AGREEMENT OF SALE
THIS AGREEMENT OF SALE (this "Agreement"), is entered into as of the 10th
day of October, 1996, by and between Transwestern Investment Company, L.L.C.,
("Purchaser"), and Pacific Center Investors, a joint venture ("Seller").
W I T N E S S E T H:
1. PURCHASE AND SALE. Purchaser agrees to purchase and Seller agrees to sell
at the price of Sixteen Million Seven Hundred Fifty Thousand Dollars
($16,750,000) ("Purchase Price"), and on the terms and conditions hereinafter
set forth, the property commonly known as Pacific Center I and Pacific Center
II, located in Dallas, Texas, consisting of the following:
1.1 All of Seller's right, title and interest in the real property
("Land") and all buildings and other improvements ("Improvements") situated on
the Land, as more particularly described on Exhibit A attached hereto and made
a part hereof (the Land and the Improvements are sometimes referred to herein
together as the "Property"), together with all easements and appurtenances
thereunto belonging and all of Seller's right, title and interest in and to all
streets, alleys and public ways adjacent thereto, if any, and together with all
of Seller's right, title and interest in and to all strips and gores located on
or adjacent to the Property or located between any parcels constituting the
Land, if any;
1.2 The personal property set forth on Exhibit B attached hereto
("Personal Property"), but shall in all events excluding the personal property
described on Exhibit B under the heading "Excluded Personal Property";
1.3 The tenant leases described in Exhibit C attached hereto and made a
part hereof together with such other tenant leases of the Property as may be
made prior to Closing (as hereinafter defined) in accordance with the terms of
this Agreement ("Leases"), along with all security deposits held by Seller as
landlord under the Leases;
1.4 If and to the extent assignable and to the extent of Seller's
interest therein, if any: (a) all guarantees, warranties and indemnifications,
if any, received from suppliers, contractors, materialmen or subcontractors
arising out of, or in connection with, the installation, construction or
maintenance of the Property including, without limitation, the right to xxx any
obligor for any breach of any covenant, agreement, representation, warranty or
guarantee contained therein; (b) all licenses, permits, certificates of
occupancy and franchises issued by any federal, state, county or municipal
authority relating to the use, maintenance or operation of the Property running
to or in favor of Seller or pertaining to the Property; (c) all trade styles,
and trade names, including, without limitation, the names "Pacific Center I"
and "Pacific Center II", and all contract rights, brochures, manuals, lists of
prospective tenants, advertising material, books and records, utility contracts
and telephone numbers; (d) the plans and specifications for the Improvements
and all unexpired claims and sureties, if any, received in connection with the
construction, improvement or equipment of the Improvements; and (e) those
service and maintenance contracts set forth in Exhibit D except any such
contracts which Purchaser elects not to assume by notice to Seller on or prior
to the termination of the Inspection Period ("Service Contracts").
2. PURCHASE PRICE. The Purchase Price shall be paid by Purchaser as follows:
2.1 Upon the execution of this Agreement by Seller, the sum of One
Hundred Sixty Thousand Dollars ($160,000) ("Xxxxxxx Money"), by wire transfer
to the escrow agent, to be held in escrow by and in accordance with the
provisions of the Escrow Agreement ("Escrow Agreement") attached hereto as
Exhibit E; and
2.2 On the Closing Date (as hereinafter defined), the balance of the
Purchase Price, adjusted in accordance with the prorations, by federally wired
"immediately available" funds, on or before 2:00 p.m. Chicago time. Any
provisions herein providing for the delivery of the Xxxxxxx Money to either
party hereof are intended to mean the Xxxxxxx Money plus any interest earned
thereon.
3. TITLE COMMITMENT AND SURVEY.
3.1 Attached hereto as Exhibit F is a copy of a title commitment for an
owner's standard title insurance policy issued by Charter Title Company, as
agent for Lawyers Title Insurance Corporation, (hereinafter referred to as
"Title Insurer"), dated September 17, 1996 for the Property ("Title
Commitment"). For purposes of this Agreement, "Permitted Exceptions" shall
mean: (a) general ad valorem real estate taxes for the year 1996 and
subsequent years not yet due and payable; (b) association assessments, special
district taxes and related charges not yet due and payable; (c) matters shown
on the Existing Survey (as hereinafter defined); (d) matters caused by the
action or inaction of Purchaser or its agents; (g) the title exceptions set
forth in Schedule B of the Title Commitment as Numbers 1, 2, 4, 5, 9-24 and
27-33; (h) the rights of tenants under leases; and (i) liens or encumbrances of
a definite or ascertainable amount which may be removed or insured over by the
payment of money or other security at the Closing Date, and which Seller
removes or causes to be insured over at the Closing Date in accordance with
Paragraph 5 hereof. All other exceptions to title shall be referred to as
"Unpermitted Exceptions". On the Closing Date, Title Insurer shall deliver to
Purchaser a standard title policy in conformance with the previously delivered
Title Commitment, subject only to Permitted Exceptions (excluding, however, the
Permitted Exceptions described in subclause (i) above) and Unpermitted
Exceptions waived in writing by Purchaser ("Title Policy"). The Title Policy
shall be conclusive evidence of good title as therein shown as to all matters
to be insured by the Title Policy, subject only to the exceptions and
requirements therein stated. Seller shall pay for the costs of the Title
Commitment and Title Policy (including extended coverage over the standard,
pre-printed exceptions, if available and reasonable endorsements (including an
endorsement over the standard survey exception) requested by Purchaser on the
Title Policy).
3.2 Purchaser has received a survey of the Property prepared by
Xxxx-Xxxxx Engineering & Surveying dated May 6, 1983 ("Existing Survey").
Purchaser hereby acknowledges that all matters disclosed by the Existing Survey
are acceptable to Purchaser and are Permitted Exceptions for purposes of
Paragraph 3.1 above. Prior to Closing, Seller shall furnish Purchaser, at
Seller's expense, with a current survey of the Property certified to Purchaser,
Title Company and Purchaser's lender as having been prepared in accordance with
the minimum standard detail requirements for land title surveys jointly
established and adopted in 1992 by the American Land Title Association and the
American Congress of Surveying and Mapping ("Survey").
3.3 The obligations of Purchaser and Seller to pay various costs set
forth in Paragraphs 3.1 and 3.2 shall survive the termination of this
Agreement.
4. PAYMENT OF CLOSING COSTS.
4.1 In addition to the costs set forth in Paragraphs 3.1 and 3.2, Seller
shall pay the costs of the documentary or transfer stamps to be paid with
reference to the Deed (as hereinafter defined) and all other stamps,
intangible, transfer, documentary, recording, sales tax and surtax imposed by
law with reference to any other sale documents delivered in connection with the
sale of the Property to Purchaser.
