EXHIBIT 10.23
Real Estate Purchase and Sale Contract
between CNL Retirement Corp., as Buyer, and
American Retirement Corporation, as Seller, relating to the
Heritage Club at Greenwood Village - Greenwood Village, Colorado
REAL ESTATE PURCHASE AND SALE CONTRACT
by and between
CNL RETIREMENT CORP.,
a Florida corporation, or assigns,
as BUYER
and
AMERICAN RETIREMENT CORPORATION,
a Tennessee corporation,
as SELLER
Premises: Heritage Club at Greenwood Village,
an Assisted Living Facility in Denver, Colorado
(Tenant: ARC Greenwood Village, Inc.,
a Tennessee corporation)
TABLE OF CONTENTS
Page
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1. Definitions..............................................................................................1
2. Purchase and Sale of Premises............................................................................3
3. Purchase Price for Premises..............................................................................3
4. Closing Date.............................................................................................4
5. Conditions to Buyer's Obligation to Close................................................................4
6. Deliveries at Closing....................................................................................8
7. Closing and Other Costs, Adjustments and Prorations.....................................................10
8. Inspections.............................................................................................11
9. Title to Premises; State of Title to be Conveyed........................................................11
10. Escrow Agent............................................................................................11
11. Covenants, Representations and Warranties...............................................................13
12. Covenants of Seller Pending Closing.....................................................................15
13. Eminent Domain..........................................................................................15
14. Casualty................................................................................................16
15. Remedies Upon Default...................................................................................16
16. Notices.................................................................................................16
17. Brokerage Commissions...................................................................................17
18. Miscellaneous Provisions................................................................................18
Attachments:
Exhibit A - Description of Premises
Exhibit B - Permitted Exceptions
Exhibit C - Intentionally Omitted
Exhibit D - Form of Lease
Exhibit E - Form of Assignment of Licenses, Permits,
Plans, Contracts and Warranties
Exhibit F - Form of Seller's Counsel Opinion Letter
Exhibit G - Form of Deed
Exhibit H - Form of Architect's Certificate
Exhibit I - Form of Engineer's Certificate
Exhibit J - Form of Escrow Agreement
REAL ESTATE PURCHASE AND SALE CONTRACT
THIS REAL ESTATE PURCHASE AND SALE CONTRACT (this "Agreement") made and
entered into as of the Effective Date set forth herein, by and between AMERICAN
RETIREMENT CORPORATION, a Tennessee corporation, having a mailing address at 000
Xxxxxxxx Xxxxx, Xxxxx 000, Xxxxxxxxx, Xxxxxxxxx 00000 ( "Seller"), and CNL
RETIREMENT CORP., a Florida corporation, or its assigns, having a mailing
address at CNL Center at City Commons, 000 Xxxxx Xxxxxx Xxxxxx, Xxxxxxx, Xxxxxxx
00000 ("Buyer");
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, Seller is the fee simple owner of and is willing to sell a
parcel of real property located in the City of Denver, Arapahoe County,
Colorado; and
WHEREAS, Buyer is willing to buy such real property upon the terms and
conditions hereinafter set forth; and
NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and intending to be legally bound
hereby, the parties hereto agree as follows:
1. Definitions. In addition to other words and terms defined elsewhere
in this Agreement, as used herein the following words and terms shall have the
following meanings, respectively, unless the context hereof otherwise clearly
requires:
(a) "Closing" shall mean the consummation of the purchase and sale
of the Premises in accordance with the terms of this Agreement.
(b) "Contracts" shall mean, with respect to the Premises, any
equipment leases relating to the Premises and disclosed to Buyer on or before
Closing which are to survive the Closing and to which Seller is a party.
(c) "Xxxxxxx Money Deposit" shall mean the deposit of $50,000.00
to be given by Buyer to Escrow Agent pursuant to Section 3(a) of this Agreement,
as well as all interest earned thereon in the interest-bearing money market
account in which Escrow Agent is required to place the Initial Xxxxxxx Money
Deposit.
(d) "Effective Date" of this Agreement shall mean that date upon
which the last of the Buyer and Seller has executed this Agreement.
(e) "Escrow Agent" shall mean Lawyers Title Insurance Corporation,
whose address is set forth in Section 16 below.
(f) "Guarantor" shall mean American Retirement Corporation, a
Tennessee corporation.
(g) "Guaranty" shall mean the unconditional guaranty of the Lease
to be executed by the Guarantor and delivered to Buyer at Closing.
(h) "Hazardous Materials" shall mean all toxic or hazardous
materials, chemicals, wastes, pollutants or similar substances, including,
without limitation, Petroleum (as hereinafter defined), asbestos insulation
and/or urea formaldehyde insulation, which are regulated, governed, restricted
or prohibited by any federal, state or local law, decision, statute, rule,
regulation or ordinance currently in existence or hereafter enacted or rendered
(hereinafter collectively referred to as the "Hazardous Materials Laws")
including, but not limited to, those materials or substances defined as
"hazardous substances," "hazardous materials," "toxic substances" or
"pollutants" in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, 42 U.S.C. Section 9601, et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Toxic
Substances Control Act, 15 U.S.C. Section 2601 et seq., the Clean Air Act, 42
U.S.C. Section 7401 et seq., the Clean Water Act, 33 U.S.C. Section 1251 et
seq., and any applicable statutes, ordinances or regulations under the laws of
the State in which the Premises are located, and any rules and regulations
promulgated thereunder, all as presently or hereafter amended. "Petroleum" for
purposes of this Agreement shall include, without limitation, oil or petroleum
of any kind and in any form including but not limited to oil, petroleum, fuel
oil, oil sludge, oil refuse, oil mixed with other waste, crude oil, gasoline,
diesel fuel and kerosene.
(i) "Improvements" shall mean the buildings consisting of a 180 bed facility
with 75 assisted living units, 13 dementia care units with 15 beds and 68
skilled nursing units with 90 beds and other related improvements to be conveyed
to Buyer in connection with Buyer's acquisition of the Premises pursuant to the
terms of this Agreement and leased by Tenant pursuant to the terms of this
Agreement, and all appurtenances thereto, including but not limited to all
pavement, accessways, curb cuts, parking, drainage systems and facilities,
landscaping, and utility facilities and connections for sanitary sewer, potable
water, irrigation, electricity, telephone and natural gas, if applicable or
required by the Lease, to the extent the same form a part of the Premises.
(j) INTENTIONALLY OMITTED.
