EXHIBIT 10.24
AGREEMENT FOR SALE
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THIS AGREEMENT FOR SALE ("Agreement") is dated as of August 28, 2001 (the
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"Effective Date"), by and between KPT PROPERTIES, L.P., a Delaware limited
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partnership ("Seller") and XXXXX XXXXXXXX, d/b/a CUMBERLAND FINANCIAL SERVICES,
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a sole proprietorship ("Buyer").
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IN CONSIDERATION of the respective agreements hereinafter set forth,
Seller and Buyer agree as follows:
1. Property Included in Sale. Seller hereby agrees to sell and convey to
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Buyer, and Buyer hereby agrees to purchase from Seller, subject to the terms and
conditions set forth herein, all of Seller's right, title and interest in and to
the following:
(a) That certain land containing approximately 33.306 acres, located
in Nashville, Davidson County, Tennessee, more particularly described or shown
on Exhibit A-1 attached hereto, and all rights, privileges and easements
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appurtenant thereto (collectively, the "Land").
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(b) All improvements on the Land, including, without limitation, the
one story shopping center containing approximately 285,808 square feet, commonly
known as Factory Stores of America Factory Outlet Center (collectively, the
"Improvements"). The Land and the Improvements are sometimes collectively
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referred to as the "Real Property".
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(c) All equipment, machinery, furniture, furnishings, supplies and
other tangible personal property owned by Seller, and Seller's interests in any
such property leased by Seller, now or hereafter located on or used exclusively
in connection with the Real Property, more particularly described on Exhibit A-2
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attached hereto (collectively, the "Tangible Personal Property").
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(d) To the extent assignable, all intangible personal property owned
by Seller, if any, and related to the Real Property, including, without
limitation: all trade names and trade marks associated with the Real Property,
including Seller's rights and interests, if any, in the name "Factory Stores of
America Factory Outlet Center"; any warranties; contract rights related to the
operation, ownership or management of the Real Property (but only to the extent
Seller's obligations thereunder are expressly assumed by Buyer pursuant to this
Agreement) (collectively, the "Intangible Property").
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All of the items referred to in Sections 1(a) through (d) above are
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hereinafter collectively referred to as the "Property."
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2. Purchase Price. The purchase price for the Property is Five Million Six
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Hundred Thousand Dollars ($5,600,000) (the "Purchase Price"), subject to the
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credits, adjustments and prorations provided for in this Agreement.
3. Deposit.
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(a) Within five (5) days of the execution and delivery of this
Agreement by Buyer, Buyer shall deliver to Old Republic National Title Insurance
Company, 000 Xxxxxx Xxxxxx, Xxxxx, Xxxxx 000, Xxxxxxxxx, Xxxxxxxxx 00000 (the
"Title Company") in escrow the sum of One Hundred Thousand Dollars ($100,000)
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(the "Deposit"). The Deposit shall be held and released by the Title Company in
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accordance with the provisions of this Agreement and the escrow provisions
attached as Exhibit B. The Title Company shall designate, by written notice to
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Buyer and Seller, an agent in the locality of the Property to serve as custodian
of all documents to be delivered into escrow pursuant to this Agreement and to
handle the recordation of all documents to be admitted to record.
(b) Prior to the expiration of the Review Period described in
Section 4 below, Buyer shall deliver to the Title Company the additional sum of
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One Hundred Thousand Dollars ($100,000) (the "Additional Deposit"). The
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Additional Deposit shall upon delivery be considered a portion of and included
within the Deposit.
(c) All sums constituting the Deposit shall be held in an
interest-bearing account or in investments approved by Seller and Buyer and
interest accruing thereon shall be for the account of Buyer. All interest earned
on the Deposit shall be considered a portion of the Deposit. In the event the
sale of the Property as contemplated hereunder is consummated, the Deposit shall
be applied to the Purchase Price at Closing (as hereinafter defined) in
accordance with the provisions of this Agreement. In the event this Agreement is
terminated by either party or the Closing does not otherwise take place, the
disposition of the Deposit shall be governed by the applicable provisions of
this Agreement and the escrow provisions attached as Exhibit B.