5. CONDITION OF TITLE.
5.1 If, prior to Closing (as hereinafter defined), a date-down to the
Title Commitment discloses any new Unpermitted Exceptions which, in the
aggregate, do not exceed $25,000 (each, a "Minor Unpermitted Exception"),
Seller shall, at Seller's expense, bond over, cure and/or have such Minor
Unpermitted Exceptions removed from the Title Commitment or have the Title
Insurer commit to insure against loss or damage that may be occasioned by such
Minor Unpermitted Exceptions. Notwithstanding the foregoing, if such date down
to the Title Commitment discloses any new Unpermitted Exceptions which, in the
aggregate, equal or exceed $25,000, Seller shall have the right, but not the
obligation, to bond over, cure and/or have such exceptions removed from the
Title Commitment or to have the Title Insurer commit to insure against loss or
damage that may be occasioned by such Unpermitted Exceptions. If Seller fails
to bond over, cure or have any Unpermitted Exception removed or have the Title
Insurer commit to insure as specified above within five (5) business days from
the date of the date down to the Title Commitment, Purchaser may terminate this
Agreement upon written notice to Seller within three (3) days after the
expiration of such five (5) business day period; provided, however, and
notwithstanding anything contained herein to the contrary, if the Unpermitted
Exception which gives rise to Purchaser's right to terminate was recorded
against the Property as a result of the affirmative action of Seller (and not
by any unrelated third party) or if Seller is able to bond over, cure or remove
a Minor Unpermitted Exception for a cost not to exceed $25,000 or the Title
Insurer is willing to insure over a Minor Unpermitted Exception for a cost not
to exceed $25,000 in accordance with the terms hereof and Seller fails to
expend such funds in either case, then Purchaser shall have the additional
rights contained in Paragraph 14 herein. Absent notice from Purchaser to Seller
in accordance with the preceding sentence, Purchaser shall be deemed to have
elected to take title subject to said Unpermitted Exception, without any
reduction in or setoff against the Purchase Price as a result thereof. If
Purchaser terminates this Agreement in accordance with the terms of this
Paragraph 5.1, this Agreement shall terminate without further action of the
parties and all Xxxxxxx Money theretofore deposited into the escrow by
Purchaser, together with any interest accrued thereon, shall be returned to
Purchaser, and neither party shall have any further liability to the other,
except for those covenants and obligations that specifically survive
termination of this Agreement.
5.2 Seller agrees to convey fee simple title to the Property to Purchaser
by special warranty deed ("Deed") (in the form attached hereto as Exhibit G) in
recordable form subject only to the Permitted Exceptions and any Unpermitted
Exceptions not objected to by Purchaser in accordance with Paragraph 5.1 above.
6. CONDEMNATION, EMINENT DOMAIN, DAMAGE AND CASUALTY.
6.1 Except as provided in the indemnity provisions contained in Paragraph
7.1 of this Agreement, Seller shall bear all risk of loss with respect to the
Property through the Closing. Seller agrees to maintain its existing "all risk"
replacement cost casualty insurance and rent loss insurance in place until the
Closing Date. Notwithstanding the foregoing, in the event of damage to the
Property by fire or other casualty prior to the Closing Date, repair of which
would cost less than or equal to $150,000 (as determined by Seller in good
faith), Purchaser shall not have the right to terminate its obligations under
this Agreement by reason thereof, but Seller shall have the right to elect to
either repair and restore the Property if such repair or restoration may be
completed prior to the Closing Date or to assign and transfer to Purchaser on
the Closing Date all of Seller's right, title and interest in and to all
insurance proceeds paid or payable to Seller on account of such fire or
casualty plus the amount of Seller's insurance deductible. Seller shall
promptly notify Purchaser in writing of any such fire or other casualty and
Seller's estimate of the cost to repair the damage caused thereby. In the event
of damage to the Property by fire or other casualty prior to the Closing Date,
repair of which would cost in excess of $150,000 (as determined by Seller in
good faith), then this Agreement may be terminated at the option of Purchaser,
which option shall be exercised, if at all, by Purchaser's written notice
thereof to Seller within ten (10) business days after Purchaser receives
written notice of such fire or other casualty from Seller and Seller and
Purchaser agree upon the amount of such damages, and upon the exercise of such
option by Purchaser this Agreement shall terminate without further action by
the parties, the Xxxxxxx Money deposited by Purchaser shall be returned to
Purchaser together with interest thereon, and neither party shall have any
further liability or obligations hereunder, except for those covenants and
obligations which expressly survive termination of this Agreement. In the
event that Purchaser does not exercise the option to terminate in accordance
with this Paragraph 6.1, the Closing shall take place on the Closing Date
(which date shall be extended by the parties as necessary if the Closing Date
was scheduled to occur within Purchaser's 10-day election period as provided
above) and Seller shall assign and transfer to Purchaser on the Closing Date
all of Seller's right, title and interest in and to all insurance proceeds paid
or payable to Seller on account of the fire or casualty and shall pay to
Purchaser the amount of Seller's insurance deductible. Notwithstanding anything
contained herein to the contrary, Seller's obligation to transfer all insurance
proceeds paid to Seller and the amount of Seller's insurance deductible as set
forth more fully in this Paragraph 6.1 shall survive the Closing and the
recording of the Deed.
6.2 If between the date of this Agreement and the Closing Date, any
condemnation or eminent domain proceedings are initiated which might result in
the taking of any part of the Property or the taking or closing of any right of
access to the Property, Seller shall immediately notify Purchaser of such
occurrence. In the event that the taking of any part of the Property shall, in
Purchaser's reasonable judgment: (i) impair access to the Property; (ii) cause
any non-compliance with any applicable law, ordinance, rule or regulation of
any federal, state or local authority or governmental agencies having
jurisdiction over the Property or any portion thereof; or (iii) adversely
impair the use of the Property as it is currently being operated (hereinafter
collectively referred to as a "Material Event"), Purchaser may:
6.2.1 terminate this Agreement by written notice to Seller, in
which event the Xxxxxxx Money deposited by Purchaser, together with interest
thereon, shall be returned to Purchaser and all rights and obligations of the
parties hereunder with respect to the closing of this transaction will cease,
except for those covenants and obligations hereunder which expressly survive
termination of this Agreement; or
6.2.2 proceed with the Closing, in which event Seller shall
assign to Purchaser all of Seller's right, title and interest in and to any
award made or to be made in connection with such condemnation or eminent domain
proceedings. Notwithstanding anything contained herein to the contrary,
Seller's obligation to transfer Seller's interest in such award as set forth
more fully in this Paragraph 6.2.2 shall survive the Closing and the recording
of the Deed.