(k) "Lease" shall mean that certain Lease Agreement to be entered
into at Closing between Buyer, as lessor, and Tenant, as lessee, pursuant to
which Tenant shall lease the Premises and Improvements from Buyer.
(l) INTENTIONALLY OMITTED.
(m) INTENTIONALLY OMITTED.
(n) INTENTIONALLY OMITTED.
(o) INTENTIONALLY OMITTED.
(p) "P&E" shall mean the "Initial Landlord P&E" as that term is
defined in the Lease.
(q) "Permits" shall mean all of the governmental permits,
including licenses and authorizations, required for the construction, ownership
and operation of the Premises, including without limitation certificates of
occupancy, building permits, signage permits, site use approvals, zoning
certificates, environmental and land use permits and any and all necessary
approvals from state or local authorities other than such permits, operating
permits, certificates, licenses and approvals which are to be held by, or
transferred to, the Tenant in order to permit the Tenant to operate the Premises
properly in accordance with the terms of the Lease.
(r) "Permitted Exceptions" shall mean those items described on
Exhibit B attached hereto.
(s) "Plans" shall mean the final "as-built" plans and
specifications for the Improvements, which are to be furnished by Seller to
Buyer pursuant to Section 5(a)(5) of this Agreement.
(t) "Premises" shall mean that certain parcel of real property
being more particularly described on Exhibit A attached hereto, together with
all of the Improvements, tenements, hereditaments and appurtenances belonging or
in any way appertaining to such real property, and all of Seller's rights, title
and interest in and to (i) any and all property lying in the bed of any street,
road or avenue, open or proposed, in front of or adjoining such real property to
the center line thereof, (ii) any strips and gores of land adjacent to, abutting
or used in connection with such real property, and (iii) any easements and
rights, if any, inuring to the benefit of such real property or to Seller in
connection therewith.
(u) "Purchase Price" shall mean SEVENTEEN MILLION EIGHT HUNDRED
SIXTY-FIVE THOUSAND THREE HUNDRED SEVENTY-FIVE AND 00/100 DOLLARS
($17,865,375.00).
(v) "Seller's Reimbursement" shall mean the fixed sum of
$115,375.00 to be credited by Seller to Buyer at Closing in reimbursement of
Buyer's third-party inspection, review costs and other acquisition costs.
(w) "Tenant" shall mean ARC Greenwood Village, Inc., a Tennessee
corporation, which is a wholly-owned subsidiary of Seller.
(x) "Term Sheet" shall mean all terms relating to the sale of the
Premises as set forth in that certain Letter of Intent/Term Sheet letter
relating to the Premises and other properties dated November 2, 2001 from Buyer
to Seller, countersigned by Seller on November 7, 2001, as amended by letter
agreements dated December 20, 2001 and January 16, 2002.
(y) "Title Company" shall mean Lawyers Title Insurance
Corporation, which shall issue the owner's policy of title insurance required
hereunder by and through its agent.
2. Purchase and Sale of Premises. Subject to the terms, provisions and
conditions set forth herein, Seller hereby agrees to sell the Premises to Buyer,
and Buyer hereby agrees to purchase the Premises.
3. Purchase Price for Premises. The Purchase Price for the Premises
shall be payable in the following manner:
(a) Xxxxxxx Money Deposit. Not later than five (5) days following
the date on which Buyer shall receive a counterpart of this Agreement fully
executed by Buyer and Seller, Buyer shall deposit with Escrow Agent in
immediately available funds the Xxxxxxx Money Deposit hereunder, to be held and
disbursed in accordance with the terms of this Agreement.
(b) Xxxxxxx Money Deposit. After clearance of funds, Escrow Agent
shall hold the Xxxxxxx Money Deposit in an interest bearing money market account
at a federally insured financial institution reasonably acceptable to Buyer and
Escrow Agent, and interest earned thereon shall be reported under the United
States Taxpayer Identification Number 00-0000000 of Buyer. All interest earned
on the Xxxxxxx Money Deposit, or any portion hereof, shall be deemed to
constitute a portion of the Xxxxxxx Money Deposit and shall be disbursed in
accordance with the terms of this Agreement. The Xxxxxxx Money Deposit shall be
credited to the cash due from Buyer at Closing.
(c) Balance of Purchase Price. The balance of the Purchase Price,
less any apportionments set forth in Section 7 hereof and interest earned on the
Xxxxxxx Money Deposit, shall be paid in full by Buyer at the Closing by wire
transfer of immediately available federal funds, as Seller shall direct.
4. Closing Date. The Closing shall take place on March 28, 2002 (the
"Closing Date"), on an earlier date specified by Buyer on not less than five (5)
business days prior written notice to Seller, or such other date as is mutually
agreeable to Buyer and Seller, at the offices of Escrow Agent in Atlanta,
Georgia at such time as is mutually acceptable to Buyer and Seller.
5. Conditions to Buyer's Obligation to Close. Buyer's obligation to
purchase the Premises on the Closing Date is subject to the satisfaction of the
following contingencies and conditions in the manner and within the time limits
herein specified:
(a) On or Before the Effective Date of this Agreement: Seller
shall deliver, or have delivered, to Buyer (at no cost to Buyer):
(1) Copies of any and all tests, surveys, examinations, plans,
appraisals, permits, licenses, environmental studies or reports and other
studies or investigations regarding the Premises which the Seller may have in
its possession or control;
(2) If Tenant is a different entity than Seller, a current
operating statement, profit and loss statement, balance sheet and other
satisfactory financial information for Tenant, certified as true, correct and
complete by Tenant, reflecting Tenant's ability to pay rent and perform its
other Lease obligations, and a current profit and loss statement, balance sheet
and other satisfactory financial information for Guarantor reflecting
Guarantor's ability to perform its Guaranty obligations;
(3) A current letter or certificate from an appropriate
municipal, county or other governmental representative confirming the zoning
classification for the Premises, that the use and operation of the Premises for
Tenant's proposed use is in compliance with the applicable zoning ordinance, and
a final recorded plat approved by the applicable governmental authority or other
acceptable evidence confirming that the Premises are a legally subdivided
parcel;
(4) Final "as-built" Plans for the Improvements;
(5) All Permits, including without limitation, a certificate
of occupancy and an operating permit or license for the use and occupancy of the
Premises by Tenant.
(6) All warranties and guaranties pertaining to the
Improvements, specifically including the manufacturer's roof membrane warranty
issued with respect to the building comprising the Improvements.
