Exhibit 00.000
XXXXXXXXX XX XXX XXXXXXX XXXXXX
CONTRIBUTION AGREEMENT
THIS CONTRIBUTION AGREEMENT (this "AGREEMENT"), dated as of July 21, 2004,
is made by and between THE CAPITAL CENTRE INVESTORS, LLC, a Maryland limited
liability company ("HOLDING COMPANY") and THE INLAND COMPANY LLC, a Delaware
limited liability company ("INLAND AFFILIATE").
RECITALS
A Holding Company owns a forty percent (40%) equity interest in Capital
Centre LLC, a Maryland limited liability company ("SUBSIDIARY"). Subsidiary is
the owner of the following (collectively, the "PROPERTY"): (a) a ground lessee's
interest created by the COUNTY GROUND LEASE (as that term is defined in Section
4.9.4 hereof) in Boulevard at the Capital Centre, a retail shopping center
containing approximately 505,000 square feet of gross leasable area on
approximately 69.3354 acres of land located near the intersection of Arena
Drive and 1-95/495, in Landover, Prince George's County, State of Maryland, (b)
all of the right, title and interest in and to the "landlord's interest" in and
to all Leases (as defined in Section 4.9.2 below); (c) a ground lessee's
interest created by the County Ground Lease in all improvements located upon the
Property (excluding improvements owned by tenants or providers of utilities);
(d) all personal property, if any, used in connection with the operation of the
Property (excluding personal property owned by tenants or providers of
utilities); (e) a ground lessee's interest created by the County Ground Lease in
all shrubs, trees, plants and other landscaping located upon the Property; (f) a
ground lessee' interest created by the County Ground Lease in all easements,
rights of way, and other rights appurtenant to the Property; and (g) all of the
right, title and interest, if any, in and to the name "Boulevard at the Capital
Centre," A legal description of the parcel of land that is included in the
Property (the "LAND") is set forth on EXHIBIT "A" hereto. The Property serves as
collateral for the loan described on EXHIBIT "B" (the "EXISTING LOAN"). The
balance of the equity interest in Subsidiary is owned by Centre Group Limited
Partnership, a Maryland limited partnership ("WITHDRAWING MEMBER").
B. Prior to or simultaneously with or to the execution of this Agreement,
Holding Company and Withdrawing Member have executed and delivered to each other
an Agreement to Reorganize and Retire (the "WITHDRAWING MEMBER AGREEMENT") that
is substantially in the form attached hereto as EXHIBIT "6.1.5".
C. Inland Affiliate is wholly owned by Inland Western Retail Real Estate
Trust, Inc., a Maryland corporation ("INLAND"). On the CLOSING DATE (as that
term is defined in Section 1.7), simultaneously with the Closing, Inland
Affiliate and a Maryland limited liability company to be formed on the Closing
Date by the existing members of Holding Company and to be named CC Investors LLC
("CORDISH AFFILIATE") shall enter into a certain Amended and Restated Limited
Liability Company Agreement attached hereto as EXHIBIT "C" (the "OPERATING
AGREEMENT") concerning Holding Company. Pursuant to and subject to the terms and
conditions of this
Agreement, Inland Affiliate will pay and make the CAPITAL CONTRIBUTION (as that
term is defined in Section 1.1 hereof) and pay the AGGREGATE EARNOUT AMOUNT (as
that term is defined in Section 1.4 hereof) in exchange for which Inland
Affiliate will become a MEMBER (as defined in the Operating Agreement) in
Holding Company and will receive the Percentage Interest in Holding Company
specified in SCHEDULE A of the Operating Agreement
NOW THEREFORE, in consideration of the foregoing and the mutual
representations, warranties, covenants, and agreements herein contained, and for
Ten and 00/100 Dollars ($10.00) and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, Holding Company and
Inland Affiliate agree as follows:
ARTICLE I
CAPITAL CONTRIBUTION AND EARNOUT
1.1. CAPITAL CONTRIBUTION. In consideration for its admission to
Holding Company, Inland Affiliate: (a) shall pay the sum of ONE HUNDRED
TWENTY-THREE MILLION ONE HUNDRED TWO THOUSAND TWO HUNDRED THIRTY-SIX AND 00/100
DOLLARS ($123,102,236.00), as increased or decreased by the adjustments provided
for in Section 1.2 hereof (the "CAPITAL CONTRIBUTION") in accordance with the
provisions of this Section 1.1 and Section 1.5 hereof; and (b) shall deposit and
pay the AGGREGATE EARNOUT AMOUNT (as that term is defined in Section 1.4 hereof)
in accordance with the provisions of Section 1.4 hereof. The Capital
Contribution shall be paid as follows:
1.1.1. XXXXXXX MONEY DEPOSIT; PAYMENT AT CLOSING. Upon
execution of this Agreement, Inland Affiliate shall: (a) by wire transfer of
immediately available funds, deposit with Chicago Title Insurance Company, a New
York corporation ("Escrowee"), attention Xxxxx Xxxxxx, the sum of ONE MILLION
AND 00/100 DOLLARS ($1,000,000.00) (the "XXXXXXX MONEY"); and (b) deliver a
promissory note (the "XXXXXXX MONEY NOTE") to Escrowee, made by Inland to the
order of Capital Centre LLC in the amount of TWENTY-FOUR MILLION AND 00/100
DOLLARS ($24,000,000.00). The Xxxxxxx Money Note shall be in the form attached
hereto as EXHIBIT "1.1.1." The Xxxxxxx Money and the Xxxxxxx Money Note shall be
held in escrow by Escrowee for the mutual benefit of the parties hereto. The
disposition of the Xxxxxxx Money and the Xxxxxxx Money Note shall be governed by
the terms of this Section 1.1.1 from and after the date hereof. The Xxxxxxx
Money shall be held by Escrowee in an interest bearing account (any interest
earned thereon shall be paid to Inland Affiliate), At CLOSING (as that term is
defined in Section 1.7): (i) the Xxxxxxx Money and the Xxxxxxx Money Note, shall
be disbursed by Escrowee in accordance with Section 1.5 hereof; and (ii) any
interest earned on the Xxxxxxx Money shall be paid by Escrowee to Inland
Affiliate. Escrowee shall be reimbursed equally by the parties hereto for all of
its out-of-pocket expenses. If Closing does not occur, the Xxxxxxx Money Deposit
shall be paid over in accordance with the balance of this Section 1.1.1., all
interest thereon shall be paid to Inland Affiliate and the Xxxxxxx Money Note
shall be delivered in accordance with the balance of this Section 1.1.1. At
Closing, immediately after the closing of all of the transactions contemplated
by this Agreement, Escrowee shall deliver the Xxxxxxx
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Money Note to Inland Affiliate, which will have the right to cancel same. The
terms of the Xxxxxxx Money Note shall govern the Xxxxxxx Money Note.
1.1.1.1. INLAND AFFILIATE'S DEFAULT; LIQUIDATED
DAMAGES. Holding Company and Inland Affiliate each acknowledge that it would be
difficult to ascertain the actual damages which would be suffered by Holding
Company if Inland Affiliate defaults in consummating the transactions
contemplated by this Agreement. Accordingly, if all conditions to Inland
Affiliate's obligation to consummate the transactions contemplated by this
Agreement as set forth in Section 6.2 of this Agreement have been satisfied or
waived, but Inland Affiliate fails, refuses or is unable to consummate the
transactions contemplated by this Agreement, then Holding Company's exclusive
remedy shall be to give Escrowee and Inland Affiliate written notice of Inland
Affiliate's default, receive and retain the release of the Escrow Money and the
Escrow Money Note and collect and retain all amounts due under the Xxxxxxx Money
Note (in each case subject to Withdrawing Member's right to receive, after
payment of the actual cost of enforcement and collection, sixty percent (60%) of
the Xxxxxxx Money and sixty percent (60%) of all amounts due under the Xxxxxxx
Money Note pursuant to and in accordance with the Withdrawing Member Agreement)
Unless Inland Affiliate gives notice to Holding Company and Escrowee disputing
such request for payment and disbursement, which notice is received by Escrowee
within ten (10) BUSINESS DAYS (as that term is defined in Section 8.21 hereof)
following receipt by Escrowee of Holding Company's request for such payment and
distribution, such payment and distribution shall be made on the fifteenth
(15th) Business Day following the date that Escrowee received such request. Upon
payment of the Xxxxxxx Money to Holding Company, the distribution of the Xxxxxxx
Money Note to Holding Company and the full payment by Inland to Holding Company
of the full amount of the Xxxxxxx Money Note (in each case subject to
Withdrawing Member's rights described above), no party to this Agreement shall
have any further liability to any other party, and this Agreement shall be and
become null and void and of no further force and effect, either at law or in
equity.
1.1.1.2. HOLDING COMPANY'S DEFAULT. If all conditions
to Holding Company's obligations to consummate the transactions contemplated by
this Agreement as set forth in Section 6.1 have been satisfied or waived, but
Holding Company fails, refuses or is unable to consummate the transactions
contemplated by this Agreement, then Inland Affiliate shall have the right to
either: (i) give Escrowee and Holding Company written notice of Holding
Company's default, in which event fifteen (15) Business Days after Escrowee
receives such notice Escrowee shall pay the Xxxxxxx Money to Inland Affiliate
and deliver the Xxxxxxx Money Note to Inland Affiliate (unless Holding Company
gives notice to Inland Affiliate and Escrowee disputing such request for
payment, which notice is received by Escrowee within ten (10) Business Days
following receipt by Escrowee of Inland Affiliate's request for a distribution)
and no party to this Agreement shall have any further liability to any other
party and this Agreement shall be and become null and void and of no further
force and effect, either at law or in equity; or (ii) seek specific performance
of the obligations of Holding Company hereunder, together with an action for the
costs and expenses of such specific performance action, (including reasonable
attorney's fees).
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1.1.1.3. RIGHTS OF ESCROWEE. In the event of any
dispute as to who is entitled to receive the Xxxxxxx Money and the Xxxxxxx Money
Note, Escrowee shall have the right to retain the Xxxxxxx Money and the Xxxxxxx
Money Note and disburse them in accordance with the final order of a court of
competent jurisdiction, or to deposit the Xxxxxxx Money and the Xxxxxxx Money
Note with the Court, pending a final decision of the controversy. The
provisions of this Agreement concerning jury trial waiver, applicable law,
attorney fees and venue shall apply to such litigation. The parties hereto
further agree that the Escrowee shall not be liable for failure of the
depository. The provisions of Section 8.7 hereof shall not apply to a dispute as
to who is entitled to receive the Xxxxxxx Money and the Xxxxxxx Money Note.
1.1.1.4. Disputes concerning who is entitled to
receive the Xxxxxxx Money and the Xxxxxxx Money Note shall not be subject to
arbitration.
1.1.2. CAPITAL CONTRIBUTION AT CLOSING. On the CLOSING DATE
(as that term is defined in Section 1.7), Inland Affiliate shall deposit the
balance of the Capital Contribution (less the Xxxxxxx Money) with Escrowee
pursuant to Sections 1.3 and 1.5 hereof.
1.1.3 Notwithstanding any provision or inference herein to
the contrary, each party hereto hereby acknowledges and agrees that Inland
Affiliate intends to fund a portion of the Capital Contribution by causing the
Subsidiary, simultaneously with the CLOSING (as defined below), to borrow funds
from an unrelated third party lender. The proceeds of any such loan shall be
deemed to constitute a portion of the "CAPITAL CONTRIBUTION" for all purposes of
this Agreement and the proceeds of any such loan shall be aggregated with the
proceeds of the Capital Contribution directly paid by Inland Affiliate for all
purposes of this Agreement (including, but not limited to, the provisions of
Section 1.5 hereof and EXHIBIT "1.5" attached hereto). Such borrowing, however,
shall not be a condition to the Closing.
1.2. ADJUSTMENTS TO CAPITAL CONTRIBUTION. The following items shall be
prorated and adjusted between Holding Company and Inland Affiliate as of the
Closing Date and shall constitute either additions to or reductions of the
Capital Contribution:
1.2.1. RESERVED
1.2.2. REAL PROPERTY TAXES.
1.2.2.1. Real estate property taxes and assessments
due and payable prior to the Closing Date have been paid in full. As a result of
such payment, a portion of the real estate property taxes and assessments
accrued, assessed, and billed against the Property for the fiscal year July 1,
2004 through June 30, 2005 have been paid in advance by Subsidiary (the "TAXES
PAID IN ADVANCE"). At the Closing, the Capital Contribution shall be increased
by an amount calculated as follows: (i) divide the Taxes Paid in Advance by 365,
and (ii) multiply the quotient obtained thereby by the number of days from and
including the Closing Date through June 30, 2005 (the "POST CONTRIBUTION TAX
PERIOD"), and (iii) from the product obtained thereby, subtract all payments
made
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to Subsidiary by tenants under Leases (and any other party) attributable to the
Post Contribution Tax Period. After the Closing Date, if Subsidiary or Holding
Company receives payments from tenants under Leases (or any other party)
attributable to pre-Closing Date real estate tax contributions, such amounts
shall be remitted to Holding Company. Holding Company shall immediately deposit
forty percent (40%) of such amounts in the "OPERATIONS RESERVE" (as that term,
is defined in Section 6.4 of the Operating Agreement) and immediately pay the
remaining balance of such amount to Withdrawing Member pursuant to the wire
instructions for the Withdrawing Member contained in the ESCROW AGREEMENT (as
that term is defined in Section 1.3 hereof.)
1.2.2.2. If any general or special assessments (as
contrasted to ad valorem taxes) are payable in installments, Inland Affiliate
shall cause Subsidiary to continue to pay all such future installments and
Holding Company's only obligation shall be as to installments due prior to the
Closing Date with no obligation to prepay such gross amount and without any
reduction in the Capital Contribution.
1.2.3. RENT. Rent, percentage rent and reimbursements for
common area maintenance charges, insurance premiums and other lease charges
(other than real estate taxes and assessments, which shall be accounted for and
prorated as provided in Section 1.2.2)(collectively, "RENTS") shall be accounted
for and prorated as follows: except as otherwise provided in this Agreement,
Inland Affiliate shall be entitled to all Rents accruing from (including) and
after the Closing Date, regardless of when paid or collected, and all such
items, if any, accruing prior to the Closing Date, regardless of when paid or
collected, shall be deposited and paid as follows: forty percent (40%) of such
amount shall be deposited to the Operations Reserve and the balance shall be
paid to Withdrawing Member pursuant to the wire instructions for the Withdrawing
Member contained in the Escrow Agreement. Thus if the Closing Date is September
15, 2004, one-half of the minimum rent collected for the month of September,
2004 will be credited to Inland Affiliate and the balance shall be deposited
into the Operations Reserve and paid to the Withdrawing Member, as provided
above. The parties further agree that percentage rent for each tenant shall be
prorated post closing based upon the pre-and post Closing allocations described
above. There shall be no credit with respect to any unpaid accrued Rents owing
from tenants of the Property as of the Closing Date. Holding Company shall not
retain in the Operations Reserve any security deposits or prepaid rent to offset
any unpaid accrued rent or other unpaid amounts. With respect to any such unpaid
amounts (x) Subsidiary, acting exclusively by and through Cordish Affiliate
shall retain the right to xxx the applicable tenant for collection of any such
unpaid amounts (provided the costs of suit are funded exclusively from the
Operations Reserve) and, to the extent the applicable lease permits, collection
costs and interest (and, in such regard, Inland Affiliate agrees to cooperate
reasonably with any efforts to collect the aforesaid unpaid amounts; provided,
however, Cordish Affiliate shall not be entitled to xxx for possession or
terminate any Lease), and provided further that Inland Affiliate shall be
reimbursed for any reasonable cost or expense incurred by Inland Affiliate in
connection with such cooperation, and Subsidiary, acting exclusively by and
through Cordish Affiliate, shall have the right and power to prosecute and
settle such suits, and (y) if any such unpaid amounts are collected, forty
percent (40%) of such amounts shall be promptly deposited into the Operations
Reserve and the remaining balance of such amounts shall be promptly paid to
Withdrawing Member pursuant to
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the wiring instructions for Withdrawing Member contained in the Escrow Agreement
(and in such regard, if any amount is received from a tenant as to which such
tenant specifically informs its landlord in writing to which lease obligation
such payment is to be applied, such payment shall be so applied; if such tenant
does not so inform Subsidiary as to how a particular payment is to be applied,
such payment shall be applied first, on account of amounts owed subsequent to
the Closing Date; second, on account of past due amounts owed prior to the
Closing Date. Any balance remaining in any tenant's common area maintenance
escrow account shall be part of the reconciliation and adjustments between the
parties as of the Closing Date. Holding Company and Subsidiary shall promptly
deliver to Inland Affiliate all Rents received from tenants under Leases, which
are attributable to ownership periods beginning on (and including) and after the
Closing Date, except to the extent already included as a credit.
1.2.4. UTILITIES. Except insofar as the same constitute
expenses pro ratable elsewhere under this Section 1.2, utility charges and
deposits, fuels and all other items of expense customarily prorated on the
transfer of properties similar to the Property shall be prorated on an accrual
basis as of the Closing Date on the basis of the most recent ascertainable bills
or on other reliable information with respect to each item of expense.
1.2.5. OTHER. All other income and expenses of the Property.
1.2.6. CLOSING COSTS. Inland Affiliate shall pay for fifty
percent (50%) of the Title Company Closing Costs and one hundred percent (100%)
of the title insurance costs and charges associated with the closing of a loan
by Subsidiary secured by a lien on the Property and all other due diligence
costs and expenses of Inland Affiliate. The Capital Contribution shall be
reduced by and amount equal to fifty percent (50%) of the Title Company Closing
Costs. The term "TITLE INSURANCE CLOSING COSTS" means the cost of title search,
title insurance, and ancillary charges of Escrowee in connection with its
issuance to Subsidiary of an owner's title insurance policy for the Property at
the Closing and the cost of surveys of the Property prepared in connection with
the Closing.
1.2.7. For purposes of calculating pro rations and
adjustments, Inland Affiliate shall be deemed to be in title to the Property,
and therefore entitled to income therefrom and responsible for the expenses
thereof, for the entire day on which the Closing Date occurs. Except as
otherwise described, all pro rations and adjustments shall be final, except
that, in the event of any computational mistake or error is discovered on or
before the first anniversary of the Closing Date, the parties shall make an
appropriate adjustment(s) in cash between them to correct such mistake or error
promptly after the discovery thereof.
1.2.8. The obligations set forth in Subsection 1.2.3 shall
survive the Closing for three (3) years following the Closing Date and the
balance of the obligations set forth in this Section 1.2 shall survive the
closing hereunder for one (1) year following the Closing Date.
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1.3. ESCROW AMOUNT AND LIQUIDITY AMOUNT.
1.3.1. (a) On the Closing Date, Subsidiary (acting by and
through Holding Company), Cordish Affiliate and Escrowee shall each execute and
deliver to each other that certain Escrow Agreement (the "ESCROW AGREEMENT")
that is in the form attached hereto as EXHIBIT "1.3 (a)". At the Closing, the
Holding Company, subject to the approval of Inland Affiliate and Withdrawing
Member, which approval shall not be unreasonably withhold, shall complete the
blanks in the Escrow Agreement in accordance with the provisions of this Section
1.3. To the extent a space shown on EXHIBIT "1.3" is no longer a Project Vacant
Space on the Closing Date, it shall be deleted from Exhibit "1.3".
(b) On the Closing Date, Subsidiary (acting by and
through Holding Company), Cordish Affiliate and Escrowee shall each execute and
deliver to each other that certain Liquidity Amount Escrow Agreement (the
"LIQUIDITY AMOUNT ESCROW AGREEMENT") that is in the form attached hereto as
EXHIBIT "1.3 (b)". At the Closing, the Holding Company, subject to the approval
of Inland Affiliate and Withdrawing Member, which approval shall not be
unreasonably withhold, shall complete the blanks in the Liquidity Amount Escrow
Agreement in accordance with the provisions of this Section 1.3.
1.3.2. On the Closing Date Inland Affiliate shall, by wire
transfer of immediately available funds to the account designated by Escrowee,
deposit with Escrowee a portion of the Capital Contribution equal to the ESCROW
AMOUNT (as that term is defined in Section 1.3.3 (a) hereof) and a portion of
the Capital Contribution equal to the LIQUIDITY AMOUNT (as that term is defined
in Section 1.3.3 (b) hereof.) Escrowee shall invest, hold and disburse the
Escrow Amount in accordance with the terms of the Escrow Agreement and shall
invest, hold and disburse the Liquidity Amount in accordance with the terms of
the Liquidity Amount Escrow Agreement.
1.3.3 (a) The term "ESCROW AMOUNT" means an amount equal to
the sum of: (i) all unpaid tenant improvement allowances due under any Lease
signed as of the Closing Date (exclusive of any Lease for the Earnout Space)
which shall be described on EXHIBIT "A" of the Escrow Agreement; and (ii) all
unpaid broker commissions or consultant fees due by reason of any Lease signed
as of the Closing Date (exclusive of any Lease for the Earnout Space), which
shall be described on EXHIBIT "A" of the Escrow Agreement; and (iii) a sum equal
to six (6) months of rent and reimbursable expenses under any Lease signed as of
the Closing Date (exclusive of any Lease for the Earnout Space) for which the
TENANT CONDITIONS are not then fulfilled, which shall be described on EXHIBIT
"A" of the Escrow Agreement; and (iv) a sum equal to the amount of rent that
would have been payable by a tenant after the Closing Date under a Lease for
which the Tenant Conditions have been fulfilled had an applicable "free rent
period" contained therein not apply, which shall be listed on EXHIBIT "A" of the
Escrow Agreement; (v) for all tenant spaces vacant and not subject to a Lease as
of the Closing Date, an amount equal the sum of: (A) an amount equal to three
percent (3%) of PRO FORMA base rent for each Project Vacant Space as shown on
EXHIBIT "A" of the Escrow Agreement, based on leases with ten year terms (with
no commissions paid for renewals) for leasing
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commissions, which shall be described on EXHIBIT "A" of the Escrow Agreement;
(B) an amount equal to Five and 00/100 Dollars ($5.00) per square foot of
Project Vacant Space as and for tenant improvement allowances, which amount
shall be described on EXHIBIT "A" of the Escrow Agreement; (C) an amount equal
to the base rental rate provided on the Rent Roll for each tenant space that is
a part of Project Vacant Space as of the Closing Date for 24-months, which
amount shall be described on EXHIBIT "A" of the Escrow Agreement; and (D) an
amount equal to 24-months of reimbursable expenses, which shall be described on
EXHIBIT "A" of the Escrow Agreement. Attached hereto as EXHIBIT "1.3.3" is an
example of what EXHIBIT "A" of the Escrow Agreement would consist of and contain
in the event that the Closing Date was the date hereof; and (vi) the sum of
FIFTEEN MILLION TWO HUNDRED NINETY-SEVEN THOUSAND EIGHTY-SIX AND 00/100 DOLLARS
($15,297,086.00) (the "THEATER ESCROW AMOUNT"), which constitutes the full value
of that certain Lease, dated March 26, 2003, between Subsidiary and Farmers
Cinemas, Inc. (the "LOEWS LEASE") for a portion of the Property (the "THEATER
SPACE"), less the tenant allowance payable thereunder (which is included in
1.3.3 (a) (i) hereof).
(b) The term "LIQUIDITY AMOUNT" means an amount equal
to ten percent (10%) of the Capital Contribution made by Inland Affiliate on the
Closing Date.
1.3.4. The term "PROJECT VACANT SPACE" means any gross
leasable area of the Property (exclusive of the Earnout Space), that, as of the
Closing Date, has not satisfied the Tenant Conditions. The term "TENANT
CONDITIONS" shall have the meaning ascribed to it in the Escrow Agreement.
1.4. AGGREGATE EARNOUT AMOUNT.
1.4.1. Pursuant to the provisions of this Section 1.4, Inland
Affiliate may be obligated to make an additional Capital Contribution to Holding
Company, which shall then deposit such sum forty percent (40%) to the Operations
Reserve and pay the balance to Withdrawing Member, in the aggregate, up to SIX
MILLION NINE HUNDRED FORTY-SEVEN THOUSAND SEVEN HUNDRED SIXTY-FOUR AND 00/100
DOLLARS ($6,947,764.00) (the "AGGREGATE EARNOUT AMOUNT"). From time to time
during the twenty-four (24) month period (I.E., two full years) commencing on
the Closing Date, Inland Affiliate shall be obligated to deposit and pay each
Earnout Space Amount (I.E., the portion of the Aggregate Earnout Amount
allocable to an Earnout Space) to Holding Company at an "EARNOUT CLOSING" (on a
Earnout Tenant by Earnout Tenant basis); provided: (a) PROJECT COMPLETION OF THE
EARNOUT SPACE (as that term is defined in Section 1.4.6 hereof) shall have been
achieved for such Earnout Space; and (b) the Tenant Conditions shall have been
satisfied with regard to the Earnout Tenant for such Earnout Space
(collectively, the "EARNOUT CONDITIONS"). If the Earnout Conditions for a
particular Earnout Space have not been satisfied prior to the expiration of such
twenty-four (24) month period, Inland Affiliate shall not be obligated to
distribute and pay the Earnout Space Amount for such Earnout Space and Cordish
Affiliate and the Withdrawing Member shall be deemed to have waived their right
to the Earnout Space Amount for such Earnout Space. Notwithstanding the
provisions of this Section 1.4.1, in the
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event that on the expiration of such twenty-four (24) month period, a Lease has
been executed for an Earnout Space and the tenant under such Lease is in
occupancy of the Earnout Space and constructing improvements therein, but that
the Project Completion of the Earnout Space tor such Earnout Space has not been
achieved and the Earnout Conditions have not been satisfied, such twenty-four
(24) month period shall be automatically extended to twenty-seven (27) months.
1.4.2. Prior to the date hereof, Subsidiary has entered into
the Leases (each an "EARNOUT LEASE") with tenants (each an "EARNOUT TENANT") for
space at the Property for which the Tenant Conditions have not been satisfied.
EXHIBIT "1.4" hereof lists each Earnout Lease, the Earnout Tenant under such
Earnout Lease, the space in the Property leased by such Earnout Tenant (each an
"EARNOUT SPACE") and the Earnout Space Amount allocated to such Earnout Space.
1.4.3. Each Earnout Closing shall occur upon satisfaction of
the Earnout Conditions for an Earnout Space upon ten (10) business Days prior
written notice by Cordish Affiliate to Inland Affiliate. The Earnout Closing
shall occur on a date, time and place set forth in such notice to Inland
Affiliate by Cordish Affiliate. At the Earnout Closing, Inland Affiliate shall:
first pay Cordish Affiliate the Earnout Space Costs for such Earnout Space;
second, shall deposit an amount equal to two percent (2%) of the Earnout Space
Amount (net of the Earnout Space Costs) to the Operations Reserve (the
"TRANSACTION AMOUNT"); and third, shall deposit forty percent (40%) of the
remaining balance of the Earnout Space Amount allocated to such Earnout Space
after payment of the applicable Earnout Space Costs and the Transaction Amount
to the Operations Reserve and pay the remaining balance of the Earnout Space
Amount allocable to such Earnout Space after payment of the applicable Earnout
Space Costs and the Transaction Amount and the deposit to the Operations Reserve
described in this Section 1.4.3 to Withdrawing Member pursuant to the wire
instructions for the Withdrawing Member contained in the Escrow Agreement.
1.4.4. Subject to the provisions of this Section 1.4.4,
Cordish Affiliate shall be solely responsible for the payment of the EARNOUT
SPACE COSTS (as that term is hereinafter defined.) However, Cordish Affiliate
shall be entitled to be reimbursed for the Earnout Space Cost; provided such
reimbursement does not exceed the Earnout Space Amount for such Earnout Space.
On or before Closing, all construction contracts with respect to the Earnout
Space (which construction contracts are attached hereto as EXHIBIT "1.4.4") that
exist prior to the Closing, shall be assigned by Subsidiary to Cordish Affiliate
and assumed, performed and discharged thereafter by Cordish Affiliate in
accordance with the provisions of the LEASING AGREEMENT (as that term is defined
in Section 3.4 hereof). In addition, notwithstanding anything to the contrary
contained herein, Inland Affiliate shall pay each installment of tenant
allowance due and owing to an Earnout Tenant (which amount shall reduce the
Earnout Space Amount for such Earnout Tenant) within ten (10) Business Days of
the date that Cordish Affiliate requests Inland Affiliate to pay such
installment and provides Inland Affiliate and Withdrawing Member with evidence
that such Earnout Tenant has satisfied the conditions in its Lease for such
payment. The term "EARNOUT SPACE COST" means the actual third-party costs
incurred by Cordish Affiliate in satisfying the Earnout Conditions for an
Earnout Space, such as fulfillment of the initial construction obligations of
Subsidiary under an Earnout Lease and
9
tenant improvement costs, tenant allowance costs and leasing commissions
incurred in connection with an Earnout Space. Cordish Affiliate shall provide
Withdrawing Member and Inland Affiliate with a certification by Cordish
Affiliate of the Earnout Space Cost for each Earnout Space.
1.4.5. With regard to each Earnout Space, prior to the
contribution and payment of the Earnout Space Amount for such Earnout Space,
Inland Affiliate shall: (a) cause Subsidiary to comply with all of the terms and
provisions of the Earnout Lease for such Earnout Space; (b) promptly forward all
notices it receives from the Earnout Tenant under such Earnout Lease to Cordish
Affiliate; (c) fully cooperate, and cause Subsidiary to fully cooperate, with
the efforts of Cordish Affiliate to satisfy the Earnout Conditions for such
Earnout Space; and (d) not permit Subsidiary to enter into any amendments or any
modifications of such Earnout Leases without first obtaining the consent of
Cordish Affiliate, which consent Cordish Affiliate may withhold in its
commercially reasonable discretion.
1.4.6. "PROJECT COMPLETION OF THE EARNOUT SPACE" for each
Earnout Tenant means the satisfaction of the following described requirements:
(1) certificates of substantial completion (subject only to an attached punch
list) as to Subsidiary's work (as delegated to Cordish Affiliate) for
construction of the applicable Earnout Space shall have been issued and signed
by an architect selected by Cordish Affiliate stating that: (A) the "landlord's
work" under the applicable Earnout Lease has been substantially completed in
accordance with the terms, conditions and provisions of the applicable Earnout
Lease, and (B) all material applicable governmental rules, regulations and
requirements have been satisfied in connection with the work performed by
Cordish Affiliate in connection with the applicable Earnout Space; (2) the
applicable Earnout Tenant shall not have filed for bankruptcy, insolvency, or
reorganization protection pursuant to any statute either of the United States or
any state after the date of Closing and prior to the date of the applicable
Earnout Closing and such filing has not been dismissed or withdrawn or the
Earnout Tenant has not been reorganized; (3) Cordish Affiliate shall have caused
the survey to be later-dated to show the "as built" Property and related
improvements (to the extent EXHIBIT "1.4" indicates that this is a requirement
for such Earnout Tenant); (4) Cordish Affiliate shall have delivered to the
Title Company lien waivers for work performed by or on behalf of Cordish
Affiliate in connection with the applicable Earnout Space (or Cordish Affiliate
has provided the Title Company with an indemnity acceptable to the Title Company
in lieu of such lien waivers) (to the extent EXHIBIT "1.4" indicates that this
is a requirement for such Earnout Tenant); and (5) the Title Company shall have
performed a bring-to-date title search confirming that no new liens have
attached to the Property between the Closing and the completion of the Earnout
Space (to the extent EXHIBIT "1.4" indicates that this is a requirement for such
Earnout Tenant.) Inland Affiliate shall cause the Title Company and the surveyor
who prepared the survey referred to above to fully cooperate with the efforts of
Cordish Affiliate to satisfy the provisions of this Subsection concerning title
insurance and surveys.
1.4.7. If an Earnout Lease is terminated prior to the Earnout
Closing for such Earnout Lease, or the Earnout Tenant for such Earnout Lease
filed for bankruptcy, insolvency, or reorganization protection pursuant to any
statute either of the United States or any state after the date of Closing,
Cordish Affiliate shall have the right to replace such Earnout Lease during such
twenty-
10
four (24) month period with a lease or leases from a tenant or tenants
reasonably acceptable to Inland Affiliate and such replacement lease or leases
and tenant or tenants shall be deemed an "Earnout Lease or Leases and Earnout
Tenant or Tenants for purposes of this Section 1.4.
1.4.8. Notwithstanding anything to the contrary contained in
this Section 1.4, on the date that a tenant of an Earnout Space has commenced
payment of rent and/or expenses prior to the satisfaction of the Earnout
Conditions, Inland Affiliate shall thereafter, until the Earnout Conditions for
such Earnout Space has been satisfied, within five (5) Business Days of receipt
by of any such amount, deposit, forty percent (40%) of such amount to the
Operations Reserve and deposit sixty percent (60%) of such amount to Withdrawing
Member pursuant to the wire instructions for the Withdrawing Member contained in
the Escrow Agreement.
1.4.9. The provisions of this Section 1.4 shall survive
closing.
1.5. METHOD OF CONTRIBUTION AND DISTRIBUTION. On the Closing Date,
Inland Affiliate shall: (a) deposit the Capital Contribution (exclusive of the
Escrow Amount, the Liquidity Amount and the Xxxxxxx Money, to the extent the
Xxxxxxx Money is being held by Escrowee), adjusted pursuant to Section 1.2, with
Escrowee by wire transfer of immediately available funds; (b) deposit the Escrow
Amount with Escrowee by wire transfer of immediately available funds; and (c)
deposit the Liquidity Amount with Escrowee by wire transfer of immediately
available funds, Escrowee shall cause the Capital Contribution (including the
Xxxxxxx Money, the Escrow Amount and the Liquidity Amount) to be distributed or
retained in accordance with EXHIBIT "1.5".
1.6. POST CLOSING DATE ADJUSTMENTS AND RELEASE OF LETTERS OF CREDIT.
1.6.1. On the Closing Date, Holding Company shall cause the
Existing Loan to be paid in full or fully defeased, pursuant to EXHIBIT "1.5".
All funds paid to Subsidiary on and after the Closing Date in connection with
the Existing Loan, such as the release of any escrows for real estate taxes and
insurance, capital improvements and leasing expenses shall be paid to Cordish
Affiliate. Cordish Affiliate shall cause sixty percent (60%) of such funds,
escrows and other amounts to be paid to Withdrawing Member. In addition, Holding
Company, exclusively acting by and through Cordish Affiliate shall have the
right to cause Subsidiary to close all bank accounts and checking accounts of
Subsidiary and/or Holding Company that exist prior to the Closing Date and
retain such amounts. By execution of this Agreement, Inland Affiliate and
Holding Company agree and acknowledge and confirm that all such accounts have
been and are irrevocably assigned to the exclusive control of Cordish Affiliate.
Cordish Affiliate shall cause sixty percent (60%) of the amounts contained in
such accounts to be paid to Withdrawing Member
1.6.2. Attached hereto as EXHIBIT "1.6.2" hereof contains a
list of letters of credit that were posted by Subsidiary with various
governmental authorities concerning the Property. If, when and as each such
letter of credit is released to Subsidiary, Subsidiary shall promptly deliver
same to Cordish Affiliate and Cordish Affiliate shall have the right to cause
same to be surrendered
11
to the issuing bank and any collateral posted in connection therewith delivered
to Cordish Affiliate or the affiliate of Cordish Affiliate (other than
Subsidiary or Holding Company) that posted same. Inland Affiliate shall cause
the Subsidiary to reasonably cooperate with the efforts of Cordish Affiliate to
obtain the release of such letters of credit. To the extent such collateral was
originally the property of Subsidiary, Cordish Affiliate shall cause sixty
percent (60%) of such collateral to be delivered to Withdrawing Member.
1.6.3. The provisions of this Section 1.6 shall survive
Closing.
1.7. CLOSING; CLOSING DATE. Upon the terms and subject to the
conditions of this Agreement, the transactions contemplated by this Agreement
shall take place at a closing (the "CLOSING") to be held at the offices of The
Cordish Company, 000 Xxxx Xxxxx Xxxxxx, 0xx Xxxxx, Xxxxxxxxx, Xxxxxxxx, at 10:00
a.m., Baltimore time, or at such other location in Baltimore, Maryland selected
by Holding Company, on the second Business Day following the satisfaction or
waiver of all of the conditions to the obligations of the parties set forth in
ARTICLE VI. The day on which the Closing takes place is referred to herein as
the "CLOSING DATE."
ARTICLE II
EVENTS OCCURRING AT THE CLOSING
2.1. DELIVERIES BY INLAND AFFILIATE. At the Closing, Inland Affiliate
will unconditionally deliver to Cordish Affiliate the following:
2.1.1. A copy of resolutions of Inland Affiliate and Inland,
certified by its Secretary, in the case of Inland, or the Secretary of its sole
member, in the case of Inland Affiliate, authorizing or ratifying its execution
and delivery of this Agreement and the Other Agreements, and the consummation of
the transactions contemplated hereby and thereby.
2.1.2. The Other Agreements, which shall be duly executed by
Subsidiary, Inland Affiliate and/or Inland, as appropriate.
2.1.3. A copy of the organizational documents of Inland
Affiliate and Inland, certified as of a date within five (5) days of the Closing
Date by the Secretary of State of the state of organization.
2.1.4. A certificate of its Secretary, in the case of Inland,
and the Secretary of its sole member, in the case of Inland Affiliate, attaching
thereto a true and complete copy of its Bylaws (in the case of Inland) and
Operating Agreement (in the case of Inland Affiliate) as in effect on the
Closing Date for Inland Affiliate and Inland
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2.1.5. A certificate of the Secretary of its sole member
stating that, to the best of his information and belief, the representations and
warranties contained herein of Inland Affiliate are true, complete, and accurate
in all material respects at and as of the Closing Date.
2.1.6. The opinion of counsel for Subsidiary, Inland Affiliate
and Inland in form and substance similar to EXHIBIT "2.1.6", dated the Closing
Date.
2.1.7. A copy of the owner's title insurance policy, with all
instruments, documents and plats referenced to therein, for the Property and the
survey of the Property prepared for Inland Affiliate or the Subsidiary in
connection with this Agreement.
2.1.8. Such other documents and instruments as reasonably may
be required by Holding Company, exclusively acting by and through Cordish
Affiliate, and the title company issuing the new owner's policy for Subsidiary
on the Closing Date (the "TITLE COMPANY") and which may be necessary to
consummate this transaction and otherwise to effect the agreements of the
parties hereto.
2.1.9. The mutual waiver and release in the form attached
hereto as EXHIBIT "2.2.9" executed by Inland Affiliate pertaining to Inland
Affiliate's alleged breach of that certain Confidentiality Agreement between
Inland Real Estate Acquisition, Inc. and The Cordish Company, dated as February
27, 2004 to the extent that such alleged breach concerned the Property and
Subsidiary. (Such release shall also contain a stand still agreement by The
Cordish Company not to pursue any claims under any similar agreements concerning
any other property owned by an entity that is partially owned by any affiliate
of The Cordish Company as long as such property is subject to a valid and
binding contribution agreement that is similar to this agreement between such
affiliate of The Cordish Company and an affiliate of Inland Affiliate.)
2.2. DELIVERIES BY HOLDING COMPANY. At the Closing, Holding
Company, acting by and through Cordish Affiliate, will deliver to Inland
Affiliate the following:
2.2.1. A copy of the authorization of its managing member
authorizing or ratifying its execution and delivery of this Agreement and the
Other Agreements, and the consummation of the transactions contemplated hereby
and thereby by Holding Company and Cordish Affiliate, respectively.
2.2.2. The Other Agreements, which shall be duly executed by
Cordish Affiliate or its affiliates as appropriate.
2.2.3. A copy of its Articles of Organization (and a copy of
the Articles of Organization of Subsidiary) certified as of a date within five
(5) days of the Closing Date by the Secretary of State (or equivalent official)
of its state (or jurisdiction) of organization.
13
2.2.4. A certificate from the Secretary of State (or
equivalent official) of the State (or jurisdiction) of organization as to its
good standing in such state (or jurisdiction), certified as of a date within
five (5) days of the Closing Date (and such a certificate for Subsidiary).
2.2.5. A certificate from Cordish Affiliate stating that, to
the best of its information and belief, the representations and warranties
contained in ARTICLE IV are true, complete, and accurate in all material
respects at and as of the Closing Date.
2.2.6. The opinion of counsel for Holding Company, Cordish
Affiliate and Subsidiary in form and substance similar to EXHIBIT "2.2.6", dated
the Closing Date.
2.2.7. The affidavits for the Title Company in the form
attached hereto as EXHIBIT "2.2.7" from the persons or entities identified on
such exhibit.
2.2.8. A letter to each tenant of the Property in the form
attached hereto as EXHIBIT "2.2.8" notifying each tenant, of the change of
notice address of Subsidiary.
2.2.9. The mutual waiver and release in the form attached
hereto AS EXHIBIT "2.2.9" executed by The Cordish Company and Cordish Affiliate,
pertaining to Inland Affiliate's alleged breach of that certain Confidentiality
Agreement between Inland Real Estate Acquisition, Inc. and The Cordish Company,
dated as February 27, 2004 to the extent that such alleged breach concerned the
Property and Subsidiary. (Such release shall also contain a standstill agreement
by The Cordish Company not to pursue any claims under any similar agreements
concerning any other property owned by an entity that is partially owned by any
affiliate of The Cordish Company as long as such property is subject to a valid
and binding contribution agreement that is similar to this agreement between
such affiliate of The Cordish Company and an affiliate of Inland Affiliate.)
2.2.10. The books and records of Subsidiary relating to the
operation of the Property, then in the possession of Subsidiary or Cordish
Affiliate, to the extent requested by Inland Affiliate.
2.2.11. An amount equal to the SECURITY DEPOSITS (as that term
is defined in Section 4.9.6 hereof). Such delivery shall be accomplished by wire
transfer of immediately available funds to an account designated by Inland
Affiliate at Closing.
2.2.12. Such other documents and instruments as reasonably may
be required by Inland Affiliate and the Title Company (exclusive of affidavits)
and which may be necessary to consummate this transaction and otherwise to
effect the agreements of the parties hereto.
2.3. EFFECT OF CONTRIBUTIONS. In exchange for the Capital
Contribution: (i) Inland Affiliate and Cordish Affiliate shall execute, seal and
deliver to the other the Operating Agreement, (ii) Inland Affiliate will become
a member of Holding Company pursuant to the terms of the Operating Agreement,
(iii) Inland Affiliate will receive the Percentage Interest set forth beside its
14
name on SCHEDULE A of the Operating Agreement, and (iv) the Capital Account of
Inland Affiliate will be credited with such amount set forth beside its name on
SCHEDULE A of the Operating Agreement. Such Capital Account shall be adjusted
hereafter with respect to any adjustments to the Capita] Contribution as set
forth in Article I of this Agreement that occur after the Closing.
ARTICLE III
RELATED TRANSACTIONS
At the Closing, Inland, Cordish Affiliate, Subsidiary, Inland Affiliate,
and/or Xxxxx X. Xxxxxxx shall enter into the following agreements (collectively,
the "OTHER AGREEMENTS"):
3.1. ESCROW AGREEMENT. Inland Affiliate shall cause Escrowee to
execute and deliver the Escrow Agreement to Subsidiary and Cordish Affiliate.
The Escrow Agreement shall also be executed and delivered by Cordish Affiliate
and Subsidiary to each other and Escrowee at the Closing.
3.2. OPERATING AGREEMENT. The Operating Agreement in the form attached
hereto as EXHIBIT "C." The Operating Agreement shall be executed by Inland
Affiliate and Cordish Affiliate and delivered to each other at the Closing.
3.3. INDEMNIFICATION AND GUARANTY AGREEMENT. The Indemnification and
Guaranty Agreement attached hereto as EXHIBIT "3.3", which: (i) Cordish
Affiliate and Inland Affiliate shall execute and deliver to each other at the
Closing; (ii) Cordish Affiliate shall cause Xxxxx X. Xxxxxxx to execute and
deliver to Inland Affiliate at the Closing; and (iii) Inland Affiliate shall
cause Inland to execute and deliver to Cordish Affiliate at the Closing (the
"INDEMNITY AGREEMENT").
3.4. LEASING AND CONSTRUCTION SERVICE AGREEMENT. The Leasing and
Construction Service Agreement attached hereto as EXHIBIT "3.4", which
Subsidiary and Cordish Affiliate shall execute and deliver to each other at the
Closing (the "LEASING AGREEMENT").
3.5. AUDIT LETTER. Within ten (10) Business Days after receipt of a
written request from the Subsidiary's independent auditor, Cordish Affiliate
shall cause the representation letter attached hereto as EXHIBIT "3.5" to be
executed and delivered to such auditor. This covenant shall survive the Closing.
3.6. LIQUIDITY AMOUNT ESCROW AGREEMENT. Inland Affiliate shall cause
Escrowee to execute and deliver the Liquidity Amount Escrow Agreement to
Subsidiary and Cordish Affiliate. The Liquidity Amount Escrow Agreement shall
also be executed and delivered by Cordish Affiliate and Subsidiary to each other
and Escrowee at the Closing.
15
ARTICLE III A
POST CLOSING UNDERTAKINGS
3A.1. TAX BASIS. From and after the Closing Inland Affiliate shall
cause Subsidiary to value and report for tax purposes the value of the land of
the Property at Sixty Million and 00/100 Dollars ($60,000,000.00).
3A.2. RESERVED PARCEL. The Existing Property includes the parcel of
land depicted on EXHIBIT "3A.2-A" attached hereto (the "RESERVED PARCEL").
Inland Affiliate shall only have the right to utilize the Reserve Parcel as a
storm water management facility. Subject to the terms of the County Ground
Lease, at any time, after the Closing, on sixty (60) days notice from Cordish
Affiliate or its designee ("RESERVED PARCEL DEVELOPER"), Inland Affiliate shall
cause Subsidiary to sub-ground lease the Reserved Parcel to Reserved Parcel
Developer pursuant to a sub-ground lease prepared by Reserved Parcel Developer,
that is in a form and substance consistent with the provisions of this Section
3A.2 and that is reasonably acceptable to Inland Affiliate, its lender and
Reserved Parcel Developer (the "GROUND LEASE"). The annual rent for the Reserved
Parcel shall be One Dollar. The tenant under the Ground Lease shall be obligated
to pay for the Reserved Parcel's fair share of annual real estate taxes
assessed. Subject to the terms of the County Ground Lease, Reserved Parcel
Developer's interest in the Ground Lease shall be freely assignable, leasable
and financiable from a title standpoint (I.E., Subsidiary and Subsidiary's
lender shall enter into appropriate non-disturbance and lender rights agreements
for the benefit of Reserved Parcel Developer's tenants and lenders and
Subsidiary's lender shall enter into appropriate non-disturbance and lender
rights agreements for the benefit of Reserved Parcel Developer and Reserved
Parcel Developer's tenants and lenders) and Subsidiary shall exercise its rights
under the County Ground Lease to request that same type of rights for the
Reserved Parcel Developer and its tenants and lenders be granted by the Revenue
Authority of Prince George's County; provided, however, in connection with
Subsidiary's then current lender, as a condition to obtaining such
non-disturbance agreement from such current lender, Reserved Parcel Developer,
with the assistance of Subsidiary, shall comply with the provisions of EXHIBIT
"3A-2 B" at Reserved Parcel Developer's sole cost and expense (however, each
party hereto and the Reserved Parcel Developer shall bear its own legal costs
and fees.) In addition, the Ground Lease shall be structured in such a way that
Reserved Parcel Developer will be able to finance its leasehold interest on a
non-recourse basis, at market rates and terms, from traditional real estate
lenders, such as life insurance companies, pension fund advisors and securitized
real estate loan originators. Reserved Parcel Developer, as tenant under the
Ground Lease, shall not violate any of the terms and provisions of the County
Ground Lease, shall cause the Reserved Parcel, and any improvements thereon, to
materially comply with applicable law. Reserved Parcel Developer may be used for
office, residential and/or hotel uses, but may not be used for retail uses,
unless same is an ancillary use to one or more primary uses and does not violate
any then reasonable existing exclusive use provisions contained in a lease by
Subsidiary to a third party for any part of the Property. The development of the
Reserved Parcel shall be done in accordance with applicable law. Any development
upon the Reserved Parcel shall be constructed above the existing storm water
management facility and Subsidiary shall maintain such facility. Reserved Parcel
Developer shall have the right to make alterations to the storm water facility
that does not adversely
16
affect the functionability of such facility. All parking requirements for any
development upon the Reserved Parcel shall be satisfied on the Reserved Parcel.
The Ground Lease shall grant the Reserved Parcel Developer, its successors and
assigns, and its tenants and its tenants employees, customers, agents, visitors
to tie into and utilize the utility infrastructure of the Property and the right
to utilize all of the common areas of the Property for the ingress and access to
the Reserved Parcel. The Ground Lease shall grant the balance of the Property
reciprocal rights. Utilities utilized by the Reserved Parcel shall be separately
metered. The term of the Ground Lease shall be co-terminus with the term of the
County Ground Lease. Reserved Parcel Developer shall have the right to finance
and mortgage its interest in the Ground Lease. It is the intention of the
parties hereto that the provisions of this Section shall run with the land and
bind the successors and assigns of each of the parties hereto. To that end, at
the request of Cordish Affiliate, Inland Affiliate shall cause Subsidiary to
promptly execute and deliver to Cordish Affiliate, in recordable form, a
memorandum of option prepared by Cordish Affiliate that reflect the provisions
of this Section and Cordish Affiliate shall have the right, at the sole cost and
expense of Cordish Affiliate, to cause such memorandum to be recorded among the
appropriate land records. Inland Affiliate shall cause Subsidiary to comply with
the provisions of this Section 3A.2. The parties hereto recognize that
Withdrawing Member and Cordish Affiliate jointly own the rights to the Reserved
Parcel on a 60/40 basis (with Withdrawing member holding the sixty percent (60%)
share.)
3A.3. EXISTING LITIGATION. Attached hereto as EXHIBIT "3A.3"
is a schedule of pending litigation. From and after the Closing, Cordish
Affiliate, in the name of Subsidiary, at no cost and expense to Subsidiary,
Holding Company or Inland Affiliate, shall have the exclusive right and power to
manage, direct, prosecute and settle such litigation. All judgments or
settlements shall be paid directly to Cordish Affiliate and Cordish Affiliate,
after deducting reasonable and actual third-party expenses in obtaining such
judgment, shall pay sixty percent (60%) of such amount to Withdrawing Member.
Cordish Affiliate shall indemnify and hold harmless Subsidiary, Holding Company
and Inland Affiliate from and against any costs, expenses or damages associated
with such litigation. At the request of Cordish Affiliate, Subsidiary shall
assign any or all of such litigation to an entity designated by Cordish
Affiliate that is owned by Cordish Affiliate and Withdrawing Member on a 40/60
basis (with Withdrawing member holding the sixty percent (60%) share.) At the
request of Cordish Affiliate Subsidiary shall execute pleadings and other
documents associated with such litigation. In addition, at the request of
Subsidiary, in connection with the closing of a financing by Subsidiary,
Subsidiary shall have the right, on ten (10) days notice to Cordish Affiliate
and Withdrawing Member, to assign any or all of such litigation to an entity
designated by Cordish Affiliate that is owned by Cordish Affiliate and
Withdrawing Member on a 40/60 basis (with Withdrawing member holding the sixty
percent (60%) share.)
3A.4. CENTREPLEX GROUND LEASE. From and after the Closing Date, Inland
Affiliate shall cause the Subsidiary to honor that certain Sublease, dated March
14, 2003, between Subsidiary, as Landlord, and Withdrawing Member, as Tenant, in
accordance with its terms.
3A.5. SHELL IMPROVEMENTS. From the date hereof, until the Closing Date,
Subsidiary will be prosecuting the construction of certain improvements (the
"SHELL IMPROVEMENTS") pursuant to and
17
described in those certain construction contracts described on EXHIBIT "3A.5"
hereto (the "SHELL IMPROVEMENTS CONTRACTS"). Cordish Affiliate shall be solely
responsible for the payment of the SHELL IMPROVEMENTS COSTS (as that term is
defined herein.) However, Cordish Affiliate shall be entitled to be reimbursed
for the Shell Improvements Costs from the Operations Reserve and from the
Construction Completion Reserve. On or before Closing, the Shell Improvements
Contracts shall be assigned by Subsidiary to Cordish Affiliate and assumed,
performed and discharged thereafter by Cordish Affiliate in accordance with the
provisions of the Leasing Agreement. The term "SHELL IMPROVEMENTS COSTS" means
the actual third-party costs incurred by Cordish Affiliate in connection with
the undertaking and completing of the Shell Improvements Contracts.
3A.6. SURVIVAL. The provisions of this Article III A shall survive the
Closing.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF HOLDING COMPANY
Holding Company hereby represents and warrants to Inland Affiliate as
follows:
4.1. OWNERSHIP OF HOLDING COMPANY AND SUBSIDIARY.
4.1.1 From its date of formation until the date hereof, the
sole members of Subsidiary have been Holding Company, holding a forty percent
(40%) equity interest in Subsidiary, and Withdrawing Member, holding a sixty
percent (60%) equity interest in Subsidiary. All of the outstanding equity
interests in Subsidiary have been duly authorized and are validly issued.
Holding Company has good and marketable title to its interest in, and after
consummating the transactions contemplated herein will be the sole equity owner
of, Subsidiary.
