenants of the Property.
(2) a Rent Roll (herein so called) certificate (with current
rent roll and accounts receivable report attached) for the Property
containing the following information with respect to each Lease: (i) a
description of the space occupied thereby (including square feet, type
of space, floor and tenant's pro rata share of common elements), (ii)
tenant's name, (iii) the commencement date and expiration date thereof,
(iv) the rental rate per square foot, (v) the amount of fixed monthly
rental, (vi) the amount of any percentage or other additional rental
and/or common area maintenance, tax, insurance and operating expenses
and any other charges payable thereunder and, if applicable, the base
year used in each Lease, (vii) the amount of any prepayment in rental,
(viii) the amount of the security deposit or any other deposit
thereunder, (ix) any free rent, concessions, rebates, refunds,
refurbishment allowances or other inducements which any tenant will be
entitled to receive after December 31, 2000 (including, without
limitation, any of the foregoing that may be payable in connection with
renewals, extensions or expansions expressly contemplated in any of
such Leases), (x) any options provided thereunder, including, without
limitation, any renewal options, expansion options, purchase options
and rights of first refusal and (xi) delinquency in rental or other
charges set forth in the attached accounts receivable report.
(3) To the extent in ▇▇▇▇▇▇▇▇' possession or reasonably
available to ▇▇▇▇▇▇▇▇, copies of all Authorizations including, without
limitation, all certificates of occupancy, permits, authorizations,
approvals (including drawings and enacting ordinances, if any), special
exceptions, variances, and licenses issued by Governmental Authorities
having jurisdiction over the Property and copies of all certificates
issued by the local board of fire underwriters (or other body
exercising similar functions) relating to the Property. For the purpose
of this Agreement any Submission Matters in the possession of ▇▇▇▇▇▇▇▇
or ▇▇▇▇▇▇▇▇' management company shall be deemed to be "reasonably
available to ▇▇▇▇▇▇▇▇."
11
(4) To the extent in ▇▇▇▇▇▇▇▇' possession or reasonably
available to ▇▇▇▇▇▇▇▇: (X) operating statements showing all income and
expenses, profits and losses of the Property for the previous three (3)
calendar years, which shall reflect (i) ad valorem taxes for the City,
County and State or Commonwealth; (ii) expenses incurred for such
period for water, electricity, natural gas and other utility charges;
(iii) other operating expenses; (iv) total rents collected from tenants
for such periods; and (v) other revenue collected and nature of such
revenue; and (Y) financial statements for the Property for the previous
three (3) calendar years, including, if available, the reports of
accountants thereon.
(5) Operating and capital expenditure budgets for the current
calendar year and, to the extent in ▇▇▇▇▇▇▇▇' possession or reasonably
available to ▇▇▇▇▇▇▇▇, for the previous three (3) calendar years.
(6) All existing surveys and title policies for the Property
that are reasonably available to ▇▇▇▇▇▇▇▇.
(7) A complete list of all Operating Agreements and leasing
commission agreements relating to the Property in effect as of the date
of this Agreement and complete copies of all such Operating Agreements
and leasing commission agreements.
(8) A complete list of all Tangible Personal Property.
(9) To the extent in ▇▇▇▇▇▇▇▇' possession or reasonably
available to ▇▇▇▇▇▇▇▇, any information in ▇▇▇▇▇▇▇▇' possession or
reasonably available to ▇▇▇▇▇▇▇▇ regarding current renditions or
assessments on the Property or notices relative to change in valuation
for ad valorem taxes.
(10) A complete list of all Warranties and Guaranties in
effect as of the date of this Agreement and complete copies of all such
Warranties and Guaranties.
(11) Copies of all soil tests, structural engineering tests,
inspection reports, asbestos surveys, masonry tests, percolation tests,
water, oil, gas, mineral, radon, formaldehyde, PCB or other
environmental tests, audits or reports, market studies and site plans
related to the Property in ▇▇▇▇▇▇▇▇' possession or reasonably available
to ▇▇▇▇▇▇▇▇, together with copies of any and all correspondence,
reports and other written documentation regarding the environmental
aspects of the property or any toxic substances or equipment affecting
or related to the Property.
(12) If in ▇▇▇▇▇▇▇▇' possession or reasonably available to
▇▇▇▇▇▇▇▇, copies of complete sets of all architectural, mechanical,
structural and/or electrical plans and specifications used in
connection with the construction of or alterations or repairs to the
Property.
12
(13) If in ▇▇▇▇▇▇▇▇' possession or reasonably available to
▇▇▇▇▇▇▇▇, copies of as-built plans and specifications for the Property.
(14) Parking, structural, mechanical or other engineering
reports or studies related to the Property, if any, in ▇▇▇▇▇▇▇▇'
possession or reasonably available to ▇▇▇▇▇▇▇▇.
(15) To the extent in the possession of ▇▇▇▇▇▇▇▇ or any
affiliate of ▇▇▇▇▇▇▇▇ or ▇▇▇▇▇▇▇▇' property manager, copies of credit
reports and financial information on all tenants in possession of any
of the Property and of any guarantors of such tenants' obligations.
(16) Copies of all approvals from any owners associations
having jurisdiction over the Real Property and copies of all
correspondence from any such owners association.
(17) Copies of the Existing Notes, Existing Liens and copies
of any uncured notices of default or event of default from the
holder(s) of the Existing Notes.
(18) A copy of each Ground Lease, and all amendments thereto.
(19) Copies of the Partnership Agreements and the
organizational documents and minute books of each of Southpoint Inc.
and Valleybrooke Inc., and financial statements and tax returns for
each of the Partnerships, Southpoint Inc. and Valleybrooke Inc. for the
years 1998, 1999 and 2000, to the extent reasonably available to
▇▇▇▇▇▇▇▇.
(20) Copies of all Insurance Policies in effect, together with
the name and telephone number of either a contact person at each
insurance company or the insurance broker involved with the issuance of
the Insurance Policies.
Any reference to a document or information being in the possession of
▇▇▇▇▇▇▇▇ or similar phrase shall be construed to include documents or
information currently in the possession of any of the Partnerships or
Corporations.
During the Study Period and thereafter until the Closing, ▇▇▇▇▇▇▇▇
shall make available to Brandywine OP, copies of all materials, correspondence,
books, records, financial statements, operating statements and any and all other
materials or information relating to the Partnerships, Southpoint Inc.,
Valleybrooke Inc. and the Property which come into ▇▇▇▇▇▇▇▇' possession or
control or are otherwise reasonably available to ▇▇▇▇▇▇▇▇ from and after the
date on which the Submission Matters were delivered to Brandywine OP.
Notwithstanding anything herein to the contrary, although Brandywine OP
has not received all of the deliveries described in this Section 2.4(b),
Brandywine OP has completed its feasibility study pursuant to Section 2.4(a) but
reserves the right to require, and ▇▇▇▇▇▇▇▇ hereby agrees to deliver, to the
extent reasonably available to it, any item described in Section 2.4(b) not
previously delivered at any time during the period expiring six (6) months after
the Closing Date, which agreement shall survive the Closing Date for such six
(6) month period.
13
(c) Brandywine OP shall indemnify and defend ▇▇▇▇▇▇▇▇ against any
loss, damage or claim for personal injury or property damage (including
reasonable attorney's fees) arising from the entry upon the Property pursuant to
this Section 2.4 by Brandywine OP or any agents, contractors or employees of
Brandywine OP. Brandywine OP, at its own expense, shall restore any damage to
the Property caused by any of the tests or studies made by Brandywine OP. This
provision shall survive any termination of this Agreement and a closing of the
transaction contemplated hereby.
(d) On or before 5:00 p.m. Dallas, Texas time on the date that is
five (5) days after the date of this Agreement, ▇▇▇▇▇▇▇▇ shall deliver to
Brandywine OP, at ▇▇▇▇▇▇▇▇' sole cost and expense, the most recent Surveys of
the Land and the Improvements for all of the Land and Improvements which
constitute the Property, which are in the possession of ▇▇▇▇▇▇▇▇. Such Surveys
shall have been prepared by a Surveyor(s) licensed to practice in the State
where the Property is located. During the Study Period, Brandywine OP shall have
the right to update such Surveys, at Brandywine OP's sole cost. On or before the
Closing Date, Brandywine OP shall cause the Title Company to furnish to
Brandywine OP, at ▇▇▇▇▇▇▇▇' sole cost and expense, (i) a title insurance
commitment bearing an effective date subsequent to the date of this Agreement
issued by the Title Company covering the Real Property, binding the Title
Company to issue a ALTA Form Owner's Policy of Title Insurance, showing title to
be held currently by the Partnerships in a good, indefeasible and insurable
condition, together with legible copies of all documents identified in such
title insurance commitment as exceptions to title certified as true and complete
by the Title Company (collectively, the "Title Commitment"), and (ii) reports of
searches of the Uniform Commercial Code records of both the county and State in
which the Property is located (collectively, the "UCC Reports") with respect to
the state of title to the Property. Prior to the expiration of the Study Period,
Brandywine OP shall notify ▇▇▇▇▇▇▇▇ of any matters shown on the Survey or
identified in the Title Commitment or the UCC Reports that Brandywine OP is
unwilling to accept (collectively, "Brandywine OP's Objections"); however,
Brandywine OP may not object to any Ground Lease, the Existing Notes and
Existing Liens. If any of Brandywine OP's Objections consist of delinquent
taxes, mortgages, deeds of trust, security agreements, construction or
mechanics' liens, tax liens or other liens or charges in a fixed sum or capable
of computation as a fixed sum, then, to that extent, notwithstanding anything
herein to the contrary, ▇▇▇▇▇▇▇▇ shall be obligated to pay and discharge (or
bond against in a manner sufficient to cause the Title Company to insure over
such Brandywine OP's Objections) any such Brandywine OP's Objections and Escrow
Agent is authorized to pay and discharge at Closing such Brandywine OP's
Objections to the extent not paid and discharged or bonded against at Closing.
▇▇▇▇▇▇▇▇ shall not be obligated to incur any expenses to cure any non-monetary
Brandywine OP's Objections (including, without limitation, any lis pendens filed
against the Property) unless ▇▇▇▇▇▇▇▇ agrees to cure such non-monetary
Brandywine OP's Objections as hereinafter provided. ▇▇▇▇▇▇▇▇ shall notify
Brandywine OP on or before the Closing Date whether ▇▇▇▇▇▇▇▇ agrees to cure such
non-monetary Brandywine OP's Objections. If ▇▇▇▇▇▇▇▇ notifies Brandywine OP in
writing on or before the Closing Date that ▇▇▇▇▇▇▇▇ agrees to cure such
14
non-monetary Brandywine OP's Objections, ▇▇▇▇▇▇▇▇ shall correct such
non-monetary Brandywine OP's Objections on or before the Closing Date to the
reasonable satisfaction of Brandywine OP. If ▇▇▇▇▇▇▇▇ does not notify Brandywine
OP on or before the Closing Date of its agreement to cure such non-monetary
Brandywine OP's Objections, ▇▇▇▇▇▇▇▇ shall be deemed to have elected not to cure
such non-monetary Brandywine OP's Objections, and Brandywine OP shall elect (1)
to waive such non-monetary Brandywine OP's Objections or (2) to terminate this
Agreement, in which case the Deposit shall be promptly returned to Brandywine OP
and the parties hereto shall be released from all further obligations hereunder
except those which expressly survive a termination of this Agreement. ▇▇▇▇▇▇▇▇
shall not, after the date of this Agreement, permit the Partnerships to subject
the Real Property to or permit or suffer to exist any liens, encumbrances,
covenants, conditions, restrictions, easements or other title matters or seek
any zoning changes or take any other action which may affect or modify the
status of title without Brandywine OP's prior written consent. The Existing
Notes, Existing Liens, each Ground Lease and all title matters revealed by the
Title Commitment, UCC Reports and Survey and not objected to by Brandywine OP as
provided above (other than those rendering title defeasible and delinquent
taxes, mortgages, deeds of trust, security agreements and other liens and
charges that are to be paid at Closing or bonded against as provided above)
shall be deemed Permitted Title Exceptions. Notwithstanding the foregoing,
Brandywine OP shall not be required to close the transactions described in this
Agreement if title to the Real Property on the Closing Date is subject to any
matters which (i) may arise subsequent to the effective date of the Title
Commitment, UCC Reports and Survey examined by Brandywine OP during the Study
Period and (ii) impairs title to any portion of the Property and will not be
released or bonded against on or before the Closing Date. If a title exception
is disclosed by the Title Company which was not shown in the Title Commitment or
Survey and was not the result of any of the Partnerships' acts or omissions,
then, unless ▇▇▇▇▇▇▇▇ notifies Brandywine OP in writing by the Closing Date that
▇▇▇▇▇▇▇▇ agrees to take such action as may be necessary to release such title
exception on or before the Closing Date, Brandywine OP may (i) terminate this
Agreement by written notice to ▇▇▇▇▇▇▇▇, in which event the Deposit shall be
promptly returned to Brandywine OP and the parties hereto shall be released from
all further obligations hereunder except those which expressly survive a
termination of this Agreement, or (ii) waive its objections to such title
exception and consummate the transactions contemplated herein.
ARTICLE III.