Purchaser shall then notify Seller, within five (5) business days after
Purchaser's receipt of Seller's notice, whether Purchaser elects to exercise
its rights under Paragraph 6.2.1 or Paragraph 6.2.2. Closing shall be delayed,
if necessary, until Purchaser makes such election. If Purchaser fails to make
an election within such five (5) business day period, Purchaser shall be deemed
to have elected to proceed with Closing in accordance with Paragraph 6.2.2. If
between the date of this Agreement and the Closing Date, any condemnation or
eminent domain proceedings are initiated which do not constitute a Material
Event, Purchaser shall be required to proceed with the Closing, in which event
Seller shall assign to Purchaser all of Seller's right, title and interest in
and to any award made in connection with such condemnation or eminent domain
proceedings.
7. INSPECTION AND AS-IS CONDITION.
7.1 During the period commencing on the date hereof and ending at 5:00
p.m. Chicago time on November 10, 1996 (said period being herein referred to as
the "Inspection Period"), Purchaser and the agents, engineers, employees,
contractors and surveyors retained by Purchaser may enter upon the Property to
inspect the Property and to conduct and prepare such studies, tests and surveys
as Purchaser may deem reasonably necessary and appropriate, including, without
limitation, a review of the Leases, the Lease files, and other relevant
contracts and materials located at the Property. In connection with
Purchaser's review of the Property, Seller has delivered to Purchaser copies of
the current rent roll for the Property, the most recent tax and insurance
bills, copies of the Leases, utility account numbers, a personal property
inventory, the Service Contracts, unaudited annual operating statements for the
period ending December 1995 and monthly unaudited operating statements for July
1996.
All of the foregoing tests, investigations and studies to be conducted
under this Paragraph 7.1 by Purchaser shall be subject to the following:
(i) Such tests, inspections and investigations shall take place
during normal business hours upon reasonable notice to Seller or its designated
agents;
(ii) Except as may be required by Purchaser to complete its due
diligence during the Inspection Period, to obtain financing in order to close
this transaction or to comply with any requirements of any governmental agency
having jurisdiction over Purchaser, Purchaser's members or Purchaser's lender,
all information set forth in the documents to be reviewed hereunder by
Purchaser, its employees and agents shall be held in strict confidence until
Closing and thereafter for a period of 24 months from the date this Agreement
is terminated in the event that the Closing does not occur;
(iii) In the event the Closing does not occur, Purchaser shall
promptly return to Seller or destroy any documents obtained from Seller or
Seller's agents;
(iv) Purchaser shall not suffer or permit any lien, claim or
charge of any kind whatsoever to attach to the Property or any part thereof;
and
(v) such tests, investigations and studies shall be at
Purchaser's sole cost and expense, and in the event of any damage to the
Property caused by Purchaser, its agents, engineers, employees, contractors or
surveyors (including, without limitation, pavement, landscaping and surface
damage), Purchaser shall pay the reasonable cost incurred by Seller to repair
said damage.
Purchaser shall defend, indemnify and hold Seller and any affiliate or parent
of Seller, and all shareholders, employees, officers, directors and partners of
Seller or Seller's affiliate or parent (hereinafter collectively referred to as
"Affiliates of Seller") harmless from any and all liability, cost and expense
(including without limitation, reasonable attorneys' fees, court costs and
costs of appeal) suffered or incurred by Seller or Affiliates of Seller for
injury to persons or property caused by Purchaser's investigations, tests,
studies and inspections of the Property. Purchaser shall undertake its
obligation to defend set forth in the preceding sentence using attorneys
selected by Purchaser and reasonably acceptable to Seller. Prior to commencing
any such tests, studies and investigations, Purchaser shall furnish to Seller a
certificate of insurance evidencing comprehensive general public liability
insurance insuring the person, firm or entity performing such tests, studies
and investigations and listing Seller and Purchaser as additional insureds
thereunder.
Purchaser, in its sole discretion, shall have the right to terminate this
Agreement by giving written notice of such termination to Seller at any time
prior to the expiration of the Inspection Period. If written notice is not
given by Purchaser pursuant to this Paragraph 7.1 prior to the expiration of
the Inspection Period, then the right of Purchaser to terminate this Agreement
pursuant to this Paragraph 7.1 shall be waived and Purchaser shall deposit the
Additional Xxxxxxx Money in accordance with the Escrow Agreement on or before
the expiration of the Inspection Period. If Purchaser terminates this
Agreement by written notice to Seller prior to the expiration of the Inspection
Period: (i) Purchaser shall promptly deliver to Seller copies of all studies,
reports and other investigations obtained by Purchaser from outside contractors
or consultants in connection with its due diligence during the Inspection
Period; and (ii) the Xxxxxxx Money deposited by Purchaser shall be immediately
paid to Purchaser, together with any interest earned thereon, less the sum of
One Hundred and No/100 Dollars ($100.00), which shall be paid to Seller in
consideration for such period of inspection, and neither Purchaser nor Seller
shall have any right, obligation or liability under this Agreement, except for
those covenants and obligations which expressly survive the termination of this
Agreement. Notwithstanding anything contained herein to the contrary,
Purchaser's obligation to indemnify Seller, as more fully set forth in this
Paragraph 7.1, shall survive Closing and recording of the Deed and the
termination of this Agreement, as applicable.