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4. Review Period. During the period commencing on the Effective Date and
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ending September 30, 2001 (the "Review Period"), Buyer shall have the right to
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examine, inspect and investigate the Property at its sole risk, cost and
expense. Buyer's investigations may include, without limitation, the following:
(a) Review and approval of title to the Property. Buyer shall,
within thirty (30) days after the Effective Date, obtain at Buyer's expense:
(i) a title insurance commitment for the Real Property (the
"Commitment"), issued by the Title Company, accompanied by copies of all
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documents referred to in the Commitment. The Commitment shall evidence the Title
Company's agreement to issue an Owner's Policy of Title Insurance (the "Title
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Policy"), in the full amount of the Purchase Price, insuring fee simple title to
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the Real Property vested in Buyer, subject only to the following exceptions (the
"Permitted Exceptions"): (i) matters shown in Seller's title insurance policy
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(excluding any mortgages, deeds of trust, assignments of leases or other
documents securing Seller's financing), (ii) items which would be disclosed by a
current survey or inspection of the Property, (iii) other items constituting
easements, restrictions or other exceptions for the benefit of the Property
and/or adjacent parcels which do not unreasonably interfere with the Property as
currently operated, and (iv) any litigation, action, suit, or other proceeding,
judicial or administrative, by any person or any governmental authority, against
Seller or arising in connection with the Property or any other lien intervening
between the effective date of the Commitment and the date of Closing (the
"Intervening Claims"), for which Buyer has agreed to waive any title objections.
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Seller shall not be obligated to cure any such Intervening Claims by the Closing
Date. If Seller elects not to cure such claims, then Buyer shall either (i)
terminate this Agreement by written notice to Seller and the Deposit shall be
refunded to Buyer, or (ii) waive such objections, in which event the Closing
shall occur and the Buyer shall accept title to the Property subject to such
Intervening Claims.
(ii) an ALTA survey of the Real Property by a licensed
surveyor or civil engineer, acceptable to, and certified to, Buyer and in
sufficient detail to provide the basis for the Title Policy without boundary,
encroachment or survey exceptions (the "Survey").
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(b) Review and approval of all operating statements and other
financial records and reports relating to the operation of the Property as Buyer
may reasonably request (collectively, the "Reports").
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(c) Entry upon the Property to make and perform physical and other
non-invasive inspections and investigations of the Property. Buyer shall be
permitted to enter the Property at reasonable times during normal business hours
from time to time during the Review Period following not
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less than one (1) business day's prior written notice to conduct its inspections
and investigations. Buyer agrees not to unreasonably interfere with the
operations of Seller or any tenants of Seller. Buyer agrees to indemnify and
hold Seller harmless against any claims for bodily injury, property damage and
mechanics' liens, and Seller's attorneys' fees arising out of any actions of
Buyer or its agents or representatives on the Property in the course of such
activities. If any inspection or test disturbs the Property, Buyer shall restore
the Property to substantially the same condition as existed prior to any such
inspection or test. At Seller's request, Buyer shall provide Seller with
evidence of insurance reasonably acceptable to Seller in an amount not less than
$1,000,000 per occurrence, naming Seller as an additional insured, to insure
against Buyer's activities under this paragraph.
(d) Identify and confirm the availability from all applicable
private and governmental authorities of all zoning, platting, site plan, and
other applicable approvals, permits, licenses and easements.
(e) Review and determine the existence, availability and sufficiency
of connections to electricity, gas, telephone, cable, sewer, water, storm drain
facilities and all other utilities to service the Property.
(f) Review and approval of all management, service, supply,
equipment rental and other contracts, leases, and other obligations relating to
the operation of the Property (collectively, the "Contracts").
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Seller shall, within five (5) business days following the Effective Date,
deliver to Buyer copies of Seller's existing title insurance policy, survey,
latest property tax bills, environmental reports prepared for Seller, and
operating statements and financial statements of the Property for the 24 months
preceding this Agreement and year-to-date for the current year, if any, in
Seller's possession which relate to the Property, and copies of all Leases.
Originals or copies of all Contracts and Reports shall be made available to
Buyer at the Property or at Seller's principal place of business, as applicable,
upon reasonably prior notice during normal business hours. Except as expressly
set forth in Section 6 below, Seller makes no representations or warranties,
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express or implied, regarding the adequacy, accuracy, truth, completeness, or
content of any document, instrument, agreement, report, correspondence, or other
information, written or oral, concerning the Property delivered or made
available to Buyer by Seller or any person acting on Seller's behalf.
Prior to September 30, 2001, Buyer shall, by written notice to Seller, (A)
accept or waive any objections to its reviews and inspections, in which event,
the parties shall proceed to Closing in accordance with the terms of this
Agreement (a "Continuation Notice"), (B) advise Seller in writing of its
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objections, and request that Seller remedy such objections prior to the Closing
Date (an "Objection Notice"), or (C) elect to terminate this Agreement (a
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"Termination Notice"). Failure by Buyer to deliver an Objection Notice or a
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Continuation Notice prior to the expiration of the Review Period shall be
considered for all purposes under this Agreement to constitute Buyer's election
to accept or waive any objections and proceed to Closing, subject to the
provisions of Section 5 hereof. In the event Buyer delivers an Objection Notice,
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Seller shall, by written notice to Buyer within five (5) business days following
delivery of the Objection Notice, elect to remedy all, some or none of Buyer's
objections described in the Objection Notice ("Seller's Election Notice").