▇▇▇▇▇▇▇▇' REPRESENTATIONS AND WARRANTIES
To induce Brandywine OP to enter into this Agreement and to acquire the
Assigned Partnership Interests, ▇▇▇▇▇▇▇▇ makes the following representations and
warranties with respect to the Property, the Partnerships and the Corporations,
as applicable, upon each of which ▇▇▇▇▇▇▇▇ acknowledges and agrees that
Brandywine OP is entitled to rely and has relied:
3.1 Organization and Power. ▇▇▇▇▇▇▇▇ is a limited partnership duly
formed, validly existing and in good standing under the laws of the State of
Delaware, is duly qualified to transact business in the Commonwealth of
Pennsylvania and State of Delaware, and has all requisite powers and all
material governmental licenses, authorizations, consents and approvals to carry
on its business as now conducted and to enter into and perform its obligations
hereunder and under any document or instrument required to be executed and
delivered on behalf of ▇▇▇▇▇▇▇▇ hereunder. PPL is a corporation duly formed,
validly existing and in good standing under the laws of the State of Delaware,
and has all requisite powers and all material governmental licenses,
authorizations, consents and approvals to carry on its business as now conducted
and to enter into and perform its obligations hereunder and under any document
or instrument required to be executed and delivered on behalf of PPL hereunder.
15
3.2 Authorization, Execution and Disclosure. This Agreement has been
duly authorized by all necessary action on the part of ▇▇▇▇▇▇▇▇ and PPL, has
been duly executed and delivered by ▇▇▇▇▇▇▇▇ and PPL, constitutes the valid and
binding agreement of ▇▇▇▇▇▇▇▇ and PPL and is enforceable in accordance with its
terms, subject to the effect of applicable bankruptcy, insolvency,
reorganization, arrangement, moratorium or other similar laws affecting the
rights of creditors generally. Except for the consents of the holders of the
Existing Notes, there is no other person or entity who has an ownership interest
in the Property, the Partnerships or the Corporations or whose consent is
required in connection with ▇▇▇▇▇▇▇▇' or PPL's performance of its obligations
hereunder which has not been obtained. The person executing this Agreement on
behalf of ▇▇▇▇▇▇▇▇ and PPL has the authority to do so. Neither ▇▇▇▇▇▇▇▇ nor PPL
has or will intentionally conceal any information regarding the Partnerships,
the Corporations or the Property.
3.3 Non-contravention. The execution and delivery of, and the
performance by ▇▇▇▇▇▇▇▇ of its obligations under, this Agreement do not and will
not (a) contravene, or constitute a default under, any provision of (i)
▇▇▇▇▇▇▇▇' Organizational Documents, the articles of incorporations and bylaws of
PPL, the articles of incorporation and bylaws of the Corporations, or any of the
Partnership Agreements, (ii) applicable law or regulation or any agreement,
judgment, injunction, order, decree or other instrument binding upon ▇▇▇▇▇▇▇▇ or
to which the Property is subject, the result of which could have a material
adverse effect on either the value of the Property or ▇▇▇▇▇▇▇▇' ability to
assign the Assigned Partnership Interests to Brandywine OP (or its designee)
and/or ▇▇▇▇▇▇▇▇' ability to perform its obligations under this Agreement, or
PPL's ability to transfer the Purchased Stock to Brandywine OP (or its designee)
and or PPL's ability to perform its obligations under this Agreement, or (iii)
result in the creation of any lien or other encumbrance on any asset of
▇▇▇▇▇▇▇▇, PPL, any of the Partnerships or the Corporations. There are no
outstanding agreements (written or oral) pursuant to which ▇▇▇▇▇▇▇▇, any of the
Partnerships or the Corporations (or any predecessor to or representative of
▇▇▇▇▇▇▇▇) has agreed to sell or has granted an option or right of first refusal
to purchase the Property or any part thereof.
3.4 No Special Taxes. ▇▇▇▇▇▇▇▇ has no knowledge of, nor has it received
any notice of, any special taxes or assessments relating to the Property or any
part thereof or any planned public improvements that may result in a special tax
or assessment against the Property.
3.5 Compliance with Existing Laws and Restrictive Covenants. To
▇▇▇▇▇▇▇▇' knowledge, each of the Partnerships possesses all Authorizations, each
of which is valid and in full force and effect, and no provision, condition or
limitation of any of the Authorizations has been breached or violated. Neither
▇▇▇▇▇▇▇▇, nor, to ▇▇▇▇▇▇▇▇' knowledge, either any of the Partnerships or the
Corporations, has received any notice within the past three years, of any
existing or threatened violation of any provision of any (a) Applicable Laws
including, but not limited to, those of environmental agencies or insurance
boards of underwriters with respect to the ownership, operation, use,
maintenance or condition of the Property or any part thereof, or requiring any
repairs or alterations to the Property other than those that have been made
prior to the date hereof, and (b) restrictive covenants or deed restrictions
affecting the Real Property.
3.6 Personal Property. Except for the Existing Liens, all of the
Personal Property owned by the Partnerships is free and clear of all liens and
encumbrances except for those which will be discharged by ▇▇▇▇▇▇▇▇ at Closing,
and each of the Partnerships has good and merchantable title thereto.
16
3.7 Operating Agreements. There are no management, service, supply,
maintenance, employment or other contracts in effect with respect to the
Property, the Partnerships or the Corporations of any nature whatsoever, written
or oral, other than the Assumed Operating Agreements and the Operating
Agreements to be terminated pursuant to the last sentence of this Section 3.7.
To ▇▇▇▇▇▇▇▇' knowledge, each of the Partnerships and each of the Corporations
has performed all of its respective obligations under each of the Assumed
Operating Agreements in all material respects and no fact or circumstance has
occurred which, by itself or with the passage of time or the giving of notice or
both, would constitute a default under any of the Assumed Operating Agreements.
To ▇▇▇▇▇▇▇▇' knowledge, all other parties to the Assumed Operating Agreements
have performed all of their obligations thereunder in all material respects, and
are not in default thereunder in any material respect. Neither ▇▇▇▇▇▇▇▇, the
Partnerships nor the Corporations has received any notice of any intention by
any of the parties to any of the Assumed Operating Agreements to cancel the
same, nor has ▇▇▇▇▇▇▇▇, the Partnerships or the Corporations canceled any of
same. At the written request or Brandywine OP, ▇▇▇▇▇▇▇▇ shall cause any
Operating Agreements designated by Brandywine OP which are terminable without
penalty to be terminated as of the Closing Date.
3.8 Condemnation Proceedings; Roadways. ▇▇▇▇▇▇▇▇ has received no notice
of any condemnation or eminent domain proceeding pending or, to ▇▇▇▇▇▇▇▇'
knowledge, no such action is threatened, against the Property or any part
thereof. ▇▇▇▇▇▇▇▇ has no knowledge of any change or proposed change in the
route, grade or width of, or otherwise affecting, any street, creek or road
adjacent to or serving the Real Property.
3.9 Actions or Proceedings. There is no action, suit or proceeding
pending or known to ▇▇▇▇▇▇▇▇ to be threatened against or affecting ▇▇▇▇▇▇▇▇, any
of the Partnerships or the Corporations in any court, before any arbitrator or
before or by any Governmental Authority which (a) in any manner raises any
question affecting the validity or enforceability of this Agreement or any other
agreement or instrument to which ▇▇▇▇▇▇▇▇ or any of the Partnerships or any of
the Corporations is a party or by which it is bound and that is or is to be used
in connection with, or is contemplated by, this Agreement, (b) is reasonably
likely to materially and adversely affect the business, financial position or
results of operations of ▇▇▇▇▇▇▇▇, any of the Partnerships, any of the
Corporations or the Property, (c) is reasonably likely to materially and
adversely affect the ability of ▇▇▇▇▇▇▇▇ to perform its obligations hereunder,
or under any document to be delivered pursuant hereto, or the ability of the
Partnerships or the Corporations to own and operate their respective Property,
(d) is reasonably likely to create a lien on the Property, any part thereof or
any interest therein or (e) is reasonably likely to otherwise materially and
adversely affect any of the Partnerships, the Corporations or the Property, any
part thereof or any interest therein or the use, operation, condition or
occupancy thereof.
3.10 Bankruptcy. No Act of Bankruptcy has occurred with respect to
▇▇▇▇▇▇▇▇, any of the Partnerships or the Corporations.
17
3.11 Hazardous Substances. To ▇▇▇▇▇▇▇▇' knowledge, neither any of the
Partnerships. the Corporations nor any previous owner, tenant, occupant or user
of the Property, nor any other person, has engaged in or permitted any
operations or activities upon, or any use or occupancy of the Property or any
portion thereof, for the purpose of or in any way involving the handling,
manufacture, treatment, storage, use, generation, release, discharge, refining,
dumping or disposal of any Hazardous Materials on, under, in or about the
Property in violation of any Applicable Laws. To ▇▇▇▇▇▇▇▇' knowledge, no
Hazardous Materials have migrated from or to the Property upon, about, or
beneath other properties in violation of any Environmental Requirements. To
▇▇▇▇▇▇▇▇' knowledge, neither the Property nor its existing or prior uses fail or
failed to materially comply with Environmental Requirements. ▇▇▇▇▇▇▇▇ has no
knowledge of any permits, licenses or other authorizations which are required
under any Environmental Requirements with regard to the current uses of the
Property which have not been obtained and complied with. To ▇▇▇▇▇▇▇▇' knowledge,
neither any of the Partnerships, the Corporations nor any prior owner, occupant
or user of the Property has received any written notice concerning any alleged
violation of Environmental Requirements in connection with the Property or any
liability for Environmental Damages in connection with the Property for which
any of the Partnerships or the Corporations (or Brandywine OP after Closing) may
be liable. To ▇▇▇▇▇▇▇▇' knowledge, no Hazardous Materials are constructed,
deposited, stored or otherwise located on, under, in or about the Property in
violation of any Environmental Requirements. To ▇▇▇▇▇▇▇▇' knowledge, there
exists no writ, injunction, decree, order or judgment outstanding, nor any
lawsuit, claim, proceeding, citation, summons or investigation, pending or
threatened, relating to any alleged violation of Environmental Requirements on
the Property, or from the suspected presence of Hazardous Materials thereon, or
relating to any Environmental Damages. To ▇▇▇▇▇▇▇▇' knowledge, there are no
underground or above ground chemical treatment or storage tanks, or gas or oil
▇▇▇▇▇ are located on the Property. The representations and warranties made by
▇▇▇▇▇▇▇▇ in this Section 3.11 shall be subject to the matters disclosed in the
environmental reports delivered by ▇▇▇▇▇▇▇▇ to Brandywine OP pursuant to Section
2.4(b)(12) hereof.
3.12 Parties in Possession. There are no parties in possession of the
Property except for tenants under written leases, copies of which will be
delivered to Brandywine OP pursuant to the terms hereof.
3.13 Leases. There are no leases, concessions or occupancy agreements
in effect with respect to the Real Property other than the Leases listed on the
Rent Roll attached as Schedule 3.13; and Schedule 3.13 attached hereto is a
complete and correct list of all Leases in effect on the date of this Agreement.
Neither ▇▇▇▇▇▇▇▇ nor the Partnerships has sent out any written notice of any
default to any tenant under any Lease which has not been cured, except as set
forth on Schedule 3.13. To ▇▇▇▇▇▇▇▇' knowledge, each of the Partnerships has
performed all obligations required of it under all of the Leases and there
remain no unfulfilled obligations of any of the Partnerships under the Leases,
the nonperformance of which could entitle a tenant to damages under such Lease
or could cause any of the Partnerships to be in default under such Lease. Except
as shown on Schedule 3.13, no tenant has given written notice to any of the
Partnerships of its intention to institute litigation with respect to any Lease
that has not been dismissed, and ▇▇▇▇▇▇▇▇ has not been served with a citation
notifying any of the Partnerships of any litigation with respect to any Lease
that has not been dismissed. None of the Leases and none of the rents or other
amounts payable thereunder have been assigned, pledged or encumbered except for
(a) any assignments, pledges or encumbrances which will be fully released on or
before the Closing Date, and (b) the Existing Liens. The Rent Roll is true,
correct and complete in all material respects as of the date shown in the Rent
Roll and, to ▇▇▇▇▇▇▇▇' knowledge, there has been no material adverse change with
respect to any of the items shown on the Rent Roll during the period from the
date thereof to the date of this Agreement, except as shown thereon.
18
3.14 Leased Property. To ▇▇▇▇▇▇▇▇' knowledge, all leases of the Leased
Property, if any, are in good standing and free from default.
3.15 No Unpaid Charges; Financial Statements. Subject to Section 7.8
hereof, there are no unpaid charges, debts, liabilities, claims or obligations
arising from the construction, occupancy, ownership, use or operation of the
Property which could give rise to any mechanic's or materialmen's or other
statutory lien against the Property, or any part thereof, or for which
Brandywine OP will be responsible or which will be due upon the initial
occupancy of vacant space (such as water or sewer connection or tap-in fee). The
financial statements and tax returns of the Partnerships and the Corporations
delivered pursuant to Section 2.4(b)(20) were true, correct and complete in all
material respects as of the respective dates thereof.
3.16 Condition of Improvements. Neither ▇▇▇▇▇▇▇▇, any of the
Partnerships nor any of the Corporations has received any written notice, from
any third party alleging that (a) any of the Improvements (i) are defective in
design or construction, (ii) are not in operating condition and a satisfactory
state of repair, or (iii) have roof leaks, (b) any mechanical systems are not in
reasonable working order and repair, or (c) any of the Partnerships or
Corporations has failed to operate the Property in a commercially reasonable
manner consistent with a modern office building; provided, however, the
foregoing representation and warranty as to notices received shall not include
any representation or warranty as to notices concerning the aesthetic or other
subjective quality of the design of the Property or any system, element or
component thereof and no representation or warranty shall be deemed made as to
any defect disclosed in any property condition report obtained by Brandywine OP
in connection with the Property.
3.17 Access. ▇▇▇▇▇▇▇▇ has no knowledge of any pending or threatened
governmental proceeding or any other fact or condition which would limit or
result in the termination of the Property's existing access to and from public
streets or roads.