4.1.2 From the date of its formation until the date hereof,
the sole members of Holding Company were Xxxxx X. Xxxxxxx or Cordish Family I,
LLC, Cordish Enterprises Limited Partnership or Cordish Enterprises, LLLP,
Xxxxxxx X. Xxxxxx or Xxxxxx Family Investments, LLC, Xxxxx X. Xxxxxxxx and
Xxxxxx X. Xxxxxxxx All of the outstanding equity interests in Holding Company
have been duly authorized and are validly issued. Simultaneously with the
consummation of the transactions contemplated herein, Cordish Affiliate shall
have good and marketable title to its interest in Holding Company.
4.1.3 From its date of formation until the Closing Date
Holding Company's ownership interest in Subsidiary has not been changed and with
the exception of changes made for estate planning purposes, there has been no
change in the ownership structure of Holding Company.
4.1.4 There are no outstanding (i) options, warrants or other
rights to acquire any of the equity interests in Subsidiary or Holding Company,
(ii) securities convertible into or exchangeable for limited liability company
membership interests in Subsidiary or Holding Company
18
or any other interests in Subsidiary or Holding Company, or (iii) other
commitments of any kind for the issuance of additional equity interests,
options, warrants or other securities in Subsidiary or Holding Company.
4.2. ORGANIZATION.
4.2.1. On the Closing Date, each of Holding Company,
Subsidiary and, Cordish Affiliate, will be a limited liability company that is
duly organized, validly existing, and in good standing under the laws of its
respective state of organization, with the limited liability company power and
authority to own, lease, and operate its properties and to carry on its business
as now being conducted. Prior to the reorganization of Subsidiary, Subsidiary
had been a general partnership, duly organized, validly existing, and in good
standing under the laws of the state of Maryland, with the power and authority
to own, lease, and operate its properties and to carry on its business as now
being conducted. On the date hereof Cordish Affiliate does not exist. Cordish
Affiliate will be created on the Closing Date.
4.2.2. The copies of the organizational documents and all
amendments thereto of Holding Company, Cordish Affiliate and Subsidiary, as
delivered to Inland Affiliate, are true, complete, and correct copies of the
organizational documents, as amended and presently in effect, of Holding
Company, Cordish Affiliate and Subsidiary.
4.3. QUALIFICATION. On the Closing Date, Holding Company, Subsidiary
and Cordish Affiliate will each be licensed or qualified to do business as
foreign entities and will be in good standing in the jurisdictions in which they
conduct business.
4.4. AUTHORITY. Holding Company has the limited liability company
power and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby. The execution and delivery by Holding Company
of this Agreement has been duly authorized as of the date hereof. No other
proceedings on the part of Holding Company or any other person or entity are
necessary to authorize Holding Company to enter into this Agreement or to
consummate the transactions contemplated hereby; and this Agreement is he legal,
valid, and binding obligations of the Holding Company.
4.5. NO VIOLATIONS. To Cordish Affiliate's Knowledge, except as set
forth in EXHIBIT "4.5", neither the execution nor delivery of this Agreement,
nor the consummation of the transactions contemplated hereby or thereby:
4.5.1. Requires any filing or registration with, or consent,
authorization, approval, or Permit of, any governmental or regulatory authority
on the part of Holding Company;
4.5.2. Violates or will violate (i) any order, writ,
injunction, judgment, decree, or award of any court or governmental or
regulatory authority or (ii) any "LAW," as defined in Section
19
4.7 of this Agreement, of any governmental or regulatory authority to which
Holding Company, or any of their respective properties or assets are subject; or
4.5.3. (i) violates or breaches or constitutes a default (or
an event which, with notice or lapse of time or both, would constitute a
default) under, or gives rise to a right to terminate, any mortgage, contract,
agreement, partnership agreement, limited liability company operating agreement
(or like-agreement), deed of trust, license, lease, or other instrument,
arrangement, commitment, obligation, understanding, or restriction of any kind
to which Holding Company or Subsidiary is a party or by which its properties
(including the Property) may be bound, or (ii) will cause, or give any person
grounds to cause, to be accelerated (with notice or lapse of time or both) the
maturity of, or will increase, any liability or obligation of Holding Company or
Subsidiary which violation, breach, default, liability, or obligation,
individually or in the aggregate, is or would negatively impact the business or
financial condition of Holding Company, or Subsidiary.
4.6. LITIGATION. From the date that is three (3) years prior to the
date hereof until the date hereof, except as set forth in EXHIBIT "4.6", there
have been and are no claims, actions, suits, arbitration's, proceedings or
investigations pending before any governmental authority or otherwise, or, to
Cordish Affiliate's Knowledge, threatened against Cordish, Holding Company
and/or Subsidiary that have not been resolved and any judgments against any such
entities paid in full. Cordish Affiliate, Holding Company and Subsidiary are not
subject to any order, writ, judgment, injunction, decree, determination or
award. From the date that is three (3) years prior to the date hereof until the
date hereof, to Cordish Affiliate's Knowledge there have been no unresolved
disputes or disagreement between any Cordish Affiliate entity or Affiliate and
any other member (or partner) of Subsidiary.
4.7. COMPLIANCE WITH APPLICABLE LAW; ADVERSE RESTRICTIONS. As used
herein, all laws (statutory or otherwise), ordinances, rules, regulations,
bylaws, and codes of all governmental and regulatory authorities, whether
federal, state, or local are referred to singularly as a "LAW" and collectively,
as the "LAWS." Except as and to the extent set forth in EXHIBIT "4.7", neither
Holding Company nor Subsidiary nor Cordish Affiliate has received any written
notification during the last three (3) years of any asserted failure to comply
with any Law.
4.8. ASSETS.
4.8.1. From the time of its formation and organization until
the date hereof, Holding Company has not owned or leased any asset other than
its interest in Subsidiary, and cash distributed from Subsidiary. Holding
Company has not engaged in any business other than the ownership of its interest
in Subsidiary. From the time of its formation and organization until the date
hereof, Holding Company has not held an interest in any entity other than
Subsidiary.
4.8.2. With the exception of the property taken from
Subsidiary by condemnation and the resulting litigation concerning such taking,
from its date of formation, until the date hereof, Subsidiary has not owned or
leased any material asset other than the Property (and assets necessary
20
to the operation of the Property) and has not engaged in any business other than
the ownership, development, and operation of the Property.
4.9. THE PROPERTY.
4.9.1. Except as set forth on EXHIBIT "4.9.1", neither Cordish
Affiliate nor Subsidiary has received during the last three (3) years: (i)
building code violation notices (other than notices of violations which have
been removed or corrected); and (ii) notices of any action or governmental
proceeding in eminent domain, or for a zoning change, or affecting the
environmental (including wetlands) condition of the Property.
4.9.2. There are no leases or rental agreements affecting the
Property other than the leases described on EXHIBIT "4.9.2", copies of which
have been supplied to Inland Affiliate (the "LEASES"). EXHIBIT "4.9.2" also
contains, as of the date of the rent roll, a complete, correct and current rent
roll for the Property. Except for matters disclosed in tenant estoppel
certificates delivered to Inland Affiliate or an affiliate of Inland Affiliate
or the counsel of Inland Affiliate in connection with this transaction and/or
routine tenants matters which have been settled, dismissed, or as set forth in
EXHIBIT "4.9.2", neither Holding Company nor Subsidiary has received any claim
during the last three (3) years from any tenant under the Leases alleging any
type of default by the landlord under the Leases or demanding any work or
payment from landlord that has not been resolved. All leasing commissions, and
tenant improvement allowances, and post-Closing rental abatements arising in
connection with any Lease entered into prior to the Closing Date shall be fully-
paid, discharged or credited to Inland Affiliate at Closing.
4.9.3. Except as set forth on EXHIBIT "4.9.3", (a) there are
no management, leasing services or employment contracts affecting the Property
that will be in effect on the Closing Date unless such are terminable without
penalty; (b) there are no persons employed by Holding Company or Subsidiary or
Cordish Affiliate in connection with the operation of the Property, and (c) to
Cordish Affiliate's Knowledge there are no maintenance, advertising or service
contracts affecting the Property that will be in effect on the Closing Date
unless such are terminable without penalty.
4.9.4. Except as set forth in the Leases or EXHIBIT "4.9.4":
(a) Subsidiary owns a ground leasehold interest in and to the Property created
by that certain First Amended and Restated Ground Lease, dated as of April 17,
2000, between Revenue Authority of Prince George's County, as landlord, and
Subsidiary, as tenant (as amended through the date hereof, the "COUNTY GROUND
LEASE") and (b) no third party acquired any right to purchase all or any part of
the Property.
4.9.5. Except as set forth in EXHIBIT "4.9.5", there exists no
obligation on the part of Holding Company or Subsidiary for any leasing and/or
broker commissions or like payments for any period subsequent to the Closing
Date, in connection with any Lease executed prior to the Closing Date, except
for those arising out of renewal, expansion or other similar options exercised
by tenants under any Lease.
21
4.9.6. EXHIBIT "4.9.6" contains a true, accurate and complete
list of each Lease under which a tenant has paid Subsidiary a security deposit,
and the amount of such security deposit, which security deposit Subsidiary may
have an obligation to return upon the expiration of such Lease (each a "SECURITY
DEPOSIT").
4.9.7. Except as set forth in the Leases or in an instrument
or agreement that is recorded among the appropriate land records, Subsidiary has
not granted a tenant or occupant of the Property an exclusive right to use the
Property for any particular purposes.
4.10. TAXES.
4.10.1. All returns, declarations, reports, claims for refunds,
or information returns or statements or other forms relating to all fees
(including without limitation documentation, recording, license, and
registration fees), taxes (including without limitation net income, alternative,
unitary, alternative minimum, minimum franchise, value added, ad valorem,
income, receipts, capital, excise, sales, use, leasing, fuel, excess profits,
turnover, occupational, property (personal and real, tangible and intangible),
transfer, recording and stamp taxes, levies, imposts, duties, charges, fees
assessments, or withholdings of any nature whatsoever, general or special,
ordinary or extraordinary, and any transaction privilege or similar taxes)
imposed by or on behalf of a governmental authority, together with any and all
penalties, fines, additions to tax and interest thereon (the "TAXES"), including
any schedule or attachment thereto, and including any amendment thereof (the
"TAX RETURNS") required to be filed by Holding Company and Subsidiary have, to
the Knowledge of Cordish, been accurately prepared in all material respects and
timely filed.
4.10.2. All Taxes for which Holding Company or Subsidiary may
be held liable (whether or not appearing on such Tax Returns and other than the
Taxes referred to in the next sentence), have been paid or accrued within the
prescribed period or any extension thereof. All Taxes required to be withheld by
Holding Company or Subsidiary, including, but not limited to, Taxes arising as a
result of payments or distributions (or amounts allocable) to foreign partners
or foreign persons or to employees of Holding Company or Subsidiary, have been
collected and withheld, and have been either paid to the respective
governmental agencies, set aside in accounts for such purpose, or accrued,
reserved against, and entered upon the books and records of the employer.
4.10.3. To Cordish Affiliate's Knowledge, there are no Tax
liens upon the Property, except for liens for current Taxes not yet due and
payable.
4.10.4. Both Holding Company and Subsidiary qualify (and since
the date of formation have qualified) and, giving effect to the terms of the
Operating Agreement, will qualify immediately after the Closing Date, to be
treated as a partnership or disregarded entity for federal income tax purposes.
No taxing authority has taken a position inconsistent with such treatment.
Neither Cordish Affiliate nor any other member of Holding Company or Subsidiary
has taken any
22
action, or failed to take any action, that would cause Holding Company or
Subsidiary to be treated as an association taxable as a corporation for income
tax purposes.
4.10.5 Neither Subsidiary, Holding Company, nor Cordish
Affiliate has received from any governmental authority any written notice of
proposed adjustment, deficiency or underpayment of any Taxes pertaining to the
ownership or operation of the Property, which notice has not been satisfied by
payment or been withdrawn, and to Cordish Affiliate's Knowledge, there are no
claims with respect thereto that have been asserted or threatened against
Subsidiary, Holding Company or Cordish Affiliate.
4.10.6 There are no agreements for the extension of time for
the assessment of any Taxes of Holding Company or Subsidiary.
4.10.7 Except as set forth on EXHIBIT "4.10.7", there are no
pending appeals of any Taxes of Holding Company or Subsidiary.
4.11. INSURANCE. To Cordish Affiliate's Knowledge insurance policies or
binders of insurance in the types and amounts set forth on EXHIBIT 4.11 are
valid and currently in effect. Subsidiary has paid, or caused to be paid, all
premiums due under such policies, and to Cordish Affiliate's Knowledge
Subsidiary is not in default with respect to its obligations under any such
policies.
4.12. CONTRACTS.
4.12.1. EXHIBIT "4.12.1" lists each material contract and
agreement of Subsidiary with respect to the Property, other than those set forth
on EXHIBIT "4.9.3" (the "CONTRACTS"). To Cordish Affiliate's Knowledge, there
are no material contracts or agreements of Subsidiary that will be in effect
after the Closing Date except for the Contracts and the Leases.
4.12.2. A true and complete copy of each material Contract has
been made available to Inland Affiliate. Except as disclosed in EXHIBIT
"4.12.2":
4.12.2.1. To the Knowledge of Cordish Affiliate, each
Contract and Lease is valid and binding on the respective parties thereto and is
in full force and effect.
4.12.2.2. To the Knowledge of Cordish Affiliate, after
the Closing, each Contract and Lease shall continue in full force and effect
throughout its effective term, except in the event that a party thereto has
breached such Contract and Lease and as result of such breach, the Contract or
Lease is terminated, or unless an event has occurred that is described therein
that gives rise to a right of termination, which is effectuated or in the event
a party thereto seeks bankruptcy or reorganization protection and has the right,
as a result thereof, to terminate the Contract or Lease and does so.
Notwithstanding the preceding sentence, it is agreed by all of the parties that
all existing management arrangements or contracts (whether oral or written) will
be terminated as of the Closing.
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4.12.2.3. To the Knowledge of Cordish Affiliate,
Subsidiary has neither received nor delivered a written notice of default with
respect to any Contract or Lease within the past three years that is presently
unresolved.
4.12.2.4. To the Knowledge of Cordish Affiliate,
Subsidiary has not delivered a written notice of default to any other party to a
Contract or Lease that is presently unresolved.
4.12.2.5 To the Knowledge of Holding Company there are
no material defaults existing with respect to any Lease or material Contract
that has or is likely to have a material adverse effect on Subsidiary or the
Property.
4.13. "KNOWLEDGE." For purposes of this Agreement, "KNOWLEDGE" means
the actual knowledge of the individuals whose names are set forth on EXHIBIT
"4.13", without any obligation of investigation or inquiry by such individuals.
For the avoidance of doubt, the parties agree that the term "KNOWLEDGE" as used
in this Agreement with an initial lower case "k" shall have the same meaning as
the defined term, "KNOWLEDGE" with an initial uppercase "K".
4.14. BROKERS' FEES. Neither Holding Company, Subsidiary nor Cordish
Affiliate has incurred any liability or obligation to pay any fees or
commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement.
4.15 INSOLVENCY. Neither Holding Company nor Subsidiary have (i) made
a general assignment for the benefit of its creditors, (ii) instituted, or been
the subject of, any proceeding to be adjudicated bankrupt or insolvent or
consented to the institution of bankruptcy or insolvency proceedings against it,
(iii) filed a petition, answer or consent seeking reorganization or relief under
any applicable federal or state bankruptcy law or consented to the filing of any
such petition or to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator or other similar official of it or of any part of its
property, or (iv) admitted in writing its inability to pay its debts generally
as they become due.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF INLAND AFFILIATE
Inland Affiliate hereby represents and warrants to Holding Company as
follows:
5.1. ORGANIZATION, QUALIFICATION AND CORPORATE POWER. Inland Affiliate
is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Delaware and is duly qualified to
conduct business and is in corporate and tax good standing under the laws of
each jurisdiction in which the nature of its businesses or the ownership or
leasing of its
24
properties requires such qualification. Inland Affiliate has all requisite power
and authority to carry on the businesses in which it is engaged and to own and
use the properties owned and used by it.
5.2. AUTHORIZATION OF TRANSACTION. Inland Affiliate has all requisite
power and authority to execute and deliver this Agreement and the Other
Agreements, and to perform its obligations hereunder and thereunder. The
execution and delivery by Inland Affiliate of this Agreement and the Other
Agreements, and the consummation by Inland Affiliate of the transactions
contemplated hereby and thereby, have been duly and validly authorized by all
necessary action on the part of Inland Affiliate. This Agreement has been duly
and validly executed and delivered by Inland Affiliate and constitutes a valid
and binding obligation of Inland Affiliate, enforceable against it in accordance
with its terms.
5.3. NONCONTRAVENTION. Neither the execution and delivery by Inland
Affiliate of this Agreement or the Other Agreements, nor the consummation by
Inland Affiliate of the transactions contemplated hereby and thereby, will (a)
conflict with or violate any provision of the organizational documents of Inland
Affiliate, (b) require on the part of Inland Affiliate any filing with, or
permit, authorization, consent or approval of, any third party, (c) conflict
with, result in breach of, constitute (with or without due notice or lapse of
time or both) a default under, result in the acceleration of obligations under,
create in any party any right to terminate, modify or cancel, or require any
notice, consent or waiver under, any contract or instrument to which Inland
Affiliate is a party or by which it is bound or to which its assets are subject,
or (d) violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Inland Affiliate or any of its properties or assets.
5.4. SECURITIES LAW COMPLIANCE. Inland Affiliate acknowledges that the
offering and issuance to it of an equity interest in Holding Company (the
"INTEREST") is intended to be exempted from registration under the Securities
Act of 1933, as amended (the "SECURITIES ACT"). Inland Affiliate understands and
agrees that it will sell or otherwise transfer the Interest (or any portion
thereof) only in accordance with the provisions of the Securities Act, pursuant
to registration under the Securities Act or pursuant to an available exemption
from registration thereunder and otherwise in a manner that does not violate the
securities laws of any state of the United States, Inland Affiliate understands
that Holding Company is under no obligation to register the Interest on behalf
of Inland Affiliate or to assist Inland Affiliate in complying with any
exemption from registration under the Securities Act or under any other
applicable securities laws. Inland Affiliate also understands that sales or
transfers of the Interest are further restricted by the provisions of the
Operating Agreement and the securities laws of the states of the United States.
5.5. PURCHASE FOR INLAND. Inland Affiliate is acquiring the Interest
for its own account as principal, for investment and not with a view to, or for
the resale, distribution, or fractionalization thereof, in whole or in part, and
no other person has any direct or indirect beneficial interest in the Interest.
5.6. ACCREDITED INVESTOR, ETC. Inland Affiliate is an "accredited
investor" within the meaning of Regulation D promulgated under the Securities
Act. Inland Affiliate has such knowledge
25
and experience in financial, tax, and business matters that it is capable of
evaluating the merits and risks of its acquisition of the Interest.
5.7. DUE DILIGENCE. Inland Affiliate acknowledges that, except for the
matters that are expressly covered by the provisions of this Agreement, the
Indemnity Agreement or the Operating Agreement, Inland Affiliate is relying on
its own investigation and analysis in entering into the transactions
contemplated by this Agreement. Inland Affiliate acknowledges that it is
acquiring its membership rights in and to Holding Company without any
representation or warranty, express or implied, by Cordish Affiliate, Holding
Company or Subsidiary, except as expressly set forth herein. With respect to any
projection or forecast delivered by or on behalf of Holding Company to Inland
Affiliate, Inland Affiliate acknowledges that (i) there are uncertainties
inherent in attempting to make such projections and forecasts, (ii) the accuracy
and correctness of such projections and forecasts may be affected by information
which may become available after the date of such projections and forecasts, and
(iii) Inland Affiliate is familiar with each of the foregoing. Inland Affiliate
has no knowledge of any facts and/or circumstances that would make any of the
representations and warranties contained in Article IV untrue or misleading.
5.8. BROKERS' FEES. Neither Inland Affiliate nor any affiliate thereof
has any liability or obligation to pay any fees or commissions to any broker,
finder or agent with respect to the transactions contemplated by this Agreement.
5.9. COOPERATION ON TAX MATTERS. Inland Affiliate will cooperate
fully, as and to the extent reasonably requested by Holding Company or Cordish
Affiliate, in connection with any audit, litigation or other proceeding with
respect to Taxes. Such cooperation shall include the retention and (upon the
other party's request) the provision of records and information that are
reasonably relevant to any such audit, litigation, or other proceeding and
making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. Holding Company
and Inland Affiliate agree (a) to retain all books and records that are relevant
to the determination of the Tax liabilities pertinent to Holding Company and
Subsidiary relating to any prior Tax period until the expiration of the
applicable statute of limitations and to abide by all record retention
agreements entered into with any Taxing Authority and (b) to give the other
party reasonable written notice prior to destroying or discarding any such books
and records and, if the other party so requests, Holding Company or Inland
Affiliate, as the case may be, shall allow the other party to take possession of
such books and records.
26
ARTICLE VI
CONDITIONS TO CLOSING
6.1. CONDITIONS TO OBLIGATIONS OF HOLDING COMPANY. The obligation of
Holding Company to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment, at or prior to the Closing Date, of each of
the following conditions, unless waived in writing by Holding Company:
6.1.1. REPRESENTATIONS AND WARRANTIES. Each representation and
warranty of Inland Affiliate contained in this Agreement shall be true and
correct in all material respects on and as of the Closing Date.
6.1.2. PERFORMANCE OF AGREEMENTS. Inland Affiliate shall have
performed or complied in all material respects with all agreements and covenants
required by this Agreement to he performed or complied with by it on or prior to
the Closing Date.
6.1.3. NO PROCEEDING OR LITIGATION. (i) No action shall have
been commenced by any governmental authority against Cordish Affiliate,
Subsidiary, Holding Company or Inland Affiliate seeking to restrain or
materially and adversely alter the transactions contemplated by this Agreement
and (ii) no injunction or order of any governmental authority or any Law shall
be in effect which, in the case of each of (i) and (ii), in the reasonable, good
faith determination of Holding Company, is likely to render it impossible or
unlawful to consummate such transactions.
6.1.4. INLAND AFFILIATE'S DELIVERIES. Inland Affiliate shall
have delivered to Holding Company and Escrowee at or before the Closing the
items specified in Section 2.1.
6.1.5. REORGANIZATIONS. Withdrawing Member shall have executed
and delivered to Holding Company an Agreement to Reorganize and Retire that is
substantially in the form attached hereto as EXHIBIT "6.1.5", (or that
substantively, with regard to Inland Affiliate, accomplishes the retirement of
Withdrawing Member from Subsidiary)and the transactions contemplated therein
(other than the retirement of Withdrawing Member) shall have been consummated.
6.1.6. OTHER TRANSACTIONS. Inland Affiliate shall have
consummated the transactions contemplated by the Contribution Agreements it has
entered into of even date with respect to the limited liability companies set
forth on EXHIBIT "6.1.6".
6.2. CONDITIONS TO OBLIGATIONS OF INLAND AFFILIATE. The obligation of
Inland Affiliate to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment, at or prior to the Closing Date, of each of
the following conditions, unless waived in writing by Inland Affiliate:
27
6.2.1. REPRESENTATIONS AND WARRANTIES. Each representation and
warranty of Holding Company and Cordish Affiliate contained in this Agreement
shall be true and correct in all material respects on and as of the Closing
Date.
6.2.2. PERFORMANCE OF AGREEMENTS. Holding Company shall have
performed or complied in all material respects with all agreements and covenants
required by this Agreement to he performed or complied with by it on or prior to
the Closing Date.
6.2.3. NO PROCEEDING OR LITIGATION. (i) No action shall have
been commenced by any governmental authority against Cordish Affiliate,
Subsidiary, Holding Company or Inland Affiliate seeking to restrain or
materially and adversely alter the transactions contemplated hereby and (ii) no
injunction or order of any governmental authority or Law shall be in effect,
which, in the case of each of (i) and (ii), in the reasonable, good faith
determination of Inland Affiliate is likely to render it impossible or unlawful
to consummate the transactions contemplated by this Agreement.
6.2.4. HOLDING COMPANY'S DELIVERIES. Holding Company shall
have delivered to Inland Affiliate and Escrowee at the Closing the items
specified in Section 2.2.
6.2.5. REORGANIZATIONS. Withdrawing Member shall have
executed, sealed; and delivered to Cordish Affiliate the Agreement to Reorganize
and Retire attached hereto as EXHIBIT "6.1.5", and the transactions contemplated
therein (other then the retirement of Withdrawing Member) shall have been
consummated.
6.2.6. LEASES. There shall not be a material default under:
(a) any Lease at the Property described on EXHIBIT "6.2.6" hereof (the "ANCHOR
LEASES"); or (b) Leases, exclusive of the Anchor Leases, representing more than
five (5%) percent of the gross leasable area of the Property.
6.2.7. ESTOPPEL CERTIFICATES. Inland Affiliate shall have
received the estoppel certificates from those tenants under Leases and others
forth on EXHIBIT "6.2.7".
6.2.8. CASUALTY OR CONDEMNATION. If prior to the Closing all
or any part of the Property is destroyed or damaged or is taken by condemnation,
eminent domain or other governmental acquisition provisions, then the following
procedures shall apply:
6.2.8.1. (a) If the reasonable estimated cost of
repair or replacement to be incurred by Subsidiary or the value of the
governmental taking is Ten Million and no/100 Dollars ($10,000,000.00) or less
(the "THRESHOLD"), AND, (b) if as a result of such damage or taking Leases for
at least ninety percent (90%) of the gross leasable area of the Property are:
(i) not terminable on account thereof (assuming any necessary repairs,
replacements or alterations required under the Leases are diligently pursued by
the landlord thereunder), and/or (ii) if so terminable, the tenant or tenants
under such Lease or Leases has or have waived its or their termination rights
AND, (c) to the extent abatement of rent occurs as a result of the damage,
destruction or condemnation that continues after the Closing Date with regard to
Leases for ten percent (10%) or more of the gross leasable area
28
of the Property, such abatement of rent is covered and paid for by insurance
coverage of Subsidiary which payments continue after the Closing Date (or other
alternative payment arrangements are implemented by Cordish Affiliate at no cost
and expense to Subsidiary which are reasonably acceptable by Inland Affiliate),
THEN this condition to the Closing shall be deemed waived by Inland Affiliate,
and Inland Affiliate shall proceed to the Closing, with the exception of a
credit thereto for any applicable deductible, the Capital Contribution shall not
be reduced, and Inland Affiliate shall retain the sole benefit, through
Subsidiary, of all casualty insurance and condemnation proceeds due with respect
to such destruction, damage or taking, as well as the proceeds and benefits
under any rent loss or business interruption policies attributable to the period
following the Closing.
6.2.8.2. (a) If any material point of ingress or
egress to or from the Property is either taken (or threatened to be taken) and
cannot be replaced or relocated with a suitable alternative, OR (b) if five
percent (5%) or more of any parking located upon the Property is either taken
(or threatened to be taken), OR (c) if the cost of reasonable cost of repair or
replacement to be incurred by Subsidiary or the value of the casualty or
governmental taking is greater than the Threshold, OR (d) Leases representing
more than ten percent (10%) of the gross leasable area of the Property are
terminable on account thereof (notwithstanding any necessary repairs,
replacements or alterations required under the Leases are diligently pursued by
the landlord thereunder) and the tenant or tenants under such Leases have not
waived their termination rights OR, (e) to the extent abatement of rent occurs
as a result of the damage, destruction or condemnation that continues after the
Closing Date with regard to Leases and such abatement of rent for Leases
representing ten percent (10%) or more of the gross leasable area of the
Property is not covered and paid for by insurance coverage of Subsidiary which
payments continue after the Closing Date (or other alternative payment
arrangements are not implemented by Cordish Affiliate at no cost and expense to
Subsidiary which are reasonably acceptable by Inland Affiliate), THEN Inland
Affiliate, at its sole option, may elect either to (x) terminate this Agreement
by written notice to Holding Company and receive an immediate return of the
Xxxxxxx Money and neither party shall have any further liability to the other
hereunder; or (y) accept Subsidiary's rights to all casualty insurance and
condemnation proceeds with respect thereto with no reduction in the Capital
Contribution (except for the amount of any deductible under existing insurance
policies), it being understood and agreed that, in such event, Cordish Affiliate
shall cooperate with Inland Affiliate in the adjustment and settlement of the
insurance or condemnation claim.
6.2.8.3. If there is a dispute between Inland
Affiliate and Holding Company with respect to the cost of repair, restoration or
replacement with respect to the matters set forth in this Section 6.2.8, an
engineer designated by Holding Company and an engineer designated by Inland
Affiliate shall select an independent engineer licensed to practice in the
jurisdiction where the Property is located who shall resolve such dispute. All
fees, costs and expenses of this third engineer shall be shared equally by
Inland Affiliate and Holding Company.
6.2.9. The Title Company, which has delivered to Inland
Affiliate the commitment to issue an owner's title insurance policy attached
hereto as EXHIBIT "6.2.9" (the "TITLE COMMITMENT"), upon compliance by the
parties hereto of their respective obligations hereunder, is
29
prepared to issue a title insurance policy in form and substance materially
similar to the Title Commitment.
ARTICLE VII
TERMINATION AND WAIVER
7.1. TERMINATION. This Agreement may be terminated at any time prior
to the Closing only as follows:
7.1.1. By Inland Affiliate if, on or prior to the Closing
Date: (i) any representation or warranty of Holding Company or Cordish Affiliate
set forth in this Agreement shall not have been true and correct in all material
respects when made or ceases to be true and correct in all material respects at
any time subsequent to the date hereof and Holding Company shall have failed to
cure any material misstatement or omission subsequent to the date hereof
promptly after notice by Inland Affiliate; (ii) Holding Company shall not have
complied in all material respects with each covenant or agreement imposed by
this Agreement to be complied with or performed on or prior to the Closing Date
and Holding Company shall have failed to cure any material breach of a covenant
or agreement promptly after notice by Inland Affiliate; or (iii) either Holding
Company or Subsidiary makes a general assignment for the benefit of creditors,
or any proceeding shall be instituted by or against either Holding Company or
Subsidiary seeking to adjudicate either bankrupt or insolvent, or seeking
liquidation, winding up or reorganization, arrangement, adjustment, protection,
relief or composition of its debts under any Law relating to bankruptcy,
insolvency or reorganization.
7.1.2. By Holding Company or Inland Affiliate if the Closing
shall not have occurred on or prior to the first anniversary of the date hereof.
7.1.3. By Inland Affiliate or Holding Company if any
governmental authority shall have issued an order, decree or ruling or taken any
other action restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement and such order, decree, ruling or other action
shall have become final and nonappealable. This provision shall not apply to any
governmental authority that is acting in its capacity as "landlord" under any
ground lease between such governmental authority and Subsidiary.
7.1.4. By the mutual written consent of Holding Company and
Inland Affiliate.
7.1.5. By Holding Company if, between the date hereof and the
time scheduled for the Closing: (i) any representation or warranty of Inland
Affiliate set forth in this Agreement shall not have been true and correct in
all material respects when made or ceases to be true and correct in all material
respects at any time subsequent to the date hereof and Inland Affiliate shall
have failed to cure any material misstatement or omission subsequent to the date
hereof promptly after notice by Holding Company; (ii) Inland Affiliate shall not
have complied in all material respects with each covenant or agreement imposed
by this Agreement to be complied with or performed on or prior to
30
the Closing Date and Inland Affiliate shall have failed to cure any material
breach of a covenant or agreement promptly after notice by Holding Company or
(iii) Inland Affiliate makes a general assignment for the benefit of creditors,
or any proceeding shall be instituted by or against Inland Affiliate seeking to
adjudicate it bankrupt or insolvent, or seeking liquidation, winding up or
reorganization, arrangement, adjustment, protection, relief or composition of
its debts under any Law relating to bankruptcy, insolvency or reorganization.
7.2. EFFECT OF TERMINATION. If this Agreement is terminated as
provided in Section 7.1, this Agreement shall forthwith be canceled and rendered
null and void in its entirety, except that no such termination shall serve to
relieve any breaching party of any liability under this Agreement (except as
otherwise provided in Section 1.1). This Section 7.2 is not intended to modify
the provisions of Section 1.1. In the event this Agreement is terminated by
Inland Affiliate pursuant to the provisions of Section 7.1, the provisions of
that certain letter agreement dated April 24, 2004, between an affiliate of
Inland Affiliate and The Cordish Company shall apply concerning the
reimbursement of certain costs incurred by Inland Affiliate in connection with
this Agreement.
7.3. WAIVER. Holding Company (and after the Closing Date, Holding
Company acting exclusively by and through Cordish Affiliate) on the one hand and
Inland Affiliate on the other hand may (a) extend the time for the performance
of any of the obligations or other acts of the other party, (b) waive any
inaccuracies in the representations and warranties of the other party contained
herein or in any document delivered by such other party pursuant hereto, or (c)
waive compliance with any of the agreements or conditions of the other party
contained herein. Any such extension or waiver shall be valid only if set forth
in an instrument in writing signed by the party to be bound thereby. Any waiver
of any term or condition shall not be construed as a waiver of any subsequent
breach or a subsequent waiver of the same term or condition, or a waiver of any
other term or condition, of this Agreement. The failure of any party to assert
any of its rights hereunder shall not constitute a waiver of any of such rights.
ARTICLE VIII
MISCELLANEOUS PROVISIONS
8.1. AMENDMENT AND MODIFICATION. NOTWITHSTANDING ANYTHING TO THE
CONTRARY CONTAINED HEREIN, ANY AND ALL AMENDMENTS, MODIFICATIONS, ADDITIONS OR
DELETIONS TO THIS AGREEMENT SHALL BE NULL AND VOID UNLESS APPROVED IN ADVANCE BY
THE PARTIES HERETO IN WRITING. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT
CORDISH AFFILIATE MAY NOT ENTER INTO OR CONSENT TO ANY AMENDMENTS, MODIFICATION,
ADDITIONS OR DELETIONS TO THIS AGREEMENT, OR TO ANY WAIVERS OF ITS RIGHTS UNDER
THIS AGREEMENT, UNLESS IT OBTAINS THE PRIOR WRITTEN CONSENT THERETO FROM
WITHDRAWING MEMBER. WITHDRAWING MEMBER IS INTENDED TO BE A THIRD PARTY
BENEFICIARY OF SECTION 1.4, ARTICLE III A, SECTION 8.1 AND SECTION 8.6 HEREOF.
In the event that any party hereto fails to comply with the provisions of
Sections 1.4 and Section 8.1 hereof, Withdrawing Member shall have the right to
initiate and prosecute an arbitration proceeding against such party to enforce
such sections and provisions (including court actions to enforce or challenge
any findings) solely to the extent that such provisions directly effect the
economic rights and interests of Withdrawing
31
Member. The provisions of Sections 8.3, 8.7, 8.8, 8.9 and 8.10 shall apply to
such proceeding as if Withdrawing Member was a party to this Agreement.
8.2. FURTHER ASSURANCES. From time to time, at the request of Inland
Affiliate or Holding Company (exclusively acting by and through Cordish
Affiliate on and after the Closing Date) and without further consideration, each
party, at its own expense, will execute and deliver such other documents, and
take such other action, as Inland Affiliate or Holding Company (exclusively
acting by and through Cordish Affiliate on and after the Closing Date) may
reasonably request in order to consummate more effectively the transactions
contemplated hereby and to vest in Holding Company good and marketable title to
Subsidiary.
8.3. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Maryland (without regard to its
conflicts of law doctrines).
8.4. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument and shall become a binding
Agreement when one or more of the counterparts have been signed by each of the
parties and delivered to the other party.
8.5. PUBLICITY. Neither of the parties will make any disclosure of the
transactions contemplated by this Agreement, or any discussions in connection
therewith or issue a press release concerning the closing of any such
transaction, or make any public announcement concerning the closing of any such
transaction, without the prior written consent of each of the other parties. The
preceding sentence shall not apply to: (a) any disclosure required to be made by
Law or the regulations of any stock exchange(s), or the Securities and Exchange
Commission, or Blue Sky Laws, as reasonably determined by counsel to the party
determining that such disclosure is required; or (b) a disclosure following
Closing made in the ordinary course of operations of Inland or Cordish
Affiliate; provided any such disclosure made pursuant to clause (a) or (b) of
this sentence is not inconsistent with the form of the transactions as described
in this Agreement. This provision shall survive Closing.
8.6. NOTICES. All notices, demands, consents, approvals, requests or
other communications which any of the parties to this Agreement may desire or be
required to give hereunder (collectively, "NOTICES") shall be in writing and
shall be given by personal delivery, nationally recognized next day delivery
service (delivery charges prepaid, return receipt requested) or United States
registered or certified mail (postage prepaid, return receipt requested)
addressed as hereinafter provided. Except as otherwise specified herein, the
effective date of any Notice (I.E., the date a party shall be deemed to have
received such Notice), shall be the earliest to occur of: (a) if by personal
delivery, the date of receipt, or attempted delivery, if such communication is
refused; (b) if by nationally recognized next day delivery service (as
aforesaid), the next Business Day after delivery to such service; and (c) if
sent by mail (as aforesaid), three (3) Business Days after posting, Until
further notice, notices and other communications under this Agreement shall be
addressed to the parties listed below as follows:
32
If to Inland Affiliate: x/x Xxxxxx Xxxxxxx Xxxxxx Xxxx Xxxxxx Trust, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
with a copy to: c/o The Inland Real Estate Group, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: General Counsel
with a copy to: Xxxx X. Xxxxxxxx III, Esquire
Xxxx Xxxxx, LLP
000 Xxxxx Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
If to Holding Company: c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attention: President
With a copy to: c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attention: General Counsel
When delivering a Notice pursuant to this Agreement, each party shall
contemporaneously deliver a copy of such Notice to Centre Group Limited
Partnership ("WITHDRAWING MEMBER") by the same manner of delivery of such Notice
at the following addresses:
Centre Group Limited Partnership
c/o Washington Sports and Entertainment
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
With a copy to: Centre Group Limited Partnership
c/o c/o Washington Sports and Entertainment
33
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
With a copy to: Xxxxxxx X. Brand, Esquire
Arent Fox PLLC
0000 Xxxxxxxxxxx Xxxxxx, XX
Xxxxxxxxxx, XX 00000-0000
Any party hereto or Withdrawing Member may designate another addressee
(and/or change its address) for Notices hereunder by a Notice given pursuant to
this Section to each of the other parties hereto and Withdrawing Member. On and
after the Closing Date, all notices from Inland Affiliate to Holding Company in
connection with this Agreement shall be sent to Holding Company, care of Cordish
Affiliate at the above addresses for Holding Company.
8.7. ARBITRATION. Except as otherwise provided in Section 1.1.1.3
hereof, in the event that any dispute shall arise between Inland Affiliate and
Holding Company with respect to the application of any of the provisions of this
Agreement, and such dispute is not resolved to the satisfaction of Inland
Affiliate and Holding Company within twenty (20) days after Inland Affiliate or
Holding Company shall notify the other in writing of its desire to arbitrate the
dispute (the "ARBITRATION NOTICE"), then the dispute shall be resolved in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association then pertaining. The decision of the arbitrator shall be binding,
final and conclusive on the parties. Unless the parties otherwise agree, such
arbitration proceedings shall be conducted in Baltimore City, Maryland. The
arbitrator shall be selected by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The fees of the arbitrator and the expenses incident to the
proceedings shall he borne by the losing party. The reasonable fees of
respective counsel engaged by the parties, and the fees of expert witnesses and
other witnesses called for the parties, shall also be paid by the losing party.
The decision of the arbitrator shall be rendered within thirty (30) days after
the conclusion of the arbitration. A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrator in accordance with
the rules and statutes applicable thereto then obtaining. The parties hereto
agree that the arbitrator may order and compel specific performance.
Notwithstanding anything to the contrary contained in this Section 8.7, disputes
concerning who is entitle to receive the Xxxxxxx Money and the Xxxxxxx Money
Note shall not be subject to arbitration.
8.8. ATTORNEY FEES. Subject to the provisions of Section 8.7, if
either Inland Affiliate or Holding Company brings suit or other legal
proceedings to enforce the provisions of this Agreement against the other, then
the party prevailing in such suit or proceeding shall be reimbursed by the other
for all reasonable attorneys' fees and litigation costs and expenses incurred by
the prevailing party in connection with such suit or proceeding.
8.9. VENUE. Any lawsuit, action, or proceeding arising under this
Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the
34
District of Maryland. In the event federal jurisdiction does not exist, such
lawsuit, action or proceeding shall be brought in the Circuit Court for
Baltimore County. Maryland.
8.10 WAIVER OF JURY TRIAL. Subject to the provisions of Section 8.7,
Inland Affiliate and Holding Company do hereby waive trial by jury in any
action, suit, proceeding, and/or counterclaim brought by either of the parties
hereto against the other on any matters whatsoever arising out of or in any way
connected with this Agreement any claim of injury or damage, and/or statutory
remedy.
8.11. HEADINGS. The article and section headings contained in this
Agreement, including the Exhibits attached hereto, are for reference purposes
only and shall not affect in any way the meaning or interpretation of this
Agreement.
8.12 ENTIRE AGREEMENT. This Agreement, together with the Other
Agreements, embodies the entire agreement and understanding of the parties
hereto in respect of the subject matter contained herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter.
8.13. SEVERABILITY. If any one or more provisions contained in this
Agreement shall, for any reason, be held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provision of this Agreement, but this Agreement shall
be construed as if such invalid, illegal, or unenforceable provision had never
been contained herein.
8.14. INCONSISTENCY OR CONFLICT. In the event of any inconsistency or
conflict between any provision of this Agreement and any provision of any of the
Other Agreements, the provisions of this Agreement shall govern.
8.15. EXHIBITS, SCHEDULES AND RECITALS INCORPORATED INTO AGREEMENT. All
exhibits, schedules and recitals form a part of this Agreement.
8.16. CONSTRUCTION. The construction of this Agreement shall not take
into consideration the party who drafted or whose representative drafted any
portion of this Agreement, and no xxxxxx of construction shall be applied that
resolves ambiguities against the drafter of a document. The parties acknowledge
that they were advised by competent counsel that each has chosen to represent
such party and each party has had a full opportunity to comment upon and
negotiate the terms of this Agreement.
8.17. DUTY OF COOPERATION. Each of the parties hereto shall cooperate
with the other party generally, and in particular will make available, as the
other party reasonably requests, management decisions, liaison personnel,
information, approvals and acceptances so that the other party may properly
perform its obligations under this Agreement. The provisions of this Section
8.17 shall survive Closing.
35
8.18. FAIR DEALING. The parties recognize and intend that portions of
this Agreement are very general in nature, and the parties acknowledge that they
intend to operate in good faith and deal fairly with one another when
interpreting their respective obligations hereunder.
8.19. TIME OF THE ESSENCE. Time is of the essence in the performance of
the obligations of Holding Company and Inland Affiliate under this Agreement.
8.20. INTERPRETATION. Except as otherwise expressly provided herein,
the following rules of interpretation apply to this Agreement: (i) the singular
includes the plural and the plural includes the singular except when the context
otherwise requires; (ii) "include" and "including" are not limiting; (iii) a
reference to any agreement or contract includes exhibits, schedules, and
permitted supplements and amendments thereto; (iv) a reference to a Law includes
any amendment or modification to such law and any rules or regulations issued
thereunder, and (v) a reference to a person includes such person's permitted
successors and assigns.
8.21. BUSINESS DAY. The term "BUSINESS DAY" means any day other than
Saturday, Sunday or any other day on which commercial banks or savings and loan
associations are required or authorized by law to close in New York City.
SIGNATURES ON NEXT PAGE
36
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
under seal, as of the date first above written.
WITNESS/ATTEST: HOLDING COMPANY:
THE CAPITAL CENTRE INVESTORS, LLC, a
Maryland limited liability company
/s/ [ILLEGIBLE] By: /s/ Xxxxx X. Xxxxxxxx (SEAL)
-------------------- ------------------------------------
Xxxxx X. Xxxxxxxx, Authorized Person
INLAND AFFILIATE:
THE INLAND COMPANY LLC, a Delaware
limited liability company,
By: Inland Western Retail Real Estate Trust, Inc.,
a Maryland corporation, its sole member
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
-------------------- ------------------------------------
Name: [ILLEGIBLE]
----------------------------------
As Its: Authorized Person
--------------------------------
CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, for good and
valuable consideration , the receipt and adequacy of which it hereby
acknowledges, executes this Contribution Agreement under seal as of the date
first above written, to acknowledge its receipt of an original copy of this
Agreement as executed by Holding Company, and Inland Affiliate and to
acknowledge its agreement to act as Escrowee in accordance with the terms and
conditions set forth in Section 1.1 hereof and to comply with the provisions of
Section 1.5 hereof.
WITNESS/ATTEST ESCROWEE:
CHICAGO TITLE INSURANCE
COMPANY, a Missouri corporation,
By: (SEAL)
-------------------- ------------------------------------
Name:
----------------------------------
Title:
---------------------------------
37
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
under seal, as of the date first above written.
WITNESS/ATTEST: HOLDING COMPANY:
THE CAPITAL CENTRE INVESTORS, LLC, a
Maryland limited liability company
By: /s/ Xxxxx X. Xxxxxxxx (SEAL)
-------------------- ------------------------------------
Xxxxx X. Xxxxxxxx, Authorized Person
INLAND AFFILIATE:
THE INLAND COMPANY LLC, a Delaware
limited liability company,
By: Inland Western Retail Real Estate Trust, Inc.,
a Maryland corporation, its sole member
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
-------------------- ------------------------------------
Name: [ILLEGIBLE]
----------------------------------
As Its: Authorized Person
-----------------------------
CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, for good and
valuable consideration , the receipt and adequacy of which it hereby
acknowledges, executes this Contribution Agreement under seal as of the date
first above written, to acknowledge its receipt of an original copy of this
Agreement as executed by Holding Company, and Inland Affiliate and to
acknowledge its agreement to act as Escrowee in accordance with the terms and
conditions set forth in Section 1.1 hereof and to comply with the provisions of
Section 1.5 hereof.
WITNESS/ATTEST ESCROWEE:
CHICAGO TITLE INSURANCE
COMPANY, a Missouri corporation,
/s/ [ILLEGIBLE] By: /s/ Xxxxx X. Xxxxxx (SEAL)
-------------------- ------------------------------------
Name: XXXXX X. XXXXXX
----------------------------------
Title: AVP
---------------------------------------
37
INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation
("INLAND"), for Ten and 00/100 Dollars ($10.00) and other good and valuable
consideration, the receipt and adequacy of which it hereby acknowledges, hereby
guarantees to Holding Company the prompt payment by Inland Affiliate of all
amounts, costs and expenses that Inland Affiliate may be obligated to pay or
deposit pursuant to Sections 1.1., 8.7 and 8.8, above including any and all
costs and expenses of Holding Company that Inland Affiliate may be obligated to
pay Holding Company pursuant to the provisions of Sections 1.1, 8.7 and 8.8
above. Such guaranty shall be primary and not secondary and Inland shall be
deemed jointly and severally liable with Inland Affiliate in connection with the
obligation to pay any such amount, cost or expense. In addition, Inland hereby
agrees to be bound by the provisions of Sections 1.1, 8.7, 8.8, 8.9 and 8.10
above. Notices by Holding Company to Inland shall be deemed properly given if
addressed to Inland, care of Inland in accordance with the provisions of Section
8.6 above. Inland also agrees that in the event the Xxxxxxx Money Note is
wrongfully or negligently delivered to Inland by Escrowee or by a Court, upon
the request of Holding Company, Inland shall issue and deliver to Holding
Company a replacement Xxxxxxx Money Note, payable to the order of Holding
Company, that is in the same form, dated as of the same date and in the same
amount as the original Xxxxxxx Money Note, Inland has executed this Agreement
under seal as of the date first above written.
WITNESS/ATTEST: INLAND WESTERN RETAIL REAL ESTATE
TRUST, INC, a Maryland corporation
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (Seal)
-------------------- ------------------------------------
Name: [ILLEGIBLE]
----------------------------------
As Its: Authorized Person
--------------------------------
38
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement,
under seal, as of the date first above written.
WITNESS/ATTEST: HOLDING COMPANY:
THE CAPITAL CENTRE INVESTORS, LLC, a
Maryland limited liability company
By: /s/ Xxxxx X. Xxxxxxxx (SEAL)
-------------------- ------------------------------------
Xxxxx X. Xxxxxxxx, Authorized Person
INLAND AFFILIATE:
THE INLAND COMPANY LLC, a Delaware
limited liability company,
By: Inland Western Retail Real Estate Trust, Inc.,
a Maryland corporation, its sole member
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
-------------------- ------------------------------------
Name: [ILLEGIBLE]
----------------------------------
As Its: Authorized Person
-----------------------------
CHICAGO TITLE INSURANCE COMPANY, a Missouri corporation, for good and
valuable consideration , the receipt and adequacy of which it hereby
acknowledges, executes this Contribution Agreement under seal as of the date
first above written, to acknowledge its receipt of an original copy of this
Agreement as executed by Holding Company, and Inland Affiliate and to
acknowledge its agreement to act as Escrowee in accordance with the terms and
conditions set forth in Section 1.1 hereof and to comply with the provisions of
Section 1.5 hereof.
WITNESS/ATTEST ESCROWEE:
CHICAGO TITLE INSURANCE
COMPANY, a Missouri corporation,
/s/ [ILLEGIBLE] By: /s/ Xxxxx X. Xxxxxx (SEAL)
-------------------- ------------------------------------
Name: XXXXX X. XXXXXX
----------------------------------
Title: AVP
---------------------------------------
37
CONTRIBUTION AGREEMENT
CAPITAL CENTRE
EXHIBIT A
LEGAL DESCRIPTION
CAPITAL CENTRE
PROPERTY DESCRIPTIONS
METES AND BOUNDS DESCRIPTION
XXX 0 XXXXXXX XXXXXX
XXXX BOOK REP 000 XXXXX 00
XXXXXXX XXXXXXXXX XX XXXXXX XXXXXX'X XXXXXX
LIBER 14243 FOLIO 187
KENT NO. 13 ELECTION DISTRICT
PRINCE GEORGE'S COUNTY, MARYLAND
BEGINNING AT A POINT IN THE EASTERLY RIGHT-OF-WAY LIMITS OF CAPITAL
BELTWAY, INTERSTATE ROUTE 95 (A VARIABLE WIDTH RIGHT-OF-WAY), 150.00 FEET
EASTERLY OF AND PERPENDICULAR TO BASELINE STATION 823+98.37, THENCE RUNNING
WITH THE EASTERLY RIGHT-OF-WAY LIMITS OF SAID CAPITAL BELTWAY, INTERSTATE
ROUTE 95, THE FOLLOWING SIX COURSES AND DISTANCES;
1. 1569.32 FEET ALONG THE ARC OF A CURVE TO THE RIGHT, HAVING A RADIUS OF
3,669.72 FEET, A CHORD BERING AND DISTANCE OF NORTH 04 DEGREES - 32 MINUTES
- 12 SECONDS WEST, 1,557.39 FEET TO A POINT, THENCE;
2. CONTINUING NORTH 27 DEGREES - 18 MINUTES - 00 SECONDS EAST, 177.18 FEET TO
A POINT, THENCE;
3. CONTINUING NORTH 14 DEGREES - 5.9 MINUTES - 19 SECONDS EAST, 153.49 FEET TO
A POINT, THENCE;
4. CONTINUING NORTH 24 DEGREES - 11 MINUTES - 09 SECONDS EAST, 237.78 FEET TO
A POINT, THENCE;
5. CONTINUING NORTH 33 DEGREES - 30 MINUTES - 48 SECONDS EAST, 351.74 FEET TO
A POINT, THENCE;
6. CONTINUING NORTH 67 DEGREES - 00 MINUTES - 23 SECONDS EAST, 131.26 FEET TO
A POINT MARKING THE INTERSECTION OF THE EASTERLY RIGHT-OF-WAY LIMITS OF
SAID CAPITAL BELTWAY, INTERSTATE ROUTE 95 WITH THE SOUTHERLY RIGHT-OF-WAY
LIMITS OF ARENA DRIVE (A VARIABLE WIDTH RIGHT-OF-WAY), THENCE WITH THE
SOUTHERLY RIGHT-OF-WAY LIMITS OF SAID ARENA DRIVE, THE FOLLOWING SIX
COURSES AND DISTANCES;
7. SOUTH 64 DEGREES - 46 MINUTES - 55 SECONDS EAST, 100.88 FEET TO A POINT,
THENCE;
8. CONTINUING SOUTH 50 DEGREES - 40 MINUTES - 30 SECONDS EAST, 96.97 FEET TO A
POINT, THENCE;
9. CONTINUING SOUTH 40 DEGREES - 48 MINUTES - 09 SECONDS EAST, 200.00 FEET TO
A POINT, THENCE;
10. CONTINUING SOUTH 47 DEGREES - 04 MINUTES - 47 SECONDS EAST, 100.60 FEET TO
A POINT, THENCE;
11. CONTINUING SOUTH 40 DEGREES - 48 MINUTES - 09 SECONDS EAST, 70.13 FEET TO A
POINT OF CURVATURE, THENCE;
1
12. CONTINUING 384.22 FEET ALONG THE ARC OF A CURVE TO THE LEFT, HAVING A
RADIUS OF 829.29 FEET, A CHORD BEARING AND DISTANCE OF SOUTH 54 DEGREES -
04 MINUTES - 31 SECONDS EAST, 380.79 FEET TO A POINT MARKING THE
INTERSECTION OF THE SOUTHERLY RIGHT-OF-WAY LIMITS OF SAID ARENA DRIVE WITH
THE DIVISION LINE BETWEEN THE LANDS OF XXXXXX X. XXXXXXXXX, TRUSTEE (LIBER
7692 FOLIO 634), ON THE EAST AND SAID XXX 0, XXXXXXX XXXXXX, XX XXX XXXX,
THENCE WITH SAID DIVISION LINE;
13. SOUTH 35 DEGREES - 20 MINUTES - 53 SECONDS EAST, 1,213.95 FEET TO A POINT
MARKING THE INTERSECTION OF THE DIVISION LINE BETWEEN THE LANDS OF
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY (LIBER 15518 FOLIO 695), ON
THE SOUTH AND SAID XXX 0, XXXXXXX XXXXXX, XX XXX XXXXX, THENCE WITH SAID
DIVISION LINE;
14. SOUTH 61 DEGREES - 30 MINUTES - 52 SECONDS WEST, 39.50 FEET TO A POINT,
THENCE CONTINUING WITH SAID DIVISION LINE AND THE DIVISION LINE BETWEEN
XXXXX X. XXXXXX DRIVE (PLAT BOOK NLP 104 PLAT NO. 28), AND THE LANDS OF
PARCEL A, LARGO CENTER WEST (PLAT BOOK NLP 115 PLAT NO. 35), ON THE SOUTH
AND SAID XXX 0, XXXXXXX XXXXXX, XX XXX XXXXX, THENCE;
15. SOUTH 60 DEGREES - 36 MINUTES - 52 WEST, 1,880.84 FEET TO A POINT MARKING
THE INTERSECTION OF SAID DIVISION LINE WITH THE DIVISION LINE BETWEEN SAID
PARCEL X, XXXXX XXXXXX XXXX, XX THE WEST AND SAID XXX 0, XXXXXXX XXXXXX,
XX XXX XXXX, THENCE WITH SAID DIVISION LINE;
16. SOUTH 04 DEGREES - 23 MINUTES - 08 SECONDS EAST, 578.15 FEET TO A POINT
MARKING THE INTERSECTION OF SAID DIVISION LINE, WITH THE EASTERLY
RIGHT-OF-WAY LIMITS OF SAID CAPITAL BELTWAY, IN TERSTATE ROUTE 95, THENCE
WITH THE EASTERLY RIGHT-OF-WAY LIMITS OF SAID CAPITAL BELTWAY, INTERSTATE
ROUTE 95;
17. NORTH 16 DEGREES - 47 MINUTES - 16 SECONDS WEST, 720.23 FEET TO THE PLACE
OF BEGINNING.