(7) A commitment from the Title Company for an owner's title
insurance policy (ALTA form) with respect to the Premises, naming Buyer as the
Proposed Insured in the amount of the Purchase Price (the "Title Commitment"),
together with the following:
(i) All exceptions and appurtenances to title referred to
in the Title Commitment;
(ii) All proposed exceptions and appurtenances to title
which are intended to be of record as of the Closing Date;
(iii) All covenants and restrictions, if any, which Seller
desires that the Lease establish of record for the benefit of Tenant, whether
affecting the Premises, the remainder of the project or center in which the
Premises are located or any other property;
(iv) Evidence that any such covenants and restrictions for
the benefit of Tenant which encumber property other than the Premises are not
subject to extinguishment (e.g., by the foreclosure of any superior lien on the
property encumbered thereby) and, if permitted by applicable law, the Title
Commitment shall insure the same;
(v) A copy of the most recent tax xxxx (and paid receipt
therefor) with respect to ad valorem real property taxes and assessments levied
or assessed with respect to the Premises; and
(vi) Additional matters to be delivered, agreed upon or
accomplished on or before the Effective Date of this Agreement.
(b) On or Before the Effective Date of this Agreement:
(1) Buyer shall have approved the zoning of the Premises and
its compliance with applicable zoning and subdivision laws, including without
limitation the documents which Seller is required to furnish Buyer pursuant to
Section 5(a) above.
(2) Buyer shall have approved any financial information on the
Tenant and Guarantor which Seller is required to furnish to Buyer pursuant to
Section 5(a) above.
(3) Buyer shall have received evidence that legally sufficient
parking is available on the Premises without the benefit of any parking
easements created on adjacent property to comply with applicable zoning
requirements and that all utilities are available to and in service at the
Improvements.
(4) Buyer shall have obtained and approved an appraisal of the
Premises.
(5) Buyer shall have obtained and approved an environmental
assessment of the Premises.
(6) Buyer shall have obtained and approved an "as-built"
survey of the Premises.
(7) Buyer shall have otherwise determined, in its sole and
absolute discretion, that the Premises are satisfactory to Buyer.
Upon execution of this Agreement by Buyer, Buyer shall be deemed to
have approved, or waived the requirement for approval of, all of the matters to
be received, reviewed and approved by Buyer pursuant to Sections 5(a) and 5(b)
above other than and except for receipt and approval by Buyer (not to be
unreasonably withheld), of the following: any Permits and other matters referred
to under subparagraph 5(a)(5) which have not yet been provided, any warranties,
etc. referred to under subparagraph 5(a)(6) which have not yet been provided,
and any paid tax xxxx copies referred to in subparagraph 5(a)(7)(v) which have
not yet been provided.
(c) On or before the Closing Date:
(1) Buyer and Tenant shall have mutually agreed upon all of
the terms and conditions of the Lease to be entered into at Closing. In
connection therewith, Buyer and Tenant shall, prior to Closing, negotiate to
finalize the terms and provisions of the Lease on the basis of (but shall in no
way be bound by) the form of Lease described on Exhibit D attached hereto, and
shall act in a commercially reasonable manner in such negotiations. The final
negotiated Lease to be executed at Closing shall in any event require (i) an
initial term of fifteen (15) years commencing with the Closing Date, (ii) two
(2) five (5) year renewal options, (iii) that the Premises be used and occupied
by Tenant only as and for the type of facility described in Section 1(i) above,
and (iv) that the annual minimum rental rate payable by Tenant during the first
year of the initial term shall be equal to the product of (x) Landlord's total
acquisition costs (as the same may be affected by the Earn Out Agreement, as
herein defined) multiplied by (y) ten percent (10.00%).
(2) Buyer and Seller shall have mutually agreed upon all of
the terms and conditions of an escrow agreement (the "Escrow Agreement") to be
entered into at Closing relating to certain work on the Premises which Seller
has agreed to complete. The final form of the Escrow Agreement will be
substantially in accordance with the form of the Escrow Agreement attached
hereto as Exhibit J, provided and except that the amount to be escrowed, the
final description of the work to be accomplished, whether progress payment draws
from the escrow will be permitted and timeframes involved shall be subject to
negotiation and approval by Landlord and Tenant prior to Closing, which approval
shall not unreasonably be withheld by either party.
(3) INTENTIONALLY OMITTED.
(4) Buyer and Seller shall have mutually agreed on the forms
of the Guaranty, the Earn Out Agreement and First Offer Agreement as such terms
are defined herein.
(5) INTENTIONALLY OMITTED.
(6) Buyer and Seller shall have mutually agreed upon the
schedule of P&E to be conveyed to Buyer at Closing and shall have agreed in
writing upon that portion of the Purchase Price which will be allocated to P&E.
(7) INTENTIONALLY OMITTED.
(8) Buyer shall have received a certificate from an inspecting
architect acceptable to Buyer substantially in the form attached hereto as
Exhibit H (or otherwise reasonably acceptable to Buyer), and a certificate from
an inspecting civil engineer acceptable to Buyer substantially in the form
attached hereto as Exhibit I (or otherwise reasonably acceptable to Buyer).
Seller shall pay all costs in connection with obtaining the aforesaid
certificates.
(9) INTENTIONALLY OMITTED.
(10) Seller shall be, and at the time of Closing shall
continue to be, the owner of the fee simple interest in the Premises, free from
all liens, encumbrances, restrictions, rights-of-way and other matters,
excepting only the Permitted Exceptions and any other matter consented to in
writing by Buyer pursuant to Section 12(a) hereof.
(11) The representations and warranties of Seller set forth in
Section 11 hereof shall be true, correct and complete in all material respects
on and as of the Closing Date.
(12) Neither Seller, Tenant nor Guarantor shall, at any time
during the term of this Agreement, file or have filed against it a petition
seeking relief under the bankruptcy or other similar laws of the United States
or any state thereof.
(13) Tenant shall have duly executed and delivered the Lease
to Buyer and Guarantor shall have duly executed and delivered the Guaranty to
Buyer.
(14) The environmental assessment approved by Buyer prior to
the Effective Date shall continue to accurately reflect the environmental
condition of the Premises.
(15) Buyer shall have received the Title Commitment
"marked-up" and effectively dated as of the Closing, deleting all requirements
thereunder so as to obligate the Title Company unconditionally to issue to Buyer
an original owner's policy of title insurance in the amount of the Purchase
Price subject only to the Permitted Exceptions.
(16) Title Company shall deliver to Buyer a "closing
protection" or "insured closing" letter, evidencing the authority of any agent
of Title Company which conducts the Closing and issues the Buyer's owner's
policy of title insurance for or on behalf of Title Company.