3.18 No Commitments. No commitments have been made to any Governmental
Authority, utility company, school board, church or other religious body, or any
homeowners' association or any other organization, group or individual, relating
to the Property which would impose an obligation upon Brandywine OP, any of the
Partnerships or the Corporations to make any contribution or dedication of money
or land or to construct, install or maintain any improvements of a public or
private nature on or off the Property. Without limiting the generality of the
foregoing, none of the Partnerships is a party to any paving agreements or
undertakings, payback agreements, revenue bonds, utility debt service expenses
or other charges or expenses upon or relating to any of the Property or
applicable thereto.
3.19 None of the Partnerships nor ▇▇▇▇▇▇▇▇ Is a "Foreign Person". None
of the Partnerships nor ▇▇▇▇▇▇▇▇ is a "foreign person" within the meaning of
Section 1445 of the Internal Revenue Code, as amended (i.e., neither the
Partnerships nor ▇▇▇▇▇▇▇▇ is a foreign corporation, foreign partnership, foreign
trust, foreign estate or foreign person as those terms are defined in the
Internal Revenue Code and regulations promulgated thereunder).
19
3.20 Leasing Commissions. No brokerage or leasing commissions or other
fees or compensation are due or payable, or which will become due and payable as
a result of agreements in place, to any person, firm, corporation or other
entity with respect to or on account of any of the Leases or any extension or
renewals thereof, except as set forth on Schedule 3.20 or 6.4(g) hereof.
3.21 Other Agreements. There are no options, contracts or other
obligations outstanding for the sale, exchange or transfer of any of the
Property or any interest therein which would be superior to the rights of
Brandywine OP under this Agreement or which would survive Closing, other than
buy/sell provisions in the Partnership Agreements.
3.22 Existing Secured Indebtedness. There is no debt secured by liens
on the Real Property, or any portion thereof, which will not be released and
discharged as of the Closing, other than the Existing Notes and the Existing
Liens. None of the Partnerships is in default under the Existing Notes or the
Existing Liens, to ▇▇▇▇▇▇▇▇' knowledge, no event has occurred which, with the
passage of time or the giving of notice, or both, would constitute a default
thereunder, and Exhibit E is true, accurate and complete in all material
respects.
3.23 Employment on "At-Will" Basis. All persons and entities presently
employed in connection with the operation and maintenance of the Property are
employed on an "at will" basis, are dischargeable upon thirty (30) days' notice
and, unless otherwise directed by Brandywine OP, shall be terminated by ▇▇▇▇▇▇▇▇
as of Closing. There are no labor disputes pending, nor to the best of ▇▇▇▇▇▇▇▇'
knowledge, contemplated pertaining to the operation or maintenance of the
Property, or any part thereof. Neither ▇▇▇▇▇▇▇▇, any of the Partnerships nor the
Corporations has any employment agreements, either written or oral, with any
person which would require Brandywine OP to employ any person after the date
hereof or the Closing Date.
3.24 Additional Representations and Warranties with Respect to the
Partnerships.
(a) Each of the Partnerships is a limited partnership duly
organized and validly existing under the laws of the Commonwealth of
Pennsylvania, and each of the Partnerships is in good standing in such state;
(b) The Partnership Agreements delivered pursuant to Section
2.4(b)(20) are true and correct copies of the agreements of limited partnership
of the Partnerships, as amended through the date hereof. The Partnership
Agreements list all existing Partners (individually, a "Partner" and
collectively, the "Partners") of the Partnership; and the Partnership Agreements
accurately list the percentage ownership interests of ▇▇▇▇▇▇▇▇ in each of the
Partnerships; however, in making the foregoing representation and warranty,
▇▇▇▇▇▇▇▇ has assumed that neither ▇▇▇▇▇▇ nor ▇▇▇▇▇▇ has assigned or encumbered
any of their respective partnership interests in the Partnerships. ▇▇▇▇▇▇▇▇ is
the sole owner of the partnership interests shown on such books and in the
Partnership Agreements as being owned by ▇▇▇▇▇▇▇▇, free and clear of all liens
and encumbrances. The partnership interests issued by the Partnerships have been
issued in compliance with the Partnership Agreements, and such interests were
not issued in violation of any federal or state securities laws;
20
(c) As of the date hereof, the capital account of each of the
Partners in the Partnerships is as set forth on Exhibit H and none of the
Partners has been asked to make a capital contribution to any of the
Partnerships other than capital contributions that have been made in full as of
the date hereof;
(d) There are no equity, revenue, cash flow, profit or other
participations or similar rights which apply to the Partnerships except as set
forth in the Partnership Agreements;
(e) Except as provided in the Partnership Agreements, there are no
rights, subscriptions, options, rights of first refusal, conversion rights or
other agreements to purchase or to otherwise acquire any securities or
obligations of any kind convertible into any partnership interest or other
equity interests or participation interests in any Partnerships except for those
rights created by the put/call agreements to be assigned by ▇▇▇▇▇▇▇▇ pursuant to
the Assignment of Put/Call Agreements; and
(f) None of the Partnerships has engaged in any business other
than the ownership, development, leasing and management of the Property, and
none of the Partnerships has any subsidiaries or has ever owned stock, shares or
interests of any kind whatsoever in any entity.
(g) ▇▇▇▇▇▇▇▇ shall cause each of the Partnerships to make the
election provided under Section 754 of the Internal Revenue Code of 1986, as
amended, if requested by Brandywine OP or its designee at any time after the
Closing Date. Brandywine OP may make such request for one or more of the
Partnerships without being required to make such request for all of the
Partnerships.
3.25 Representations and Warranties of PPL. To induce Brandywine OP to
induce to enter into this Agreement and to acquire the Purchased Stock, PPL and
▇▇▇▇▇▇▇▇ make the following representations and warranties, jointly and
severally, with respect to the Ground Lease, Valleybrooke Inc. and Southpoint
Inc., upon each of which PPL and ▇▇▇▇▇▇▇▇ acknowledge and agree that Brandywine
OP is entitled to rely and has relied:
(a) Each of Southpoint Inc. and Valleybrooke Inc. is duly
organized, validly existing and in good standing under the laws of the
Commonwealth of Pennsylvania;
(b) The authorized equity securities of each of Southpoint Inc.
and Valleybrooke Inc. consist solely of 1,000 shares of each such corporation,
of which 100 shares are issued and outstanding for each such corporation (the
"Outstanding Shares"). The Outstanding Shares are duly authorized, validly
issued, fully paid and nonassessable. PPL is the record and beneficial owner of,
and has good title to, eighty-nine (89) shares of each of Southpoint Inc. and
Valleybrooke Inc., free and clear of all liens, claims, security interests,
assignments, options, voting trusts, proxies, voting agreements, understandings
or arrangements with respect to voting, and adverse claims to title of any kind
or character. Except for the Option Agreement, there are no outstanding
subscriptions, options, warrants, calls or rights of any kind relating to or
providing for the issuance, sale, delivery or transfer of securities of any
class of either Southpoint Inc. or Valleybrooke Inc.;
21
(c) Except for the liabilities or obligations shown in the
financial statements of Southpoint Inc. and Valleybrooke Inc. delivered pursuant
to Section 2.4(b)(20) hereof, neither of such corporations has any liabilities
or obligations, other than liabilities accrued and discharged in such
Corporations' ordinary course of business. The financial statements and tax
returns of Southpoint Inc. and Valleybrooke Inc. delivered pursuant to Section
2.4(b)(20) were true, correct and complete in all material respects as of the
respective dates thereof;
(d) Neither Southpoint Inc. nor Valleybrooke Inc. is a "foreign
person" within the meaning of Section 1445 of the Internal Revenue Code, as
amended;
(e) Neither Southpoint Inc. nor Valleybrooke Inc. has engaged in
any business or activities other than the business of owning the real property
described in each Ground Lease;
(f) The articles of incorporation, bylaws and minute books of each
of Southpoint Inc. and Valleybrooke Inc. delivered pursuant to Section
2.4(b)(20) hereof are true and complete copies thereof; and
(g) Each Ground Lease is valid and in full force and effect. No
Ground Lessor is in default under any Ground Lease; to PPL's knowledge, no event
has occurred which, with the passage of time or the giving of notice, or both,
would constitute a default under any Ground Lease; and Exhibit B is a true,
accurate and complete description, in all material respects, of each Ground
Lease and all amendments thereto.
3.26 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES. BRANDYWINE OP
HEREBY AGREES AND ACKNOWLEDGES THAT, EXCEPT AS SET FORTH IN THIS ARTICLE III, OR
AS OTHERWISE EXPRESSLY STATED HEREIN OR IN ANY DOCUMENTS EXECUTED IN CONNECTION
HEREWITH, NEITHER ▇▇▇▇▇▇▇▇, PPL NOR ANY AGENT, ATTORNEY, EMPLOYEE OR
REPRESENTATIVE OF ▇▇▇▇▇▇▇▇ OR PPL HAS MADE ANY REPRESENTATION WHATSOEVER
REGARDING THE SUBJECT MATTER OF THIS AGREEMENT, OR ANY PART THEREOF, INCLUDING
(WITHOUT LIMITING THE GENERALITY OF THE FOREGOING) REPRESENTATIONS OR WARRANTIES
AS TO THE PHYSICAL NATURE OR CONDITION OF THE PROPERTY OR THE CAPABILITIES
THEREOF, AND THAT BRANDYWINE OP, IN EXECUTING, DELIVERING AND/OR PERFORMING THIS
AGREEMENT, DOES NOT RELY UPON ANY STATEMENT AND/OR INFORMATION TO WHOMEVER MADE
OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, BY ANY INDIVIDUAL, FIRM
OR CORPORATION EXCEPT THOSE EXPRESSLY CONTAINED HEREIN OR DELIVERED PURSUANT
THERETO OR IN ANY DOCUMENTS EXECUTED IN CONNECTION HEREWITH. EXCEPT AS OTHERWISE
PROVIDED HEREIN, BRANDYWINE OP AGREES TO TAKE THE ASSIGNED PARTNERSHIP INTERESTS
AND PURCHASED STOCK "AS IS," AS OF THE DATE HEREOF AND INDIRECT INTERESTS IN THE
PROPERTY. IN ADDITION, EXCEPT AS SET FORTH HEREIN, ▇▇▇▇▇▇▇▇ MAKES NO
REPRESENTATIONS OR WARRANTIES REGARDING THE COMPLIANCE WITH ANY ENVIRONMENTAL
REQUIREMENTS, INCLUDING THE EXISTENCE IN OR ON THE PROPERTY OF HAZARDOUS
MATERIALS. THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE THE CLOSING OR ANY
TERMINATION HEREOF.
22
Each of the representations and warranties contained in this Article III and its
various subparagraphs are intended for the benefit of Brandywine OP and may be
waived in whole or in part by Brandywine OP. All rights and remedies arising in
connection with the untruth or inaccuracy of any such representations and
warranties shall survive the Closing of the transaction contemplated hereby as
provided in Section 10.11 hereof, except to the extent that ▇▇▇▇▇▇▇▇ gives
Brandywine OP written notice prior to Closing of the untruth or inaccuracy of
any representation or warranty, Brandywine OP otherwise obtains actual knowledge
prior to Closing of the untruth or inaccuracy of any representation or warranty,
and Brandywine OP nevertheless elects to close this transaction. Brandywine OP
shall be deemed to have actual knowledge of the untruth or inaccuracy of any
representation or warranty only if (i) Brandywine OP receives written notice
from ▇▇▇▇▇▇▇▇ satisfying the foregoing requirements, or (ii) ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇,
▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ or ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ has
actual knowledge of any such untruth or inaccuracy. Except to the extent
otherwise expressly provided in the immediately preceding sentence, no
investigation, audit, inspection, review or the like conducted by or on behalf
of Brandywine OP shall be deemed to terminate the effect of any such
representations, warranties and covenants, it being understood that Brandywine
OP has the right to rely thereon and that each such representation and warranty
constitutes a material inducement to Brandywine OP to execute this Agreement and
to close the transaction contemplated hereby and to pay the Purchase Price to
▇▇▇▇▇▇▇▇.
If any of ▇▇▇▇▇▇▇▇' or PPL's representations and warranties made hereunder are
found by Brandywine OP to be incorrect prior to Closing to the extent they
affect the Property or its operation in any material respect or any of the
subject matter thereof, or the ownership of the Assigned Partnership Interests
or the Purchased Stock, Brandywine OP shall inform ▇▇▇▇▇▇▇▇ in writing and
Brandywine OP's sole remedy, except as otherwise expressly provided in clause
(a)(ii) of the first sentence of Section 9.3 hereof or the last sentence of
Section 9.3 hereof, shall be termination of this Agreement on account thereof
and refund of the Deposit. If Brandywine OP elects not to so terminate this
Agreement, any remedy of Brandywine OP for breach of such warranties and
representations made prior to the Closing shall be deemed to be irrevocably
waived. Notwithstanding anything to the contrary contained in this Article, if
▇▇▇▇▇▇▇▇ or PPL breaches any representation or warranty made by ▇▇▇▇▇▇▇▇ or PPL
and if prior to Closing Brandywine OP notifies ▇▇▇▇▇▇▇▇ or PPL that it elects to
terminate this Agreement on account of such breach, ▇▇▇▇▇▇▇▇ may by written
notice to Brandywine OP given or before the Closing Date agree to cure the
breach (which breach must be cured on or before the Closing Date), and
Brandywine OP shall thereupon be obligated to close the transaction and accept
such cure as Brandywine OP's sole remedy for such breach.