CONTAINING 3,020,251 SQUARE FEET OR 69.3354 ACRES, MORE OR LESS
THE PROPERTY IS SUBJECT TO RESTRICTIONS, COVENANTS AND/OR EASEMENTS, AS
CONTAINED IN A TITLE COMMITMENT REPORT PREPARED BY FIRST AMERICAN TITLE
INSURANCE COMPANY, COMMITMENT NUMBER MX-1580 WITH AN EFFECTIVE DATE OF
AUGUST 31, 2003.
2
CONTRIBUTION AGREEMENT
CAPITAL CENTRE
EXHIBIT B
THE PROPERTY SERVES AS COLLATERAL, FOR THE LOAN DESCRIBED ON EXHIBIT "B" (THE
"EXISTING LOAN").
Loan in the amount up to $64,000,000.00 evidenced by that certain First Amended
and Restated Promissory Note, dated as of April 13, 2004, from Capital Centre
Funding LLC to SouthTrust Bank in an amount up to $32,000,000.00 and that
certain First Amended and Restated Promissory Note dated as of April 13, 2004 in
an amount up to $32,000,000.00, from Capital Centre LLC to Keybank National
Association and secured by an Indemnity Leasehold Deed of Trust, Assignment of
Rents, Security Agreement and Fixture Filing, as amended by that certain First
Amendment to Indemnity Deed of Trust, Assignment of Rents, Security Agreement
and Fixture Filing made by Capital Centre LLC to Xxx Xxxxxxx, as Trustee, for
the benefit of SouthTrust Bank, and recorded among the Land Records of Prince
George's County, Maryland in Liber ________, folio _________ ET. SEQ.
AS OF July 1, 2004: The current outstanding principal balance of the Capital
Centre loan is $48,895,627.97
AFFIRMATION
The undersigned, for good an valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, hereby affirms, ratifies, assumes
and undertakes all rights, duties, obligations and undertakings of The Inland
Company as set forth in that certain Contribution Agreement dated July 21, 2004
by and between The Inland Company and Capital Centre Investors, LLC, including
but not limited to, all representations, warranties, covenants and obligations
of The Inland Company set forth therein, and agrees to take all actions of, and
execute all documents otherwise required of, The Inland Company, in connection
with the closing of the Contribution Agreement.
INLAND CAPITAL HC, L.L.C.,
A Delaware limited liability company
By: Inland Western Retail Real
Estate Trust, Inc., sole member
By: /s/ Xxxxxxx Xxxxxx
----------------------------
Name: Xxxxxxx Xxxxxx
--------------------------
Title: Asst. Secretary
-------------------------
Date: September 8, 2004
================================================================================
CAPITAL CENTRE HOLDING LLC
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
-----------------------------
DATED AS OF SEPTEMBER 8, 2004
-----------------------------
================================================================================
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
TABLE OF CONTENTS
ARTICLE I DEFINED TERMS....................................................................2
ARTICLE II CONTINUATION; NAME; PRINCIPAL OFFICE; PURPOSE; TERM.............................12
SECTION 2.1. Continuation...............................................................12
SECTION 2.2. Name, Registered Office, and Resident Agent; Principal
Place of Business........................................................13
SECTION 2.3. Purpose....................................................................13
SECTION 2.4. Term.......................................................................14
SECTION 2.5. Classification of the Company for Tax Purposes.............................14
SECTION 2.6. Liability of the Members...................................................15
SECTION 2.7. Ownership and Waiver of Partition and Valuation............................15
SECTION 2.8. Waiver of Right to Judicial Dissolution....................................15
ARTICLE III MEMBERS; COMPANY CAPITAL; PERCENTAGE INTERESTS..................................16
SECTION 3.1. Members....................................................................16
SECTION 3.2. Initial Capital Contributions..............................................16
SECTION 3.3. Additional Capital Contributions...........................................17
SECTION 3.4. Funding of Additional Cash Requirements....................................18
SECTION 3.5. Loans......................................................................19
SECTION 3.6. No Third Party Beneficiaries...............................................19
SECTION 3.7. Capital Accounts...........................................................20
SECTION 3.8. Return of Capital..........................................................20
ARTICLE IV DISTRIBUTIONS; PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT OF EXISTING DEBT....21
SECTION 4.1. Payments to Withdrawing Member and Repayment of Existing Debt..............21
SECTION 4.2. Distributions of Net Cash Flow.............................................22
SECTION 4.3. Net Proceeds of a Capital Transaction......................................22
SECTION 4.4 Net Proceeds of a Financing................................................23
SECTION 4.5. Other Distribution Rules...................................................23
SECTION 4.6. Withholding................................................................24
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ARTICLE V ALLOCATION OF PROFITS AND LOSSES................................................25
SECTION 5.1. Profits and Losses.........................................................25
SECTION 5.2. Regulatory and Special Allocations.........................................27
SECTION 5.3. Other Allocation Rules.....................................................27
SECTION 5.4. Tax Allocations: Code Section 704(c).......................................27
ARTICLE VI GOVERNANCE AND ADMINISTRATIVE PROVISIONS........................................28
SECTION 6.1. Management of Business and Affairs.........................................28
SECTION 6.2. Delegation of Authority Regarding Specific Matters.........................33
SECTION 6.3. Duties and Conflicts.......................................................36
SECTION 6.4. Reserve Accounts...........................................................37
SECTION 6.5 Acquisition of Additional Properties.......................................38
SECTION 6.6 Compliance with Certain Requirements.......................................40
SECTION 6.7 Exculpation and Indemnification............................................41
ARTICLE VII BOOKS AND RECORDS; RESERVES.....................................................42
SECTION 7.1. Bank Accounts..............................................................42
SECTION 7.2. Books of Account...........................................................42
SECTION 7.3. Operating Statements.......................................................43
SECTION 7.4. The Accountant.............................................................44
SECTION 7.5. Tax Matters Member.........................................................45
ARTICLE VIII TRANSFER OF LLC INTERESTS.......................................................47
SECTION 8.1. No Transfer................................................................47
SECTION 8.2. Permitted Transfers........................................................48
SECTION 8.3. Succession by Operation of Law.............................................48
SECTION 8.4. Additional Restrictions on Transfers.......................................49
ARTICLE IX DISSOLUTION AND TERMINATION OF THE COMPANY......................................49
SECTION 9.1. Dissolution................................................................49
SECTION 9.2. Termination................................................................49
SECTION 9.3. Liquidating Member.........................................................50
SECTION 9.4 Termination Rights.........................................................50
SECTION 9.5. Closing....................................................................51
SECTION 9.6. Purchase Price on Redemption of Cordish LLC Interests......................52
ARTICLE X MISCELLANEOUS...................................................................53
SECTION 10.1. Further Assurances.........................................................53
SECTION 10.2. Notices....................................................................53
SECTION 10.3. Independent Representation.................................................55
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SECTION 10.4. Governing Law..............................................................55
SECTION 10.5. Captions...................................................................55
SECTION 10.6. Pronouns...................................................................55
SECTION 10.7. Successors and Assigns.....................................................55
SECTION 10.8. Extension Not a Waiver.....................................................55
SECTION 10.9. Construction...............................................................56
SECTION 10.10. Severability...............................................................56
SECTION 10.11. Consents...................................................................56
SECTION 10.12. Entire Agreement...........................................................56
SECTION 10.13. Rules of Construction......................................................56
SECTION 10.14. Counterparts...............................................................57
SECTION 10.15. Expenses...................................................................57
SECTION 10.16. Arbitration................................................................57
SECTION 10.17. General Indemnity/Liability................................................58
SCHEDULES
Schedule A List of Members
Schedule 5.2 Regulatory and Special Allocations
EXHIBITS
Exhibit A Description of Existing Property and Owner Entity
Exhibit B Approved Financing of Properties
Exhibit C Form of REIT Declaration of Trust
Exhibit D Form of Promissory Note
Exhibit E Calculations Exhibit
SCHEDULES
Schedule A List of Members
Schedule 5.2 Regulatory and Special Allocations
EXHIBITS
Exhibit A Description of Existing Property and Owner Entity
Exhibit B Approved Financing of Properties
Exhibit C Form of REIT Declaration of Trust
Exhibit D Form of Promissory Note
Exhibit E Calculations Exhibit
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AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
THIS AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT (this
"AGREEMENT") dated as of September 8, 2004 is made by and between CC INVESTORS
LLC, a Maryland limited liability company (collectively "CORDISH"), and INLAND
CAPITAL HC, L.L.C, a Delaware limited liability company ("INLAND").
PRELIMINARY STATEMENTS
The Capital Centre Investors, LLC (the "COMPANY") was reorganized as a
limited liability company under the Delaware Limited Liability Company Act
pursuant to the filing of a Certificate of Formation of the Company on September
1, 2004 and an Agreement and Certificate of Merger with the Office of the
Secretary of State of the State of Delaware and a Limited Liability Company
Agreement dated September 1, 2004 (the "ORIGINAL AGREEMENT"). In connection with
such reorganization, the Company changed its name to "Capital Centre Holding
LLC."
The Company is a 40% member of Capital Centre, LLC, a Maryland limited
liability company (the "OWNER ENTITY") which owns and operates Xxx Xxxxxxxxx xx
Xxxxxxx Xxxxxx, Xxxxxx Xxxxxx'x Xxxxxx, Xxxxxxxx (the "EXISTING PROPERTY").
Pursuant to the terms of a Contribution Agreement dated July 21, 0000,
Xxxxxx has agreed to make certain cash contributions to the Company in exchange
for a membership interest in the Company. In connection with the investment by
Inland in the Company, the Company shall contribute certain funds to the Owner
Entity and the membership interest of the Withdrawing Member in the Owner Entity
shall be purchased and redeemed by the Owner Entity in accordance with the terms
hereof so that immediately after the admission of Inland and the closing under
the Contribution Agreement, the Company shall own one hundred percent (100%) of
the membership interests in the Owner Entity.
Immediately prior to the date hereof, the sole members of the Company
were Cordish Enterprises, LLLP, The Cordish Family I, LLC, Xxxxx X. Xxxxxxxx,
Xxxxxx X. Xxxxxxxx and Xxxxxx Family Investments, LLC(collectively, the
"ORIGINAL MEMBERS"). Pursuant to the terms of an Assignment and Contribution of
Membership Interest Agreement, effective as of the date hereof, each of the
Original Members has assigned and contributed its entire membership interest in
the Company to Cordish and has withdrawn as a Member of the Company, so that
effective immediately following the admission of Inland as a Member of the
Company under the terms of the Contribution Agreement and this Agreement, the
sole Members of the Company shall be Inland and Cordish.
The parties hereto now desire to enter into this Amended and Restated
Limited Liability Company Agreement in order to (i) reflect the withdrawal of
the Original Members as Members of the Company, (ii) reflect the admission of
Cordish and Inland as Members of the Company and (iii) establish the manner in
which the business and affairs of the Company shall be managed
and to determine the respective rights, duties and obligations of the Members
with respect to the Company and each other.
NOW THEREFORE, the parties hereto, in consideration of the foregoing
premises and the mutual covenants and agreements contained herein, hereby agree
as follows:
ARTICLE I
DEFINED TERMS
The following terms shall have the following meanings when used herein:
ADDITIONAL CAPITAL CONTRIBUTIONS: The Capital Contributions made by a
Member, if any, to fund the acquisition and/or ownership by the Company,
directly or indirectly, of a Property.
ADDITIONAL PROPERTY: Each direct or indirect ownership interest which
the Company acquires in a property in accordance with the terms of Section 6.5
hereof, together with all related assets and properties, whether, real, personal
or mixed, tangible or intangible, used in connection therewith. Subject to the
terms of Section 6.2.D hereof, an Additional Property may include an equity
interest in an entity that owns a property, including, but not limited to, an
equity interest in an Affiliate of a Member. The Existing Property shall not
constitute an Additional Property. Each Additional Property shall be acquired
and owned in a separate Additional Property Owner Entity.
ADDITIONAL PROPERTY OWNER ENTITY: Each of the limited liability
companies that is the owner of an Additional Property. Each Additional Property
Owner Entity shall be wholly-owned by the Company.
ADJUSTED CAPITAL ACCOUNT DEFICIT: With respect to any Member, the
deficit balance, if any, in such Member's Capital Account as of the end of the
relevant Allocation Year, after giving effect to the following adjustments: (i)
credit to such Capital Account any amount that such Member is obligated to
restore pursuant to any provision of this Agreement, is otherwise treated as
being obligated to restore under Treasury Regulation Section
1.704-1(b)(2)(ii)(c), or is deemed to be obligated to restore pursuant to the
penultimate sentences of Treasury Regulation Sections 1.704-2(g)(1) and
1.704-2(i)(5); and (ii) debit to such Capital Account the items described in
Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). The
foregoing definition of Adjusted Capital Account Deficit is intended to comply
with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted consistently therewith.
ADJUSTED CAPITAL BALANCE: With respect to (a) Inland, an amount equal to
$130,050,000, less the amount of all distributions made to Inland pursuant to
the provisions of Sections 4.3(iv) and 4.4(ii) and (b) Cordish, the amount set
forth opposite Cordish's name on Schedule A attached hereto, (i) less the
amount of all distributions made to Cordish pursuant to Sections 4.3(ii) and
4.4(iv), and (ii) increased from time to time in accordance with the provisions
of Section 3.2.B hereof.
ADDITIONAL PROPERTY OWNER ENTITY AGREEMENT: The Operating Agreement of
each Additional Property Owner Entity, as the same may be amended or modified
from time to time.
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AFFILIATE: With respect to any Person, (i) any Person directly or
indirectly controlled by, controlling or under common control with such Person,
(ii) any officer, director, general partner or manager of such Person, or (iii)
any Person which owns, directly or indirectly, ten percent (10%) or more of any
class of voting securities of such Person or which exercises control over the
management of such Person. For the purposes of this Agreement, "control" when
used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities or other beneficial interests, by contract or
otherwise; and the term "controls", "controlling" and "controlled" have the
meanings correlative to the foregoing.
ALLOCATION YEAR: Means (i) the period commencing on the Closing Date and
ending on December 31, 2004, (ii) any subsequent period commencing on January 1
and ending on the following December 31, or (iii) any portion of the period
described in clause (ii) for which the Company is required to allocate Profits,
Losses and other items of Company income, gain, loss or deduction pursuant to
Article V.
APPROVED FINANCING: Means any financing or refinancing of a Property on
the terms set forth on EXHIBIT B hereto.
BUSINESS DAY: Any day other than Saturday, Sunday or any other day on
which commercial banks or savings and loan associations are required or
authorized by law to close in New York City.
CAPITAL ACCOUNT. The Capital Account maintained for each Member pursuant
to Section 3.7.
CAPITAL CONTRIBUTION: With respect to any Member, the amount of money
and the initial Gross Asset Value of any property contributed by or credited to
such Member, to the Company (net of any liabilities secured by such property or
to which such property is otherwise subject, determined taking into account Code
Section 752(c) and the Treasury Regulations thereunder, and any other applicable
provisions of the Code and the Regulations).
CAPITAL EXPENDITURES: For any period, the amount expended for items
capitalized under generally accepted accounting principles, consistently
applied, except for such items as are otherwise classified under this Agreement.
CAPITAL TRANSACTION: Any of the following: (a) a sale, exchange,
transfer, assignment or other disposition of all or a portion of any Company
Asset other than tangible personal property that is not sold or transferred in
connection with the sale or transfer of real property or a leasehold interest in
real property; (b) any condemnation or deeding in lieu of condemnation of all or
a portion of any Company Asset; (c) any fire or other casualty to the Property
or any other Company Asset; and (d) the financing or refinancing of any
Additional Property.
CASH SHORTFALL: For any period and, to the extent applicable, with
respect to the Owner Entity and each Additional Property Owner Entity, the
excess, if any, of (a) Operating Expenses over (b) Gross Receipts (determined,
to the extent applicable, for each of the Company, the Owner Entity and each
Additional Property Owner Entity).
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CASH SHORTFALL LOAN: A loan made by a Member (or Affiliate or other
Person designated by a Member) to the Owner Entity or an Additional Property
Owner Entity pursuant to Section 3.4.A or 3.4.B hereof, on the terms set forth
in Section 3.4.C and Section 3.4.E hereof.
CERTIFICATE: The Certificate of Formation for the Company filed with the
Secretary of State, pursuant to Section 18-201 of the LLC Act, as the same may
be amended and restated from time to time.
CLOSING DATE: Means the date of this Agreement.
CODE: The Internal Revenue Code of 1986, as amended, or any
corresponding provision or provisions of prior or succeeding law.
COMPANY: The Capital Centre Investors, LLC, which has been renamed and
reorganized as Capital Centre Holding LLC, a limited liability company formed
under the laws of the State of Delaware, and any successor limited liability
company.
COMPANY ASSET: Any of the assets and property, whether tangible or
intangible and whether real, personal, or mixed, at any time owned by or held
for the benefit of the Company or any Owner Entity or Additional Property Owner
Entity and all membership or beneficial interests in each Owner Entity and
Additional Property Owner Entity.
COMPANY MINIMUM GAIN: Has the meaning given to the term "partnership
minimum gain" set forth in Treasury Regulations Section 1.704-2(d).
CONSTRUCTION COMPLETION RESERVE: The reserve established and maintained
by the Company in accordance with Section 6.4.B hereof.
CONTRIBUTION AGREEMENT: The Contribution Agreement between the Company
and Inland, dated July 21, 2004, as amended through the date hereof.
CORDISH: CC Investors LLC, a Maryland limited liability company.
CORDISH LLC INTEREST (OR LLC INTEREST OF CORDISH): The entire LLC
Interest in the Company held directly or indirectly by Cordish, any Cordish
Affiliate and any and all successors and permitted assignees of Cordish and/or
any Cordish Affiliate.
CORDISH PREFERRED RETURN: A per annum rate equal to 6.0% per annum on
Cordish's Adjusted Capital Balance as adjusted from time to time, provided,
however, that such rate shall be pro rated for each Fiscal Year of the Company
which is less than twelve (12) full months.
DECLARATION OF TRUST: is defined in section 6.2.D and set forth in
EXHIBIT C.
DEFAULT LOAN: A loan defined herein as a "Default Loan" pursuant to
Sections 3.4.A, 3.4.B and/or 6.5.F.
DEPRECIATION: For each Allocation Year, an amount equal to the
depreciation, amortization, or other cost recovery deduction allowable with
respect to an asset for such
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Allocation Year, except that if the Gross Asset Value of an asset differs from
its adjusted basis for federal income tax purposes at the beginning of such
Allocation Year, Depreciation shall be an amount which bears the same ratio to
such beginning Gross Asset Value as the federal income tax depreciation,
amortization, or other cost recovery deduction for such Allocation Year bears to
such beginning adjusted tax basis. If any asset shall have a zero adjusted basis
for federal income tax purposes, Depreciation shall be determined utilizing any
reasonable method selected by Cordish and the Manager.
DEVELOPMENT PLAN: With respect to any Additional Property a plan
prepared by Cordish and submitted to Inland setting forth the overall plan for
the acquisition and development or redevelopment of an Additional Property,
including the following items, as applicable: purchase price for the Additional
Property, environmental studies, conceptual plans, leasing plan, a development
budget, material terms of anticipated project financing and such other material
information respecting the acquisition, development or redevelopment of such
Additional Property as determined by Cordish.
80% OWNED AFFILIATE: With respect to any Person, an Affiliate of such
Person 80% or more of the capital stock (or its equivalent in the case of
Persons other than corporations) of which is owned beneficially by such Person
directly, or indirectly through one or more 80% Owned Affiliates, or by a Person
who, directly or indirectly, owns beneficially 80% or more of the equity
interest (or its equivalent in the case of Persons other than corporations) of
such Person; provided that, for purposes of determining the ownership of the
equity interests of any Person, DE MINIMIS amounts of stock held by directors,
nominees and similar Persons pursuant to statutory or regulatory requirements
shall not be taken into account.
ESCROW AGREEMENT: means that certain Escrow Agreement executed
concurrently herewith, by and among Cordish, the Owner Entity, and Chicago Title
Insurance Company, as escrowee.
EVENT OF BANKRUPTCY: With respect to any Member, if such Member (i)
makes an assignment for the benefit of creditors, (ii) files a voluntary
petition in bankruptcy, (iii) is adjudged a bankrupt or insolvent, or has
entered against it an order for relief, in any bankruptcy or insolvency
proceeding, (iv) files a petition or answer seeking for itself any
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under any statute, law or regulation, (v) files an answer or
other pleading admitting or failing to contest the material allegations of a
petition filed against it in any proceeding of this nature, (vi) seeks, consents
to or acquiesces in the appointment of a trustee, receiver or liquidator of the
Member or of all or any substantial part of its properties, or (vii) 120 days
after the commencement of any proceeding against the Member seeking
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under any statute, law or regulation, if the proceeding has
not been dismissed, or if within 90 days after the appointment without such
Member's consent or acquiescence of a trustee, receiver or liquidator of such
Member or of all or any substantial part of its properties, the appointment is
not vacated or stayed, or within 90 days after the expiration of any such stay,
the appointment is not vacated. With respect to a Member, the foregoing
definition of "Event of Bankruptcy" is intended to replace and shall supersede
and replace the definition of "Bankruptcy" set forth in Sections 18-101(1) and
18-304 of the LLC Act.
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EXISTING PROPERTY: Boulevard at Capital Centre, Prince George's County,
Maryland, as further described on EXHIBIT A.
FISCAL YEAR: Means (i) the period commencing on the date hereof and
ending on December 31, 2004, and (ii) any subsequent period commencing on
January 1 and ending on the earlier to occur of (A) the following December 31,
or (B) the date on which all Company Assets are distributed pursuant to Section
9.2 and the Certificate has been cancelled pursuant to the Act.
GROSS ASSET VALUE: With respect to any asset, the asset's adjusted basis
for federal income tax purposes, except as follows:
(a) The initial Gross Asset Value of any asset contributed
by or credited to a Member to the Company shall be the gross fair market
value of such asset, as determined by the Manager;
(b) The Gross Asset Values of all Company Assets shall be
adjusted to equal their respective gross fair market values, as
determined by the Manager, as of the following times: (i) the
acquisition of an interest or an additional interest in the Company by
any new or existing Member in exchange for more than a de minimis
Capital Contribution; (ii) the distribution by the Company to a Member
of more than a de minimis amount of property or money as consideration
for an interest in the Company; (iii) the liquidation of the Company
within the meaning of Treasury Regulations Section 1.704-l(b)(2)(ii)(g);
and (iv) whenever otherwise permitted under Treasury Regulations Section
1.704-1(b)(2)(iv)(f); provided, however, that adjustments pursuant to
clause (i) above shall be made only if the Manager determines that such
adjustments are necessary or appropriate to reflect the relative
economic interests of the Members;
(c) The Gross Asset Value of any Company Asset distributed
to a Member shall be the gross fair market value of such asset on the
date of distribution as determined in accordance with the provisions
hereof;
(d) The Gross Asset Values of Company Assets shall be
increased (or decreased) to reflect any adjustments to the adjusted
basis of such assets pursuant to Code Section 734(b) or Code Section
743(b), but only to the extent that such adjustments are taken into
account in determining Capital Accounts pursuant to Treasury Regulations
Section 1.704-1(b)(2)(iv)(m) and subparagraph (vi) of the definition of
Profit and Losses; PROVIDED, HOWEVER, that Gross Asset Values shall not
be adjusted pursuant to this paragraph (d) to the extent the Manager
determines that an adjustment pursuant to paragraph (b) hereof is
necessary or appropriate in connection with a transaction that would
otherwise result in an adjustment pursuant to this paragraph (d); and
(e) If the Gross Asset Value of an asset has been determined
or adjusted pursuant to paragraphs (a), (b), or (d), such Gross Asset
Value shall thereafter be adjusted by the Depreciation taken into
account with respect to such asset for purposes of computing Profits and
Losses.
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(f) The Members agree that, as of the date hereof, the Gross
Asset Value of the Existing Property is $130,050,000.
GROSS RECEIPTS: For any period and with respect to each Property, all
cash receipts and revenues of the Company and the associated Owner Entity or
Additional Property Owner Entity, as applicable, of any kind calculated on a
cash basis (other than distributions received by the Company from any of the
Owner Entity or Additional Property Owner Entity, as applicable), including,
without duplication (i) all Rents received by such Owner Entity or Additional
Property Owner Entity, as applicable, (ii) all payments received by such Owner
Entity or Additional Property Owner Entity, as applicable, from the operators of
any licensed facilities or concessions, (iii) all other forms of rent, revenue,
income, proceeds, royalties, profits and other benefits paid to such Owner
Entity or Additional Property Owner Entity, as applicable, from using, leasing,
licensing, processing, operating from or in, or otherwise enjoying all or any
portion of the Property (including, but not limited to, any amounts released to
the Company pursuant to the terms of the Escrow Agreement which are not
deposited in the Operations Reserve), (iv) all payments under business
interruption insurance policies or proceeds payable under any policy of
insurance covering loss of Rents, (v) any utility or other deposits returned to
such Owner Entity or Additional Property Owner Entity, as applicable, or other
refunds accruing to such Owner Entity or Additional Property Owner Entity, as
applicable, (vi) any interest earned on security deposits held by such Owner
Entity or Additional Property Owner Entity, as applicable, to the extent
retained by such Owner Entity or Additional Property Owner Entity, as
applicable, and interest earned on operating and other accounts of such Owner
Entity or Additional Property Owner Entity, as applicable, (vii) all amounts
received by such Owner Entity or Additional Property Owner Entity, as
applicable, from tenants at the Property in connection with the surrender of
such tenant's lease and (viii) all refunds, rebates and other recoveries of
items previously charged as Operating Expenses, but excluding, (a) Capital
Contributions to such Owner Entity or Additional Property Owner Entity, as
applicable, or the Company, (b) Net Proceeds of a Capital Transaction and Net
Proceeds of a Financing with respect to such Owner Entity or Additional Property
Owner Entity, as applicable, or the Company, (c) sums held by such Owner Entity
or Additional Property Owner Entity, as applicable, as security deposits under
leases for space at the Property unless and until applied to the satisfaction of
tenants' obligations under such leases (to the extent permitted under applicable
leases and law) and (d) non-cash charges accruing to the Company or such Owner
Entity or Additional Property Owner Entity, as applicable, in the nature of
depreciation and amortization of the Property.
IMPOSITIONS: With respect to any Property, all taxes (including sales
and use taxes), assessments (including all assessments for public improvements
or benefits, whether or not commenced or completed prior to the date hereof),
water, sewer or other rents, rates and charges, excises, levies, license fees,
permit fees, inspection fees and other authorization fees and other charges, in
each case whether general or special, ordinary or extraordinary, of every
character (including all interest and penalties thereon), which at any time may
be assessed, levied, confirmed or imposed by any governmental or
quasi-governmental authority having jurisdiction over the Property on or in
respect of or be a lien upon (i) the Property or any estate or interest therein,
(ii) any occupancy, use or possession of, or activity conducted on, the
Property, or (iii) the Rents from the Property or the use or occupancy thereof.
- 7 -
INDEMNIFICATION AGREEMENT: That certain Indemnification and Guaranty
Agreement, dated as of the date hereof, by and between Xxxxx X. Xxxxxxx,
Cordish, Inland Western Retail Real Estate Trust, Inc. and Inland.
INITIAL CAPITAL CONTRIBUTION: The Capital Contribution made by Inland as
set forth in Section 3.2.A.
INLAND PREFERRED RETURN: A per annum rate equal to 18% per annum on
Inland's Adjusted Capital Balance as adjusted from time to time, provided,
however, that such rate shall be pro rated for each Fiscal Year of the Company
which is less than twelve (12) full months.
LIQUIDITY ESCROW AGREEMENT: Means that certain Liquidity Amount Escrow
Agreement executed concurrently herewith, by and among Cordish, the Owner Entity
and Chicago Title Insurance Company, as escrowee.
LLC INTEREST: As to any Member, all of the interest of that Member in
the Company including, without limitation, such Member's (i) right to a
distributive share of the Profits and Losses and cash flow of the Company, (ii)
right to a distributive share of Company Assets and (iii) right to participate
in the management of the business and affairs of the Company, as provided in
this Agreement.
MANAGER: Means the Person in whom the management of the Company is
vested to the extent so provided in this Agreement. The Manager must be a Member
of the Company. The Manager is Inland.
MEMBER: At any time, any Person admitted and remaining as a member of
the Company pursuant to the terms of this Agreement. As of the date of this
Agreement, the Members of the Company are Cordish and Inland.
MEMBER NONRECOURSE DEBT: Has the meaning given to the term "partner
nonrecourse debt" set forth in Treasury Regulations Section 1.704-2(b)(4).
MEMBER NONRECOURSE DEBT MINIMUM GAIN: An amount, with respect to each
Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if
such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined
in accordance with Treasury Regulations Section 1.704-2(i)(2) and (3).
MEMBER NONRECOURSE DEDUCTIONS: Has the meaning given to the term
"partner nonrecourse deductions" set forth in Treasury Regulations Section
1.704-2(i)(2). For any Allocation Year, the amount of Member Nonrecourse
Deductions with respect to a Member Nonrecourse Debt equals the excess, if any,
of the net increase, if any, in the amount of the Member Nonrecourse Debt
Minimum Gain attributable to such Member Nonrecourse Debt over the aggregate
amount of any distributions during such Allocation Year to the Member that bears
the economic risk of loss for such Member Nonrecourse Debt to the extent such
distributions are from proceeds of such Member Nonrecourse Debt and are
allocable to an increase in Member Nonrecourse Debt Minimum Gain, determined
according to the provisions of Treasury Regulations Section 1.704-2(i)(2).
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NET CASH FLOW: For any period, the excess of (a) Gross Receipts plus any
amount, as reasonably determined by the Manager, taken out of any general
reserve account (other than the Operations Reserve which is governed by Section
6.4 hereof) established by the Company or any Owner Entity or Additional
Property Owner Entity, over (b) Operating Expenses plus any amount, as
reasonably determined by the Manager, added during such period to any such
general reserve account (other than from the Operations Reserve).
NET PROCEEDS OF A CAPITAL TRANSACTION: With respect to any Property,
Additional Property, Owner Entity or Additional Property Owner Entity, the net
cash proceeds from a Capital Transaction less any portion thereof used to (i)
establish reserves as reasonably determined by the Manager, (ii) repay any debts
or other obligations of the Company or the Owner Entity or Additional Property
Owner Entity, as applicable (including Cash Shortfall Loans and Development
Loans), or (iii) restore the Property following a casualty or condemnation. "Net
Proceeds of a Capital Transaction" shall INCLUDE all principal, interest and
other payments as and when received with respect to any note or other obligation
received by the Company, an Owner Entity or Additional Property Owner Entity, as
applicable in connection with a Capital Transaction.
NET PROCEEDS OF A FINANCING: With respect to the Existing Property, the
net cash proceeds from an Approved Financing (or otherwise with the consent of
the Members) less any portion thereof used to (i) establish reserves as
reasonably determined by the Manager, or (ii) repay any debts or other
obligations of the Owner Entity (including Cash Shortfall Loans to the Owner
Entity).
NONRECOURSE DEDUCTIONS: Has the meaning set forth in Treasury
Regulations Section 1.704-2(b)(1). The amount of Nonrecourse Deductions for an
Allocation Year equals the excess, if any, of the net increase, if any, in the
amount of Company Minimum Gain during that Allocation Year, over the aggregate
amount of any distributions during that Allocation Year of proceeds of a
Nonrecourse Liability that are allocable to an increase in Company Minimum Gain,
determined according to the provisions of Treasury Regulations Section
1.704-2(c).
NONRECOURSE LIABILITY: Has the meaning set forth in Treasury Regulations
Section 1.704-2(b)(3).
OPERATING EXPENSES: For any period and with respect to each Property,
all expenses incurred by the Company and/or the Owner Entity (or Additional
Property Owner Entity, as applicable) during such period, calculated on a cash
basis, including, without duplication (subject to the exclusions described
below): (i) current operating expenses and taxes incurred by an Owner Entity (or
Additional Property Owner Entity, as applicable) or the Company including
(without duplication) utility charges, costs of materials, normal repair and
maintenance costs, Impositions and other business taxes applicable to any
Property (except as excluded below), license fees, costs of complying with any
encumbrance upon any Property, premiums for insurance, fees of the Company's
counsel, the accounting fees, the costs of any audits and appraisals performed
by the Company and any other reasonable costs which are paid for by the Company,
(ii) the management fee and leasing commissions paid to a property manager by
any Owner Entity (or Additional Property Owner Entity, as applicable) pursuant
to a management agreement or leasing commission agreement, (iii) Capital
Expenditures incurred in accordance
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with the provisions hereof or as mandated by law or necessitated by an emergency
for improvements to space at any Property leased to tenants, inducements granted
to such tenants and leasing expenses (including leasing commissions)
(notwithstanding the foregoing, Capital Expenditures and other costs and
expenses incurred in connection with the acquisition, development,
redevelopment, improvement, construction and/or leasing of the Additional
Properties, or any of them, including costs for improvements to space at any
Additional Property leased to tenants and inducements granted to such tenants
shall not constitute Operating Expenses), and (iv) payments of fees, interest
and scheduled amortization of principal on any financing affecting the Property
or the Company Assets, but excluding without duplication: (A) expenditures paid
or to be paid from insurance proceeds or condemnation awards available for
restoration of a Property; (B) any non-cash charges from depreciation or
amortization of property; (C) any expenses or costs incurred in connection with
a Capital Transaction that would not have been incurred but for such Capital
Transaction; and (D) any payments on Cash Shortfall Loans and Development Loans.
OPERATIONS RESERVE: The reserve established and maintained by the
Company in accordance with Section 6.4.A hereof.
OWNER ENTITY: Capital Centre LLC, a Maryland limited liability company,
as identified on EXHIBIT A. The term "Owner Entity" shall also include any
borrowing entity formed and utilized by an Owner Entity in connection with an
Approved Financing as set forth on EXHIBIT B.
OWNER ENTITY AGREEMENT: The Operating Agreement of the Owner Entity, as
the same may be amended or modified from time to time.
PERCENTAGE INTEREST: As to any Member, the Percentage Interest of such
Member specified in Section 3.1.
PERSON: Any individual, corporation, partnership, limited liability
company, association, trust or other entity or organization.
PROFITS AND LOSSES: For any Allocation Year, the taxable income or loss
of the Company for federal income tax purposes for such Allocation Year, as
determined by the Accountant after consultation with the Members, in accordance
with Code Section 703(a) (for this purpose, all items of income, gain, loss or
deduction required to be separately stated pursuant to Code Section 703(a)(1)
shall be included in taxable income or loss), with the following adjustments:
(i) Any income of the Company that is exempt from federal
income tax and not otherwise taken into account in computing Profits or
Losses hereunder shall be added to such taxable income or loss;
(ii) Any expenditures of the Company described in Code
Section 705(a)(2)(B), or treated as Code Section 705(a)(2)(B)
expenditures pursuant to Treasury Regulations Section
1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing
Profits or Losses hereunder shall be subtracted from such taxable income
or loss.
(iii) In the event the Gross Asset Value of any Company asset
is adjusted pursuant to the provisions of this Agreement, the amount of
such adjustment shall be
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taken into account as gain or loss from the disposition of such asset
for purposes of computing Profits or Losses;
(iv) Gain or loss resulting from any disposition of property
with respect to which gain or loss is recognized for federal income tax
purposes shall be computed with reference to the Gross Asset Value of
the property disposed of, notwithstanding that the adjusted tax basis of
such property differs from its Gross Asset Value;
(v) In lieu of the depreciation, amortization and other cost
recovery deductions taken into account in computing such taxable income
or loss, there shall be taken into account Depreciation for such
Allocation Year;
(vi) To the extent an adjustment to the adjusted tax basis of
any Company asset pursuant to Code Section 734(b) is required pursuant
to Treasury Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into
account in determining Capital Accounts as a result of a distribution
other than in liquidation of a Member's LLC interest, the amount of such
adjustment shall be treated as an item of gain (if the adjustment
increases the basis of the asset) or loss (if the adjustment decreases
the basis of the asset) from the disposition of the asset and shall be
taken into account for purposes of computing Profits and Losses; and
(vii) Notwithstanding any other provisions of the foregoing
provisions of this definition, any items which are specially allocated
to a Member hereunder shall not be taken into account in computing
Profits or Losses.
The amount of the items of Company income, gain, loss or deduction available to
be specially allocated pursuant to Section 5.2 hereof shall be determined by
applying rules analogous to those set forth in subparagraphs (i) through (vi)
above.
PROPERTY: In the singular, each of the Existing Property and Additional
Properties, and in the plural, any two or more of the Existing Property and/or
Additional Properties.
RENTS: Collectively, all fixed, base, minimum, guaranteed, additional,
retroactive, percentage, participation or escalation rents, operating cost
pass-throughs, utility charges, common area maintenance or management charges,
administrative charges, parking, maintenance, tax and insurance contributions
payable under any lease for space at the Property, deficiency rents and
liquidated damages following default by any tenant at the Property, premiums
payable by any tenant at the Property upon the exercise of a cancellation
privilege originally provided in any lease for space at the Property, and any
rights and claims of any kind which the Company may have against any tenant at
the Property.
REORGANIZATION AGREEMENT: means that certain Agreement to Reorganize and
Retire dated July 21, 2004 by and among the Company, the Owner Entity and the
Withdrawing Member.
TAX MATTERS MEMBER. Has the meaning set forth in Section 7.5.
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TRANSFER: Any sale, assignment, gift, pledge, hypothecation or other
transfer, direct or indirect, by operation of law or otherwise, of a Member's
LLC Interest.
TREASURY REGULATIONS: The Income Tax Regulations promulgated under the
Code as such regulations may be amended from time to time (including Temporary
Regulations).
UNPAID CORDISH PREFERRED RETURN: As of any given date, the Cordish
Preferred Return accrued to such date less distributions made by the Company to
Cordish pursuant to the provisions of Sections 4.2(i), 4.3(i) and 4.4(iii)
hereof as of such date.
UNPAID INLAND PREFERRED RETURN: As of any given date, the Inland
Preferred Return accrued to such date less distributions made by the Company to
Inland pursuant to the provisions of Sections 4.2(ii), 4.3(iii) and 4.4(i)
hereof as of such date.
WITHDRAWING MEMBER: means Centre Group Limited Partnership, a Maryland
limited partnership, whose interest in the Owner Entity is being purchased and
redeemed pursuant to the terms of the Reorganization Agreement and this
Agreement.
ARTICLE II
CONTINUATION; NAME; PRINCIPAL OFFICE; PURPOSE; TERM
SECTION 2.1. CONTINUATION.
A. The Company has previously been reorganized as a limited
liability company pursuant to the provisions of the Delaware Limited Liability
Company Act, Title 6 of the Delaware Code, Section 18-101 et seq. (the "LLC
ACT"). This Agreement amends, restates and replaces the Original Agreement. To
the extent permitted by the LLC Act, the provisions of this Agreement shall
override the provisions of the LLC Act in the event of any inconsistency between
them.
B. In order to maintain the Company as a limited liability company
under the laws of the State of Delaware, the Manager shall, from time to time,
take appropriate action, including the preparation and filing of such amendments
to the Certificate and such other assumed name certificates, documents,
instruments and publications as may be required by or desirable under law,
including, without limitation, action to reflect:
(i) any change in the Company name; or
(ii) any correction of false or erroneous statements in the
Certificate or the desire of the Members to make a change in any
statement therein in order that it shall accurately represent the
agreement among the Members.
C. Each necessary Member shall further execute, and the Company
shall file and record (or cause to be filed and recorded) and shall publish, if
required by law, such other and further certificates, statements or other
instruments as may be necessary or desirable under the laws of the State of
Delaware or the state in which any Property is located in connection with the
formation of the Company and the commencement and carrying on of its business.
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SECTION 2.2. NAME, REGISTERED OFFICE, AND RESIDENT AGENT;
PRINCIPAL PLACE OF BUSINESS.
A. The name of the Company shall continue to be "Capital Centre
Holding LLC.
B. The principal place of business and office of the Company shall
be located at c/o Inland Western Retail Real Estate Trust, Inc., 0000
Xxxxxxxxxxx Xxxx Xxx Xxxxx, Xxxxxxxx 00000 or at such other places or within the
county in which the Property is located as the Manager may from time to time
designate. The Company may have such additional offices and places of business
as may be established at such other locations as may be determined from time to
time by the Manager.
C. The present address of the registered office of the Company in
the State of Delaware and its resident agent for service of process in the State
of Delaware are as set forth in the Certificate.
SECTION 2.3. PURPOSE.
A. The purpose and business of the Company are solely to:
(i) Acquire all the ownership interests in and exercise all
the rights of the sole member of the Owner Entity and the Additional
Property Owner Entities;
(ii) Indirectly through the Owner Entity, to acquire, own,
finance (using special purpose entities or otherwise), develop,
redevelop, operate, lease, manage, control, sell, transfer, exchange or
otherwise dispose of the Existing Property;
(iii) Subject to the further provisions hereof and indirectly
through the Additional Property Owner Entities, to acquire, own,
finance, develop, redevelop, operate, lease, manage, control, sell,
transfer, exchange or otherwise dispose of Additional Properties; and
(iv) To do and perform all acts necessary or desirable to
carry out any of the foregoing purposes.
B. The Company shall not own any direct interest in real property
or any other business venture, and shall not incur any debt, obligation or
liability with respect to such assets. Instead, the Company shall only invest in
qualified REIT real estate assets, which assets shall generate qualified REIT
income and be owned separately by each of the Owner Entity and Additional
Property Owner Entities, and any debts and liabilities shall be incurred only by
such Entities.
C. Nothing in this Agreement shall be deemed to create a mutual
agency between the Members with respect to any activities of the Company or the
Members whatsoever. Except as expressly provided herein, no Member shall be
deemed to be the agent of any other Member for any purposes and no Member shall
have any authority to bind any other Member.
- 13 -
D. Without the unanimous approval of the Members, the Company, the
Owner Entity and the Additional Property Owner Entities shall not engage in any
other business or activity.
E. The Company intends that the Existing Property will be owned by
the Owner Entity and all Additional Properties will be owned by Additional
Property Owner Entities, through which the Company's business will be conducted.
The terms of the organizational documents relating to the formation of the Owner
Entity have been reviewed by the Members and are hereby approved by the Members,
and the terms of the organizational documents related to the formation of any
Additional Property Owner Entity, as applicable, will be approved by the Members
provided that such approval shall not be unreasonably withheld or delayed;
provided, however, that the organizational documents of the Owner Entity may be
amended by Inland if the amendments do not materially adversely affect Cordish;
and provided further, however, that subject to the provisions of Section 6.2.D
hereof, the organization documents of any Additional Property Owner Entity may
be amended by Cordish if the amendments do not adversely affect the Company or
Inland. Notwithstanding the foregoing, each Member hereby acknowledges and
agrees that simultaneously with the withdrawal of the Withdrawing Member as a
member of the Owner Entity, and effective simultaneously with the effective time
of this Agreement, Inland shall cause the organizational documents of the Owner
Entity to be amended and restated in their entirety to reflect the fact that the
Company shall be the sole member, and that Inland shall be appointed as the sole
manager, of the Owner Entity from and after the date hereof.
F. Each party hereto hereby acknowledges and agrees that, pursuant
to the provisions of Section 3A.2 of the Contribution Agreement, the parties
hereto (and their Affiliates) have entered into an agreement with respect to the
"Reserved Parcel" (as defined in the Contribution Agreement) and the rights of
Cordish to develop such parcel in accordance with the terms of such Section
3A.2. In furtherance of the foregoing, each party hereto hereby covenants and
agrees to comply in all respects with the terms and conditions of Section 3A.2
of the Contribution Agreement, which provision shall survive the closing under
such agreement, as if such provision were stated in full, as applicable, in this
Agreement.
SECTION 2.4. TERM.
The Company shall have perpetual existence beginning on the date that
the Certificate was filed with the Office of the Secretary of State of the State
of Delaware; PROVIDED THAT the Company may be dissolved in accordance with
Section 9.1 hereof.
SECTION 2.5. CLASSIFICATION OF THE COMPANY FOR TAX PURPOSES.
The Members hereby acknowledge their intention that the Company be
classified, for federal and state income tax purposes, as a partnership and not
as an association taxable as a corporation pursuant to Section 7701(a)(2) of
the Code and the Regulations promulgated thereunder, and hereby agree that the
provisions of this Agreement shall be applied and construed in a manner to give
full effect to such intent. Accordingly, each Member, by its execution or
acceptance of this Agreement, covenants and agrees that (i) it will not cause
the Company, the Owner Entity or any Additional Property Owner Entity to make an
election under Regulations Section 301.7701-3(b) to be taxed as a corporation
for federal income tax purposes (ii) it will file its own federal and state
income tax returns in a manner that is consistent with tax
- 14 -
classification of the Company as a partnership and (iii) it will not take any
action which is inconsistent with such classification.
SECTION 2.6. LIABILITY OF THE MEMBERS.
No Member shall be liable under a judgment, decree or order of a court,
or in any other manner for the debts or any other obligations or liabilities of
the Company, an Owner Entity or an Additional Property Owner Entity solely by
reason of being a Member of the Company. A Member shall be liable only to make
the contributions described in Sections 3.2 and 3.3, on the terms therein
described, and except as provided in Section 3.4 or 6.5.F, shall not be required
to lend any funds to the Company, any Owner Entity or Additional Property Owner
Entity, or to make any other contributions, assessments or payments to the
Company; provided that a Member may be required to repay distributions made to
it as provided in Section 18-607 of the LLC Act. No Member shall have any
personal liability for any repayment of any Capital Contribution of any Member.
The terms of this Section 2.6 shall not limit or diminish in any way the
obligations of the Members (and the other parties thereto) under this Agreement,
the Indemnification Agreement and the Contribution Agreement.
SECTION 2.7. OWNERSHIP AND WAIVER OF PARTITION AND VALUATION.
The LLC Interests of each Member in the Company shall be personal
property for all purposes. All property and interests in property, real or
personal, owned (directly or indirectly) by the Company shall be deemed owned
(directly or indirectly) by the Company as an entity, and no Member,
individually, shall have any ownership of or interest in such property or
interest owned (directly or indirectly) by the Company except as a member of the
Company. To avoid irreparable damage to the Company, each Member, on behalf of
itself and its successors, representatives, heirs, and assigns hereby
irrevocably, unconditionally and completely waives, renounces and releases each
and all of the following rights that it has or may have, if any, by virtue of
holding LLC Interests in the Company: (i) any right of partition or any right to
take any other action that otherwise might be available to such Member for the
purpose of severing its relationship with the Company or such Member's interest
in the assets held by the Company from the interest of the other Members; and
(ii) any right to valuation and payment with respect to such Member's LLC
Interests or any portion thereof, except to the extent specifically set forth
herein. Notwithstanding any provision herein to the contrary, each Member hereby
acknowledges and agrees that, pursuant to the provisions of Section 9.4.E(iii)
hereof, in the event that Cordish seeks, or attempts to seek, to take any action
in violation or inconsistent with the foregoing, Inland shall be permitted at
any time, in its sole and absolute discretion, to deliver a Redemption Notice to
Cordish and to thereupon immediately cause the Company to purchase the Cordish
LLC Interest pursuant to the terms of Sections 9.4, 9.5 and 9.6 hereof.
SECTION 2.8. WAIVER OF RIGHT TO JUDICIAL DISSOLUTION.
The Members agree that irreparable damage would be done to the good
will and reputation of the Company if any Member should bring an action in
court to dissolve the Company. Accordingly, to avoid irreparable damage to the
Company each Member hereby irrevocably, unconditionally and completely waives,
renounces and releases its right to seek a court decree of dissolution or to
seek the appointment by a court of a liquidator for the Company.
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Notwithstanding any provision herein to the contrary, each Member hereby
acknowledges and agrees that, pursuant to the provisions of Section 9.4.E(iii)
hereof, in the event that Cordish seeks, or attempts to seek, to take any action
in violation or inconsistent with the foregoing, Inland shall be permitted at
any time, in its sole and absolute discretion, to deliver a Redemption Notice to
Cordish and to thereupon immediately cause the Company to purchase the Cordish
LLC Interest pursuant to the terms of Sections 9.4, 9.5 and 9.6 hereof.
ARTICLE III
MEMBERS; COMPANY CAPITAL; PERCENTAGE INTERESTS
SECTION 3.1. MEMBERS.
A. In accordance with the terms of the Contribution Agreement,
Inland and Cordish are hereby admitted as Members in the Company and the
Original Members are hereby withdrawn from the Company. The respective names,
business addresses and Percentage Interests of the Members are as set forth on
SCHEDULE A and the Members identified on SCHEDULE A are, as of this date, the
only members in the Company. SCHEDULE A shall be amended from time to time to
reflect any changes of address, the admission of any additional or substitute
Members or any changes to the information set forth thereon. The respective
Percentage Interests of the Members set forth on SCHEDULE A shall not change or
otherwise be modified or amended as a result of Capital Contributions made by
the Members.
B. One or more Persons may be admitted to the Company as additional
Members from time to time only with the unanimous written consent of the
Members, provided, however, that the admission of transferees permitted pursuant
to Article VIII hereof shall not require the consent of the Manager or the
Members.
C. In addition to any other requirements set forth in this
Agreement, no Person shall be admitted to the Company as an additional or
substitute Member unless and until such Person has accepted and agreed to all
the provisions of this Agreement by executing a counterpart signature page
hereto or an amendment to this Agreement.
SECTION 3.2. INITIAL CAPITAL CONTRIBUTIONS.
A. In accordance with the terms of the Contribution Agreement,
upon the execution of this Agreement, Inland has contributed to the Company cash
in the amount set forth next to its name on SCHEDULE A attached hereto and made
a part hereof (the "INITIAL CAPITAL CONTRIBUTION"). Inland's Initial Capital
Account balance shall be equal to Inland's Initial Capital Contribution set
forth in the preceding sentence. Inland's Capital Account balance shall be
adjusted from time to time to take into account any Additional Capital
Contributions made by Inland under Section 3.3.A hereof.
B. The Members hereby agree that, upon the admission of Inland as a
Member of the Company, Cordish's Capital Account shall be increased to equal the
amount set forth next to its name on SCHEDULE A, which reflects the agreed-upon
Gross Asset Value of the Existing Property as of the date hereof, reduced by (i)
the amount of the Existing Debt as of the date hereof, (ii) the amount required
to be contributed to the Owner Entity and then distributed to the Withdrawing
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Member under Section 4.1.A hereof, (iii) the aggregate amount deposited in
escrow pursuant to Section 1 of the Escrow Agreement and Section 1 of the
Liquidity Escrow Agreement, and (iv) amounts not yet contributed to the Company
by Inland as of the date hereof pursuant to Section 1.4.1 of the Contribution
Agreement. Cordish's Capital Account (and Adjusted Capital Balance) shall be
increased from time to time, without duplication, as and when funds are (a)
released and deposited into the Operations Reserve pursuant to Sections 2.1 and
2.2 of the Escrow Agreement and Section 2 of the Liquidity Escrow Agreement, and
(b) deposited into the Operations Reserve pursuant to the terms of the Article I
of the Contribution Agreement and Section 3.3.A of this Agreement.
