Exhibit 10.369
AMENDED AND RESTATED
PURCHASE AND SALE AGREEMENT
LINCOLN PARK SHOPPING CENTER
DALLAS, TEXAS
BETWEEN
NORTH LINCPARK, LTD.,
AS SELLER
AND
INLAND REAL ESTATE ACQUISITIONS, INC.
AS PURCHASER
AUGUST 6, 2004
TABLE OF CONTENTS
Page
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1. The Property.......................................................................................1
1.1 Description.......................................................................................1
1.2 "As-Is" Purchase..................................................................................2
1.3 Agreement to Convey...............................................................................3
2. Price and Payment..................................................................................4
2.1 Purchase Price....................................................................................4
2.2 Payment...........................................................................................4
2.3 Closing...........................................................................................4
3. Inspections and Approvals..........................................................................5
3.1 Inspections.......................................................................................5
3.2 Title and Survey..................................................................................7
3.3 Contracts.........................................................................................8
3.4 Permitted Encumbrances............................................................................8
3.5 Purchaser's Right to Terminate....................................................................9
3.6 Delivery of Title Policy at Closing...............................................................9
4. Seller's Covenants For Period Prior to Closing.....................................................9
4.1 Insurance.........................................................................................9
4.2 Operation.........................................................................................9
4.3 New Contracts....................................................................................10
4.4 New Leases.......................................................................................10
4.5 Listing and Other Offers.........................................................................10
4.6 Tenant Estoppels.................................................................................10
5. Representations and Warranties....................................................................10
5.1 By Seller........................................................................................10
5.2 By Purchaser.....................................................................................11
5.3 Brokers..........................................................................................12
6. Costs and Prorations..............................................................................12
6.1 Purchaser's Costs................................................................................12
6.2 Seller's Costs...................................................................................13
6.3 Prorations.......................................................................................13
6.4 Taxes............................................................................................13
6.5 In General.......................................................................................14
6.6 Purpose and Intent...............................................................................14
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7. Damage, Destruction or Condemnation...............................................................14
7.1 Material Event...................................................................................14
7.2 Immaterial Event................................................................................,14
7.3 Termination and Return of Deposit................................................................14
8. Notices...........................................................................................14
9. Closing and Escrow................................................................................14
9.1 Escrow Instructions..............................................................................14
9.2 Seller's Deliveries..............................................................................14
9.3 Purchaser's Deliveries...........................................................................14
9.4 Possession.......................................................................................14
9.5 Insurance........................................................................................14
9.6 Notice Letters...................................................................................14
9.7 Post-Closing Collections.........................................................................14
10. Default; Failure of Condition....................................................................14
10.1 Purchaser Default...............................................................................14
10.2 Seller Default..................................................................................14
10.3 Failure of Condition............................................................................14
10.4 Breach..........................................................................................14
11. Miscellaneous....................................................................................14
11.1 Entire Agreement................................................................................14
11.2 Severability....................................................................................14
11.3 Applicable Law..................................................................................14
11.4 Assignability...................................................................................14
11.5 Successors Bound................................................................................14
11.6 INTENTIONALLY DELETED...........................................................................19
11.7 No Public Disclosure............................................................................14
11.8 Captions........................................................................................14
11.9 Attorneys' Fees.................................................................................14
11.10 No Partnership.................................................................................14
11.11 Time of Essence................................................................................14
11.12 Counterparts...................................................................................14
11.13 Recordation....................................................................................14
11.14 Proper Execution...............................................................................14
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TABLE OF CONTENTS
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11.15 Tax Protest....................................................................................14
11.16 Survival and Limitation of Representations and Warranties;
Seller's Knowledge.............................................................................14
11.17 Time to Execute and Deliver....................................................................14
11.18 No Processing..................................................................................14
11.19 Calculation of Time Periods....................................................................14
11.20 INTENTIONALLY DELETED..........................................................................14
11.21 Limitation of Liability........................................................................14
11.22 Management Agreement...........................................................................21
11.23 Effective Date.................................................................................21
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LIST OF EXHIBITS
Exhibit 1.1.1 Legal Description
Exhibit 1.1.3 Inventory of Personal Property
Exhibit 1.1.6 Schedule of Leases
Exhibit 3.3 Schedule of Contracts
Exhibit 3.3.1 Lincoln Park Shopping Center Due Diligence Items
Exhibit 4.6 Form of Tenant Estoppel Certificate
Exhibit 9.2.1 Form of Special Warranty Deed
Exhibit 9.2.2 Form of Xxxx of Sale
Exhibit 9.2.3 Form of Assignment and Assumption of Leases
Exhibit 9.2.4 Form of Assignment and Assumption of Contracts
Exhibit 9.2.7 Form of Affidavit Pursuant to Foreign Investment and Real
Property Tax Act
Exhibit 9.2.9 Form of Tenant Notice Letter
Exhibit 9.2.11 Form of KPMG Audit Letter
Exhibit 9.3 ERISA Certificate
Exhibit 11.22 Management and Leasing Agreement Business Terms
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TERM SHEET
PURCHASER: INLAND REAL ESTATE ACQUISITIONS, INC.
NOTICE ADDRESS: 0000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx Xxxx/G. Xxxxxx Xxxxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
With a copy to: THE INLAND REAL ESTATE GROUP, INC.
0000 Xxxxxxxxxxx Xxxx
Xxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxx, Esq.
Phone: (000) 000-0000
Fax: (000) 000-0000
SELLER: NORTH LINCPARK, LTD.
NOTICE ADDRESS: 0000 Xxxxxxx Xxxxx
000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxx/Xxxxxxx X. Xxxxxxxxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
With a copy to: c/o Invesco Real Estate
0000 XXX Xxxxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx X. Xxxxxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
With a copy to: Stutzman, Bromberg, Esserman & Xxxxxx
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Attention: Xxxx X. Xxxxx, Xx.
Phone: (000) 000-0000
Fax: (000) 000-0000
PROPERTY: Xxxxxxx Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx Xxxxxxx
Xxxxxx, Xxxxx
PURCHASE PRICE: $47,550,000 [As such may be reduced in
accordance with Section 2.1]
APPROVAL DATE: September 7, 2004
CLOSING DATE: September 7, 2004
v
Lincoln Park Shopping Center
AMENDED AND RESTATED
PURCHASE AND SALE AGREEMENT
THIS AMENDED AND RESTATED
PURCHASE AND SALE AGREEMENT (the "AGREEMENT"),
dated as of the 6th day of August, 2004 (the "EFFECTIVE DATE"), is made by and
between NORTH LINCPARK, LTD., a
Texas limited partnership ("SELLER"), and INLAND
REAL ESTATE ACQUISITIONS, INC., or nominee ("PURCHASER").
Purchaser and Seller entered into that certain
Purchase and Sale Agreement
dated as of the 6th day of August, 2004 concerning the Property (the "INITIAL
PURCHASE AND SALE AGREEMENT") and Purchaser and Seller desire to amend and
restate the Initial
Purchase and Sale Agreement in its entirety.
RECITALS:
Seller desires to sell certain improved real property commonly known as
Lincoln Park Shopping Center located on Northwest Highway at Central Expressway,
in the City of Dallas, Dallas County,
Texas, along with certain related personal
and intangible property, and Purchaser desires to purchase such real, personal
and intangible property.
NOW, THEREFORE, in consideration of the foregoing, of the covenants,
promises and undertakings set forth herein, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Seller and Purchaser agree as follows:
This Amended and Restated
Purchase and Sale Agreement supercedes and
restates in its entirety the Initial Purchase Agreement, such that the Initial
Purchase Agreement shall be of no force and effect.
1. THE PROPERTY.
1.1 DESCRIPTION. Subject to the terms and conditions of this Agreement,
and for the consideration herein set forth, Seller agrees to sell and
transfer, and Purchaser agrees to purchase and acquire the following
(collectively, the "PROPERTY"):
1.1.1 Certain land (the "LAND") located in the City of Dallas,
Dallas County,
Texas and more specifically described in EXHIBIT 1.1.1
attached hereto;
1.1.2 The buildings, structures, parking areas, other improvements
and fixtures now situated on the Land (the "IMPROVEMENTS");
1.1.3 All furniture, personal property, furnishings, machinery,
apparatus, appliances and equipment owned by Seller and currently used in
the operation, repair and maintenance of the Land and Improvements and
situated thereon (collectively, the "PERSONAL PROPERTY"), and generally
described on EXHIBIT 1.1.3 attached hereto. The Personal Property to be
conveyed is subject to depletions, replacements and additions in the
ordinary course of Seller's business;
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1.1.4 All of Seller's right, title, and interest in and to all
easements, hereditaments, and appurtenances belonging to or inuring to the
benefit of Seller and pertaining to the Land, if any;
1.1.5 All of Seller's right, title, and interest in and to any
street or road abutting the Land to the center lines thereof;
1.1.6 All of Seller's right, title, and interest in and to all
tenant leases or occupancy agreements in effect on the date of this
Agreement that affect all or any portion of the Land (together with all
amendments and modifications thereto, the "LEASES") which are identified
on the Schedule of Leases (herein so called) attached hereto as EXHIBIT
1.1.6, and any new Leases or Lease Modification (herein, a "LEASE
MODIFICATION") entered into pursuant to SECTION 4.4, which as of the
Closing (as hereinafter defined) affect all or any portion of the Land or
Improvements, and any security deposits actually held by Seller with
respect to any such Leases;
1.1.7 Subject to SECTION 3.3, all of Seller's right, title, and
interest in and to all the contracts and agreements relating to the
operation or maintenance of the Land, Improvements or Personal Property
that are listed on SCHEDULE 3.3 (the "CONTRACTS"), the terms of which
extend beyond midnight of the day preceding the Closing Date (as
hereinafter defined);
1.1.8 All of Seller's right, title, and interest in and to the
name "Lincoln Park Shopping Center";
1.1.9 All of Seller's right, title, and interest in and to all
licenses, franchises, and permits issued to Seller and relating to the
ownership and operation of the Property, to the extent assignable (the
"PERMITS");
1.1.10 To the extent assignable, all of Seller's right, title,
and interest in and to all presently effective warranties and guaranties
(the "WARRANTIES") in favor of Seller relating to the construction and
operation of the Improvements or Personal Property; and
1.1.11 To the extent assignable and to the extent Seller has any
right to assign or transfer the same, all of Seller's right, title, and
interest in and to all building plans and specifications and site plans
pertaining to the Property which are in Seller's possession.
1.2 "AS-IS" PURCHASE. Except as specifically set forth in this
Agreement, the Property is being sold in an "AS IS, WHERE IS" condition and
"WITH ALL FAULTS" as of the date of this Agreement and of Closing. Except as
expressly set forth in this Agreement, no representations or warranties have
been made or are made and no responsibility has been or is assumed by Seller or
by any partner, officer, person, firm, agent, attorney or representative acting
or purporting to act on behalf of Seller as to (i) the condition or state of
repair of the Property; (ii) the compliance or non-compliance of the Property
with any applicable laws, regulations or ordinances (including, without
limitation, any applicable zoning, building or development codes); (iii) the
value, expense of operation, or income potential of the Property; (iv) any other
fact or condition which has or might affect the Property or the condition, state
of repair, compliance, value, expense of operation or income potential of the
Property or any portion thereof; or (v) whether the Property contains asbestos
or harmful or toxic substances or pertaining to the extent, location or nature
of same. The parties agree that all understandings and agreements heretofore
made between them or their respective agents or representatives are merged in
this
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Agreement and the Exhibits hereto annexed, which alone fully and completely
express their agreement, and that this Agreement has been entered into after
full investigation, or with the parties satisfied with the opportunity afforded
for full investigation, neither party relying upon any statement or
representation by the other unless such statement or representation is
specifically embodied in this Agreement or the Exhibits annexed hereto.