(17) Buyer shall have obtained a firm legally binding
commitment ("Binding Commitment") for a first mortgage loan (the "Acquisition
Loan") and the Acquisition Loan shall be made and advanced on the Closing Date
for the acquisition of the Premises, under the following terms and conditions
(or other less favorable terms acceptable to Buyer in its sole discretion), and
subject to other related terms which are customary and acceptable to Buyer in
its reasonable discretion:
(i) Principal amount not less than $10,000,000.00;
(ii) Non-recourse, minimum 25-year amortization term, and
not less than a five (5) year term; and
(iii) floating or fixed rate interest payable at market
rates and terms, in either case not to exceed an all-in cap of not more than
7.5%.
If the foregoing contingencies are not satisfied prior to Closing, then
in addition to any rights afforded by Section 15 of this Agreement Buyer shall
be entitled to terminate this Agreement by delivering written notice thereof to
Seller and Escrow Agent in accordance with and subject to the provisions of
Section 10(b) below, whereupon the Xxxxxxx Money Deposit and all interest earned
thereon shall be returned to Buyer and this Agreement shall terminate and become
null and void and all parties hereto shall be relieved of all obligations
hereunder. Buyer and Seller hereby agree that this Agreement and the parties'
respective rights and obligations hereunder are terminable upon seven (7)
calendar days written notice from Seller to Buyer unless, prior to the
expiration of such seven-day period Buyer notifies Seller in writing that Buyer
has and agrees to close in accordance with a Binding Commitment, including a
copy of the fully executed Binding Commitment, or that Seller is waiving its
contingency as set forth in the foregoing subparagraph 5(c)(17).
Buyer agrees with Seller that Seller's obligations hereunder are
contingent upon Seller's approval, not to be unreasonably withheld, of the
documents described in subparagraphs (1), (2) (4) and (6) of this Section 5(c),
and upon Seller's receipt of a satisfactory Subordination, Nondisturbance and
Subordination Agreement with respect to the Lease from the lender under the
Acquisition Loan ("SNDA"), provided that Seller shall not unreasonably withhold
its approval of the terms of the SNDA as reasonably specified by such lender.
Notwithstanding anything herein to the contrary, the forms of the
Guaranty, the Earn Out Agreement, the First Offer Agreement and all other
closing documents shall be in the form described on Exhibit D attached hereto,
revised to reflect the terms and provisions of the Term Sheet.
6. Deliveries at Closing. At Closing the parties shall deliver to each
other the documents and items indicated below:
(a) Seller shall deliver to Buyer:
(1) An appropriate "Owner's Affidavit" or other acceptable
evidence attesting to the absence of liens, lien rights, rights of parties in
possession (other than Tenant and residents of the facility) and other
encumbrances other than the Permitted Exceptions naming both Buyer and Title
Company as benefited parties, so as to enable Title Company to delete the
"standard" exceptions for such matters from Buyer's owner's policy of title
insurance and otherwise insure any "gap" period occurring between the Closing
and the recordation of the closing documents;
(2) A duly executed Warranty Deed with respect to the Premises
subject to no exceptions other than the Permitted Exceptions, in substantially
the form attached as Exhibit G, and otherwise as approved by Buyer and the Title
Company and revised as needed to conform to the requirements of state law for
the state in which the Premises are located;
(3) An Assignment of Licenses, Permits, Plans, Contracts and
Warranties with respect to the Premises in substantially the form attached as
Exhibit E, together with all of the documents assigned thereby, assigning and/or
reserving unto the Tenant, however, (i) the right to enforce the same during the
term of the Lease; and (ii) specific operating licenses which Buyer has approved
in its reasonable discretion as necessary for Tenant to retain for proper
licensing and operation of the Facility, as such term is defined in the Lease;
(4) Three (3) signed counterparts of the closing statement;
(5) An opinion from Seller's and Tenant's counsel on matters
and in the form reasonably satisfactory to Buyer and relating to due
organization and good standing of Seller and Tenant, the due authorization,
execution and delivery of the closing documents delivered by Seller, Tenant and
such other related parties involved in the transaction as Buyer may reasonably
require, and the enforceability of the Lease against Tenant and the Guaranty
against Guarantor;
(6) An appropriate FIRPTA Affidavit or Certificate evidencing
that Seller is not a foreign person or entity under Section 1445(f)(3) of the
Internal Revenue Code, as amended;
(7) All certificates of insurance, insuring Buyer as the owner
of the Premises, which are required by the Lease to be furnished by the Tenant
to the landlord;
(8) The Guaranty;
(9) Two (2) duly executed counterparts of an earn out
agreement to be entered into between Seller and Buyer in the form approved by
Seller and Buyer and relating to potential earn out amounts which may be earned
in the future by Seller (the "Earn Out Agreement") pursuant to the Term Sheet;
(10) Two (2) duly executed counterparts of the Escrow
Agreement;
(11) Two duly executed counterparts of a right of first offer
agreement to be entered into between Tenant and Buyer in the form approved by
Tenant and Buyer and relating to the rights granted by Buyer to Seller in
respect of certain potential offers to purchase the Property (the "First Offer
Agreement") (the final negotiated First Offer Agreement shall in any event
provide that, in the event Buyer and Tenant cannot agree on a mutually
acceptable price and terms, the Buyer may seek other offers without further
obligation to the Tenant, except that Buyer cannot sell for a price that is
lower than the price offered by the Tenant);
(12) INTENTIONALLY OMITTED;
(13) INTENTIONALLY OMITTED;
(14) One (1) counterpart of the Lease duly executed by Tenant;
(15) A xxxx of sale conveying to Buyer title to the P&E;
(16) Certified copies of applicable resolutions and
certificates of incumbency with respect to the Seller, Tenant and such other
related parties involved in the transaction as Buyer may reasonably require;
(17) A certificate of a duly authorized officer of Seller
confirming the continued truth and accuracy of the representations and
warranties of the Seller made in this Agreement; and
(18) Such other closing documents as are reasonably necessary
and proper in order to consummate the transaction contemplated by this
Agreement, including those (if any) required to be delivered by Seller pursuant
to Section 5(d) above.
(b) Buyer shall deliver to Seller:
(1) The Purchase Price, less all the deductions, prorations,
and credits provided for herein;
(2) Three (3) duly executed counterparts of the closing
statement;
(3) Two (2) duly executed counterparts of the Earn Out
Agreement;
(4) Two (2) duly executed counterparts of the Escrow
Agreement;
(5) Two (2) duly executed counterparts of the First Offer
Agreement; and
(6) One (1) counterpart of the Lease duly executed by Buyer;.