C. The initial Adjusted Capital Balance of each Member shall be set
forth opposite such Member's name on SCHEDULE A attached hereto and shall be
adjusted from time to time in accordance with the terms of this Agreement.
D. The manner in which the Capital Contributions, Adjusted Capital
Balances, Capital Accounts, payments to the Withdrawing Member and the
Operations Reserve balance shall be determined and adjusted (under the terms and
conditions of this Section 3.2 and this Agreement) is illustrated on EXHIBIT E
attached hereto, which Exhibit is based on estimated figures and may not
therefore reflect the actual figures applied under the terms of this Agreement.
SECTION 3.3. ADDITIONAL CAPITAL CONTRIBUTIONS.
A. In accordance with and subject to the terms of Section 1.4.3 of
the Contribution Agreement, Inland shall make additional Capital Contributions
to the Company from time to time, a portion of which shall be deposited directly
in the Operations Reserve and a portion of which shall be paid to the
Withdrawing Member, as set forth in the Contribution Agreement.
B. Other than the Capital Contributions of the Members required
under Section 3.2 and 3.3.A, and as otherwise provided in this Agreement, no
Member shall (i) be required or entitled to make any further Capital
Contributions or (ii) be required or entitled to lend any funds to the Company.
C. Except as provided in Section 3.3.A, no Member shall have any
obligation to make additional Capital Contributions to restore a deficit
balance in its Capital Account. Notwithstanding the foregoing, any Member
may, by delivery of written notice to the other Member delivered on or before
December 31 of any year, but subject to the reasonable approval of the
Manager, voluntarily elect to incur an unconditional obligation to restore a
deficit balance in its Capital Account. Any such election, if made, shall be
effective only for such period indicated in the written notice, and may, in
the sole and absolute discretion of the electing Member but subject to the
reasonable approval of the Manager, be limited to a specified dollar amount
and/or a specific period of time. This Section 3.3.C and any election made
hereunder shall be interpreted and applied consistently with the provisions
Treasury Regulation Section 1.704-1(b)(2)(ii)(c).
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SECTION 3.4. FUNDING OF ADDITIONAL CASH REQUIREMENTS.
A. If the Company or the Owner Entity, other than an Additional
Property Owner Entity (which is addressed by Section 3.4.B), experiences a Cash
Shortfall (other than to the extent that the Company's Cash Shortfall is
attributable solely to an Additional Property Owner Entity, which is addressed
in Section 3.4.B), the Manager shall have the right to provide written notice of
such Cash Shortfall to the Members (a "CASH SHORTFALL NOTICE"). Upon receipt of
the Cash Shortfall Notice, the Members may upon mutual consent elect to (a) make
an Additional Capital Contribution in proportion to their respective Percentage
Interests to cover the Cash Shortfall, or (b) make Cash Shortfall Loans to the
Owner Entity in the amount of the Cash Shortfall and in proportion to the
Member's respective Percentage Interests on the terms provided in Section 3.4.C.
If the Members do not agree to make such Additional Capital Contributions or
Cash Shortfall Loans, Inland shall promptly make (or cause an Affiliate or other
Person selected by it to make) a Cash Shortfall Loan to the Owner Entity in the
amount of the Cash Shortfall on the terms provided in Section 3.4.C. If Inland
does not promptly make or cause an Affiliate or other Person selected by it to
make a Cash Shortfall Loan pursuant to this Section 3.4.A, Cordish shall have
the right, but not the obligation, to fund the amount of such loan (a "DEFAULT
LOAN"), which shall constitute a loan by Cordish to Inland, which shall be a
recourse demand obligation of Inland and which shall bear interest at the rate
of 20% per annum, compounded monthly. All distributions of Net Cash Flow or Net
Proceeds of a Capital Transaction or repayments by the Company of any Cash
Shortfall Loans otherwise payable to Inland shall be made instead to Cordish
until all Default Loans (including accrued and unpaid interest) made by Cordish
have been repaid in full. For the avoidance of doubt, any distributions or
payments that would have otherwise been distributed or paid to Inland but are
paid to Cordish in accordance with any Default Loan made pursuant to this
Section 3.4A shall, for all other purposes of this Agreement, be deemed to have
been distributed or paid to Inland.
B. If any Additional Property Owner Entity experiences a Cash
Shortfall, or to the extent the Company experiences a Cash Shortfall
attributable solely to one or more Additional Property Owner Entities, either
Member shall have the right to provide written notice of such Cash Shortfall to
the Members (a "CASH SHORTFALL NOTICE"). Upon receipt of the Cash Shortfall
Notice, the Members may upon mutual consent elect to (a) make an Additional
Capital Contribution in proportion to their respective Percentage Interests to
cover the Cash Shortfall, or (b) make Cash Shortfall Loans to the Additional
Property Owner Entity in the amount of the Cash Shortfall and in proportion to
the Member's respective Percentage Interests on the terms provided in Section
3.4.C. If the Members do not agree to make such Additional Capital Contributions
or Cash Shortfall Loans, Cordish shall promptly make (or cause an Affiliate or
other Person selected by it to make) a Cash Shortfall Loan to the Additional
Property Owner Entity in the amount of the Cash Shortfall on the terms provided
in Section 3.4.C. If Cordish does not promptly make or cause an Affiliate or
other Person selected by it to make a Cash Shortfall Loan pursuant to this
Section 3.4.B, Inland shall have the right, but not the obligation, to fund the
amount of such loan (a "DEFAULT LOAN"), which shall constitute a loan by Inland
to Cordish, which shall be a recourse demand obligation of Cordish and which
shall bear interest at the rate of 20% per annum, compounded monthly. All
distributions of Net Cash Flow or Net Proceeds of a Capital Transaction or
repayment, by the Company of any Cash Shortfall Loans otherwise payable to
Cordish shall be made instead to Inland until all Default Loans (including
accrued and unpaid interest) made by Inland have been repaid in full. In
addition, if all Default
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Loans made by Inland are not repaid in full within six (6) months, Cordish shall
have no management and/or voting rights (including, but not limited to, those
provided in Section 6.1.D) with respect to any Existing Property or Owner Entity
pursuant to the provisions hereof until all Default Loans made by Inland have
been repaid in full. For the avoidance of doubt, any distributions or payments
that would have otherwise been distributed or paid to Cordish but are paid to
Inland in accordance with any Default Loan made pursuant to this Section 3.4.B
shall, for all other purposes of this Agreement, be deemed to have been
distributed or paid to Cordish.
C. Cash Shortfall Loans, if any, made pursuant to this Section 3.4
shall: (i) be evidenced by a written promissory note containing customary terms
and conditions in a form attached hereto as EXHIBIT D, (ii) bear interest at the
rate of 12% per annum, shall compound monthly and shall accrue until maturity
and (iii) mature on the earlier of the date that is five (5) years after the
initial funding of such loan or the occurrence of a Capital Transaction with
respect to the Owner Entity or Additional Property Owner Entity that is the
obligor on such Cash Shortfall Loan.
D. If, at any time or from time to time, the Company or the Owner
Entity requires additional funds, the Manager may cause the Owner Entity to
borrow the required additional funds from any Person or Persons, provided that
such borrowing is an Approved Financing.
E. The Members hereby covenant and agree to structure any Cash
Shortfall Loans made pursuant to the terms of this Agreement so that such loans
satisfy the "Straight Debt Safe Harbor" under Code Section 856(c)(7) and the
Treasury Regulations promulgated thereunder.
SECTION 3.5. LOANS.
A. The Members intend that the Company will not own any real estate
directly, but will only own interests in the Owner Entities and Additional
Property Owner Entities. Accordingly, unless all Members agree, the Manager
shall not incur any loans or borrowings on behalf of the Company.
B. If any Member shall, lend any money to any Owner Entity or
Additional Property Owner Entity, the amount of any such loan shall not be
considered a Capital Contribution to the Company, increase its Capital Account
or affect in any way its share of the Profits, Losses, other items of income,
gain, loss or deduction or distributions of the Company but shall be a debt due
from the Owner Entity or the Additional Property Owner Entity, as applicable.
C. The proceeds of Cash Shortfall Loans, Default Loans and
Development Loans made pursuant to the provisions of this Agreement and the
proceeds of any financing obtained by Cordish pursuant to Section 6.2.B(i) with
respect to any Additional Property will only be advanced as and to the extent
that costs and expenses to be funded pursuant to the provisions hereof by such
Cash Shortfall Loans, Default Loans, Development Loans and/or such other
financing are actually incurred.
SECTION 3.6. NO THIRD PARTY BENEFICIARIES.
The obligations of Inland or Cordish to fund Cash, Shortfall Loans
hereunder shall not confer upon any creditor or other third party having
dealings with the Company or any Owner
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Entity any right, claim or other benefit, including the right to require any
such Cash Shortfall Loans.
SECTION 3.7. CAPITAL ACCOUNTS.
A. The Company shall establish and maintain a separate Capital
Account for each Member in accordance with the provisions of this Section 3.7.
To each Member's Capital Account there shall be credited such Member's Capital
Contributions, such Member's allocable share of Profits, and any items in the
nature of income or gain that are specially allocated to such Member under this
Agreement.
B. To each Member's Capital Account there shall be debited the
amount of cash and the Gross Asset Value of any Company property distributed to
such Member pursuant to any provision of this Agreement (net of liabilities
secured by such distributed property that such Member is considered to assume or
take subject to under Code Section 752), such Member's allocable share of
Losses, and any items in the nature of expenses or losses that are specially
allocated to such Member under this Agreement.
C. In the event any interest in the Company is transferred in
accordance with the terms of this Agreement (i.e., Article VIII hereof), the
transferee shall succeed to the Capital Account of the transferor to the extent
it relates to the transferred interest. In the case of a sale or exchange of an
interest in the Company at a time when an election under Code Section 754 is in
effect, the Capital Account of the transferee Member shall not be adjusted to
reflect the adjustments to the adjusted tax bases of Company property required
under Code Sections 754 and 743, except as otherwise permitted by Treasury
Regulations Section l.704-l(b)(2)(iv)(m).
D. In determining the amount of any liability for purposes of
Section 3.7.B above, there shall be taken into account Code Section 752(c) and
the Treasury Regulations promulgated thereunder, and any other applicable
provisions of the Code and Regulations.
E. The foregoing provisions and the other provisions of this
Agreement relating to the maintenance of Capital Accounts are intended to comply
with Treasury Regulations Section 1.704-l(b) and 1.704-2, and shall be
interpreted and applied in a manner consistent with such Regulations.
SECTION 3.8. RETURN OF CAPITAL.
Except as provided in Article IX or as otherwise agreed by the Members,
no Member shall have the right to withdraw or receive any return of its Capital
Contributions. Except as provided in Article IX or as otherwise agreed by the
Members, no Member shall have any right to demand or receive property (other
than cash) in return of its Capital Contributions.
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ARTICLE IV
DISTRIBUTIONS; PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT
OF EXISTING DEBT
SECTION 4.1. PAYMENTS TO WITHDRAWING MEMBER AND REPAYMENT OF
EXISTING DEBT.
A. In accordance with the terms of the Reorganization Agreement,
immediately after the execution and delivery of this Agreement and the closing
under the Contribution Agreement, the Company shall contribute sufficient cash
(the "CASH PAYMENT") to the Owner Entity in the amount of [$17,261,737.62] and
the Company shall cause the Owner Entity to purchase and redeem in full the
interest of the Withdrawing Member in the Owner Entity in exchange for cash
payments to be made to the Withdrawing Member under the terms of the
Reorganization Agreement. The Members hereby acknowledge and agree that this
contribution of cash to the Owner Entity and the distribution of cash to the
Withdrawing Member will result in the Owner Entity becoming a disregarded entity
for federal and state income tax purposes and will be treated for federal and
state income tax purposes as a purchase by the Company of a 60.0% undivided
interest in the assets of the Owner Entity for a purchase price equal to the
Cash Payment plus the Withdrawing Member's share of indebtedness in the Owner
Entity (which, in addition to the portion of the assets of the Owner Entity held
indirectly by the Company, will result in the Company directly holding 100% of
the assets of the Owner Entity for federal and state income tax purposes). The
Members acknowledge and agree that the Company shall not be deemed to have
purchased any other interest in the Existing Property or the Owner Entity for
federal and state income tax purposes. The Company shall reflect the purchase
price for such assets in the Company's tax basis of the assets held by the Owner
Entity in a manner, and based upon the allocation, determined by the Manager.
The Tax Matters Member shall be bound by the treatment of such transactions by
the Manager. The Members also recognize and agree that additional payments may
be made to the Withdrawing Member pursuant to Sections 2.1 and 2.2 of the Escrow
Agreement, Section 2 of the Liquidity Escrow Agreement, and Article 1 of the
Contribution Agreement, which shall, when made, increase the purchase price for
the assets purchased by the Cash Payment.
B. Immediately after the execution and delivery of this Agreement
and the Closing under the Contribution Agreement, the Company shall cause the
Owner Entity to repay and satisfy in full the Existing Debt (as such term is
defined in the Contribution Agreement). The repayment of the Existing Debt and
the other payments and distributions described in this Section 4.1 shall be made
in the manner and to the extent set forth in this Section 4.1, notwithstanding
any other provision contained in this Article IV. No repayment of the Existing
Debt pursuant to this Section 4.1.B shall reduce Cordish's Adjusted Capital
Balance or Capital Account. Each party hereto hereby acknowledges and agrees
that it is the intention of the Manager to cause the Owner Entity,
simultaneously with the execution of this Agreement, to borrow funds from an
unrelated third party lender (which transaction shall constitute an Approved
Financing under the terms of EXHIBIT B attached hereto). Notwithstanding any
inference herein to the contrary, the repayment of the Existing Debt, the Cash
Payment and the other payments and distributions described in this Section 4.1
shall be funded, in whole or in
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part, in the Manager's sole and absolute discretion, from the proceeds of such
third party loan to the Owner Entity.
C. Upon the Closing of the Contribution Agreement, the Company
shall utilize a portion of Inland's Initial Capital Contribution to pay certain
expenses of Closing, as agreed to by Inland and Cordish, which amount shall
reduce the contributions into the Operations Reserve and the Construction
Completion Reserve.
SECTION 4.2. DISTRIBUTIONS OF NET CASH FLOW.
Subject to the provisions of Section 6.4 hereof and prior to the
dissolution and termination of the Company, and subject to Section 18-607 of the
LLC Act, Net Cash Flow of the Company for any Fiscal Year shall be distributed
monthly (if and to the extent available) by the Company in the following order
of priority:
(i) FIRST, to Cordish, until such time as the Unpaid Cordish
Preferred Return has been reduced to zero.
(ii) SECOND, in the sole and absolute discretion of the
Manager, to Inland, until such time as the Unpaid Inland Preferred
Return has been reduced to zero.
(iii) THIRD, in the sole and absolute discretion of the
Manager, the balance, to the Members, in proportion to their respective
Percentage Interests in the Company.
SECTION 4.3. NET PROCEEDS OF A CAPITAL TRANSACTION.
Subject to the provisions of Section 6.4 hereof and prior to the
dissolution and termination of the Company, Net Proceeds of a Capital
Transaction may be distributed by the Company from time to time in the sole and
absolute discretion of the Manager in the following order of priority;
(i) FIRST, to Cordish, until such time as the Unpaid Cordish
Preferred Return has been reduced to zero.
(ii) SECOND, to Cordish, until such time as the Adjusted
Capital Balance of Cordish has been reduced to zero.
(iii) THIRD, to inland, until such time as the Unpaid Inland
Preferred Return has been reduced to zero.
(iv) FOURTH, to Inland, until such time as the Adjusted
Capital Balance of Inland has been reduced to zero.
(v) FIFTH, the balance, to the Members in proportion to
their respective Percentage Interests in the Company.
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SECTION 4.4 NET PROCEEDS OF A FINANCING.
Subject to the provisions of Section 6.4 hereof, the Net Proceeds of a
Financing may be distributed by the Company from time to time in the sole and
absolute discretion of the Manager:
(i) FIRST, to Inland, until such time as the Unpaid Inland
Preferred Return has been reduced to zero.
(ii) SECOND, to Inland, until such time as the Adjusted
Capital Balance of Inland has been reduced to zero.
(iii) THIRD, to Cordish, until such time as the Unpaid Cordish
Preferred Return has been reduced to zero.
(iv) FOURTH, to Cordish, until such time as the Adjusted
Capital Balance of Cordish has been reduced to zero.
(v) FIFTH, the balance, to the Members in proportion to
their respective Percentage Interests in the Company.
SECTION 4.5. OTHER DISTRIBUTION RULES.
A. For purposes of Sections 4.2, 4.3 and 4.4:
(i) Distributions of Net Cash Flow of the Company for any
calendar month will be considered distributed before the Net Proceeds of
a Capital Transaction and Net Proceeds of a Financing occurring during
the same calendar month.
(ii) Whenever possible, Net Cash Flow of the Company for any
calendar month will be distributed before the Net Proceeds of a Capital
Transaction and Net Proceeds of a Financing are distributed if the Net
Proceeds of a Capital Transaction arise from a Capital Transaction or
the Net Proceeds of a Financing arise from an Approved Financing that
occurred within such calendar month or within the first ten (10) days of
the immediately following calendar month.
(iii) The Manager shall adopt other reasonable ordering
conventions as may be necessary to prevent any duplication of amounts
that are distributable under both of such Sections.
B. Subject to the provisions of Section 3.4 and Section 6.5.F
relating to Default Loans, distributions in respect of an LLC Interest shall be
made only to the Person or Persons that, according to the Company's books and
records, are the holders of record of the LLC Interests in respect of which such
distributions are made on the actual date of distribution. Neither the Company
nor the Manager shall incur any liability for making distributions in accordance
with the provisions of the preceding sentence, whether or not the Company or the
Manager has knowledge or notice of any Transfer or purported Transfer of
ownership of any LLC Interest. Except with respect to Default Loans, the
Manager shall have no right or authority
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to set off any debts or obligations of Cordish against any distributions due to
Cordish hereunder, including distributions under Section 9.6 hereof.
SECTION 4.6. WITHHOLDING.
A. The Members hereby authorize the Company to withhold from or pay
on behalf of or with respect to such Member any amount of federal, state, local,
or foreign taxes that the Manager reasonably determines that the Company is
required to withhold or pay with respect to any amount distributable or
allocable to the Members pursuant to this Agreement, including any taxes
required to be withheld or paid by the Company pursuant to Section 1441, 1442,
1445 or 1446 of the Code. The Manager shall give prompt notice to the Members
with respect to which withholding is effected in accordance with this Section
4.6.A and shall provide such Member with a written explanation of the basis for
its determination so to withhold or pay (a "WITHHOLDING NOTICE"). Any amount
paid on behalf of or with respect to a Member pursuant to the provisions hereof
shall constitute a loan by the Company to such Member, which loan shall be
repaid by such Member within 15 days after notice from the Manager that such
payment must be made, unless the Company withheld such payment from a
distribution which would otherwise be made to such Member in accordance with the
provision hereof. Any amounts so withheld shall be treated as having been
distributed to such Member and shall be promptly paid, solely out of funds from
the Company, by the Manager to the appropriate taxing authority. In the event
that a Member fails to pay any amounts owed to the Company pursuant to this
Section 4.6.A when due, the Manager may, in its sole and absolute discretion,
elect to make the payment to the Company on behalf of such defaulting Member,
and in such event shall be deemed to have loaned such amount to such defaulting
Member, which shall be treated in the same manner as a Default Loan made to such
defaulting Member. For the avoidance of doubt, any distributions which would
have otherwise been distributed to a Member, but are retained by the Company in
accordance with this Section 4.6.A, shall, for all other purposes of this
Agreement, be deemed to have been distributed to such Member.
B. If any Member determines that the Manager has improperly caused
the Company to withhold or to advance funds with respect to such Member in
accordance with the foregoing, then such Member shall provide written notice of
its objection to such withholding or advance to the Manager, (an "OBJECTION
NOTICE") within thirty (30) days after its receipt of the Withholding Notice,
stating its rationale for such objection. If the objecting Member and the
Manager do not reach an agreement on the contested matter within thirty (30)
days following the delivery by the objecting Member of the Objection Notice,
then the Manager shall not have the right to exercise any rights pursuant to
Section 4.6.A and the matter shall be submitted promptly by either party to
binding arbitration pursuant to Section 10.16 of this Agreement. After such
arbitration proceeding has been completed, the Manager shall then have the right
to exercise its rights pursuant to Section 4.6.A hereof only in compliance with
the determination of the arbitration proceeding. Failure of a Member to deliver
an Objection Notice within thirty (30) days after its receipt of a Withholding
Notice shall be deemed to constitute the recipient Member's acceptance of and
agreement to the withholding and/or payment and the Manager shall be entitled to
proceed pursuant, to the provisions of this Section 4.6.
C. If the Manager improperly proceeds pursuant to this Section 4.6,
then the Company shall be required to pay to the objecting Member the amount of
any distributions that
- 24 -
would otherwise have been made to the objecting Member in accordance with the
provisions of this Agreement but for the Manager's improperly proceeding
pursuant to Section 4.6, together with all out-of-pocket expenses properly and
reasonably attributable to the dispute referenced in Section 4.6.B hereof, and
the Company shall be required to pay interest at the rate of twenty percent
(20%) on all such amounts to the objecting Member.
ARTICLE V
ALLOCATION OF PROFITS AND LOSSES
SECTION 5.1. PROFITS AND LOSSES.
A. PROFITS. After giving effect to the allocations under
Section 5.2 hereof, Profits for any Allocation Year shall be allocated to the
Members in the following order of priority:
(i) Profits other than from a Capital Transaction (and
except as otherwise provided under Section 5.1.A(iii) hereof):
(a) FIRST, to Cordish, in the amount necessary to
cause the aggregate amount of Profits allocated to Cordish under
this Section 5.1.A(i)(a) from the current Fiscal Year and all
prior Fiscal Years to equal the actual amounts distributed to
Cordish pursuant to Section 4.2(i) for the current Fiscal Year
and all prior Fiscal Years; and
(b) SECOND, to Inland, in the amount necessary to
cause the aggregate amount of Profits allocated to Inland under
this Section 5.1.A(i)(b) from the current Fiscal Year and all
prior Fiscal Years to equal the amounts distributable to Inland
pursuant to Section 4.2(ii) for the current Fiscal Year and all
prior Fiscal Years; and
(c) THIRD, the balance, to the Members, in
proportion to their respective Percentage Interests in the
Company.
(ii) Profits from a Capital Transaction (except as otherwise
provided under Section 5.l.A(iii) hereof):
(a) FIRST, to each Member in an amount equal to the
amount necessary to increase each such Member's Capital Account
to the amount distributable to such Member pursuant to
Section 4.3 hereof; and
(b) SECOND, the balance, to the Members, in
proportion to their respective Percentage Interests in the
Company.
(iii) Profits arising from any Capital Transaction (including
a hypothetical sale in connection with an in-kind distribution upon
liquidation of the Company) occurring upon or resulting in the
liquidation (within the meaning of Treasury Regulations
Section 1.704-(b)(2)(ii)(g)) of the Company:
- 25 -
(a) FIRST, to Cordish, until the Capital Account
balance of Cordish equals the sum of (1) the Unpaid Cordish
Preferred Return plus (2) the Adjusted Capital Balance of
Cordish;
(b) SECOND, to Inland, until the Capital Account
balance of Inland equals the sum of (1) the Unpaid Inland
Preferred Return plus (2) the Adjusted Capital Balance of
Inland; and
(c) THIRD, the balance, to the Members, in
proportion to their respective Percentage Interests in the
Company.
B. LOSSES. After giving effect to the allocations under Section 5.2
hereof, Loss for any Allocation Year shall be allocated to the Members in the
following order of priority:
(i) Losses other than as provided in Section 5.1.B(ii)
hereof:
(a) FIRST, to Inland, to the extent of Losses
attributable to the Existing Property, but in an amount without
causing Inland to have an Adjusted Capital Account Deficit;
(b) SECOND, to Cordish, to the extent of Losses
attributable to all Additional Properties, but in an amount
without causing Cordish to have an Adjusted Capital Account
Deficit;
(c) THIRD, to the Members, pro rata in accordance
with their Capital Account balances, the maximum that can be
allocated without causing a Member to have an Adjusted Capital
Account Deficit; and
(d) FOURTH, the balance, to the Members, in
proportion to their respective Percentage Interests in the
Company.
(ii) Losses arising from any Capital Transaction (including a
hypothetical sale in connection with an in-kind distribution upon
liquidation of the Company) occurring upon or resulting in the
liquidation (within the meaning of Treasury Regulations Section
1.704-l(b)(2)(ii)(g)) of the Company:
(a) FIRST, to Cordish, until the Capital Account
balance of Cordish equals the sum of (1) the Unpaid Cordish
Preferred Return plus (2) the Adjusted Capital Balance of
Cordish;
(b) SECOND, to Inland, the maximum amount that can
be allocated without causing Inland to have an Adjusted Capital
Account Deficit;
(c) THIRD, to Cordish, in the maximum amount that
can be allocated without causing Cordish to have an Adjusted
Capital Account Deficit; and
(d) FOURTH, the balance, to the Members, in
proportion to their respective Percentage Interests in the
Company.
- 26 -
SECTION 5.2. REGULATORY AND SPECIAL ALLOCATIONS.
A. Notwithstanding any other provisions of this Article V, the
special allocations provisions set forth on SCHEDULE 5.2, which are hereby
incorporated into this Section 5.2.A by this reference as if set forth in their
entirety, shall apply prior to any other allocations of Profits and Losses (and
any items of income, gain, loss or deduction).
SECTION 5.3. OTHER ALLOCATION RULES.
A. For purposes of determining the Profits, Losses, or any other
items allocable to any period, Profits, Losses, and any such other items shall
be determined on a daily, monthly, or other basis, as reasonably determined by
the Manager using any permissible method under Code Section 706 and the Treasury
Regulations thereunder.
B. Except as otherwise provided in this Agreement, all items of
Company income, gain, loss, deduction, and any other allocations not otherwise
provided for shall be divided among the Members for tax purposes in the same
proportions as they share Profits or Losses, as the case may be, for the
Allocation Year.
C. The Members are aware of the income tax consequences of the
allocations made by this Article V and hereby agree to be bound by the
provisions of this Article V in reporting their shares of Company income and
loss for income tax purposes.
D. The Members agree that the nonrecourse liabilities of the
Company shall be allocated to the Members in proportion to their Percentage
Interests in the Company.
E. Profits, Losses and any other items of income, gain, loss or
deduction shall be allocated to the Members pursuant to this Article V as of the
last day of each Fiscal Year, provided that Profits, Losses and such other items
shall also be allocated at such times as the Gross Asset Values of Company
Assets are adjusted pursuant to subparagraph (b) of the definition of "Gross
Asset Value" in Article I.
SECTION 5.4. TAX ALLOCATIONS: CODE SECTION 704(c).
A. In accordance with Code Section 704(c) and the Treasury
Regulations thereunder, income, gain, loss, and deduction with respect to the
Existing Property, and any other property contributed to the capital of the
Company shall, solely for tax purposes, be allocated among the Members so as to
take account of any variation between the adjusted basis of such property to the
Company for federal income tax purposes and its initial Gross Asset Value. The
Members hereby irrevocably agree that the Company shall elect to use the
"traditional method" as described in Treasury Regulations Section 1.704-3(d)
with respect to allocations relating to the Existing Property (the "TRADITIONAL
METHOD").
B. In the event the Gross Asset Value of any Company property is
adjusted pursuant to paragraph (b) of the definition of Gross Asset Value,
subsequent allocations of income, gain, loss, and deduction with respect to such
asset shall take account of any variation between the adjusted basis of such
asset for federal income tax purposes and its Gross Asset Value in the
- 27 -
same manner as under Code Section 704(c) and the Treasury Regulations
thereunder, based on the Traditional Method.
C. Any elections or other decisions relating to such allocations
shall be made by the Manager, in any manner that reasonably reflects the purpose
and intention of this Agreement.
ARTICLE VI
GOVERNANCE AND ADMINISTRATIVE PROVISIONS
SECTION 6.1. MANAGEMENT OF BUSINESS AND AFFAIRS.
A. Except as otherwise expressly provided in this Agreement, the
business and affairs of the Company (including the business and affairs of the
Company with respect to the Owner Entity and each Additional Property Owner
Entity) shall be exclusively and solely vested in the Manager. Except as
otherwise expressly provided in this Agreement, no Member, other than the
Manager, shall be an agent of the Company or have any authority to bind or take
action on behalf of the Company.
B. The Members hereby designate and appoint Inland to serve as the
Manager of the Company and the Members hereby cause the Company to designate and
appoint Inland to serve as the Manager of the Owner Entity. Subject to the
approval of the Members for Major Decisions (and other limitations set forth in
this Agreement), as well as the delegation of certain obligations and
responsibilities by the Manager pursuant to this Agreement, the management of
the Existing Property and the Additional Properties shall rest with and remain
the sole and absolute right, and responsibility of the Manager, Cordish agrees
to cooperate with Inland by executing any consents or certificates of the
Company necessary to demonstrate to a lender, tenant or other service provider
to the Owner Entity that Inland has the power and authority set forth in this
Section 6.1. Without limiting the generality of the foregoing, but subject to
the express provisions of this Agreement to the contrary, including, but not
limited to, Section 6.2, the Manager shall have the full power and authority to
do all things deemed necessary or desirable by it in its sole and absolute
discretion to conduct the business of the Company and to effectuate the purposes
set forth in Section 2.3 hereof, including, without limitation:
(i) the making of any expenditures, the lending or borrowing
of money, the assumption or guarantee of, or other contracting for,
indebtedness and other liabilities, the issuance of evidences of
indebtedness (including securing of same by deed to secure debt,
mortgage, deed of trust or other lien or encumbrance of the Company's
assets) and incurring of any obligations that it deems necessary for the
conduct of the activities of the Company;
(ii) the acquisition, sale, transfer, exchange or other
disposition of any assets of the Company (including, but not limited to,
the exercise or grant of any conversion, option, privilege, or
subscription right or any other right available in connection with any
assets at any time held by the Company);
(iii) the mortgage, pledge, encumbrance or hypothecation of
any assets of the Company (including, without limitation, the Existing
Property), the use of the assets of
- 28 -
the Company (including, without limitation, cash on hand) for any
purpose consistent with the terms of this Agreement which the Manager
believes will directly benefit the Company and on any terms that the
Manager sees fit, the lending of funds to other Persons and the
repayment of obligations of the Company;
(iv) the management, operation, leasing (including the
amendment and/or termination of any lease), landscaping, repair,
alteration, demolition, replacement or improvement of any Property;
(v) the negotiation, execution and performance of any
contracts, leases, conveyances or other instruments that the Manager
considers useful or necessary to the conduct of the Company's operations
or the implementation of the Manager's powers under this Agreement,
including contracting with property managers, contractors, developers,
consultants, accountants, legal counsel, other professional advisors and
other agents (including Affiliates of Inland) and the payment of their
expenses and compensation out of the Company's assets;
(vi) the distribution of Company cash and other Company
assets in accordance with this Agreement and the holding, management,
investment, and reinvestment of cash and other assets of the Company;
(vii) the selection and dismissal of employees of the Company
(including, without limitation, employees having the title or holding
the office of "president," "vice president," "secretary" or
"treasurer"), and agents, outside attorneys, accountants, consultants
and contractors of the Company and the determination of their
compensation and other terms of employment or hiring;
(viii) the maintenance of such insurance for the benefit of the
Company and the Members as it deems necessary or appropriate including
casualty, liability and other insurance on the Properties of the
Company, which insurance may be obtained by a blanket insurance policy
obtained by an Affiliate of Inland;
(ix) the control of any matters affecting the rights and
obligations of the Company, including the settlement, compromise,
submission to arbitration or any other form of dispute resolution, or
abandonment of any claim, cause of action, liability, debt or damages
due or owing to or from the Company, the commencement or defense of
suits, legal proceedings, administrative proceedings, arbitrations or
other forms of dispute resolutions, and the representation of the
Company in all suits or legal proceedings, administrative proceedings,
arbitrations or other forms of dispute resolutions, the incurring of
legal expenses and the indemnification of any Person against liabilities
and contingencies to the extent permitted by law;
(x) holding, managing, investing and reinvesting cash and
other assets of the Company;
(xi) the collection and receipt of rents, revenues and income
of the Company;
- 29 -
(xii) in addition to working capital and/or reserves required
to be maintained under this Agreement, the maintenance of working
capital and other reserves in such amounts as the Manager deems
appropriate and reasonable from time to time;
(xiii) the making, execution and delivery of any and all deeds,
leases, notes, deeds to secure debt, mortgages, deeds of trust, security
agreements, conveyances, contracts, guarantees, warranties, indemnities,
waivers, releases or legal instruments or agreements in writing
necessary or appropriate in the judgment of the Manager for the
accomplishment of any of the powers of the Manager enumerated in this
Agreement;
(xiv) causing the Owner Entity or any of the Additional
Property Owner Entities to take any of the foregoing actions or the
undertaking of any of the foregoing actions in connection with or with
respect to the Owner Entity or any of the Additional Property Owner
Entities (including without limitation, contributing or loaning Company
funds to, incurring indebtedness on behalf of, or guaranteeing the
obligations of the Owner Entity or any Additional Property Owner
Entity); or
(xv) causing the Owner Entity to make any decision or take
any action under the provisions of the Escrow Agreement and the
Liquidity Escrow Agreement, in its sole and absolute discretion.
C. The Manager shall keep the Members informed as to all matters of
concern to the Company and the Members. In addition to and without limiting the
duties and obligations of the Manager as set forth above, but subject to the
provisions of Sections 6.2 and 6.6, the Manager shall use commercially
reasonable efforts to:
(i) cause the Company and each Owner Entity and Additional
Property Owner Entity, directly or through its agents, at all times to
perform and comply with the provisions of any loan commitment,
agreement, mortgage, deed of trust, lease, construction contract or
other contract, instrument or agreement to which the Company or any
Owner Entity or Additional Property Owner Entity is a party or which
affects the Property or the operation thereof;
(ii) keep and maintain at least such insurance coverage as
may be required by the holder of any mortgage or deed of trust
encumbering all or any portion of any Property;
(iii) deliver to the Members promptly upon the receipt or
sending thereof copies of all notices, reports and communications (a)
between the Company or any Owner Entity or Additional Property Owner
Entity and any holder of a mortgage or deed of trust affecting all or
any portion of the Property which relate to any existing or pending
default thereunder or to any financial or operational information
required by such holder and (b) regarding material violations affecting
the Property;
(iv) open and maintain bank accounts for funds of the Company
and each Owner Entity;
- 30 -
(v) employ contractors for the ordinary maintenance and
repair of the Property, including installation of tenant improvements as
required by leases on the Property;
(vi) retain or engage real estate brokers licensed to do
business in the states in which the Property, or any part thereof, is
located;
(vii) use reasonable efforts to enter into leases of space and
other occupancy agreements on market terms and conditions, and in
accordance with the requirements of any applicable loan;
(viii) employ such managing or other agents necessary for the
operation, management and leasing of each Property including, without
limitation, a property manager (which may be an Affiliate of Inland or
of Cordish);
(ix) retain or engage attorneys and accountants, to the
extent such professional services are required during the term of the
Company; and
(x) do any act which is necessary or desirable to carry out
any of the foregoing.
D. Notwithstanding the provisions of Section 6.1.B and 6.1.C,
except as may otherwise be provided in Sections 6.2 or 6.6 or elsewhere in this
Agreement, neither the Manager nor any other Member shall have any authority, in
the name of or on behalf of the Company or any Owner Entity or Additional
Property Owner Entity, to take any of the following actions or make any of the
following decisions without the prior written consent or approval of Cordish
(each, a "MAJOR DECISION"):
(i) allow the Company (as opposed to the Owner Entity or any
Additional Property Owner Entity) to incur debt, liabilities,
guarantees, or borrowings;
(ii) except with respect to or in connection with an Approved
Financing, allow the Owner Entity or any Additional Property Owner
Entity to incur any debt or borrowing, or otherwise, refinance, recast,
extend, compromise, or prepay (except in connection with condemnation or
casualty) any debt encumbering one or more of the Properties;
(iii) prior to December 31, 2009 and except as provided in
Article IX hereof and except with respect to a tax free exchange under
Section 1031 of the Code or a reinvestment under Section 1033 of the
Code, or other transaction in which the Company recognizes no gain or a
DE MINIMIS (I.E., less than 1% of the selling price) gain, sell,
transfer, assign, convey, exchange or otherwise dispose of or transfer
all or any portion of any Property or the Company Assets (other than
personal property of the Properties which may be disposed of or replaced
due to wear and tear or obsolescence);
(iv) except as provided in Article VIII, admit any Person as
an additional Member of the Company;
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(v) assign the property or assets of the entire Company in
trust for creditors or file on behalf of the entire Company a voluntary
petition for relief under the bankruptcy laws or similar voluntary
petition under state laws;
(vi) cause the Company to become a party to any merger,
consolidation or share exchange with any other entity or person, or
dissolve or terminate the Company if any such transaction would have a
material adverse effect on Cordish;
(vii) other than in connection with an Approved Financing,
pledge, assign or encumber any equity interest in any Owner Entity;
(viii) pledge, assign or encumber any equity interest in any
Additional Property Owner Entity; and
(ix) cause any Owner Entity or Additional Property Owner
Entity to take any of the foregoing actions.
E. Inland shall cause the Owner Entity to arrange and maintain
property, casualty and liability insurance with respect to the Existing Property
in amounts and on terms that are consistent with the customary practices of
Inland and its Affiliates with respect to similar properties and taking into
account all relevant factors including the nature and location of the Existing
Property; PROVIDED, HOWEVER, Inland shall cause (i) any improvements on the
Existing Property to be insured against damage by fire and the other hazards
covered by a standard extended coverage and all-risk insurance policy or a
builders risk insurance policy, as applicable, for the full insurable value
thereof (without reduction for depreciation or co-insurance) and with a
reasonable deductible, (ii) the Existing Property with completed improvements to
be covered by use and occupancy insurance covering, as applicable, rental income
or business interruption, with coverage in an amount not less than twelve
(12)-months anticipated gross rental income or gross business earnings, as
applicable, attributable to the Existing Property; and (iii) each Owner Entity
to maintain commercial general liability and umbrella liability insurance with
respect to the Existing Property providing for combined limits of liability of
not less than $25 million for both injury to or death of a person and for
property damage per occurrence. The Company, Cordish and the Additional Property
Owner Entities shall be named as additional insureds. Upon the request of
Cordish, Inland shall deliver to Cordish copies of such insurance policies and
other documents and information necessary in order to verify its compliance with
the provisions of this Section 6.1.E.
F. Whenever a Member ("REQUESTING MEMBER") requests that the other
Member (the "REQUESTED MEMBER") consent to any action required of the Requested
Member under the provisions of this Agreement, notice shall be delivered by the
Requesting Member to the Requested Member pursuant to the provisions of Section
10.2 hereof, which notice shall be in writing and shall include (a) a summary of
the terms and conditions of the actions requested to be taken by the Requesting
Member, (b) a copy of any proposed documentation, including any document to be
executed by the Company or the Requested Member in connection therewith, and (c)
a notice that conspicuously states that "THIS NOTICE IS BEING PROVIDED TO YOU IN
ACCORDANCE WITH THE TERMS OF THE AMENDED AND RESTATED LIMITED LIABILITY COMPANY
AGREEMENT OF CAPITAL CENTRE HOLDING LLC. IF YOU
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DO NOT GIVE YOUR APPROVAL OR DISAPPROVAL OF THE ACTION PROPOSED IN THIS NOTICE
TO BE TAKEN WITHIN TEN (10) BUSINESS DAYS AFTER YOU RECEIVE THIS REQUEST FOR
APPROVAL, YOUR APPROVAL OF THE PROPOSED ACTION WILL BE DEEMED GIVEN." If the
Requested Member does not respond to the Requesting Member within ten (10)
business days of receipt of such notice, the Requested Member shall be deemed to
have approved the action requested by the Requesting Member. Notwithstanding the
inference from the foregoing provisions to the contrary, the foregoing
provisions of this Section 6.1.F shall not be deemed to reduce any specific time
periods for notice otherwise expressly set forth in this Agreement. In
furtherance of the foregoing, in the event that any provision of this Agreement
sets forth a specific time period for notice which is other than ten (10)
business days, the provisions of this Section 6.1.F (including the notice to be
delivered hereunder) shall be modified to reflect such specific time period,
SECTION 6.2. DELEGATION OF AUTHORITY REGARDING SPECIFIC MATTERS.
A. The Manager hereby delegates to Cordish the specific and
exclusive authority to arrange for, negotiate and acquire in the manner provided
in Section 6.5 hereof, one or more Additional Properties. However, except as
provided in Section 6.2.C below, Cordish shall not manage or bind the Company
with respect to the Existing Property. Subject to the terms of this Section 6.2
and Section 6.5 hereof, the signature of Cordish alone shall be both necessary
and sufficient to: (i) acquire any Additional Property; (ii) organize any
Additional Property Owner Entity; (iii) execute any promissory notes, deeds of
trust, mortgages, or other instruments of hypothecation with respect to the
financing or re-financing of any Additional Property; or (iv) enter into any
partnership, operating or other agreements with respect to an Additional
Property Owner Entity, or any entity in which any Additional Property Owner
Entity holds an equity interest. All of the Members agree that a copy of this
Agreement may be furnished to appropriate third parties in order to confirm the
matters set forth in the immediately preceding sentence. Inland agrees to
cooperate with Cordish by executing any consents or certificates of the Company
necessary to demonstrate to a lender, tenant or other service provider to an
Additional Property Owner Entity that Cordish has the power and authority set
forth in this Section 6.2.A.
B. In addition, notwithstanding any provision of Section 6.1 to the
contrary, but subject in all respects to the provisions of this Section 6.2 and
Section 6.5 hereof, the Manager hereby delegates to Cordish the specific and
exclusive authority to direct the management of the business and affairs of any
Additional Property Owner Entity and the Additional Properties. In connection
therewith, Cordish is authorized, in the name of and on behalf of the Company,
to cause any Additional Property Owner Entity to take any and all actions
whatsoever, including but not limited to the following actions:
(i) To negotiate, in the name of and on behalf of the
Additional Property Owner Entity, financing for the acquisition,
construction, development, redevelopment, or improvement of the
Additional Property, which may be secured by the Additional Property
(but which shall be nonrecourse in all respects to the Company and
Inland and shall be secured solely by the Additional Property to which
such financing relates, together with any guaranty or credit enhancement
given by Cordish or any Cordish Affiliate) and to take any and all
actions necessary or convenient to cause the Additional
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Property Owner Entity to close on any such financing, PROVIDED, HOWEVER,
that (a) prior to such Additional Property Owner Entity executing any
binding agreement regarding such financing, Cordish shall consult with
Inland regarding the terms of the financing and shall provide Inland
with the opportunity to review any material documents to be executed by
the Additional Property Owner Entity in connection therewith, although
so long as the financing is consistent with and satisfies the guidelines
set forth above in this subsection 6.2.B(i), or so long as the
Additional Property Owner Entity owns a minority equity interest in
another entity (and does not own a direct real property interest) and
does not incur such financing directly, Inland's consent to such
execution shall not be required, (b) payment and performance of any
recourse financing secured by an Additional Property from a third-party
lender unaffiliated with Cordish shall be guaranteed by Cordish (or an
Affiliate thereof or any other Person other than the Company) and (c)
such financing shall be an "Approved Financing" under the terms and
conditions of EXHIBIT B attached hereto. No guaranty or credit
enhancement (or payment thereunder) provided by Cordish shall increase
Cordish's Capital Account or Cordish's Adjusted Capital Balance;
instead, any such payment shall be treated as a Development Loan
(subject to the terms of Section 6.5.F hereof) to the Additional
Property Owner Entity.
(ii) To direct the Additional Property Owner Entity with
respect to the entering into, modifying, extending, making any decisions
required or permitted to be made under, enforcing any of an Additional
Property Owner Entity's rights under or terminating the management
agreement for the Additional Property.
(iii) To take any action enumerated under Sections 6.1.B and
6.1.C, but solely with respect to the Additional Property and in the
name of the Additional Property Owner Entity, provided however that,
notwithstanding any provision hereof to the contrary (other than as
provided in Section 9.6), the disposition by the Company of an interest
in an Additional Property Owner Entity and/or the disposition by an
Additional Property Owner Entity of any Additional Property, any part
thereof or any interest therein, shall require the consent of Inland.
(iv) Subject to the provisions of this Agreement, to take any
other action associated with the construction, improvement, development
and/or redevelopment of the Additional Property, including the
negotiation and execution of any and all contracts or agreements in
connection therewith.
(v) To take any other action and make any other decision
pertaining to the conduct of the business and affairs of the Additional
Property Owner Entity and the Additional Property.
Notwithstanding any provision of this Section 6.2, the actions described in
Sections 6.1.D shall constitute Major Decisions as they relate to the Additional
Properties which Cordish shall not have the right to take pursuant to the
provisions of this Section 6.2 and/or Section 6.5 without the prior written
consent of Inland;
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C. Notwithstanding anything to the contrary otherwise contained
herein, Inland recognizes and agrees that, pursuant to the terms and conditions
of that certain Leasing and Construction Services Agreement (the "LEASING
AGREEMENT") of even date herewith, Cordish has the right and power to provide
certain leasing and construction services to the Existing Property on behalf of
the Owner Entity, and Cordish may withdraw and use funds in the Construction
Completion Reserve to fulfill any obligations of Cordish under the Leasing
Agreement.
D. Notwithstanding any provision of this Agreement to the contrary,
if Inland reasonably determines that the Company, any Owner Entity or any
Additional Property Owner Entity has taken or expects to take an action that
would jeopardize Inland's status as a REIT, Inland shall have absolute authority
to take any and all actions that Inland reasonably determines is necessary to
preserve the continued qualification of Inland as a REIT or to avoid the
imposition of additional taxes under the REIT Rules on Inland; provided that,
such action by Inland shall not alter or diminish the distributions to Cordish
under Article IV and Article IX of this Agreement. In furtherance of the
foregoing, Cordish hereby covenants and agrees that it shall timely deliver to
Inland monthly reports, and such other documents and information as Inland shall
reasonably request, regarding the operations relating to the Additional
Properties in order to enable Inland to comply with the REIT Rules and
applicable REIT reporting and compliance requirements and in order to enable
Inland to preserve the continued qualification of Inland as a REIT and to avoid
the imposition of additional taxes under the REIT Rules on Inland. Without
limiting in any way its obligations under this Section 6.2.D, in connection with
its obligations under this Section 6.2.D, Cordish hereby covenants and agrees to
(i) cooperate with and provide accurate information to Inland to the extent
necessary for Inland to comply with the REIT Rules and applicable REIT reporting
and compliance requirements (which require that Inland satisfies certain income
and asset tests which could be impacted by the operations of the Additional
Properties), (ii) notify Inland in writing prior to Cordish adding services not
currently provided to tenants or others (to verify that any such services do not
cause any amounts of gross income that would otherwise qualify under Section
856(c)(3) of the Code to fail to qualify under such Code provision as a result
of the provision of such services), (iii) provide Inland with quarterly asset
and income statements, within twenty (20) days after the end of each calendar
quarter, in a form to be provided to Cordish by Inland, (iv) timely and
accurately complete and respond in full to any and all annual questionnaires
delivered by Inland, to the extent reasonably related to Inland's qualification
or taxation as a REIT, (v) notify Inland in writing prior to the acquisition of
any securities and prior to having any tenant issue promissory notes or other
securities in lieu of, or in addition to, such tenant's obligations to pay rent
under any sublease and (vi) cause each Additional Property Owner Entity to
derive solely gross income from operations that is described from time to time
by Inland in written guidance delivered to Cordish or is otherwise permitted
under the REIT Rules. Notwithstanding anything in this Agreement to the
contrary, Cordish shall not be required independently to determine whether any
transaction or arrangement could jeopardize Inland's ability to qualify as a
REIT or would result in the imposition of additional taxes on inland under the
REIT Rules; PROVIDED, HOWEVER, that if Cordish has actual knowledge or
believes, or is otherwise informed by Inland in the exercise of Inland's
reasonable judgment, that a transaction or arrangement involving an Additional
Property, a potential Additional Property or an Additional Property Owner Entity
would jeopardize Inland's ability to qualify as a REIT or result in Inland's
payment of additional taxes under the REIT Rules, Cordish and the Additional
Property Owner Entity shall take such actions
- 35 -
(or refrain from taking such actions) as are required to protect Inland's REIT
status or to avoid the imposition of such taxes (as the case may be); PROVIDED,
FURTHER, that if (a) Cordish or any Additional Property Owner Entity is required
under this Agreement to take actions (or refrain from taking such actions) to
protect Inland's REIT status or to avoid such additional taxes, (b) such action
is not otherwise contemplated by this Agreement, and (c) such action (or
inaction) causes Cordish or the Additional Property Owner Entity to incur costs
or damages, Inland shall reimburse Cordish or the Additional Property Owner
Entity (as applicable) for the amount of the reasonable costs and damages so
incurred. In addition to the foregoing, the Members have consented and agreed to
enter into that certain Declaration of Trust and related agreements as set forth
on EXHIBIT C attached hereto as of the date hereof; provided, however, that
Inland shall reimburse any Additional Property Owner for any loss, cost, expense
and damage as a result of the transfer of any Additional Property to such Trust.
Cordish hereby covenants and agrees to have its representatives meet from time
to time (at least quarterly) with representatives of Inland, at the reasonable
request of Inland, to review the current status of the REIT Rules and applicable
compliance and reporting obligations as they pertain to the operation of the
Additional Properties.
SECTION 6.3. DUTIES AND CONFLICTS.
A. The Members, in connection with their respective duties and
responsibilities hereunder, shall at all times act in good faith and, except as
expressly set forth herein, any decision or exercise of right of approval,
consent, disapproval or deferral of approval by a Member (including the Manager)
is to be made by such Member pursuant to the terms of this Agreement in good
faith, but recognizing that each Member may act in its own economic self
interest and in accordance with such tax and business objectives as it deems
appropriate or desirable for such Member. Except as otherwise agreed to in
writing by the Members, no Member (including the Manager) or any partner,
officer, shareholder or employee of any Member shall receive any salary or other
remuneration for its services rendered pursuant to this Agreement.
Notwithstanding the foregoing, an Affiliate of Inland may manage the Existing
Property pursuant to a separate management agreement the execution by the
Company of which shall expressly not require the consent of Cordish.
B. Each Member recognizes that the other Members (including the
Manager) have or may have other business interests, activities and investments,
some of which may be in conflict or competition with the business of the Company
and that such other Member (including the Manager) is entitled to carry on such
other business interests, activities and investments. No Member (including the
Manager) shall be obligated to devote all or any particular part of its time
and effort to the Company and its affairs.
C. The Manager shall not be liable to the Company or any other
Member for any error in judgment, mistake or law or fact or for any other act or
thing which it may do or refrain from doing in connection with the business and
affairs of the Company, except in the case of an intentional breach of any
provision of this Agreement (after written notice to the Manager and a
reasonable time to cure) or its willful misconduct, gross negligence or bad
faith.
- 36 -
SECTION 6.4 RESERVE ACCOUNTS.
A. The Company shall establish, from the Initial Capital
Contributions of Inland, a reserve (the "OPERATIONS RESERVE") of all cash
remaining after the application of funds in accordance with Section 4.1 and
Section 6.4.B hereof and other payments required to be made by the Company in
connection with the transactions contemplated by the Contribution Agreement.
The Operations Reserve shall be deposited in an interest-bearing account in a
bank designated by Cordish and acceptable to Inland. Interest earned, if any, on
the Operations Reserve shall be released from the Operations Reserve and
included in Gross Receipts. The balance of the Operations Reserve shall be
increased from time to time without duplication (i) as and when funds are
released from the escrow account(s) and designated to be deposited in the
Operations Reserve in accordance with the terms of Sections 2.1 and 2.2 of the
Escrow Agreement and Section 2 of the Liquidity Escrow Agreement, (ii) as and
when Inland makes Additional Capital Contributions to the Company under the
terms of Section 3.3.A hereof but solely to the extent that such funds are
designated to be deposited in the Operations Reserve pursuant to the terms of
this Agreement and Article I of the Contribution Agreement, and (iii) as and
when funds are designated to be deposited in the Operations Reserve pursuant to
the terms of Article I of the Contribution Agreement. The balance of the
Operations Reserve shall be decreased from time to time as and when funds are
withdrawn from such account and applied in the manner set forth in this
Agreement. Notwithstanding any provision of Article IV hereof to the contrary,
all amounts payable to Cordish as a Cordish Preferred Return or as an Unpaid
Cordish Preferred Return shall be paid solely from (x) the Operations Reserve,
and shall reduce dollar for dollar the balance of the Operations Reserve; (y)
Net Cash Flow received by the Company to the extent derived solely from the
activities of any Additional Property Owner Entity and/or (z) Development Loans
made pursuant to Section 6.5.F hereof. Cordish shall be permitted to cause the
Company to withdraw and use funds in the Operations Reserve, without the consent
of Inland, within the authority granted to Cordish to direct the acquisition,
development and operations of Additional Properties (through an Additional
Property Owner Entity), as well as to pay any claim owed by Cordish under the
Indemnification Agreement or that certain Member Indemnification Agreement of
even date herewith. Inland, acting in its capacity as Manager, shall be
permitted to cause the Company to withdraw and use funds in the Operations
Reserve for any other Company purpose, but only to the extent the revenues of
the Company are insufficient to accomplish such purposes and Inland obtains the
prior written consent of Cordish to such withdrawal and use, which consent may
be withheld in Cordish's sole and absolute discretion.