7.2 Except for the express representations and warranties of Seller set
forth herein, Purchaser acknowledges and agrees that it will be purchasing the
Property and the Personal Property based solely upon its inspections and
investigations of the Property and the Personal Property, and that Purchaser
will be purchasing the Property and the Personal Property "AS IS" and "WITH ALL
FAULTS", based upon the condition of the Property and the Personal Property as
of the date of this Agreement, ordinary wear and tear and loss by fire or other
casualty or condemnation excepted and that Seller makes no warranty or
representation, express or implied, or arising by operation of law, including,
but not limited to, any warranty of condition, habitability, merchantability or
fitness for a particular purpose, in respect of the Property. Without limiting
the foregoing, Purchaser acknowledges that, except as may otherwise be
specifically set forth elsewhere in this Agreement, neither Seller nor its
consultants, brokers or agents have made any representations or warranties of
any kind upon which Purchaser is relying as to any matters concerning the
Property or the Personal Property, including, but not limited to: (i) the
condition of the Land or any improvements comprising the Property; (ii) the
existence or non-existence of any pollutant, toxic waste and/or any hazardous
materials or substances; (iii) economic projections or market studies
concerning the Property, or the income to be derived from the Property;
(iv) any development rights, taxes, bonds, covenants, conditions and
restrictions affecting the Property; (v) the nature and extent of any right of
way, lease, lien, encumbrance, license, reservation or other title matter;
(vi) water or water rights, topography, geology, drainage, soil or subsoil of
the Property; (vii) the utilities serving the Property; (viii) the suitability
of the Property for any and all activities and uses which Purchaser may elect
to conduct thereon; or (ix) the compliance of the Property with any zoning,
environmental, building or other laws, rules or regulations affecting the
Property. Nothing herein is intended to waive any rights Purchaser may have
against the Title Insurer or the surveyor providing the Survey, or to imply
that Purchaser is not relying on the information provided by the Title Insurer
or such surveyor. Seller makes no representation or warranty that the Property
complies with the Americans with Disabilities Act or any fire code or building
code. With the exception of any breach by Seller of a specific representation
provided in this Agreement, Purchaser hereby releases Seller and the Affiliates
of Seller from any and all liability in connection with any claims which
Purchaser may have against Seller or the Affiliates of Seller, and Purchaser
hereby agrees not to assert any claims for contribution, cost recovery or
otherwise, against Seller or the Affiliates of Seller, relating directly or
indirectly to the existence of asbestos or hazardous materials or substances
on, or environmental conditions of, the Property, whether known or unknown. As
used herein, the term "hazardous materials or substances" means (i) hazardous
wastes, hazardous substances, hazardous constituents, toxic substances or
related materials, whether solids, liquids or gases, including but not limited
to substances defined as "hazardous wastes," "hazardous substances," "toxic
substances," "pollutants, "contaminants," "radioactive materials," or other
similar designations in, or otherwise subject to regulation under, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601 et seq.; the Toxic Substance Control Act, 15
U.S.C. Section 2601 et seq.; the Hazardous Materials Transportation Act, 49
U.S.C. Section 1802; the Resource Conservation and Recovery Act, 42 U.S.C.
Section 9601. et seq.; the Clean Water Act, 33 U.S.C. Section 1251; the Safe
Drinking Water Act, 42 U.S.C. Section 30Of et seq; the Clean Air Act, 42 U.S.C.
Section 7401 et seq.; and in any permits, licenses, approvals, plans, rules,
regulations or ordinances adopted, or other criteria and guidelines promulgated
pursuant to the preceding laws or other similar federal, state or local laws,
regulations, rules or ordinance now or hereafter in effect relating to
environmental matters (collectively, "Environmental Laws"); and (ii) any other
substances, constituents or wastes subject to any applicable federal, state or
local law, regulation or ordinance, including any Environmental Law, now or
hereafter in effect, including but not limited to (A) petroleum, (B) refined
petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel and
(E) asbestos. Purchaser acknowledges that having been given the opportunity to
inspect the Property, Purchaser is relying solely on its own investigation of
the Property and the information obtained in the Title Commitment and the
Survey and not on any information provided or to be provided by Seller.
Purchaser further acknowledges that the information provided and to be provided
with respect to the Property was obtained from a variety of sources, and that
Seller (x) has not made any independent investigation or verification of such
information and (y) makes no representations as to the accuracy or completeness
of such information, except as provided herein.
7.3 Seller has provided to Purchaser certain unaudited historical
financial information regarding the Property relating to certain periods of
time in which Seller owned the Property. Seller and Purchaser hereby
acknowledge that such information has been provided to Purchaser at Purchaser's
request solely as illustrative material. Except for the express representations
and warranties of Seller set forth herein, Seller makes no representation or
warranty that such material is complete or accurate or that Purchaser will
achieve similar financial or other results with respect to the operations of
the Property, it being acknowledged by Purchaser that Seller's operation of the
Property and allocations of revenues or expenses may be vastly different than
Purchaser may be able to attain. Purchaser acknowledges that it is a
sophisticated and experienced purchaser of real estate and further that
Purchaser has relied upon its own investigation and inquiry with respect to the
operation of the Property and releases Seller and the Affiliates of Seller from
any liability with respect to such historical information.
7.4 Seller has provided to Purchaser the ACM Survey dated September 1992
prepared by Law Engineering ("Existing Reports"). Seller makes no
representation or warranty concerning the accuracy or completeness of the
Existing Reports. Purchaser hereby releases Seller and the Affiliates of
Seller from any liability whatsoever with respect to the Existing Reports,
including, without limitation, the matters set forth in the Existing Reports,
and the accuracy and/or completeness of the Existing Reports. Furthermore,
Purchaser acknowledges that it will be purchasing the Property with all faults
disclosed in the Existing Reports.
7.5 Notwithstanding anything contained herein to the contrary, the
acknowledgements, agreements, waivers and releases of Purchaser set forth in
this Paragraph 7 shall survive Closing and recording of the Deed and the
termination of this Agreement as applicable.
8. CLOSING. The closing of this transaction ("Closing") shall take place on
the date which is forty-five (45) days after the end of the Inspection Period,
or such earlier date as may be agreed upon by Seller and Purchaser ("Closing
Date"), at the office of Seller's attorneys, Xxxxxxx & Xxxxxx, Three First
Xxxxxxxx Xxxxx, Xxxxx 0000, Xxxxxxx, Xxxxxxxx 00000, or at Seller's option, at
the office of the Title Insurer in Chicago, Illinois, at which xxxx Xxxxxx
shall deliver possession of the Property to Purchaser. This transaction shall
be closed in accordance with escrow instructions provided by the parties hereto
to the escrow closing agent for the Title Insurer. All deed and money escrow
fees shall be paid one-half by Seller and one-half by Purchaser. Seller shall
pay any gap endorsement charges and "New york style" closing fees.
9. CLOSING DOCUMENTS.
9.1 On the Closing Date, Seller and Purchaser shall execute and deliver
to one another a joint closing statement. In addition, Purchaser shall deliver
to Seller the balance of the Purchase Price, an assumption of the documents set
forth in Paragraph 9.2.3 and 9.2.4, counterparts of any transfer tax
declarations and such other documents as may be reasonably required by the
Title Insurer and not inconsistent with the terms of this Agreement in order to
consummate the transaction as set forth in this Agreement.