7. Closing and Other Costs, Adjustments and Prorations. The Closing
costs shall be allocated and other closing adjustments and prorations made
between Seller and Buyer as follows:
(a) The Seller shall be charged with the following items, all of
which shall be credited against, and shall reduce dollar-for-dollar, the
Purchase Price payable to Seller at the Closing: the usual and customary costs
and expenses set forth in a settlement statement with respect to a conveyance of
this nature (excluding only those expenses specifically described below as the
responsibility of Buyer) including without limitation (i) all real estate
conveyance taxes and other transfer taxes, if any, imposed by state or local
authorities (including those transfer taxes customarily paid by a grantee) and
all recording charges; (ii) costs of removing any lien, assessment or
encumbrance required to be discharged hereunder in order to convey title to the
Premises as herein provided, including, without limitation, any prepayment
penalties or fees incurred in connection therewith; (iii) the cost of the
owner's policy of title insurance (ALTA Form, including any additional premiums
to delete the "standard" exceptions for parties in possession, matters of survey
and construction lien claims, and to issue such Endorsements as Buyer may
request provided the same are permitted by law and are customary in similar
commercial transactions); (iv) the cost of the architect's and engineer's
certificates required hereunder; (v) legal fees and expenses of Seller; (vi) the
fee, if any, required by the manufacturer for the transfer by Seller to Buyer of
the manufacturer's roof membrane warranty for the building; and (vii) Seller's
Reimbursement to be credited to Buyer at Closing as reimbursement for Buyer's
third-party inspection, review and other acquisition costs.
(b) The Buyer shall be charged with the following items in
addition to the Purchase Price payable to Seller at Closing: (i) fees and
expenses of Buyer's counsel; (ii) recording costs for the deed; and (iii)
Buyer's third-party inspection, review and other acquisition costs to the extent
the same exceed the Seller's Reimbursement and are not otherwise specifically to
be paid by Seller pursuant to the terms of this Agreement.
(c) As the Lease is to be entered into between Buyer and Tenant
effective as of the Closing Date, it shall not be necessary for rent or any
other charges payable under the Lease to be prorated at Closing, and all rent
and other charges payable under the Lease shall be the property of Buyer.
(d) Taxes, assessments and other charges shall not be prorated as
of Closing, as Seller shall be responsible for such matters relating to the
period prior to Closing, and Tenant shall be responsible for such matters from
and after Closing. Certified, confirmed and ratified special assessments liens
as of the Closing Date are to be paid by Seller. Seller shall also pay and be
responsible for any "rollback" taxes or retroactively assessed taxes which arise
out of or relate to any prior use of the Premises or any improper or inadequate
assessment of the Premises for the period prior to the Closing, which obligation
shall expressly survive the Closing.
8. Inspections. Subject to the rights of any tenant or other party
lawfully in occupancy, Buyer through its agents, employees and independent
contractors shall have the right from time to time prior to the Closing Date,
upon prior notice to Seller, to enter the Premises for the purpose of inspecting
the same and performing environmental and other tests thereon. Buyer shall
indemnify and hold harmless Seller and its contractors, agents, employees and
affiliates from and against any claims, losses, damages and costs arising out of
any inspection of and testing at the Premises by Buyer, its agents and
representatives. Buyer shall not, and shall not permit its agents or
representatives to, disrupt Seller's or Tenant's activities at the Premises.
9. Title to Premises; State of Title to be Conveyed. At the Closing,
Buyer shall receive fee simple title to the Premises free from all liens,
encumbrances, restrictions, rights-of-way and other matters, excepting only the
Permitted Exceptions and any other matter consented to in writing by Buyer
pursuant to Section 12(a) hereof.
10. Escrow Agent. By its execution hereof, Escrow Agent shall accept
the escrow contemplated herein. The Xxxxxxx Money Deposit shall be held by the
Escrow Agent, in trust, on the terms hereinafter set forth.
(a) After clearance of funds, the Xxxxxxx Money Deposit shall be
held by Escrow Agent in an account meeting the requirements of Section 3(c)
above, and shall not be commingled with any funds of the Escrow Agent or others.
Escrow Agent shall promptly advise Seller and Buyer that the Xxxxxxx Money
Deposit is made and the account number under which it has been deposited
following clearance of funds.
(b) The Escrow Agent shall deliver the Xxxxxxx Money Deposit to
Seller or to Buyer, as the case may be, under the following conditions:
(1) To Seller on the Closing Date, provided Closing shall
occur pursuant to the Agreement.
(2) To Seller upon receipt of written demand therefor
("Seller's Demand for Deposit") stating that Buyer has defaulted in the
performance of Buyer's obligation to close under this Agreement and the facts
and circumstances underlying such default, provided, however, that the Escrow
Agent shall not honor such demand until more than ten (10) days after the Escrow
Agent shall have sent a copy of such demand to Buyer in accordance with the
provisions of Section 10(c) of this Agreement nor thereafter, if the Escrow
Agent shall have received a "Notice of Objection" (as hereinafter defined) from
Buyer within such ten (10) day period.
(3) To Buyer upon receipt of written demand therefor ("Buyer's
Demand for Deposit") stating that this Agreement has been terminated in
accordance with the provisions hereof for any reason other than as provided in
Section 10(b)(1) above, or that Seller has defaulted in the performance of any
of Seller's obligations under this Agreement and the facts and circumstances
underlying the same; provided, however, that the Escrow Agent shall not honor
such demand until more than ten (10) days after the Escrow Agent shall have sent
a copy of such demand to Seller in accordance with the provisions of Section
10(c) of this Agreement nor thereafter, if the Escrow Agent shall have received
a Notice of Objection from Seller within such ten (10) day period.
(c) Within two (2) business days of the receipt by the Escrow
Agent of a Seller's Demand for Deposit or a Buyer's Demand for Deposit the
Escrow Agent shall send a copy thereof to the other party in the manner provided
in Section 16 of this Agreement. The other party shall have the right to object
to the delivery of the Deposit by sending written notice (the "Notice of
Objection") of such objection to the Escrow Agent in the manner provided in
Section 16 of this Agreement, which Notice of Objection shall be deemed null and
void and ineffective if such Notice of Objection is not received by the Escrow
Agent within the time periods prescribed in Section 10(b) of this Agreement.
Such notice shall set forth the basis for objecting to the delivery of the
Deposit. Upon receipt of a Notice of Objection, the Escrow Agent shall promptly
send a copy thereof to the party who sent the written demand.