B. The Company shall establish, from the Initial Capital
Contributions of Inland, a reserve of $10,139,866.92 (the "CONSTRUCTION
COMPLETION RESERVE"). The Construction Completion Reserve shall be deposited in
an interest-bearing account in a bank designated by Cordish and acceptable to
Inland. Interest earned, if any, on the Construction Completion Reserve shall be
released from the Construction Completion Reserve and included in Gross
Receipts. The balance of the Construction Completion Reserve shall be decreased
from time to time as and when funds are withdrawn from such account and applied
in the manner set forth in this Agreement. Cordish shall be permitted to cause
the Company to withdraw and use funds in the Construction Completion Reserve,
without the consent of Inland, within the authority granted to Cordish to
complete the construction of the Existing Property pursuant to the Leasing and
Construction Services Agreement of even date herewith. Any funds remaining in
the Construction Completion Reserve as of June 30, 2005 shall be applied as
follows: (i) 2% of such
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funds shall be deposited in the Operations Reserve; (ii) 60% of the remaining
funds (after the application of clause (i)) shall be paid to the Withdrawing
Member; and (iii) the balance shall be deposited into the Operations Reserve.
SECTION 6.5 ACQUISITION OF ADDITIONAL PROPERTIES.
A. The Members anticipate expanding the business of the Company by
acquiring one or more Additional Properties (through Additional Property Owner
Entities) and causing the Additional Properties to be developed, redeveloped or
refurbished. Either Member may identify potential Additional Properties for
acquisition and development by the Company and shall notify the other Member of
any such identification and provide the other Member with the opportunity to
comment thereon. Cordish shall have the right and authority, subject to the
provisions of Section 6.1.D applicable to Cordish pursuant to Section 6.2
hereof, to supervise and coordinate all aspects of the acquisition, financing,
development and/or redevelopment of each Additional Property, shall keep Manager
informed with respect to all such activity and shall have the duties and
obligations set forth in Section 6.1.C and elsewhere in this Agreement with
respect to the Additional Properties, to the extent applicable; PROVIDED,
HOWEVER, that any such Additional Property may only be acquired by an Additional
Property Owner Entity and only if (i) such Additional Property and the related
Development Plan for such Additional Property has been approved by Cordish, (ii)
all available environmental reports and similar reports for such Additional
Property have been submitted to the Manager and the Manager has approved the
environmental and similar condition of such Additional Property, (iii) the
Manager determines that the acquisition of such Additional Properties would not
impose additional liabilities or obligations on the Company (other than to the
extent that such liabilities or obligations would remain liabilities and
obligations solely of the applicable Additional Property Owner Entity) and (iv)
the Manager determines that the acquisition of such Additional Properties would
not adversely affect the continued qualification of Inland as a REIT and would
not cause the imposition of additional taxes under the REIT Rules on Inland.
B. Unless otherwise agreed by the Members in writing, each
Additional Property shall be acquired by an Additional Property Owner Entity
which shall be a single-purpose limited liability company similar in form and
structure to the Owner Entity. Each Additional Property Owner Entity shall be
owned solely by the Company.
C. Unless otherwise agreed by the Members in writing, Cordish may
utilize cash then held in the Operations Reserve to fund the costs relating to
any Additional Property in addition to incurring (or causing an Additional
Property Owner Entity to incur) financing for the acquisition, development
and/or redevelopment of the Additional Property (subject to the limitations set
forth in this Agreement). Unless otherwise agreed by the Members in writing, and
notwithstanding any authority granted to Cordish under this Agreement
(specifically including, but not limited to Section 6.2 hereof), the Company
shall not utilize any Company cash other than the cash in the Operations Reserve
in connection with the acquisition of, financing of, operation of, and other
costs relating to, the Additional Properties and the Additional Property Owner
Entities.
X. Xxxxxxx shall cause the Additional Property Owner Entity to
arrange and maintain property, casualty and liability insurance with respect to
the Additional Properties in amounts
- 38 -
and on terms that are consistent with the customary practices of Cordish and its
Affiliates with respect to similar properties and taking into account all
relevant factors including the nature and location of the Additional Properties;
PROVIDED, HOWEVER, Cordish shall cause (i) any improvements on the Additional
Properties to be insured against damage by fire and the other hazards covered by
a standard extended coverage and all-risk insurance policy or a builders risk
insurance policy, as applicable, for the full insurable value thereof (without
reduction for depreciation or co-insurance) and with a reasonable deductible,
(ii) each Additional Property with completed improvements to be covered by use
and occupancy insurance covering, as applicable, rental income or business
interruption, with coverage in an amount not less than twelve (12)-months
anticipated gross rental income or gross business earnings, as applicable,
attributable to such Additional Property; and (iii) each Additional Property
Owner Entity to maintain commercial general liability and umbrella liability
insurance with respect to each Additional Property providing for combined limits
of liability of not less than $25 million for both injury to or death of a
person and for property damage per occurrence; The Company, Inland, and the
Owner Entity shall be named as additional insureds. Upon the request of Inland,
Cordish shall deliver to Inland copies of such insurance policies and other
documents and information necessary in order to verify its compliance with the
provisions of this Section 6.5.D.
E. Subject to the terms of Section 6.2.B(i) hereof, Cordish shall
have the right and authority to arrange the original financing for each
Additional Property on behalf of the Additional Property Owner Entity in
accordance with Section 6.2.B(i) without the need to obtain the consent or
approval of the Manager, and to utilize the funds (including interest thereon)
in the Operations Reserve in connection with the acquisition, development and/or
redevelopment of Additional Properties.
F. If any Additional Property Owner Entity has a need for funds in
connection with the acquisition, development and/or redevelopment of an
Additional Property, or if the Company requires additional funds in connection
with the acquisition of an equity interest in an Additional Property Owner
Entity, or if an Additional Property Owner Entity does not have sufficient cash
flow to fund the Cordish Preferred Return that year to the Company, and in
either case such amount exceeds the amount available from the Operations Reserve
and the proceeds of any financing arranged by Cordish pursuant to Section 6.5.E
hereof, then Cordish shall have the right to provide written notice of the need
for such funds ("REQUIRED DEVELOPMENT FUNDS") to the Members (a "DEVELOPMENT
FUNDS NOTICE"). Upon receipt of the Development Funds Notice, the Members may
upon mutual consent (in their sole and absolute discretion) elect to (a) make an
Additional Capital Contribution in proportion to their respective Percentage
Interests, or (b) make loans ("DEVELOPMENT LOANS") to the Additional Property
Owner Entity in the amount of the Required Development Funds described in the
Development Funds Notice in proportion to the Members' respective Percentage
Interests on the same terms and form as a Cash Shortfall Loan made with respect
to the Additional Property as set forth in Section 3.4.C hereof. The Members
hereby covenant and agree to structure any Development Loans made pursuant to
the terms hereof so that such loans satisfy the "Straight Debt Safe Harbor"
under Code Section S56(c)(7) and the Treasury Regulations promulgated
thereunder. If the Members do not agree to make such Additional Capital
Contributions or Development Loans, Cordish shall promptly make (or cause an
Affiliate or other Person selected by it to make) a Development Loan to the
Additional Property Owner Entity in the amount of the Required Development Funds
in accordance with Section 6.2.B(i) and on the same terms applicable to a Cash
Shortfall Loan
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made with respect to the Additional Property as set forth in Section 3.4.C
hereof. If Cordish does not promptly make or cause an Affiliate or other Person
selected by it to make a Development Loan pursuant to this Section 6.5.F, Inland
shall have the right, but not the obligation, in its sole and absolute
discretion, to fund the amount of such Development Loan, which shall constitute
a Default Loan by Inland to Cordish in the same manner as set forth in Section
3.4.B hereof. If Inland does not elect (in its sole discretion and with no duty
or obligation to do so) to make such a Development Loan or Default Loan and if
such Additional Property Owner Entity will become insolvent or will be in
default under any of its financing obligations then Inland shall have the
unilateral right at any time to cause the Company to distribute the entire
ownership interest in such Additional Property Owner Entity to Cordish
(notwithstanding any other provisions of this Agreement to the contrary) on the
terms provided in Section 9.6.B and the Adjusted Capital Balance of Cordish
shall be reduced by an amount equal to the portion of the Operations Reserve
theretofore contributed to such Additional Property Owner Entity.
G. Notwithstanding anything to the contrary otherwise contained
herein and in addition to the obligations and conditions set forth herein, in
the event Cordish desires that an Additional Property Owner Entity acquire a
direct interest in real property (as opposed to an indirect interest, such as a
partnership interest or limited liability company interest in another entity
that owns real property), before such Additional Property Owner Entity acquires
title to such Additional Property, Cordish shall provide Inland with a copy of a
Phase I environmental report that does not recommend that any further studies,
tests or remediation be conducted with respect to such property.
H. Prior to the acquisition of an Additional Property and in
addition to the obligations and conditions set forth herein, Cordish shall
deliver to the Manager a proposed Development Plan for such Additional Property.
The Manager shall have the right to review and comment on each Development Plan
so submitted by Cordish. Within ten (10) business days after the delivery of the
proposed Development Plan for an Additional Property, the Manager shall provide
Cordish with its comments thereon (including whether or not the Manager believes
at such time that the Additional Property will comply with the requirements in
Section 6.6 below, provided, however, that the Manager's initial belief as set
forth in this sentence shall not be deemed to be a waiver of the Manager's or
Inland's rights hereunder), if any, which Cordish shall take into consideration.
X. Xxxxxxx shall cause the development, redevelopment, construction
and improvement of each Additional Property to be completed substantially in
accordance with the Development Plan therefor.
SECTION 6.6 COMPLIANCE WITH CERTAIN REQUIREMENTS.
Notwithstanding any other provision of this Agreement or any other
document governing the management and operation of the Property, Inland shall
have the right to cause the Company, each Owner Entity and any Additional
Property Owner Entity to take any reasonable action or to refrain from taking
any action (including but not limited to using a protective trust to own assets)
to (i) preserve the continued qualification of inland as a real estate
investment trust under Section 856 of the Code (a "REIT"), (ii) preserve the
continued qualification of any Affiliates of Inland
- 40 -
as taxable REIT subsidiaries and (iii) avoid the imposition of additional taxes
on Inland under Section 857 of the Code or Section 4981 of the Code and the
Treasury Regulations promulgated thereunder (collectively the "REIT RULES"). The
Members agree that in the event that Inland proposes to take any action (or
cause the Company or any Owner to take any action) to ensure the continued
qualification of Inland as a REIT or to avoid the imposition of additional taxes
under the REIT Rules on Inland, Inland shall (x) notify and consult with
Cordish regarding, and prior to taking, such proposed action and (y) except as
provided in Section 6.2.D, not have liability to any other Member for monetary
damages or otherwise for losses sustained or liabilities incurred in connection
with such actions provided that Inland acts in good faith to determine and
implement a course of action that preserves Inland's REIT status or avoids the
imposition of additional taxes on Inland in a manner which minimizes the adverse
effects on any other Member's rights and obligations hereunder. In no event,
however, shall the distributions to Cordish under Article IV and Article IX of
this Agreement be altered or affected by any action so taken by Inland.
SECTION 6.7 EXCULPATION AND INDEMNIFICATION.
A. Neither the Manager nor any employee, representative,
agent or Affiliate of the Manager (collectively, the "COVERED PERSONS") shall be
liable to the Members, the Company or any other Person who has an interest in or
claim against the Company or any Additional Property Owner Entity or Owner
Entity for any loss, damage or claim incurred by reason of any act or omission
performed or omitted by such Covered Person in good faith on behalf of the
Company and in a manner reasonably believed to be within the scope of the
authority conferred on such Covered Person by this Agreement, except that a
Covered Person shall be liable for any such loss, damage or claim incurred by
reason of such Covered Person's gross negligence or willful misconduct.
B. To the fullest extent permitted by applicable law, a
Covered Person shall be entitled to indemnification from the Company for any
loss, damage or claim incurred by such Covered Person by reason of any act or
omission performed or omitted by such Covered Person in good faith on behalf of
the Company and in a manner reasonably believed to be within the scope of the
authority conferred on such Covered Person by this Agreement, except that no
Covered Person shall be entitled to be indemnified in respect of any loss,
damage or claim incurred by such Covered Person by reason of such Covered
Person's gross negligence or willful misconduct with respect to such acts or
omissions; PROVIDED, HOWEVER, that any indemnity under this Section 6.7 by the
Company shall be provided out of and to the extent of Company assets only, and
the Members shall not have personal liability on account thereof.
C. To the fullest extent permitted by applicable law,
expenses (including legal fees) incurred by a Covered Person defending any
claim, demand, action, suit or proceeding shall, from time to time, be advanced
by the Company prior to the final disposition of such claim, demand, action,
suit or proceeding upon receipt by the Company of an undertaking by or on behalf
of the Covered Person to repay such amount if it shall be determined that the
Covered Person is not entitled to be indemnified as authorized in this Section
6.7
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D. A Covered Person shall be fully protected in relying in
good faith upon the records of the Company and upon such information, opinions,
reports or statements presented to the Company by any Person as to matters the
Covered Person reasonably believes are within such other Person's professional
or expert competence and who has been selected with reasonable care by or on
behalf of the Company, including information, opinions, reports or statements as
to the value and amount of the assets, liabilities, or any other facts pertinent
to the existence and amount of assets from which distributions to the Member
might properly be paid.
E. To the extent that, at law or in equity, a Covered
Person has duties (including fiduciary duties) and liabilities relating thereto
to the Company or to any other Covered Person, a Covered Person acting under
this Agreement shall not be liable to the Company or to any other Covered Person
for its good faith reliance on the provisions of this Agreement or any approval
or authorization granted by the Company or any other Covered Person. The
provisions of this Agreement, to the extent that they restrict the duties and
liabilities of a Covered Person otherwise existing at law or in equity, are
agreed by the Members to replace such other duties and liabilities of such
Covered Person.
F. The foregoing provisions of this Section 6.7 shall
survive any termination of this Agreement.
G. Notwithstanding any provisions herein to the contrary,
the provisions of this Agreement, specifically including, but not limited to,
the provisions of this Section 6.7, shall not in any way be construed to limit
or affect the terms and conditions of, the Indemnification Agreement.
ARTICLE VII
BOOKS AND RECORDS; RESERVES
SECTION 7.1. BANK ACCOUNTS.
The Manager shall have authority to open bank accounts and designate
signatories with respect thereto on behalf of the Company and the Owner Entity
and may authorize property managers to open such bank accounts as it shall deem
necessary or desirable for the management and operation of the Property and the
conduct of Company business (including the business of the Owner Entity).
Cordish shall open and be the sole signatory on all bank accounts and keep all
banking and accounting records with respect to the Additional Properties,
Additional Property Owner Entities, Operations Reserve and Construction
Completion Reserve, PROVIDED, HOWEVER, that Cordish shall make all information
regarding the Additional Properties, the Additional Property Owner Entities,
Operations Reserve and Construction Completion Reserve available to Inland for
its review, as required under the terms of this Article VII.
SECTION 7.2. BOOKS OF ACCOUNT.
The Company and each Owner Entity and Additional Property Owner Entity
shall keep accurate and complete books of account and records showing the assets
and liabilities, operations, transactions and financial condition of the
Company, each Owner Entity and Additional Property Owner Entity and each
Property. All such books of account and records
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may be inspected by any Member, its designees or representatives from time to
time and upon reasonable prior notice at the office of the Company or other
person maintaining the same. With respect to any Additional Properties managed
by Cordish pursuant to the provisions hereof, Cordish shall open all bank
accounts and keep all bank and accounting records and shall supply, promptly
upon request, them to the Manager for incorporation into the books and records
of the Company. Cordish hereby acknowledges and agrees that pursuant to the
terms of the Contribution Agreement, Cordish has agreed to deliver to Inland
prior to the date hereof any and all of the books and records, organizational
documents, banking records and statements and other financial statements
(including ancillary documents relating thereto) of the Company and the Owner
Entity covering all periods from the date of their formation until the date
hereof. Cordish hereby covenants and agrees to cooperate with the Manager, and
in particular will make available, as the Manager reasonably requests,
management decisions, liaison personnel, information, approvals and acceptances
so that the Manager may properly perform its obligations under this Agreement.
SECTION 7.3. OPERATING STATEMENTS.
A. As and when prepared or received by the Manager, the Manager
shall promptly provide each Member with copies of all reports, studies,
operating statements, budgets and other material documents received by the Owner
Entity and the Additional Property Owner Entities. The Manager shall at least
once every Fiscal Year have the Company's books and records reviewed at Company
expense by the Accountant. A copy of the reviewed audited financial statements
shall be submitted promptly after completion to all Members, and not later than
ninety (90) days after the end of each Fiscal Year. Cordish shall provide the
Manager with any and all reports and information regarding the Additional
Property and the Additional Property Owner Entity that the Manager requires in
order to comply with its obligations under this Section 7.3.
B. Upon the request of any Member and solely to the extent that
such information and reports are available to, and have been prepared or
received by, the Manager, the Manager shall promptly provide such requesting
Member with (i) a Net Cash Flow statement, (ii) unaudited financial statements
of the Company, including a balance sheet, statements of changes in Members'
capital accounts during such quarter, statements of profit and loss for such
quarter, all prepared in accordance with generally accepted accounting
principles applied on a consistent basis, (iii) a revised projection of income
and expenses of the Company for the remainder of the current Fiscal Year, (iv)
in the event a Capital Transaction has occurred, a statement of the Net Proceeds
of a Capital Transaction for such Capita] Transaction. Upon the request of any
Member and as promptly as practical after the end of each calendar year, the
Manager shall forward to such requesting Member the same statements described in
the preceding sentence for the preceding calendar year. Cordish shall be
responsible for the prompt preparation and delivery to the Manager of all such
reports with respect to any Additional Property and any Additional Property
Owner Entity, including, but not limited to, the reports and information
required to be delivered to Inland under the terms of Section 6.2.D hereof.
C. As soon as practicable, but within seventy-five (75) days after
the end of the Fiscal Year, and only after the written approval thereof by the
Manager, the Tax Matters Member shall, as a Company expense, furnish the Members
with all necessary tax reporting
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information required by the Members for the preparation of their respective
federal, state and local income tax returns, including each Member's pro rata
share of income, gain, loss, deductions and credits for such Fiscal Year. The
Tax Matters Member hereby covenants and agrees that no tax return of the
Company, the Owner Entity or any Additional Property Owner Entity shall be filed
with any governmental authority without the prior written consent of both
Members.
D. As soon as practicable, but in no event later than seventy-five
(75) days after the end of the Fiscal Year, and only after the written approval
by the Manager, the Tax Matters Member shall, subject to the terms of Section
7.5.G hereof as a Company expense, furnish each Member with copies of the
Company's federal partnership Return of Income and other income tax returns,
together with each Member's Schedule K-1 or analogous schedule, which returns
shall be signed by the Tax Matters Member on behalf of the Company and co-signed
by the Accountant as preparer.
E. Except as otherwise provided in this Agreement, all decisions as
to accounting principles, whether for the Company's books or for income tax
purposes (and such decisions may be different for each such purpose) and all
elections available to the Company under applicable tax law shall be made by the
Manager. The Company shall use reasonable efforts to cause all federal, state
and local income and other tax returns to be timely filed by the Company,
provided that such returns shall be subject to prior review and approval by the
Members.
F. Each Member shall promptly provide the Manager and/or the Tax
Matters Member, as applicable, with the information necessary in order to enable
the Manager and/or the Tax Matters Member to furnish the information, reports
and/or statements called for pursuant to this Section 7.3. The Manager's and/or
the Tax Matters Member's obligations to provide reports, information and
filings, shall be contingent upon the receipt of the relevant information from
the Members.
SECTION 7.4. THE ACCOUNTANT.
Xxxxx X. Xxxxxx & Associates shall be retained as the initial accountant
for the Company (the "ACCOUNTANT") for the Fiscal Year ending December 31, 2004
and shall prepare the 2004 tax return of the Company subject to the review and
written approval of the Tax Matters Member and the Manager. Except as provided
in Section 7.5.G hereof, the fees and expenses of the Accountant shall be a
Company expense. Upon reasonable advance notice to the Manager, any Member may,
in its discretion and at such Member's expense, cause a nationally recognized
accounting firm selected by such Member in its reasonable discretion to conduct
an annual audit of the books, records and accounts of the Company, any Owner
Entity or Additional Property Owner Entity (in addition to any audit conducted
by the Accountant). In the event the Manager shall desire to terminate the
employment of the Accountant after 2004, and to substitute another accountant
therefor, the Manager shall designate another nationally recognized accounting
firm. In such event, the Members shall take all actions necessary to cause the
then-existing Accountant to fully cooperate in such transition and to provide
all workpapers and other books and records to the new Accountant.
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SECTION 7.5. TAX MATTERS MEMBER.
X. Xxxxxxx is hereby designated to act as the "Tax Matters Member"
under Code section 6231(a)(7) for the Fiscal Year ending December 31, 2004 and
Inland shall be the Tax Matters Member for all other Fiscal Years. To the extent
provided in Code Sections 6221 through 6231 and subject to the provisions
hereof, the Tax Matters Member shall represent the Company and the Members in
their capacities as Members before taxing authorities or courts of competent
jurisdiction in tax matters affecting the Company or the Members in their
capacities as Members, and, subject to the limitations set forth in this
Agreement, shall file any tax returns and execute any agreements or other
documents on behalf of the Company. To the extent the Company meets the criteria
set forth in Section 6231(a)(1)(B)(i) of the Code, the Company shall not elect
to be subject to the unified partnership audit procedures under Section
6231(a)(1)(B)(ii) of the Code. The Tax Matters Member shall cause the
Accountant to report the Reorganization and the transactions contemplated in the
Contribution Agreement and herein with respect to the admission of Inland and
the Cash Payment (including the purchase by the Owner Entity of the interest of
the Withdrawing Member therein) as set forth in Section 4.1.A hereof and only
with the written approval of the Manager. The Tax Matters Member hereby
covenants and agrees to allocate the basis step-up attributable to the Existing
Property resulting from the Reorganization and admission, in the manner required
by the Manager in its sole and absolute discretion.
B. Subject to the limitations set forth in this Agreement, the Tax
Matters Member is authorized to make any and all elections for federal, state,
and local tax purposes, including, without limitation, any election, if
permitted by applicable law: (i) to adjust the basis of Company Assets pursuant
to Code sections 754, 734(b), and 743(b), or comparable provisions of state or
local income tax law, in connection with Transfers of LLC Interests and Company
distributions; (ii) to treat the Company as a partnership for income tax
purposes (or the functional equivalent thereof under applicable state and/or
local income tax law) and (iii) to treat the Owner Entity as a disregarded
entity for all tax purposes. Notwithstanding the foregoing, the Company shall
not make an election under Section 754 of the Code prior to the Closing under
Section 9.5 hereof without the prior written consent of Cordish; provided,
however, and for the avoidance of doubt, that the Manager shall be permitted, in
its sole and absolute discretion, to cause the Company to make a Section 754
election effective for the year in which the Closing under Section 9.5 occurs.
C. To the extent that such matters would have a material adverse
effect on any Member, the Tax Matters Member shall obtain the consent of the
other Members before it can (i) extend the statute of limitations for assessment
of tax deficiencies against the Members with respect to adjustments to the
Company's federal, state, or local income tax returns, or (ii) execute any
settlement agreement that binds the Members or otherwise affects the rights of
the Company and the Members.
D. Prior to the taking of any action and/or the making of any
election by the Tax Matters Member (including all such actions and/or elections
specifically referred to in this Agreement) which has a material adverse effect
on the other Member, the Tax Matters Member shall provide prompt written notice
of such intended action and/or election to the other Member. If the other Member
sends the Tax Matters Member a written objection within thirty (30) business
days of receiving the notice (or such shorter time as may be required to take
such action
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or to make such election), the Tax Matters Member and the other Member shall
confer about the intended action or election, as applicable. If agreement cannot
be reached within sixty (60) business days after the receipt by the Tax Matters
Member of the other Member's written objection (or such shorter time as may be
required to take such action or to make such election), the Tax Matters Member
shall take the action or make the election, as applicable as originally proposed
unless the other Member provides an opinion from the other Member's regular
outside legal tax counsel, or, at the option of the other Member, another
nationally recognized law firm that is reasonably acceptable to the Tax Matters
Member, in either case at the other Member's sole expense, that the action or
election, as applicable as proposed would more likely than not have an adverse
tax consequence to the other Member. In making such determination, the other
Member's counsel (or such other law firm selected by it in accordance with the
foregoing) shall be instructed to give effect to the provisions of Articles III
and IV hereof. Any dispute regarding any action to be taken under this Section
7.5.D shall be submitted to arbitration in accordance with the provisions of
Section 7.5.F hereof.
E. Within five business days of its receipt, the Tax Matters Member
shall give written notice to the other Member of the receipt of any written
notice relating to a controversy or related proceeding which has a material
adverse effect on the other Member with the Internal Revenue Service or any
state or local taxing authority, including, without limitation, (A) written
notice that the Internal Revenue Service or any state or local taxing authority
intends to examine the Company's income tax returns for any year; (B) written
notice of commencement of an administrative proceeding at the Company level
related to the Company under section 6223 of the Code; (C) written notice of any
final Company administrative adjustment relating to the Company pursuant to a
proceeding under section 6223 of the Code; (D) any request from the Internal
Revenue Service or any comparable state or local taxing agency for waiver of any
applicable statute of limitations with respect to the filing of any tax return
by the Company; (E) any information document requests from the Internal Revenue
Service or any other taxing authority, and (F) any Form 5701 or comparable state
or local audit adjustment notices. Within ninety (90) days after receipt of
notice of a final Company administrative adjustment, the Tax Matters Member
shall notify each Member if it does not intend to file for judicial review with
respect to such adjustment.
F. The Tax Matters Member shall keep the other Member fully and
promptly informed about the status of any tax controversy or related proceeding
involving the Company which could have a material adverse effect on the other
member. If, as a result of a notice provided by the Tax Matters Member under
Section 7.5.E or otherwise, the other Member believes, based upon the nature of
the government inquiry, that the government could be considering an adjustment
that would have an adverse effect upon the other Member, then other Member shall
have the right to hire and retain counsel of its choice, reasonably acceptable
to the Tax Matters Member, to represent the Company in connection with such
issue, shall have the right to control the contest of such issue, and shall
participate in such contest to the maximum extent allowable by 1aw, but shall
keep the Tax Matters Member fully informed. If the Tax Matters Member does not
agree that the government could be considering an adjustment that would have an
adverse effect upon the other Member, then this dispute shall be promptly
submitted to a senior tax partner at a nationally recognized law firm (other
than the other Member's regular outside tax counsel) selected by the other
Member and reasonably acceptable to the Tax Matters Member (the "ARBITRATOR").
The Arbitrator so selected shall be instructed to
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give effect to the provisions of this Agreement in determining whether the
adjustment could have an adverse effect on the other Member. The Arbitrator's
determination shall be final and binding on the parties and if the determination
is that the adjustment could have an adverse effect on the other Member, then
the other Member shall have the rights set forth in this Section 7.5.F. All
information provided to the Arbitrator by the Company or either Member shall be
kept strictly confidential by the Arbitrator.
G. All expenses incurred by Cordish as the Tax Matters Member (or
incurred by the Company as a result of actions taken on behalf of the Company by
Cordish as the Tax Matters Member) for the 2004 taxable year (including, but not
limited to, the costs and expenses incurred by the Company and/or Cordish for
the preparation of the 2004 tax returns of the Company and the Owner Entity and
the expenses of counsel retained by either Member to represent the Company under
section 7.5.F in connection with any tax controversy or related proceeding of
the Company) shall be borne solely by Cordish; PROVIDED, HOWEVER, that if
Cordish does not otherwise make such payments in a timely fashion, such payments
shall be paid from the Operations Reserve. All expenses incurred by Inland as
the Tax Matters Member (including the expenses of counsel retained by the other
Member to represent the Company under section 7.5.F) in connection with any tax
controversy or related proceeding of the Company will be borne equally by Inland
and Cordish; PROVIDED, HOWEVER, that if Cordish does not otherwise make its
portion of such payments in a timely fashion, such portion of such payments
shall be paid from the Operations Reserve. Nothing herein shall be construed to
restrict inland, during the periods that Inland is the Tax Matters Member, from
engaging an accounting or law firm to assist the Tax Matters Member in
discharging its duties hereunder, so long as the compensation paid by the
Company for such services is customary.
ARTICLE VIII
TRANSFER OF LLC INTERESTS
SECTION 8.1. NO TRANSFER.
A. Except as provided in this Article VIII, no Member may Transfer
any LLC Interest, except as hereinafter set forth in this Article VIII or upon
prior written consent of all of the other Members, which consent may be granted
or withheld in the sole and absolute discretion of the other Members. Any
Transfer of an LLC Interest in contravention of this Article VIII shall be null
and void and shall be deemed a material breach of, and a default under, this
Agreement, and the other Members shall have all the rights and remedies
available under this Agreement.
B. For the purposes of this Article VIII the rules applicable to
the Transfer of an LLC Interest shall apply in the same manner to transfers of
interest in the Members; PROVIDED, HOWEVER, that the following transfers shall
not be subject to this Section 8.1: (i) transfers of an interest in Inland to a
Person who, as of the date hereof, is a member of such entity, or (ii) transfers
of an interest in Inland if an Affiliate of Inland retains at least a 20%
interest, or (iii) transfers of an interest in Inland in connection with a sale
or transfer by Inland Western Retail Real Estate Trust, Inc., or any of its
Affiliates, of all or substantially all of their assets, or (iv) transfers of an
interest in Cordish as long as Xxxxx Xxxxxxx, Xxxxx Xxxxxxx, Xxxx Xxxxxxx and/or
Xxxxxxxx Xxxxxxx retains control of the business and activities of Cordish.
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SECTION 8.2. PERMITTED TRANSFERS.
A. The restrictions on Transfers under Section 8.1 shall not apply
to any (i) Transfer (for any consideration or no consideration) by Inland or
Cordish of all or any part of its LLC Interest to any 80% Owned Affiliate of the
transferor Member (provided that counsel to the non-Transferring Member
reasonably determines that such Transfer would not have any adverse tax effect
(directly or indirectly) on the non-Transferring Member), or (ii) Transfer to
any other Member.
B. A permitted transferee of a Member pursuant to Section 8.1.A
or 8.2.A hereof that acquires the LLC Interest of a Member shall not be
recognized by the Company as a Member and shall have only the rights of an
assignee of the transferor Member's LLC Interest, except upon compliance with
the terms of Section 8.2.C. A Member who assigns all of its LLC Interest to a
permitted transferee (other than the other Member) in accordance with the
provisions of this Agreement shall nevertheless remain a Member of the Company
subject to all the duties and obligations imposed on it under this Agreement
until such time as the transferee of such LLC Interest is admitted to the
Company as a substitute Member in accordance with Section 8.2.C. Upon any
permitted assignment of an LLC Interest pursuant to Section 8.2, the transferor
and transferee shall file with the Company an executed or authenticated copy of
the written instrument of assignment or transfer.
C. No transferee of the whole or a portion of a Member's LLC
Interest shall have the right to become a substituted Member in place of its
transferor unless and until all of the following conditions are satisfied:
(i) the transferor and transferee have executed and
acknowledged such instruments as the other Members may reasonably deem
necessary or desirable to effect such Transfer;
(ii) a duly executed and acknowledged written instrument of
transfer has been filed with the Company setting forth the intention of
the transferor that the transferee become a substituted Member in its
place;
(iii) the transferee accepts and agrees to be bound by all the
provisions of this Agreement by executing and delivering a counterpart
signature page hereto; and
(iv) the transfer would not materially and adversely affect
the treatment of the Company for tax purposes under the Code or the tax
laws of any state in which the Company does business.
SECTION 8.3. SUCCESSION BY OPERATION OF LAW.
A. In the event of an Event of Bankruptcy with respect to a Member
or the merger, consolidation, dissolution or liquidation of the Member, all of
such Member's rights to distributions and allocations by the Company, shall pass
to such Member's legal successor, but such legal successor shall not become a
Member of the Company without the prior written consent of the other Members,
which consent may be granted or withheld in all of the sole and absolute
discretion of such other Members.
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B. Upon occurrence of an Event of Bankruptcy of a Member, or any
other event that causes a Member to cease to be a member of the Company, the
business of the Company shall continue without dissolution. Notwithstanding any
other provision of this Agreement, each Member waives any right that it might
have under Section 18-801(b) of the Act to agree in writing to dissolve the
Company upon the occurrence an Event of Bankruptcy or any other such event.
SECTION 8.4. ADDITIONAL RESTRICTIONS ON TRANSFERS.
The LLC Interests described in this Agreement have not been registered
under the Securities Act of 1933, as amended (the "1933 ACT") or under the
securities laws of the State of Delaware or any other jurisdiction (the "STATE
ACTS"). Consequently, in addition to any and all other restrictions on
transferability set forth herein, the LLC Interests may not be sold, assigned,
pledged, hypothecated or otherwise disposed of or Transferred, except in
accordance with the provisions of the 1933 Act and the State Acts.
ARTICLE IX
DISSOLUTION AND TERMINATION OF THE COMPANY
SECTION 9.1. DISSOLUTION.
The Company shall be dissolved and commence winding up and liquidating
only upon the first to occur of any of the following:
A. The sale, condemnation or other disposition of all or
substantially all of the Properties and the receipt of all consideration
therefor;
B. At any time that there are no Members; or
C. The written election of all the Members to dissolve, wind up and
liquidate the Company.
SECTION 9.2. TERMINATION.
Notwithstanding any other provision of this Agreement, in all cases of
valid, voluntary dissolution of the Company (the parties acknowledging that, the
right of a Member to cause an involuntary dissolution of the Company or a
partition of the Company has been expressly waived, renounced and released under
Sections 2.7 and 2.8 hereof), the business of the Company shall be wound up and
the Company terminated as promptly as practicable thereafter, and each of the
following shall be accomplished:
A. The Manager shall cause to be prepared a statement setting forth
the assets and liabilities of the Company as of the date of dissolution, a copy
of which statement shall be furnished to all of the Members.
B. The property and assets of the Company shall be liquidated by
the Manager as promptly as possible, but in an orderly and businesslike and
commercially reasonable manner.
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The Manager may, in the exercise of its business judgment and if commercially
reasonable, determine to defer the sale of all or any portion of the property
and assets of the Company if deemed necessary or appropriate to realize the fair
market value of any such property or assets. In lieu of a sale of assets and a
dissolution of the Company, the Manager shall be authorized in its sole and
absolute discretion to cause the Company to purchase and redeem the Cordish LLC
Interest in full pursuant to the provisions of Sections 9.4, 9.5 and 9.6
(without regard to the time limitations therein).
SECTION 9.3. LIQUIDATING MEMBER.
Upon the dissolution of the Company, Inland shall act as the liquidating
member (in such capacity, the "LIQUIDATING MEMBER"). The Liquidating Member
shall, upon the dissolution and upon completion of the winding up of the affairs
of the Company, file appropriate certificate(s) to such effect in the proper
governmental office or offices under the LLC Act as then in effect.
Notwithstanding the foregoing, each Member, upon the request of the Liquidating
Member, shall promptly execute, acknowledge and deliver all such documents,
certificates and other instruments as the Liquidating Member shall reasonably
request to effectuate the proper dissolution and termination of the Company,
including the winding up of the business of the Company. Any tax matters that
are continuing as of the time of such liquidation and dissolution and/or that
arise after such liquidation and dissolution (if such liquidation and
dissolution should ever occur) shall be governed by the provisions of Section
7.5 hereof, and the provisions of this sentence shall survive any such
liquidation and/or dissolution of the Company.
SECTION 9.4 TERMINATION RIGHTS.
X. Xxxxxxx shall have the right, but not the obligation, to require
the Company to purchase and redeem all, but not less than all, of the Cordish
LLC Interests for the Cordish Liquidation Amount (as such term is defined in
Section 9.6.A hereof and subject to Section 9.6.B hereof) if a Redemption Notice
(as defined in Section 9.4.C below) is delivered by Cordish at any time during
the period beginning on the date that is 30 calendar months from the date hereof
and ending on the date that is 36 calendar months from the date hereof.
B. Inland shall have the right, but not the obligation, to require
the Company to purchase and redeem all, but not less than all, and Cordish shall
be required to assign all, of the Cordish LLC Interests for the Cordish
Liquidation Amount (subject to Section 9.6.B hereof), if (except as provided in
Section 9.4.E hereof) a Redemption Notice is delivered by Inland at any time
during the period beginning on the date that is 36 calendar months from the date
hereof and ending on the date that is 40 calendar months from the date hereof.
C. In order to exercise the rights to require the Company to
purchase and completely redeem the Cordish LLC Interests under this Section 9.4,
Cordish or Inland, as appropriate (the "EXERCISING MEMBER"), shall deliver to
the other Member and to the Company written notice (the "REDEMPTION NOTICE") of
the exercise of such right, which notice shall state the Exercising Member's
computation of the Cordish Liquidation Amount. The delivery of the Redemption
Notice by the Exercising Member shall constitute an irrevocable commitment by
Cordish to transfer and deliver, and the Company to purchase and redeem, all of
the Cordish LLC Interests for the Cordish Liquidation Amount. Closing on the
purchase and redemption of the Cordish
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LLC Interests shall take place in accordance with Section 9.5 hereof. Any
purchase and redemption of all of the Cordish LLC Interests under this Section
9.4 shall require the simultaneous repayment (at Closing) of all Default Loans
made pursuant to the provisions of this Agreement. All Cash Shortfall Loans and
Development Loans made by Cordish with respect to the Additional Properties
shall be repaid in full at the Closing except that if an interest in an
Additional Property Owner Entity is distributed to Cordish, then all Cash
Shortfall Loans and Development Loans made to such entity shall remain
outstanding and any distribution of Additional Property Owner Entity Interests
to Cordish pursuant to the provisions hereof shall be made subject to such Cash
Shortfall Loans and Development Loans.
D. Upon the delivery of the Redemption Notice by the Exercising
Member, Cordish shall thereupon only be entitled to receive the Cordish
Liquidation Amount and Inland shall have sole authority to act on behalf of the
Company to obtain at Closing the funds required to completely redeem the Cordish
LLC Interests, including borrowing money from third-party lenders, Members or
Affiliates and seeking Capital Contributions from additional Members to be
admitted to the Company.
E. Notwithstanding any provision of this Section 9.4 and this
Article IX to the contrary, and specifically notwithstanding the time period
during which Inland is permitted to deliver a Redemption Notice under Section
9.4.B hereof, Inland shall have the right, but not the obligation, in its sole
and absolute discretion, to deliver a Redemption Notice to Cordish and to cause
the purchase and redemption of all of the Cordish LLC Interests pursuant to the
terms of this Article IX, at any time following the occurrence of one or more of
the following events:
(i) if, there are any unpaid indemnification obligations of
Cordish and/or Xxxxx X. Xxxxxxx to any "Inland Indemnified Party" pursuant to
the terms and conditions of the Indemnification Agreement, which indemnification
obligations have been unpaid for sixty (60) days following the date that such
obligations have been either (A) liquidated and agreed to by the parties hereto
or (B) determined by an arbitrator in accordance with the terms of Section 13.12
of the Indemnification Agreement;
(ii) if, (a) Inland suffers an Indemnified Loss pursuant to
Section 10.17.B hereof and (b) an arbitration conducted under Section 10.16
hereof determines that Cordish owes or has failed to pay such Indemnified Loss
within sixty (60) days of the receipt of such notice by Cordish from Inland; or
(iii) if Cordish breaches any of the provisions of Sections
2.7, 2.8 or 9.1 hereof.
SECTION 9.5. CLOSING.
A. The closing of the redemption of the Cordish LLC Interests by
the Company pursuant to Section 9.4 (the "CLOSING") shall be held at the
principal offices of the Company and, subject to any other specific time periods
for Closing stated in this Agreement, shall occur on the date specified in the
Redemption Notice, which date shall be no sooner than 30 days and no later than
120 days following the delivery of the Redemption Notice to Cordish or Inland,
as applicable, and the Company.
- 51 -
B. At the Closing, Cordish shall transfer and assign the Cordish
LLC Interests to the Company free and clear of any liens, encumbrances or any
interests of any third party and shall execute or cause to be executed any and
all documents required to transfer fully good and clear title to the LLC
Interests being transferred, including, but not limited to, any and all
documents necessary to evidence such transfer. In the event that Cordish does
not timely execute any and all documents necessary to evidence and effect such
transfer of all of the Cordish LLC Interests and to reflect the complete and
absolute withdrawal of Cordish and its Affiliates from the Company at the
Closing, then the Manager is hereby appointed the attorney-in-fact of, and is
hereby authorized on behalf of, Cordish, to execute, acknowledge and deliver all
such documents and take all such other actions as may be required to evidence
and effect such transfer of all of the Cordish LLC Interests. Such appointment
and authorization are coupled with an interest and shall be irrevocable. The
failure by Cordish to execute any document shall not delay the Closing or cause
the Closing to be ineffective.
C. At the Closing, Inland shall cause the Company to distribute to
Cordish the Cordish Liquidation Amount and each party shall repay the Default
Loans as applicable. If ownership interests in the Additional Property Owner
Entities are distributed to Cordish as provided herein, the parties shall
execute and/or cause to be executed any and all documents required to transfer
title to the applicable ownership interests being transferred, including, but
not limited to, any and all documents necessary to evidence such transfer;
PROVIDED, HOWEVER, that the Company and Inland shall only be obligated to
deliver an assignment of such ownership interests on an "as is" basis and
without recourse to the Company or Inland. Cordish shall pay and be solely
responsible for (a) any pre-prepayment or due-on-sale penalties and (b) any
transfer, recordation, sales and excise taxes as a result of any in-kind
distributions to Cordish or otherwise as a result of the transactions
contemplated in this Article IX of this Agreement.
D. If any consents from lenders or otherwise are required in order
to carry out any provision of this Agreement, the parties hereby agree to
cooperate in good faith and will proceed promptly and diligently to obtain all
such consents; PROVIDED, HOWEVER, that the failure to obtain any such consent
may be waived by Inland in its sole and absolute discretion.
SECTION 9.6. PURCHASE PRICE ON REDEMPTION OF CORDISH LLC INTERESTS.
A. The entire purchase price payable by the Company to Cordish (or
its Affiliates) for the Cordish LLC Interest (the "CORDISH LIQUIDATION AMOUNT")
shall be an amount equal to the sum of the following:
(i) the Cordish Preferred Return and the Unpaid Cordish
Preferred Return as of the date of the Closing as reasonably determined
by the Company's Accountant, plus
(ii) The Cordish Adjusted Capital Balance as of the date of
the Closing.
The parties agree that for purposes of making the foregoing determinations, the
books of the Company shall be closed as of the Closing.
B. Notwithstanding anything in this Section 9.6 to the contrary,
Inland may elect on behalf of the Company, by delivery of written notice to
Cordish, to require Cordish to accept as full and complete payment and
consideration for the transfer and complete redemption of the
- 52 -
Cordish LLC Interests in the Company, in lieu of the cash payment of the Cordish
Liquidation Amount, an "as is" in-kind assignment and distribution to Cordish
without recourse to the Company or Inland of all (100%) of the ownership
interests in the Additional Property Owner Entities, together with all assets in
the Additional Properties Trust Estate, as defined in the Declaration of Trust.
C. If Inland does not intend to make an in-kind redemption election
under Section 9.6.B, Cordish may, by delivering written notice to Inland, elect
to require the Company to effect the complete redemption of Cordish's LLC
Interests in exchange for an in-kind distribution of all (100%) of the ownership
interests in the Additional Property Owner Entities by way of an "as is"
assignment without recourse to the Company and Inland of 100% of the ownership
interests in the Additional Property Owner Entities, together with all assets in
the Additional Properties Trust Estate, as defined in the Declaration of Trust.
Such assignment shall be the full and complete payment and consideration for the
Cordish LLC Interests, shall be in lieu of any obligation of the Company to make
a payment of the Cordish Liquidation Amount and Cordish shall have no right to
receive or demand any payment of all or any portion of the Cordish Liquidation
Amount.
D. Each party hereby covenants and agrees that following the
payment of the Cordish Liquidation Amount or following the execution of the
assignment of the ownership interests in the Additional Property Owner Entities
under the terms of Sections 9.6.B and 9.6.C of this Agreement, neither Cordish
nor any Affiliate of Cordish shall have any rights with respect to the Company,
the Owner Entity, the assets of the Company or the assets of the Owner Entity
either as owner, lender or otherwise and neither Cordish nor any Affiliate of
Cordish shall have any right, to receive any further payments or distributions
from the Company or the Owner Entity under the terms of this Agreement or
otherwise, specifically including, but not limited to, the Cordish Preferred
Return, if any, the Unpaid Cordish Preferred Return, if any, Cordish's Capital
Account and Cordish's Adjusted Capital Balance.
E. Upon the redemption of the Cordish LLC Interests, the books and
records of the Company and the Additional Property Owner Entities shall be
closed.
ARTICLE X
MISCELLANEOUS
SECTION 10.1. FURTHER ASSURANCES.
Each Member agrees to execute, acknowledge, deliver, file, record and
publish such further certificates, amendments to certificates, instruments and
documents, and do all such other acts and things as may be required by law, or
as may be required to carry out the intent and purposes of this Agreement.
SECTION 10.2. NOTICES.
All notices, demands, consents, approvals, requests or other
communications which any of the parties to this Agreement may desire or be
required to give hereunder (collectively, "NOTICES") shall be in writing, shall
comply with Section 6.1.F hereof, and shall be given by
- 53 -
personal delivery, by overnight delivery service or by United States registered
or certified mail (postage prepaid, return receipt requested) addressed as
hereinafter provided. Except as otherwise specified herein, the time period in
which a response to any notice or other communication must be made, if any,
shall commence to run on the earliest to occur of (a) if by personal delivery,
the date of receipt, or attempted delivery, if such communication is refused;
(b) if given by overnight delivery service, the first business day after the day
of delivery to the overnight carrier; and (c) if sent by mail (as aforesaid),
the date of receipt or attempted delivery, if such mailing is refused. Until
further notice, notices and other communications under this Agreement shall be
addressed to the parties listed below as follows:
(i) If to the Company or Cordish, to:
CC Investors, LLC
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Attention: President
With a copy (which shall be for informational purposes only) to:
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, XX 00000
Attention: General Counsel
(ii) If to the Company or Inland, to:
x/x Xxxxxx Xxxxxxx Xxxxxx Xxxx Xxxxxx Trust, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
and with copies (which shall be for informational purposes only)
to:
c/o The Inland Real Estate Group, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: General Counsel
and to:
Xxxx X. Xxxxxxxx III, Esquire
Xxxx Xxxxx, LLP
000 Xxxxx Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Any Member may designate another addressee (and/or change its address) for
Notices hereunder by a Notice given pursuant to this Section.
- 54 -
SECTION 10.3. INDEPENDENT REPRESENTATION.
Inland hereby acknowledges and agrees that it has consulted its
independent counsel with respect to the tax and non-tax consequences of its
investment in the Company, and that neither Cordish nor any Cordish Affiliate
shall have any 1iability to Inland or its Affiliates (except as otherwise
provided herein, in the Contribution Agreement or in the Indemnification
Agreement) as a result of any adverse consequences to Inland, direct or indirect
partner (or other equity owner) of Inland as a result of Inland's investment in
the Company or Inland's ownership of an LLC Interest in the Company. Cordish
hereby acknowledges and agrees that it has consulted its independent counsel
with respect to the tax and non-tax consequences of its investment in the
Company, and that neither Inland nor any Inland Affiliate shall have any
liability to Cordish or any Cordish Affiliate (except as otherwise provided
herein, in the Contribution Agreement or in the Indemnification Agreement) as a
result of any adverse consequences to Cordish or any Cordish Affiliate as a
result of Cordish's investment in the Company, Cordish's ownership of an LLC
Interest in the Company or Cordish's possible withdrawal from the Company. The
foregoing provision is not intended to and shall not operate to diminish or
limit the liability of either Member resulting from such Member's breach of or
default under any provision of this Agreement or under the Contribution
Agreement, nor shall it diminish or limit the liability of any party to the
Indemnification Agreement.
SECTION 10.4. GOVERNING LAW.
This Agreement, the rights and obligations of the parties hereto, and
any claims or disputes relating thereto shall be governed by and construed in
accordance with the laws of the State of Delaware (but not including the choice
of law rules thereof).
SECTION 10.5. CAPTIONS.
All titles or captions contained in this Agreement are inserted only as
a matter of convenience and for reference and in no way define, limit, extend,
or describe the scope of this Agreement or the intent of any provision hereof.
SECTION 10.6. PRONOUNS.
All pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine, and neuter, singular and plural, as the identity of the
party or parties may require.
SECTION 10.7. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding upon the parties hereto and their
respective executors, administrators, legal representatives, heirs, successors
and permitted assigns, and shall inure to the benefit of the parties hereto and,
except as otherwise provided herein, their respective executors, administrators,
legal representatives, heirs, successors and permitted assigns.
SECTION 10.8. EXTENSION NOT A WAIVER.
No delay or omission in the exercise of any power, remedy or right
herein provided or otherwise available to a Member or the Company shall impair
or affect the right of such Member
- 55 -
or the Company thereafter to exercise the same. Any extension of time or other
indulgence granted to a Member hereunder shall not otherwise alter or affect any
power, remedy or right of any other Member or of the Company, or the obligations
of the Member to whom such extension or indulgence is granted.
SECTION 10.9. CONSTRUCTION.
None of the provisions of this Agreement shall be for the benefit of or
enforceable by any creditor of the Company or any third party. No Member shall
be obligated personally for any debt, obligation or liability of the Company
solely by being a Member of the Company.
SECTION 10.10. SEVERABILITY.
In case any one or more of the provisions contained in this Agreement or
any application thereof shall be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein and other application thereof shall not in any way be effected
or impaired thereby.
SECTION 10.11. CONSENTS.
Any consent or approval to any act or matter required under this
Agreement must be in writing and shall apply only with respect to the particular
act or matter to which such consent or approval is given, and shall not relieve
any Member from the obligation to obtain the consent or approval, as
applicable, wherever required under this Agreement to any other act or matter.
SECTION 10.12. ENTIRE AGREEMENT.
This Agreement, together with the Contribution Agreement, Escrow
Agreement, the Liquidity Escrow Agreement, the Indemnification Agreement and any
other agreement ancillary or related hereto or thereto, contains the entire
agreement between the parties relating to the subject matter hereof and all
prior agreements relative hereto which are not contained herein are terminated.
Amendments, variations, modifications or changes herein may be made effective
and binding upon the parties by, and only by, the setting forth of same in a
document duly executed by each party, and any alleged amendment, variation,
modification or change herein which is not so documented shall not be effective
as to any party.
SECTION 10.13. RULES OF CONSTRUCTION.
Unless the context clearly indicates to the contrary, the following
rules apply to the construction of this Agreement:
(i) Words importing the singular number include the plural
number and words importing the plural number include the singular
number.
(ii) Words of the masculine gender include correlative words
of the feminine and neuter genders.
- 56 -
(iii) The table of contents and the headings or captions used
in this Agreement are for convenience of reference and do not constitute
a part of this Agreement, nor affect its meaning, construction, or
effect.
(iv) Words importing persons include any individual,
corporation, partnership, limited liability company, joint venture,
association, joint stock company, trust, unincorporated organization or
government or agency or political subdivision thereof.
(v) Any reference in this Agreement to a particular
"Article," "Section" or other subdivision shall be to such Article,
Section or subdivision of this Agreement unless the context shall
otherwise require.
(vi) Each reference in this Agreement to an agreement or
contract shall include all amendments, modifications, and supplements to
such agreement or contract unless the context shall otherwise require.
(vii) When any reference is made in this document or any of
the schedules or exhibits attached hereto to the Agreement, it shall
mean this Agreement, together with all other schedules and exhibits
attached hereto, as though one document.
SECTION 10.14. COUNTERPARTS.
This Agreement may be executed in any number of counterparts, and each
such counterpart will for all purposes be deemed an original, and all such
counterparts shall constitute one and the same instrument.
SECTION 10.15. EXPENSES
Subject to the terms of this Agreement and the Indemnification Agreement
to the contrary, each of Cordish and Inland hereby covenants and agrees that any
and all costs and expenses (including, but not limited to, attorney's fees and
other professional fees) incurred by each of Cordish, Inland, and their
respective Affiliates in connection with the negotiation and documentation of,
and the transactions contemplated by, this Agreement, the Contribution
Agreement, the Indemnification Agreement and the Reorganization Agreement, shall
be borne solely by the party incurring such costs and expenses and its Affiliate
and shall not be borne by the Company, the Owner Entity and any unrelated
parties. In addition to the foregoing, Cordish hereby covenants and agrees that
any and all costs and expenses (including, but not limited to, attorney's fees
and other professional fees) incurred by it on behalf of the Company and the
Owner Entity in connection with the negotiation and documentation of, and the
transactions contemplated by, this Agreement, the Contribution Agreement, the
Indemnification Agreement and the Reorganization Agreement, shall be borne
solely by Cordish and shall not be funded out of the accounts or funds of the
Company and/or the Owner Entity other than Inland's Initial Capital Contribution
and/or the Operations Reserve.