Purchaser waives its right to recover from, and forever releases and
discharges Seller, Seller's affiliates. Seller's investment advisor and manager,
the partners, trustees, shareholders, directors, officers, attorneys, employees
and agents of each of them, and their respective heirs, successors, personal
representatives and assigns (collectively, the "RELEASEES") from any and all
demands, claims (including, without limitation, causes of action in tort), legal
or administrative proceedings, losses, liabilities, damages, penalties, fines,
liens, judgments, costs or expenses whatsoever (including, without limitation,
attorneys' fees and costs), whether direct or indirect, known or unknown,
foreseen or unforeseen (collectively, "CLAIMS"), that may arise on account of or
in any way be connected with the Property, the physical condition thereof, or
any law or regulation applicable thereto (including, without limitation, claims
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended (42 U.S.C. Section 6901, ET SEQ.), the Resources
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901, ET SEQ.), the
Clean Water Act (33 U.S.C. Section 1251, ET SEQ.), the Safe Drinking Water Act
(49 U.S.C. Section 1801, ET SEQ.), the Hazardous Transportation Act (42 U.S.C.
Section 6901, ET SEQ.), and the Toxic Substance Control Act (15 U.S.C. Section
2601, ET SEQ.). Without limiting the foregoing, Purchaser, upon closing, shall
be deemed to have waived, relinquished and released Seller and all other
Releasees from any and all Claims, matters arising out of latent or patent
defects or physical conditions, violations of applicable laws (including,
without limitation, any environmental laws) and any and all other acts,
omissions, events, circumstances or matters affecting the Property. As part of
the provisions of this SECTION 1.2, but not as a limitation thereon. Purchaser
hereby agrees, represents and warrants that the matters released herein are not
limited to matters which are known or disclosed, and Purchaser hereby waives any
and all rights and benefits which it now has, or in the future may have
conferred upon it, by virtue of the provisions of federal, state or local law,
rules and regulations. Purchaser agrees that should any cleanup, remediation or
removal of hazardous substances or other environmental conditions on or about
the Property be required after the date of Closing, such clean-up, removal or
remediation shall not be the responsibility of Seller. Provided, however, Seller
agrees that Purchaser may join Seller in any action brought by a
governmental entity against Purchaser based on (x) environmental conditions
existing subsequent to Seller's acquisition of the Property and prior to Closing
in violation of environmental laws existing on the date of Closing, or (y)
violations of environmental laws (existing on the date of Closing) at the
Property occurring subsequent to Seller's acquisition of the Property and prior
to Closing. Nothing herein shall limit, impair or otherwise affect any rights of
Purchaser against parties unrelated to Seller arising under any contract or
other right assigned to Purchaser by Seller pursuant to this Agreement.
To the extent now or hereafter applicable, each party hereby waives
its rights, if any, under the Deceptive Trade Practices - Consumer Protection
Act, Section 17.41 ET SEQ.,
Texas Business & Commerce Code, a law that gives
consumers special rights and protections. After consultation with an attorney of
its own selection, each party voluntarily consents to this waiver.
1.3 AGREEMENT TO CONVEY. Seller agrees to convey, and Purchaser agrees
to accept, title to the Land and Improvements by Special Warranty Deed in the
condition described in SECTION 3.4 and title to the Personal Property, Permits,
Warranties, the name Lincoln Park
3
Shopping Center, by Xxxx of Sale, without warranty as to the title or the
condition of such personalty.
2. PRICE AND PAYMENT.
2.1 PURCHASE PRICE. The purchase price for the Property (the "PURCHASE
PRICE") is FORTY SEVEN MILLION FIVE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS
($47,550,000.00) US; provided, however, the Purchase Price shall be reduced
dollar for dollar by the amount, if any, by which (i) $850,000.00 exceeds (ii)
amounts incurred and paid by Seller for prepayment costs and penalties
associated with the retirement of that certain financing secured by that certain
Deed of Trust, Mortgage and Security Agreement dated December 18, 1998 in favor
of Nationwide Life Insurance Company encumbering the Property.
2.2 PAYMENT. Payment of the Purchase Price is to be made in cash as
follows:
2.2.1 Purchaser shall make an xxxxxxx money deposit with the
Title Company of FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00)
(the "DEPOSIT") on or before the earlier to occur of (i) that certain date
that occurs two (2) business days after the Effective Date, or (ii) August
10, 2004.
2.2.2 The Deposit will be placed with and held in escrow by
Republic Title of
Texas, Inc. as agent for First American Title Insurance
Company at 0000 Xxxxxx Xxxxxx, 00xx Xxxxx, Xxxxxx, Xxxxx 00000, Attention:
Xxxxxx Xxxxxx (Telephone: 000-000-0000; Fax: 000-000-0000; E-mail:
xxxxxxx@xxxxxxxxxxxxx.xxx) (the "TITLE COMPANY"), in immediately available
funds in an interest-bearing account at a mutually acceptable banking
institution. Any interest earned by the Deposit shall be considered as
part of the Deposit. Except as otherwise provided in this Agreement, the
Deposit will be applied to the Purchase Price at Closing.
2.2.3 Prior to or contemporaneous with the execution hereof by
Purchaser and Seller, Purchaser has paid to Seller ONE HUNDRED AND NO/100
DOLLARS ($100.00) (the "INDEPENDENT CONTRACT CONSIDERATION"), which amount
Seller and Purchaser bargained for and agreed to as consideration for
Seller's execution and delivery of this Agreement. The Independent
Contract Consideration is non-refundable and in addition to any other
payment or deposit required by this Agreement, and Seller shall retain the
Independent Contract Consideration notwithstanding any other provision of
this Agreement to the contrary.
2.2.4 At Closing, Purchaser shall pay Seller the balance of the
Purchase Price, subject to adjustment for the prorations as provided
herein, to the Title Company for disbursement to Seller via wire transfer
in immediately available funds.
2.3 CLOSING. Payment of the Purchase Price, the delivery of the items
required to be delivered by Section 9 hereof, and the closing hereunder (the
"CLOSING") will take place pursuant to an escrow closing on the Approval Date,
or such earlier date as may be agreed upon by Seller and Purchaser (the "CLOSING
DATE"). The Closing will take place at the offices of the Title Company at
10:00 a.m. local Dallas time or at such other time and place as may be agreed
upon in writing by Seller and Purchaser. Closing shall occur through an escrow
with the Title Company. Funds shall be deposited into and held by the Title
Company in a closing escrow account with a bank satisfactory to Purchaser and
Seller. Upon satisfaction or completion of all closing conditions and
deliveries, the parties shall direct the Title Company to immediately
4
record and deliver the closing documents to the appropriate parties and make
disbursements according to the closing statements executed by Seller and
Purchaser.
3. INSPECTIONS AND APPROVALS.
3.1 INSPECTIONS.
3.1.1 Commencing on the Effective Date through the date which
occurs thirty (30) days after the Effective Date (such date is referred to
herein as the "APPROVAL Date"). Seller agrees to allow Purchaser and
Purchaser's engineers, architects, employees, contractors, agents and
representatives ("PURCHASER'S AGENTS") reasonable access, during normal
business hours, to the Property and to the records, if any, maintained for
Seller by Seller's property management company during normal business
hours. Such access shall be solely for the purposes of (i) reviewing
Leases and contracts and any records relating thereto; (ii) reviewing
records relating to the income and operating expenses; and (iii)
inspecting the physical condition of the Property and conducting
non-intrusive physical or environmental inspections of the Property.
Purchaser shall not conduct or allow any physically intrusive testing of,
on or under the Property without first obtaining Seller's written consent
as to the timing and scope of work to be performed and entering into an
access agreement in form and substance satisfactory to Seller. Purchaser's
breach of the foregoing prohibition shall entitle Seller, at its option,
immediately and without the notice or cure period provided in SECTION 11.6
hereof, to declare this Agreement to be terminated and to retain the
Deposit as liquidated damages. Prior to execution of this Agreement,
Seller has delivered to Purchaser and Purchaser acknowledges receipt of
the items described on SCHEDULE 3.3.1 hereof (the "DUE DILIGENCE
DOCUMENTS").
3.1.2 Purchaser agrees that, in making any non-intrusive physical
or environmental inspections of the Property. Purchaser and all of
Purchaser's Agents entering onto the Property shall carry not less than
Two Million Dollars ($2,000,000) comprehensive general liability insurance
insuring all activity and conduct of Purchaser and such representatives
while exercising such right of access and naming Seller, Lincoln Property
Company Commercial, Inc., LPC Park Limited Partnership ("LPC PARK"), and
Invesco Real Estate, a division of INVESCO Institutional (N.A.), Inc.
("INVESCO"), as additional insureds. Purchaser represents and warrants
that it carries not less than Two Million Dollars ($2,000,000) commercial
general liability insurance with contractual liability endorsement which
insures Purchaser's indemnity obligations hereunder, and will provide
Seller with written evidence of same prior to entry on the Property.
3.1.3 Purchaser agrees that in exercising its right of access
hereunder, Purchaser will use and will cause Purchaser's Agents to use
commercially reasonable efforts not to unreasonably interfere with the
activities of tenants or any persons occupying or providing service at the
Property. Purchaser shall, at least one (1) business day prior to
inspection, give Xxxxxx Xxxxxx and Xxxxxxx X. Xxxxxxxxxxx, on behalf of
Seller, written notice (by email, facsimile, or U.S. Mail) of its
intention to conduct any inspections, so that Seller shall have an
opportunity to have a representative present during any such inspection,
and Seller expressly reserves the right to have such a representative
present, including, but not limited to, any discussion with any tenants.
Purchaser agrees to cooperate with any reasonable request by Seller
5
in connection with the timing of any such inspection. Except for a
termination resulting from a default by Seller under this Agreement,
Purchaser agrees (which agreement shall survive Closing or termination of
this Agreement) to provide Seller with a copy of any third-party
environmental or engineering reports prepared for and received by
Purchaser pertaining to the Property.
3.1.4 Unless Seller specifically and expressly otherwise agrees
in writing or Purchaser is required by law to make any such disclosure (in
which event Purchaser shall immediately notify Seller), Purchaser agrees
that (a) the results of all third party inspections, analyses, studies and
similar reports relating to the Property prepared for Purchaser utilizing
any information acquired in whole or in part through the exercise of
Purchaser's inspection rights; and (b) all information (the "PROPRIETARY
INFORMATION") regarding the Property of whatsoever nature made available
to Purchaser by Seller or Seller's agents or representatives is
confidential and shall not be disclosed to any other person except those
assisting Purchaser with the transaction, including Purchaser's lenders,
accountants, investors, attorneys and other professionals and consultants
in connection with the transaction described herein, without Seller's
prior written consent but with the understanding by such persons that such
information is confidential as set forth herein. Purchaser agrees not to
use or allow to be used any such information for any purpose other than to
determine whether to proceed with the contemplated purchase, or if same is
consummated, in connection with the operation of the Property
post-Closing. Further, if the purchase and sale contemplated hereby fails
to close for any reason whatsoever, other than a default by Seller,
Purchaser agrees to return to Seller, or cause to be returned to Seller,
all Proprietary Information. Notwithstanding any other term of this
Agreement, the provisions of this SECTION 3.1.4 shall survive Closing or
the termination of this Agreement. Notwithstanding the foregoing, (AA)
Purchaser shall be permitted to disclose the Proprietary Information and
any information obtained pursuant to clause (a) of this Section 3.1.4: (i)
to any governmental authority, if required by any law, or (ii) pursuant to
the order of any court of competent jurisdiction requiring such
disclosure; (BB) the Propriety Information and any information obtained
pursuant to clause (a) of this Section 3.1.4 shall not be deemed to
include any information that is a matter of public record, information
that can readily be obtained in the marketplace, is generally known to
industry experts, or is disclosed by Seller and is not subject to a
confidentiality agreement.
3.1.5 Purchaser shall, at its cost and expense, promptly restore
any physical damage or alteration of the physical condition of the
Property which results from any inspections conducted by or on behalf of
Purchaser. All inspections shall be conducted at Purchaser's sole cost and
expense and in strict accordance with all requirements of applicable law.
3.1.6 Except as specifically set forth in this Agreement, Seller
makes no representations or warranties as to the truth, accuracy,
completeness, methodology of preparation or otherwise concerning any
engineering or environmental reports or any other materials, data or other
information supplied to Purchaser in connection with Purchaser's
inspection of the Property (e.g., that such materials are complete,
accurate or the final version thereof, or that such materials are all of
such materials as are in Seller's possession). It is the parties' express
understanding and agreement that any materials which Purchaser is allowed
to review are provided only for Purchaser's convenience in making its own
examination and determination prior to the Approval Date as to whether it
wishes to purchase the Property, and, in doing so, Purchaser shall rely
6
on its own independent investigation and evaluation of every aspect of the
Property and not on any materials supplied by Seller. Purchaser expressly
disclaims any intent to rely on any such materials provided to it by
Seller in connection with its inspection.