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Within five (5) business days following delivery of Seller's Election Notice,
Buyer shall deliver to Seller either a Continuation Notice or (but only if
Seller does not agree to remedy all of Buyer's objections) a Termination Notice;
failure to deliver a Termination Notice shall be deemed to be Buyer's election
to proceed to Closing, subject to Seller's compliance with the elections set
forth in the Seller's Election Notice. The Deposit shall be non-refundable to
Buyer following the expiration of the Review Period other than on account of (i)
a material
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default by Seller in the performance of any of Seller's obligations hereunder or
(ii) the nonsatisfaction of either of the conditions to Closing set forth in
Sections 5(a) or 5(b) below.
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5. Conditions to Closing. In addition to any express conditions of Closing
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located elsewhere in this Agreement, the following are conditions precedent to
the obligations of Buyer, on the one hand, and Seller, on the other hand, to
consummate the transactions hereunder and the purchase of the Property:
(a) Seller shall deliver the Property free of all tenants. Upon the
expiration of the Review Period and Buyer's delivery of the Additional Deposit
pursuant to Section 3(b) hereof, Buyer shall deliver notices to the tenants of
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the Property (with copies of such notices being simultaneously delivered to
Buyer) pursuant to which the leases of the tenants are terminated and the
tenants are demanded to vacate the Property either (i) within thirty (30) days
following the date of such notice (in the case of month to month tenants), (ii)
by November 30, 2001 in the case of Casual Male, (iii) or a reasonable date
mutually satisfactory to the tenant and Seller, which in no event shall be later
than December 31, 2001 (in the case of all other tenants).
(b) Seller shall have received from the lender (the "Lender")
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holding the mortgage or deed of trust which currently encumbers the Property
(the "Mortgage") a release of the Property from the Mortgage (the "Release"),
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duly executed by Lender in recordable form on or before the Closing Date.
Although Seller shall use reasonable efforts to obtain the Release, the parties
acknowledge that the Lender's granting of the Release is beyond the control of
Seller, and in no event, shall failure to obtain such Release constitute a
default by Seller hereunder.
(c) In the event that Buyer has not terminated this Agreement during
the Review Period, is not in material default under this Agreement, and either
of the conditions contained in Sections 5(a) or 5(b) hereof shall not have been
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satisfied on or before December 31, 2001, Buyer shall have the right to
terminate this Agreement, by written notice to Seller, and in such event, Buyer
shall receive a refund of the Deposit and reimbursement from Seller of Buyer's
actual out of pocket costs in connection with the acquisition of the Property up
to the amount of $80,000.00. Thereafter, neither party shall have any further
rights or obligations under this Agreement except for any obligations hereunder
which expressly survive the termination of this Agreement.
(d) Seller shall have the right to terminate this Agreement in the
event that either of the conditions contained in Sections 5(a) or 5(b) shall not
have been satisfied on or before December 31, 2001, by written notice to Buyer,
and in such event, Buyer shall receive a refund of the Deposit, and provided
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that Buyer is not otherwise in material default hereunder, reimbursement from
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Seller of Buyer's actual out of pocket costs in connection with the acquisition
of the Property up to the amount of $80,000. Thereafter, neither party shall
have any further rights or obligations pursuant to this Agreement except for any
obligations hereunder which expressly survive the termination of this Agreement.
6. Closing and Escrow.
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(a) Upon execution of this Agreement, the parties shall deposit an
executed counterpart of this Agreement with the Title Company and this
instrument shall serve as the instructions to the Title Company as the escrow
holder for consummation of the purchase and sale contemplated hereby. Seller and
Buyer agree to execute such additional and supplementary escrow instructions as
may be appropriate to enable the escrow holder to comply with the terms of this
Agreement; provided, however, that in the event of any conflict between the
provisions of this Agreement and any supplementary escrow instructions, the
terms of this Agreement shall control.
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(b) The closing ("Closing") hereunder shall be held and delivery of
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all items to be made at the Closing under the terms of this Agreement shall be
made at the office of Title Company, upon a date (the "Closing Date") following
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the expiration of the Review Period and satisfaction of the conditions contained
in Sections 5(a) and 5(b) hereof, selected by Buyer, on not less than five (5)
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days' notice to Seller, but in no event, later than December 31, 2001.