9.2 On the Closing Date, Seller shall deliver to Purchaser the following:
9.2.1 the Deed, subject to Permitted Exceptions and those Unpermitted
Exceptions waived by Purchaser in writing or not objected to by Purchaser in
accordance with Paragraph 5.1 hereof;
9.2.2 a special warranty xxxx of sale conveying the Personal Property
(in the form of Exhibit H attached hereto);
9.2.3 assignment and assumption (with respect to periods from and
after the Closing) of intangible property (in the form attached hereto as
Exhibit I);
9.2.4 an assignment and assumption (with respect to periods from and
after the Closing) of Leases and security deposits (in the form attached hereto
as Exhibit J);
9.2.5 non-foreign affidavit (in the form of Exhibit K attached
hereto);
9.2.6 originals, and/or copies of, the Leases in Seller's possession
(unless Seller elects to leave such documents in the on-site management
office);
9.2.7 all documents and instruments reasonably required by the Title
Insurer to issue the Title Policy;
9.2.8 possession of the Property to Purchaser, subject to the Leases
and the Permitted Exceptions;
9.2.9 evidence of the termination of the management agreement, along
with a lien waiver executed by the property manger, if applicable;
9.2.10 notice to the tenants of the Property of the transfer of title
and assumption by Purchaser of the landlord's obligation under the Leases and
the obligation to refund the refundable security deposits (in the form of
Exhibit L);
9.2.11 an updated rent roll certified by Seller to be true and
correct, subject to the provisions of Paragraph 17.1 and Paragraph 19 hereof;
9.2.12 a Broker's Lien Waiver signed by Insignia Mortgage and
Investment Company ("Insignia");
9.2.13 an Owner's Title Affidavit or ALTA extended coverage statement
in form reasonably acceptable to Seller and Title Insurer;
9.2.14 such formative and authorization documents of Seller as may be
reasonably required by Title Insurer;
9.2.15 copies of all books and records as may be necessary to
calculate tenant escalations and reconciliations (unless Seller elects to leave
such documents in the on-site management office);
9.2.16 certification from Seller that the representations made in
Section 17.2 of this Agreement is true and correct as of the Closing Date; and
9.2.17 certificates of insurance from Seller's insurance carrier
indicating the Purchaser has been named as an additional insured on Seller's
comprehensive general liability policy with respect to occurrences on or prior
to the Closing Date.
10. ESTOPPEL CERTIFICATES.
10.1 Seller agrees to use reasonable efforts to obtain tenant estoppel
certificates in the form of Exhibit M ("Tenant Certificates") for tenants
listed on the rent roll attached hereto as Exhibit N. Seller shall attempt to
deliver to Purchaser prior to Closing, Tenant Certificates for tenants at the
Property (and Purchaser hereby acknowledges that a Tenant may respond on the
form of certificate, if any, required under its Lease) which equal 75% of all
leased office space at the Property ("Required Amount"). If Seller is unable
to obtain the Required Amount of Tenant Certificates, Seller shall be obligated
to deliver to Purchaser a Seller Tenant Certificate for those tenants who fail
to execute and return a Tenant Certificate, to the extent necessary to achieve
the Required Amount. As used herein, "Seller Tenant Certificate" shall mean a
Tenant Certificate signed by Seller with respect to a particular tenant which
failed to execute and deliver a Tenant Certificate.
10.2 Notwithstanding anything contained herein to the contrary, the
representations and warranties contained in any Seller Tenant Certificate
executed by Seller (i) shall be made only to the knowledge of Seller as set
forth in Paragraph 17 hereof, and (ii) shall be subject to the provisions of
Paragraph 18 hereof.
10.3 Upon receipt after Closing by Purchaser of a Tenant Certificate
containing the information herein required from a tenant under a Lease for whom
Seller has executed and delivered a Seller Tenant Certificate at Closing, or
from any other tenant or tenants which would, in computing the Required Amount,
negate the need for any or all of the Seller Tenant Certificates, any Seller
Tenant Certificate executed and delivered by Seller at Closing which is no
longer needed in achieving the Required Amount shall become null and void, and
the Tenant Certificates received from the tenant or tenants shall be
substituted therefor.
11. SERVICE CONTRACTS. On the Closing Date, Seller shall assign the Service
Contracts to Purchaser, and Purchaser shall assume in writing responsibility of
the obligations arising from and after the Closing Date under the Service
Contracts. Seller shall use reasonable efforts to obtain any required consent
with respect to the assignment of the Service Contracts; provided, however,
that Seller's inability to obtain such approval shall not be a default
hereunder or a condition precedent to Purchaser's obligations to close
hereunder. Purchaser may, however, decline to accept an assignment of any
Service Contract for which Seller fails to obtain any such required consent.
12. LEASING OF PROPERTY. Prior to the expiration of the Inspection Period,
Seller shall deliver to Purchaser a copy of any new leases or modifications or
extensions executed by Seller from and including the date hereof through the
end of the Inspection Period, together with information as to any tenant
improvement obligations and leasing commissions, and such other information as
Purchaser may reasonably require. Such new leases or lease modifications and
extensions shall be included in the definition of Leases and Purchaser shall be
responsible to pay for all leasing commissions, tenant improvement costs or
other costs and expenses (including reasonable attorneys' fees) incurred by
Seller with respect to such leases except that Seller shall pay a portion of
such costs equal to the amount obtained by multiplying such costs by a
fraction, the numerator of which is the number of days from the date the tenant
under any such lease is obligated to commence rent payments through the Closing
Date, and the denominator of which is the number of days in the term of such
lease. After the expiration of the Inspection Period, Seller shall not enter
into any lease for any portion of the Property or any cancellation,
modification, extension or amendment to any Lease without first obtaining the
prior consent of Purchaser, which consent shall not be unreasonably withheld.
If Purchaser has not responded within five (5) business days of receipt of a
written request by Seller, Purchaser's consent shall be deemed given. If
Purchaser closes the transaction contemplated by this Agreement, Purchaser
shall be responsible to pay for all leasing commission, tenant improvement
costs or other costs and expenses (including reasonable attorneys' fees)
incurred by Seller with respect to any such lease approved by Purchaser.
Seller agrees to pay any outstanding brokerage commissions now or hereafter due
or payable with respect to the existing term of any Lease. Seller does not
represent or warrant that any particular Lease will be in effect at Closing or
that the tenant will have performed the tenant's obligations thereunder. The
termination of any Lease prior to Closing by reason of a tenant's default will
not affect the obligations of Purchaser under this Agreement in any manner, or
entitle Purchaser to an abatement of or credit against the Purchase Price, or
give rise to any other claim by Purchaser, and if any space in the Improvements
is vacant on the Closing Date, Purchaser will accept the Premises subject to
the vacancy.