3.1.7 PURCHASER AGREES (WHICH AGREEMENT SHALL SURVIVE CLOSING OR
TERMINATION OF THIS AGREEMENT) TO INDEMNIFY, DEFEND, AND HOLD SELLER,
INVESCO, LPC PARK, AND LINCOLN PROPERTY COMPANY FREE AND HARMLESS FROM ANY
LOSS, INJURY, DAMAGE, CLAIM, LIEN, COST OR EXPENSE, INCLUDING ATTORNEYS'
FEES AND COSTS, ARISING OUT OF A BREACH OF THE FOREGOING AGREEMENTS BY
PURCHASER IN CONNECTION WITH THE INSPECTION OF THE PROPERTY, OR OTHERWISE
FROM THE EXERCISE BY PURCHASER OR PURCHASER'S AGENTS OF THE RIGHT OF
ACCESS UNDER THIS SECTION 3.1 (COLLECTIVELY, "PURCHASER'S INDEMNITY
OBLIGATIONS"). THIS SECTION 3.1.7 SHALL SURVIVE CLOSING OR THE TERMINATION
OF THIS AGREEMENT.
3.1.8 Purchaser shall keep the Property free from any liens
arising out of any work performed, materials furnished or obligations
incurred by or on behalf of Purchaser or Purchaser's Agents with respect
to any inspection or testing of the Property. If any such lien shall at
any time be filed, Purchaser shall cause the same to be discharged of
record within fifteen (15) days thereafter by satisfying the same or, if
Purchaser, in its discretion and in good faith determines that such lien
should be contested, by recording a bond. Failure by Purchaser to
discharge such lien shall be a material breach of this Agreement and shall
entitle Seller, at its option, immediately and without the notice or cure
period provided in SECTION 11.6 hereof, to declare this Agreement to be
terminated and to retain the Deposit as liquidated damages.
3.1.9 Purchaser understands that any financial statements and
data, including, without limitation, gross rental income, operating
expenses and cash flow statements, which may be made available by Seller
to Purchaser, will be unaudited financial statements and data not prepared
or reviewed by independent public accountants, and that Seller makes no
representation as to the accuracy or completeness thereof.
3.2 TITLE AND SURVEY.
3.2.1 TITLE. Seller shall cause Title Company to provide Purchaser
with a title insurance commitment (the "COMMITMENT") for an Owner's Policy
of Title Insurance from Title Company containing comprehensive, access,
survey and contiguity endorsements (the "SPECIAL ENDORSEMENTS"), covering
the Real Property, together with a copy of all instruments reflected as
exceptions set forth therein, within ten (10) days of the Effective Date.
Purchaser shall have until ten (10) days prior to the Approval Date (the
"TITLE NOTICE DATE") to provide written notice to Seller of any matters
shown by the Title Commitment or Survey (as defined hereinafter) which are
not satisfactory to Purchaser, which notice (the "TITLE NOTICE") must
specify the reason such matter(s) are not satisfactory and the curative
steps necessary to remove the objections stated in the Title Notice.
3.2.2 SURVEY. During the Inspection Period, Seller, at its sole
cost and expense, shall cause an ALTA/ACSM Land Title Survey of the
Property (the "SURVEY") to be prepared by a surveyor reasonably acceptable
to Purchaser, Seller and the Title Company. The Survey shall be certified
to Purchaser, Seller, the Title Company and
7
any other parties reasonably requested by such parties. If the Survey
reveals any matter, which is not satisfactory to Purchaser, Purchaser
shall deliver notice (the "SURVEY NOTICE") to Seller within five (5)
business days of receipt of the Survey which shall specify the objection
(the objections stated in the Title Notice and the Survey Notice are
herein collectively called the "TITLE OBJECTIONS"). The parties shall then
have until the Approval Date, as hereinafter defined (the "CURE DATE") to
make such arrangements or take such steps as they shall mutually agree to
satisfy the Title Objections; provided, however, that Seller shall have no
obligation whatsoever to expend or agree to expend any funds, to undertake
or agree to undertake any obligations or otherwise to cure or agree to
cure any Title Objections, and Seller shall not be deemed to have any
obligation to cure unless Seller expressly undertakes such an obligation
by a written notice to or written agreement with Purchaser given or
entered into on or prior to the Closing Date and which recites that it is
in response to a Title Notice and/or a Survey Notice. Purchaser's sole
right with respect to any Title Objection shall be to elect on or before
the Cure Date to terminate this Agreement (other than those obligations
that survive the Closing or termination of this Agreement; herein called
the "SURVIVING OBLIGATIONS") and to receive a refund of the Deposit. All
matters shown on the Title Commitment and/or Survey with respect to which
Purchaser fails to give a Title Notice or a Survey Notice on or before the
last date for so doing, or with respect to which a timely Title Notice is
given but Seller fails to undertake an express obligation to cure as
provided above, shall be deemed to be approved by Purchaser and a
"PERMITTED ENCUMBRANCE" as provided in SECTION 3,4 hereof, subject,
however, to Purchaser's termination right provided in SECTION 3.5 hereof.
3.3 CONTRACTS. On or before the Approval Date, Purchaser shall notify
Seller in writing if Purchaser elects not to assume at Closing any of the
Contracts. If Purchaser does not exercise its right to terminate this Agreement
on or before the Approval Date, Seller shall give notice of termination of such
disapproved Contract(s); provided, if by the terms of the disapproved Contract
Seller has no right to terminate same on or prior to Closing, or if any fee or
other compensation is due thereunder as a result of such termination. Purchaser
shall be required at Closing to assume all obligations thereunder until the
effective date of the termination and to assume the obligation to pay or to
reimburse Seller for the payment of the termination charge.
3.4 PERMITTED ENCUMBRANCES. Unless Purchaser terminates this Agreement
pursuant to an express right of termination in favor of Purchaser set forth
herein. Purchaser shall be deemed to have approved and to have agreed to
purchase the Property subject to the following:
3.4.1 All exceptions to title shown in the Title Commitment or
matters shown on the Survey which Purchaser has approved or is deemed to
have approved pursuant to SECTION 3.2 hereof;
3.4.2 All Contracts and Leases which Purchaser has approved or is
deemed to have approved pursuant to SECTIONS 3.3, 4.3 and 4.4 hereof;
3.4.3 The lien of non-delinquent real and personal property taxes
and assessments;
3.4.4 Rights of parties in possession pursuant to the Leases and
Contracts;
8
3.4.5 Discrepancies, conflicts in boundary lines, shortages in
area, encroachments, and any state of facts which an inspection of the
premises would disclose and which are not shown by the public records; and
3.4.6 Rights of vendors and holders of security interests on
personal property installed upon the Property by tenants and rights of
tenants to remove trade fixtures at the expiration of the term of the
leases of tenants.
All of the foregoing are referred to herein collectively as "PERMITTED
ENCUMBRANCES." Notwithstanding the foregoing, at Closing Seller shall pay off
and discharge all liens and encumbrances relating to Seller's existing mortgage
loan from Nationwide Life Insurance Company and any other mortgage lien or lien
for borrowed money in favor of any party claiming by, through or under Seller.
3.5 PURCHASER'S RIGHT TO TERMINATE. If, as a result of its various
investigations, Purchaser determines, in its sole and absolute discretion, or
for no reason whatsoever, that the Property is not a suitable investment for its
purposes, Purchaser shall have the right by giving Seller written notice (the
"TERMINATION NOTICE") on or before the Approval Date to terminate this
Agreement, except for the Surviving Obligations. If the Termination Notice is
timely given, Seller shall direct the Title Company to immediately return the
Deposit to Purchaser by wire transfer of immediately available funds and neither
party shall have any further liability hereunder except for the Surviving
Obligations. If the Termination Notice is not given, Purchaser shall have no
further right to terminate this Agreement except as expressly provided in this
Agreement.
3.6 DELIVERY OF TITLE POLICY. Title Company shall deliver to Purchaser
at Closing an Owner Policy of Title Insurance containing the Special
Endorsements, in the form promulgated by the
Texas Department of Insurance (the
"TITLE POLICY") issued by the Title Company as of the date and time of the
recording of the Deed, in the amount of the Purchase Price, insuring Purchaser
as owner of indefeasible fee simple title to the Property, and subject only to
the Permitted Exceptions. Seller shall execute at Closing an affidavit in such
form as the Title Company shall reasonably require for the issuance of the Title
Policy (but not additional matters required for any endorsements required by
Purchaser). The Title Policy may be delivered after the Closing if at the
Closing the Title Company issues a currently effective, duly-executed
"marked-up" Title Commitment and irrevocably commits in writing to issue the
Title Policy in the form of the "marked-up" Title Commitment promptly after the
Closing Date.
4. SELLER'S COVENANTS FOR PERIOD PRIOR TO CLOSING.
Until Closing, Seller or Seller's agent shall;
4.1 INSURANCE. Keep the Property insured under its current policies
against fire and other hazards covered by extended coverage endorsement and
commercial general liability insurance against claims for bodily injury, death
and property damage occurring in, on or about the Property.
4.2 OPERATION. Operate and maintain the Property substantially in
accordance with Seller's past practices with respect to the Property, normal
wear and tear excepted, provided that in the event of any loss or damage to the
Property as described in SECTION 7, Seller shall have an obligation to Purchaser
to repair the Property only as provided in SECTION 7.
9
4.3 NEW CONTRACTS. Enter into only those third-party service contracts
that are necessary to carry out its obligations under SECTION 4.2 and which
shall be cancelable on thirty (30) days written notice at no cost to Purchaser.
If Seller enters into any such contract, it shall promptly provide written
notice thereof to Purchaser and unless Purchaser, within five (5) business days
thereafter, notifies Seller in writing of its intention to not assume such
contract, it shall be treated as a contract approved by Purchaser under SECTION
3.3 hereof.
4.4 NEW LEASES. Seller may continue to execute new leases, Lease
Modifications or amend, terminate or accept the surrender of any existing
tenancies or approve any subleases without the prior consent of Purchaser, which
consent shall not be unreasonably withheld or delayed.
4.5 LISTING AND OTHER OFFERS. From the date hereof until the earlier of
termination of this Agreement or the Closing Date set forth herein Seller will
not list the Property with any Broker or otherwise solicit or make or accept any
offers to sell the Property or enter into any contracts or agreements regarding
any disposition of all or any portion of the Property or any interest therein.
4.6 TENANT ESTOPPELS. Purchaser shall have received Tenant estoppel
certificates in substantially the form attached hereto as EXHIBIT 4.6 (or, if
different, the form required by the applicable Lease or delivered to Seller
prior to Seller's acquisition of the Property) from tenants who lease, in the
aggregate, at least seventy-five percent (75%) of the Tenants in the Property in
substantially the same form as Seller received from such tenants when Seller
acquired the Property (the "TENANT ESTOPPEL CERTIFICATES"). Seller shall provide
Purchaser with copies of the Tenant Estoppel Certificates prepared by Seller for
Purchaser's review and comment before delivering the completed Tenant Estoppel
Certificates to the Tenants and the completed Tenant Estoppel Certificates shall
be deemed approved by Purchaser on the expiration of one (1) business day
following such delivery unless Purchaser provides Seller in writing any comments
to, or objections concerning the substance of the completed Tenant Estoppel
Certificate to be delivered to the Tenants under the Leases. In no event shall
Seller be obligated to deliver updates to any of the Tenant Estoppel
Certificates. Seller will deliver Purchaser copies of the signed Tenant Estoppel
Certificates promptly following Seller's receipt thereof. Purchaser agrees not
to unreasonably object to or withhold Purchaser's consent to any alternate
estoppel form or changes made by any tenant to the form attached hereto. If
Purchaser fails to furnish Seller with a written notice of disapproval (which
notice, in order to be effective, must include Purchaser's specific objections),
within two (2) business days from the date of Seller's delivery thereof, such
Tenant Estoppel Certificate will be deemed approved by Purchaser.