(c) On the Closing Date, Buyer shall deliver the following into
escrow with the Title Company:
(i) The Purchase Price, reduced by the amount of the Deposit,
subject to the credits, adjustments and prorations described in this Agreement,
in the form of a wire transfer of good federal funds.
(ii) A counterpart Assignment and Assumption of Service
Contracts, Warranties and Guaranties and Other Intangible Property in the form
attached hereto as Exhibit D, duly executed by Buyer.
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(iii) Such resolutions, authorizations, bylaws or other
corporate, company and/or partnership documents or agreements relating to Buyer
as shall be reasonably required in connection with this transaction.
(iv) A statement itemizing funds to be collected and disbursed
at Closing (the "Closing Statement"), duly executed by Buyer.
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(v) Any other documents, instruments, records, correspondence
or agreements called for hereunder or reasonably requested by the Title Company
which have not previously been delivered.
(d) On or prior to the Closing Date, Seller shall deliver the
following into escrow with the Title Company:
(i) A special warranty deed (the "Deed"), in the form that is
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customary in the state where the Property is located and reasonably acceptable
to the Title Company, duly executed and acknowledged by Seller, conveying to
Buyer fee simple title to the Property, subject only to the Permitted
Exceptions.
(ii) A duly executed Xxxx of Sale in the form attached hereto
as Exhibit C.
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(iii) A duly executed counterpart of the Assignment and
Assumption of Service Contracts, Warranties and Guaranties and Other Intangible
Property in the form attached hereto as Exhibit D, whereby Buyer assumes all
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service contracts and other agreements relating to the Property which have been
identified to Seller by Buyer during the Review Period (the "Assumed
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Contracts").
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(iv) An affidavit in form satisfactory to Buyer that Seller is
not a "foreign person" within the meaning of Section 1445(e)(3) of the Internal
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Revenue Code of 1986, as amended (the "Code") in the form attached hereto as
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Exhibit E.
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(v) Sufficient funds to meet all of Seller's obligations with
respect to closing costs, prorations and adjustments.
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(vi) Such resolutions, authorizations, bylaws or other
corporate and/or partnership documents or agreements relating to Seller as shall
be reasonably required in connection with this transaction.
(vii) A duly executed affidavit or certificate, in favor of
Buyer and the Title Company, sufficient to remove the exceptions from the Title
Policy for mechanic's lien and parties in possession, and any other standard
exceptions.
(viii) The Closing Statement, duly executed by Seller.
(ix) Any other documents, instruments, records, correspondence
or agreements called for hereunder or reasonably requested by the Title Company
which have not previously been delivered.
(e) Upon receipt of all the funds and documents described in
Sections 5(c) and 5(d), above, and provided the Title Company is in a position
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to issue the Title Policy, the Title Company shall (i) deliver the funds on
account of the Purchase Price to Seller and otherwise disburse funds in
accordance with the Closing Statement, (ii) record the Deed and such other
documents as may be appropriate as directed by Buyer and Seller, and (iii)
deliver the remaining documents from escrow to the party entitled to receive the
same.
(f) Real estate taxes and public or private assessments for the
current year shall be prorated, whether or not due and payable, as of 12:01 a.m.
on the Closing Date, based on a 365-day year. If real estate taxes for the
current year cannot be ascertained, those for the previous year shall be
utilized without allowance for any discount allowed by law. Seller shall be
responsible for all installments for assessments and bonds which constitute a
lien against the Property and are due and payable as of the Closing Date.
(g) Within six (6) months following the Closing, Buyer shall prepare
and present to Seller a recalculation of any and all amounts due under Section
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6(f), above, taking into consideration receipt of current year tax bills. The
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parties shall make the appropriate adjusting payment between them within 30 days
of delivery of any such recalculation.
(h) The charges under the Assumed Contracts shall be prorated as of
the Closing Date.
(i) Buyer shall pay the premium for the Title Policy, the cost of
the Commitment and all survey costs. The cost of any transfer and recordation
taxes (including documentary stamps) applicable to the Deed shall be paid by
Seller, and recording fees shall be paid by Seller. The Title Company's fees for
escrow services shall be divided equally between Buyer and Seller. Any costs
associated with any mortgage or other financing obtained by Buyer in connection
with this transaction shall be borne exclusively by Buyer.
(j) Possession of the Property shall be delivered to Buyer at
Closing.
7. Representations and Warranties of Seller. Seller hereby represents and
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warrants to Buyer as follows:
(a) Seller is a limited partnership duly organized and validly
existing under the laws of the State of Delaware, and Seller is authorized to
conduct its business in the state in which the Property
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is located. Seller has the power to own its property and to enter into this
Agreement and perform its obligations and consummate the transactions
contemplated under this Agreement.