13. DEFAULT BY PURCHASER. ALL XXXXXXX MONEY DEPOSITED INTO THE ESCROW IS TO
SECURE THE TIMELY PERFORMANCE BY PURCHASER OF ITS OBLIGATIONS AND UNDERTAKINGS
UNDER THIS AGREEMENT. IN THE EVENT OF A DEFAULT OF THE PURCHASER UNDER THE
PROVISIONS OF THIS AGREEMENT, SELLER SHALL RETAIN ALL OF THE XXXXXXX MONEY AND
THE INTEREST THEREON AS SELLER'S SOLE RIGHT WITH RESPECT TO DAMAGES OR ANY
OTHER REMEDY, EXCEPT FOR THOSE COVENANTS AND OBLIGATIONS OF PURCHASER WHICH
EXPRESSLY SURVIVE TERMINATION OF THIS AGREEMENT. THE PARTIES HAVE AGREED THAT
SELLER'S ACTUAL DAMAGES, IN THE EVENT OF A DEFAULT BY PURCHASER, WOULD BE
EXTREMELY DIFFICULT OR IMPRACTICAL TO DETERMINE. THEREFORE, BY PLACING THEIR
INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE XXXXXXX MONEY HAS BEEN AGREED
UPON, AFTER NEGOTIATION, AS THE PARTIES' REASONABLE ESTIMATE OF SELLER'S
DAMAGES.
14. SELLER'S DEFAULT. IF THIS SALE IS NOT COMPLETED BECAUSE OF SELLER'S
DEFAULT, PURCHASER'S SOLE REMEDY SHALL BE THE RETURN OF ALL XXXXXXX MONEY
TOGETHER WITH ANY INTEREST ACCRUED THEREON, EXCEPT THAT PURCHASER SHALL ALSO
HAVE THE RIGHT TO RECEIVE FROM SELLER ITS ACTUAL, DOCUMENTED THIRD PARTY
EXPENSES INCURRED IN THE PERFORMANCE OF ITS DUE DILIGENCE HEREUNDER (NOT TO
EXCEED $50,000 IN ANY EVENT) AND UPON THE RETURN OF THE XXXXXXX MONEY AND THE
REIMBURSEMENT BY SELLER OF PURCHASER'S DUE DILIGENCE COSTS AS PROVIDED ABOVE,
THIS AGREEMENT SHALL TERMINATE WITHOUT FURTHER ACTION OF THE PARTIES AND THE
PARTIES SHALL HAVE NO FURTHER LIABILITY TO EACH OTHER AT LAW OR IN EQUITY,
EXCEPT FOR THOSE COVENANTS AND OBLIGATIONS WHICH EXPRESSLY SURVIVE TERMINATION
OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY,
IF SELLER'S DEFAULT RESULTS FROM (i) ITS (AND NOT AN UNRELATED THIRD PARTY'S)
AFFIRMATIVE ACTION (OR SELLER'S FAILURE TO ACT WHERE IT HAS AN OBLIGATION TO
ACT) WHICH RESULTS IN THE RECORDING OF AN ENCUMBRANCE AGAINST THE PROPERTY AND
WHICH GIVES RISE TO PURCHASER'S RIGHT TO TERMINATE THIS AGREEMENT PURSUANT TO
PARAGRAPH 5 HEREOF; (ii) ITS FAILURE TO EXPEND UP TO $25,000 IF (a) SELLER IS
ABLE TO BOND OVER, CURE OR REMOVE A MINOR UNPERMITTED EXCEPTION FOR A COST NOT
TO EXCEED $25,000 OR (b) THE TITLE INSURER IS WILLING TO INSURE OVER A MINOR
UNPERMITTED EXCEPTION FOR A COST NOT TO EXCEED $25,000 IN ACCORDANCE WITH THE
TERMS HEREOF OR (iii) ITS REFUSAL TO DELIVER THE DEED, THEN PURCHASER WILL BE
ENTITLED TO XXX FOR SPECIFIC PERFORMANCE. IN NO EVENT SHALL SELLER BE LIABLE
FOR ANY ACTUAL, PUNITIVE, SPECULATIVE OR CONSEQUENTIAL DAMAGES RESULTING FROM
ANY DEFAULT BY SELLER.
15. PRORATIONS.
15.1 Water and other utility charges; fuels; prepaid operating expenses;
real and personal property taxes prorated on a "net" basis (i.e. adjusted for
all tenants' liabilities, if any, for such items); operating expenses paid by
Seller which are reimbursable by the tenants for the period prior to the
Closing Date, less any amount previously paid by the tenants; unpaid operating
expenses for the period prior to the Closing Date prorated on a "net" basis, as
set forth above; and all other items of expense and income shall be adjusted
ratably as of 12:01 a.m. on the Closing Date ("Proration Date"). Seller shall
be entitled to a credit for all transferable utility deposits transferred
hereunder, if any, and all other utility deposits, if any, may be withdrawn by
and refunded to Seller and Purchaser shall make its own replacement deposits
for utilities as may be required by the respective utilities involved.
Assessments, excluding regular ad valorem real estate taxes, payable in
installments which are due prior to the Closing Date shall be paid by Seller.
Assessments, excluding regular ad valorem real estate taxes, payable in
installments which are due subsequent to the Closing Date shall be paid by
Purchaser. If the amount of any of the items to be prorated is not then
ascertainable, the adjustments thereof shall be on the basis of the most recent
ascertainable data, except that if the amount of any real estate taxes to be
prorated is not then ascertainable, the adjustment shall be on the basis of
105% of the most recent ascertainable data and shall take into account any
assessment reductions obtained by Seller for the Property. All prorations will
be final except as to delinquent rent referred to in Paragraph 15.2 below and
as provided in Paragraphs 15.2 and 15.3.
15.2 All basic rent paid following the Closing Date by any tenant of the
Property who is indebted under a Lease for basic rent for any period prior to
the Proration Date in an amount greater than the amount of all current basic
rent owed by said tenant to Purchaser shall be deemed a "Post-Closing Receipt"
until the earlier to occur of (i) one year after the Closing Date, or (ii) such
time as all such indebtedness is paid in full. Within ten (10) days following
the end of each calendar month, Purchaser shall pay to Seller Post-Closing
Receipts collected in the previous month. Purchaser shall use its reasonable,
good faith efforts, at no additional cost or expense to Purchaser, to collect
all amounts which, upon collection, would constitute Post-Closing Receipts
hereunder. Within 30 days after the one-year anniversary of the Closing Date,
upon the written request of Seller, Purchaser shall deliver to Seller a
reconciliation statement of Post-Closing Receipts through the first year after
the Closing Date. Upon the delivery of the Post-Closing Receipts
reconciliation, Purchaser shall deliver to Seller any Post-Closing Receipts
owing to Seller and not previously delivered to Seller in accordance with the
terms hereof. Purchaser shall provide Seller with any information reasonably
necessary to verify the accuracy of the Post-Closing Receipts reconciliation
statement and upon the verification of additional funds owing to Seller,
Purchaser shall pay to Seller said additional Post-Closing Receipts.