5. REPRESENTATIONS AND WARRANTIES.
5.1 BY SELLER. Seller represents and warrants to Purchaser as follows:
5.1.1 Seller is a limited partnership duly organized and validly
existing under the laws of the State of
Texas, has duly authorized the
execution and performance of this Agreement, and such execution and
performance will not violate any material term of its articles of
incorporation or bylaws.
5.1.2 To the best of Seller's knowledge, performance of this
Agreement will not result in any breach of, or constitute any default
under, or result in the imposition of any lien or encumbrance upon the
Property under, any agreement to which Seller is a party.
10
5.1.3 To the best of Seller's knowledge, except as set forth in
the Due Diligence Documents, there is no existing or pending litigation
with respect to the Property nor have any such actions, suits, proceedings
or claims been threatened or asserted, which could have an adverse effect
on the Property or Seller's ability to consummate the transactions
contemplated hereby;
5.1.4 To the best of Seller's knowledge, the list of Contracts to
be delivered to Purchaser pursuant to this Agreement will be true, correct
and complete as of the date of delivery;
5.1.5 Seller is not a "foreign person" within the meaning of
Sections 1445 and 7701 the Internal Revenue Code of 1986, as amended
(hereinafter, the "CODE"); and
5.1.6 To the best of Seller's knowledge, except for those tenants
in possession of the Real Property under Leases as shown in the Schedule
of Leases attached hereto as EXHIBIT 1.1.6, there are no parties in
possession of, or claiming any possession to, any portion of the Land and
Improvements.
5.1.7 The rent roll delivered by Seller to Purchaser is the rent
roll prepared on a monthly basis by Seller in the ordinary course of its
business, but such rent roll has not been audited by Seller.
5.1.8 The Leases made available to Purchaser at the Property are
the true leases or rental agreements for the units at the Property and the
only leases or rental agreements for the units at the Property.
5.1.9 To the best of Seller's knowledge, Seller has not received
any written notice from any governmental authority that the Property is in
violation of applicable laws, which has not be remedied.
5.1.10 To the best of Seller's knowledge, Seller has not received
any written notice from any governmental authority with respect to the
presence of hazardous materials located at, on or under the Property in
violation of applicable laws.
5.1.11 No petition in bankruptcy (voluntary or otherwise),
assignment for the benefit of creditors, or petition seeking
reorganization or arrangement or other action under federal or state
bankruptcy laws is pending against or contemplated by Seller.
5.2 BY PURCHASER. Purchaser represents and warrants to Seller as
follows:
5.2.1 Purchaser is a corporation, duly organized, validly existing
and in good standing under the laws of the State of Illinois, (and at
Closing will be authorized to do business in the State of
Texas), has duly
authorized the execution and performance of this Agreement, and such
execution and performance will not violate any material term of its
organizational documents.
5.2.2 Purchaser is acting as principal in this transaction with
authority to close the transaction.
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5.2.3 No petition in bankruptcy (voluntary or otherwise),
assignment for the benefit of creditors, or petition seeking
reorganization or arrangement or other action under federal or state
bankruptcy laws is pending against or contemplated by Purchaser.
5.2.4 Unless otherwise disclosed to Seller in writing, neither
Purchaser nor any affiliate of or principal in Purchaser is other than a
citizen of, or partnership, corporation or other form of legal person
domesticated in, the United States of America.
5.2.5 Purchaser will not use the assets of an employee benefit
plan as defined in Section 3(3) of the Employee Retirement Income Security
Act of 1974 ("ERISA") and covered under Title I, Part 4 of ERISA or
Section 4975 of the Internal Revenue Code of 1986, as amended, in the
performance or discharge of its obligations hereunder, including the
acquisition of the Property. Purchaser shall not assign its interest
hereunder to any person or entity which does not expressly make this
covenant and warranty for the benefit of Seller.
5.3 BROKERS. Each of Seller and Purchaser represents to the other that
it has had no dealings, negotiations, or consultations with any broker,
representative, employee, agent or other intermediary in connection with the
Agreement or the sale of the Property. Seller and Purchaser agree that each will
indemnify, defend and hold the other free and harmless from the claims of any
broker(s), representative(s), employee(s), agent(s) or other intermediary(ies)
claiming to have represented Seller or Purchaser, respectively, or otherwise to
be entitled to compensation in connection with this Agreement or in connection
with the sale of the Property. The terms and provisions of this paragraph shall
survive Closing hereunder.
6. COSTS AND PRORATIONS.
6.1 PURCHASER'S COSTS. Purchaser shall pay the following costs of
closing this transaction:
6.1.1 The fees and disbursements of its counsel, inspecting
architect and engineer and any other consultants engaged by Purchaser, if
any;
6.1.2 Any and all sales or use taxes relating to the transfer of
personal property to Purchaser;
6.1.3 INTENTIONALLY DELETED.
6.1.4 The cost of any premium charges over and above $122,462.00
for basic title insurance coverage for the Title Policy;
6.1.5 Any and all recording fees for the Deed;
6.1.6 One-half of any and all escrow fees;
6.1.7 Any other expense(s) incurred by Purchaser or its
representative(s) in inspecting or evaluating the Property or closing this
transaction; and
6.1.8 A reimbursable commission fee of $6,375.00 payable to
Seller.
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6.2 SELLER'S COSTS. Seller shall pay the following costs of closing this
transaction:
6.2.1 The fees and disbursements of Seller's counsel;
6.2.2 The cost of the premium for the basic Owner Policy of Title
Insurance in the amount of the Purchase Price and in the form promulgated
by the
Texas Department of Insurance, but not any premiums for any
additional coverage;
6.2.3 All recording fees for any release documents related to
release for the documents securing the loan from Nationwide Life Insurance
Company; and
6.2.4 One-half of any and all escrow fees.
6.2.5 The Cost of the Survey.
6.2.6 The Cost of appraisal of the Property ordered and obtained
by Purchaser (not to exceed $5,000).
6.3 PRORATIONS. (a) Rents, security deposits and any other amounts
actually collected from tenants and other persons using or occupying the
Property as of the Closing Date; (b) personal property taxes, installment
payments of special assessment liens, sewer charges, utility charges (utility
charges shall be prorated based on the last reading of meters prior to Closing
performed at Seller's request, if possible) and normally prorated operating
expenses actually billed or paid as of the Closing Date; (c) amounts owed by
Seller or paid under the Contracts assumed by Purchaser pursuant to SECTION 3.3
hereof as of the Closing Date; and (d) leasing commissions and finder's fees
shall be paid in full for each Lease and Lease Modification entered into prior
to the Approval Date, and finder's fees and leasing commissions for the leases
entered into on or after the Approval Date shall be prorated as of midnight at
the end of the day preceding the Closing Date and be adjusted against the
Purchase Price due at the Closing; provided that within sixty (60) days after
the Closing, Purchaser and Seller will make a further adjustment for such rents,
taxes or charges which may have accrued or been incurred prior to the Closing
Date, but not billed or paid at that date. All prorations shall be made on a
366-day calendar year basis, based on the actual number of days in the
applicable month.
6.4 TAXES. General real estate taxes and special assessments relating to
the Property payable during the year in which Closing occurs shall be prorated
as of the Closing Date. If Closing shall occur before the actual taxes and
special assessments payable during such year are known, the apportionment of
taxes shall be upon the basis of taxes for the Property payable during the
immediately preceding year, provided that, if the taxes and special assessments
payable during the year in which Closing occurs are thereafter determined to be
more or less than the taxes payable during the preceding year (after any appeal
of the assessed valuation thereof is concluded), Seller and Purchaser promptly
(but no later than December 31, 2004, except in the case of an ongoing tax
protest) shall adjust the proration of such taxes and special assessments, and
Seller or Purchaser, as the case may be, shall pay to the other any amount
required as a result of such adjustment and this covenant shall not merge with
the deed delivered hereunder but shall survive the Closing. Taxes and
assessments payable in installments shall be apportioned based on the shortest
allowable payment schedule.
13
6.5 IN GENERAL. Any other costs or charges of closing this transaction
not specifically mentioned in this Agreement shall be paid and adjusted in
accordance with local custom in Dallas County, Texas.
6.6 PURPOSE AND INTENT. Except as expressly provided herein, the purpose
and intent as to the provisions of prorations and apportionments set forth in
this SECTION 6 and elsewhere in this Agreement is that Seller shall bear all
expenses of ownership and operation of the Property and shall receive all income
therefrom accruing through midnight at the end of the day preceding the Closing
Date and Purchaser shall bear all such expenses and receive all such income
accruing thereafter.
6.7 OUTSTANDING DEED OF TRUST. The parties acknowledge that the Property
is currently encumbered by that certain Deed of Trust, Mortgage and Security
Agreement dated as of December 18, 1998 (the "DEED OF TRUST"), in favor of
Nationwide Life Insurance Company ("LENDER"). The debt associated with such Deed
of Trust (the "MORTGAGE DEBT") will be satisfied out of the Purchase Price
Proceeds at Closing.
7. DAMAGE, DESTRUCTION OR CONDEMNATION.
7.1 MATERIAL EVENT. If, prior to Closing, the number of parking spaces
on the Property are reduced below the minimum number required by governmental
authorities (taking into account any applicable variance or permitted use,
whether resulting from the condemnation event or otherwise), the buildings are
damaged or taken by condemnation or power of eminent domain and the value of the
property taken or cost of repair exceeds $1,000,000.00 (as determined by Seller
and its contractors in consultation with Purchaser) or if prior to Closing the
buildings are damaged by an uninsured casualty for which Seller has elected (at
Seller's sole option) not to repair the buildings or provide to Purchaser at
Closing a credit for the amount of the damage or if prior to Closing there is,
in Purchaser's reasonable judgment a threat that all of a part of the Property
will be taken by condemnation or power of eminent domain (a "MATERIAL EVENT"),
Purchaser may elect to terminate this Agreement by giving written notice of its
election to Seller within five (5) business days after receiving written notice
of such destruction or taking. If Purchaser does not give such written notice
within such five (5) business day period, this transaction shall be consummated
on the date and at the Purchase Price provided for in SECTION 2, and Seller will
assign to Purchaser the physical damage proceeds of any insurance policy(ies)
payable to Seller, or Seller's portion of any condemnation award, in both cases,
up to the amount of the Purchase Price, and, if an insured casualty, pay to
Purchaser the amount of any deductible but not to exceed the amount of the loss.
7.2 IMMATERIAL EVENT. If, prior to Closing, the Property is subject to a
casualty or a condemnation event that is not a Material Event, Purchaser shall
close this transaction on the date and at the Purchase Price agreed upon in
SECTION 2, and Seller will assign to Purchaser the physical damage proceeds of
any insurance policies payable to Seller, or Seller's rights to any portion of
any condemnation award, in both cases, up to the amount of the Purchase Price
and, if an insured casualty, pay to Purchaser the amount of any deductible but
not to exceed the amount of the loss.
7.3 TERMINATION AND RETURN OF DEPOSIT. If Seller settles any
condemnation action or threat of eminent domain without Purchaser's approval
(such approval not to be unreasonably withheld) Purchaser may at its option
elect to terminate this Agreement. If Purchaser elects to terminate this
Agreement pursuant to this SECTION 7, and if Purchaser is not, on the date of
such election, in default under the Agreement, Seller shall promptly direct the
Title Company to
14
immediately return the Deposit to Purchaser, and neither party shall have any
further liability hereunder except for the Surviving Obligations.
8. NOTICES.
Any notice required or permitted to be given hereunder shall be deemed to
be given when hand delivered or the date of receipt (or refusal) of delivery if
delivery is by Xxxxx Air Freight, Airborne, Federal Express, or similar
overnight express service (which maintains a record of receipt or refusal of
delivery), or by facsimile (only as provided below) in either case addressed to
the parties at their respective addresses referenced below:
If to Seller: North Lincpark, Ltd.
0000 Xxxxxxx Xxxxx
000 X. Xxxxx
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx Xxxxxx/Xxxxxxx X. Xxxxxxxxxxx
Telephone: (000) 000-0000
FAX: (000) 000-0000
With a copy to: c/o Invesco Realty Advisors
0000 XXX Xxxxxxx, Xxxxx 000
Xxxxxx, Xxxxx 00000
Attention: Xxxxxx X. Xxxxxxxx
Telephone: (000) 000-0000
FAX: (000) 000-0000
With a copy to: Stutzman, Bromberg, Esserman & Xxxxxx
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Attention: Xxxx X. Xxxxx, Xx., Esq.