(d) In the event the Escrow Agent shall have received the Notice
of Objection within the time periods prescribed in Section 10(b) of this
Agreement, the Escrow Agent shall continue to hold the Xxxxxxx Money Deposit
until (i) the Escrow Agent receives written notice from Seller and Buyer
directing the disbursement of the Xxxxxxx Money Deposit, in which case the
Escrow Agent shall then disburse the Xxxxxxx Money Deposit in accordance with
such joint direction, or (ii) litigation shall occur between Seller and Buyer,
in which event the Escrow Agent shall deliver the Xxxxxxx Money Deposit to the
clerk of the court in which said litigation is pending, or (iii) the Escrow
Agent takes such affirmative steps as the Escrow Agent may, at the Escrow
Agent's option, elect in order to terminate the Escrow Agent's duties including,
but not limited to, depositing the Xxxxxxx Money Deposit in the appropriate
court for the County in which the Premises is located, and bringing an action
for interpleader, the costs thereof to be deducted from the amount so deposited
into the registry of the court; provided, however, that upon disbursement of the
deposited amount pursuant to court order or otherwise, the prevailing party
shall be entitled to collect from the losing party the amount of such costs and
expenses so deducted by the Escrow Agent.
(e) The duties of the Escrow Agent are only as herein specifically
provided, and Escrow Agent shall incur no liability whatever except for willful
misconduct or gross negligence as long as the Escrow Agent has acted in good
faith. The Seller and Buyer each release the Escrow Agent from any act done or
omitted to be done by the Escrow Agent in good faith in the performance of its
duties hereunder.
(f) Upon making delivery of the Xxxxxxx Money Deposit in the
manner herein provided, the Escrow Agent shall have no further liability
hereunder.
(g) The Escrow Agent shall either execute this Agreement or
indicate in writing that it has accepted the role of Escrow Agent pursuant to
this Agreement which in either case will confirm that the Escrow Agent is
holding and will hold the Xxxxxxx Money Deposit in escrow, pursuant to the
provisions of this Agreement.
11. Covenants, Representations and Warranties(a) . In order to induce
Buyer to enter into this Agreement and purchase the Premises, Seller makes the
following covenants, agreements, representations and warranties, all of which
shall survive the Closing and the purchase and sale of the Premises:
(1) Seller has obtained all necessary authorizations and
consents to enable it to execute and deliver this Agreement and to consummate
the transaction contemplated hereby, including without limitation all
authorizations and consents required to be obtained from governmental
authorities during the course of, and upon completion of, construction of the
Improvements.
(2) Seller holds fee simple title to the Premises, free of all
liens, assessments and encumbrances except for the Permitted Exceptions, and
liens and encumbrances which will be paid and discharged or otherwise released
at or prior to the Closing. Seller has no knowledge of any condition or state of
facts which would preclude, limit or restrict the business operations
contemplated, pursuant to the terms of the Lease, to be conducted by Tenant at
the Premises.
(3) Except for construction warranties with respect to the
Improvements, there are no service or maintenance contracts affecting the
Premises to which Buyer will be bound upon Closing.
(4) The Premises and the proposed use thereof by Tenant and
the condition thereof do not violate in any material respect any applicable deed
restrictions, zoning or subdivision regulations, urban redevelopment plans,
local, state or federal environmental law or regulation or any building code or
fire code applicable to the Premises ("Applicable Laws and Restrictions"), and
are not designated by any governmental agency to be in a flood plain area.
Seller has, on or before the Effective Date, provided written notice to Buyer of
any continuing, alleged or potential violations of Applicable Laws and
Restrictions known to Seller.
(5) As of the Closing Date (i) there shall exist no event
which, with the giving of notice or the passage of time or both, would
constitute an Event of Default under the Lease; (ii) Tenant shall not have any
defense, set-off or counterclaim in respect of its obligations under the Lease
arising as a result of Seller's actions or activities, or those of Seller's
employees, agents or contractors; and (iii) all leasing commissions and fees
with respect to the Lease, if any, have been paid in full by Seller or Tenant.
(6) There is no pending or, to Seller's knowledge, threatened
litigation or other proceeding affecting the title to or the use or operation of
the Premises.
(7) Seller is not a "foreign person" within the meaning of
Section 1445(f)(3) of the Internal Revenue Code of 1986, as amended, and Seller
shall certify its taxpayer identification number at Closing.
(8) To Seller's knowledge, there are no federal, state, county
or municipal plans to restrict or change access from any highway or road to the
Premises.
(9) The Premises are a separate parcel for real estate tax
assessment purposes.
(10) All of the financial data regarding the construction,
ownership and operation of the Premises that Seller has provided to Buyer is
true, complete and correct.
(11) To the best of Seller's knowledge the Improvements have
been constructed in accordance with (i) the Plans and (ii) applicable building
codes, laws and regulations in a good, substantial and workmanlike manner.
(12) No Hazardous Materials are, will be, or to the best of
Seller's knowledge, have been, stored, treated, disposed of or incorporated
into, on or around the Premises in violation of any applicable statutes,
ordinances or regulations; the Premises are in material compliance with all
applicable environmental, health and safety requirements; any business currently
or, to the best of Seller's knowledge, heretofore operated on the Premises has
disposed of its waste in accordance with all applicable statutes, ordinances and
regulations; and Seller has no notice of any pending or, to the best of Seller's
knowledge, threatened action or proceeding arising out of the condition of the
Premises or any alleged violation of environmental, health or safety statutes,
ordinances or regulations.
(13) Seller has operated the Improvements in compliance with
all applicable federal and state laws and regulations, including, but not
limited to, Medicare and Medicaid laws and regulations.
(14) Seller specifically acknowledges and understands that
where Seller knows of any fact(s) materially affecting the value or desirability
of the Premises, whether said fact(s) is/are readily observable or not, Seller
hereby assumes and accepts a duty to disclose said fact(s) to Buyer. Seller
warrants that, other than as may be disclosed in the foregoing representations
and warranties, Seller has no knowledge of any other fact(s) materially
affecting the value or desirability of the Premises whether or not said fact(s)
is/are readily observable.
All of the representations, warranties and agreements of Seller set
forth herein and elsewhere in this Agreement shall be true upon the execution of
this Agreement and shall be reaffirmed and repeated in writing at and as of the
Closing Date, but not subsequent to the Closing Date, and shall survive the
Closing Date.