SECTION 10.16. ARBITRATION
A. In the event that any dispute shall arise between the
Company and any Member or between the Members, with respect to the application
of any of the provisions of this
- 57 -
Agreement, and such dispute is not resolved to the satisfaction of such parties
within twenty (20) days after either party shall notify the other in writing of
its desire to arbitrate the dispute (the "ARBITRATION NOTICE"), then the dispute
shall be resolved in accordance with the Commercial Arbitration Rules of the
American Arbitration Association then pertaining. The decision of the arbitrator
shall be binding, final and conclusive on the parties. Unless the parties
otherwise agree, such arbitration proceedings shall be conducted in Baltimore
City, Maryland. The arbitrator shall be selected by the American Arbitration
Association in accordance with the Commercial Arbitration Rules of the American
Arbitration Association. The fees of the arbitrator and the expenses incident to
the proceedings shall be borne by the losing party. The reasonable fees of
respective counsel engaged by the parties, and the fees of expert witnesses and
other witnesses called for by the parties, shall also be paid by the losing
party. The decision of the arbitrator shall be rendered within thirty (30) days
after the conclusion of the arbitration. A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrator in accordance with
the rules and statutes applicable thereto then obtaining. At the request of the
Company or any Member, the arbitrator may order and compel specific performance.
B. Subject to the provisions of Section 10.16.A, if the
Company or any Member brings suit or other legal proceedings to enforce the
provisions of this Agreement against the other, then the party prevailing in
such suit or proceeding shall be reimbursed by the other for all reasonable
attorneys' fees and litigation costs and expenses incurred by the prevailing
party in connection with such suit or proceeding.
C. Any lawsuit, action, or proceeding arising under this
Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.
D. Subject to the provisions of Section 10.16.A, the
Company and each Member do hereby waive trial by jury in any action, suit,
proceeding, and/or counterclaim brought by either of the parties hereto against
the other on any matters whatsoever arising out of or in any way connected with
this Agreement or any claim of injury or damage, and/or statutory remedy.
SECTION 10.17. GENERAL INDEMNITY/LIABILITY
A. The Members acknowledge and agree that the terms and conditions
of this Section 10.17 shall not limit or vitiate in any manner whatsoever, the
indemnification obligations of the Members and/or their Affiliates under the
Indemnification Agreement.
B. Each Member hereby covenants and agrees to indemnify and hold
harmless the Company, the other Members and their Affiliates from and against
any and all expenses (including reasonable attorneys' fees), losses, damages,
liabilities, charges and claims of any kind or nature whatsoever (collectively
"INDEMNIFIED LOSSES") arising out of or resulting from any fraudulent act,
negligence, willful misconduct or breach or default of the covenants and
provisions of this Agreement, by such Member.
- 58 -
C. If any third party shall notify any party hereto, or such
party's Affiliate (the "INDEMNIFIED PARTY") with respect to any matter (a "THIRD
PARTY CLAIM") which may give rise to a claim for indemnification against any
other party hereto (the "INDEMNIFYING PARTY") under this Section 10.17, then the
Indemnified Party shall promptly (and in any event within five (5) Business Days
after receiving notice of the Third Party Claim) notify each Indemnifying Party
thereof in writing; PROVIDED, HOWEVER, that the failure to so notify the
Indemnifying Party shall not affect the rights to indemnification hereunder
except to the extent that the Indemnifying Party is actually prejudiced by such
failure.
D. Any Indemnifying Party will have the right at any time to assume
and thereafter conduct the defense of the Third Party Claim with counsel of his
or its choice reasonably satisfactory to the Indemnified Party; PROVIDED,
HOWEVER, that the Indemnifying Party will not consent to the entry of any
judgment or enter into any settlement with respect to the Third Party Claim
without the prior written consent of the Indemnified Party (not to be withheld
or delayed unreasonably) unless the judgment or proposed settlement involves
only the payment of money damages and does not impose an injunction or other
equitable relief upon the Indemnified Party; PROVIDED, FURTHER, that the
Indemnifying Party will not consent to the entry of any judgment or enter into
any settlement with respect to the Third Party Claim unless and until the
Indemnifying Party obtains for the benefit of the Indemnified Party, as part of
such judgment or settlement, a complete and absolute release of any liabilities
from the third party making such Third Party Claim.
E. Unless and until an Indemnifying Party assumes the defense of
the Third Party Claim as provided in Section 10.17.D hereof, however, the
Indemnified Party may defend against the Third Party Claim in any manner it
reasonably may deem appropriate; PROVIDED, HOWEVER, that any cost and expense
incurred by the Indemnified Party in connection with such defense shall be paid
for and advanced directly by the Indemnifying Party in immediately available
funds.
F. In no event will the Indemnified Party consent to the entry of
any judgment or enter into any settlement with respect to the Third Party Claim
without the prior written consent of each of the Indemnifying Parties (not to be
withheld or delayed unreasonably).
[SIGNATURES ON NEXT PAGE]
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IN WITNESS WHEREOF, the parties hereto have duly executed this
Amended and Restated Limited Liability Company Agreement of CAPITAL CENTRE
HOLDING LLC under seal as of the day and year first above written.
CC INVESTORS LLC
By: /s/ Xxxxxxx X. Xxxxxx (Seal)
-----------------------
Xxxxxxx X. Xxxxxx, authorized person
INLAND CAPITAL HC, L.L.C.
By: Inland Western Retail Real Estate Trust,
Inc., sole member
By: /s/ Xxxxxxx Xxxxxx
----------------------------------------
Name: Xxxxxxx Xxxxxx
----------------------------------------
Title: Asst. Secretary
---------------------------------------
- 60 -
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
Names, Addresses, Initial Capital Account Balances and Percentage Interests
of Members
SCHEDULE A
INITIAL ADJUSTED INITIAL CAPITAL
CAPITAL ACCOUNT PERCENTAGE
NAME AND ADDRESS BALANCE BALANCE INTEREST
----------------------------------------------------------------------------------------------------
CC Investors, LLC $ 13,340,590 $ 13,340,590 5%
000 Xxxx Xxxxx Xxxxxx
Xxxxx 000
Xxxxxxxxx, XX 00000
Inland Capital HC, L.L.C. $ 130,050,000 $ 130,050,000 95%
c/o Inland Western Retail Real
Estate Trust, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
-----------------------------------------------------------------------------------------------------
TOTALS $ 143,390,590 $ 143,390,590 100.000%
=====================================================================================================
- 61 -
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
Regulatory Allocations
SCHEDULE 5.2
1. DEFINITIONS.
The defined terms used in this SCHEDULE 5.2 shall have meanings
specified in the Limited Liability Company Agreement to which this SCHEDULE 5.2
is attached:
2. REGULATORY ALLOCATIONS.
A. Prior to any other allocations under Article V, the following
special allocations shall be made in the following order:
1. MINIMUM GAIN CHARGEBACK. Except as otherwise provided in
Section 1.704-2(f) of the Treasury Regulations, notwithstanding any
other provision of Section 5.2, if there is a net decrease in Company
Minimum Gain during any fiscal year, each Member shall be specially
allocated items of Company income and gain for such fiscal year (and, if
necessary, subsequent fiscal years) in an amount equal to such Member's
share of the net decrease in Company Minimum Gain, determined in
accordance with Treasury Regulations Section 1.704-2(g). Allocations
pursuant to the previous sentence shall be made in proportion to the
respective amounts required to be allocated to each Member pursuant
thereto. The items to be so allocated shall be determined in accordance
with sections 1.704-2(f) (6) and 1.704-2(j) (2) of the Treasury
Regulations. This Paragraph A.1 is intended to comply with the minimum
gain charge back requirement in Section 1.704-2(f) of the Treasury
Regulations and shall be interpreted consistently therewith.
2. MEMBER MINIMUM GAIN CHARGEBACK. Except as otherwise
provided in Section 1.704-2(i) (4) of the Treasury Regulations,
notwithstanding any other provision of Section 5.2, if there is a net
decrease in Member Nonrecourse Debt Minimum Gain attributable to a
Member Nonrecourse Debt during any fiscal year, each Member who has a
share of the Member Nonrecourse Debt Minimum Gain attributable to such
Member Nonrecourse Debt, determined in accordance with Section
l.704-2(i) (5) of the Treasury Regulations, shall be specially allocated
items of Company income and gain for such fiscal year (and, if
necessary, subsequent fiscal years) in an amount equal to such Member's
share of the net decrease in Member Nonrecourse Debt, determined in
accordance with Treasury Regulations Section 1.704-2(i) (4).
Allocations pursuant to the previous sentence shall be made in
proportion to the respective amounts required to be allocated to each
Member pursuant thereto. The items to be so allocated shall be
determined in accordance with Sections 1.704-2(i) (4) and
1.704-2(j) (2) of the Treasury
- 62 -
Regulations. This Paragraph A.2 is intended to comply with the minimum
gain charge back requirement in Section 1.704-2(i) (4) of the Treasury
Regulations and shall be interpreted consistently therewith.
3. QUALIFIED INCOME OFFSET. Any Member who unexpectedly
receives any adjustment, allocation, or distribution described in
Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(5) or (6) shall be
specially allocated items of income and gain (consisting of a PRO RATA
portion of each item of Company income, including gross income and gain
for such year) in an amount and manner sufficient to eliminate any
deficit balance in such Member's Capital Account resulting therefrom, as
quickly as possible, such allocations to be made in accordance with the
"qualified income offset" provisions of Treasury Regulation Section
1.704-1(b)(2)(ii)(d)(3).
4. GROSS INCOME ALLOCATION. In the event any member has a
deficit Capital Account at the end of any fiscal year which is in excess
of the amount such Member is obligated to restore pursuant to the
penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5), each such Member shall be specifically allocated items of
Company income and gain in the amount of such excess as quickly as
possible, provided that an allocation pursuant to this Paragraph A.4
shall be made only if and to the extent that such Member would have a
deficit Capital Account in excess of such amount after all other
allocations provided for in Article V have been made as if this
Paragraph A.4 were not in the Agreement.
5. MEMBER NONRECOURSE DEDUCTIONS. Any Member Nonrecourse
Deductions for any fiscal year shall be specially allocated to the
Member who bears the economic risk of loss with respect to the Member
Nonrecourse Debt to which such Member Nonrecourse Deductions are
attributable in accordance with Treasury Regulations Section
1.704-2(i) (1).
B. SECTION 754 ADJUSTMENTS. To the extent an adjustment to the
adjusted tax basis of any Company asset, pursuant to Code Section 734(b) or Code
Section 743(b) is required, pursuant to Treasury Regulations Section
1.704-1(b)(2)(iv)(m)(2) or 1.704-1(b)(2)(iv)(m)(4), to be taken into account in
determining Capital Accounts as the result of a distribution to a Member in
complete liquidation of such Member's interest in the Company, the amount of
such adjustment to Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated to the
Members in accordance with their interests in the Company in the event Treasury
Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to whom
such distribution was made in the event Treasury Regulations Section
1.704-1(b)(2)(iv)(m)(4) applies.
- 63 -
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
DESCRIPTION OF EXISTING PROPERTY
AND OWNER ENTITY
EXHIBIT A
A. OWNER ENTITY: Capital Centre LLC, a Maryland limited liability company
B. DESCRIPTION OF EXISTING PROPERTY AND RESERVED PARCEL: (See Attached).
A-1
CAPITAL CENTRE
PROPERTY DESCRIPTIONS
METES AND BOUNDS DESCRIPTION
XXX 0 XXXXXXX XXXXXX
XXXX BOOK REP 000 XXXXX 00
XXXXXXX XXXXXXXXX XX XXXXXX XXXXXX'X XXXXXX
LIBER 14243 FOLIO 187
KENT NO. 13 ELECTION DISTRICT
PRINCE GEORGE'S COUNTY, MARYLAND
BEGINNING AT A POINT IN THE EASTERLY RIGHT-OF-WAY LIMITS OF
CAPITAL BELTWAY, INTERSTATE ROUTE 95 (A VARIABLE WIDTH RIGHT-OF-WAY),
150.00 FEET EASTERLY OF AND PERPENDICULAR TO BASELINE STATION 823+98.37,
THENCE RUNNING WITH THE EASTERLY RIGHT-OF-WAY LIMITS OF SAID CAPITAL
BELTWAY, INTERSTATE ROUTE 95, THE FOLLOWING SIX COURSES AND DISTANCES;
1. 1569.32 FEET ALONG THE ARC OF A CURVE TO THE RIGHT, HAVING A RADIUS OF
3,669.72 FEET, A CHORD BERING AND DISTANCE OF NORTH 04 DEGREES - 32
MINUTES - 12 SECONDS WEST, 1,557.39 FEET TO A POINT, THENCE;
2. CONTINUING NORTH 27 DEGREES - 18 MINUTES - 00 SECONDS EAST, 177.18 FEET
TO A POINT, THENCE;
3. CONTINUING NORTH 14 DEGREES - 59 MINUTES - 19 SECONDS EAST, 153.49 FEET
TO A POINT, THENCE;
4. CONTINUING NORTH 24 DEGREES - 11 MINUTES - 09 SECONDS EAST, 237.78 FEET
TO A POINT, THENCE;
5. CONTINUING NORTH 33 DEGREES - 30 MINUTES - 48 SECONDS EAST, 351.74 FEET
TO A POINT, THENCE;
6. CONTINUING NORTH 67 DEGREES - 00 MINUTES - 23 SECONDS EAST, 131.26 FEET
TO A POINT MARKING THE INTERSECTION OF THE EASTERLY RIGHT-OF-WAY LIMITS
OF SAID CAPITAL BELTWAY, INTERSTATE ROUTE 95 WITH THE SOUTHERLY
RIGHT-OF-WAY LIMITS OF ARENA DRIVE (A VARIABLE WIDTH RIGHT-OF-WAY),
THENCE WITH THE SOUTHERLY RIGHT-OF-WAY LIMITS OF SAID ARENA DRIVE, THE
FOLLOWING SIX COURSES AND DISTANCES;
7. SOUTH 64 DEGREES - 46 MINUTES - 55 SECONDS EAST, 100.88 FEET TO A
POINT, THENCE;
8. CONTINUING SOUTH 50 DEGREES - 40 MINUTES - 30 SECONDS EAST, 96.97 FEET
TO A POINT, THENCE;
9. CONTINUING SOUTH 40 DEGREES - 48 MINUTES - 09 SECONDS EAST, 200.00 FEET
TO A POINT, THENCE;
10. CONTINUING SOUTH 47 DEGREES - 04 MINUTES - 47 SECONDS EAST, 100.60 FEET
TO A POINT, THENCE;
11. CONTINUING SOUTH 40 DEGREES - 48 MINUTES - 09 SECONDS EAST, 70.13 FEET
TO A POINT OF CURVATURE, THENCE;
1
12. CONTINUING 384.22 FEET ALONG THE ARC OF A CURVE TO THE LEFT, HAVING A
RADIUS OF 829.29 FEET, A CHORD BEARING AND DISTANCE OF SOUTH 54
DEGREES - 04 MINUTES - 31 SECONDS EAST, 380.79 FEET TO A POINT MARKING
THE INTERSECTION OF THE SOUTHERLY RIGHT-OF-WAY LIMITS OF SAID ARENA
DRIVE WITH THE DIVISION LINE BETWEEN THE LANDS OF XXXXXX X. XXXXXXXXX,
TRUSTEE (LIBER 7692 FOLIO 634), ON THE EAST AND SAID XXX 0, XXXXXXX
XXXXXX, XX XXX XXXX, THENCE WITH SAID DIVISION LINE;
13. SOUTH 35 DEGREES - 20 MINUTES - 53 SECONDS EAST, 1,213.95 FEET TO A
POINT MARKING THE INTERSECTION OF THE DIVISION LINE BETWEEN THE LANDS OF
WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY (LIBER 15518 FOLIO 695),
ON THE SOUTH AND SAID XXX 0, XXXXXXX XXXXXX, XX XXX XXXXX, THENCE WITH
SAID DIVISION LINE;
14. SOUTH 61 DEGREES - 30 MINUTES - 52 SECONDS WEST, 39.50 FEET TO A POINT,
THENCE CONTINUING WITH SAID DIVISION LINE AND THE DIVISION LINE BETWEEN
XXXXX X. XXXXXX DRIVE (PLAT BOOK NLP 104 PLAT NO. 28), AND THE LANDS OF
PARCEL A, LARGO CENTER WEST (PLAT BOOK NLP 115 PLAT NO. 35), ON THE
SOUTH AND SAID XXX 0, XXXXXXX XXXXXX, XX XXX XXXXX, THENCE;
15. SOUTH 60 DEGREES - 36 MINUTES - 52 WEST, 1,880.84 FEET TO A POINT
MARKING THE INTERSECTION OF SAID DIVISION LINE WITH THE DIVISION LINE
BETWEEN SAID PARCEL X, XXXXX XXXXXX XXXX, XX THE WEST AND SAID XXX 0,
XXXXXXX XXXXXX, XX XXX XXXX, THENCE WITH SAID DIVISION LINE;
16. SOUTH 04 DEGREES - 23 MINUTES - 08 SECONDS EAST, 578.15 FEET TO A POINT
MARKING THE INTERSECTION OF SAID DIVISION LINE, WITH THE EASTERLY
RIGHT-OF-WAY LIMITS OF SAID CAPITAL BELTWAY, INTERSTATE ROUTE 95, THENCE
WITH THE EASTERLY RIGHT-OF-WAY LIMITS OF SAID CAPITAL BELTWAY,
INTERSTATE ROUTE 95;
17. NORTH 16 DEGREES - 47 MINUTES - 16 SECONDS WEST, 720.23 FEET TO THE
PLACE OF BEGINNING.
CONTAINING 3,020,251 SQUARE FEET OR 69.3354 ACRES, MORE OR LESS
THE PROPERTY IS SUBJECT TO RESTRICTIONS, COVENANTS AND/OR EASEMENTS, AS
CONTAINED IN A TITLE COMMITMENT REPORT PREPARED BY FIRST AMERICAN TITLE
INSURANCE COMPANY, COMMITMENT NUMBER MX-1580 WITH AN EFFECTIVE DATE OF
AUGUST 31, 2003.
2
CAPITAL CENTRE
RESERVE PARCEL
PARTICULAR DESCRIPTION
10.8838 PARCEL OF LAND
XXX XXXXXXXXX XX XXX XXXXXXX XXXXXX
XXXX (No.13) ELECTION DISTRICT
PRINCE GEORGE'S COUNTY, MARYLAND
BEGINNING FOR THE SAME at a point on the Easterly Right of Way of the Capital
Beltway, Interstate Route 95 (a variable width Right of Way), 150.00' Easterly
from and perpendicular to baseline station 823+98.37, thence running with the
Easterly Right of Way Line of said Xxxxxxx Xxxxxxx, Xxxxxxxxxx Xxxxx 00,
1) Northwesterly by a curve to the right, having a Radius of
3,669.72', an Arc Length of 955.21', subtended by a Chord of N
09 DEG. 19'51" W, 952.52', thence running for new line of division
through the Lands of The Boulevard at the Capital Centre, the
following nine (9) courses and distances, viz:
2) N 88 DEG. 12'48" E, 114.48',
3) S 26 DEG. 20'11" E, 43.06',
4) S 38 DEG. 12'15" E, 38.77',
5) S 48 DEG. 15'10" E, 30.50',
6) S 54 DEG. 32'59" E, 36.41',
7) S 55 DEG. 48'16" E, 161,86',
8) S 44 DEG. 46'17" E, 34.04',
9) N 49 DEG. 26'17" E, 24.06',
10) S 29 DEG. 13'01" E, 704.40', thence running with the Southerly
outline of the Lands of The Boulevard at the Xxxxxxx Xxxxxx,
00) X 00 XXX. 36'52" W, 472.42',
12) S 04 DEG. 23'08" E, 578.15', thence running with the aforesaid
Easterly Right of Way Line of the Xxxxxxx Xxxxxxx, Xxxxxxxxxx
Xxxxx 00,
00) N 16 DEG. 47'16" W, 720.23' to the Point of Beginning.
CONTAINING 10.8838 Acres (474,098 SQ.FT.) of Land, more or less.
1
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
TERMS OF APPROVED FINANCING
EXHIBIT B
The following restrictions and limitations will be in place for financing
secured by a Property:
(i) Any Approved Financing must be nonrecourse to the Company (other
than typical carve-outs provided by any person other than the Company;
(ii) Any Approved Financing with respect to the Existing Property
must be arms length and on commercially reasonably terms;
(iii) No portion of Approved Financing may, with respect to the
Existing Property, be cross defaulted or cross collateralized with any other
properties.
(iv) Unless Inland or Cordish otherwise agree to bear any such cost
or expense, the Approved Financing documents must permit (direct or indirect)
transfers of the property encumbered by such Approved Financing to any one or
more Persons who are Members of the Company as of the date hereof;
(v) If securitized financing is to be obtained, the Owner Entity or
Additional Property Owner Entity, as applicable, shall form a "single purpose"
limited liability company ("SPE") which shall be owned 100% by the Owner Entity
or Additional Property Owner Entity, as the case may be, and which SPE may act
as the borrower of such Approved Financing. In such event, the SPE shall be
considered to be part of the definition of Owner Entity or Additional Property
Owner Entity, as the case may be, for all purposes of this Agreement; and
(vi) The total amount of the Approved Financing secured by an
Existing Property shall not exceed $75.0 million in the aggregate on the
Existing Property.
X-x
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
FORM OF REIT DECLARATION OF TRUST
EXHIBIT C
THE CAPITAL CENTRE HOLDING
PROTECTIVE TRUST
THIS DECLARATION OF TRUST (this "DECLARATION") is made and entered into
on July __, 2004, by CAPITAL CENTRE HOLDING LLC, a Delaware limited liability
company, its successors or assigns, as Grantor (the "GRANTOR"), inland Capital
HC, L.L.C. (the "Trustee") and CC Investors LLC (the "ADDITIONAL PROPERTIES
TRUSTEE").
W I T N E S S E T H:
WHEREAS, the Grantor desires to establish a trust (the "TRUST") for the
benefit of [The Inland Western Retail Real Estate Protective Trust, Inc.] (the
"BENEFICIARY"); and
WHEREAS, the Grantor hereby declares that henceforth the Trustee shall
hold the property described in Schedule A, Part I annexed hereto and
incorporated herein, and the Grantor hereby declares that as of July __, 2004,
and as of 11:59:59 p.m. eastern standard time of each day preceding the last day
of any calendar quarter in which the Grantor and/or any Controlled Partnership
Subsidiary (as defined in Schedule A, Part II) owns property described in
Schedule A, Part II and Part III, the (i) Trustee will hold, the property
described in Schedule A, Part II annexed hereto and incorporated herein,
together with any additional property which may be added to the Trust from time
to time by the Grantor or otherwise, and all investments and reinvestments
thereof (the "TRUST ESTATE") and (ii) the Additional Properties Trustee will
hold, the property described in Schedule A, Part III annexed hereto and
incorporated herein, together with any additional property which may be added to
the Trust from time to time by the Grantor or otherwise, and all investments and
reinvestments thereof (the "ADDITIONAL PROPERTIES TRUST ESTATE"), IN TRUST, for
the uses and purposes and with the powers and authority and upon the terms and
conditions herein contained.
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ARTICLE I
DISTRIBUTION OF INCOME AND PRINCIPAL; TERMINATION
1. DISTRIBUTION OF INCOME. The Trustee shall hold, manage, invest
and reinvest the Trust Estate and shall collect the income therefrom in
accordance with the terms of this Declaration. The Trustee shall not distribute
any of the income or proceeds of the Trust Estate to the Beneficiary other than
as provided in Section 2 of this Article I hereof. The Additional Properties
Trustee shall hold, manage, invest and reinvest the Additional Properties Trust
Estate, and shall collect the income therefrom in accordance with the terms of
this Declaration. The Additional Properties Trustee shall not distribute any of
the income or proceeds of the Additional Properties Trust Estate to the
Beneficiary other than as provided in Section 2 of this Article I hereof.
2. DISTRIBUTION OF PRINCIPAL; TERMINATION. The Trustee shall not
transfer all or any part of the Trust Estate, and/or any income accrued or
accumulated thereon, to the Beneficiary (or to any designated assignee of such
Beneficiary), unless and until approved by the Trustee or unless as otherwise
provided in the Amended and Restated Limited Liability Company Agreement of
Grantor dated as of _____, 2004 (the "LLC AGREEMENT"). The Additional Properties
Trustee shall not transfer all or any part of the Additional Properties Trust
Estate, and/or any income accrued or accumulated thereon, to the Beneficiary (or
to any designated assignee of such Beneficiary), unless and until approved by
the Additional Properties Trustee or unless as otherwise provided in the LLC
Agreement. The Trust hereunder shall terminate upon the earlier of (i) the
distribution of the entire remaining Trust Estate and Additional Properties
Trust Estate to the Beneficiary or (ii) the date that is twenty-one (21) years
from the date hereof.
ARTICLE II
GRANTOR NOT TREATED AS BENEFICIARY OR OWNER OF TRUST ESTATE OR
ADDITIONAL PROPERTIES TRUST ESTATE
The Grantor intends that it not be treated as a beneficiary of the Trust
for any purposes or as the owner of any part of the Trust Estate or Additional
Properties Trust Estate for federal income tax purposes pursuant to Subtitle A,
Chapter II, Part 1E of the Internal Revenue Code of 1986, as amended, (the
"CODE") or any successor provisions thereto, and all provisions of this
Declaration shall be construed so as to effectuate this intent.
ARTICLE III
POWERS OF TRUSTEE
1. CONSTRUCTION. The Trustee shall have the following powers with
respect to the Trust Estate and the Additional Properties Trustee shall have the
following powers with respect to the Additional Properties Trust Estate, The
term "Trustee" for purposes of this Article III shall mean either the Trustee or
the Additional Properties Trustee as is appropriate and the term
C-2
"Trust Estate" shall mean the Trust Estate or the Additional Properties Trust
Estate as is appropriate.
2. GENERAL POWERS. Subject to Paragraph 7, the Grantor hereby gives
to the Trustee, its substitutes or successors, in addition to, and not by way of
limitation on, any and all powers and authority conferred upon it by law, the
following powers and authority which may be exercised by it under this
Declaration at any time and from time to time for any purpose without the
necessity of giving notice to, or of obtaining authorization or confirmation
with respect thereto from, any court or from the Grantor (except as otherwise
set forth in the following subsections):
a. To hold and retain all or any part of the Trust
Estate in the form in which the same may be at the time of
receipt thereof by it as long as it deems advisable, to purchase
or acquire for investment, by liquidation of any such asset or
otherwise, any additional property of any kind or nature
(including, without limitation, any real property or any
interest in real property, any stocks, whether common, preferred
or otherwise, participation in any discretionary common trust
fund or other investment fund administered by any fiduciary
hereunder, bonds, secured or unsecured, debentures, obligations,
mortgages, or other securities) and to invest and reinvest the
same as part of the Trust Estate, even though such holding,
purchase, acquisition, investment or reinvestment, at any time
or from time to time, may be non-income producing or
underproductive, or otherwise would not be permitted by law for
the investment of trust funds or would not be considered
appropriate for retention by a trustee; PROVIDED THAT any
disposition of all or any part of the Trust Estate and/or any
investment or reinvestment of any proceeds of any disposition of
any portion of the Trust Estate should require the written
consent of each Trustee and the Beneficiary.
b. To sell, exchange, give options upon, partition
or otherwise alter any property at any time forming part of the
Trust Estate, at public or private sale, for such purposes, and
upon such terms, in such manner and at such prices as it
determines to be advisable, and to make, execute and deliver any
and all stock powers, deeds, conveyances, bills of sale, leases,
mortgages and other instruments necessary thereto, PROVIDED THAT
any such action shall require the written consent of each
Trustee and the Beneficiary.
c. To renew or extend the time of payment of any
obligation, including taxes, whether such obligation is secured
or unsecured or payable to or by it, for as long a period or
periods of time and upon such terms as it determines; and to
pay, adjust, settle, compromise, arbitrate or contest any claim
or demand, including a claim or demand for taxes, in favor of or
against it, upon such terms as it deems advisable.
C-3
d. To borrow money from any person for such periods
of time and upon such commercially reasonable terms and
conditions for any purpose connected with the protection,
preservation or administration of this Trust and the Trust
Estate, whenever in its judgment the same is considered
advisable; to execute promissory notes or other obligations for
amounts so borrowed; and to secure the payments of any amounts
so borrowed by pledge, deed of trust or mortgage of any property
forming a part of the Trust Estate, PROVIDED THAT any such
action shall require the written consent of each Trustee and the
Beneficiary.
e. To vote or assign, the right to vote, in person
or by general or limited proxy, any shares of stock or other
securities held by the Trust at any and all meetings of
stockholders for any and all purposes without any limitation
whatsoever; and to refrain from voting with respect thereto,
PROVIDED THAT any such action shall require the written consent
of each Trustee and the Beneficiary.
f. To exercise all options, rights and privileges;
to convert stocks, bonds, notes, mortgages, or other property
into stocks, bonds, notes, mortgages, or other property; to
grant or receive put and call options, engage in hedging
transactions, and acquire derivatives with respect to all or any
part of the Trust Estate; to subscribe for additional or other
stocks, bonds, notes, mortgages, or other property, and to make
such conversions and subscriptions and to make payments
therefor; and to hold such stocks, bonds, notes, mortgages, or
other property so acquired as investments, PROVIDED THAT any
such action shall require the written consent of each Trustee
and the Beneficiary.
g. To consent, directly or through a committee or
other agent, to the reorganization, consolidation, merger,
dissolution or liquidation, foreclosure or lease or sale of
assets, incorporation or reincorporation, or readjustment of the
capital or financial structure of any corporation or other
entity in which the Trust may have any interest; to serve as a
member of my stockholders' or bondholders' protective committee;
to deposit any such stock or other securities in accordance with
any such transaction; to pay any assessments, expenses and sums
of money which may be required for the protection or furtherance
of the interests of the Trust with reference thereto; and to
receive and retain as investments of the Trust any new
securities issued as a result of the execution of any such
transaction, whether or not they otherwise would be permitted by
law for the investment of Trust funds or would be considered
appropriate for retention by a trustee; and to make any payment
and
C-4
to take any steps which may be necessary or proper to enable the
Trust to obtain the benefit of any such transaction; PROVIDED
THAT any matter that requires the vote of the holders of shares
of stock that are held as part of the Trust Estate shall require
the written consent of each Trustee and the Beneficiary.
h. To employ any person or persons to handle the
management or maintenance of any property forming a part of the
Trust Estate, including receipt and payment of money, without
being liable for loss incurred thereby; and to employ such
investment or legal counsel, financial advisors, accountants,
bookkeepers, agents, custodians, experts, clerks or other
persons as the Trustee deems advisable in the administration of
the Trust Estate, and to compensate them in such amounts as the
Trustee deems reasonable, and to charge the expenses thereof to
income or principal or both as the Trustee determines, and to
rely on information or advice furnished by such persons and to
delegate to them any discretions which the Trustee deems proper.
i. To register any property in the name of its
nominee or nominees, without qualification or description, or to
hold the same unregistered or in such other form that title
shall pass by delivery, or, in the case of a fiduciary, in its
own name without qualification or description.
j. To maintain and keep the Trust Estate, or any
portion thereof, at any place in the United States or elsewhere,
or with a depository or custodian at any such place, as the
Trustee determines.
k. To carry insurance against such hazards and in
such amounts, with either stock companies or mutual companies,
as it deems advisable.
l. To exercise all powers and authority conferred
upon the Trustee under law or by this Declaration with respect
to all accumulations of income held hereunder.
m. To exercise all powers and authority, including
any discretion conferred upon the Trustee in this Declaration,
after the termination of the Trust until the Trust Estate is
fully distributed.
n. To execute and deliver agreements, assignments,
bills of sale, contracts, deeds, notes, powers of attorney,
stock powers, proxies, receipts, and other instruments in
writing which in the Trustee's judgment are necessary or
desirable for the proper management, investment and discharge of
the Trust and the Trust
C-5
Estate or for the exercise of any power or authority conferred
upon the Trustee in this Declaration, PROVIDED THAT the written
consent of each Trustee and the Beneficiary shall be required as
to any matter for which such consent is required under any other
subparagraph of this paragraph 2.
3. COMPREHENSIVENESS OF POWERS AND CONCLUSIVENESS OF EXERCISE OF
DISCRETION. The powers and authority herein granted to the Trustee may be
exercised in whole or in part at any time and from time to time and shall be
deemed to be supplementary to and not exclusive of the general powers of a
trustee pursuant to law and shall include all powers necessary to carry the same
into effect. The enumeration of specific powers herein shall not be construed
in any way to limit or affect the general powers herein granted. In the exercise
of each such power, whether specific or general, the Trustee shall be required
to use the degree of judgment and care that a reasonable, prudent investor would
use if it were the owner of the assets of the Trust Estate, having due regard
for the preservation of the assets and the value thereof. Within the scope of
the discretion allowed to the Trustee, the Trustee's judgment as to the
advisability and mode of exercising any such power or authority shall be final
and conclusive upon all persons interested or who may become interested in the
Trust Estate or any Trust created hereunder.
4. AUTHORITY TO ACCEPT ADDITIONAL PROPERTY. The Trustee is
authorized and empowered to receive additional property from any other person as
additions to the Trust created hereunder, and to hold the same in trust and to
administer it as an integral part thereof pursuant to the terms and provisions
hereof.
5. LIMITATIONS ON LIABILITY. The Trustee shall not be liable for
the acts, omissions, or defaults of any agent appointed with due care, or of any
other Trustee. The Trustee shall not be obliged to examine the accounts, records
or acts of a previous Trustee or any allocation of such Trustee. The Trustee
shall not be liable for failure to demand or contest an accounting of any other
Trustee, or of any predecessor, or otherwise to compel any Trustee to redress a
breach of trust, unless so requested in writing by the other Trustee and the
Beneficiary.
6. NON-JUDICIAL ACCOUNTINGS. In order to avoid the expense and
delay incident to a judicial settlement of its accounts, the Trustee from time
to time during the term of any Trust hereunder, in the Trustee's sole and
absolute discretion, may render an accounting of its proceedings as Trustee to
the Grantor, who shall have full power to settle finally any such accounting and
on the basis of such settlement to release the Trustee from all liability for
its acts or omissions as Trustee. Such settlement and release shall be binding
upon all persons interested or who may become interested in the Trust Estate or
any trust created hereunder (including creditors), including those who may be
under legal disability or not yet in being, and shall have the force and effect
of a final decree, judgment or order of a court of competent jurisdiction
rendered in an appropriate action or proceeding for an accounting in which
jurisdiction was duly obtained over all necessary and proper parties. The
foregoing provisions, however, shall not preclude the Trustee from having its
accounts judicially settled if it shall so desire.
C-6
7. LIMITATION ON TRUSTEE'S POWERS. At any time that the Grantor is
serving as Trustee, the Grantor shall exercise the powers granted hereunder only
in its fiduciary capacity and for the sole and exclusive benefit of the
Beneficiary. None of the powers granted to the Trustee hereunder shall enable
any person to (i) buy, exchange, or otherwise deal with the Trust Estate or any
income accrued thereon for less than adequate and full consideration in money or
money's worth, other than by a distribution to the Beneficiary pursuant to
Article I hereof; (ii) borrow the principal of the Trust, directly or
indirectly, without adequate interest or security; (iii) require the Trustee to
exchange all or any part of the Trust Estate by substituting other property of
equal value; or (iv) require the Trustee to vote any corporate stock or other
securities held as a part of the Trust Estate other than in the exercise of the
Trustee's fiduciary duties to the Beneficiary.
8. EXONERATION FROM BOND. Neither the Trustee nor any successor
Trustee hereunder shall be required to give or file any bond or other security
for the faithful performance of the duties of such office.
ARTICLE IV
SUCCESSOR TRUSTEES
1. APPOINTMENT OF SUCCESSOR. If the Trustee named herein shall
resign or otherwise cease to act as a Trustee hereunder, the Beneficiary shall
appoint a qualified individual or entity to serve as replacement and successor
Trustee. Any such appointment shall be in writing and delivered to the
individual or entity being appointed. If the Additional Properties Trustee named
herein shall resign or otherwise cease to act as Additional Properties Trustee
hereunder, the Beneficiary shall appoint a qualified individual or entity to
serve as replacement and successor Additional Properties Trustee. Any such
appointment shall be in writing and delivered to the individual or entity being
appointed.
2. MEANING OF TERM WITH SUCCESSOR TRUSTEE. The term "Trustee" and
"Additional Properties Trustee" as used herein shall be deemed to include any
successor Trustee whenever the same shall be acting in such capacity hereunder.
ARTICLE V
MEANING OF TERMS
As used in this Declaration, the masculine, feminine or neuter genders
shall be deemed to include all genders and the singular shall be deemed to
include the plural and vice versa, except where any such construction would be
unreasonable.
C-7
ARTICLE VI
CHOICE OF LAW
All questions, whether of administration, validity or effect, arising
under or with respect to this Declaration or the Trust hereby created, and all
and several of the respective rights, duties, benefits and liabilities of the
parties hereto or any other persons interested or who may become interested in
the Trust Estate, the Additional Properties Trust Estate or any Trust created
hereunder, shall be governed by and determined under and in accordance with the
laws of the State of Maryland.
ARTICLE VII
BINDING ON SUCCESSORS
This Declaration shall extend to and be binding upon the executors,
administrators, legal representatives, successors and assigns of the parties
hereto.
ARTICLE VIII
IRREVOCABILITY
The Grantor has been fully advised as to the legal effect of the
execution of this instrument and informed of the character and amount of the
property being made subject hereto and declares that this Trust shall be
irrevocable and that there shall hereafter be no power at any time to revoke,
change or annul any of the provisions herein contained; except that other
properties may hereafter be brought within the operation of this Trust. The
Grantor shall execute such further instruments as shall be necessary to vest the
Trustee and the Additional Properties Trustee with full title to the property
hereby transferred.
ARTICLE IX
Each of the Trustee and the Additional Properties Trustee, by joining in
the execution of this Declaration, signifies its acceptance of this Trust on and
subject to the terms and conditions hereof and hereby acknowledges its receipt
of the Trust Estate and the Additional Properties Trust Estate.
ARTICLE IX
This Declaration may be executed in any number of counterparts, and each
such counterpart will for all purposes be deemed an original, and all such
counterparts shall constitute one and the same instrument.
END OF PAGE
[SIGNATURES APPEAR ON FOLLOWING PAGE]
C-8
IN WITNESS WHEREOF, the undersigned has executed this Declaration as of
the date first above mentioned.
GRANTOR:
CAPITAL CENTRE HOLDING LLC
By:
-------------------------------------
Its:
-------------------------------------
Witness:
--------------------------------
TRUSTEE:
INLAND CAPITAL HC, L.L.C.
By:
-------------------------------------
Its:
-------------------------------------
Witness:
-------------------------------- ADDITIONAL PROPERTIES TRUSTEE:
CC INVESTORS LLC
By:
-------------------------------------
Its:
-------------------------------------
Witness:
--------------------------------
C-9
SCHEDULE A, PART I
TRUST ESTATE
$100.00
C-10
SCHEDULE A, PART II
TRUST ESTATE
1. Any and all equity securities, within the meaning of Section 856(c) of
the Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary(1) which are not owned, directly or indirectly, by an
"Additional Properties Owner Entity," as such term is defined in the LLC
Agreement, and issued by any entity treated as a corporation for federal income
tax purposes under Section 7701 of the Code, other than by a "taxable REIT
subsidiary" under Section 856(l) of the Code, if Inland Western Retail Real
Estate Trust, Inc., a Maryland corporation (the "REIT"), an indirect "partner"
in Grantor, otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the last day of the end of any calendar quarter, unless such
equity securities are otherwise considered "real estate assets" within the
meaning of Section 856(c)(5) of the Code; PROVIDED, HOWEVER, that the securities
of any issuer includible in the Trust Estate pursuant to this paragraph 1, shall
be only the portion of such securities sufficient to reduce the RElT's ownership
(as determined for purposes of Section 856 of the Code) of such securities to
less than 10 percent of the total value of the outstanding securities of such
issuer.
2. Any and all debt securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary, which are not owned, directly or indirectly, by an
Additional Properties Owner Entity, and issued by any corporation, partnership,
limited liability company, or other person or entity other than by:
(a) a "taxable REIT subsidiary" under Section 856(l) of the Code or
a "qualified REIT subsidiary" under Section 856(i) of the Code;
(b) a corporation (or other entity treated as a corporation for
federal income tax purposes under Section 7701 of the Code),
partnership (or other entity treated as a partnership for
federal income tax purposes pursuant to Section 7701 of the
Code), or limited liability company in which neither the REIT
nor any "taxable REIT subsidiary" of the REIT owns (directly or
indirectly) an interest other than such debt securities or by an
individual provided that such debt securities qualify as
"straight debt" within the meaning of Section 856(c)(7) of the
Code; or
(c) a partnership or other entity treated as a partnership for
federal income tax purposes pursuant to Section 7701 of the Code
in which the REIT owns (directly or indirectly) a profits
interest of at least 20 percent, provided that such debt
----------
(1) For purposes of this Schedule A, a "Controlled Partnership Subsidiary" is
any partnership, business trust, joint venture or limited liability
company in which the Grantor, the REIT, any qualified REIT subsidiary
of REIT, or any other Controlled Partnership Subsidiary is a general
partner, a joint venturer, or a managing member, as applicable.
C-11
securities qualify as "straight debt" within the meaning of
Section 856(c)(7) of the Code;
if the REIT otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such debt securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the debt securities of any issuer
includible in the Trust Estate pursuant to this paragraph 2, shall be only the
portion of such securities sufficient to reduce the RETT's ownership (as
determined for purposes of Section 856 of the Code) of such securities to less
than 10 percent of the total value of the outstanding securities of such issuer.
3. If the Grantor and/or any Controlled Partnership Subsidiary owns both
(a) securities of an issuer that would be includible in the Trust Estate
pursuant to paragraph 1 of this Schedule A, Part II and (b) securities of such
issuer that would be includible in the Trust Estate pursuant to paragraph 2 of
this Schedule A, Part II, the Trust Estate shall include securities of such
issuer in the following priority: first, securities of such issuer includible
pursuant to paragraph 1 of this Schedule A, Part II and, second, securities of
such issuer includible pursuant to paragraph 2 of this Schedule A, Part II, to
the extent necessary to reduce the REIT's ownership (as determined for purposes
of Section 856 of the Code) of the securities of such issuer to less than 10% of
the total outstanding securities of such issuer.
C-12
SCHEDULE A, PART III
ADDITIONAL PROPERTIES TRUST ESTATE
1. Any and all equity securities, within the meaning of Section 856(c) of
the Code, owned directly or indirectly by an " Additional Properties Owner
Entity" of Grantor (as such term is defined in the LLC Agreement) and/or any
Controlled Partnership Subsidiary(2) which is owned by an Additional Properties
Owner Entity and which are issued by any entity treated as a corporation for
federal income tax purposes under Section 7701 of the Code, other than by a
"taxable REIT subsidiary" under Section 856(l) of the Code, if Inland Western
Retail Real Estate Trust, Inc., a Maryland corporation (the "REIT"), an indirect
"partner" in Grantor, otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such equity securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the securities of any issuer
includible in the Additional Properties Trust Estate pursuant to this paragraph
1, shall be only the portion of such securities sufficient to reduce the REIT's
ownership (as determined for purposes of Section 856 of the Code) of such
securities to less than 10 percent of the total value of the outstanding
securities of such issuer.
2. Any and all debt securities, within the meaning of Section 856(c) of the
Code, owned directly or indirectly by the Grantor and/or any Controlled
Partnership Subsidiary, which are owned by an Additional Properties Owner Entity
and issued by any corporation, partnership, limited liability company, or other
person or entity other than by:
(a) a "taxable REIT subsidiary" under Section 856(l) of the Code or
a "qualified REIT subsidiary" under Section 856(i) of the Code;
(b) a corporation (or other entity treated as a corporation for
federal income tax purposes under Section 7701 of the Code),
partnership (or other entity treated as a partnership for
federal income tax purposes pursuant to Section 7701 of the
Code), or limited liability company in which neither the REIT
nor any "taxable REIT subsidiary" of the REIT owns (directly or
indirectly) an interest other than such debt securities or by an
individual provided that such debt securities qualify as
"straight debt." within the meaning of Section 856(c)(7) of the
Code; or
(c) a partnership or other entity treated as a partnership for
federal income tax purposes pursuant to Section 7701 of the Code
in which the REIT owns (directly or indirectly) a profits
interest of at least 20 percent, provided that such debt
----------
2) For purposes of this Schedule A, a "Controlled Partnership Subsidiary" is
any partnership, business trust, joint venture or limited liability
company in which an Additional Properties Owner Entity of the Grantor,
the REIT, any qualified REIT subsidiary of REIT, or any other
Controlled Partnership Subsidiary is a genera] partner, a joint
venturer, or a managing member, as applicable.
C-13
securities qualify as "straight debt" within the meaning of
Section 856(c)(7) of Code;
if the REIT otherwise would be considered for purposes of Section
856(c)(4)(B)(iii)(III) to hold more than 10 percent of the total value of the
outstanding securities of the issuer as of 11:59:59 pm eastern standard time of
the day preceding the end of any calendar quarter, unless such debt securities
are otherwise considered "real estate assets" within the meaning of Section
856(c)(5) of the Code; PROVIDED, HOWEVER, that the debt securities of any issuer
includible in the Additional Properties Trust Estate pursuant to this paragraph
2, shall be only the portion of such securities sufficient to reduce the REIT's
ownership (as determined for purposes of Section 856 of the Code) of such
securities to less than 10 percent of the total value of the outstanding
securities of such issuer.
3. If the Grantor and/or any Controlled Partnership Subsidiary owns through
an Additional Properties Subsidiary both (a) securities of an issuer that would
be includible in the Additional Properties Trust Estate pursuant to paragraph 1
of this Schedule A, Part III and (b) securities of such issuer that would be
includible in the Additional Properties Trust Estate pursuant to paragraph 2 of
this Schedule A, Part III, the Additional Properties Trust Estate shall include
securities of such issuer in the following priority: first, securities of such
issuer includible pursuant to paragraph 1 of this Schedule A, Part III and,
second, securities of such issuer includible pursuant to paragraph 2 of this
Schedule A, Part III, to the extent necessary to reduce the REIT's ownership (as
determined for purposes of Section 856 of the Code) of the securities of such
issuer to less than 10% of the total outstanding securities of such issuer.
C-14
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
FORM OF PROMISSORY NOTE
EXHIBIT D
FORM OF CASH SHORTFALL LOAN
PROMISSORY NOTE
$____________ _________________, ______________ __________, Maryland
FOR VALUE RECEIVED, the undersigned, [a subsidiary LLC of CAPITAL CENTRE
HOLDING LLC] (the "MAKER"), promises to pay to the order of
________________________________________ (the "LENDER"),
at ___________________________ or at such other place as the holder hereof
may from time to time designate in writing, the principal sum
of ______________________Dollars ($____________), plus interest
on the principal balance thereof from time to time outstanding at an annual rate
("RATE") of twelve percent (12%) per annum. The entire principal balance of this
Note, all accrued and unpaid interest thereon, and all other applicable fees,
costs and charges, if any, shall be due and payable in accordance with Section
3.4 of that certain Amended and Restated Limited Liability Company Agreement of
Capital Centre Holding LLC dated as of July __, 2004.
All payments hereunder shall be made in lawful money of the United
States and in immediately available funds.
This Note may be prepaid, in whole or in part, at any time without
penalty. Any partial prepayments shall not, however, relieve the Maker of the
obligation to pay periodic installments of principal and/or interest hereunder
as and when the same would otherwise fall due.
THE LENDER, THE MAKER AND ANY OTHER PARTY LIABLE HEREON IN ANY
CAPACITY, WHETHER AS ENDORSER, SURETY, GUARANTOR, OR OTHERWISE, EACH WAIVES
TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT
OF OR ARISING OUT OF THE LOAN EVIDENCED HEREBY AND/OR THE CONDUCT OF THE
RELATIONSHIP BETWEEN THE LENDER, THE MAKER AND/OR ANY OTHER PARTY LIABLE HEREON
IN ANY CAPACITY, WHETHER AS ENDORSER, SURETY, GUARANTOR, OR OTHERWISE.
The Maker promises to pay all costs of collection, including reasonable
attorneys' fees, upon default in the payment of the principal of this Note or
interest hereon when due, whether at
D-1
maturity, as herein provided, or by reason of acceleration of maturity under the
terms hereof, whether suit be brought or not.
In the event any one or more of the provisions contained in this Note
shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Note, but this Note shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.
This Note may not he changed orally, but only by an agreement in writing
signed by the parties against whom enforcement of any waiver, change,
modification or discharge is sought.
The Maker warrants and represents that the loan evidenced hereby is
being made for business or investment purposes.
It is the intention of the Maker and the Lender to conform strictly to
applicable usury laws. Accordingly, if the transactions contemplated hereby
would be usurious under applicable law, then notwithstanding anything to the
contrary in this Note or the Maker's Limited Liability Company Agreement, the
aggregate of all consideration which constitutes interest under applicable law
that is contracted for, charged or received under this Note shall under no
circumstances exceed the maximum amount of interest allowed by applicable law,
and any excess shall be credited on the Note by the Lender, or, if this Note
shall have been paid in full, refunded to the Maker.
This Note shall be governed in all respects by the laws of the State of
Delaware (without regard to its conflicts of laws provisions) and shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective heirs, executors, administrators, personal representatives,
successors and assigns.
[a subsidiary LLC of Capital Centre Holding LLC]
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
D-2
AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT
OF
CAPITAL CENTRE HOLDING LLC
CALCULATIONS EXHIBIT
EXHIBIT E
This example is intended to illustrate the manner in which the Capital
Contributions, Capital Account balances, Adjusted Capital Balances and
Operations Reserve balance will be calculated under the terms of the Amended and
Restated Limited Liability Company Agreement of The Capital Centre Investors,
LLC to which this example is attached. The figures in this example are intended
solely for illustrative purposes and may not reflect actual figures.
ASSUMPTIONS:
- Gross Proceeds under Contribution Agreement - $130,050,000
- Existing Debt - $58,000,000
- Earnout Amount - $6,947,764
- Amount Deposited in Escrow upon Closing - $30,845,210
- Initial Distribution to Withdrawing Member - $17,438,434
DETERMINATION OF INITIAL ADJUSTED CAPITAL BALANCE (DETERMINED UNDER DEFINITION
OF "ADJUSTED CAPITAL BALANCE"):
- Inland - Gross Asset Value = $ 130,050,000 (This amount includes the
amount of any financing entered into by the Owner Entity simultaneously
with the execution of the Agreement to which this Exhibit is attached.)
- Xxxxxxx - Xxxxx Asset Value ($130,050,000) MINUS Existing Debt
($58,000,000) MINUS distribution to Withdrawing Member ($17,438,434)
MINUS Escrow Amount ($30,845,210) MINUS Earnout Amount ($6,947,764)
MINUS Construction Completion Reserve ($3,222,828) = $13,595,764
- The Cordish Adjusted Capital Balance will be further reduced by
expenses paid upon closing or when incurred (i.e., transaction
expenses ($ 125,000)) and will be increased by residual amounts
transferred from the Construction Completion Reserve to the
Operations Reserve). [ACTUAL CONSTRUCTION COSTS WILL BE BORNE BY
CORDISH (IF COSTS ARE HIGHER, THEY WILL BE FUNDED DIRECTLY BY
CORDISH).]
DETERMINATION OF INITIAL CAPITAL ACCOUNT (DETERMINED UNDER SECTION 3.2):
- Inland - Initial Capital Contribution (amount contributed upon Closing
including Escrow Amount but excluding Earnout Amount) = Gross Proceeds
($130,050,000) MINUS
E-1
Earnout Amount ($6,947,764) = $123,102,236 (This amount will be further
reduced by the amount of any financing entered into by the Owner Entity
simultaneously with the execution of the Agreement to which this Exhibit
is attached.)
- Xxxxxxx - Xxxxx Asset Value ($130,050,000) MINUS Existing Debt
($58,000,000) MINUS distribution to Withdrawing Member ($17,438,434)
MINUS Escrow Amount ($30,845,210) MINUS Earnout Amount ($6,947,764)
MINUS Construction Completion Reserve ($3,222,828) = $13,595,764
- The Cordish Capital Account balance will be further reduced by
expenses paid upon closing or when incurred (i.e., transaction
expenses ($125,000)) and will be increased by residual amounts
transferred from the Construction Completion Reserve to the
Operations Reserve). [ACTUAL CONSTRUCTION COSTS WILL BE BORNE BY
CORDISH (IF COSTS ARE HIGHER, THEY WILL BE FUNDED DIRECTLY BY
CORDISH).]