Telephone: (000) 000-0000
FAX: (000) 000-0000
If to Purchaser: Inland Real Estate Acquisitions, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx Xxxx/G. Xxxxxx Xxxxxxx
Telephone: (000) 000-0000
FAX: (000) 000-0000
With a copy to: The Inland Real Estate Group, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxxxx, Esq.
Telephone: (000) 000-0000
FAX: (000) 000-0000
or in each case to such other address as either party may from time to time
designate by giving notice in writing to the other party. Except for facsimile
notices between 9:00 a.m. and 5:00
15
p.m. Dallas time on a business day that are followed up by an overnight courier
delivery, telephone and facsimile numbers are for informational purposes only.
Effective notice will be deemed given only as provided above.
9. CLOSING AND ESCROW.
9.1 ESCROW INSTRUCTIONS. Upon execution of this Agreement, the parties
shall deliver an executed counterpart of this Agreement to the Title Company to
serve as the instructions to the Title Company as the escrow holder for
consummation of the transaction contemplated herein. Seller and Purchaser agree
to execute such additional and supplementary escrow instructions as may be
appropriate to enable the Title Company 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 the Agreement shall prevail.
9.2 SELLER'S DELIVERIES. Seller shall deliver either at the Closing or
by making available at the Property, as appropriate, the following original
documents, each executed and, if required, acknowledged:
9.2.1 A Special Warranty Deed to the Property, in the form
attached hereto as EXHIBIT 9.2.1, subject to Permitted Encumbrances and
other matters subsequently approved by Purchaser or Purchaser's counsel.
9.2.2 A Xxxx of Sale in the form attached hereto as EXHIBIT 9.2.2
conveying the Personal Property.
9.2.3 (i) The Leases described in SECTION 1.1.6 which are still in
effect as of Closing and any new leases or Lease Modification entered into
pursuant to SECTION 4.4; (ii) a recertification and current Schedule of
Leases and a listing of any tenant security deposits and prepaid rents
held by Seller with respect to the Property; and (iii) an assignment of
such leases, deposits, and prepaid rents by way of an Assignment and
Assumption of Leases agreement in the form attached hereto as EXHIBIT
9.2.3.
9.2.4 (i) Copies of all contracts relating to the Property which
Purchaser has elected to assume or which are not terminable by Seller on
or before the Closing Date; and (ii) an assignment of such contracts to
Purchaser by way of an Assignment and Assumption of Contracts agreement,
in the form attached hereto as EXHIBIT 9.2.4.
9.2.5 As available, all books and records at the Property held by
or for the account of Seller, including, without limitation, plans and
specifications, copies of all Permits and Warranties, to the extent in
Seller's possession.
9.2.6 An affidavit pursuant to the Foreign Investment and Real
Property Tax Act in the form attached hereto as EXHIBIT 9.2.6.
9.2.7 A letter notifying tenants of the conveyance of the Property
in the form attached hereto as EXHIBIT 9.2.8.
9.2.8 An affidavit and certificate as to parties in possession and
debts and liens in a form reasonably required by the Title Company and
acceptable to Seller.
16
9.2.9 An assignment without warranty of all Permits, Warranties
and the name "Lincoln Park Shopping Center."
9.2.10 The notices described in SECTION 9.6.
9.2.11 An executed Audit Letter in form of EXHIBIT 9.2.11 attached
hereto.
Seller shall cause LPC to deliver the Management Agreement (as defined in
SECTION 11.22) at Closing.
9.3 PURCHASER'S DELIVERIES. At the Closing, Purchaser shall (i) pay
Seller the Purchase Price; (ii) execute the agreements referred to in SECTIONS
9.2.3(iii), 9.2.4(ii) and 9.2.8 and the ERISA certificate attached hereto as
EXHIBIT 9.3; and (iii) execute and deliver the Management Agreement (as defined
in Section 11.22 below).
9.4 POSSESSION. Purchaser shall be entitled to possession of the
Property upon conclusion of the Closing, subject only to Permitted Encumbrances
and the rights of tenants in possession under Leases as permitted in this
Agreement.
9.5 INSURANCE. Seller shall terminate its policies of insurance as of
noon on the Closing Date, and Purchaser shall be responsible for obtaining its
own insurance thereafter.
9.6 NOTICE LETTERS. Seller shall provide to Purchaser copies of form
letters to contractors and utility companies serving the Property, advising them
of the sale of the Property to Purchaser and directing to Purchaser all bills
for the services provided to the Property on and after the Closing Date. Seller
shall be entitled to the return of any deposit(s) posted by it with any utility
company.
9.7 POST-CLOSING COLLECTIONS. Purchaser shall use commercially
reasonable efforts during the nine (9) month period immediately following
Closing to collect and promptly remit to Seller rents or other amounts due
Seller for the period prior to Closing. Purchaser shall apply such rents or
other amounts received, first for the account of Purchaser for amounts currently
due to Purchaser; second, to Seller for any and all amounts due to Seller for
periods prior to Closing; and the balance to be retained by Purchaser. If
Purchaser uses commercially reasonable efforts to collect past-due amounts owed
to Seller for the first seven (7) months after Closing but is unsuccessful,
Seller shall not have the right to collect delinquent rents. In no event shall
Seller have the right to evict any tenant or terminate any Lease. This Section
shall survive the Closing.
9.8 CLOSING DOCUMENTS. For closing documents required to be furnished by
Seller and Purchaser pursuant hereto that are not attached as exhibits, such
documents shall be in form substantially similar to documents attached as
exhibits hereto, if applicable; otherwise, in form, execution and substance
reasonably satisfactory to the parties and their respective counsel; provided,
however, that the provisions of this Section 9.8 shall not be construed to
permit any party to impose any obligations, costs or risks on the other party
that are not otherwise provided for under this Agreement.
10. DEFAULT; FAILURE OF CONDITION.
10.1 PURCHASER DEFAULT. If Purchaser shall become in breach of or default
under this Agreement and the breach or default continues beyond the expiration
of the cure period set
17
forth in SECTION 10.4, if any, provided in SECTION 11.6 hereof, the Deposit
shall be retained by Seller as liquidated damages and as Seller's sole remedy,
and both parties shall be relieved of and released from any further liability
hereunder except for the Surviving Obligations. Seller and Purchaser agree that
the Deposit is a fair and reasonable amount to be retained by Seller as agreed
and liquidated damages in light of Seller's removal of the Property from the
market and the costs incurred by Seller and shall not constitute a penalty or
forfeiture.
10.2 SELLER DEFAULT. If Seller shall refuse or fail to convey the
Property as herein provided for any reason other than (a) a default by Purchaser
and the expiration of the cure period, if any, provided under SECTION 10.4
hereof, (b) the existence of a Pending Default (as defined in and contemplated
by SECTION 10.4), or (c) any other provision of this Agreement which permits
Seller to terminate this Agreement or otherwise relieves Seller of the
obligation to convey the Property, Purchaser shall elect as its sole and
exclusive remedy hereunder either to (i) terminate the Agreement and recover the
Deposit; (ii) enforce Seller's obligations to convey the Property by filing suit
within forty-five (45) days of Seller's default after the later of (x)
expiration of any cure period applicable to Seller's Default, or (y) the Closing
Date, provided that no such action in specific performance shall seek to require
Seller to do any of the following: (1) change the condition of the Property or
restore the same after any fire or other casualty; (2) subject to SECTION 10.3,
below, expend money or post a bond to remove a title encumbrance or defect or
correct any matter shown on a survey of the Property (except that Seller shall
be obligated to remove and Purchaser may seek specific performance for Seller to
remove the liens and security interests securing the loan from Nationwide Life
Insurance Company, or other liens or judgments that are not Permitted
Encumbrances and that were agreed to or suffered by Seller); or (3) secure any
permit, approval, or consent with respect to the Property or Seller's conveyance
(as opposed to Seller's authority to consummate the transactions described
herein) of the Property. Purchaser waives any right to receive damages as a
result of Seller's default. Provided, however, if the remedy of specific
performance is not available to Purchaser as a result of a Seller default
hereunder, in addition to the right to terminate this Agreement and receive a
refund of the Deposit, Seller shall reimburse Purchaser for its actual and
reasonable out-of-pocket costs, not to exceed $50,000 in the aggregate.
10.3 FAILURE OF CONDITION. If, prior to Closing, Seller discloses to
Purchaser or Purchaser discovers that (i) title to the Property is subject to
defects, limitations or encumbrances other than Permitted Encumbrances; or (ii)
any representation or warranty of Seller contained in this Agreement is or, as
of the Closing Date, will be untrue, then Purchaser shall promptly give Seller
written notice of its objection thereto. In such event, Seller may elect to
postpone the Closing for thirty (30) days and attempt to cure such objection,
provided that Purchaser may not object to the state of title of the Property on
the basis of matters set out in SECTION 3.4 above. The parties acknowledge and
agree that Seller shall have no obligation to cure any objection within (i) or
(ii) above, except for a lien or encumbrance created by Seller. If Purchaser
fails to waive any such objection within ten (10) days after notice from Seller
that Seller will not cure the objection, this Agreement will terminate
automatically and Seller shall promptly direct the Title Company to return the
Deposit to Purchaser, provided that Purchaser shall not be in default hereunder,
and neither party shall have any liability to the other except for the Surviving
Obligations.
10.4 BREACH. Should either party be in breach of or default under or
otherwise fail to comply with any of the terms of this Agreement, except as
otherwise provided in this Agreement, the complying party shall have the option
to cancel this Agreement upon ten (10) days written notice to the other party of
the alleged breach, default or failure by such other party to cure such breach
within such ten (10) day period. The non-defaulting party shall promptly
18
notify the defaulting party in writing of any such alleged breach, default or
failure upon obtaining knowledge thereof. The Closing Date shall be extended to
the extent necessary to afford the defaulting party the full ten-day period
within which to cure such breach, default or failure; provided, however, that
the failure or refusal by a party to perform on the scheduled Closing Date
(except in respect of a Pending Default by the other party) shall be deemed to
be an immediate default without the necessity of notice; and provided further,
that if the Closing Date shall have been once extended as a result of default by
a party, such party shall be not be entitled to any further notice or cure
rights with respect to that or any other default. For purposes of this SECTION
10.4, a "Pending Default" shall be a default for which (i) written notice was
given by the non-defaulting party, and (ii) the cure period extends beyond the
scheduled Closing Date.
11. MISCELLANEOUS.
11.1 ENTIRE AGREEMENT. This Agreement, together with the Exhibits
attached hereto, all of which are incorporated by reference, is the entire
agreement between the parties with respect to the subject matter hereof, and no
alteration, modification or interpretation hereof shall be binding unless in
writing and signed by both parties.
11.2 SEVERABILITY. If any provision of this Agreement or application to
any party or circumstances shall be determined by any court of competent
jurisdiction to be invalid and unenforceable to any extent, the remainder of
this Agreement or the application of such provision to such person or
circumstances, other than those as to which it is so determined invalid or
unenforceable, shall not be affected thereby, and each provision hereof shall be
valid and shall be enforced to the fullest extent permitted by law.
11.3 APPLICABLE LAW. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.
11.4 ASSIGNABILITY. Except for an assignment to an entity (a) in which
Purchaser or an affiliate of Purchaser is a manager or general partner, or (b)
which is owned and controlled, directly or indirectly, by Inland Western Retail
Real Estate Trust, Inc. with seven days written notice to Seller prior to the
Closing in both (a) and (b), Purchaser may not assign this Agreement without
first obtaining Seller's written consent. Any assignment in contravention of
this provision shall be void. No assignment shall release the Purchaser herein
named from any obligation or liability under this Agreement. Any assignee shall
be deemed to have made any and all representations and warranties made by
Purchaser hereunder, as if the assignee were the original signatory hereto. If
Purchaser requests Seller's written consent to any assignment, Purchaser shall
(1) notify Seller in writing of the proposed assignment; (2) provide Seller with
the name and address of the proposed assignee; and (3) provide Seller with a
copy of the proposed assignment.
11.5 SUCCESSORS BOUND. This Agreement shall be binding upon and inure to
the benefit of Purchaser and Seller and their respective successors and
permitted assigns.