(b) In order to induce Seller to enter into this Agreement and to
induce Seller to sell the Premises, Buyer makes the following covenants,
agreements, representations and warranties, all of which shall survive the
Closing and the purchase and sale of the Premises:
(1) Buyer is a corporation duly organized and validly existing
and in good standing under the laws of the State of Florida. Buyer has all
requisite power and authority under the laws of the State of Florida and its
charter documents to enter into and perform its obligations under this Agreement
and to consummate the transactions contemplated hereby.
(2) Buyer has taken all necessary action to authorize the
execution, delivery and performance of this Agreement, and upon the execution
and delivery hereof, this Agreement shall constitute the valid and binding
agreement of Buyer.
12. Covenants of Seller Pending Closing. Between the date hereof and
the Closing Date:
(a) Seller shall not enter into any contracts for services or
otherwise that may be binding upon the Premises or upon the Buyer subsequent to
Closing, nor grant or permit the granting of any easements or licenses affecting
the Premises, nor take or permit any legal action in connection with the
Premises which will affect Buyer's title to the Premises, nor enter into or
consent to any leases of space in the Premises other than residential leases
entered into in the ordinary course of Seller's business, without the express
prior written consent of Buyer. Buyer's consent may be withheld at Buyer's sole
option; however, Buyer's response to any of the foregoing shall not be
unreasonably delayed and, if denied, shall be accompanied by a reasonably
detailed explanation of the reason for such denial.
(b) Seller shall within two (2) business days following receipt
thereof (or the day of receipt if received the day prior to the Closing Date)
provide Buyer with copies of any letters or notices received by Seller relating
to or in any manner affecting the Premises.
(c) Seller shall, at no expense to Seller, reasonably cooperate
with Buyer in connection with Buyer's obtaining any insurance which may be
required to be maintained by Buyer with respect to the Premises following the
Closing.
13. Eminent Domain. If prior to the date of the Closing, Seller
acquires knowledge of any pending or threatened action, suit or proceeding to
condemn or take all or any part of the Premises under the power of eminent
domain, then Seller shall immediately give notice thereof to Buyer. If such
condemnation would otherwise give Tenant the option to reduce or xxxxx rent or
terminate the Lease, then, at Buyer's option, buyer may terminate this
Agreement, whereupon the full amount of the Xxxxxxx Money Deposit shall be paid
by Escrow Agent to Buyer, and all parties shall thereupon be relieved of all
further liability hereunder. If such condemnation would not otherwise give
Tenant the option to reduce or xxxxx rent or terminate the Lease, or if it gives
Tenant such option and Tenant waives such option in writing, then Seller will
promptly commence the reconstruction and the parties shall proceed with the
Closing in accordance with, and subject to, the terms hereof.
14. Casualty. If prior to the date of the Closing the Premises, or any
portion thereof, shall be damaged or destroyed by reason of fire, storm,
accident or other casualty, then Seller shall immediately give notice thereof to
Buyer. If such casualty would otherwise give Tenant the option to reduce or
xxxxx rent or terminate the Lease, then Buyer, at its option, may terminate this
Agreement, whereupon the full amount of the Xxxxxxx Money Deposit shall be paid
by Escrow Agent to Buyer, and all parties shall thereupon be relieved of all
further liability hereunder. If such casualty would not otherwise give Tenant
the option to reduce or xxxxx rent or terminate the Lease, or if it gives Tenant
such option and Tenant waives such option in writing, then the parties shall
proceed with the Closing in accordance with, and subject to the terms hereof. In
such event, all such proceeds of any insurance plus the amount of any deductible
(which shall be paid by Seller) will be applied toward reconstruction.
15. Remedies Upon Default.
(a) In the event Buyer breaches or defaults under any of the terms
of this Agreement prior to or on the Closing Date, the sole and exclusive remedy
of Seller shall be to receive from Escrow Agent the full amount of the Xxxxxxx
Money Deposit, and Buyer shall have no right therein. Buyer and Seller
acknowledge and agree that (i) the Xxxxxxx Money Deposit and any interest earned
thereon if received in accordance with the terms of this Agreement is a
reasonable estimate of and bears a reasonable relationship to the damages that
would be suffered and costs incurred by Seller as a result of having withdrawn
the Premises from sale and the failure of Closing to occur due to a default of
Buyer under this Agreement; (ii) the actual damages suffered and costs incurred
by Seller as a result of such withdrawal and failure to close due to a default
of Buyer under this Agreement would be extremely difficult and impractical to
determine; (iii) Buyer seeks to limit its liability under this Agreement to the
amount of the Xxxxxxx Money Deposit and any interest earned thereon if the
transaction contemplated by this Agreement does not close due to a default of
Buyer under this Agreement; and (iv) such amount shall be and constitute valid
liquidated damages.
(b) In the event Seller defaults under any of the terms of this
Agreement on or prior to the Closing Date (including, without limitation, by
failing or refusing to deliver any items required to be delivered pursuant to
Section 5 or Section 6 of this Agreement), Buyer shall be entitled to (i)
receive a refund of the Xxxxxxx Money Deposit and terminate this Agreement, or
(ii) compel specific performance of this Agreement, in which event Buyer may
also recover its damages incurred as a result of such default, including but not
limited to all of its costs and attorneys' fees in seeking such specific
performance, or (iii) if specific performance is not possible or if Buyer elects
not to pursue specific performance, recover damages incurred as a result of such
default, which shall include damages resulting from a breach of any warranty or
representation of Seller as of the Closing even if the same is not discovered
until after the Closing, to the extent the same survive the Closing.
16. Notices. All notices, elections, requests and other communication
hereunder shall be in writing and shall be deemed given (i) when personally
delivered, or (ii) two (2) business days after being deposited in the United
States mail, postage prepaid, certified or registered, or (iii) the next
business day after being deposited with a recognized overnight mail or courier
delivery service, or (iv) when transmitted by facsimile or telecopy
transmission, with receipt acknowledge upon transmission; addressed as follows
(or to such other person or at such other address, of which any party hereto
shall have given written notice as provided herein):
If to Seller: American Retirement Corporation
000 Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxxxx, Xxxxxxxxx 00000
Attn: Mr. Xxxxxx Xxxxx, Chief Financial Officer
Phone: (000) 000-0000
Fax: (000) 000-0000
with a copy to: Bass, Xxxxx & Xxxx PLC
000 Xxxxxxxxx Xxxxxx., Xxxxx 0000
Xxxxxxxxx, Xxxxxxxxx 00000
Attn: T. Xxxxxx Xxxxx, Esquire
Phone: (000) 000-0000
Fax: (000) 000-0000
If to Buyer: CNL Retirement Corp.