Purchaser's obligations to attempt to collect Post- Closing Receipts shall
expire one year from the Closing Date. Seller shall retain the right to xxx
any tenant for rent owed to Seller for any period prior to the Proration Date.
This Paragraph 15.2 of this Agreement shall survive the Closing and the
delivery and recording of the Deed.
15.3 Seller covenants to operate, maintain and manage the Property in the
same manner that it has managed, maintained and operated the Property during
the period of Seller's ownership, subject to reasonable wear and tear and
casualty.
16. BROKER. The parties hereto represent and warrant that no broker commission
or finder fee is due and payable in connection with this transaction, by reason
of their respective actions, other than to Insignia (to be paid by Seller).
Seller's commission to Insignia shall only be payable out of the proceeds of
the sale of the Property in the event the transaction set forth herein closes.
Purchaser and Seller shall indemnify, defend and hold the other party hereto
harmless from any claim whatsoever (including without limitation, reasonable
attorneys' fees, court costs and costs of appeal) from anyone claiming by or
through the indemnifying party any fee, commission or compensation on account
of this Agreement, its negotiation or the sale hereby contemplated other than
to Insignia. Seller shall indemnify, defend and hold Purchaser harmless from
any claim (including, without limitation, reasonable attorneys' fees, court
costs and costs of appeal) for any claim by Insignia for any fee, commission or
compensation on account of this Agreement, its negotiation or the sale hereby
contemplated, other than any claim by Insignia on account of any agreement or
negotiations between Insignia and Purchaser. The indemnifying party shall
undertake its obligations set forth in this Paragraph 16 using attorneys
selected by the indemnifying party and reasonably acceptable to the indemnified
party. The provisions of this Paragraph 16 will survive the Closing and
delivery of the Deed.
17. REPRESENTATIONS AND WARRANTIES.
17.1 Any reference herein to Seller's knowledge or notice of any matter or
thing shall only mean such knowledge or notice that has actually been received
by Xxxxx Xxxxxxxxx or Xxxxxx Xxxxxx ("Seller's Representatives"), and any
representation or warranty of the Seller is based upon those matters of which
the Seller's Representatives have actual knowledge. Any knowledge or notice
given, had or received by any of Seller's agents, servants or employees (other
than Seller's Representatives) shall not be imputed to Seller, the general
partner or limited partners of Seller, the subpartners of the general partner
or limited partners of Seller or Seller's Representatives.
17.2 Subject to the limitations set forth in Paragraph 17.1, Seller hereby
makes the following representations and warranties, which representations and
warranties are made to Seller's knowledge and which shall not survive Closing:
(i) Seller has no knowledge of any pending or threatened litigation, claim,
cause of action or administrative proceeding concerning the Property; (ii)
Seller has the power to execute this Agreement and consummate the transactions
contemplated herein; (iii) the rent rolls attached hereto as Exhibit N and
updated as of the Closing Date are accurate in all material respects as of the
date set forth therein; (iv) the Seller has not given or suffered any
assignment, pledge or encumbrance with respect to any of the Leases or its
interests thereunder; (v) the list of Service Contracts attached hereto as
Exhibit D is accurate as of the date hereof; (vi) Seller has received no
written notice or claim from any governmental authority having jurisdiction
over the Property relating to an uncured breach or violation of the Americans
With Disabilities Act or any Environmental Laws or any other laws in connection
with the Property; (vii) Seller has no knowledge of any uncured landlord
default in connection with any Lease; (viii) to Seller's knowledge, the
materials delivered to Purchaser in accordance with Section 7 hereof are
correct and complete in all material respects; and (ix) to Seller's knowledge
there are no environmental reports in Seller's possession or control with
respect to the Property other than the Existing Reports provided to Purchaser.
17.3 Purchaser hereby represents and warrants to Seller that Purchaser has
the full right, power and authority to execute this Agreement and consummate
the transactions contemplated herein.
18. LIMITATION OF LIABILITY. None of Seller's beneficiaries, shareholders,
partners, officers, agents, employees, heirs, successors or assigns shall have
any personal liability of any kind or nature for or by reason of any matter or
thing whatsoever under, in connection with, arising out of or in any way
related to this Agreement and the transactions contemplated herein, and
Purchaser hereby waives for itself and anyone who may claim by, through or
under Purchaser any and all rights to xxx or recover on account of any such
alleged personal liability.
19. NOTICES. Any notice or demand which either party hereto is required or
may desire to give or deliver to or make upon the other party shall be in
writing and may be personally delivered or given or made by overnight courier
such as Federal Express or made by United States registered or certified mail
addressed as follows:
TO SELLER: x/x Xxx Xxxxxx Xxxxxxx
Xxxxxxxxxxx Xxxx Xxxxxx Xxxxx
0000 Xxxxxxxx Xxxx
Xxxxx X000
Xxxxxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxx
with copies to: The Balcor Company
Bannockburn Lake Office Plaza
0000 Xxxxxxxx Xxxx
Xxxxx X000
Xxxxxxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxxxxx
TO PURCHASER: Transwestern Investment Company, L.L.C.
Three First Xxxxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxxx
with copies to: Xxxxxxxxx Xxxxx
Assistant General Counsel
The Northwestern Mutual Life Insurance Company
000 X. Xxxxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxxx 00000
subject to the right of either party to designate a different address for
itself by notice similarly given. Any notice or demand so given shall be deemed
to be delivered or made on the next business day if sent by overnight courier,
or on the fourth (4th) business day after the same is deposited in the United
States Mail as registered or certified mail, addressed as above provided, with
postage thereon fully prepaid. Any such notice, demand or document not given,
delivered or made by registered or certified mail or by overnight courier as
aforesaid shall be deemed to be given, delivered or made upon receipt of the
same by the party to whom the same is to be given, delivered or made. All time
periods for responses by either party set forth in this Agreement shall
commence upon the receipt of notice as set forth hereinabove.
20. EXECUTION OF AGREEMENT AND ESCROW AGREEMENT. Purchaser will execute two
(2) copies of this Agreement and three (3) copies of the Escrow Agreement and
forward them to Seller for execution. Seller will forward one (1) copy of the
executed Agreement to Purchaser and will forward to the Escrow Agent the three
(3) copies of the Escrow Agreement signed by the parties with a direction to
execute two (2) copies of the Escrow Agreement and deliver a fully executed
copy to each of the Purchaser and the Seller.