11.6 INTENTIONALLY OMITTED.
11.7 NO PUBLIC DISCLOSURE. Purchaser shall make no public disclosure of
the terms of this transaction, either before or after Closing, without the prior
written consent of Seller, except that Purchaser may discuss the transaction in
confidence with proposed joint venturers or prospective mortgagees.
19
11.8 CAPTIONS. The captions in this Agreement are inserted only as a
matter of convenience and for reference and in no way define, limit or describe
the scope of this Agreement or the scope or content of any of it provisions.
11.9 ATTORNEYS' FEES. In the event of any litigation arising out of this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees
and costs.
11.10 NO PARTNERSHIP. Nothing contained in this Agreement shall be
construed to create a partnership or joint venture between the parties or their
successors in interest.
11.11 TIME OF ESSENCE. Subject to the provisions of Section 10.3 and 10.4
of this Agreement, time is of the essence in this Agreement.
11.12 COUNTERPARTS. This Agreement may be executed and delivered in any
number of counterparts, each of which so executed and delivered shall be deemed
to be an original and all of which shall constitute one and the same instrument.
11.13 RECORDATION. Purchaser and Seller agree not to record this Agreement
or any memorandum hereof.
11.14 PROPER EXECUTION. The submission by Seller to Purchaser of this
Agreement in unsigned form shall be deemed to be a submission solely for
Purchaser's consideration and not for acceptance and execution. Such submission
shall have no binding force and effect, shall not constitute an option, and
shall not confer any rights upon Purchaser or impose any obligations upon Seller
irrespective of any reliance thereon, change of position or partial performance.
The submission by Seller of this Agreement for execution by Purchaser and the
actual execution and delivery thereof by Purchaser to Seller shall similarly
have no binding force and effect on Seller unless and until Seller shall have
executed this Agreement and the Deposit shall have been received by the Title
Company and a counterpart thereof shall have been delivered to Purchaser.
11.15 TAX PROTEST. If, as a result of any tax protest or otherwise, any
refund is paid or reduction of any real property or other tax or assessment is
made available relating to the Property with respect to any period for which,
under the terms of this Agreement, Seller is responsible, Seller shall be
entitled to receive or retain such refund or the benefit of such reduction, less
the equitable prorated costs of collection, and Purchaser shall be entitled to
keep and retain the balance thereof.
11.16 SURVIVAL AND LIMITATION OF REPRESENTATIONS AND WARRANTIES; SELLER'S
KNOWLEDGE. The representations and warranties set forth in this Agreement are
made as of the date of this Agreement and are remade as of the Closing Date and
SECTION 5.1 shall survive the Closing but written notification of any claim
arising therefrom must be received by Seller within six (6) months of the
Closing Date or such claim shall be forever barred and Seller shall have no
liability with respect thereto. The aggregate liability of Seller for breach of
any representations and warranties shall not exceed $200,000; and recovery of
actual damages up to that amount is Purchaser's sole and exclusive remedy for
any such breach; provided, however, Seller shall have no liability to Purchaser
for matters disclosed by Seller or discovered by Purchaser prior to Closing. For
matters disclosed or discovered prior to Closing, Purchaser's sole rights and
remedies shall be as set forth in SECTION 10.3. Whenever a representation or
warranty is made in this Agreement on the basis of the best knowledge of Seller,
such representation and warranty is made with the exclusion of any facts
otherwise known or disclosed to Purchaser,
20
and is made solely on the basis of the actual knowledge without inquiry or
investigation of Xxxxxx Xxxxxx, Xxxxxxx X. Xxxxxxxxxxx and Xxxx Xxxxxx, being
the individuals having responsibility for the management and sale of the
Property.
11.17 TIME TO EXECUTE AND DELIVER. This Agreement shall be void if one
fully executed original is not received by Seller on or before 12:00 p.m. C.D.T.
on August 9, 2004.
11.18 NO PROCESSING. Without Seller's prior written consent (which consent
shall not be unreasonably withheld), until the Closing, Purchaser shall not make
any application to any governmental agency for any permit, approval, license or
other entitlement for the Property or the use or development thereof, or have
any communications with any governmental agency or official relating to the
condition (environmental or otherwise) of the Property.
11.19 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 at, 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 (such day, a
"BUSINESS DAY"). The last day of any period of time described herein shall be
deemed to end at 5:00 p.m. Dallas, Texas time.
11.20 INTENTIONALLY DELETED.
11.21 LIMITATION OF LIABILITY. Purchaser hereby acknowledges and agrees
that in no event shall any limited partner of Seller ever be liable to Purchaser
as a result of a breach of this Agreement, and Purchaser agrees to look solely
to Seller or the general partner of Seller for satisfaction of any claim, loss
or damage, even if Seller is hereinafter dissolved. Seller acknowledges that
notwithstanding anything to the contrary contained in this Agreement, no
director, officer, employee, shareholder, member, manager, partner or agent of
Purchaser nor any of the directors, officers, employees, shareholders, members,
managers, partners or agents of any of the directors, officers, employees,
shareholders, members, managers, partners or agents of Purchaser nor any other
person, partnership, corporation or trust, as principal of Purchaser, whether
disclosed or undisclosed (collectively, the "PURCHASER EXCULPATED PARTIES")
shall have any personal obligation or liability under this Agreement, and Seller
shall not seek to assert any claim or enforce any of its rights under this
Agreement against any Purchaser Exculpated Party.
11.22 MANAGEMENT AGREEMENT. At Closing Purchaser, as owner, and Lincoln
Property Company Commercial, Inc., or one of its affiliates ("LPC"), as manager,
shall execute and deliver a Sub-Management and Leasing Agreement (the
"MANAGEMENT AGREEMENT"), employing terms as set forth in EXHIBIT 11.22. The
parties shall negotiate in good faith to agree on a form of Management
Agreement, employing said terms, prior to the Approval Date.
11.23 EFFECTIVE DATE. The last date that both Purchaser and Seller shall
have executed this Agreement and returned executed counterparts to the other
party shall be deemed to be the Effective Date.
21
IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement on
the date set forth below, effective as of the date set forth above.
SELLER: NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
Date: August 6, 2004 By: /s/ Xxxxxx Xxxxxx
-----------------------------------
Name: XXXXXX XXXXXX
---------------------------------
Title:
--------------------------------
22
PURCHASER:
PURCHASER: INLAND REAL ESATE ACQUISITIONS, INC.
Date: August 6, 2004 By: /s/ Xxxxxxx Xxxx
-----------------------------------------------
Name: XXXXXXX XXXX
---------------------------------------------
Title: Acquisition Coordinator - Agent
--------------------------------------------
23
An original, fully executed copy of this Agreement, together with the
Deposit, has been received by the Title Company this 2nd day of Sept, 2004, and
by execution hereof the Title Company hereby covenants and agrees to be bound by
the terms of this Agreement.
REPUBLIC TITLE OF TEXAS, INC.
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------------------
Name: XXXXXX X. XXXXXX
---------------------------------------------
Title: SR. V.P
--------------------------------------------
24
EXHIBIT 1.1.1
LEGAL DESCRIPTION
BEING a tract or parcel of land situated in the City of Dallas, Dallas County,
Texas being a part of the X. X. Xxxxxxxxxxx Survey, Abstract No. 77, and being
all of Xxx 0, Xxxxx X/0000, Xxxxxxxxxxxx Addition, an addition to the City of
Dallas, Dallas County, Texas as recorded in Volume 97182, Page 0000, Xxxx
Xxxxxxx, Xxxxxx Xxxxxx, Xxxxx, more particularly described as follows:
BEGINNING at a chisel xxxx set for corner in the south line of Northwest Highway
(a variable width right-of-way), said chisel xxxx being the northerly common
corner between said Xxx 0 xxx Xxx 0 xx Xxxxx P/5450 of said Lincolnshire
Addition;
THENCE easterly along the common line between said Northwest Highway and said
Lot 2 along a curve to the left having a radius of 5241.80 feet, a central angle
of 01 degree 27 minutes 43 seconds and a chord bearing South 89 degrees 04
minutes 08 seconds East a distance of 133.75 feet for an arc distance of 133.75
feet to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for the end of
said curve to the left;
THENCE South 89 degrees 48 minutes 00 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 37.30 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner;
THENCE South 46 degrees 57 minutes 00 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 15.17 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner;
THENCE South 89 degrees 48 minutes 00 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 15.00 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner;
THENCE North 47 degrees 10 minutes 20 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 15.06 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner;
THENCE South 89 degrees 48 minutes 00 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 138.89 feet
to a chisel xxxx set for corner;
THENCE South 81 degrees 49 minutes 33 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 259.38 feet
to a highway monument found for corner;
THENCE South 81 degrees 20 minutes 04 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 51.09 feet
to a highway monument found for corner;
THENCE South 84 degrees 42 minutes 33 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 86.83 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner;
THENCE South 88 degrees 26 minutes 51 seconds East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 66.30 feet
to a highway monument found for corner;
THENCE South 89 degrees 50 minutes 01 second East continuing along the common
line between said Northwest Highway and said Lot 2 for a distance of 61.54 feet
to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for corner at the
northerly common corner between said Xxx 0 xxx Xxx 0, Xxxxx P/5450 said
Lincolnshire Addition;
THENCE South 00 degrees 08 minutes 55 seconds West departing the south line of
said Northwest Highway and along the common line between said Lot 2 and said Lot
5 for a distance of 527.00 feet to a chisel xxxx set for corner at the southeast
corner of said Lot 2, said chisel xxxx also being in the north line of Xxx 0,
Xxxxx X/0000 xx xxxx Xxxxxxxxxxxx Addition;
THENCE North 89 degrees 51 minutes 05 seconds West along the common line between
said Lot 2 and said Lot 1 for a distance of 791.69 feet to a chisel xxxx set for
a point of curvature of a curve to the right;
THENCE northwesterly continuing along the common line between said Lot 2 and
said Lot 1 and along said curve to the right having a radius of 40.00 feet, a
central angle of 90 degrees 00 minutes 00 seconds and a chord bearing North 44
degrees 51 minutes 05 seconds West a distance of 56.57 for an arc distance of
62.83 feet to a chisel xxxx set for the end of said curve to the right;
THENCE North 00 degrees 08 minutes 55 seconds East continuing along the common
line between said Lot 2 and said Lot 1 for a distance of 205.17 feet to a chisel
xxxx set for corner;
THENCE South 53 degrees 52 minutes 11 seconds West continuing along the common
line between said Lot 2 and said Lot 1 for a distance of 156.72 feet to a chisel
xxxx set for corner;
THENCE South 88 degrees 40 minutes 18 seconds West continuing along the common
line between said Lot 2 and said Lot 1 for a distance of 78.67 feet to a chisel
xxxx set for corner in the easterly line of said Xxxxxx Haven Xxxx;
THENCE North 01 degree 19 minutes 42 seconds West along the easterly line of
said Xxxxxx Haven Xxxx for a distance of 28.93 feet to a chisel xxxx set for the
beginning of a curve to the left;
THENCE northwesterly continuing along the easterly line of said Xxxxxx Haven
Xxxx and along said curve to the left having a radius of 630.00 feet, a central
angle of 13 degrees 52 minutes 41 seconds and a chord bearing North 08 degrees
16 minutes 03 seconds West a distance of 152.22 feet for an arc distance of
152.60 feet to a 1/2" iron rod with yellow plastic cap stamped "RLG" set for
corner at the end of said curve to the left, said rod being the westerly common
corner between said Lot 2 and said Lot 3;
THENCE North 89 degrees 49 minutes 47 seconds East departing the easterly line
of said Xxxxxx Haven Xxxx and along the common line between said Lot 2 and said
Lot 3 for a distance of 190.98 feet to a chisel xxxx set for corner;
THENCE North 00 degrees 08 minutes 55 seconds East continuing along said common
line for a distance of 251.29 feet to the POINT OF BEGINNING and containing
505,844 square feet or 11.6126 acres, more or less.