(b) This Agreement and all documents executed and delivered by
Seller are or at the time of Closing will be: duly authorized, executed, and
delivered by Seller; and the legal, valid, and binding obligations of Seller.
Such documents do not violate any provisions of or cause a default under any
agreement, instrument or judicial order to which Seller is a party or by which
Seller or the Property is bound.
(c) Seller has received no written notice of any existing, pending
or threatened litigation, action, suit or other proceeding, judicial or
administrative, by any person or any governmental authority, against Seller or
arising in connection with the Property, nor has Seller received any written
notice from any governmental authority that the Property is in violation of any
laws, ordinances, rules, or regulations applicable to the Property.
(d) Except as disclosed in materials provided or made available to
Buyer during the Review Period, Seller has not received written notice from any
governmental authority or agency having jurisdiction over the Property, and has
no actual knowledge of any violation of Environmental Laws related to the
Property or the presence or release of Hazardous Materials on or from the
Property. The term "Environmental Laws" includes, without limitation, the
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Resource Conservation and Recovery Act and the Comprehensive Environmental
Response Compensation and Liability Act and other federal laws governing the
environment as in effect on the date of this Agreement together with their
implementing regulations and guidelines as of the Effective Date, and all state,
regional, county, municipal and other local laws, regulations and ordinances
that are equivalent or similar to the federal laws recited above or that purport
to regulate Hazardous Materials. The term "Hazardous Materials" includes
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petroleum, including crude oil or any fraction thereof, natural gas, natural gas
liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of
natural gas or such synthetic gas), and any substance, material waste, pollutant
or contaminant listed or defined as hazardous or toxic under any Environmental
Law.
(e) Seller is not a "foreign person" within the meaning of Section
1445(f)(3) of the Code.
(f) To Seller's knowledge, each of the Leases delivered by Seller to
Buyer are true, correct and complete in all materials respects.
For purposes of this Section 7, "Seller's actual knowledge" or words
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of similar import refer to the current, actual knowledge of Xxxxxx X. Xxxxx III,
without any duty of inquiry or investigation and without imputation of the
knowledge of any other person. Seller's warranties and representations are
qualified by and deemed to be modified to include exception for any knowledge
obtained by Buyer during the Review Period, and Seller may further qualify such
warranties and representations by delivery of written notice at any time prior
to the expiration of the Review Period.
AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, BUYER AGREES
TO ACCEPT THE PROPERTY ON AN "AS IS" AND "WHERE IS" BASIS, WITH ALL FAULTS.
EXCEPT FOR THOSE WARRANTIES AND REPRESENTATIONS, IF ANY, SPECIFICALLY MADE BY
SELLER IN THIS AGREEMENT OR IN ANY OTHER DOCUMENTS DELIVERED BY SELLER TO BUYER
AT CLOSING, NO WARRANTY OR REPRESENTATION IS MADE BY SELLER WITH RESPECT TO THE
PROPERTY AS TO (I) FITNESS FOR ANY PARTICULAR PURPOSE, (II) MERCHANTABILITY,
(III) CONDITION, (IV) ABSENCE OF DEFECTS OR FAULTS, (V) ABSENCE OF HAZARDOUS OR
TOXIC SUBSTANCES, (VI)
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FLOODING, OR (VII) COMPLIANCE WITH LAWS AND REGULATIONS, INCLUDING, WITHOUT
LIMITATION, THOSE RELATING TO HEALTH, SAFETY, AND THE ENVIRONMENT, AS THEY MAY
APPLY TO THE CURRENT CONDITION OF THE PROPERTY OR BUYER'S INTENDED DEVELOPMENT,
CONSTRUCTION OR USE, OR FOR ANY OTHER PURPOSE. BUYER ACKNOWLEDGES THAT BUYER HAS
ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF MAKING AND RELYING UPON ITS
OWN INVESTIGATION OF THE PHYSICAL, ENVIRONMENTAL, ECONOMIC USE, COMPLIANCE, AND
LEGAL CONDITION OF THE PROPERTY AND THAT BUYER IS NOT NOW RELYING, AND WILL NOT
LATER RELY, UPON ANY REPRESENTATIONS AND WARRANTIES MADE BY SELLER OR ANYONE
ACTING OR CLAIMING TO ACT, BY, THROUGH OR UNDER OR ON SELLER'S BEHALF CONCERNING
THE PROPERTY. THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE INDEFINITELY ANY
CLOSING OR TERMINATION OF THIS AGREEMENT AND SHALL NOT BE MERGED INTO ANY
DOCUMENTS, EXECUTED OR DELIVERED AT CLOSING.