The term "to ▇▇▇▇▇▇▇▇' knowledge" or similar phrase shall mean the knowledge of
▇▇▇▇▇▇▇▇' chief executive officer, general counsel, chief financial officer,
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ and the current building engineer, property
manager and leasing agent (collectively, "▇▇▇▇▇▇▇▇' Personnel with Knowledge")
for the Property and such inquiry shall include the direction by ▇▇▇▇▇▇▇▇ to
such persons to review all files in their possession relating to the operation,
ownership, maintenance and management of the Property. ▇▇▇▇▇▇▇▇ covenants that
if prior to Closing ▇▇▇▇▇▇▇▇ obtains actual knowledge that any of the facts
represented and warranted by ▇▇▇▇▇▇▇▇ under this Agreement are or become untrue
or inaccurate in any material respect, it will promptly inform Brandywine OP in
writing of its discovery.
23
▇▇▇▇▇▇▇▇' Personnel with Knowledge shall not have any personal liability under
this Agreement in their respective capacities as officers and/or directors of
▇▇▇▇▇▇▇▇.
ARTICLE IV.
BRANDYWINE OP'S REPRESENTATIONS AND WARRANTIES
To induce ▇▇▇▇▇▇▇▇ and PPL to enter into this Agreement and to assign
the Assigned Partnership Interests and Purchased Stock, Brandywine OP hereby
makes the following representations and warranties, upon each of which
Brandywine OP acknowledges and agrees that ▇▇▇▇▇▇▇▇ and PPL is entitled to rely
and has relied:
4.1 Organization and Power. Brandywine OP is a limited partnership,
duly formed, validly existing and in good standing under the laws of the State
of Delaware, and has all requisite partnership powers and all material
governmental licenses, authorizations, consents and approvals required to carry
on its businesses as now conducted and to enter into and perform its obligations
under this Agreement and any document or instrument required to be executed and
delivered on behalf of Brandywine OP hereunder. Brandywine OP has the financial
capability to acquire the Assigned Partnership Interests and Purchased Stock
pursuant to this Agreement.
4.2 Non-contravention. The execution and delivery of this Agreement and
the performance by Brandywine OP of its obligations hereunder do not and will
not contravene, or constitute a default under, any provisions of Brandywine OP's
Organizational Documents or applicable law or regulation, or any agreement,
judgment, injunction, order, decree or other instrument binding upon Brandywine
OP.
4.3 Litigation. There is no action, suit or proceeding, pending or
known to be threatened, against or affecting Brandywine OP or Brandywine OP in
any court or before any arbitrator or before any Governmental Authority which
(a) in any manner raises any question affecting the validity or enforceability
of this Agreement or any other agreement or instrument to which Brandywine OP is
a party or by which it is bound and that is to be used in connection with, or is
contemplated by, this Agreement, (b) could materially and adversely affect the
business, financial position or results of operations of Brandywine OP, or (c)
could materially and adversely affect the ability of Brandywine OP to perform
its obligations hereunder, or under any document to be delivered pursuant
hereto.
4.4 Bankruptcy. No Act of Bankruptcy has occurred with respect to
Brandywine OP.
4.5 Authorization, Execution and Disclosure. This Agreement has been
duly authorized by all necessary action on the part of Brandywine OP, has been
duly executed and delivered by Brandywine OP, constitutes the valid and binding
agreement of Brandywine OP and is enforceable in accordance with its terms,
subject to the effect of applicable bankruptcy, insolvency, reorganization,
arrangement, moratorium or other similar laws affecting the rights of creditors
generally.
24
ARTICLE V.
CONDITIONS PRECEDENT
5.1 As to Brandywine OP's Obligations. Brandywine OP's obligations
hereunder are subject to the satisfaction of the following conditions precedent:
(a) ▇▇▇▇▇▇▇▇' and PPL's Deliveries. ▇▇▇▇▇▇▇▇ and PPL shall have
delivered to or for the benefit of Brandywine OP, on or before the Closing Date,
all of the documents and other information required of ▇▇▇▇▇▇▇▇ pursuant to
Sections 7.2 and 7.4 hereof.
(b) Representations, Warranties and Covenants; Obligations of
▇▇▇▇▇▇▇▇ and PPL; Certificate. All of ▇▇▇▇▇▇▇▇' and PPL's representations and
warranties made in this Agreement shall be true and correct in all material
respects as of the date hereof and as of the date of Closing as if then made;
▇▇▇▇▇▇▇▇ and PPL shall have performed in all material respects all of their
respective covenants and other obligations under this Agreement; and ▇▇▇▇▇▇▇▇
and PPL shall have executed and delivered to Brandywine OP at Closing a
certificate to the foregoing effect.
(c) Title Insurance. Good and indefeasible fee simple title to the
Land shall be insurable as such by the Title Company, subject only to Permitted
Title Exceptions as determined in accordance with Section 2.4 hereof and
including, without limitation, all applicable deletions of standard exceptions
and endorsements permitted under applicable state law which are customarily
required by institutional investors purchasing property comparable to the
Property.
(d) Condition of Improvements. The Improvements and the Tangible
Personal Property (including but not limited to the mechanical systems,
plumbing, electrical, wiring, fixtures, heating, air conditioning and
ventilating equipment, elevators, boilers, equipment, roofs, structural members
and furnaces) shall be in the same condition at Closing as they are as of the
date hereof, reasonable wear and tear excepted. None of the Partnerships shall
have removed or caused or permitted to be removed any part or portion of the
Real Property or the Tangible Personal Property without Brandywine OP's prior
written consent unless the same is replaced, prior to Closing, with a similar
item of at least equal suitability, quality and value, free and clear of any
lien or security interest.
(e) Utilities. All of the Utilities shall be installed in and
operating at the Property, and service shall be available for the removal of
garbage and other waste from the Property.
(f) Due Diligence Materials. All rent rolls, lists, schedules and
other documents furnished by ▇▇▇▇▇▇▇▇ to Brandywine OP under this Agreement
shall be true and correct in all material respects, except for inaccuracies as
to which Brandywine OP was given written notice by ▇▇▇▇▇▇▇▇ or PPL or Brandywine
OP otherwise had actual knowledge prior to the end of the Study Period.
25
(g) No Additional Proceedings; Tenant Defaults. Except for matters
as to which Brandywine OP was given written notice by ▇▇▇▇▇▇▇▇ or otherwise had
actual knowledge prior to the end of the Study Period, on the Closing Date,
there shall be no (a) litigation pending or threatened, seeking (i) to enjoin
the consummation of the transactions contemplated hereunder, (ii) to recover
title to the Property, or any part thereof or any interest therein, (iii) to
increase substantially ad valorem taxes theretofore assessed against any of the
Property, (iv) to enjoin the violation of any law, rule, regulation, restrictive
covenant or zoning ordinance that may be applicable to the Property, or (v)
claiming defaults or other liability of any of the Partnerships under Leases by
tenants leasing five percent (5%) or more of the rentable square feet of the
Improvements, in the aggregate or (b) monetary default in excess of thirty (30)
days for which a written notice of default has been given to a tenant and which
constitutes an event of default under, and as defined in, the applicable Lease,
or any threatened or reasonably anticipated material default or other material
default by tenants leasing five percent (5%) or more of the rentable square feet
of the Improvements, in the aggregate.
(h) Estoppel Letters. The estoppel letters to be delivered at
Closing pursuant to Section 7.2(h) hereof shall have been obtained and delivered
and shall reflect no facts at material variance with the facts disclosed on the
Rent Roll and records provided to Brandywine OP during the Study Period.
(i) Lender Estoppel Letters. The lender consent and estoppel
letters to be delivered at Closing pursuant to Section 7.2(w) hereof shall have
been obtained and delivered and shall reflect no facts at material variance with
the facts represented and warranted by ▇▇▇▇▇▇▇▇ to Brandywine OP hereunder.
(j) Ground Lessor Estoppel Letters. Estoppel letters from each
Ground Lessor pursuant to Section 7.2(w) hereof.
(k) Assignment of Stock by Shareholders. PPL shall have caused the
Shareholders to have transferred to Brandywine OP (or its designee), for no
payment by Brandywine OP, the eleven (11) shares of outstanding common stock in
each of Southpoint Inc. and Valleybrooke Inc., free and clear of all liens,
claims and security interests.
(l) Estoppel Letter from ▇▇▇▇▇▇ and ▇▇▇▇▇▇. The estoppel letter
from ▇▇▇▇▇▇ and ▇▇▇▇▇▇ pursuant to Section 7.2(s).
(m) Other Estoppel Letters. Estoppel letters described in Section
7.2(t) hereof.
Each of the conditions contained in this Section 5.1 are intended for the
benefit of Brandywine OP and may be waived in whole or in part, by Brandywine
OP, but only by an instrument in writing signed by Brandywine OP.
5.2 As to ▇▇▇▇▇▇▇▇' Obligations. ▇▇▇▇▇▇▇▇' obligations hereunder are
subject to the satisfaction of the following conditions precedent:
(a) Brandywine OP's Deliveries. Brandywine OP shall have delivered
to or for the benefit of ▇▇▇▇▇▇▇▇, on or before the Closing Date, all of the
documents and payments required of Brandywine OP pursuant to Sections 7.3 and
7.4 hereof.
(b) Representations, Warranties and Covenants; Obligations of
Brandywine OP. All of Brandywine OP's representations and warranties made in
this Agreement shall be true and correct in all material respects as of the date
hereof and as of the date of Closing as if then made and Brandywine OP shall
have performed in all material respects all of its covenants and other
obligations under this Agreement.
26
Each of the conditions contained in this Section are intended for the benefit of
▇▇▇▇▇▇▇▇ and may be waived in whole or in part, by ▇▇▇▇▇▇▇▇, but only by an
instrument in writing signed by ▇▇▇▇▇▇▇▇.
ARTICLE VI.
COVENANTS OF ▇▇▇▇▇▇▇▇
To induce Brandywine OP to enter into this Agreement and to acquire the
Assigned Partnership Interests and the Purchased Stock, and to pay the Purchase
Price therefor, ▇▇▇▇▇▇▇▇ and PPL, as applicable, covenant and agree to the
following:
6.1 Operating Agreements. ▇▇▇▇▇▇▇▇ shall not permit, prior to the
Closing, any of the Partnerships or the Corporations to enter into any new
management agreement, maintenance or repair contract, supply contract, lease in
which any of the Partnerships or the Corporations is lessee or other agreements
with respect to the Property which cannot be terminated on or before the Closing
Date, nor shall ▇▇▇▇▇▇▇▇ permit any of the Partnerships or the Corporations to
enter into any agreements modifying the Operating Agreements in any material
respect, unless (a) any such agreement or modification will not bind the
Partnerships, the Corporations, Brandywine OP or the Property after the date of
Closing or (b) ▇▇▇▇▇▇▇▇ has obtained Brandywine OP's prior written consent to
such agreement or modification. ▇▇▇▇▇▇▇▇ agrees to cause the Partnerships and
the Corporations to cancel and terminate effective as of the Closing Date all
property management agreements affecting the Property or any portion thereof and
the Operating Agreements to be terminated pursuant to the last sentence of
Section 3.7 hereof.
6.2 Warranties and Guaranties. ▇▇▇▇▇▇▇▇ shall not permit, prior to the
Closing, any of the Partnerships or the Corporations before or after Closing to
release or modify any Warranties and Guaranties, if any, except with the prior
written consent of Brandywine OP.
6.3 Insurance. Prior to the Closing Date, ▇▇▇▇▇▇▇▇ shall cause the
Partnerships and the Corporations to pay all premiums on, and shall not cancel
or voluntarily allow to expire, any of ▇▇▇▇▇▇▇▇' Insurance Policies unless such
policy is replaced, without any lapse of coverage, by another policy or policies
providing coverage at least as extensive as the policy or policies being
replaced. ▇▇▇▇▇▇▇▇ hereby indemnifies and holds Brandywine OP harmless from and
against all losses, costs, damages and expenses resulting from actions involving
bodily or personal injury or property damage in or about any of the Property
that occurred prior to the Closing Date, regardless of when the claim was made,
but only to the extent coverage under the applicable Insurance Policy or
Policies is not sufficient and paid, and this indemnity shall survive the
Closing Date.
6.4 Operation of Property Prior to Closing. ▇▇▇▇▇▇▇▇ and Brandywine OP
represent, warrant, covenant and agree with Brandywine OP that, between the date
of this Agreement and the date of Closing:
27
(a) Subject to the restrictions contained herein, ▇▇▇▇▇▇▇▇ shall
cause the Partnerships to operate the Property in the same manner in which the
Partnerships operated the Property prior to the execution of this Agreement, so
as to keep the Property in good condition, reasonable wear and tear excepted.
(b) ▇▇▇▇▇▇▇▇ shall cause the Partnerships to maintain their
respective books of account and records in the usual, regular and ordinary
manner, in accordance with sound accounting principles applied on a basis
consistent with the basis used in keeping such books in prior years.
(c) ▇▇▇▇▇▇▇▇ shall cause the Partnerships to maintain in full
force and effect all Insurance Policies.
(d) ▇▇▇▇▇▇▇▇ shall cause the Partnerships to punctually perform
and discharge all obligations and undertakings of the Partnerships under the
Leases and shall not permit a default by the Partnerships to occur thereunder.
(e) ▇▇▇▇▇▇▇▇ shall cause the Partnerships to use and operate the
Property in compliance with Applicable Laws and the requirements of any
mortgage, ground lease, Lease, Operating Agreement and Insurance Policy
affecting the Property.
(f) ▇▇▇▇▇▇▇▇ shall cause to be paid prior to delinquency all ad
valorem and other taxes due and payable with respect to the Property or its
operation.