TRACT 2: EASEMENT TRACT
Non-exclusive easements, for the benefit of Tract 1, over the land described
below, as granted or purported to be granted in Declaration of Covenants, of
Covenants, Conditions, Restrictions and Reciprocal Easements, filed 9/24/1997,
recorded in Volume 97186, Page 0000, Xxxx Xxxxxxx xx Xxxxxx Xxxxxx, Xxxxx, as
amended by First Amendment to Declaration of Covenants, Conditions, Restrictions
and Reciprocal Easements dated effective 6/16/1998, filed 6/23/1998, recorded in
Volume 98121, Page 9718, Deed Records of Dallas County, Texas, and by Second
Amendment filed 12/20/2001, recorded in volume 2001247, Page 0000, Xxxx Xxxxxxx,
Xxxxxx Xxxxxx, Xxxxx, covering the following described property:
Being Xxxx 0, 0, 0 xxx 0, xx Xxxxx P/5450, of LINCOLNSHIRE ADDITION, an Addition
to the City of Dallas, Texas, according to the Map thereof recorded in Volume
97182, Page 4718, of the Map Records of Dallas County, Texas.
TRACT 3:
The Private Drive Easement Tract Non-Exclusive easement, for the benefit of
Tract 1, over the land described below, as granted in Easement Agreement filed
09/24/1997, recorded in Volume 99003, Page 0000, Xxxx Xxxxxxx, Xxxxxx Xxxxxx,
Xxxxx, covering the following described property:
BEING a tract or parcel of land situated in the Xxxxxxx Xxxxxxxxxxx Survey,
Abstract No. 77 in the City of Dallas, Dallas County, Texas, being a part of Xxx
0, Xxxxx X/0000, Xxxxxxxxxxxx Addition, an addition to the City of Dallas
according to the plat recorded in Volume 97182, Page 0000, Xxxx Xxxxxxx, Xxxxxx
Xxxxxx, Xxxxx, more particularly described as follows:
BEGINNING at a chisel xxxx found for corner at the southerly common corner
between said Xxx 0 xxx Xxx 0 xx xxxx Xxxxx P/5450, Lincolnshire Addition;
THENCE North 00 degrees 08 minutes 55 seconds East along the common line between
said Lot 5 and said Lot 2 for a distance of 36.00 feet to a chisel xxxx set for
corner;
THENCE South 89 degrees 51 minutes 05 seconds East, East, 36.00 feet North of
and parallel to the North line of Lot 1 of said Block P/5450, Lincolnshire
Addition, for a distance of 305.78 feet to a chisel xxxx set for corner;
THENCE South 00 degrees 47 minutes 05 seconds East, 36.00 feet East of and
parallel to the East line of said Lot 1, for a distance of 619.71 feet to a 1/2"
iron rod with yellow plastic cap stamped "RLG" found for corner;
THENCE South 04 degrees 34 minutes 41 seconds East, passing at 44.96 feet a 1/2"
iron rod with yellow plastic cap stamped "RLG" found at the Northwest corner of
Lot 4, said Block P/5450, Lincolnshire Addition and continuing along the common
line between said Lot 5 and said Lot 4 for a distance of 106.19 feet, for a
total distance of 151.15 feet to a 1/2" iron rod with yellow plastic cap stamped
"RLG" found for an angle point;
THENCE South 00 degrees 47 minutes 05 seconds East continuing along said common
line for a distance of 69.74 feet to a 1/2" iron rod with yellow plastic cap
stamped "RLG" found for the beginning of a curve to the right;
THENCE southerly continuing along said common line and along said curve to the
right having a radius of 145.50 feet, a central angle of 37 degrees 18 minutes
24 seconds and a chord bearing South 17 degrees 52 minutes 07 seconds West a
distance of 93.07 feet, for an arc distance of 94.74 feet to a 1/2" iron rod
with yellow plastic cap stamped "RLG" found for the end of said curve to the
right;
THENCE South 36 degrees 31 minutes 19 seconds West continuing along said common
line for a distance of 13.56 feet to a 1/2" iron rod with yellow plastic cap
stamped "RLG" found for corner;
THENCE South 11 degrees 45 minutes 52 seconds East continuing along said common
line for a distance of 19.96 feet to a 1/2" iron rod with yellow plastic cap
stamped "RLG" found for corner in the northeasterly line of Xxxxxx Haven Xxxx (a
variable right-of-way), said rod being the beginning of a non-tangent curve to
the right;
THENCE northwesterly along the northeasterly line of said Xxxxxx Haven Xxxx and
along said curve to the right having a radius of 550.00 feet, a central angle of
08 degrees 26 minutes 53 seconds and a chord bearing North 56 degrees 36 minutes
29 seconds West a distance of 81.02 feet, for an are distance of 81.10 feet to a
1/2" iron rod with yellow plastic cap stamped "RLG" found for the end of said
curve to the right, said rod being the most southerly corner of said Lot 1;
THENCE North 81 degrees 48 minutes 31 seconds East departing the northeasterly
line of said Xxxxxx Haven Xxxx and along the common line between said Lot 5 and
said Lot 1 for a distance of 14.07 feet to a 1/2" iron rod with yellow plastic
cap stamped "RLG" found corner;
THENCE North 36 degrees 31 minutes 19 seconds East continuing along said common
line for a distance of 28.76 feet to a 1/2" iron rod with yellow plastic cap
stamped "RLG" found for the beginning of a tangent curve to the left;
THENCE northeasterly continuing along said common line and along said curve to
the left having a radius of 94.50 feet, a central angle of 37 degrees 18 minutes
24 seconds and a chord bearing North 17 degrees 52 minutes 07 minutes East a
distance of 61.45 feet, for an arc distance of 61.53 feet to a 1/2" iron rod
with yellow plastic cap stamped "RLG" found for the end of said curve to the
left;
THENCE North 00 degrees 47 minutes 05 seconds West continuing along said common
line for a distance of 796.02 feet to a chisel xxxx found for corner, said
chisel xxxx being the Northeast corner of said Lot 1;
THENCE North 89 degrees 51 minutes 05 seconds West along said common line for a
distance of 265.87 feet to the POINT OF BEGINNING and containing 51,073 square
feet or 1.1725 acres, more or less.
EXHIBIT 1.1.3
INVENTORY OF PERSONAL PROPERTY
[SEE ATTACHED]
NONE
Note: The statue of the policeman writing a ticket is separate property of a
third party NOT being conveyed by this transaction.
EXHIBIT 1.1.6
SCHEDULE OF LEASES
[SEE ATTACHED]
EXHIBIT 3.3
SCHEDULE OF CONTRACTS
[SEE ATTACHED]
EXHIBIT 3.3.1
LINCOLN PARK SHOPPING CENTER DUE DILIGENCE ITEMS
TENANT INFORMATION
1. A current rent roll (the "RENT ROLL") for the Property in the form
currently maintained by Seller.
2. All Leases and amendments thereto, including all subleases and Lease
guaranties.
3. All leasing commission/brokerage agreements.
OPERATING INFORMATION
1. All service, maintenance, equipment and/or supply contracts
("OPERATING AGREEMENTS").
2. Real estate tax bills (including special assessments) for the prior
two (2) years.
3. Year-to-date 2004 operating statements.
4. Year-end 2003 Lease occupancy expense reconciliations.
OTHER
1. Seller's most current title policy, report or commitment.
2. Seller's most recent survey.
3. Any existing environmental reports.
4. Such other items as Purchaser may reasonably request.
EXHIBIT 4.6
FORM OF TENANT ESTOPPEL CERTIFICATE
___________________________________(the "TENANT") hereby certifies to
NORTH LINCPARK, LTD., a Texas limited partnership ("OWNER"), and
______________________, its successors or assigns ("PURCHASER") as follows:
1. Pursuant to that certain Lease dated _______________, ______ (the
"LEASE"). Tenant leases ________________ square feet of space (the
"PREMISES"). The Lease, as amended, modified and supplemented, is in
full force and effect, and represents the entire agreement between
Tenant and Owner for the Property. There are no amendments,
modifications or supplements to the Lease, whether oral or written,
except as follows (include the date of each amendment, modification
or supplement): __________________________________________________.
A true and correct copy of the Lease, as amended, modified and
supplemented, is attached hereto as EXHIBIT A.
2. The term of the Lease began on _______________, _____ and will end
on ____________________, 20___. Tenant has accepted the Premises, is
in occupancy, and is paying rent under the Lease.
3. The Lease DOES/DOES NOT provide for an option to extend the term of
the Lease for _______________ years. Except as expressly provided in
the Lease, Tenant does not have any right or option to renew or
extend the term of the Lease, to lease other space at the Property,
nor any preferential right to purchase all or any part of the
Premises or the Property.
4. The Lease is presently in full force and effect and neither Owner
nor Tenant is in default thereunder. There exist no facts that would
constitute a basis for any such default upon the lapse of time or
the giving of notice or both.
5. Tenant is currently paying [Base Monthly] Rent under the Lease in
the amount of $_______________ and estimated monthly pass throughs
in the amount of ________________. As of the date of this
certificate, to the knowledge of Tenant, there exist no offsets,
counterclaims, or defenses of Tenant under the Lease against Owner,
and there exist no events that would constitute a basis for any such
offset, counterclaim, or defense against Owner upon the lapse of
time or the giving of notice or both, except the following (if left
blank, there shall be deemed to be none):__________________
6. There are no concessions, bonuses, free rental periods, rebates,
advance rental payments, or other matters affecting the rental
payable by Tenant under the Lease except as described in the
attached Lease
7. A cash security deposit in the amount of $___________________ has
been paid to Owner under the Lease, and Tenant has not given Owner
any other security or similar deposit.
8. All improvements or repairs required under the terms of the Lease to
be made by Owner through the date hereof have been satisfactorily
completed. All allowances and other payments due to Tenant by Owner
under the terms of the Lease have been paid in full, except the
following (if left blank, there shall be deemed to be
none):_________________________________________________________.
9. Tenant acknowledges that: (a) Purchaser will rely on the statements
of Tenant in Purchaser's decision to purchase the Property from
Owner, and (b) Owner may assign its interest in the Lease to
Purchaser and agrees, upon receipt of notice of such assignment from
Owner and Purchaser, to attorn to Purchaser and to perform all of
Tenant's obligations as the tenant under the Lease, including,
without limitation, the payment of rent, directly to Purchaser, or
its agent, as the landlord under the Lease, from and after the date
of such notice.
Dated this ________ day of _______________, 2004.
[NAME OF TENANT]
By:
------------------------------------------
Name:
---------------------------------
Title:
---------------------------------------
EXHIBIT 9.2.1
FORM OF SPECIAL WARRANTY DEED
NOTICE OF CONFIDENTIALITY RIGHTS
IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING
INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE
PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE
NUMBER.
SPECIAL WARRANTY DEED
STATE OF TEXAS )
) KNOW ALL MEN BY THESE PRESENTS THAT:
COUNTY OF DALLAS )
North Lincpark, Ltd., a Texas limited partnership (hereinafter called
"GRANTOR"), whose address is 0000 Xxxxxxx Xxxxx, 000 X. Xxxxx, Xxxxxx, Xxxxx
00000, for and in consideration of the sum of Ten Dollars ($10.00) and other
valuable consideration paid to Grantor by______________________________________
_____________________________, a__________________________________ (hereinafter
called "GRANTEE"), whose address is ___________________________________, the
receipt and sufficiency of which are hereby acknowledged, does hereby GRANT,
SELL, CONVEY, ASSIGN and DELIVER to Grantee the real property described in
EXHIBIT A attached hereto and made a part hereof, together with all buildings
and other improvements situated thereon, all fixtures and other property affixed
thereto and all right, title and interest of Grantor in and to adjacent streets,
alleys and rights-of-way, subject to the encumbrances described in EXHIBIT B
attached hereto and made a part hereof (hereinafter called the "PERMITTED
ENCUMBRANCES").
TO HAVE AND TO HOLD the herein described property, together with all and
singular the rights and appurtenances thereto in anywise belonging unto Grantee,
its successors and assigns, forever, and Grantor does hereby bind itself and its
successors and assigns to warrant and forever defend all and singular the said
premises unto Grantee, its successors and assigns against every person
whomsoever lawfully claiming, or to claim the same, or any part thereof, by,
through, or under Grantor, but not otherwise, subject however, to the Permitted
Encumbrances.
Grantee hereby assumes the payment of 2004 ad valorem taxes on the herein
described property.