8. Representations and Warranties of Buyer. Buyer hereby represents and
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warrants to Seller as follows: Buyer is an individual doing business as a sole
proprietorship known as Cumberland Financial Services, and Buyer is authorized
to conduct its business in the state in which the Property is located. Buyer has
the power to own its property and carry on its business as and where it is now
conducted and has the power and unrestricted authority to enter into this
Agreement and perform its obligations and consummate the transactions
contemplated under this Agreement without the joinder of any other person or
entity, including delivery of the funds and other items required for Closing.
This Agreement and all documents executed by Buyer which are to be delivered at
the Closing are or at the time of Closing will be duly authorized, executed, and
delivered by Buyer, and are or at the Closing will be legal, valid, and binding
obligations of Buyer, and do not and at the time of Closing will not violate any
provisions of any agreement or judicial order to which Buyer is a party or to
which it is subject.
9. Loss by Fire or Other Casualty; Condemnation.
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(a) Risk of loss up to and including the Closing Date shall be borne
by Seller. In the event of any material damage to or destruction of the Property
or any portion thereof, Buyer may, at its option, by notice to Seller given
within ten (10) business days after Seller notifies Buyer of such damage or
destruction (and if necessary the Review Period or Closing Date shall be
extended to give Buyer the full ten day period to make such election): (i)
terminate this Agreement and the Deposit shall be immediately returned to Buyer,
or (ii) proceed under this Agreement, receive any insurance proceeds (including
any rent loss insurance applicable to any period on and after the Closing Date)
due Seller as a result of such damage or destruction and assume responsibility
for such repair, and Buyer shall receive a credit at Closing for any deductible,
uninsured or coinsured amount under said insurance policies. If Buyer elects
(ii) above, Buyer may extend the Closing Date for up to an additional ten (10)
business day period in which to obtain insurance settlement agreements with
Seller's insurers, and Seller will cooperate with Buyer in obtaining the
insurance proceeds and such agreements from Seller's insurers. If the Property
is not materially damaged, then Buyer shall not have the right to terminate this
Agreement, but Seller shall, at its cost, repair the damage before the Closing
in a manner reasonably satisfactory to Buyer or if repairs cannot be completed
before the Closing, credit Buyer at Closing for the reasonable cost to complete
the repair. "Material damage" and "materially damaged" means damage reasonably
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exceeding ten percent (10%) of the Purchase Price to repair.
(b) In the event any proceedings in eminent domain are instituted by
any body having the power of eminent domain with respect to the Property or any
material portion thereof, Buyer may, at its option, by notice to Seller given
within ten (10) business days after Seller notifies Buyer of such proceedings
(and if necessary the Review Period or Closing Date shall be extended to give
Buyer the full 10 business day period to make such election): (i) terminate this
Agreement and the Deposit shall be
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immediately returned to Buyer, or (ii) proceed under this Agreement, in which
event Seller shall, at the Closing, assign to Buyer its entire right, title and
interest in and to any condemnation award, and Buyer shall have the sole right
during the pendency of this Agreement to negotiate and otherwise deal with the
condemning authority in respect of such matter.
10. Default; Remedies. If Buyer should default in any material respect in
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the performance of any of Buyer's obligations under this Agreement, Seller shall
be entitled to terminate this Agreement and receive the Deposit as liquidated
damages and as Seller's sole and exclusive remedy for any such default, with
Seller hereby waiving any rights it might otherwise have to xxx for damages or
seek specific performance, injunctive relief or any other equitable remedy on
account of a default by Buyer. Buyer and Seller agree that in the event of
Buyer's default, Seller's damages would be difficult to ascertain and the
Deposit represents a reasonable estimate of such damages under the
circumstances. If Seller should default in any material respect in the
performance of any of Seller's obligations in this Agreement and provided that
Buyer has duly and timely performed all of its obligations and is not in default
hereunder, as Buyer's sole and exclusive remedy, Buyer may either (i) terminate
this Agreement and request the return of the Deposit, or (ii) bring an action
for specific performance of this Agreement. In either event, Seller shall not be
liable to Buyer for any actual, direct, incidental, special, consequential,
punitive or other damages on account thereof.
11. Miscellaneous.
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(a) Notices. Unless otherwise provided herein, any notice required
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or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given the day after such notice was deposited with a
nationally-recognized overnight delivery service, or the date sent by confirmed
telecopy and addressed as follows:
If to Buyer: Xxxxx Xxxxxxxx, d/b/a Cumberland
----------- Financial Services
000 0xx Xxxxxx Xxxxx, #0X
Xxxxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxxx
Phone No: (000) 000-0000
Fax No: (000) 000-0000
E-Mail: xxxxxxxxx@xxx.xxx
Copy to: Boult, Cummings, Xxxxxxx & Xxxxx, PLC
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000 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxxxxx, XX 00000
Attn: Xxxxxx X. Xxxx
Phone No: (000) 000-0000
Fax No: (000) 000-0000
E-Mail: xxxxx@xxxxxxxxxxxxx.xxx
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If to Seller: KPT Properties, L.P.