(g) Without the express prior written consent of Brandywine OP
(which consent shall not be unreasonably withheld and shall be deemed to have
been given if Brandywine OP fails to respond to a written request from ▇▇▇▇▇▇▇▇
for such consent within two (2) business days following Brandywine OP's receipt
of any such request), none of the Partnerships shall: (i) enter into new Leases
of any kind or nature affecting the Property; or (ii) grant a renewal or
extension of any existing Lease, or consent to any assignment, sublease or
expansion of any existing lease or portion thereof which, by the terms of any
such Lease, requires any of the Partnerships' prior consent as a condition to
any such renewal, extension, assignment, sublease or expansion. ▇▇▇▇▇▇▇▇ shall
not permit any of the Partnerships, without the express written consent of
Brandywine OP, in any manner to change, modify, extend, renew or terminate any
Lease except as required by the terms thereof, or waive in any material respect
any of the tenant's obligations under any Lease; provided, Leases with ▇▇▇▇▇▇▇▇'
management company may be terminated on or before the Closing Date without the
prior consent of Brandywine OP. ▇▇▇▇▇▇▇▇ shall not permit any of the
Partnerships to apply all or any part of the security or damage deposit of a
tenant under any Lease to obligations of such tenant, unless such tenant has
vacated its portion of the Property as of the Closing Date. Notwithstanding the
foregoing, Brandywine OP hereby approves the new Leases which have been entered
into by any of the Partnerships and costs associated therewith, as more
particularly described in Schedule 6.4(g) hereto.
(h) ▇▇▇▇▇▇▇▇ shall cause all debts and liabilities for labor,
materials, services and equipment incurred in the construction, operation and
development of the Property, including leasehold improvements, to be promptly
paid.
28
(i) Neither ▇▇▇▇▇▇▇▇, any of the Partnerships, the Corporations
nor ▇▇▇▇▇▇▇▇' managing agent shall (1) make any agreements which shall be
binding upon Brandywine OP, the Partnerships or the Corporations, or (2) reduce,
or cause to be reduced any rents or any other revenues over which ▇▇▇▇▇▇▇▇ has
operational control.
(j) ▇▇▇▇▇▇▇▇ shall promptly deliver to Brandywine OP upon
Brandywine OP's request such reports showing the revenue and expenses of the
Property the Partnerships and the Corporations as ▇▇▇▇▇▇▇▇ customarily keeps or
receives internally for its own use.
(k) Except as required by the terms thereof or hereof, ▇▇▇▇▇▇▇▇
shall not permit any of the Partnerships or the Corporations in any manner to
change, modify, extend, renew or terminate any Operating Agreement which would
be binding on Brandywine OP, the Partnerships or the Corporations without the
express written consent of Brandywine OP.
(l) ▇▇▇▇▇▇▇▇ shall promptly advise Brandywine OP of any
litigation, arbitration or administrative hearing concerning or affecting the
Property, the Partnerships or the Corporations of which ▇▇▇▇▇▇▇▇ obtains actual
knowledge.
(m) ▇▇▇▇▇▇▇▇ shall cause the Partnerships to keep the Existing
Notes current, shall comply with the terms and provisions of the Existing Notes
and the Existing Liens and shall immediately send Brandywine OP copies of all
correspondence received from any of the holders of the Existing Notes. ▇▇▇▇▇▇▇▇
shall not permit any of the Partnerships to modify any provisions of the
Existing Notes or the Existing Liens.
(n) PPL shall cause Southpoint Inc. and Valleybrooke Inc. to
maintain each Ground Lease in full force and effect and shall not permit
Southpoint Inc. or Valleybrooke Inc. to enter into any modification or amendment
to any Ground Lease without the prior written consent of Brandywine OP.
6.5 No Marketing. ▇▇▇▇▇▇▇▇ shall not permit any of the Partnerships to
market the Property for sale or enter into discussions or negotiations with
potential purchasers of the Property unless this Agreement has been terminated
pursuant to its terms.
6.6 Put/Call Agreement. ▇▇▇▇▇▇▇▇ and PPL hereby grant to Brandywine OP
(or its designee) the irrevocable right and option to acquire any or all of the
Retained Interests owned by it, free and clear of all liens and encumbrances, at
any time upon three (3) days prior written notice; provided that in no event may
Brandywine OP (or its designee) exercise its option to acquire less than all of
the Retained Interests owned by ▇▇▇▇▇▇▇▇ in any given Partnership or the common
shares of PPL in each of Southpoint Inc. and Valleybrooke Inc. If Brandywine OP
(or its designee) exercises its purchase option prior to the date that is one
day after the third anniversary of the Closing Date, then the exercise notice
shall contain the agreement of Brandywine OP to pay all Pennsylvania real estate
transfer taxes that may become payable upon the transfer of any or all of such
Retained Interests as a result of the option being exercised prior to such date.
At any time after the date that is one day after the third anniversary of the
Closing Date, ▇▇▇▇▇▇▇▇ may require Brandywine OP (or its designee) to acquire
all and not less than all of the Retained Interests, free and clear of all liens
and encumbrances, at any time upon three (3) days prior written notice. The
aggregate price payable by Brandywine OP (or its designee) for the Retained
Interests (whether due to the exercise by Brandywine OP of the purchase option
29
or to the exercise by ▇▇▇▇▇▇▇▇ of the sale option), which shall be payable in
immediately available funds, shall be equal to eleven percent (11%) of the
amount by which the Purchase Price exceeds the outstanding principal balance of
the Existing Notes on the Closing Date (the "Aggregate Price") minus the
aggregate amount of distributions, if any, made by the Partnerships to ▇▇▇▇▇▇▇▇
on account of the Retained Interests. Set forth on Schedule 6.6 attached hereto
is an allocation of the Aggregate Price among the Retained Interests, which
shall be applicable in the event that Brandywine OP exercises its option to
acquire less than all of the Retained Interests. In addition, ▇▇▇▇▇▇▇▇ hereby
grants to Brandywine OP (or its designee) the irrevocable right and option to
acquire the entire Additional Retained Interest, free and clear of all liens and
encumbrances, at any time after August 25, 2001, and ▇▇▇▇▇▇▇▇ agrees to take
such actions as may be permitted under the Call Option Agreement (Cash) dated as
of August 25, 1998 (the "Call Agreement") among ▇▇▇▇▇▇, ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇ to
provide for the acquisition by Brandywine OP (or its designee) of the entire
Additional Retained Interest. In addition, Brandywine OP hereby agrees to
acquire, upon the request of ▇▇▇▇▇▇▇▇, the entire Additional Retained Interest,
free and clear of all liens and encumbrances, at any time after August 25, 2001.
The price payable by Brandywine OP (or its designee) to ▇▇▇▇▇▇▇▇ on account of
the acquisition by Brandywine OP (or its designee) of the Additional Retained
Interest shall be equal to eleven percent (11%) of the amount by which the
Purchase Price exceeds the outstanding principal balance of the Existing Notes
on the Closing Date and shall be payable by Brandywine OP pursuant to a
promissory note in the form of the Note referred to in Section 1.1 with the
exception of the principal amount thereof (which shall be the foregoing dollar
amount) and the fact that interest shall accrue thereon from the date of
issuance thereof. ▇▇▇▇▇▇▇▇ shall pay to ▇▇▇▇▇▇ and ▇▇▇▇▇▇ all amounts required
to be paid to them under the Call Agreement in connection with the acquisition
of the Additional Retained Interest. The provisions of this Section 6.6 shall
survive the Closing Date.
6.7 Tax Returns. ▇▇▇▇▇▇▇▇ shall deliver to Brandywine OP, for its
review and comment, copies of federal income tax returns for the Partnerships
attributable to the period from January 1, 2001 to the Closing Date prior to the
date such tax returns are filed with the Internal Revenue Service. ▇▇▇▇▇▇▇▇
shall be responsible for the costs to prepare the foregoing tax returns.
6.8 Ground Lessor Estoppels. ▇▇▇▇▇▇▇▇ shall cause each Ground Lessor to
deliver the estoppel certificates described in Section 7.2(w) hereof.
6.9 Leased Property. ▇▇▇▇▇▇▇▇ shall be solely responsible for all
obligations relating to the Leased Property, and neither the Partnerships nor
Brandywine OP shall have any obligations with respect thereto. The provisions of
this Section 6.9 shall survive the Closing.
The foregoing covenants of ▇▇▇▇▇▇▇▇ and PPL are for the benefit of Brandywine OP
or its assignee of its rights under this Agreement.
30
ARTICLE VII.
CLOSING
7.1 Closing. The Closing shall occur within five (5) days after the
conditions precedent set forth in Sections 5.1 and 5.2 have been satisfied. As
more particularly described below, at the Closing the parties hereto will meet
to (i) execute all of the documents required to be delivered in connection with
the transactions contemplated hereby (the "Closing Documents"), (ii) deliver the
same to Escrow Agent, and (iii) take all other action required to be taken in
respect of the transactions contemplated hereby. The Closing will occur at the
offices of the Escrow Agent. At the Closing, the Title Company shall update the
title to the Property and, provided there has been no change in the status of
title as reflected in the Title Commitment and Survey which has not been waived
by Brandywine OP pursuant to Section 2.4(d) hereof, and Escrow Agent shall
release and date, where appropriate, the Closing Documents in accordance with
the joint instructions of ▇▇▇▇▇▇▇▇ and Brandywine OP and shall send, by wire
transfer, all sums, if any, owing to ▇▇▇▇▇▇▇▇ or Brandywine OP hereunder to
▇▇▇▇▇▇▇▇ or Brandywine OP, as applicable. At Closing, the Escrow Agent shall
additionally send, by wire transfer to ▇▇▇▇▇▇▇▇ all sums owing to ▇▇▇▇▇▇▇▇
hereunder. As provided herein, the parties hereto will agree upon adjustments
and prorations to certain items which cannot be exactly determined at the
Closing and will make the appropriate adjustments with respect thereto.
Notwithstanding anything herein to the contrary, if the Closing Date does not
occur by April 30, 2001, and the provisions of Section 9.3 or 9.5 are not
applicable, then either party may terminate this Agreement by notice to the
other party hereto, in which event neither party shall have any further
obligation to the other except for the indemnities and other provisions of this
Agreement which expressly survive a termination of this Agreement, and the
Deposit, less the Independent Consideration, shall be promptly refunded to
Brandywine OP.
7.2 ▇▇▇▇▇▇▇▇' Deliveries. At the Closing, ▇▇▇▇▇▇▇▇ or PPL, as
applicable, shall deliver to Escrow Agent all of the following instruments, each
of which shall have been duly executed and, where applicable, acknowledged
and/or sworn on behalf of ▇▇▇▇▇▇▇▇ or PPL, as applicable, and shall be dated as
of the Closing Date:
(a) The certificate required by Section 5.1(b) hereof.
(b) The Assignment of Partnership Interests.
(c) Intentionally Deleted.
(d) Amendments to each of the certificates of limited partnership
for the Partnerships showing Brandywine OP (or its designee) as the successor to
▇▇▇▇▇▇▇▇ as a general partner in each of the Partnerships and the withdrawal of
▇▇▇▇▇▇▇▇ as the general partner of each of the Partnerships with regard to the
Assigned Partnership Interests only (the "Amendments to Certificates of Limited
Partnership").
(e) Certificates of subsistence for each of the Partnerships,
Valleybrooke Inc. and Southpoint Inc. and certified copies of the articles of
incorporation for the Corporations and certificates of limited partnership of
each of the Partnerships from the Pennsylvania Secretary of State. ▇▇▇▇▇▇▇▇
shall deliver certified copies of the bylaws of the Corporations.
(f) An updated certified Rent Roll dated as of the date preceding
the Closing Date.
(g) Either (i) an estoppel letter in the form of Exhibit C hereto
dated not more than thirty (30) days prior to the Closing Date (a) from each of
the tenants under the Leases covering 7,500 square feet or more, and (b) from
tenants leasing, in the aggregate, at least seventy-five percent (75%) of the
remainder of the Improvements, or (ii) an estoppel letter executed by ▇▇▇▇▇▇▇▇
certifying to the matters specified in Exhibit C hereto for any tenant which
does not execute an estoppel letter. Any estoppel letter provided by ▇▇▇▇▇▇▇▇
for a Lease pursuant to clause (ii) above shall state that ▇▇▇▇▇▇▇▇ shall have
no liability thereunder if ▇▇▇▇▇▇▇▇ subsequently provides to Brandywine OP an
estoppel letter in the form of Exhibit C from the tenant under such Lease.
31
(h) Such agreements, affidavits or other documents as may be
required by the Title Company to issue the Owner's Title Policy subject only to
the Permitted Title Exceptions and to eliminate such standard exceptions and to
issue the endorsements thereto which are customarily required by institutional
investors purchasing property comparable to the Property, including, without
limitation, a non-imputation endorsement.
(i) An updated Title Commitment issued by the Title Company, dated
as of the date and time of Closing, subject only to the Permitted Title
Exceptions.
(j) The FIRPTA Certificates.
(k) All original Warranties and Guaranties in ▇▇▇▇▇▇▇▇' possession
or reasonably available to ▇▇▇▇▇▇▇▇.
(l) To the extent in ▇▇▇▇▇▇▇▇' possession or reasonably available
to ▇▇▇▇▇▇▇▇, a valid, final and unconditional certificate of occupancy for the
Real Property and Improvements, issued by the appropriate Governmental Authority
and, if required by Applicable Laws, transferred to Brandywine OP.
(m) Executed originals of all Leases, leases of Leased Property,
permits and, to the extent in ▇▇▇▇▇▇▇▇' possession or control, Authorizations
transferred or assigned to Brandywine OP at Closing as required hereunder and
any other documents or instruments affecting the Property or the ownership and
operation thereof.
(n) All current real estate and personal property tax bills in
▇▇▇▇▇▇▇▇' possession or under its control.