DETERMINATION OF INITIAL BALANCE OF OPERATIONS RESERVE:
Gross Proceeds ($130,050,000) MINUS Existing Debt ($58,000,000) MINUS
distribution to Withdrawing Member ($17,438,434) MINUS Escrow Amount
($30,845,210) MINUS Earnout Amount ($6,947,764) MINUS Construction Completion
Reserve ($3,222,828) = $13,595,764; which amount shall be further reduced by
fees paid upon closing or when incurred ($125,000) = $12,980,249 (and shall be
increased by amounts transferred from the Construction Completion Reserve to the
Operations Reserve)
EFFECT OF PAYMENT OF EARNOUT (ASSUMES CONTRIBUTION OF $1,000,000):
Assumption $1,000,000 contribution by Inland of Earnout Funds
$600,000 distributed/paid to Withdrawing Member
- Inland Capital Account: Increased by $1,000,000
- Inland Adjusted Capital Balance: No change
- Cordish Capital Account: Increased by Additional Contribution
($1,000,000) MINUS amount paid to Withdrawing Member ($600,000) =
$400,000
- Cordish Adjusted Capital Balance: Increased by Additional Contribution
($1,000,000) MINUS amount paid to Withdrawing Member ($600,000) =
$400,000
- Operations Reserve Balance: Increased by Additional Contribution
($1,000,000) MINUS amount paid to Withdrawing Member ($600,000) =
$400,000
EFFECT OF RELEASE OF ESCROW AMOUNT (ASSUMES RELEASE OF $1,000,000):
Assumption $1,000,000 released from Escrow
$600,000 distributed/paid to Withdrawing Member under Escrow
Agreement
- Inland Capital Account: No change
- Inland Adjusted Capital Balance: No change
- Cordish Capital Account: Increased by amount released from escrow
($1,000,000) MINUS amount paid to Withdrawing Member
($600,000) = $400,000
E-2
- Cordish Adjusted Capital Balance: Increased by amount released from
escrow ($1,000,000) MINUS amount paid to Withdrawing Member ($600,000)
= $400,000
- Operations Reserve Balance: Increased by amount released from escrow
($1,000,000) MINUS amount paid to Withdrawing Member ($600,000) =
$400,000
EFFECT OF PAYMENT OF INDEMNITY TO INLAND (ASSUMES PAYMENT OF $1,000,000):
Assumption $1,000,000 paid from Liquidity Escrow to Inland
- Inland Capital Account: Decreased by $1,000,000
- Inland Adjusted Capital Balance: Decreased by $1,000,000
- Cordish Capital Account: No change
- Cordish Adjusted Capital Balance: No change
- Operations Reserve Balance: No change
Assumption $1,000,000 paid from Operations Reserve (i.e., from an indemnity
obligation under the LLC Agreement)
- Inland Capital Account: Decreased by $1,000,000
- Inland Adjusted Capital Balance: Decreased by $1,000,000
- Cordish Capital Account: Decreased by $1,000,000
- Cordish Adjusted Capital Balance: Decreased by $1,000,000
- Operations Reserve Balance: Decreased by $1,000,000
E-3
ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "AGREEMENT") is
made and entered into as of the 30th day of July, 2004, by and among
REISTERSTOWN PLAZA ASSOCIATES LLC and RRP XXXXX LLC, (collectively, the
"ASSIGNOR"), and CR INVESTORS LLC, a Maryland limited liability company (the
"ASSIGNEE").
EXPLANATORY STATEMENT
Assignor has entered into certain contracts described in Article
III A and Exhibit 3.A. 5 of that certain Contribution Agreement dated July 21,
2004 ("CONTRACTS") for the construction of improvements at Reisterstown Road
Plaza.
In connection with Article III A of that certain Contribution
Agreement dated July 21, 2004, Assignor has agreed to assign the Contracts to
Assignee and Assignee has agreed to assume and be responsible for the Contracts.
NOW, THEREFORE, for and in consideration of the premises, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties do hereby agree as follows:
1. ASSIGNMENT. The Assignor hereby assigns, transfers and
conveys to the Assignee all of the Assignor's right, title and interest in and
to the Contracts effective as of the date hereof.
2. ASSUMPTION. The Assignee hereby accepts and assumes and
unconditionally promises, covenants and agrees to perform, observe and comply
with each and all of the obligations, liabilities and responsibilities of the
Assignor set forth in or arising under or pursuant to the Contracts, at the
time, in the manner and in all respects as provided or required by the Contracts
as though the Contracts had originally been made, executed and delivered by, or
was binding on, the Assignee.
3. GENERAL.
3.1 EFFECTIVENESS. This Agreement shall become
effective on the date first written above.
3.2 COMPLETE UNDERSTANDING. This Agreement
represents the complete understanding among the parties hereto as to the subject
matter hereof, and supersedes all prior negotiations, representations,
statements or agreements, either written or oral, among the parties hereto.
3.3 AMENDMENT. This Agreement may be amended only by
an instrument in writing executed and delivered by all parties hereto.
3.4 APPLICABLE LAW. This Agreement shall be given
effect and construed by application of the laws of the State of Maryland.
3.5 BINDING EFFECT. This Agreement shall be binding
upon and inure to the benefit of the parties hereto, and their respective
successors and assigns.
IN WITNESS WHEREOF, each party hereto has executed and sealed
this Agreement or caused it to be executed and sealed on its behalf by its duly
authorized representatives as of the day and year first above written.
WITNESS: ASSIGNOR:
REISTERSTOWN ROAD PLAZA LLC
By: Reisterstown Plaza Holdings LLC
By: Inland Reisterstown HC LLC
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
---------------------------------- ------------------------
As: Assistant Secretary of [ILLEGIBLE]
RRP XXXXX LLC
By: Reisterstown Plaza Holdings LLC
By: Inland Reisterstown HC LLC
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
---------------------------------- -----------------------
ASSIGNEE:
CR INVESTORS LLC
/s/ [ILLEGIBLE] By:/s/ Xxxxxxx X. Xxxxxx (SEAL)
---------------------------------- ----------------------------
Xxxxxxx X. Xxxxxx, Authorized Person
- 2 -
CC INVESTORS LLC
CLOSING CERTIFICATE
THIS CLOSING CERTIFICATE (this "CLOSING CERTIFICATE") is made
and given as of the 8th day of September, 2004 by CC INVESTORS LLC, a Maryland
limited liability company ("CORDISH AFFILIATE") for the benefit of INLAND
CAPITAL HC, L.L.C., a Delaware limited liability company ("INLAND AFFILIATE")
pursuant to the Contribution Agreement, dated as of July 21, 2004 (the
"CONTRIBUTION AGREEMENT"), by and between THE CAPITAL CENTRE INVESTORS, LLC, a
Maryland limited liability company ("HOLDING COMPANY"), and Inland Affiliate.
CORDISH AFFILIATE hereby certifies as follows:
1. Xxxxxxx X. Xxxxxx is the duly appointed "Authorized
Person" of Cordish Affiliate and as such is authorized to execute this Closing
Certificate;
2. To the best of Cordish Affiliate's information and
belief and except as noted in this Paragraph 3 hereof, the representations and
warranties contained in Article IV of the Contribution Agreement are true,
complete and accurate in all material respects on and as of the date of this
Certificate:
3. Between July 21, 2004 and the date hereof:
A. As a result of leasing activity at the Property,
EXHIBIT "4.9.2" is no longer true, complete and accurate (although it is true,
complete and accurate in all material respects). Attached hereto as EXHIBIT "A"
is an updated (as of the date hereof) version of EXHIBIT "4.9.2".
B. As a result of the payment of leasing and broker
commissions and the execution of new leases at the Property resulting in new
obligations for leasing and broker commissions, EXHIBIT "4.9.5" is no longer
true, complete and accurate (although it is true, complete and accurate in all
material respects). Attached hereto as EXHIBIT "B" is an updated (as of the date
hereof) version of EXHIBIT "4.9.5".
C. As a result of leasing activity at the Property,
EXHIBIT "4.9.6" is no longer true, complete and accurate (although it is true,
complete and accurate in all material respects). Attached hereto as EXHIBIT "C"
is an updated (as of the date hereof) version of EXHIBIT "4.9.6".
D. As a result of the passage of time,
EXHIBIT "3A.3" and EXHIBIT "4.6" are no longer true, complete and accurate
(although they are true, complete and accurate in all material respects) for the
following reasons:
(i) The Ingnito LLC suit has been resolved;
(ii) With regard to the Xxxxxxxxx case,
Defendant Xxxxxxxxx'x motion to dismiss has been rejected by the Court.
Xxxxxxxxx has filed an answer containing a
counterclaim that we and our attorney consider completely baseless and that, in
all likelihood, will be dismissed by a summary judgment motion.
(iii) African Stargina (a 1,500 sq. ft. tenant)
and Jilliano Shoes (1,998 sq. ft. tenant) are in default of their respective
leases for failure to pay rent, have been given default notices and we are in
the process of filing suit against them.
E. As a result of the tenant defaults described in
Xxxxxxxxx 0 (X) (xxx) above, the representation and warranty contained in
Subsection 4.12.2.4 is no longer true, complete and accurate (although it is
true, complete and accurate in all material respects); and
4. Capitalized terms used in this Certificate not otherwise
defined herein have the meanings set forth in the Contribution Agreement.
IN WITNESS WHEREOF, the undersigned has executed this
Certificate as of the date first noted above.
CC INVESTORS LLC, a Maryland limited
liability company
By:/s/ Xxxxxxx X. Xxxxxx
--------------------------------------
Xxxxxxx X. Xxxxxx, Authorized Person
2
EXHIBIT "A"
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 1
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
----------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
1 Borders Books & Music $ 19.28 Dec-2008 $ 20.83 - - - See method:
Retail, Suite: A101 22,915 $ 441,801 Dec-2013 $ 22.54 8.3% Admin
Dec-2003 to Nov-2023 4.75% $ 1.61 Dec-2018 $ 24.41 reimbursement.
240 Months $ 36,817
Notes: OPEN; PAYING FULL RENT
2 EB Gameworld $ 34.00 - - - - - See method:
Retail, Suite: A102 1,200 $ 40,800 15% Admin
Dec-2003 to Nov-2008 0.25% $ 2.83 reimbursement.
60 Months $ 3,400
Notes: OPEN; PAYING FULL RENT
3 Claire's $ 30.00 - - - - - See method:
Retail, Suite: B101 1,166 $ 34,980 15% Admin
Dec-2003 to Nov-2008 0.24% $ 2.50 reimbursement.
60 Months $ 2,915
Notes: OPEN; PAYING FULL RENT
4 Yankee Candle $ 24.00 Dec-2006 $ 25.80 - - - See method:
Retail, Suite: B102 2,000 $ 48,000 Dec-2010 $ 27.73 15% Admin
Dec-2003 to Nov-2013 0.41% $ 2.00 reimbursement.
120 Months $ 4,000
Notes: OPEN; PAYING FULL RENT
5 Children's Place $ 22.00 Dec-2008 $ 24.00 - - - See method:
Retail, Suite: B103 6,000 $ 132,000 15% Admin
Dec-2003 to Nov-2013 1.24% $ 1.83 reimbursement.
120 Months $ 11,000
Notes: OPEN; PAYING FULL RENT
6 Lane Xxxxxx $ 24.00 - - - - - See method:
Retail, Suite: B104 5,000 $ 120,000 15% Admin
Nov-2003 to Dec-2013 1.04% $ 2.00 reimbursement.
120 Months $ 10,000
Notes: OPEN; PAYING FULL RENT
7 Men's Wearhouse $ 23.00 Nov-2008 $ 25.00 - - - See method:
Retail, Suite: B105 6,400 $ 147,200 15% Admin
Dec-2003 to Dec-2013 0.33% $ 1.92 reimbursement.
121 Months $ 12,287
Notes: OPEN; PAYING FULL RENT
8 Linens 'N Things $ 12.50 - - - - - See method:
Retail, Suite: C101 34,440 $ 430,500 15% Admin
Mar-2004 to Feb-2014 7.14% $ 1.04 reimbursement.
120 Months $ 35,875
Notes: OPEN; PAYING FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
----------------------------- --------- -------- ----------------
1 Borders Books & Music - - Market
Retail, Suite: A101 See assumption:
Dec-2003 to Nov-2023 Border's
240 Months
Notes: OPEN; PAYING FULL RENT
2 EB Gameworld - - Option
Retail, Suite: A102 See assumption:
Dec-2003 to Nov-2008 $42 shop
60 Months
Notes: OPEN; PAYING FULL RENT
3 Claire's - - Option
Retail, Suite: B101 See assumption:
Dec-2003 to Nov-2008 $ 37.5 Shop
60 Months
Notes: OPEN; PAYING FULL RENT
4 Yankee Candle - - Market
Retail, Suite: B102 See assumption:
Dec-2003 to Nov-2013 $27.5 Shop
120 Months
Notes: OPEN; PAYING FULL RENT
5 Children's Place - - Market
Retail, Suite: B103 See assumption:
Dec-2003 to Nov-2013 00 to 7,500 box
120 Months
Notes: OPEN; PAYING FULL RENT
6 Lane Xxxxxx - - Market
Retail, Suite: B 104 See assumption:
Nov-2003 to Dec-2013 00 to 7,500 box
120 Months
Notes: OPEN; PAYING FULL RENT
7 Men's Wearhouse - - Market
Retail, Suite: B105 See assumption:
Dec-2003 to Dec-2013 00 to 7,500 box
121 Months
Notes: OPEN; PAYING FULL RENT
8 Linens 'N Things - - Market
Retail, Suite: C101 See assumption:
Mar-2004 to Feb-2014 $12.5 Big Box
120 Months
Notes: OPEN; PAYING FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 2
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
----------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
9 Pier 1 $ 18.00 Dec-2008 $ 19.80 - - - See method:
Retail, Suite: D101 10,068 $ 161,224 15% Admin
Dec-2003 to Nov-2013 2.09% $ 1.50 reimbursement.
120 Months $ 15,102
Notes: OPEN; PAYING FULL RENT
10 Xxxxxx Clothing $ 27.50 Dec-2005 $ 28.60 - - - See method:
Retail, Suite: D102 5,194 $ 142,835 Dec-2007 $ 29.74 15% Admin
Dec-2003 to Nov-2013 1.06% $ 2.29 Dec-2009 $ 30.93 reimbursement.
120 Months $ 11,903 Dec-2011 $ 32.17
Notes: OPEN; PAYING FULL RENT
11 Casual Male $ 24.00 - - - - - See method:
Retail, Suite: D103 3,500 $ 84,000 15% Admin
Mar-2004 to Mar-2009 0.73% $ 2.00 reimbursement.
61 Months $ 7,000
Notes: OPEN; PAYING FULL RENT
12 Classic Woman $ 29.00 Jun-2005 $ 29.87 - - - See method:
Retail, Suite: D104 2,200 $ 63,800 Jun-2006 $ 30.77 20% Admin
Jun-2004 to May-2009 0.45% $ 2.42 Jun-2007 $ 31.69 reimbursement.
60 Months $ 5,317 Jun-2008 $ 32.64
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; RENT
COMMENCED IN JUNE '04;
TENANT OPENING SEPT. 04
13 Dynamics $ 29.00 Nov-2009 $ 32.48 - - - See method:
Retail, Suite: D105 3,000 $ 87,000 15% Admin
Nov-2004 to Oct-2014 0.62% $ 2.42 reimbursement.
120 Months $ 7,250
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; RENT
EXPECTED TO COMMENCE
APPROX. 11/1/04. SPACE
IS ALSO BEING CONSIDERED
FOR NINE WEST. DYNAMIX COULD
BE TERMINATED AND REPLACED
WIT
14 Xxx Xxxxxx Loft $ 13.71 - - - - - See method:
Retail, Suite: D106 5,471 $ 75,000 15% Admin
Jun-2004 to Jun-2014 1.13% $ 1.14 reimbursement.
120 Months $ 6,250
Notes: TENANT OPEN; PAYING
FULL RENT
15 Xxx Jewelers $ 38.66 - - - - - See method:
Retail, Suite: D107 1,552 $ 60,000 15% Admin
Dec-2003 to Nov-2008 0.32% $ 3.22 reimbursement.
60 Months $ 5,000
Notes: OPEN; PAYING FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
----------------------------- --------- -------- ----------------
9 Pier 1 - - Market
Retail, Suite: D101 See assumption:
Dec-2003 to Nov-2013 10,000 - 15,000
120 Months
Notes: OPEN; PAYING FULL RENT
10 Xxxxxx Clothing - - Market
Retail, Suite: D102 See assumption:
Dec-2003 to Nov-2013 000 - 7000 Shop
120 Months
Notes: OPEN; PAYING FULL RENT
11 Casual Male - - Option
Retail, Suite: D103 See assumption:
Mar-2004 to Mar-2009 $27.5 Shop
61 Months
Notes: OPEN; PAYING FULL RENT
12 Classic Woman - - Option
Retail, Suite: D104 See assumption:
Jun-2004 to May-2009 $27.5 Shop
60 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; RENT
COMMENCED IN JUNE '04;
TENANT OPENING SEPT. 04
13 Dynamics - - Market
Retail, Suite: D105 See assumption:
Nov-2004 to Oct-2014 $32 Shop
120 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; RENT
EXPECTED TO COMMENCE
APPROX. 11/1/04. SPACE
IS ALSO BEING CONSIDERED
FOR NINE WEST. DYNAMIX COULD
BE TERMINATED AND REPLACED
WIT
14 Xxx Xxxxxx Loft - - Market
Retail, Suite: D106 See assumption:
Jun-2004 to Jun-2014 $30 Xxx
000 Months
Notes: TENANT OPEN; PAYING
FULL RENT
15 Xxx Jewelers - - Option
Retail, Suite: D107 See assumption:
Dec-2003 to Nov-2008 $ 47.5 Shop
60 Months
Notes: OPEN; PAYING FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 3
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscelleneous Xxxxx Xxxxx Reimbursements
---------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
16 Soul Fixins' $ 30.00 Nov-2005 $ 30.90 - - - See method:
Retail, Suite: E101 2,085 $ 62,550 Nov-2006 $ 31.83 Soul Fixins'
Nov-2004 to Oct-2014 0.43% $ 2.50 Nov-2007 $ 32.78 reimbursement.
120 Months $ 5,213 Nov-2008 $ 33.77
Nov-2009 $ 34.78
Nov-2010 $ 35.82
Nov-2011 $ 36.90
Nov-2012 $ 38.00
Nov-2013 $ 39.14
Notes: EXECUTED LEASE;
TENANT EXPECTED TO BEGIN
PAYING RENT ON 10/1/04.
17 Five Guys $ 32.00 Mar-2009 $ 36.80 - - - See method:
Retail, Suite: E102 1,500 $ 48,000 Five Guys Pizza
Mar-2004 to Feb-2014 0.31% $ 2.67 reimbursement.
120 Months $ 4,000
Notes: OPEN; PAYING FULL
RENT
18 VACANT $ 25.00 Sep-2005 $ 25.75 - - - See method:
Retail, Suite: E103 1,556 $ 38,900 Sep-2006 $ 26.52 Mondo Pizza
Jan-2005 to Dec-2014 0.32% $ 2.08 Sep-2007 $ 27.32 reimbursement.
120 Months $ 3,242 Sep-2008 $ 28.14
Sep-2009 $ 28.98
Sep-2010 $ 29.85
Sep-2011 $ 30.75
Sep-2012 $ 31.67
Sep-2013 $ 32.62
Sep-2014 $ 33.60
Notes: VACANT: MULTIPLE
PROSPECTS AT PRO FORMA RENT
BUT NO DEFINITE LIKELY
TENANT YET
19 Quizno's $ 33.00 Dec-2005 $ 35.05 - - - See method:
Retail, Suite: E104 1,562 $ 51,545 Dec-2008 $ 38.07 Quizno's
Dec-2003 to Nov-2013 0.32% $ 2.75 reimbursement.
120 Months $ 4,296
Notes: OPEN; TENANT PAYING
FULL RENT
20 Panda Express $ 35.00 Dec-2008 $ 40.25 - - - See method:
Retail, Suite: E105 2,100 $ 73,500 Panda Express
Dec-2003 to Nov-2013 0.44% $ 2.92 reimbursement.
120 Months $ 6,125
Notes: OPEN; TENANT PAYING
FULL RENT
21 Starbucks $ 30.00 Dec-2008 $ 33.60 - - - See method:
Retail, Suite: F101 1,250 $ 37,500 15% Admin
Dec-2003 to Nov-2013 0.26% $ 2.50 reimbursement.
120 Months $ 3,125
Notes: OPEN: TENANT PAYING
FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
---------------------------- --------- -------- ----------------
16 Soul Fixins' - - Market
Retail, Suite: E101 See assumption:
Nov-2004 to Oct-2014 $ 37.5 Rest
120 Months
Notes: EXECUTED LEASE;
TENANT EXPECTED TO BEGIN
PAYING RENT ON 10/1/04.
17 Five Guys - - Market
Retail, Suite: E102 See assumption:
Mar-2004 to Feb-2014 $ 37.5 Rest
120 Months
Notes: OPEN; PAYING FULL
RENT
18 VACANT - - Market
Retail, Suite: E103 See assumption:
Jan-2005 to Dec-2014 $ 37.5 Rest
120 Months
Notes: VACANT; MULTIPLE
PROSPECTS AT PRO FORMA RENT
BUT NO DEFINITE LIKELY
TENANT YET
19 ?uizno's - - Market
Retail, Suite: E104 See assumption:
Dec-2003 to Nov-2013 $ 37.5 Rest
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
20 Panda Express - - Market
Retail, Suite: E104 See assumption:
Dec-2003 to Nov-2013 $ 37.5 Rest
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
21 Starbucks - - Market
Retail, Suite: F101 See assumption:
Dec-2003 to Nov-2013 $ 37.5 Rest
120 Months
Notes: OPEN: TENANT PAYING
FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 4
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
---------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
22 Qdoba $ 32.50 Dec-2008 $ 36.40 - - - See method:
Retail, Suite: F102 3,000 $ 97,500 Qdoba
Dec-2004 to Nov-2013 0.62% $ 2.71 reimbursement.
120 Months $ 8,125
Notes: OPEN; TENANT PAYING
FULL RENT
00 Xxxxxx Xxxxxx $ 25.00 Dec-2004 $ 25.75 - - - See method:
Retail, Suite: F103 3,400 $ 85,000 Dec-2005 $ 26.52 15% Admin
Dec-2003 to Nov-2010 0.70% $ 2.08 Dec-2006 $ 27.32 reimbursement.
84 Months $ 7,083 Dec-2007 $ 28.14
Dec-2008 $ 28.88
Dec-2009 $ 29.85
Notes: OPEN; TENANT PAYING
FULL RENT
24 T-Mobile $ 40.00 Dec-2008 $ 46.00 - - - See method:
Retail, Suite: F104 1,800 $ 72,000 15% Admin
Dec-2003 to Nov-2010 0.37% $ 3.33 reimbursement.
84 Months $ 6,000
Notes: OPEN; TENANT PAYING
FULL RENT
25 Footaction $ 28.00 Dec-2008 $ 30.80 - - - See method:
Retail, Suite: F105 3,500 $ 98,000 12% Admin
Dec-2003 to Nov-2013 0.73% $ 2.33 reimbursement.
120 Months $ 8,167
Notes: OPEN; TENANT PAYING
FULL RENT. LEASE WAS ASSUMED
BY SUBSIDIARY OF FOOTLOCKER,
WHO ACQUIRED FOOTACTION OUT
OF BANKRUPTCY
26 Changes $ 25.00 Dec-2006 $ 28.00 - - - See method:
Retail, Suite: G101 4,000 $ 104,000 Dec-2008 $ 30.00 15% Admin
Dec-2003 to Nov-2013 0.83% $ 2.17 Dec-2011 $ 32.00 reimbursement.
120 Months $ 8,667
Notes: OPEN; TENANT PAYING
FULL RENT
27 Total Sport $ 27.57 Jan-2005 $ 28.40 - - - See method:
Retail, Suite: G102 3,756 $ 103,553 Jan-2006 $ 29.25 15% Admin
Jan-2004 to Dec-2013 0.79% $ 2.30 Jan-2007 $ 30.13 reimbursement.
120 Months $ 8,629 Jan-2008 $ 31.03
Jan-2009 $ 31.96
Jan-2010 $ 32.92
Jan-2011 $ 33.91
Jan-2012 $ 34.92
Jan-2013 $ 35.97
Notes: OPEN; TENANT PAYING
FULL RENT
28 Lucaya $ 21.00 Jan-2006 $ 23.00 - - - See method:
Retail, Suite: G104 3,030 $ 63,000 Jan-2008 $ 24.00 15% Admin
Jan-2004 to Dec-2013 0.62% $ 1.75 Jan-2010 $ 25.00 reimbursement.
120 Months $ 5,250 Jan-2012 $ 26.00
Notes: OPEN; TENANT PAYING
FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
---------------------------- --------- -------- ----------------
22 Qdoba - - Market
Retail, Suite: F102 See assumption:
Dec-2003 to Nov-2013 $ 37.5 Rest
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
00 Xxxxxx Xxxxxx - - Option
Retail, Suite: F103 See assumption:
Dec-2003 to Nov-2010 $33 Shop
84 Months
Notes: OPEN; TENANT PAYING
FULL RENT
24 T-Mobile - - Option
Retail, Suite: F104 See assumption:
Dec-2003 to Nov-2010 $ 47.5 shop
84 Months
Notes: OPEN; TENANT PAYING
FULL RENT
25 Footaction - - Market
Retail, Suite: F105 See assumption:
Dec-2003 to Nov-2013 000 - 7000 Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT. LEASE WAS ASSUMED
BY SUBSIDIARY OF FOOTLOCKER,
WHO ACQUIRED FOOTACTION OUT
OF BANKRUPTCY
26 Changes - - Market
Retail, Suite: G101 See assumption:
Dec-2003 to Nov-2013 $27.5 Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
27 Total Sport - - Market
Retail, Suite: G102 See assumption:
Jan-2004 to Dec-2013 $30 LG Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
28 Lucaya - - Market
Retail, Suite: G104 See assumption:
Jan-2004 to Dec-2013 $24 Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 5
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
--------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
29 Lens Crafters $ 30.00 Dec-2006 $ 32.50 - - - See method:
Retail, Suite: H101 4,653 $ 138,580 Dec-2010 $ 35.00 15% Admin
Dec-2003 to Nov-2013 0.96% $ 2.50 reimbursement.
120 Months $ 11,633
Notes: OPEN; TENANT PAYING
FULL RENT
30 Nextel $ 40.00 - - - - - See method:
Retail, Suite: H102 1,871 $ 74,840 15% Admin
Dec-2003 to Nov-2008 0.39% $ 3.33 reimbursement.
60 Months $ 6,237
Notes: OPEN; TENANT PAYING
FULL RENT
31 Head 2 Head $ 25.50 Dec-2005 $ 26.78 - - - See method:
Retail, Suite: H103 2,568 $ 65,484 Dec-2007 $ 28.11 15% Admin
Dec-2003 to Nov-2010 0.53% $ 2.13 Dec-2009 $ 29.52 reimbursement.
84 Months $ 5,457
Notes: OPEN; TENANT PAYING
FULL RENT
32 Mattress Warehouse $ 25.00 Mar-2009 $ 28.00 - - - See method:
Retail, Suite: H104 4,112 $ 102,800 15% Admin
Mar-2004 to Feb-2014 0.65% $ 2.08 reimbursement.
120 Months $ 8,567
Notes: OPEN; TENANT PAYING
FULL RENT
33 Chevy Chase Bank $ 36.00 Feb-2010 $ 40.32 - - - See method:
Retail, Suite: I101 3,000 $ 108,000 Feb-2015 $ 45.16 15% Admin
Feb-2005 to Jan-2025 0.62% $ 3.00 Feb-2020 $ 50.58 reimbursement.
240 Months $ 9,000
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; EXPECTED
OPENING BY 2/1/05
34 VACANT $ 25.00 Feb-2010 $ 28.00 - - - See method:
Retail, Suite: I102 4,209 $ 105,225 15% Admin
Feb-2005 to Jan-2015 0.87% $ 2.08 reimbursement.
120 Months $ 8,769
Notes: VACANT; LEASE AT
EXECUTION STAGE WITH XXXXXX
XXXXXXX AT PRO FORMA TERMS;
IF EXECUTED THEN EXPECTED
OPENING 2/1/05
35 Last Stop $ 30.00 Nov-2009 $ 33.75 - - - See method:
Retail, Suite: I102X 3,000 $ 90,000 15% Admin
Nov-2004 to Oct-2014 0.62% $ 2.50 reimbursement.
120 Months $ 7,500
Notes: LEASE EXECUTED BUT
TENANT NOT YET OPEN. Rent
commencement expected
11/1/2004.
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
--------------------------- --------- -------- ----------------
29 Lens Crafters - - Market
Retail, Suite: H101 See assumption:
Dec-2003 to Nov-2013 $30 LG Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
30 Nextel - - Option
Retail, Suite: H102 See assumption:
Dec-2003 to Nov-2008 $ 47.5 Shop
60 Months
Notes: OPEN; TENANT PAYING
FULL RENT
31 Head 2 Head - - Option
Retail, Suite: H103 See assumption:
Dec-2003 to Nov-2010 $33 Shop
84 Months
Notes: OPEN; TENANT PAYING
FULL RENT
32 Mattress Warehouse - - Market
Retail, Suite: H104 See assumption:
Mar-2004 to Feb-2014 $24 Shop
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
33 Chevy Chase Bank - - Option
Retail, Suite: I101 See assumption:
Feb-2005 to Jan-2025 $00 0000-0000
240 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN;
EXPECTED OPENING BY 2/1/05
34 VACANT $ 50.00 - Market
Retail, Suite: I102 See assumption:
Feb-2005 to Jan-2015 $ 210,450 $27.5 Shop
120 Months
Notes: VACANT LEASE AT
EXECUTION STAGE WITH XXXXXX
XXXXXXX AT PRO FORMA TERMS;
IF EXECUTED THEN EXPECTED
OPENING 2/1/05
35 Last Stop - - Option
Retail, Suite: I102X See assumption:
Nov-2004 to Oct-2014 $27.5 Shop
120 Months
Notes: LEASE EXECUTED BUT TENANT
NOT YET OPEN. Rent commencement
expected 11/1/2004.
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 6
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
------------------------------ ---------- -------------- -------- --------- ------------- ------- ----- -----------------
36 Payless Shoes $ 28.00 Feb-2009 $ 31.50 - - - See method:
Retail, Suite: I102Y 2,880 $ 78,400 15% Admin
Feb-2004 to Jan-2014 0.58% $ 2.33 reimbursement.
120 Months $ 6,533
Notes: OPEN; PAYING FULL RENT
37 Gallery Serengetti $ 29.00 Mar-2005 $ 29.67 - - - See method:
Retail, Suite: I102Z 2,008 $ 58,000 Mar-2006 $ 30.77 15% Admin
Mar-2004 to Feb-2011 0.41% $ 2.42 Mar-2007 $ 31.69 reimbursement.
84 Months $ 4,833 Mar-2008 $ 32.64
Mar-2009 $ 33.62
Mar-2010 $ 34.63
Notes: OPEN; PAYING FULL RENT
38 Honeycomb Hidecul $ 27.50 Dec-2008 $ 30.25 - - - See method:
Retail, Suite: I103 2,500 $ 68,750 15% Admin
Dec-2003 to Nov-2013 0.52% $ 2.29 reimbursement.
120 Months $ 5,729
Notes: TENANT OPEN AND PAYING
FULL RENT
39 Foot Locker $ 29.00 Dec-2006 $ 29.87 - - - See method:
Retail, Suite: I104 3,433 $ 99,557 Dec-2007 $ 30.77 15% Admin
Dec-2003 to Nov-2013 0.71% $ 2.42 Dec-2008 $ 31.69 reimbursement.
120 Months $ 8,296 Dec-2009 $ 32.64
Dec-2010 $ 33.52
Dec-2011 $ 34.63
Dec-2012 $ 35.57
Notes: OPEN; PAYING FULL RENT
40 Expressions [ILLEGIBLE] $ 13.00 Apr-2004 $ 26.00 - - - See method:
Retail, Suite: I105 3,103 $ 40,339 Jan-2005 $ 13.00 15% Admin
Jan-2004 to Dec-2013 0.64% $ 1.08 Apr-2005 $ 26.00 reimbursement.
120 Months $ 3,362 Jan-2006 $ 27.63
Jan-2009 $ 28.46
Jan-2010 $ 29.31
Jan-2011 $ 30.19
Jan-2012 $ 31.10
Jan-2013 $ 32.03
Notes: OPEN; PAYING FULL RENT.
NOTE: Tenant has 50% rent
abatement for first three
months of 2004 and 2005
(monthly rent is $3,361.59
for first three months of 2004
and 2005, and $6
41 Shoe City $ 23.50 Dec-2008 $ 26.32 - - - See method:
Retail, Suite: I106 7,700 $ 180,950 15% Admin
Dec-2003 to Nov-2013 1.60% $ 1.96 reimbursement.
120 Months $ 15,079
Notes: OPEN; PAYING FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
------------------------------ --------- -------- ----------------
36 Payless Shoes - - Market
Retail, Suite: I102Y See assumption:
Feb-2004 to Jan-2014 $28 Nat'l
120 Months
Notes: OPEN; PAYING FULL RENT
37 Gallery Serengetti - - Option
Retail, Suite: I102Z See assumption:
Mar-2004 to Feb-2011 $ 37.5 Shop
84 Months
Notes: OPEN; PAYING FULL RENT
38 Honeycomb Hidecul - - Market
Retail, Suite: I103 See assumption:
Dec-2003 to Feb-2013 $27.5 Shop
20 Months
Notes: TENANT OPEN AND PAYING
FULL RENT
39 Foot Locker - - Market
Retail, Suite: I104 See assumption:
Dec-2003 to Nov-2013 $28.5 Nat'l
120 Months
Notes: OPEN; PAYING FULL RENT
40 Expressions [ILLEGIBLE] - - Market
Retail, Suite: I105 See assumption:
Jan-2004 to Dec-2013 $26 Nat'l
120 Months
Notes: OPEN; PAYING FULL RENT.
NOTE: Tenant has 50% rent
abatement for first three
months of 2004 and 2005
(monthly rent is $3,361.59
for first three months of 2004
and 2005, and $6
41 Shoe City - - Market
Retail, Suite: I106 See assumption:
Dec-2003 to Nov-2013 $24 Xxx
000 Months
Notes: OPEN; PAYING FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 7
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscelleneous Xxxxx Xxxxx Reimbursements
----------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
00 Xxxxx'x Xxxxx $ 24.00 Dec-2004 $ 24.72 - - - See method:
Retail, Suite: I107 2,000 $ 48,000 Dec-2005 $ 25.46 15% Admin
Dec-2003 to Nov-2013 0.41% $ 2.00 Dec-2006 $ 26.23 reimbursement.
120 Months $ 4,000 Dec-2007 $ 27.01
Dec-2008 $ 27.82
Dec-2009 $ 28.66
Dec-2010 $ 29.52
Dec-2011 $ 30.40
Dec-2012 $ 31.31
Notes: OPEN; PAYING FULL RENT
43 Technocolor Salon & S $ 25.00 Jan-2005 $ 25.75 - - - See method:
Retail, Suite: I108 4,413 $ 110,325 Jan-2006 $ 26.52 15% Admin
Jan-2004 to Dec-2013 0.91% $ 2.08 Jan-2007 $ 27.32 reimbursement.
120 Months $ 9,194 Jan-2008 $ 28.14
Jan-2009 $ 26.99
Jan-2010 $ 29.85
Jan-2011 $ 30.75
Jan-2012 $ 31.67
Jan-2013 $ 32.62
Notes: OPEN; PAYING FULL RENT
44 Sorint $ 24.99 Oct-2004 $ 32.99 - - - See method:
Retail, Suite: I109 1,955 $ 48,098 15% Admin
Dec-2003 to Dec-2008 0.41% $ 2.68 reimbursement.
60 Months $ 4,081
Notes: OPEN; [ILLEGIBLE] s.f.
rent reduction until
movie theater opens (expected
10/04)
45 Ladies Workout Expres $ 32.26 Feb-2010 $ 37.10 - - - See method:
Retail, Suite: I110 1,375 $ 44,358 15% Admin
Feb-2005 to Jan-2015 0.28% $ 2.69 reimbursement.
120 Months $ 3,598
Notes: LEASE EXECUTED AS OF
8/31/04: TENANT EXPECTED TO
BE OPEN BY 2/1/05
46 Cambridge Beauty Supp $ 26.00 Dec-2004 $ 26.78 - - - See method:
Retail, Suite: J101 2,900 $ 75,400 Dec-2005 $ 27.58 15% Admin
Dec-2003 to Nov-2013 0.60% $ 2.1? Dec-2006 $ 28.41 reimbursement.
120 Months $ 6,283 Dec-2007 $ 29.26
Dec-2008 $ 30.14
Dec-2009 $ 31.05
Dec-2010 $ 31.99
Dec-2011 $ 32.94
Dec-2012 $ 33.92
Notes: OPEN; TENANT PAYING
FULL RENT
47 Big Screen Store $ 23.00 Dec-2008 $ 25.30 - - See method:
Retail, Suite: J102 4,500 $ 103,500 15% Admin
Jan-2004 to Dec-2013 0.93% $ 1.92 reimbursement.
120 Months $ 8,625
Notes: OPEN; TENANT PAYING
FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
----------------------------- --------- -------- ----------------
00 Xxxxx'x Xxxxx - - Xxxxxx
Retail, Suite: I107 See assumption:
Dec-2003 to Nov-2013 $25 Shop
120 Months
Notes: OPEN; PAYING FULL RENT
43 Technocolor Salon & S - - Market
Retail, Suite: I108 See assumption:
Jan-2004 to Dec-2013 $25 Shop
120 Months
Notes: OPEN; PAYING FULL RENT
44 Sorint - - Option
Retail, Suite: I109 See assumption:
Dec-2003 to Dec-2008 $ 37.5 Reset
60 Months
Notes: OPEN; [ILLEGIBLE] s.f.
real reduction until
movie theater opens (expected
10/04)
45 Ladies Workoul Expres - - Option
Retail, Suite: I110 See assumption:
Feb-2005 to Jan-2015 $35 Shop
120 Months
Notes: LEASE EXECUTED AS OF
8/31/04: TENANT EXPECTED TO
BE OPEN BY 2/1/05
46 Cambridge Beauty Supp - - Market
Retail, Suite: J101 See assumption:
Dec-2003 to Nov-2013 $26 Nat'l
120 Months
Notes: OPEN; TENANT PAYING
FULL RENT
47 Big Screen Store - - Market
Retail, Suite: J102 See assumption:
Jan-2004 to Dec-2013 $23 Shop
120 Months
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 8
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscelleneous Xxxxx Xxxxx Reimbursements
--------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
48 McHunu House of Style $ 26.50 Jun-2009 $ 30.47 - - - See method:
Retail, Suite: J103 2,900 $ 76,850 15% Admin
Aug-2004 to Jul-2014 0.60% $ 2.21 reimbursement.
120 Months $ 6,404
Notes: TENT OPEN AND PAYING
FULL RENT
49 Reggiano's $ 25.00 Jun-2007 $ 27.00 - - - See method
Retail, Suite: J104 2,000 $ 50,000 Jun-2010 $ 29.70 15% Admin
Oct-2004 to Sep-2014 0.41% $ 2.88 Jun-2013 $ 30.59 reimbursement.
120 Months $ 4,167
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN;
rent expected to commence
10/1/2004
50 Capital Xxxxx (Only N $ 40.00 Dec-2004 $ 41.20 - - - See method:
Retail, Suite: J105 1,500 $ 60,000 Dec-2005 $ 42.44 15% Admin
Dec-2003 to Nov-2008 0.31% $ 3.33 Dec-2006 $ 43.74 reimbursement.
60 Months $ 5,000 Dec-2007 $ 45.02
Notes: OPEN; PAYING FULL RENT
51 African Stargina $ 31.50 May-2005 $ 32.45 - - - See method:
Retail, Suite: J106 1,500 $ 47,250 May-2006 $ 33.42 15% Admin
Jun-2004 to May-2014 0.31% $ 2.63 May-2007 $ 34.42 reimbursement.
120 Months $ 3,938 May-2008 $ 35.45
May-2009 $ 36.52
May-2010 $ 37.61
May-2011 $ 38.74
May-2012 $ 39.90
May-2013 $ 41.10
May-2014 $ 42.33
Notes: RENT COMMENCED 6/1/04.
HOWEVER, TENANT NOT YET OPEN
52 Sweet Tooth Cakes & P $ 35.00 Feb-2005 $ 36.05 - - - See method:
Retail, Suite : L101 1,400 $ 49,000 Feb-2006 $ 37.13 15% Admin
Feb-2004 to Jan-2008 0.29% $ 2.92 Feb-2007 $ 38.25 reimbursement.
60 Months $ 4,083 Feb-2008 $ 38.39
Notes: OPEN; PAYING FULL RENT
53 Cold Stone Creamery $ 37.00 Jan-2005 $ 38.11 - - - See method:
Retail, Suite : L102 1,157 $ 42,809 Jan-2006 $ 39.25 15% Admin
Jan-2004 to Dec-2008 0.24% $ 3.08 Jan-2007 $ 40.43 reimbursement.
60 Months $ 3,567 Jan-2008 $ 41.64
Notes: OPEN; PAYING FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
----------------------------- --------- -------- ----------------
48 McHunu House of Style - - Market
Retail, Suite: J103 See assumption:
Aug-2004 to Jul-2014 $28 Nat'l
120 Months
Notes: TENT OPEN AND PAYING
FULL RENT
49 Reggiano's - - Market
Retail, Suite: J104 See assumption:
Oct-2004 to Sep-2014 $26 Nat'l
120 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN;
rent expected to commenced
10/1/2004
50 Capital Xxxxx (Only N - - Option
Retail, Suite: J105 See assumption:
Dec-2003 to Nov-2008 $47.5 Shop
120 Months
Notes: OPEN; PAYING FULL RENT
51 African Stargina - - Market
Retail, Suite: J106 See assumption:
Jun-2004 to May-2014 $35 Shop
120 Months
Notes: RENT COMMENCED 6/1/04.
HOWEVER, TENANT NOT YET OPEN.
52 Sweet Tooth Cakes & P - - Option
Retail, Suite: L101 See assumption:
Feb-2004 to Jan-2008 $47.5 Shop
60 Months
Notes: OPEN; PAYING FULL RENT
53 Cold Stone Creatnery - - Market
Retail, Suite: L102 See assumption:
Jan-2004 to Dec-2008 $35 Shop
60 Months
Notes: OPEN; PAYING FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 9
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscelleneous Xxxxx Xxxxx Reimbursements
----------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
54 Stonefish Grill $ 35.00 Aug-2005 $ 36.05 - - - See method:
Retail, Suite: L103 8,085 $ 212,975 Aug-2006 $ 37.13 15% Admin
Oct-2004 to Sep-2014 1.25% $ 2.92 Aug-2007 $ 38.25 reimbursement.
120 Months $ 17,748 Aug-2008 $ 39.39
Aug-2009 $ 40.57
Aug-2010 $ 41.79
Aug-2011 $ 43.05
Aug-2012 $ 44.34
Aug-2013 $ 45.67
Aug-2014 $ 47.04
Notes: EXECUTED LEASE;
TENANT NOT YET OPEN. Rent
commences 9/1/04, tenant
expected to open 10/1/04
55 Red Star Tavern $ 35.00 Mar-2005 $ 36.05 - - - See method:
Retail, Suite: L104 7,661 $ 268,135 Mar-2006 $ 37.13 15% Admin
Mar-2004 to Feb-2014 1.59% $ 2.92 Mar-2007 $ 38.25 reimbursement.
120 Months $ 22,345 Mar-2008 $ 39.39
Mar-2009 $ 40.57
Mar-2010 $ 41.79
Mar-2011 $ 43.05
Mar-2012 $ 44.34
Mar-2013 $ 45.67
Notes: OPEN; PAYING FULL RENT
56 Xxxxxxx Shoes $ 20.50 Jun-2005 $ 21.11 - - - See method:
Retail, Suite: M101 1,998 $ 40,955 Jun-2006 $ 21.75 15% Admin
Jun-2004 to May-2011 0.41% $ 1.71 Jun-2007 $ 22.40 reimbursement.
84 Months $ 3,413 Jun-2008 $ 23.07
Jun-2009 $ 23.75
Jun-2010 $ 24.48
Notes: TENANT OPEN AND PAYING
FULL RENT
57 VACANT $ 31.00 Mar-2006 $ 31.93 - - - See method:
Retail, Suite: M102 1,157 $ 35,867 Mar-2007 $ 32.89 15% Admin
Mar-2005 to Feb-2015 0.24% $ 2.58 Mar-2008 $ 33.87 reimbursement.
120 Months $ 2,989 Mar-2009 $ 34.89
Mar-2010 $ 35.94
Mar-2011 $ 37.02
Mar-2012 $ 38.13
Mar-2013 $ 39.27
Mar-2014 $ 40.45
Notes: VACANT; MULTIPLE PROSPECTS
AT PRO FORMA RENT BUT NO DEFINITE
LIKELY TENANT YET
58 Xxxxx & Rons Rostaure $ 26.70 Feb-2010 $ 30.70 - - - See method:
Retail, Suite: M103 6.085 $ 162,469 15% Admin
Feb-2005 to Jan-2015 1.29% $ 2.22 reimbursement.
120 Months $ 13,539
Notes: EXECUTED LEASE BUT TENANT
NOT YET OPEN; Opening expected
2/1/05
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
----------------------------- --------- -------- ----------------
54 Stonefish Grill - - Market
Retail, Suite: L103 See assumption:
Oct-2004 to Sep-2014 $ 37.5 Rest
120 Months
Notes: EXECUTED LEASE;
TENANT NOT YET OPEN. Rent
commences 9/1/04, tenant
expected to open 10/1/04
55 Red Star Tavern - - Market
Retail, Suite: L104 See assumption:
Mar-2004 to Feb-2014 $ 37.5 Rest
120 Months
Notes: OPEN; PAYING FULL RENT
56 Xxxxxxx Shoes - - Option
Retail, Suite: M101 See assumption:
Jun-2004 to May-2011 $ 42 shop
84 Months
Notes: TENANT OPEN AND PAYING
FULL RENT
57 VACANT - - Market
Retail, Suite: M102 See assumption:
Mar-2005 to Feb-2015 $ 37.5 Rest
120 Months
Notes: VACANT; MULTIPLE PROSPECTS
AT PRO FORMA RENT BUT NO DEFINITE
LIKELY TENANT YET
58 Xxxxx & Rons Rostaure - - Market
Retail, Suite: M103 See assumption:
Feb-2005 to Jan-2015 $ 28 Rest
120 Months
Notes: EXECUTED LEASE BUT TENANT
NOT YET OPEN; Opening expected
2/1/05
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 10
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
--------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
59 Kobe Steakhouse $ 18.50 Dec-2005 $ 19.06 - - - See method:
Retail, Suite: M104 7,520 $ 139,120 Dec-2006 $ 19.63 15% Admin
Dec-2004 to Nov-2014 1.56% $ 1.54 Dec-2007 $ 20.22 reimbursement.
120 Months $ 11,593 Dec-2008 $ 20.82
Dec-2009 $ 21.45
Dec-2010 $ 22.59
Dec-2011 $ 22.75
Dec-2012 $ 23.44
Dec-2013 $ 24.14
Notes: EXECUTED LEASE;
TENANT NOT YET OPEN;
Tenant expected to open
12/1/04
60 Golden Coral $ 9.40 Jan-2009 $ 10.43 - - - See method:
Retail, Suite: Pad 1 11,967 $ 112,500 Jan-2014 $ 11.58 15% Admin
Jan-2004 to Dec-2018 2.48% $ 0.76 reimbursement.
160 Months $ 9,375
Notes: OPEN; TENANT PAYING
FULL RENT
61 Bugaboo Creek Steakho $ 17.19 Dec-2008 $ 18.91 - - - See method:
Retail, Suite: Pad 2 6,400 $ 110,000 Dec-2013 $ 20.80 15% Admin
Dec-2003 to Nov-2018 1.33% $ 1.43 reimbursement.
180 Months $ 9,167
Notes: OPEN; TENANT PAYING
FULL RENT
62 Pizzeria Uno $ 19.23 Nov-2008 $ 21.54 - - - See method:
Retail, Suite: Pad 3 5,719 $ 110,000 Nov-2013 $ 24.13 15% Admin
Nov-2003 to Oct-2018 1.19% $ 1.60 reimbursement.
180 Months $ 9,167
Notes: OPEN; TENANT PAYING
FULL RENT
63 Xxxxx X. Cheese $ 8.41 Mar-2009 $ 0.92 - - - See method:
Retail, Suite: Pad 4 11,300 $ 95,000 Mar-2014 $ 0.95 15% Admin
Mar-2004 to Feb-2019 2.34% $ 0.70 reimbursement.
180 Months $ 7,917
Notes: OPEN; TENANT PAYING
FULL RENT
64 Provident Bank $ 29.55 Nov-2008 $ 33.09 - - - See method:
Retail, Suite: Pad 5 3,215 $ 95,000 Nov-2013 $ 37.07 15% Admin
Nov-2003 to Oct-2018 0.67% $ 2.46 reimbursement.
180 Months $ 7,917
Notes: OPEN; TENANT PAYING
FULL RENT
65 Chic-F&A $ 20.00 Dec-2008 $ 22.40 - - - See method:
Retail, Suite: Pad 6 4,253 $ 85,000 Dec-2013 $ 25.09 15% Admin
Dec-2003 to Nov-2023 0.86% $ 1.67 Dec-2018 $ 28.10 reimbursement.
240 Months $ 7,083
Notes: OPEN; TENANT PAYING
FULL RENT
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Term Amount Amount for this tenant
--------------------------- --------- -------- ----------------
59 Kobe Steakhouse - - Market
Retail, Suite: M104 See assumption:
Dec-2004 to Nov-2014 $28 Rest
120 Months
Notes: EXECUTED LEASE;
TENANT NOT YET OPEN;
Tenant expected to open
12/1/04
60 Golden Coral - - Market
Retail, Suite: Pad 1 See assumption:
Jan-2004 to Dec-2018 Iden C Grd Rent
160 Months
Notes: OPEN; TENANT PAYING
FULL RENT
61 Bugaboo Creek Steakho - - Market
Retail, Suite: Pad 2 See assumption:
Dec-2003 to Nov-2018 gaboo Grnd Rent
180 Months
Notes: OPEN: TENANT PAYING
FULL RENT
62 Pizzeria Uno - - Market
Retail, Suite: Pad 3 See assumption:
Nov-2003 to Oct-2018 Uno Grnd Rent
180 Months
Notes: OPEN; TENANT PAYING
FULL RENT
00 Xxxxx X. Xxxxxx - - Xxxxxx
Retail, Suite: Pad 4 See assumption:
Mar-2004 to Feb-2019 Iden C Grd Rent
180 Months
Notes: OPEN; TENANT PAYING
FULL RENT
64 Provident Bank - - Market
Retail, Suite: Pad 5 See assumption:
Nov-2003 to Xxx-0000 Xxxx C Grd Rent
180 Months
Notes: OPEN; TENANT PAYING
FULL RENT
65 Chic-F&A - - Market
Retail, Suite: Pad 6 See assumption:
Dec-2003 to Nov-2023 Uno Grnd Rent
240 Months
Notes: OPEN; TENANT PAYING
FULL RENT
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 11
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per Year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscellaneous Xxxxx Xxxxx Reimbursements
---------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
66 Xxxx'x Theaters IMagi $ 22.00 Oct-2009 $ 24.20 - - - See method:
Retail, Suite: K101 52,500 $ 1,155,000 Oct-2014 $ 28.82 15% Admin
Oct-2004 to Sep-2024 10.88% $ 1.83 Oct-2019 $ 29.28 reimbursement.
240 Months $ 96,250
Notes: EXECUTED LEASE:
TENANT OPENS AND RENT
COMMENCES 10/8/04
67 Carolina Kitchen $ 28.50 Dec-2009 $ 32.50 - - - See method:
Retail, Suite: P102 2,800 $ 79,800 15% Admin
Dec-2004 to Nov-2014 0.58% $ 2.38 reimbursement.
120 Months $ 6,650
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN: Rent
expected to commence 12/1/04
68 U.S. Army $ 32.10 - - - - - See method:
Retail, Suite: P101 4,700 $ 150,870 15% Admin
Sep-2004 to Aug-2009 0.97% $ 2.67 reimbursement.
60 Months $ 12,572
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; Rent
commences 9/1/04. tenant
expected to open 12/1/04
69 Chevy Chase ATM (2 un.) $ 225.00 - - - - - Full Service:
Retail, Suite: P103 160 $ 36,000 Pays no expense
Dec-2004 to Nov-2024 0.03% $ 16.75 reimbursement.
240 Months $ 3,000
Notes: ATM LOCATIONS (2):
LEASE EXECUTED BUT TENANT
NOT YET OPEN; EXPECTED RENT
COMMENCEMENT IN 12/04
70 Blue Bambu $ 13.98 Mar-2005 $ 20.97 - - - See method:
Retail, Suite: Q101 4,050 $ 56,619 Jul-2005 $ 27.96 15% Admin
Jan-2005 to Dec-2019 0.84% $ 1.17 Jan-2006 $ 28.80 reimbursement.