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c/o Konover Property Trust, Inc.
0000 Xxxxxxxx Xxxx Xxxx
Xxxxx 000
Xxxxxxx, XX 00000
Attn: Legal Department
Phone No: (000) 000-0000
Fax No: (000) 000-0000
xxxxxxxxx@xxxxxxxxxxxx.xxx
Copy to: Xxxxx, Xxxxx & Xxxxx
-------
0000 X Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attn: Xxxx X. Xxxxxxx
Phone No: (000) 000-0000
Fax No: (000) 000-0000
E-Mail: xxxxxxxx@xxxxxxxxxx.xxx
or such other address as either party may from time to time specify in writing
to the other.
(b) Brokers and Finders. Neither party has had any contact or
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dealings regarding the Property, or any communication in connection with the
subject matter of this transaction, through any licensed real estate broker or
other person who can claim a right to a commission or finder's fee as a
procuring cause of the sale contemplated herein, except for Commercial Property
Services ("Broker"), whose commissions shall be paid by Seller pursuant to a
------
separate agreement. Buyer shall indemnify, save harmless and defend Seller from
any liability, cost, or expense (including reasonable attorneys' fees) arising
out of or connected with any claim for any commission or compensation made by
any person or entity claiming to have been retained or contacted by Buyer in
connection with this transaction, other than Broker. Seller shall indemnify,
save harmless and defend Buyer from any liability, cost, or expense (including
reasonable attorneys' fees) arising out of or connected with any claim for any
commission or compensation made by any person or entity claiming to have been
retained or contacted by Seller in connection with this transaction, including
Broker. The provisions of this paragraph shall survive the Closing and any
termination of this Agreement.
(c) Successors and Assigns. Neither party may assign this Agreement
----------------------
without the prior written consent of the other, and any such prohibited
assignment shall be void. Notwithstanding the immediately preceding sentence,
Seller reserves the right, on or before Closing, to assign this Agreement to an
affiliated entity which directly or indirectly owns or controls Seller, is owned
or controlled by Seller, is owned or controlled in common with Seller, or to an
entity at least a majority of whose economic interest is owned by Seller.
Further, notwithstanding anything to the contrary contained in this paragraph,
Buyer may assign its rights and obligations hereunder, upon written notification
to Seller, to a corporation or limited liability company in which Xxxxx Xxxxxxxx
(or an entity in which Xxxxx Xxxxxxxx has a controlling interest) is a principal
owner, provided that Buyer provides Seller with evidence of existence and
ownership of the assignee. Subject to the foregoing, this Agreement shall be
binding upon and inure to the benefit of the respective legal representatives,
successors, assigns, heirs, and devisees of the parties.
(d) Amendments. Except as otherwise provided herein, this Agreement
----------
may be amended or modified only by a written instrument executed by Seller and
Buyer.
10
(e) Continuation and Survival. All representations and warranties by
-------------------------
the respective parties contained herein or made in writing pursuant to this
Agreement are intended to and shall remain true and correct as of the time of
Closing, and shall survive the execution and delivery of this Agreement, the
delivery of the Deed and transfer of title for a period of six (6) months
following the Closing, except as otherwise expressly provided in this Agreement.
In addition, the provisions of this Agreement that contemplate performance after
the Closing and the obligations of the parties not fully performed at the
Closing shall survive the Closing and shall not be deemed to be merged into or
waived by the instruments of Closing.
(f) Governing Law. This Agreement shall be governed by and construed
-------------
in accordance with the laws of the state in which the Property is located.
(g) Merger of Prior Agreements. This Agreement, including the
--------------------------
exhibits hereto, constitutes the entire agreement between the parties with
respect to the purchase and sale of the Property and supersedes all prior
agreements and understandings between the parties hereto relating to the subject
matter hereof.
(h) Enforcement. In the event either party hereto fails to perform
-----------
any of its obligations under this Agreement or in the event a dispute arises
concerning the meaning or interpretation of any provision of this Agreement, the
defaulting party or the party not prevailing in such dispute, as the case may
be, shall pay any and all costs and expenses incurred by the other party in
enforcing or establishing its rights hereunder, including, without limitation,
court costs and reasonable attorneys' fees.
(i) Time of the Essence. Time is of the essence in the performance
-------------------
of this Agreement.