21. JURISDICTION AND VENUE
Seller and Purchaser each hereby irrevocably submits to the jurisdiction
of any State or Federal court sitting in the County of Xxxx and State of
Illinois over any action or proceeding arising out of or relating to this
Agreement, and Seller and Purchaser each hereby irrevocably agrees that all
claims in respect of such action or proceeding may be heard or determined in
any such State or Federal court except that Purchaser reserves the right to
seek to remove any such action brought in such State court to such Federal
court. Seller and Purchaser each hereby irrevocably waives, to the fullest
extent it may effectively do so, the defense of an inconvenient forum to the
maintenance of such action or proceeding. Seller and Purchaser each
irrevocably consents to the service of any and all process in any such action
or proceeding by the mailing of copies of such process to Seller or Purchaser,
as the case may be, at its respective address specified in Paragraph 19 hereof.
Seller and Purchaser each hereby agrees that the final judgment in any such
action or proceeding shall be conclusive and may be enforced in any other
jurisdiction by suit on the judgment or in any other matter provided by law.
Nothing in this paragraph shall affect the right of Seller or Purchaser, as the
case may be, to serve legal process in any other manner permitted by law or
affect the right of Seller or Purchaser, the case may be, to bring any action
or proceeding against the other in the courts of any other jurisdiction.
22. MISCELLANEOUS
(a) Time is of the essence of each provision of this Agreement.
(b) This Agreement and all provisions hereof shall extend to and be
obligatory upon and inure to the benefit of the respective heirs, legatees,
legal representatives, successors and assigns of the parties hereto. Purchaser
may assign its rights under this Agreement to an affiliate, provided that
Purchaser shall not be released from any liability incurred hereunder prior to
the date of such assignment.
(c) The section and paragraph headings of this Agreement are for
convenience only and in no way define, limit or enlarge the scope or meaning of
the language hereof. The terms "hereby," "herein," "hereof," "hereto,"
"hereunder" and any similar terms used in this Agreement refer to this
Agreement. The term "including" shall not be construed in a limiting nature,
but shall be construed to mean "including, without limitation." Words
importing persons shall include firms, associations, partnerships, trusts,
corporations and other legal entities, including public bodies, as well as
natural persons. Words importing the singular shall include the plural and
vice versa. Words of the masculine gender shall be deemed to include
correlative words of the feminine and neuter genders.
(d) This Agreement contains the entire agreement between the parties
relating to the transactions contemplated hereby, and all prior or
contemporaneous agreements, understandings, representations and statements,
oral or written, are merged herein. No representations, warranties,
undertakings or promises (whether oral or written, express or implied), can be
made or have been made by Seller or its agents, representatives or brokers to
Purchaser or any other person unless expressly stated herein. No modification
or amendment of this Agreement or any waiver of any provision hereof shall be
effective unless the same is in writing signed by the party against whom
enforcement of such modification, amendment or waiver is sought.
(e) This Agreement shall be governed by and construed in accordance
with the laws of the State of Texas. If any of the provisions of this
Agreement or the application thereof to any persons or circumstances shall, to
any extent, be deemed invalid or unenforceable, the remainder of this Agreement
and the application of such provisions to persons or circumstances other than
those as to whom or which it is held invalid or unenforceable shall not be
affected thereby, and every provision of this Agreement shall be valid and
enforceable to the fullest extent permitted by law.
(f) This Agreement and any document or instrument executed pursuant
hereto may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
(g) The submission by Seller of this Agreement to Purchaser for
examination does not constitute an offer by Seller to sell, or a reservation of
or option to purchase the Property. This Agreement shall not become a contract
until executed and delivered by Purchaser and Seller in the manner set forth
herein.
(h) If Purchaser consists of more than one person or entity, then
each such person or entity executing this Agreement as Purchaser shall be
jointly and severally liable for the obligations of Purchaser hereunder.
(i) Purchaser shall not record this Agreement or any memorandum
hereof, and any such recording shall be a default hereunder.
(j) Prior to the Closing Date, Purchaser and Seller shall jointly
prepare and issue all releases of information relating to the sale of the
Property, and any inquiries regarding the transaction contemplated hereby shall
be responded to only after consultation with the other party hereto.
(k) If either party institutes a legal action against the other
relating to this Agreement or any default hereunder, the unsuccessful party to
such action will reimburse the successful party for the reasonable expenses of
prosecuting or defending such action, including without limitation, the costs
of prosecuting or defending all appeals thereof, and attorneys fees and
disbursements and court costs.
(l) This Agreement shall not be construed more strictly against one
party than against the other merely by virtue of the fact that the Agreement
may have been prepared primarily by counsel for one of the parties, it being
recognized that both Purchaser and Seller have contributed substantially and
materially to the preparation of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first set forth above.
PURCHASER:
TRANSWESTERN INVESTMENT COMPANY, L.L.C.
By: /s/ Xxxxxx Xxxxxxx
---------------------------------
Name: Xxxxxx Xxxxxxx
---------------------------------
Its: Managing Director
---------------------------------
SELLER:
PACIFIC CENTER INVESTORS, a joint venture
By: Labroc I Limited Partnership, an Illinois
limited partnership
By: Balcor Equity Partners-I, an Illinois
general partnership, its general
partner
By: The Balcor Company, a Delaware
corporation, a partner
By: /s/ Xxxxx X. Xxxxxxxxx
-------------------------------
Name: Xxxxx X. Xxxxxxxxx
-------------------------------
Its: Authorized Representative
-------------------------------
By: Labroc II Limited Partnership, an Illinois
limited partnership
By: Balcor Equity Partners-II,
an Illinois general partnership,
its general partner
By: The Balcor Company, a Delaware
corporation, a partner
By: /s/ Xxxxx X. Xxxxxxxxx
-------------------------------
Name: Xxxxx X. Xxxxxxxxx
-------------------------------
Its: Authorized Representative
-------------------------------
LIST OF EXHIBITS
A. Legal Description
B. Personal Property
C. Leases
D. Service and Maintenance Contracts
E. Escrow Agreement
F. Copy of Title Commitment
G. Limited Warranty Deed
H. Special Warranty Xxxx of Sale
I. Assignment and Assumption of Intangible Property
J. Assignment and Assumption of Leases and Security Deposits
K. FIRPTA
L. Tenant Notice Letter
M. Tenant Estoppel Certificate
N. Rent Roll