(o) All books, records, operating reports, appraisal reports,
files and other materials in ▇▇▇▇▇▇▇▇' possession or control which are necessary
in Brandywine OP's reasonable discretion to maintain continuity of operation of
the Property. Brandywine OP covenants to permit ▇▇▇▇▇▇▇▇ to photocopy any of the
matters described in this Subparagraph 7.2(o) for a period of three (3) years
following the Closing Date, which covenant of Brandywine OP shall survive for
such three (3) year period.
(p) A current UCC Report showing no financing statements by any of
the Partnerships as Debtor covering the Property, except in favor of the holders
of the Existing Notes.
(q) All keys to all locks on the Property in the possession of
▇▇▇▇▇▇▇▇, together with an accounting for such keys in the possession of others.
32
(r) Intentionally deleted.
(s) Certified copies of a incumbency certificate and resolutions
authorizing the execution by ▇▇▇▇▇▇▇▇ and PPL of this Agreement and all
documents to be executed by ▇▇▇▇▇▇▇▇ and PPL on the Closing Date.
(t) Estoppel letters from each owners association created pursuant
to restrictive covenants or deed restrictions affecting the Real Property
certifying that (i) the Real Property complies with such restrictive covenants
or deed restrictions, and (ii) no assessments are due and owing with respect to
the Real Property, and estoppel letters from adjoining property owners who are
parties to adjoining landowner agreements binding on any portion of the Real
Property; provided, ▇▇▇▇▇▇▇▇ may execute an estoppel letter certifying to the
foregoing matters for an owners association or property owner that does not
execute any such estoppel letter, which estoppel letter shall continue in effect
unless and until the applicable estoppel letter is subsequently provided from
any such owners association or property owner.
(u) Any other document or instrument reasonably requested by
Brandywine OP in connection with the transactions contemplated hereby.
(v) An estoppel certificate and consent executed by the present
holders of each of the Existing Notes substantially in the form of Exhibit F
attached hereto. Any and all fees and charges in connection with obtaining such
written consent or approval (specifically including, but not limited to, loan
transfer fees) shall be at ▇▇▇▇▇▇▇▇' sole cost and expense.
(w) An estoppel certificate executed by each Ground Lessor in a
form reasonably satisfactory to ▇▇▇▇▇▇▇▇ and Brandywine OP.
(x) Written notice executed by ▇▇▇▇▇▇▇▇ notifying all interested
parties, including, without limitation, all tenants under the Leases, that
Brandywine OP has replaced ▇▇▇▇▇▇▇▇ as general partner of the Partnerships and
directing that all payments, inquiries and the like to the Partnerships be
forwarded to Brandywine OP (as the general partner) at the address to be
provided by Brandywine OP.
(y) The originals of the Assumed Operating Agreements.
7.3 Brandywine OP's Deliveries. At the Closing, Brandywine OP shall
deliver to Escrow Agent the following instruments, each of which shall have been
duly executed and, where applicable, acknowledged and/or sworn on behalf of
Brandywine OP and shall be dated as of the Closing Date:
(a) The Note.
(b) The Assignment of Partnership Interests.
(c) Intentionally Deleted.
(d) The amendments to certificates of limited partnership referred
to in Section 7.2(d) above.
33
(e) Any other document or instrument reasonably requested by
▇▇▇▇▇▇▇▇ or PPL in connection with the transactions contemplated hereby.
7.4 Mutual Deliveries. At the Closing, Brandywine OP and ▇▇▇▇▇▇▇▇ shall
mutually execute and deliver each to the other:
(a) A final closing statement reflecting the adjustments and
prorations required hereunder and the allocation of income and expenses required
hereby.
(b) Such other and further documents, papers and instruments as
may be reasonably required by the parties hereto in connection with the
transactions contemplated hereby or their respective counsel.
7.5 Closing Costs. Except as is explicitly provided in this Agreement,
each party hereto shall pay its own legal fees and expenses. ▇▇▇▇▇▇▇▇ shall pay
for the costs associated with the releases of any deeds of trust, mortgages and
other financing encumbering the Property that ▇▇▇▇▇▇▇▇ is to cause to be
released pursuant to this Agreement and for any costs associated with any
corrective instruments. ▇▇▇▇▇▇▇▇ shall pay all costs for title searches, tax
certificates and all premiums for the issuance of the Title Policy; all costs of
providing the matters described in Sections 2.4(b) and (d) to Brandywine OP; and
one-half (1/2) of any escrow fees or similar charges of the Escrow Agent. PPL
shall pay all costs payable to the Shareholders in connection with the
assignment to Brandywine OP (or its designee) of the shares of common stock in
each of Southpoint Inc. or Valleybrooke Inc. described in Section 5.1(l) hereof.
Brandywine OP shall pay one-half (1/2) of any escrow fees or similar charges of
the Escrow Agent. ▇▇▇▇▇▇▇▇ shall pay all prepayment penalties and other costs
and expenses payable in connection with debt which ▇▇▇▇▇▇▇▇ is required to
prepay on the Closing Date, and ▇▇▇▇▇▇▇▇ shall pay all debt transfer and similar
fees associated with the Existing Notes and the Existing Liens and the premium
for a downdate endorsement to loan policies issued to the holders of the
Existing Notes if such endorsements are required by such holders. ▇▇▇▇▇▇▇▇ shall
pay all assessments levied or pending against the Property as of the Closing
Date. To the extent that state and local transfer taxes or stamps are imposed in
connection with the transactions under this Agreement for any reason whatsoever,
the cost of such taxes or stamps shall be borne one-half by Brandywine OP and
one-half by ▇▇▇▇▇▇▇▇, except that Brandywine OP shall be solely responsible for
such transfer taxes if it elects to exercise its call right under any of the
Put/Call Agreements prior to the date that is three (3) years and one (1) day
following the Closing Date. Brandywine OP shall pay for the premium for the
Title Policy in excess of the sums payable by ▇▇▇▇▇▇▇▇ pursuant to this Section
7.5. All other expenses incurred by ▇▇▇▇▇▇▇▇ or Brandywine OP with respect to
the Closing shall be borne and paid for exclusively by the party incurring same,
without reimbursement, except to the extent otherwise specifically provided
herein.
7.6 Revenue and Expense Allocations. All revenues (including operating
expense escalations) and expenses with respect to the Property, the Corporations
and the Partnerships, and applicable to the period of time before and after
Closing, determined in accordance with sound accounting principles consistently
applied, shall be allocated between ▇▇▇▇▇▇▇▇ and Brandywine OP as provided
herein. ▇▇▇▇▇▇▇▇ shall be entitled to all revenue and shall be responsible for
all expenses for the period of time up to but not including the Closing Date,
and Brandywine OP shall be entitled to all revenue and shall be responsible for
all expenses for the period of time from, after and including the date of
Closing. Such adjustments shall be shown on the closing statements (with such
supporting documentation as the parties hereto may require being attached as
exhibits to the closing statements) and shall increase or decrease (as the case
may be) the Purchase Price payable by the parties hereto. Without limiting the
generality of the foregoing, the following items of revenue and expense shall be
allocated at Closing:
34
(a) Current rents.
(b) Real estate and personal property taxes for the Property for
the current calendar year 2001.
(c) Revenue and expenses under the Assumed Operating Agreements.
(d) Utility charges (including, but not limited to, charges for
water, sewer and electricity).
(e) Municipal or other governmental improvement liens, which shall
be paid by ▇▇▇▇▇▇▇▇ at Closing where the work has physically commenced, and
which shall be assumed by Brandywine OP at Closing where the work has been
authorized, but not physically commenced.
(f) All other revenues (including CAM charges) and expenses of the
Property.
(g) Interest on the Existing Notes.
Brandywine OP shall receive a credit for purposes of calculating closing
prorations for the total of (i) prepaid rents and (ii) unforfeited security
deposits together with interest thereon held by any of the Partnerships under
Leases.
The amount of any escrow accounts held by the holder(s) of the Existing Notes
shall be transferred to Brandywine OP by ▇▇▇▇▇▇▇▇ and paid for by Brandywine OP.
▇▇▇▇▇▇▇▇ shall pay or cause to be paid all real estate taxes and installments
for special assessments (prorated to the Closing Date) for the Property due and
payable in, or deferred with respect to the years prior to, the year in which
the Closing occurs. All installments for special assessments (prorated to the
Closing Date) pending, levied or due and payable on or prior to the Closing Date
shall be paid by ▇▇▇▇▇▇▇▇ on or before the Closing Date. All subdivision and
platting costs and expenses heretofore incurred by ▇▇▇▇▇▇▇▇ or any of the
Partnerships, including, without limitation, all subdivision exactions, fees and
costs and all dedication of land for parks and other public uses or payment of
fees in lieu thereof, shall be paid by ▇▇▇▇▇▇▇▇ on or prior to the Closing Date.
If accurate allocations cannot be made at Closing because current bills are not
obtainable (as, for example, in the case of utility bills and/or real estate or
personal property taxes), the parties shall allocate such revenue or expenses at
Closing on the best available information, subject to adjustment upon receipt of
the final ▇▇▇▇ or other evidence of the applicable revenue or expense. The
obligation to make the adjustment shall survive the closing of the transaction
contemplated by this Agreement. Any revenue received or expense incurred by
▇▇▇▇▇▇▇▇, any of the Partnerships or Brandywine OP with respect to the Property
after the Closing Date shall be promptly allocated in the manner described
herein and the parties shall promptly pay or reimburse any amount due. ▇▇▇▇▇▇▇▇
shall calculate and deliver to Brandywine OP for its approval and its
transmittal to tenants under Leases, reconciliations of operating costs for the
calendar year 2000, and Brandywine OP shall inform the tenants that ▇▇▇▇▇▇▇▇
prepared such reconciliations and can be contacted to discuss any questions
concerning such reconciliations. The proration provisions of this Agreement
shall survive the closing of the transaction contemplated hereby for a period of
eighteen (18) months.
35
7.7 Delinquent Rents. Any rents or other amounts which are delinquent
as of the Closing shall not be adjusted or prorated at Closing, but Brandywine
OP shall make a reasonable attempt to collect such amounts for the benefit of
▇▇▇▇▇▇▇▇ after the Closing; provided, however, that nothing contained herein
shall be construed to require Brandywine OP to institute any lawsuit or other
proceedings to collect such delinquent amounts. In this connection, the first
monies collected by Brandywine OP from tenants or other persons owing delinquent
rents or other amounts shall be applied to Brandywine OP's costs of collection,
then to the current rents or obligations of such person to Brandywine OP, and
the balance, if any, shall be delivered to ▇▇▇▇▇▇▇▇ to the extent of the
delinquency. ▇▇▇▇▇▇▇▇ shall be permitted to bring collection suits against
tenants owing rent to any of the Partnerships for periods prior to the Closing
Date that is more than thirty (30) days in arrears; however, ▇▇▇▇▇▇▇▇ may not
bring any eviction actions against any tenants under any of the Leases.
7.8 Costs Associated with Certain Leasing Activities. Except as
otherwise expressly set forth in this Section 7.8, all refurbishment allowances,
tenant improvement costs and leasing commissions owing or which could become due
and owing with respect to Leases entered into on or before the Closing Date
shall be paid by ▇▇▇▇▇▇▇▇ when due, and ▇▇▇▇▇▇▇▇ shall indemnify and hold
harmless Brandywine OP and the Partnerships for claims brought against the
Property, the Partnerships or Brandywine OP arising therefrom, which indemnity
shall survive the Closing. Notwithstanding the foregoing: (i) Brandywine OP
shall pay to ▇▇▇▇▇▇▇▇ at the Closing an amount equal to the cost of all (x)
leasing commissions paid by ▇▇▇▇▇▇▇▇, prior to the Closing Date, to brokers
other than affiliates of ▇▇▇▇▇▇▇▇ and (y) capital improvement costs incurred and
paid by ▇▇▇▇▇▇▇▇ prior to the Closing Date in completing tenant improvements
pursuant to (in the case of both (x) and (y)) (a) Leases entered into by any of
the Partnerships on or after January 1, 2001 and other Leases, which are
described on Schedule 6.4(g) or which have been approved or deemed approved by
Brandywine OP pursuant to Section 6.4(g); (b) renewals, extensions or expansions
of existing Leases expressly requiring the approval of ▇▇▇▇▇▇▇▇ as a condition
to the exercise of such options which are exercised on or after January 1, 2001,
which either are described on Schedule 6.4(g) or have been approved or deemed
approved by Brandywine OP pursuant to Section 6.4(g); and (c) renewals,
extensions or expansions of existing Leases not requiring the approval of
▇▇▇▇▇▇▇▇ as a condition to the exercise of such options which have been
exercised on or after January 1, 2001; and (ii) Brandywine OP shall be
responsible for refurbishment allowances, tenant improvement costs and leasing
commissions shown in the Rent Roll or contained in Leases delivered pursuant to
Section 2.4(b)(1) hereof that have not previously been paid by ▇▇▇▇▇▇▇▇ but are
payable following the Closing Date under existing Leases on or after January 1,
2001 or which are contained in Leases entered into between January 1, 2001 and
the Closing Date which are described on Schedule 6.4(g) or which have been
approved or deemed approved pursuant to Section 6.4(g) hereof. The provisions of
this Section 7.8 shall survive the Closing Date.
36
ARTICLE VIII.
GENERAL PROVISIONS
8.1 Condemnation. In the event of any actual or threatened taking,
pursuant to the power of eminent domain, of all or any portion of the Real
Property, or any proposed sale in lieu thereof, ▇▇▇▇▇▇▇▇ shall give written
notice thereof to Brandywine OP promptly after ▇▇▇▇▇▇▇▇ learns or receives
notice thereof. If all or any part of the Real Property is, or is to be, so
condemned or sold, Brandywine OP shall have the right to terminate this
Agreement pursuant to Section 9.3 hereof. If Brandywine OP elects not to
terminate this Agreement, all proceeds, awards and other payments arising out of
such condemnation or sale (actual or threatened) shall be retained by the
Partnerships at Closing and there shall be no reduction in the Purchase Price.