CNL Center at City Commons
000 Xxxxx Xxxxxx Xxxxxx
Xxxxxxx, Xxxxxxx 00000
Attention: Mr. Xxxx Xxxxxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
with a copy to: Lowndes, Drosdick, Doster, Xxxxxx
& Xxxx, P.A.
000 Xxxxx Xxxx Xxxxx
Post Office Box 2809
Xxxxxxx, Xxxxxxx 00000
Attention: Xxxxx X. Xxxxxxxx, Esquire
Phone: (000) 000-0000
Fax: (000) 000-0000
If to Escrow Agent: Lawyer's Title Insurance Corporation
Riverwood 100 Building
0000 Xxxxxxxxx Xxxxxxx X.X., Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
17. Brokerage Commissions. Seller and Buyer each warrant to the other
party that no finders or brokers have been involved with the introduction of
Buyer and Tenant and/or the execution and delivery of the Lease and the leasing
of the Premises pursuant thereto. In the event of a breach of the foregoing
warranties, the breaching party agrees to save, defend, indemnify and hold
harmless the non-breaching party from and against any claims, losses, damages,
liabilities and expenses, including but not limited to attorneys' fees. The
obligations of this Section shall survive the Closing or earlier termination of
this Agreement.
18. Miscellaneous Provisions.
(a) Assignment; Binding Effect. Buyer may assign all of its rights
and obligations hereunder on or effective as of the Closing Date of this
Agreement without the written consent of Seller to any entity which is owned or
controlled by Buyer or any affiliate of Buyer provided, however, that any
assignee of Buyer shall assume all of the obligations of Buyer hereunder. In the
event of any permitted assignment hereunder Buyer shall thereupon be relieved of
all further liability under this Agreement; except that the Xxxxxxx Money
Deposit shall not be released or otherwise adversely affected as a result of any
such assignment. Seller shall not have the right to assign its rights and
obligations hereunder. Subject to the foregoing, this Agreement shall be binding
upon and shall inure to the benefit of Seller and Buyer and their respective
successors and assigns.
(b) Captions. The several headings and captions of the Sections
and subsections used herein are for convenience of reference only and shall in
no way be deemed to limit, define or restrict the substantive provisions of this
Agreement.
(c) Entire Agreement; Recording. This Agreement constitutes the
entire agreement of Buyer and Seller with respect to the purchase and sale of
the Premises, and supersedes any prior or contemporaneous agreement with respect
thereto. No amendment or modification of this Agreement shall be binding upon
the parties unless made in writing and signed by both Seller and Buyer. Neither
this Agreement nor any Memorandum thereof shall be recorded by any party and, if
recorded by any party, the other party hereto may immediately terminate all of
its obligations under this Agreement.
(d) Time of Essence. Time is of the essence with respect to the
performance of all of the terms, conditions and covenants of this Agreement.
(e) Cooperation. Buyer and Seller shall cooperate fully with each
other to carry out effectively the purchase and sale of Premises in accordance
herewith and the satisfaction and compliance with all of the conditions and
requirements set forth herein, and shall execute such instruments and perform
such acts as may be reasonably requested by either party hereto.
(f) Governing Law. This Agreement and the rights of the parties
hereunder shall be governed by and construed in accordance with the laws and
customs of the State in which the Premises are located.
(g) Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts each
of which, when so executed, shall be deemed an original, but all such
counterparts shall constitute but one and the same instrument.
(h) Attorneys' Fees. In the event any party to this Agreement
should bring suit against the other party in respect to any matters provided for
herein, the prevailing party shall be entitled to recover from the
non-prevailing party its costs of court, legal expenses and reasonable
attorneys' fees. As used herein, the "prevailing party" shall include, without
limitation, any party who dismisses an action for recovery hereunder in exchange
for payment of the sums allegedly due, performance of covenants allegedly
breached or consideration substantially equal to the relief sought in the
action.
(i) Certain References. As used in this Agreement, the words
"hereof," "herein," "hereunder" and words of similar import shall mean and refer
to this entire Agreement and not to any particular article, section or paragraph
of this Agreement, unless the context clearly indicates otherwise.
(j) Time Periods. Unless otherwise expressly provided herein, all
periods for performance, approval, delivery or review and the like shall be
determined on a "calendar" day basis. If any day for performance, approval,
delivery or review shall fall on a Saturday, Sunday or legal holiday, the time
therefor shall be extended to the next business day.
(k) Authority. Each person executing this Agreement, by his or her
execution hereof, represents and warrants that they are fully authorized to do
so, and that no further action or consent on the part of the party for whom they
are acting is required to the effectiveness and enforceability of this Agreement
against such party following such execution.
(l) Severability. If any provision of this Agreement should be
held to be invalid or unenforceable, the validity and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.
(m) Waiver. One or more waivers of any covenant, term or condition
of this Agreement by either party shall not be construed as a waiver of any
subsequent breach of the same covenant, term or condition. The consent or
approval by either party to or of any act by the other party requiring such
consent or approval shall not be deemed to waiver or render unnecessary consent
to or approval of any subsequent similar act.
(n) Relationship of the Parties. Nothing herein contained shall be
deemed or construed by the parties hereto, nor by any third party, as creating
the relationship of principal and agent or of partnership or of joint venture
between the parties hereto, it being understood and agreed that no provision
contained herein, nor any acts of the parties hereto shall be deemed to create
the relationship between the parties hereto other than the relationship of
seller and buyer.
(o) Termination. This Agreement shall be void and of no force and
effect unless signed by Seller and delivered to Buyer no later than five (5)
days following the date of Buyer's execution of this Agreement.
[SIGNATURES APPEAR ON NEXT PAGE]
IN WITNESS WHEREOF, the parties hereto have executed this Real Estate Purchase
and Sale Contract on the date first above written.
BUYER:
CNL RETIREMENT CORP.,
a Florida corporation
By: /s/ Xxxxxxx X. Xxxxxxxx
Name: Xxxxxxx X. Xxxxxxxx
Title: Executive VP
Date: February 11, 2002
SELLER:
AMERICAN RETIREMENT CORPORATION, a Tennessee corporation
By: /s/ H. Xxxx Xxxxxxxx
Name: H. Xxxx Xxxxxxxx
Title: EVP
Date: February 11, 2002
ESCROW AGENT:
LAWYERS TITLE INSURANCE CORPORATION
By: /s/ Xxxxx Xxxxxx
Name: Xxxxx Xxxxxx
Date: February 15, 2002