(j) Execution in Counterparts. This Agreement may be executed in any
-------------------------
number of counterparts, each of which shall be deemed to be an original, and all
of such counterparts shall constitute one Agreement. To facilitate execution of
this Agreement, the parties may execute and exchange by telephone facsimile
counterparts of the signature pages.
(k) Calculation of Time Periods. Unless otherwise specified, in
---------------------------
computing any period of time described herein, the day of the act or event after
which the designated period of time begins to run is not to be included and the
last day of the period so computed is to be included, unless such last day is a
Saturday, Sunday or legal holiday for national banks in the location where the
Property is located, in which event the period shall run until the end of the
next day which is neither a Saturday, Sunday, or legal holiday. The last day of
any period of time described herein shall be deemed to end at 6:00 p.m.
Tennessee time.
(l) Confidentiality. Between the date hereof and for a period ending
---------------
two (2) years after the Closing Date, except as expressly otherwise provided in
this Agreement (and excluding the right to disclose or disseminate any
information that is of a public nature), neither Seller nor Buyer shall make or
cause to be made any public announcement or disclosure of any financial terms of
this Agreement or any materials or other information related to the Property
obtained by Buyer from Seller during the Review Period, to outside brokers or
third parties, without first obtaining the written consent of the other party,
provided that Buyer may disclose material terms which are necessary or required
to be disclosed in connection with its due diligence investigations or in
obtaining or evaluating governmental approvals. The foregoing shall not preclude
either party from discussing the substance or any relevant details of such
transactions with any of its attorneys, accountants, professional consultants,
lenders, partners, investors, or any prospective lender, partner or investor, as
the case may be, or prevent either party hereto, from complying with laws,
rules, regulations and court orders, including without limitation, governmental
11
regulatory, disclosure, tax and reporting requirements. Notwithstanding anything
to the contrary contained in this Section 11 (l), Buyer may market the Property
--------------
to outside brokers or third parties after the Closing Date so long as Buyer does
not disclose any financial terms of this Agreement not otherwise made public
with the filing of the Deed. In addition to any other remedies available to a
party, each party shall have the right to seek equitable relief, including
without limitation injunctive relief or specific performance, against the other
party in order to enforce the provisions of this Section 11(l). Buyer shall not
-------------
record this Agreement or any affidavit or memorandum of this Agreement or any
document to which this Agreement is attached.
(m) Section 1031 Exchange. Buyer may consummate the purchase of the
---------------------
Property as part of a so-called like kind exchange (the "Exchange") pursuant to
--------
ss. 1031 of the Code, provided that: (i) the Closing shall not be delayed or
affected by reason of the Exchange nor shall the consummation or accomplishment
of the Exchange be a condition precedent or condition subsequent to Buyer's
obligations under this Agreement; (ii) Buyer shall effect the Exchange through
an assignment of this Agreement, or rights under this Agreement, to a qualified
intermediary; (iii) Seller shall not be required to take an assignment of the
purchase agreement for the relinquished property or be required to acquire or
hold title to any real property for purposes of consummating the Exchange; and
(iv) Buyer shall pay any additional costs that would not otherwise have been
incurred by Buyer or Seller had Buyer not consummated its purchase through the
Exchange. Seller shall not by this agreement or acquiescence to the Exchange (1)
have its rights under this Agreement affected or diminished in any manner or (2)
be responsible for compliance with or be deemed to have warranted to Buyer that
the Exchange in fact complies with ss. 1031 of the Code.
(o) Further Assurances. In addition to the acts and deeds recited
------------------
herein and contemplated to be performed, executed and/or delivered by either
party at Closing, each party agrees to perform, execute and deliver, but without
any obligation to incur any additional liability or expense, on or after the
Closing any further deliveries and assurances as may be reasonably necessary to
consummate the transactions contemplated hereby or to further perfect the
conveyance, transfer and assignment of the Property to Buyer.
[signature page follows]
12
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first above written.
SELLER: KPT PROPERTIES, L.P.,
a Delaware limited partnership
By: Konover Property Trust, Inc.,
a Maryland corporation,
Its General Partner
By:
---------------------------------
Name:
Title:
BUYER: XXXXX XXXXXXXX, D/B/A CUMBERL AND
FINANCIAL SERVICES a sole proprietorship
By:
-------------------------------------
Xxxxx Xxxxxxxx
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LIST OF EXHIBITS
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Exhibit A-1 Legal Description of Property
Exhibit A-2 List of Tangible Personal Property
Exhibit B Escrow Provisions
Exhibit C Form Xxxx of Sale
Exhibit D Form of Assignment of Warranties and Guaranties
and Other Intangible Property
Exhibit E Form of FIRPTA Certificate
E-14