▇▇▇▇▇▇▇▇ shall not, and shall not permit the Partnerships or the Corporations
to, settle or compromise any such proceeding without Brandywine OP's written
consent. If Brandywine OP elects to terminate this Agreement by giving ▇▇▇▇▇▇▇▇
written notice thereof prior to the Closing, the Deposit shall be promptly
returned to Brandywine OP and all rights and obligations of ▇▇▇▇▇▇▇▇, PPL and
Brandywine OP hereunder (except those set forth herein which expressly survive a
termination of this Agreement) shall terminate immediately.
8.2 Risk of Loss. The risk of any loss or damage to the Property prior
to the recordation of the Deed shall remain upon ▇▇▇▇▇▇▇▇. If any such loss or
damage occurs prior to Closing which exceeds an amount equal to five percent
(5%) of the Purchase Price, Brandywine OP shall have the right to terminate this
Agreement pursuant to Section 9.3 hereof. If Brandywine OP elects not to
terminate this Agreement pursuant to the immediately preceding sentence or a
loss or damage occurs prior to Closing which does not exceed five percent (5%)
of the Purchase Price, all insurance proceeds and rights to proceeds arising out
of such loss or damage, less the reasonable expenses incurred in collecting such
proceeds and, to the extent payable from insurance proceeds, reasonable expenses
incurred in securing the Property following a casualty, shall be retained by the
Partnerships at Closing, and Brandywine OP shall receive as a credit against the
Purchase Price in the amount of any deductibles under the policies of insurance
covering such loss or damage and there shall be no further reduction in the
Purchase Price; provided, however, ▇▇▇▇▇▇▇▇ shall be entitled to retain rent
loss insurance proceeds received that are attributable to periods prior to the
Closing Date. If Brandywine OP elects to terminate this Agreement pursuant to
this Section 8.2 by giving ▇▇▇▇▇▇▇▇ written notice thereof prior to the Closing,
the Deposit shall be promptly returned to Brandywine OP and all rights and
obligations of ▇▇▇▇▇▇▇▇ and Brandywine OP hereunder (except those set forth
herein which expressly survive a termination of this Agreement) shall terminate
immediately.
8.3 Broker. There is no real estate broker involved in this
transaction. Brandywine OP warrants and represents to ▇▇▇▇▇▇▇▇ that Brandywine
OP has not dealt with any real estate broker in connection with this
transaction, nor has Brandywine OP been introduced to the Property or to
▇▇▇▇▇▇▇▇ by any real estate broker, and Brandywine OP shall indemnify ▇▇▇▇▇▇▇▇
and hold ▇▇▇▇▇▇▇▇ harmless from and against any claims, suits, demands or
liabilities of any kind or nature whatsoever arising on account of the claim of
any other person, firm or corporation to a real estate brokerage commission or a
finder's fee or a financial advisory fee as a result of having dealt with
Brandywine OP, or as a result of having introduced Brandywine OP to ▇▇▇▇▇▇▇▇ or
to the Property. In like manner, ▇▇▇▇▇▇▇▇ warrants and represents to Brandywine
OP that ▇▇▇▇▇▇▇▇ has not dealt with any real estate broker in connection with
this transaction, nor has ▇▇▇▇▇▇▇▇ been introduced to Brandywine OP by any real
estate broker, and ▇▇▇▇▇▇▇▇ shall indemnify Brandywine OP and save and hold
Brandywine OP harmless from and against any claims, suits, demands or
liabilities of any kind or nature whatsoever arising on account of the claim of
any person, firm or corporation to a real estate brokerage commission or a
finder's fee or a financial advisory fee as a result of having dealt with
▇▇▇▇▇▇▇▇ in connection with this transaction. This provision shall survive any
termination of this Agreement and a closing of the transaction contemplated
hereby.
37
ARTICLE IX.
LIABILITY OF BRANDYWINE OP; INDEMNIFICATION BY ▇▇▇▇▇▇▇▇;
DEFAULT; TERMINATION RIGHTS
9.1 Liability of Brandywine OP. Except for obligations expressly
assumed or agreed to be assumed by Brandywine OP hereunder, Brandywine OP is not
assuming any obligations of ▇▇▇▇▇▇▇▇, the Partnerships or the Corporations or
any liability for claims arising out of any act, omission or occurrence which
occurs, accrues or arises prior to the Closing Date (except to the extent such
assumption occurs as a matter of law), and ▇▇▇▇▇▇▇▇ hereby indemnifies and holds
Brandywine OP, the Partnerships and the Corporations harmless from and against
any and all claims, costs, penalties, damages, losses, liabilities and expenses
(including reasonable attorneys' fees) that may at any time be incurred by
Brandywine OP, the Partnerships and the Corporations as a result of (a)
obligations of ▇▇▇▇▇▇▇▇ (i) not expressly assumed or agreed to be assumed by
Brandywine OP hereunder or (ii) which Brandywine OP is assuming as a matter of
law, but not otherwise expressly assuming hereunder or under any document to be
executed on the Closing Date that relate solely to any act, omission or
occurrence which occurs, accrues or arises prior to the Closing Date, or (b)
acts, omissions or occurrences which occur, accrue or arise prior to the Closing
Date. Brandywine OP hereby indemnifies and holds ▇▇▇▇▇▇▇▇ harmless from and
against any and all claims, costs, penalties, damages, losses, liabilities and
expenses (including reasonable attorneys' fees) that may at any time be incurred
by ▇▇▇▇▇▇▇▇ as a result of acts, omissions or occurrences relating to the
Property, the Partnerships and the Corporation arising and accruing from and
after the Closing Date. The provisions of this Section shall survive the Closing
of the transaction contemplated hereby.
9.2 Indemnification by ▇▇▇▇▇▇▇▇. ▇▇▇▇▇▇▇▇ hereby indemnifies and holds
Brandywine OP and Brandywine OP's officers, partners, directors, shareholders,
agents and employees (collectively, the "Indemnified Parties") harmless from and
against any and all claims, costs, penalties, damages, losses, liabilities and
expenses (including reasonable attorneys' fees) that may at any time be incurred
by Brandywine OP, whether incurred before or after Closing, as a result of any
inaccuracy or breach by ▇▇▇▇▇▇▇▇ or PPL of any of its representations,
warranties, covenants or obligations set forth herein or in any other document
delivered by ▇▇▇▇▇▇▇▇ or PPL pursuant hereto except for any breach or inaccuracy
of any representation or warranty as to which ▇▇▇▇▇▇▇▇ has given Brandywine OP
written notice prior to Closing of the untruth or inaccuracy or of which
Brandywine OP otherwise had actual knowledge prior to the Closing and
nevertheless elected to consummate the Closing; provided, however, the foregoing
knowledge limitation on ▇▇▇▇▇▇▇▇' indemnity shall not limit Brandywine OP's
remedy described in Section 9.3(a)(ii) hereof or in the last sentence of Section
9.3 hereof. The provisions of this Section shall survive the Closing of the
transaction contemplated hereby as provided in Section 10.11 hereof, and shall,
following any assignment of this Agreement by Brandywine OP, continue in favor
of the Indemnified Parties of the original Brandywine OP hereunder as well the
Indemnified Parties of any assignee during said survival period.
38
9.3 Default by ▇▇▇▇▇▇▇▇/Failure of Conditions Precedent. If any
condition set forth herein for the benefit of Brandywine OP cannot or will not
be satisfied prior to Closing, or upon the occurrence of any other event that
would entitle Brandywine OP to terminate this Agreement and its obligations
hereunder, and if ▇▇▇▇▇▇▇▇ fails to cure any such matter or satisfy that
condition within ten (10) business days after notice thereof from Brandywine OP
(or such other time period as may be explicitly provided for herein), Brandywine
OP, at its option, may elect (a) to terminate this Agreement, in which event (i)
the Deposit, less the Independent Consideration, shall be promptly returned to
Brandywine OP, (ii) if the condition which has not been satisfied is a breach of
a representation, warranty or covenant known by ▇▇▇▇▇▇▇▇ to have been inaccurate
or misleading when made, then ▇▇▇▇▇▇▇▇ shall be obligated upon demand to
reimburse Brandywine OP for Brandywine OP's actual out-of-pocket inspection,
financing and other costs related to Brandywine OP's entering into this
Agreement, inspecting the Property and preparing for a Closing of the
transaction contemplated hereby, including, without limitation, Brandywine OP's
attorneys' fees incurred in connection with the preparation, negotiation and
execution of this Agreement and in connection with Brandywine OP's due diligence
review, audits and preparation for a Closing up to an aggregate amount equal to
$100,000.00; provided, the foregoing shall not limit or include the sums which
may be payable by ▇▇▇▇▇▇▇▇ pursuant to Section 9.6 below, and (iii) all other
rights and obligations of ▇▇▇▇▇▇▇▇, PPL and Brandywine OP hereunder (except
those set forth herein which expressly survive a termination of this Agreement)
shall terminate immediately; (b) elect to proceed to Closing; or (c) seek to
enforce ▇▇▇▇▇▇▇▇' and PPL's obligations hereunder by specific performance. If
Brandywine OP elects to proceed to Closing and there is either a
misrepresentation or breach of a warranty by ▇▇▇▇▇▇▇▇ or PPL (other than a
breach of a representation or warranty of which Brandywine OP had actual
knowledge prior to the Closing and nevertheless elected to consummate the
Closing) or the breach of a covenant by ▇▇▇▇▇▇▇▇ or PPL or a failure by ▇▇▇▇▇▇▇▇
or PPL to perform its respective obligations hereunder first discovered by
Brandywine OP after the Closing Date, Brandywine OP shall retain all remedies
accruing as a result thereof, including, but not limited to, the remedy of
specific performance of ▇▇▇▇▇▇▇▇' or PPL's covenants and obligations and the
remedy of the recovery of all reasonable damages resulting from ▇▇▇▇▇▇▇▇' or
PPL's breach of warranty or covenant. Notwithstanding the foregoing, if the
condition which has not been satisfied is a breach of one or more
representations and warranties by ▇▇▇▇▇▇▇▇ or PPL in this Agreement and/or in
any of the other documents executed of even date herewith between ▇▇▇▇▇▇▇▇ and
Brandywine OP or any of their respective affiliates (the "Other Documents"),
Brandywine OP has elected to proceed to Closing, and Brandywine OP can
reasonably quantify the damage resulting from such breach of representations and
warranties with reasonable support for such calculation of damages, then (i) if
the aggregate damage is no greater than $150,000.00 (the "First Threshold
Level"), then neither ▇▇▇▇▇▇▇▇ nor PPL shall have any obligation to either cure
such breaches of representations and warranties or pay Brandywine OP at Closing
in the event Brandywine OP elects to close the transaction described in this
Agreement and under the Other Documents; (ii) if such aggregate damage is
greater than the First Threshold Level but less than $1,500,000.00, then
▇▇▇▇▇▇▇▇ must prior to the Closing Date either cure such breaches of
representations and warranties to the reasonable satisfaction of Brandywine OP
or ▇▇▇▇▇▇▇▇ shall pay Brandywine OP at the Closing an amount equal to the actual
damages as reasonably determined by Brandywine OP as aforesaid, less the First
Threshold Level; and (iii) in the event the aggregate damages resulting from
such breaches of representations and warranties would exceed $1,500,000.00, then
Brandywine OP may either (A) terminate this Agreement and the Other Documents,
in which event the Deposit (less the Independent Consideration) shall be
promptly refunded, or (B) Brandywine OP may close the transaction as described
in this Agreement and the Other Documents and Brandywine OP shall be paid by
▇▇▇▇▇▇▇▇ the amount of $1,350,000.00, which amount shall be the maximum
aggregate amount payable by ▇▇▇▇▇▇▇▇ and PPL under the last sentence of Section
9.3 of this Agreement and all of the Other Documents.
39
9.4 Indemnification by Brandywine OP. Brandywine OP hereby indemnifies
and holds ▇▇▇▇▇▇▇▇ harmless from and against any and all claims, costs,
penalties, damages, losses, liabilities and expenses (including reasonable
attorneys' fees) that may at any time be incurred by ▇▇▇▇▇▇▇▇, whether incurred
before or after Closing, as a result of any inaccuracy or breach by Brandywine
OP of any of its representations, warranties, covenants or obligations set forth
herein or in any other document delivered by Brandywine OP pursuant hereto
except for any breach or inaccuracy of any representation or warranty as to
which Brandywine OP has given ▇▇▇▇▇▇▇▇ written notice prior to Closing of the
untruth or inaccuracy or of which ▇▇▇▇▇▇▇▇ otherwise had actual knowledge prior
to the Closing and nevertheless elected to consummate the Closing. The
provisions of this Section shall survive the Closing of the transaction
contemplated hereby for the period described in Section 10.11 hereof.
