EXHIBIT 99.1
PURCHASE AGREEMENT
This Purchase Agreement (this "Agreement"), dated as of February 25,
2002, is between Xxxxx & Steers Quality Income Realty Fund, Inc. (the
"PURCHASER") and Xxxxxxxxxx Realty Investors, a Texas real estate investment
trust (the "SELLER").
WHEREAS, the PURCHASER, desires to purchase from SELLER, and SELLER
desires to issue and sell to PURCHASER, 198,098 of its common shares of
beneficial interest (the "Shares"); and
WHEREAS, the PURCHASER intends to enter into an underwriting agreement (the
"Underwriting Agreement") with Xxxxxxx Xxxxx & Co., Xxxxxxx Lynch, Pierce,
Xxxxxx & Xxxxx Incorporated and certain underwriters named therein
(collectively, the "Underwriters") with respect to the issue and sale by the
PURCHASER and the purchase by the Underwriters of common shares of the PURCHASER
in an amount as specified therein, such proceeds being sufficient to consummate
the transactions contemplated by this Agreement (the "Financing").
NOW, THEREFORE, in consideration of the mutual promises herein
contained, the parties hereto agree as follows:
1. Purchase and Sale. Subject to the terms and conditions hereof,
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the PURCHASER hereby agrees to purchase from SELLER, and SELLER agrees to issue
and sell to PURCHASER, the Shares at a price per share of $50.48 for an
aggregate purchase price of $9,999,987 (the "Purchase Price").
2. Representations and Warranties of PURCHASER. The PURCHASER
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represents and warrants that:
(a) Due Authorization. The PURCHASER is duly authorized
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to purchase the Shares. This Agreement has been duly authorized, executed
and delivered by the PURCHASER and constitutes a legal, valid and binding
agreement of the PURCHASER, enforceable against the PURCHASER in accordance
with its terms except as may be limited by (i) the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights or remedies of creditors or (ii) the effect of general
principles of equity, whether enforcement is considered in a proceeding in
equity or at law and the discretion of the court before which any
proceeding therefor may be brought.
(b) Prospectus and Prospectus Supplement. The PURCHASER has
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received a copy of SELLER's Prospectus dated October 30, 2001 and
Prospectus Supplement dated February 25, 2002 (collectively, the
"Prospectus").
(c) Not a Party in Interest; Disqualified Person. With
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respect to SELLER, PURCHASER is not a "party in interest" as such phrase is
used in the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or a "disqualified person" as such phrase is used in the
Internal Revenue Code of 1986, as amended ("Code").
(d) Not a Prohibited Transaction. The purchase of the
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Shares from SELLER will not give rise to a nonexempt "prohibited
transaction" under ERISA or the Code.
3. Representations and Warranties of SELLER. SELLER represents
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and warrants that:
(a) Due Authorization. This Agreement has been duly
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authorized, executed and delivered by SELLER and constitutes a legal, valid
and binding agreement of SELLER, enforceable against SELLER in accordance
with its terms except as may be limited by (i) the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights or remedies of creditors or (ii) the effect of general
principles of equity, whether enforcement is considered in a proceeding in
equity or at law and the discretion of the court before which any
proceeding therefor may be brought.
(b) Organization and Authority. SELLER has been duly
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organized and isvalidly existing under the laws of the State of Texas, with
full power and authority to own or lease and occupy its properties and
conduct its business as described in the Prospectus.
(c) Issuance of the Shares. The Shares have been duly
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and validly authorized and, when issued and delivered pursuant to this
Agreement, will be fully paid and nonassessable and will be listed, subject
to notice of issuance, on the New York Stock Exchange effective as of the
Closing (as defined in Paragraph 5 of this Agreement).
(d) Absence of Conflicts. The execution, delivery and
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performance of this Agreement and the consummation of transactions
contemplated herein do not and will not result in the creation or
imposition of any lien, charge or encumbrance upon any property or assets
of the SELLER./
4. Conditions to Obligations of the Parties. The obligations of
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the parties hereto to effect the transactions contemplated by this Agreement
shall be subject to the satisfaction or waiver at or prior to the Closing Time
of the following conditions:
(a) each of the representations and warranties of the
parties hereto shall be true and correct in all respects;
(b) the PURCHASER shall have received the proceeds of the
Financing on terms that are consistent with the Underwriting Agreement; and
(c) at Closing (as defined below), the PURCHASER shall have
received the favorable opinion of counsel to the SELLER and a certificate
2
of the officers of the SELLER, dated as of the Closing, in form and
substance reasonably satisfactory to the PURCHASER.
5. Closing. The transactions contemplated hereby shall be
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consummated on February 28, 2002, or such other time as shall be agreed upon by
the PURCHASER and the SELLER (such time and date of payment and delivery being
herein called the "Closing"). At the Closing, SELLER shall cause its transfer
agent to deposit the Shares with the Depositary Trust Company, which shall
deliver the Shares to a custodian on behalf of the PURCHASER. Upon such
delivery, the PURCHASER shall wire transfer to an account designated by SELLER
immediately available funds in the amount of the Purchase Price for the Shares.
6. Governing Law. This Agreement shall be construed in accordance
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with and governed by the substantive laws of the State of New York.
7. Entire Agreement. This Agreement constitutes the entire
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agreement between the parties hereto with respect to the subject matter hereof
and may be amended only in a writing that is executed by each of the parties
hereto.
8. Counterparts. This Agreement may be executed in separate
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counterparts, each of which shall be deemed an original, and all of which
together shall be deemed to constitute one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered as of the date first above written.
XXXXXXXXXX REALTY INVESTORS
By: /s/ Xxxxxxx X. Xxxxxxx
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Name: Xxxxxxx X. Xxxxxxx
Title: Senior Vice President and Chief
Financial Officer
XXXXX & STEERS QUALITY INCOME REALTY FUND, INC.
By: /s/ Xxxxxx Xxxxxx
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Name: Xxxxxx Xxxxxx
Title: Chairman