IN WITNESS WHEREOF, this Deed is executed by Grantor on this _____ day of
__________________, 2004, to be effective as of ______________, 2004.
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
STATE OF TEXAS )
)
COUNTY OF DALLAS )
This instrument was acknowledged before me on ____________, 2004 by
_____________________, _______________ of NP Retail - GP, Inc., a Texas
corporation, Managing General Partner of, and on behalf of, Lincoln Property
Company No. 2521, Ltd, a Texas limited partnership, General Partner of, and on
behalf of, LPC Park Limited Partnership, a Texas limited partnership, General
Partner of, and on behalf of, NORTH LINCPARK, LTD., a Texas limited partnership,
on behalf of said partnership.
-----------------------------------------
Notary Public, State of Texas
My Commission Expires: Print Name of Notary
___________________________ _________________________________________
The address of Grantee is:
______________________________________
______________________________________
______________________________________
EXHIBIT 9.2.2
FORM OF XXXX OF SALE
For valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, NORTH LINCPARK, LTD., a Texas limited partnership (the
"SELLER"), hereby conveys to __________________________________________________,
a ________________________________(the "PURCHASER"), all of Seller's right,
title and interest in and to those certain items of personal property described
on EXHIBIT A attached hereto and made a part hereof (the "PERSONAL PROPERTY")
relating to certain real property known as Lincoln Park Shopping Center, 0000
Xxxx Xxxxxxxxx Xxxxxxx, Xxxxxx, Xxxxx 00000.
Seller has not made and does not make any express or implied warranty or
representation of any kind whatsoever with respect to the Personal Property,
including, but not limited to: title; merchantability of the Personal Property
or its fitness for any particular purpose; the design or condition of the
Personal Property; the quality or capacity of the Personal Property; workmanship
or compliance of the Personal Property with the requirements of any law, rule,
specification or contract pertaining thereto; patent infringement or latent
defects. Purchaser accepts the Personal Property on an "AS IS, WHERE IS" basis,
and "WITH ALL FAULTS."
IN WITNESS WHEREOF, Seller has caused this instrument to be executed and
delivered as of the _______ of _____________, 2004.
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
EXHIBIT 9.2.3
FORM OF ASSIGNMENT AND ASSUMPTION OF LEASES
For valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, North Lincpark, Ltd., a Texas limited partnership (the
"ASSIGNOR"), hereby assigns and delegates to___________________________________
______________, a ________________________ (the "ASSIGNEE"), and Assignee hereby
agrees to assume and accept the assignment and delegation of all of Assignor's
right, title and interest in and to and obligations under the leases and the
security deposits held by Assignor relating to the property known as Lincoln
Park Shopping Center and more particularly described on EXHIBIT A attached
hereto. The leases and security deposits are listed on EXHIBIT B attached
hereto.
If any litigation between Assignor and Assignee arises out of the
obligations of the parties under this Assignment or concerning the meaning or
interpretation of any provision contained herein, the losing party shall pay the
prevailing party's costs and expenses of such litigation, including, without
limitation, reasonable attorneys' fees.
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their successors and assigns. The provisions of this
Agreement are subject to the provisions of SECTION 11.21 of the
Purchase and
Sale Agreement dated August ___, 2004 between Assignor and Assignee.
This Agreement may be executed and delivered in any number of
counterparts, each of which so executed and delivered shall be deemed to be an
original and all of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment
effective as of the ______ day of ____________, 2004.
ASSIGNOR:
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
-----------------------------------
Name:
---------------------------------
Title:
--------------------------------
ASSIGNEE:
EXHIBIT 9.2.4
FORM OF ASSIGNMENT AND ASSUMPTION OF CONTRACTS
In consideration of One Dollar and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, North Lincpark,
Ltd., a Texas limited partnership ("ASSIGNOR"), hereby assigns and delegates to
________________________________________________, a ____________________________
_________ (the "ASSIGNEE"), with an office and place of business at ____________
_____________________, and Assignee hereby assumes and accepts the assignment
and delegation of all of Assignor's right, title and interest in and to the
contracts (the "CONTRACTS'") described on EXHIBIT A attached hereto relating to
certain real property known as Lincoln Park Shopping Center and located at _____
____ Northwest Highway, Dallas, Texas, and Assignee hereby accepts such
assignment.
If any litigation between Assignor and Assignee arises out of the
obligations of the parties under this Assignment or concerning the meaning or
interpretation of any provision contained herein, the losing party shall pay the
prevailing party's costs and expenses of such litigation including, without
limitation, reasonable attorneys' fees.
This Agreement may be executed and delivered in any number of counterparts,
each of which so executed and delivered shall be deemed to be an original and
all of which shall constitute one and the same instrument.
This Assignment shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and assigns.
The provisions of this Assignment are subject to the provisions of SECTION
11.21 of the
Purchase and Sale Agreement dated August ______, 2004 between
Assignor and Assignee.
IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment
effective as of the _____________ day of ___________, 2004.
ASSIGNOR:
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
ASSIGNEE:
EXHIBIT 9.2.7
FORM OF AFFIDAVIT PURSUANT TO FOREIGN INVESTMENT
AND REAL PROPERTY TAX ACT
The undersigned hereby declares that the name, address and United States
taxpayer identification number of the owner of the real property described in
EXHIBIT A attached hereto and incorporated herein by reference is as follows:
NAME AND ADDRESS TAX I.D. NUMBER
North Lincpark, Ltd. 00-0000000
0000 Xxxxxxx Xxxxx
000 X. Xxxxx
Xxxxxx, Xxxxx 00000
There is no other person or entity who has an ownership interest in the
property. The owner is North Lincpark, Ltd., a limited partnership organized and
existing under the laws of the State of Texas, and, as such, is not a foreign
citizen or entity. Further, Transferor is not a "disregarded entity" as defined
in IRS Regulation 1.1445-2(b)(iii)
The undersigned understands that the purchaser of the property intends to
rely on the foregoing representations in connection with the United States
Foreign Investment and Real Property Act.
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
EXHIBIT 9.2.9
FORM OF TENANT NOTICE LETTER
__________, 2004
Dear Tenant:
You will find attached hereto as SCHEDULE 1 a Tenant Notice evidencing that
as of ___________________, 2004, North Lincpark, Ltd., the current owner of the
landlord's interest under your lease, has sold the project in which you have a
lease to a new owner, _________________________________________________________
("New Owner"), and that New Owner has received and is responsible for your
security deposit under your lease.
Unless and until you are otherwise notified in writing by New Owner, the
address of New Owner for all purposes under your lease (including the payments
of rentals, the recoupment of any security deposits, and the giving of any
notices provided for in your lease) is:
________________________________________
________________________________________
________________________________________
SELLER:
NORTH LINCPARK, LTD., a Texas limited partnership
By: LPC Park Limited Partnership, a Texas limited
partnership, its General Partner
By: Lincoln Property Company No. 2521, Ltd,
a Texas limited partnership,
General Partner
By: NP Retail - GP, Inc., a Texas
corporation, Managing General
Partner
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
NEW OWNER:
SCHEDULE 1 TO
TENANT NOTICE LETTER
RE: Your Lease (the "LEASE") in Lincoln Park Shopping Center, Dallas,
Dallas County, Texas (the "PROPERTY")
Dear Tenant:
You are hereby notified that North Lincpark, Ltd. ("SELLER"), as owner of
the Property and the current owner of the landlord's interest in the Lease, has
sold the Property to ________________________________, _________________________
("NEW OWNER"), as of the date set forth in the letter to which this Tenant
Notice is attached, and in connection with such sale, Seller has assigned and
transferred its interest in the Lease and any and all security deposits
thereunder or relating thereto to New Owner, and New Owner has assumed and
agreed to perform all of the landlord's obligations under the Lease (including
any obligations set forth in the Lease to repay or account for any security
deposits thereunder from and after such date). Accordingly, (a) all your
obligations under the Lease from and after the date of this Tenant Notice,
including your obligation to pay rent, shall be performable to and for the
benefit of New Owner, its successors and assigns, and (b) all the obligations of
landlord under the Lease, including any obligations to repay or account for any
security deposits thereunder, shall be the binding obligation of New Owner and
its successors and assigns. The amount of the security deposit received by New
Owner and being held by New Owner with respect to the Lease is $_______________.
EXHIBIT 9.2.11
FORM OF KPMG AUDIT LETTER
________ ______, 2004
KPMG LLP
KPMG PLAZA
000 XXXX XXXXXX XXXXX
Xxxxxxx, XX 00000
Ladies and Gentlemen:
We, the undersigned, the general partner of the owner and Seller (herein so
called) of Lincoln Park Shopping Center, Dallas, Texas (the "Property") are
confirming our understanding that your audit of the Historical Summary of Gross
Income and Direct Operating Expenses ("Historical Summary") generated by you
using information provided by Seller for the calendar year ended December, 2003,
during our period of ownership will be made for the purpose of expressing an
opinion by you to your client, ____________________________ ("Buyer"), as to
whether the Historical Summary presents fairly, in all material respects, the
gross income and direct operating expenses in conformity with the CASH OR
ACCRUAL basis of accounting. In connection with your audit, we confirm, to our
actual knowledge without additional investigation or inquiry, the following
representations are made as to the audit:
1. We will make available to you:
a) All financial records and related data for the Property reasonably
requested by you in our possession.
2. There have been no:
a) Instances of fraud involving any member of management or employees who have
significant roles in internal control, nor are we aware of instances of
fraud by others.
b) Communications from regulatory agencies concerning non-compliance with, or
deficiencies in, financial reporting practices received by the undersigned
that could reasonably be expected to have a material effect on the
information provided by the undersigned to create the Historical Summary.
c) Violations or possible violations of laws or regulations for which we have
received actual notices, the effects of which should be considered for
disclosure in the Historical Summary or as a basis for recording the loss
contingency, nor are we aware of any violations of laws or regulations that
to our actual knowledge would have an adverse impact upon the materials
delivered to you.
d) Nor are we aware of any entries in the minutes of any applicable board or
summary of recent meetings for which minutes have not yet been prepared
which conflict with the financial records provided or the statements made
herein.
3. There are no:
a) Material transactions that have not been properly recorded in the
accounting records provided by Seller used to create the Historical
Summary.
b) Events that have occurred subsequent to the balance sheet date and through
the date of this letter that would require adjustments to or disclosure to
the Buyer for inclusion in the Historical Summary.
c) Uninsured claims, asserted claims, material liabilities or loss
contingencies that we believe should have been recorded in the financial
statements that have not been recorded.
4. We have received no notices indicating that the Property has failed to
comply with all aspects of the contractual agreements that would have a
material effect on the operation of the Property in the event of
noncompliance.
5. We have provided information to Buyer that includes all income from
operating leases.
6. Terms such as "to our knowledge," "to the best of our knowledge," "to our
actual knowledge" or like phrases mean the actual present and conscious
awareness or knowledge of Xxxx Xxxxxx ("Seller's Representative"), without
any duty of inquiry or investigation; provided that so qualifying Seller's
knowledge shall in no event give rise to any personal liability on the part
of Seller's Representative, or any of them, or any other officer or
employee of Seller, on account of any breach of any representation or
warranty made by Seller herein. Said terms do not include constructive
knowledge, imputed knowledge, or knowledge Seller or such persons do not
have but could have obtained through further investigation or inquiry.
- Continued on Next Page -
Further, we confirm that to our knowledge the financial records do not fail to
disclose any material factors for the Historical Summary.
Very Truly Yours,
LPC PARK LIMITED PARTNERSHIP,
a Texas limited partnership
By: Lincoln Property Company
No. 2521, Ltd, a Texas limited
partnership, General Partner
By: NP Retail - GP, Inc.,
a Texas corporation,
Managing General Partner
By:
--------------------------------
Name:
------------------------------
Title:
-----------------------------
EXHIBIT 9.3
ERISA CERTIFICATE
________________, 2004
North Lincpark, Ltd.
0000 Xxxxxxx Xxxxx
000 Xxxxx Xxxxx
Xxxxxx, Xxxxx 00000
Re: Lincoln Park Shopping Center
Ladies and Gentlemen:
The undersigned hereby represents to you that ____________________________
__________________, a _______________________________________, is a "real estate
operating company" within the meaning of Department of Labor Regulation Section
2510.3-101 and as described in Section 2510.3-101(e) thereof.
Very truly yours,
EXHIBIT 11.22
MANAGEMENT AND LEASING AGREEMENT BUSINESS TERMS
Term: One (1) year