9.5 Default by Brandywine OP/Failure of Conditions Precedent. If any
condition set forth herein for the benefit of ▇▇▇▇▇▇▇▇ (other than a default by
Brandywine OP) cannot or will not be satisfied prior to Closing, and if
Brandywine OP fails to satisfy that condition within ten (10) business days
after notice thereof from ▇▇▇▇▇▇▇▇ (or such other time period as may be
explicitly provided for herein), ▇▇▇▇▇▇▇▇ may, at its option, elect either (a)
to terminate this Agreement in which event the Deposit shall be promptly
returned to Brandywine OP and the parties hereto shall be released from all
further obligations hereunder except those which expressly survive a termination
of this Agreement, or (b) to waive its right to terminate, and instead, to
proceed to Closing. If, prior to Closing, Brandywine OP defaults in performing
any of its obligations under this Agreement (including its obligation to
purchase the Property), and Brandywine OP fails to cure any such default within
ten (10) business days after notice thereof from ▇▇▇▇▇▇▇▇, then ▇▇▇▇▇▇▇▇' sole
remedy for such default shall be either (i) to terminate this Agreement and
retain the Deposit or (ii) to pursue the remedy of specific performance
compelling Brandywine OP to perform its obligations pursuant to the provisions
of this Agreement.
9.6 Costs and Attorneys' Fees. In the event of any litigation or
dispute between the parties arising out of or in any way connected with this
Agreement, resulting in any litigation, then the prevailing party in such
litigation shall be entitled to recover its costs of prosecuting and/or
defending same, including, without limitation, reasonable attorneys' fees at
trial and all appellate levels. The provisions of this Section shall survive the
Closing of the transaction contemplated hereby.
9.7 Limitation of Liability. Notwithstanding anything herein to the
contrary, except in the case of fraud by either party, the liability of each
party hereto resulting from the breach or default by either party shall be
limited to actual damages incurred by the injured party and except in the case
of fraud by either party, the parties hereto hereby waive their rights to
recover from the other party consequential, punitive, exemplary, and speculative
damages. The provisions of this Section 9.7 shall survive the Closing of the
transaction contemplated hereby.
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ARTICLE X.
MISCELLANEOUS PROVISIONS
10.1 Completeness; Modification. This Agreement constitutes the entire
agreement between the parties hereto with respect to the transactions
contemplated hereby and supersede all prior discussions, understandings,
agreements and negotiations between the parties hereto. This Agreement may be
modified only by a written instrument duly executed by the parties hereto. Any
waiver of rights under this Agreement shall be effective only if in writing and
duly executed and delivered by the party against whom such waiver is asserted.
10.2 Assignments. Brandywine OP may assign its rights hereunder without
the consent of ▇▇▇▇▇▇▇▇ to any affiliate of Brandywine OP, in which event,
except as otherwise specified herein, such assignee shall be the "Brandywine OP"
hereunder; however, any such assignment shall not relieve the original
Brandywine OP of its obligations under this Agreement, including specifically
the obligation to close the purchase of the Property in accordance with this
Agreement as though there were no assignment.
10.3 Successors and Assigns. This Agreement shall bind and inure to the
benefit of the parties hereto and their respective successors and assigns.
10.4 Days. If any action is required to be performed, or if any notice,
consent or other communication is given, on a day that is a Saturday or Sunday
or a legal holiday in the jurisdiction in which the action is required to be
performed or in which is located the intended recipient of such notice, consent
or other communication, such performance shall be deemed to be required, and
such notice, consent or other communication shall be deemed to be given, on the
first business day following such Saturday, Sunday or legal holiday. Unless
otherwise specified herein, all references herein to a "day" or "days" shall
refer to calendar days and not business days.
10.5 Governing Law. This Agreement and all documents referred to herein
shall be governed by and construed and interpreted in accordance with the laws
of the State of Delaware.
10.6 Counterparts. To facilitate execution, this Agreement may be
executed in as many counterparts as may be required. It shall not be necessary
that the signature on behalf of both parties hereto appear on each counterpart
hereof. All counterparts hereof shall collectively constitute a single
agreement.
10.7 Severability. If any term, covenant or condition of this
Agreement, or the application thereof to any person or circumstance, shall to
any extent be invalid or unenforceable, the remainder of this Agreement, or the
application of such term, covenant or condition to other persons or
circumstances, shall not be affected thereby, and each term, covenant or
condition of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.
41
10.8 Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be delivered by hand, transmitted by
facsimile transmission, sent prepaid by Federal Express (or a comparable
overnight delivery service) or sent by the United States mail, certified,
postage prepaid, return receipt requested, at the addresses and with such copies
as designated below. Any notice, request, demand or other communication
delivered or sent in the manner aforesaid shall be deemed given or made (as the
case may be) when actually delivered to the intended recipient.
If to Brandywine OP: Brandywine Realty Trust
▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, General Counsel
Fax No.: ▇▇▇-▇▇▇-▇▇▇▇
If to ▇▇▇▇▇▇▇▇
and/or PPL: ▇▇▇▇▇▇▇▇ Properties Acquisition Partners, L.P.
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attn.: J. ▇▇▇▇▇ ▇▇▇▇▇▇▇, General Counsel
Fax No.: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to: Akin, Gump, Strauss, ▇▇▇▇▇ & ▇▇▇▇, L.L.P.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attn.: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, P.C.
Fax No.: (▇▇▇) ▇▇▇-▇▇▇▇
If to Escrow Agent: Chicago Title Insurance Company
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attn.: ▇▇▇▇▇ ▇▇▇▇▇▇
Fax No.: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address as the intended recipient may have specified in a
notice to the other party. Any party hereto may change its address or designate
different or other persons or entities to receive copies by notifying the other
party and Escrow Agent in a manner described in this Section.
10.9 Escrow Agent. Escrow Agent referred to in the definition thereof
contained in Section 1.1 hereof has agreed to act as such for the convenience of
the parties without fee or other charges for such services as Escrow Agent.
Escrow Agent shall not be liable: (a) to any of the parties for any act or
omission to act except for its own willful misconduct; (b) for any legal effect,
insufficiency, or undesirability of any instrument deposited with or delivered
by Escrow Agent or exchanged by the parties hereunder, whether or not Escrow
Agent prepared such instrument; (c) for any loss or impairment of funds that
have been deposited in escrow while those funds are in the course of collection,
or while those funds are on deposit in a financial institution, if such loss or
impairment results from the failure, insolvency or suspension of a financial
institution; (d) for the expiration of any time limit or other consequence of
delay, unless a properly executed written instruction, accepted by Escrow Agent,
has instructed Escrow Agent to comply with said time limit; or (e) for the
default, error, action or omission of either party to the escrow. Escrow Agent,
in its capacity as escrow agent, shall be entitled to rely on any document or
42
paper received by it, believed by such Escrow Agent, in good faith, to be bona
fide and genuine. In the event of any dispute as to the disposition of the
Deposit or any other monies held in escrow, or of any documents held in escrow,
Escrow Agent may, if such Escrow Agent so elects, interplead the matter by
filing an interpleader action in a court of general jurisdiction in the county
or circuit where the Real Property is located (to the jurisdiction of which both
parties do hereby consent), and pay into the registry of the court the Deposit,
or deposit any such documents with respect to which there is a dispute in the
Registry of such court, whereupon such Escrow Agent shall be relieved and
released from any further liability as Escrow Agent hereunder. Escrow Agent
shall not be liable for Escrow Agent's compliance with any legal process,
subpoena, writ, order, judgment and decree of any court, whether issued with or
without jurisdiction, and whether or not subsequently vacated, modified, set
aside or reversed.
10.10 Incorporation by Reference. All of the exhibits attached hereto
are by this reference incorporated herein and made a part hereof.
10.11 Survival. All of the representations, warranties, covenants and
agreements of ▇▇▇▇▇▇▇▇, PPL and Brandywine OP made in, or pursuant to, this
Agreement shall survive Closing through the period ending twelve (12) months
thereafter and shall not merge into any document or instrument executed and
delivered in connection herewith; provided, however, the covenants in Sections
2.4(b), 6.6 and 7.6 shall survive for the time periods described in such
Sections, and the indemnities in this Agreement and the covenants in Sections
6.9 and 7.8 shall have an unlimited survival period. In the event a claim for
indemnity is asserted in good faith prior to the expiration of the applicable
survival period, the claim may be asserted and the indemnity shall continue
notwithstanding the expiration of the survival period.
10.12 Further Assurances. ▇▇▇▇▇▇▇▇ and Brandywine OP each covenant and
agree to sign, execute and deliver, or cause to be signed, executed and
delivered, and to do or make, or cause to be done or made, upon the written
request of the other party, any and all agreements, instruments, papers, deeds,
acts or things, supplemental, confirmatory or otherwise, as may be reasonably
required by either party hereto for the purpose of or in connection with
consummating the transactions described herein. ▇▇▇▇▇▇▇▇ agrees to promptly
correct any defect, error or omission which may be discovered in the contents of
this Agreement or in any of the Exhibits or Schedules hereto.
10.13 No Partnership. This Agreement does not and shall not be
construed to create a partnership, joint venture or any other relationship
between the parties hereto except the relationship of ▇▇▇▇▇▇▇▇ and Brandywine OP
specifically established hereby.
10.14 Time of Essence. Time is of the essence with respect to every
provision hereof.
43
10.15 Signatory Exculpation. The signatory(ies) for ▇▇▇▇▇▇▇▇, PPL and
Brandywine OP are executing this Agreement in his/their capacity as
representative of ▇▇▇▇▇▇▇▇, PPL and Brandywine OP, respectively, and not
individually and, therefore, shall have no personal or individual liability of
any kind in connection with this Agreement and the transactions contemplated by
it. No recourse shall be had for any obligation of ▇▇▇▇▇▇▇▇, PPL or Brandywine
OP under this Agreement or under any document executed in connection herewith or
pursuant hereto, or for any claim based thereon or otherwise in respect thereof,
against any past, present or future trustee, shareholder, officer, partner or
employee of Brandywine Realty Trust, ▇▇▇▇▇▇▇▇ Properties Trust, ▇▇▇▇▇▇▇▇, PPL or
Brandywine OP, whether by virtue of any statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being
expressly waived and released by the parties hereto and all parties claiming by,
through or under them.
10.16 Rules of Construction. The following rules shall apply to the
construction and interpretation of this Agreement:
(a) Singular words shall connote the plural number as well as the
singular and vice versa, and the masculine shall include the feminine and the
neuter.
(b) All references herein to particular articles, sections,
subsections, clauses or exhibits are references to articles, sections,
subsections, clauses or exhibits of this Agreement.
(c) The table of contents and headings contained herein are solely
for convenience of reference and shall not constitute a part of this Agreement
nor shall they affect its meaning, construction or effect.
(d) Each party hereto and its counsel have reviewed and revised
(or requested revisions of) this Agreement and have participated in the
preparation of this Agreement, and therefore any usual rules of construction
requiring that ambiguities are to be resolved against a particular party shall
not be applicable in the construction and interpretation of this Agreement or
any exhibits hereto.
(e) As used herein, the term or phrases "Effective Date," "date of
this Agreement" or "date hereof" shall mean the first date Escrow Agent is in
receipt of this Agreement executed by ▇▇▇▇▇▇▇▇ and Brandywine OP.
10.17 SEC Reporting (8-K) Requirements. For the period of time
commencing on the date hereof and continuing through the second anniversary of
the Closing Date, and without limitation of other document production otherwise
required of ▇▇▇▇▇▇▇▇ hereunder, ▇▇▇▇▇▇▇▇ shall, from time to time, upon
reasonable advance written notice from Brandywine OP, provide Brandywine OP and
its representatives, with access to all financial and other information
pertaining to the period of the respective Partnership's ownership and operation
of the Property, which information is relevant and reasonably necessary, in the
opinion of outside, third party accountants (the "Accountants") for Brandywine
OP, to enable Brandywine OP and its Accountants to prepare financial statements
in compliance with any or all of (a) Rule 3-05 or 3-14 of Regulation S-X of the
Securities and Exchange Commission (the "Commission"), as applicable; (b) any
other rule issued by the Commission and applicable to Brandywine OP or
Brandywine Realty Trust ("Brandywine"); and (c) any registration statement,
report or disclosure statement filed with the Commission by Brandywine; and a
representation letter, signed by the individual(s) responsible for ▇▇▇▇▇▇▇▇'
financial reporting, as prescribed by generally accepted auditing standards
promulgated by the Auditing Standards Division of the American Institute of
Certified Public Accountants, which representation letter may be required by the
Accountants in order to render an opinion concerning Brandywine OP's or
Brandywine's financial statements.
44
IN WITNESS WHEREOF, ▇▇▇▇▇▇▇▇ and Brandywine OP have caused this
Agreement to be executed in their names by their respective duly authorized
representatives.
BRANDYWINE OP:
BRANDYWINE OPERATING PARTNERSHIP, L.P., a
Delaware limited partnership
By: Brandywine Realty Trust, its general partner
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------
Title: President and Chief Executive Officer
Date of Execution: March 14, 2001
▇▇▇▇▇▇▇▇:
▇▇▇▇▇▇▇▇ PROPERTIES ACQUISITION PARTNERS, L.P., a
Delaware limited partnership
By: ▇▇▇▇▇▇▇▇ Properties I, Inc., a Delaware
corporation, its general partner
By: /s/ ▇▇▇▇▇▇ ▇. August
--------------------------------------
Title: President and Chief Executive Officer
Date of Execution: March 14, 2001
PPL:
▇▇▇▇▇▇▇▇ PROPERTIES LIMITED, INC., a Delaware
corporation
By: /s/ ▇▇▇▇▇▇ ▇. August
--------------------------------------
Title: President and Chief Executive Officer
Date of Execution: March 14, 2001
45
RECEIPT OF ESCROW AGENT
Chicago Title Insurance Company, as Escrow Agent, acknowledges receipt
of the sum of $100,050.00 by check or by wire transfer, from Brandywine OP as
described in Section 2.3 of the foregoing Agreement of Purchase and Sale, said
check or wire transfer to be held pursuant to the terms and provisions of said
Agreement.
DATED this _____ day of __________, 2001.
CHICAGO TITLE INSURANCE COMPANY
By:___________________________________
Name:_________________________________
Title:________________________________
46