180 Months $ 4,718 Jan-2007 $ 29.66
Jan-2008 $ 30.55
Jan-2009 $ 31.47
Jan-2010 $ 32.41
Jan-2011 $ 33.39
Jan-2012 $ 34.39
Jan-2013 $ 35.42
Jan-2014 $ 36.48
Jan-2015 $ 37.58
Jan-2016 $ 38.70
Jan-2017 $ 39.87
Jan-2018 $ 41.06
Jan-2019 $ 42.29
Notes: EXECUTED LEASE:
EXPECTED RENT COMMENCEMENT
ON 1/1/05
71 Next Day Blinds $ 31.00 Dec-2005 $ 31.93 - - - See method:
Retail, Suite: Q103 3,000 $ 93,000 Dec-2006 $ 32.89 15% Admin
Dec-2004 to Nov-2009 0.62% $ 2.58 Dec-2007 $ 33.87 reimbursement.
60 Months $ 7,750 Dec-2008 $ 34.89
Notes: EXECUTED LEASE; EXPECTED
RENT COMMENCEMENT IN 12/04
DESCRIPTION LEASING COST UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Team Amount Amount for this tenant
--------------------------- --------- -------- ----------------
66 Xxxx'x Theaters IMagi - - Market
Retail, Suite: K101 See assumption:
Oct-2004 to Sep-2024 DSW
240 Months
Notes: EXECUTED LEASE:
TENANT OPENS AND RENT
COMMENCES 10/8/04
67 Carolina Kitchen - - Option
Retail, Suite: P102 See assumption:
Dec-2004 to Nov-2014 $28 Rest
120 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN: Rent
expected to commence 12/1/04
68 U.S. Army - - Option
Retail, Suite: P101 See assumption:
Sep-2004 to Aug-2009 $27.5 Shop
60 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN; Rent
commences 9/1/04 tenant
expected to open 12/1/04
69 Chevy Chase ATM (2 un.) - - Market
Retail, Suite: P103 See assumption:
Dec-2004 to Nov-2024 DSW
240 Months
Notes: ATM LOCATIONS (2):
LEASE EXECUTED BUT TENANT
NOT YET OPEN; EXPECTED RENT
COMMENCEMENT IN 12/04
70 Blue Bambu - - Option
Retail, Suite: Q101 See assumption:
Jan-2005 to Dec-2019 $ 37.5 Shop
180 Months
Notes: EXECUTED LEASE:
EXPECTED RENT COMMENCEMENT
ON 1/1/05
71 Next Day Blinds - - Market
Retail, Suite: Q103 See assumption:
Dec-2004 to Nov-2009 $ 47.5 Shop
60 Months
Notes: EXECUTED LEASE EXPECTED
RENT COMMENCEMENT IN 12/04
(continued on next page)
Software : ARGUS Ver. 11.0.04 Blvd at The Capital Centre Date: 9/2/04
File : Blvd at the Capital Centre Updated 9_0 2 Time: 12:23 pm
Property Type : Retail Ref#: AAE
Portfolio : Page: 12
PRESENTATION RENT ROLL & CURRENT TERM TENANT SUMMARY
As of Sep-2004 for 482,525 Square Feet
(Continued from previous page)
DESCRIPTION AREA BASE RENT RENT ADJUSTMENTS & CATEGORIES ABATEMENTS REIMBURSEMENT
Tenant Name Floor Rate & Amount CPI & Current Months Rent Description of
Type & Suite Number SqFt per year Changes Changes Porters' Wage to to Operating Expense
Lease Dates & Term Bldg Share per Month on to Miscelleneous Xxxxx Xxxxx Reimbursements
--------------------------- ---------- ------------- -------- --------- ------------- ------- ----- -----------------
72 Infusions Cafe $ 14.00 Apr-2005 $ 24.50 - - - See method:
Retail, Suite: Q102 3,350 $ 46,896 May-2005 $ 28.00 15% Admin
Jan-2005 to Dec-2014 0.69% $ 1.17 Jan-2006 $ 28.00 reimbursement.
120 Months $ 3,908 Jan-2010 $ 32.20
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN:
EXPECTED RENT COMMENCEMENT
1/1/05
73 Circuit City $ 14.50 Aug-2009 $ 15.95 - - - See method:
Retail, Suite: PC101 33,828 $ 490,506 Aug-2014 $ 17.55 7% Admin
Aug-2004 to Jul-2019 7.01% $ 1.21 reimbursement.
180 Months $ 40,876
Notes: TENANT OPEN AND RENT
PAYING
74 VACANT $ 22.00 Mar-2010 $ 24.64 - - - See method:
Retail, Suite: PC 102 6,106 $ 134,332 15% Admin
Mar-2005 to Feb-2015 1.27% $ 1.83 reimbursement.
120 Months $ 11,194
Notes: VACANT: LEASE AT
EXECUTION STAGE WITH BOMBAY
AT PRO FORMA TERMS: IF
EXECUTED OPENING EXPECTED
3/1/05
75 Sports Authority $ 12.50 - - - - - See method:
Retail, Suite: PC103 40,500 $ 506,250 7% Admin
Aug-2004 to Jul-2014 8.33% $ 1.04 reimbursement.
120 Months $ 42,188
Notes: TENANT OPEN AND RENT
PAYING
76 DSW Shoe Warehouse $ 13.25 Aug-2009 $ 14.25 - - - See method:
Retail, Suite: PC104 25,000 $ 331,250 15% Admin
Aug-2004 to Jul-2014 5.16% $ 1.10 reimbursement.
120 Months $ 27,604
Notes: TENANT OPEN AND RENT
PAYING
77 Office Depot $ 13.00 Oct-2009 $ 13.75 - - - See method:
Retail, Suite: PC105 18,000 $ 234,000 Oct-2014 $ 14.50 15% Admin
Oct-2004 to Sep-2019 3.73% $ 1.08 reimbursement.
180 Months $ 19,500
Notes: EXECUTED LEASE: TENANT
NOT YET OPEN BUT RENT COMMENCES 9/15/04
Total Occupied SqFt 462,525
Total Available SqFt 0
DESCRIPTION LEASING COSTS UPON EXPIRATION
Tenant Name Imprvmnts Commssns Assumption about
Type & Suite Number Rate Rate subsequent terms
Lease Dates & Team Amount Amount for this tenant
--------------------------- --------- -------- ----------------
72 Infusions Cafe - - Option
Retail, Suite: Q102 See assumption:
Jan-2005 to Dec-2014 $30 Rest
120 Months
Notes: EXECUTED LEASE BUT
TENANT NOT YET OPEN:
EXPECTED RENT COMMENCEMENT
0/0/00
00 Xxxxxxx Xxxx - - Xxxxxx
Retail, Suite: PC101 See assumption:
Aug-2004 to Jul-2019 Circuit
180 Months
Notes: TENANT OPEN AND RENT
PAYING
74 VACANT - - Market
Retail, Suite: PC102 See assumption:
Mar-2005 to Feb-2015 $22 6000 SF
120 Months
Notes: VACANT: LEASE AT
EXECUTION STAGE WITH BOMBAY
AT PRO FORMA TERMS: IF
EXECUTED OPENING EXPECTED
3/1/05
75 Sports Authority - - Market
Retail, Suite: PC103 See assumption:
Aug-2004 to Jul-2014 Sports Xxx
000 Months
Notes: TENANT OPEN AND RENT
PAYING
76 DSW Shoe Warehouse - - Market
Retail, Suite: PC104 See assumption:
Aug-2004 to Jul-2014 DSW
120 Months
Notes: TENANT OPEN AND RENT
PAYING
77 Office Depot - - Market
Retail, Suite: PC105 See assumption:
Oct-2004 to Sep-2019 Office Depot
180 Months
Notes: EXECUTED LEASE: TENANT
NOT YET OPEN BUT RENT COMMENCES 9/15/04
EXHIBIT "B"
Blu Bambu - $38,311.52 due Xxxxxxxxxxxx Properties
DSW - $70,312.50 due National Real Estate Brokerage
Xxxxxx Xxxxxx - $35,000 due Donnell & Associates Inc
Kobe Japanese- $22,170.84 due Xxxxxxx X Xxxxx Commercial Realty payable
1-1-05
Last Stop - $28,687.50 due Solomon Real Estate
Next Day Blinds - $19,117.99 due Mar-West Realty Partners
Office Depot - $65,000.00 due KLNB, LLC
Starbucks - $11,925.00 due Xxxxxxx Xxxx Company
TeamingUp/Expressions - $26,016.97 due National Real Estate Brokerage
EXHIBIT "C"
The Cordish Company Lease Deposits Report 08-23-2004 Page 1
System Date: 08-23-2004
System Time: 2:13 pm
Files Used: LEASE.PML
HISTORY.PMT, CURRENT.PMT
PROPERTY.PMP
TENANT.PMN
From Date: 01-01-2000 To Date: 08-23-2004
Compare Date Range To: Transaction date
Xxxx Transaction Transaction Description/
Unit Date Amount Unit Deposit Type
---- ---- ------ ---- ------------
000 XXXXXXX XXXXXX
000-XXXXXX X000-XXXXXXX ST(0) African Stargina 173 Refundable Security
173 10-31-2003 4,513.50 Security Deposit - Refundabl Secrty
173 10-31-2003 4,513.50- Deposit Payment - Refundable Secrty
222-BIG DA L222-BIG DADDYS(0) Big Daddy's 370 Refundable Security
370 06-13-2003 12,447.78 Security Deposit - Refundabl Secrty
370 06-17-2003 12,447.78- Deposit Payment - Refundable Secrty
222-BLO BA L222-BLU BAMBU(0) Blu Bambu 350 Refundable Security
350 12-09-2003 11,191.50 Security Deposit - Refundabl Secrty
350 12-11-2003 11,191.50- Deposit Payment - Refundable Secrty
222-PRIME L222-CAMBRIDGE(0) Cambridge Beauty Supply 155 Refundable Security
155 02-14-2003 7,153.33 Security Deposit - Refundabl Secrty
155 02-14-2003 7,153.33- Deposit Payment - Refundable Secrty
222-CAROLI L222-CAROLINAKE(0) CarolinaKitchen/L Londn Entr 370 Refundable Security
370 05-13-2004 8,073.00 Security Deposit - Refundabl Secrty
370 05-14-2004 8,073.00- Deposit Payment - Refundable Secrty
222-CHANGE L222-CHANGES(0) Changes Capital Centre, Inc. 220 Refundable Security
220 07-24-2003 10,199.99 Security Deposit - Refundabl Secrty
220 07-25-2003 10,199.99- Deposit Payment - Refundable Secrty
222-COLDST L222-COLD STONE(0) Cold Stone Creamery, Inc. RR3 Refundable Security
RR3 05-26-2002 3,567.42 Security Deposit - Refundabl Secrty
RR3 06-27-2002 3,567.42- Deposit Payment - Refundable Secrty
RR3 01-29-2004 3,567.42- Deposit Payment - Refundable Secrty
RR3 02-25-2004 3,567.42 Chck 1242 - Retrnd - Refndbl Secrty
222-DRAKES L222-DRAKES(0) Drakes Place 105 Refundable Security
105 09-19-2003 4,000.00 Security Deposit - Refundabl Secrty
Deposit Interest Interest
Balance Balance Paid YTD
------- -------- --------
000 XXXXXXX XXXXXX
000-XXXXXX L222-AFRICAN ST(0) 4,513.50 .00 .00
L222-AFRICAN ST(0) LEASE TOTALS: 4,513.50* .00* .00*
222-BIG DA L222-BIG DADDYS(0) 12,447.78 .00 .00
L222-BIG DADDYS(0) LEASE TOTALS: 12,447.78* .00* .00*
222-BLO BA L222-BLU BAMBU(0) 11,191.50 .00 .00
L222-BLU BAMBU(0) LEASE TOTALS: 11,191.50* .00* .00*
222-PRIME L222-CAMBRIDGE(0) 7,153.33 .00 .00
L222-CAMBRIDGE(0) LEASE TOTALS: 7,153.33* .00* .00*
222-CAROLI L222-CAROLINAKE(0) 8,073.00 .00 .00
L222-CAROLINAKI(0) LEASE TOTALS: 8,073.00* .00* .00*
222-CHANGE L222-CHANGES(0) 10,199.99 .00 .00
L222-CHANGES(0) LEASE TOTALS: 10,199.99* .00* .00*
222-COLDST L222-COLD STONE(0) 3,567.42 .00 .00
L222-COLD STONE(0) LEASE TOTALS: 3,567.42* .00* .00*
222-DRAKES L222-DRAKES(0) 4,000.00 .00 .00
The Cordish Company Lease Deposits Report 08-23-2004 Page 2
System Date: 08-23-2004
System Time: 2:13 pm
Files Used: LEASE.PML
HISTORY.PMT, CURRENT.PMT
PROPERTY.PMP
TENANT.PMN
From Date: 01-01-2000 To Date: 08-23-2004
Compare Date Range To: Transaction date
Xxxx Transaction Transaction Description/
Unit Date Amount Unit Deposit Type
---- ---- ------ ---- ------------
222 CAPITAL CENTRE
L222-DRAKES(0) 105 09-19-2003 4,000.00- Deposit Payment - Refundable Secrty
105 12-10-2003 4,000.00 Chck 1065 - Retrnd - Refndbl Secrty
105 12-10-2003 4,000.00- Deposit Payment - Refundable Secrty
222-DYNAMI L222-DYNAMIX(0) Dynamix a/k/a Dynamics Inc 35 Refundable Security
35 06-24-2004 8,775.00 Security Deposit - Refundabl Secrty
35 06-25-2004 8,775.00- Deposit Payment - Refundable Secrty
222-5 GUYS L222-FIVE GUYS(0) Five Guys Restaurant 133 Refundable Security
133 11-17-2003 4,639.00 Security Deposit - Refundabl Secrty
133 11-18-2003 4,639.00- Deposit Payment - Refundable Secrty
222-GAWCA L222-GALLERY OF(0) Gallery of African Wildlife 65 Refundable Security
65 10-31-2003 5,683.33 Security Deposit - Refundabl Secrty
65 10-31-2003 5,683.33- Deposit Payment - Refundable Secrty
65 10-31-2003 5,683.33 Chck 2476 - Retrnd - Refndbl Secrty
65 10-31-2003 5,683.33- Deposit Payment - Refundable Secrty
222-XXXXXX L222-XXXXXX KNI(0) GladysKnight&RonWinansChckn& RR7 Refundable Security
RR7 06-24-2004 15,600.00 Security Deposit - Refundabl Secrty
RR7 06-25-2004 15,600.00- Deposit Payment - Refundable Secrty
222-HEAD 2 L222-HEAD2HEAD(0) Head 2 Head, Inc. 275 Refundable Security
275 10-03-2002 6,655.00 Security Deposit - Refundabl Secrty
275 10-04-2002 6,655.00- Deposit Payment - Refundable Secrty
222-HONEYC L222-HONEYCOMB(0) Honeycomb Hideout, LLC. 100 Refundable Security
100 06-26-2003 6,478.16 Security Deposit - Refundabl Secrty
100 06-26-2003 6,478.16- Deposit Payment - Refundable Secrty
100 06-30-2003 6,478.16 Check 417 - Revrsd - Refndbl Secrty
100 07-16-2003 6,478.16- Deposit Payment - Refundable Secrty
Deposit Interest Interest
Balance Balance Paid YTD
------- -------- --------
222 CAPITAL CENTRE
L222-DRAKES(0)
L222-DRAKES(0) LEASE TOTALS: 4,000.00* .00* .00*
222-DYNAMI L222-DYNAMIX(0) 8,775.00 .00 .00
L222-DYNAMIX(0) LEASE TOTALS: 8,775.00* .00* .00*
222-5 GUYS L222-FIVE GUYS(0) 4,639.00 .00 .00
L222-FIVE GUYS(0) LEASE TOTALS: 4,639.00* .00* .00*
222-GAWCA L222-GALLERY OF(0) 5,683.33 .00 .00
L222-GALLERY OF(0) LEASE TOTALS: 5,683.33* .00* .00*
222-XXXXXX L222-XXXXXX KNI(0) 15,600.00 .00 .00
L222-XXXXXX KNI(0) LEASE TOTALS: 15,600.00* .00* .00*
222-HEAD 2 L222-HEAD2HEAD(0) 6,655.00 .00 .00
L222-HEAD2HEAD(0) LEASE TOTALS: 6,655.00* .00* .00*
222-HONEYC L222-HONEYCOMB(0) 6,478.16 .00 .00
L222-HONEYCOMB(0) LEASE TOTALS: 6,478.16* .00* .00*
The Cordish Company Lease Deposits Report 08-23-2004 Page 3
System Date: 08-23-2004
System Time: 2:13 pm
Files Used: LEASE.PML
HISTORY. PMT, CURRENT.PMT
PROPERTY.PMP
TENANT.PMN
From Date: 01-01-2000 To Date: 08-23-2004
Compare Date Range To: Transaction date
Xxxx Transaction Transaction Description/
Unit Date Amount Unit Deposit Type
---- ---- ------ ---- ------------
222 Capital Centre 70 10-31-2002 1,000.00 Security Deposit - Refundabl Secrty
70 11-01-2002 500.00 Check 134 - Retrnd - Refndbl Secrty
70 12-13-2002 1,000.00- Deposit Payment - Refundable Secrty
70 11-01-2002 500.00- Deposit Payment - Refundable Secrty
70 06-30-2004 1,000.00 Forfeit Deposit - Refundable Secrty
222-INFUSI L222-INFUSIONS(0) Infusions Tea Cafe 345 Refundable Security
345 03-19-2004 9,135.42 Security Deposit - Refundabl Secrty
345 03-22-2004 9,135.42- Deposit Payment - Refundable Secrty
222- JILLI L222-JILLIANO S(0) Jilliano Shoes, LLC. RR5 Refundable Security
RR5 10-23-2002 4,050.76 Security Deposit - Refundabl Secrty
RR5 10-23-2002 4,050.76- Deposit Payment - Refundable Secrty
222-KOBE J L222-KOBE JAPAN(0) Kobe Japanese Steak House RR8 Refundable Security
RR8 03-19-2004 12,700.00 Security Deposit - Refundabl Secrty
RR8 03-22-2004 12,700.00- Deposit Payment - Refundable Secrty
222-LUCAYA L222-LUCAYA(0) Fashion Group Inc 250 Refundable Security
250 04-11-2002 5,250.00- Deposit Payment - Refundable Secrty
250 04-11-2002 5,250.00 Security Deposit - Refundabl Secrty
250 04-11-2002 5,250.00 Check 3953 - Error - Refndbl Secrty
250 04-11-2002 5,250.00- Deposit Payment - Refundable Secrty
222-MCHUNU L222-MCHUNU(0) Mchunu House of Syle Inc 185 Refundable Security
185 10-31-2003 7,000.00 Security Deposit - Refundabl Secrty
185 10-31-2003 7,000.00- Deposit Payment - Refundable Secrty
150 08-15-2003 4,996.00 Security Deposit - Refundabl Secrty
150 08-15-2003 4,996.00- Security Deposit - Refundabl Secrty
222-NAILS L222-ONLY NAILS(0) Capital Nails 156 Refundable Security
156 10-30-2002 5,000.00 Security Deposit - Refundabl Secrty
156 10-30-2002 5,000.00- Deposit Payment - Refundable Secrty
Deposit Interest Interest
Balance Balance Paid YTD
------- -------- --------
222 Capital Centre
222-INFUSI L222-INFUSIONS(0) 9,135.42 .00 .00
L222-INFUSIONS(0) Lease Totals: 9,135.42* .00* .00*
222- JILLI L222-JILLIANO S(0) 4,050.76 .00 .00
L222-JILLIANO S(0) Lease Totals: 4,050.76* .00* .00*
222-KOBE J L222-KOBE JAPAN(0) 12,700.00 .00 .00
L222-KOBE JAPAN(0) Lease Totals: 12,700.00* .00* .00*
222-LUCAYA L222-LUCAYA(0) 5,250.00 .00 .00
L222-LUCAYA(0) Lease Totals: 5,250.00* .00* .00*
222-MCHUNU L222-MCHUNU(0) 7,000.00 .00 .00
L222-MCHUNU(0) Lease Totals: 7,000.00* .00* .00*
222-NAILS L222-ONLY NAILS(0) 5,000.00 .00 .00
The Cordish Company Lease Deposits Report 08-23-2004 Page 4
System Date: 08-23-2004
System Time: 2:13 pm
Files Used: LEASE.PML
HISTORY. PMT, CURRENT.PMT
PROPERTY.PMP
TENANT.PMN
From Date: 01-01-2000 To Date: 08-23-2004
Compare Date Range To: Transaction date
Xxxx Transaction Transaction Description/
Unit Date Amount Unit Deposit Type
---- ---- ------ ---- ------------
222 Capital Centre
222-QDOBA L222-QDOBA MEXI(0) Qdoba Mexican Grill 190 Refundable Security
190 03-07-2003 9,400.00 Security Deposit - Refundabl Secrty
190 03-07-2003 9,400.00- Deposit Payment - Refundable Secrty
222-QUIZNO L222-QUIZNO'S(0) Quiznos # 3495 140 Refundable Security
140 09-01-2003 4,894.10 Security Deposit - Refundable Secrty
140 01-05-2004 4,894.10- Deposit Payment - Refundable Secrty
140 01-05-2004 4,894.10 Check 99 - Returnd - Refndbl Secrty
140 01-05-2004 4,894.10- Deposit Payment - Refundable Secrty
222-REGGIA L222-REGGIANOS(0) Reggianos 175 Refundable Security
175 10-31-2003 4,891.67 Security Deposit - Refundabl Secrty
175 10-31-2003 4,891.67- Deposit Payment - Refundable Secrty
222-SHOE C L222-SHOE CITY(0) Shoe City/ESCO Ltd 95 Refundable Security
95 05-23-2002 14,648.00- Deposit Payment - Refundable Secrty
95 05-17-2002 14,648.00 Security Deposit - Refundabl Secrty
222-SOUL F L222-SOUL FIXIN(0) Soul Fixins 130 Refundable Security
130 01-26-2004 6,098.50 Security Deposit - Refundabl Secrty
130 02-18-2004 6,098.50- Deposit Payment - Refundable Secrty
222-SWEET L222-SWEETTOOTH(0) Sweet Tooth Cakes & Pastrs. RR4 Refundable Security
RR4 12-17-2002 4,736.00- Deposit Payment - Refundable Secrty
RR4 12-19-2002 4,736.00 Security Deposit - Refundabl Secrty
222-T-MOBI L222-T-MOBILE(0) T-Mobile 211 Refundable Security
211 10-22-2002 6,690.00- Deposit Payment - Refundable Secrty
211 10-30-2002 6,690.00 Security Deposit - Refundabl Secrty
Deposit Interest Interest
Balance Balance Paid YTD
------- -------- --------
222 Capital Centre
L222-ONLY NAILS(0) Lease Totals: 5,000.00* .00* .00*
222-QDOBA L222-QDOBA MEXI(0) 9,400.00 .00 .00
L222-QDOBA MEXI(0) Lease Totals: 9,400.00* .00* .00*
222-QUIZNO L222-QUIZNO'S(0) 4,894.10 .00 .00
L222-QUIZNO'S(0) Lease Totals: 4,894.10* .00* .00*
222-REGGIA L222-REGGIANOS(0) 4,891.67 .00 .00
L222-REGGIANOS(0) Lease Totals: 4,891.67* .00* .00*
222-SHOE C L222-SHOE CITY(0) 14,648.00 .00 .00
L222-SHOE CITY(0) Lease Totals: 14,648.00* .00* .00*
222-SOUL F L222-SOUL FIXIN(0) 6,098.50 .00 .00
L222-SOUL FIXIN(0) Lease Totals: 6,098.50* .00* .00*
222-SWEET L222-SWEETTOOTH(0) 4,736.00 .00 .00
L222-SWEETTOOTH(0) Lease Totals: 4,736.00* .00* .00*
222-T-MOBI L222-T-MOBILE(0) 6,690.00 .00 .00
L222-T-MOBILE(0) Lease Totals: 6,690.00* .00* .00*
The Cordish Company Lease Deposits Report 08-23-2004 Page 5
System Date: 08-23-2004
System Time: 2:13 pm
Files Used: LEASE.PML
HISTORY.PMT,CURRENT.PMT
PROPERTY.PMP
TENANT.PMN
From Date: 01-01-2000 To Date: 08-23-2004
Compare Date Range To: Transaction date
Xxxx Transaction Transaction Description/
Unit Date Amount Unit Deposit Type
---- ---- ------ ---- ------------
222 Capital Centre
222-TSAMIN L222-TEAMING UP(0) Teaming Up/Expressions 85 Refundable Security
85 06-24-2002 6,723.17 Security Deposit - Refundabl Secrty
85 06-25-2002 6,723.17- Deposit Payment - Refundable Secrty
85 06-25-2002 6,723.17 Chck 1685 - Retrnd - Refndbl Secrty
85 09-18-2002 6,700.00- Deposit Payment - Refundable Secrty
85 09-25-2002 23.17- Deposit Payment - Refundable Secrty
145 08-04-2003 10,793.75 Security Deposit - Refundabl Secrty
145 08-05-2003 10,793.75- Deposit Payment - Refundable Secrty
145 01-14-2004 9,193.75 Apply Deposit - Refundable Security
145 01-14-2004 275.81 Apply Deposit - Refundable Security
145 01-14-2004 920.00 Apply Deposit - Refundable Security
145 01-14-2004 404.19 Apply Deposit - Refundable Security
222-TOTAL L222-TOTAL SPOR(0) Total Sport, Inc. 221 Refundable Security
221 12-19-2002 9,756.41 Security Deposit - Refundabl Secrty
221 12-20-2002 9,756.41- Deposit Payment - Refundable Secrty
30 02-21-2002 4,000.00- Deposit Payment - Refundable Secrty
30 02-21-2002 4,000.00 Security Deposit - Refundabl Secrty
30 02-21-2002 4,000.00 Check 258754 - err - Refndbl Secrty
30 02-21-2002 4,000.00- Deposit Payment - Refundable Secrty
30 05-19-2004 4,000.00 Apply Deposit - Refundable Security
Deposit Interest Interest
Balance Balance Paid YTD
------- -------- --------
222 Capital Centre
222-TSAMIN L222-TEAMING UP(0) 6,723.17 .00 .00
L222-TEAMING UP(0) Lease Totals: 6,723.17* .00* .00*
222-TOTAL L222-TOTAL SPOR(0) 9,756.41 .00 .00
L222-TOTAL SPOR(0) Lease Totals: 9,756.41* .00* .00*
222 Property Totals: 219,951.04* .00* .00*
The Cordian Company Year-to-date Ledger - Accrual 8-23-2004 Page 1
System Date: 8-23-2004
System Time: 2:17 pm
Files Used: T:\THE CORDISH COMPANY\MASTER.GLM
T:\THE CORDISH COMPANY\CURRENT.GLT
Beginning
Date Jrn Ref 1 Ref 2 Transaction Desc Balance Debit Credit
0222 Cordish Cap Centre, LLC (1-01-2004 - 6-31-2004)
0222-10 Cordish Cap Centre, LLC
0222-10-0599-0000 Security Deposits
1-14-2004 GL L222-TEC Technicolor Salon & Spa 9,193.75
1-14-2004 GL L222-TEC Technicolor Salon & Spa 275.81
1-14-2004 GL L222-TEC Technicolor Salon & Spa 920.00
1-14-2004 GL L222-TEC Technicolor Salon & Spa 404.19
1-26-2004 GL DEP L222-SOU Soul Fixins 6,090.50-
Total 1-31-04 180,358.87-* 10,793.75* 6,098.50-*
3-19-2004 GL DEP L222-KOB Kobe Japanese Steak House 12,700.00-
3-19-2004 GL DEP L222-INF Infusions Tea Cafe 9,135.42-
Total 3-31-04 175,663.62-* .00* 21,035.42-*
4-01-2004 GL DEP L222-MON Xxxxx Xxxxx 4,996.00
Total 4-30-04 197,499.01-* .00* 4,996.00*
5-13-2004 GL DEP L222-CAR CarolinaKitchen/L London Enter 8,073.00-
5-19-2004 AP CAP05190 The Yankee Candle Co., Inc. 4,000.00
5-19-2004 GL XXXX X000-XXX Xxxxxx Xxxxxx Xx # 000 4,000.00-
5-19-2004 GL L222-YAN Yankee Candle Co # 244 4,000.00
Total 5-33-04 192,503.04-* 8,000.00* 12,073.00-*
6-24-2004 GL DEP L222-DYN Dynamix a/k/a Dynamics Inc 8,775.00-
6-24-2004 GL DEP L222-GLA GladysKnight&RonWinansChicken& 15,600.00-
6-30-2004 GL L222-INC Incongnito, LLC. 1,000.00
Total 6-30-04 196,576.04-* 1,000.00* 24,375.00-*
Total Account 0222-10-0599.000 - Security Deposits 180,358.87-* 19,793.75* 59,385.92-*
Total Division 0222-10 - Cordish Cap Centre, LLC 180,358.87-* 19,793.75* 59,385.92-*
Total Entity 0222 - Cordish Cap Centre, LLC 180,358.87-* 19,793.75* 59,385.92-*
GRAND TOTALS 180,358.87-* 19,793.75* 59,385.92-*
Ending
Date Jrn Ref 1 Ref 2 Transaction Desc Balance
0222 Cordish Cap Centre, LLC (1-01-2004 - 6-31-2004)
0222-10 Cordish Cap Centre, LLC
0222-10-0599-0000 Security Deposits
1-14-2004 GL L222-TEC Technicolor Salon & Spa
1-14-2004 GL L222-TEC Technicolor Salon & Spa
1-14-2004 GL L222-TEC Technicolor Salon & Spa
1-14-2004 GL L222-TEC Technicolor Salon & Spa
1-26-2004 GL DEP L222-SOU Soul Fixins
Total 1-31-04 175,663.62-*
3-19-2004 GL DEP L222-KOB Kobe Japanese Steak House
3-19-2004 GL DEP L222-INF Infusions Tea Cafe
Total 3-31-04 197,499.04-*
4-01-2004 GL DEP L222-MON Xxxxx Xxxxx
Total 4-30-04 192,503,04-*
5-13-2004 GL DEP L222-CAR CarolinaKitchen/L London Enter
5-19-2004 AP CAP05190 The Yankee Candle Co., Inc.
5-19-2004 GL MREF L222-YAN Yankee Candle Co # 244
5-19-2004 GL L222-YAN Yankee Candle Co # 244
Total 5-33-04 10?,576.04-*
6-24-2004 GL DEP L222-DYN Dynamix a/k/a Dynamics Inc
6-24-2004 GL DEP L222-GLA GladysKnight&RonWinansChicken&
6-30-2004 GL L222-INC Incongnito, LLC.
Total 6-30-04 215,951.04-*
Total Account 0222-10-0599.000 - Security Deposits 219,951.04-*
Total Division 0222-10 - Cordish Cap Centre, LLC 219,951.04-*
Total Entity 0222 - Cordish Cap Centre, LLC 219,951.04-*
GRAND TOTALS 219,951.04-*
BOULEVARD AT THE CAPITAL CENTRE
LIQUIDITY AMOUNT ESCROW AGREEMENT
THIS LIQUIDITY AMOUNT ESCROW AGREEMENT (this "AGREEMENT"), is
made and entered into as of the 8th day of September, 2004, by and among CC
INVESTORS, LLC, a Maryland limited liability company ("CORDISH AFFILIATE"),
CAPITAL CENTRE LLC, a Maryland limited liability company, ("SUBSIDIARY"), and
CHICAGO TITLE INSURANCE COMPANY, a New York corporation ("ESCROWEE").
W I T N E S S E T H:
WHEREAS, immediately prior to the execution of this Agreement, Centre
Group Limited Partnership, a Maryland limited partnership ("WITHDRAWING MEMBER")
and Capital Centre Holding LLC, a Delaware limited liability company, formerly
known as The Capital Centre Investors, LLC ("HOLDING COMPANY"), owned all of the
membership interests in Subsidiary, which owns and operates the Boulevard at the
Capital Centre (the "PROPERTY"), which is located near the intersection of Arena
Drive and X-00/000, Xxxxxxxx, Xxxxxx Xxxxxx'x Xxxxxx, Xxxxxxxx.
WHEREAS, Holding Company and Inland Capital HC, L.L.C., a Delaware
limited liability company ("INLAND AFFILIATE") have entered into a Contribution
Agreement, dated as of July 21, 2004 (the "CONTRIBUTION AGREEMENT"), pursuant to
which, among other things: (i) Holding Company was to be reorganized as a
Delaware limited liability company and its name was to be changed from The
Capital Centre Investors, LLC to Capital Centre Holding LLC prior to the CLOSING
(as that term is defined in the Contribution Agreement); (ii) Inland Affiliate
was to be admitted to Holding Company as a member at the Closing; and (iii) the
original members of Holding Company were to contribute their respective
membership interests in the Holding Company to Cordish Affiliate for membership
interests in Cordish Affiliate at the Closing. As a condition precedent to
Closing, Withdrawing Member was to withdraw from the Subsidiary in consideration
for a distribution to the Withdrawing Member of a portion of the CAPITAL
CONTRIBUTION (as that term is defined in the Contribution Agreement.)
WHEREAS, Closing under the Contribution Agreement has occurred on the
date hereof, and, in connection with the Closing, Holding Company has been so
reorganized and so renamed and, on the date hereof, Inland Affiliate has been so
admitted and has made the Capital Contribution, the original members of Holding
Company made such contribution of membership interests in Holding Company to
Cordish Affiliate for membership interests in Cordish Affiliate and the
Withdrawing Member have so withdrawn from the Subsidiary in consideration for
such distribution.
WHEREAS, pursuant to the terms of the Contribution Agreement, Inland
Affiliate has agreed, on behalf of Holding Company, to deposit, by wire transfer
of immediately available funds, a portion of the Capital Contribution with
Escrowee at the Closing, in an amount equal to the sum of TWELVE MILLION ONE
HUNDRED SEVENTY-TWO THOUSAND FOUR HUNDRED TEN AND 97/100 DOLLARS
($12,172,410.97) in order to provide for the LIQUIDITY AMOUNT (as defined in
Section 1 hereof).
WHEREAS, Escrowee is willing to accept the Liquidity Amount and hold and
disburse it in accordance with the terms and conditions set forth below.
NOW, THEREFORE, for and in consideration of the premises hereto, the
covenants and agreements hereinafter made, and for Ten Dollars ($10.00) in hand
paid to Escrowee, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:
1. DEPOSIT AND ACCEPTANCE OF LIQUIDITY AMOUNT. Inland, on behalf of
Holding Company, hereby deposits with Escrowee, and Escrowee hereby acknowledges
receipt of the sum of TWELVE MILLION ONE HUNDRED SEVENTY-TWO THOUSAND FOUR
HUNDRED TEN AND 97/100 DOLLARS ($12,172,410.97) as the "LIQUIDITY AMOUNT."
Escrowee hereby agrees to deposit the Liquidity Amount into an interest bearing
account with a bank, savings and loan institution, money market account, or
other depository reasonably satisfactory to Subsidiary, Cordish Affiliate and
Escrowee with interest accruing for the benefit of Holding Company, except as
otherwise provided herein. All interest earned on the Liquidity Amount shall be
deemed part of the Liquidity Amount. The federal taxpayer identification of
Holding Company is as follows: 00-0000000.
2. RETENTION AND DISBURSEMENT OF LIQUIDITY AMOUNT. Escrowee shall retain
the Liquidity Amount in the account, and shall cause the same to be disbursed
therefrom as follows:
(a) At any time after the first anniversary of the date
hereof, Cordish Affiliate shall have the right and power to send a written
notice to Escrowee, Withdrawing Member and Subsidiary instructing Escrowee to
disburse, by wire transfer pursuant to Section 4 hereof: (i) to the Operations
Reserve, two percent (2%) of the Phase 1 Liquidity Amount and forty percent
(40%) of the remaining balance of Phase 1 Liquidity Amount after such two
percent (2%) payment; and (ii) to pay the balance of the Phase 1 Liquidity
Amount to the Withdrawing Member. Unless Subsidiary provides Cordish Affiliate,
Withdrawing Member and Escrowee with a written objection in accordance with the
provisions of Section 2(c) hereof to such distribution within ten (10) Business
Days of the effective date of such notice from Cordish Affiliate to Escrowee,
Escrowee shall comply with such instructions of Cordish Affiliate on the
fifteenth (15th) Business Day following the effective date of such notice from
Cordish Affiliate to Escrowee. For the purposes of this Section 2.1(a), the
term "PHASE 1 LIQUIDITY AMOUNT" shall mean the greater of (A) the excess, if
any, of (i) the then outstanding
2
balance of the Liquidity Amount (including all of the interest that accrued on
the Liquidity Amount and decreased to the extent required under the terms of
Section 2.1(c) hereof) over (ii) fifty percent (50%) of the initial amount of
the Liquidity Amount as of the date hereof, and (B) zero.
(b) At any time after the second anniversary of the date
hereof, Cordish Affiliate shall have the right and power to send a written
notice to Escrowee, Withdrawing Member and Subsidiary instructing Escrowee to
disburse, by wire transfer pursuant to Section 4 hereof: (i) two percent (2%) of
the then outstanding balance of the Liquidity Amount (including all of the
interest that accrued on the Liquidity Amount) to the Operations Reserve; (ii)
forty percent (40%) of the then outstanding balance of the Liquidity Amount
(including all of the interest that accrued on the Liquidity Amount), after
disbursement of such two percent (2%) amount, to the Operations Reserve; and
(iii) to disburse the then outstanding balance of the Liquidity Amount
(including all of the interest that accrued on the Liquidity Amount), after
disbursement of (i) and (ii) above, to the Withdrawing Member. Unless Subsidiary
provides Cordish Affiliate, Withdrawing Member and Escrowee with a written
objection in accordance with the provisions of Section 2 (c) hereof to such
distribution within ten (10) Business Days of the effective date of such notice
from Cordish Affiliate to Escrowee, Escrowee shall comply with such instructions
of Cordish Affiliate on the fifteenth (15th) Business Day following the
effective date of such notice from Cordish Affiliate to Escrowee.
(c) If, at any time prior to the date that is ten (10)
Business Days after the date that Cordish Affiliate provides Escrowee,
Withdrawing Member and Subsidiary with the written instructions to the Escrowee
described in Sections 2 (a) or (b) hereof a timely and BONA FIDE demand by
Inland Affiliate for indemnification in connection with "DAMAGES" (as that term
is defined in that certain Indemnification and Guaranty Agreement, of even date
herewith, (the "INDEMNIFICATION AGREEMENT") among, Cordish Affiliate, Xxxxx X.
Xxxxxxx, Inland Affiliate and Inland Western Retail Real Estate Trust, Inc.)
suffered by any of the INLAND INDEMNIFIED PARTIES (as that term is defined in
the Indemnification Agreement) has been made on Cordish Affiliate under the
provisions of Sections 3.1, 3.2, 3.3, 3.4, 3.8 and/or 7 of the Indemnification
Agreement (the "LIQUIDITY AMOUNT DAMAGES"), and such demand has not been paid or
otherwise resolved, then Subsidiary shall have the right and power to provide
Escrowee, Withdrawing Member and Cordish Affiliate with a notice hereunder
instructing Escrowee not to honor such written instructions of Cordish Affiliate
and stating the reason or reasons for Subsidiary's instructions and containing a
BONA FIDE estimate of the aggregate dollar amount of such claim. If Escrowee
receives such notice from Subsidiary within ten (10) Business Days of the
effective date of the notice from Cordish Affiliate described above Escrowee
shall comply with said instructions of Cordish Affiliate and distribute same
within fifteen (15) Business Days of the request of Cordish Affiliate, but shall
treat the size of the Liquidity Amount, for purposes of determining the amount
of the requested distributions, as equaling the actual Liquidity Amount LESS
Subsidiary's BONA FIDE estimate of the aggregate dollar amount its claim, shall
retain the balance of the Liquidity Amount in accordance with the provisions of
this Agreement and shall immediately provide Cordish
3
Affiliate and Withdrawing Member with a copy of such notice from Subsidiary and
the amount.
(d) Notwithstanding anything to the contrary contained in
this Section 2.3, Cordish Affiliate shall have the right to utilize the
Liquidity Amount to pay Liquidity Amount Damages. If at any time Cordish
Affiliate is obligated to pay Liquidity Amount Damages, Cordish Affiliate may
direct the Escrowee by written notice to Escrowee, Withdrawing Member and
Subsidiary, to pay such Liquidity Amount Damages from the Liquidity Amount.
Unless Subsidiary provides Cordish Affiliate, Withdrawing Member and Escrowee
with a written objection to such payment, which objection shall state the reason
or reasons for such objection, within ten (10) Business Days of the effective
date of the notice from Cordish Affiliate to Escrowee, Escrowee shall comply
with such instructions of Cordish Affiliate or the fifteenth (15th) Business Day
following the effective date of such notice from Cordish Affiliate to Escrowee.
However, if Escrowee receives such notice from Subsidiary within ten (10) days
of the effective date of the notice from Cordish Affiliate described above,
Escrowee shall not comply with said instructions of Cordish Affiliate and shall
immediately provide Cordish Affiliate and Withdrawing Member with a copy of such
notice from Subsidiary.
(e) At the joint request and instructions of Cordish
Affiliate, Withdrawing Member and Subsidiary, Escrowee shall distribute the
Liquidity Amount in accordance with such instructions, accept, in lieu thereof
alternative collateral, such as a letter of credit or a portfolio of pledged
bonds, and enter into an amendment to this Agreement that governs the
disbursement of such alternative collateral, which amendment shall be reasonably
acceptable to Cordish Affiliate, Withdrawing Member, Subsidiary and Escrowee.
(f) From time to time, Subsidiary may give notice (a "DEMAND
NOTICE") to Cordish Affiliate, Withdrawing Member and Escrowee specifying in
reasonable detail the nature and dollar amount of any claim against Cordish
Affiliate for Liquidity Amount Damages pursuant to Sections 3.1, 3.2, 3.3, 3.4
and/or 7 of the Indemnification Agreement accompanied by documentary evidence
that such claim has been reduced to a final, non-appealable judgment by a court
of competent jurisdiction (or a final, non-appealable arbitrators' finding) and
that such claim has been unsatisfied for a period in excess of forty-five (45)
days (a "CLAIM"). Among other things, such documentary evidence shall include,
but shall be not be limited to a true copy of the order of a court of competent
jurisdiction (or final arbitrators' finding) and an opinion by independent
counsel for Subsidiary to the effect that the order (or arbitrators finding) is
final, non-appealable and unsatisfied for a period in excess of forty-five (45)
days from the date of finality of the judgment or finding.
(g) If Cordish Affiliate gives notice to Subsidiary,
Withdrawing Member and Escrowee disputing any of the material factual statements
with respect to a Claim as set forth in a Demand Notice (a "COUNTER NOTICE")
within thirty (30) days following receipt by Escrowee of the Demand Notice
regarding such Claim, such Claim shall be resolved as provided in Section 3
hereof. Upon receipt of a Claim Notice, Escrowee shall
4
immediately provide Subsidiary and Withdrawing Member with a copy of the Counter
Notice.
(h) If a Counter Notice is not received by Escrowee within
such thirty (30) day period, then the dollar amount of the Liquidity Amount
Damages set forth in the Demand Notice shall be deemed established for purposes
of this Agreement and, during the period that begins on the fortieth (40th) day
following the date Escrowee received the Demand Notice and ends on at the
forty-fifth (45th) day following the date Escrowee received the Demand Notice,
Escrowee shall pay to Subsidiary the dollar amount claimed in the Notice from
(and only to the extent of) the Liquidity Amount and shall promptly notify
Cordish Affiliate and Withdrawing Member of such payment.
(i) If a Counter Notice is given with respect to a Claim,
Escrowee shall make payment with respect thereto only in accordance with: (A)
joint written instructions of Subsidiary, Withdrawing Member and Cordish
Affiliate; or (B) the dispute resolution procedures set forth in Section 3
hereof.
3. DISPUTE - ESCROWEE RIGHTS. In the event either party objects to
the disbursement of all or any part of the Liquidity Amount as provided above,
Escrowee shall notify Subsidiary, Cordish Affiliate and Withdrawing Member of
such dispute and shall hold the Liquidity Amount in escrow pending resolution of
such objection by mutual agreement of the parties or by arbitration of same
pursuant to the provisions of Section 6 hereof. After the disbursement of the
full amount of the Liquidity Amount under the terms of this Agreement,
Escrowee's duties and obligations hereunder shall cease. In the event of any
dispute regarding disbursement of the Liquidity Amount, the party ultimately
receiving the Liquidity Amount after resolution of such dispute shall be
entitled to receive from the other party all the prevailing party's costs and
expenses incurred in connection with the resolution of such dispute including,
without limitation, all arbitration, court costs and reasonable attorney's fees.
4. WIRE INSTRUCTIONS. Any part of the Liquidity Amount to be
disbursed into the Operations Reserve shall be disbursed by wire transfer of
immediately available funds in accordance with the wire instructions attached
hereto as EXHIBIT "A." Any part of the Liquidity Amount to be disbursed into the
Withdrawing Member shall be disbursed by wire transfer of immediately available
funds in accordance with the wire instructions attached hereto as EXHIBIT "B."
Any part of the Liquidity Amount to be disbursed to Subsidiary shall be
disbursed by wire transfer of immediately available funds in accordance with the
wire instructions attached hereto as EXHIBIT "C." To the extent that any of the
attached wiring instructions require Escrowee to notify a person or party by
telephone or fax of such wire, the amount of such wire, the date and time of the
sending of such wire and the Fed Reference Number for such wire, Escrowee shall
comply with such instructions. Cordish Affiliate shall have the right, from time
to time, to change the wire instructions applicable for disbursements into the
Operations Reserve by Notice to the other parties hereto. Withdrawing Member
shall have the right, from time to time, to change the wire instructions
applicable for disbursements to Withdrawing Member by Notice to the other
parties hereto. Subsidiary shall have the right, from time to time, to change
the wire instructions applicable for disbursements to Subsidiary by Notice to
the
5
other parties hereto. Any such change of wire instructions by a party hereto or
Withdrawing Member shall become effective five (5) Business Days after the
effective date of such Notice to Escrowee.
5. REPRESENTATIONS AND WARRANTIES.
5.1. Cordish Affiliate hereby represents and warrants to
Subsidiary and Escrowee as follows:
(a) Cordish Affiliate is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Maryland. Cordish Affiliate has all requisite power and authority to
carry on the businesses in which it is engaged and to own and use the properties
owned and used by it.
(b) Cordish Affiliate has all requisite power and
authority to execute and deliver this Agreement, and to perform its obligations
hereunder and thereunder. The execution and delivery by Cordish Affiliate of
this Agreement and the consummation by Cordish Affiliate of the transactions
contemplated hereby have been duly and validly authorized by all necessary
action on the part of Cordish Affiliate. This Agreement has been duly and
validly executed and delivered by Cordish Affiliate and constitutes a valid and
binding obligation of Cordish Affiliate, enforceable against it in accordance
with its terms.
(c) Neither the execution and delivery by Cordish
Affiliate of this Agreement nor the consummation by Cordish Affiliate of the
transactions contemplated hereby and thereby, will: (i) conflict with or
violate any provision of the organizational documents of Cordish Affiliate, (ii)
require on the part of Cordish Affiliate any filing with, or permit,
authorization, consent or approval of, any third party, (iii) conflict with,
result in breach of, constitute (with or without due notice or lapse of time or
both) a default under, result in the acceleration of obligations under, create
in any party any right to terminate, modify or cancel, or require any notice,
consent or waiver under, any contract or instrument to which Cordish Affiliate
is a party or by which it is bound, or to which its assets are subject, or (iv)
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Cordish Affiliate or any of its properties or assets.
5.2. Subsidiary hereby represents and warrants to Cordish
Affiliate and Escrowee as follows:
(a) Subsidiary is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Maryland and is duly qualified to conduct business and is in corporate and tax
good standing under the laws of each jurisdiction in which the nature of its
businesses or the ownership or leasing of its properties requires such
qualification. Subsidiary has all requisite power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.
(b) Subsidiary has all requisite power and authority
to execute and deliver this Agreement, and to perform its obligations hereunder
and thereunder. The
6
execution and delivery by Subsidiary of this Agreement and the consummation by
Subsidiary of the transactions contemplated hereby have been duly and validly
authorized by all necessary action on the part of Subsidiary. This Agreement has
been duly and validly executed and delivered by Subsidiary and constitutes a
valid and binding obligation of Subsidiary, enforceable against it in accordance
with its terms.
(c) Neither the execution and delivery by Subsidiary
of this Agreement nor the consummation by Subsidiary of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Subsidiary, (ii) require on the
part of Subsidiary any filing with, or permit, authorization, consent or
approval of, any third party, (iii) conflict with, result in breach of,
constitute (with or without due notice or lapse of time or both) a default
under, result in the acceleration of obligations under, create in any party any
right to terminate, modify or cancel, or require any notice, consent or waiver
under, any contract or instrument to which Subsidiary is a party or by which it
is bound or to which its assets are subject, or (iv) violate any order, writ,
injunction, decree, statute, rule or regulation applicable to Subsidiary or any
of its properties or assets.
5.3. Escrowee hereby represents and warrants to Cordish
Affiliate and Subsidiary as follows:
(a) Escrowee is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York
and is duly qualified to conduct business and is in corporate and tax good
standing under the laws of each jurisdiction in which the nature of its
businesses requires such qualification. Escrowee has all requisite power and
authority to carry on the businesses in which it is engaged and to own and use
the properties owned and used by it.
(b) Escrowee has all requisite power and authority
to execute and deliver this Agreement, and to perform its obligations hereunder
and thereunder. The execution and delivery by Escrowee of this Agreement and the
consummation by Escrowee of the transactions contemplated hereby have been duly
and validly authorized by all necessary action on the part of Escrowee. This
Agreement has been duly and validly executed and delivered by Escrowee and
constitutes a valid and binding obligation of Escrowee, enforceable against it
in accordance with its terms.
(c) Neither the execution and delivery by Escrowee
of this Agreement nor the consummation by Escrowee of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Escrowee, (ii) require on the part
of Escrowee any filing with, or permit, authorization, consent or approval of,
any third party, (iii) conflict with, result in breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the
acceleration of obligations under, create in any party any right to terminate,
modify or cancel, or require any notice, consent or waiver under, any contract
or instrument to which Escrowee is a party or by which it is bound or to which
its assets are subject, or (iv) violate any order, writ, injunction, decree,
statute, rule or regulation applicable to Escrowee or any of its properties or
assets.
7
6. ARBITRATION. In the event that any dispute shall arise between
or among the parties hereto with respect to the application of any of the
provisions of this Agreement, and such dispute is not resolved to the
satisfaction of the parties hereto within twenty (20) days after the a party
hereto shall notify the other parties hereto in writing of its desire to
arbitrate the dispute (the "ARBITRATION NOTICE"), then the dispute shall be
resolved in accordance with the Commercial Arbitration Rules of the American
Arbitration Association then pertaining. The decision of the arbitrator shall be
binding, final and conclusive on the parties. Unless the parties otherwise
agree, such arbitration proceedings shall be conducted in Baltimore, Maryland.
The arbitrator shall be selected by the American Arbitration Association in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The fees of the arbitrator and the expenses incident to the
proceedings shall be borne by the losing party. The decision of the arbitrator
shall be rendered within thirty (30) days after the conclusion of the
arbitration. A judgment of a court of competent jurisdiction may be entered upon
the award of the arbitrator in accordance with the rules and statutes applicable
thereto then obtaining. The parties hereto agree that the arbitrator may order
and compel specific performance.
7. VENUE. Any lawsuit, action, or proceeding arising under this
Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.
8. COOPERATION/CONFLICT WITH CONTRIBUTION AGREEMENT/. Subsidiary
shall reasonably cooperate with the efforts of Cordish Affiliate to satisfy the
conditions of the disbursement of the Liquidity Amount and shall not
unreasonably withhold any approval or issuance of any distribution direction
requested by Cordish Affiliate hereunder. In the event of a conflict between the
provisions of the Contribution Agreement and the provisions of this Agreement,
the provisions of this Agreement shall control. To the extent Subsidiary is
obligated to pay any cost and expense in connection with this Agreement, such
cost and expense shall not be paid or reimbursed from the Operations Reserve.
9. COSTS OF ADMINISTRATION AND SUCCESSORS AND ASSIGNS. The costs of
administration of this Agreement by Escrowee shall be shared equally by Cordish
Affiliate and Subsidiary. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, principals, successors
and assigns and shall be governed and construed in accordance with the laws of
the State of Illinois.
10. NOTICES. All notices, demands, consents, approvals, requests or
other communications which any of the parties to this Agreement or Withdrawing
Member may desire or be required to give hereunder (collectively, "NOTICES")
shall be in writing and shall be given by personal delivery, nationally
recognized next day delivery service (delivery charges prepaid, return receipt
requested) or United States registered or certified mail (postage prepaid,
return receipt requested) addressed as hereinafter provided.
8
Except as otherwise specified herein, the effective date of any Notice (I.E.,
the date a party shall be deemed to have received such Notice), shall be the
earliest to occur of: (a) if by personal delivery, the date of receipt, or
attempted delivery, if such communication is refused; (b) if by nationally
recognized next Business Day delivery service (as aforesaid), the next Business
Day after delivery to such service; and (c) if sent by mail (as aforesaid), five
(5) Business Days after posting. Until further notice, notices and other
communications under this Agreement shall be addressed to the parties and
Withdrawing Member listed below as follows:
If to Cordish Affiliate: CC Investors LLC
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attn: Xxxxx X. Xxxxxxx
with a copy to: CC Investors LLC
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attn: General Counsel
If to Subsidiary: Capital Centre LLC
c/o Inland Western Retail Real Estate Trust, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
with a copy to: Xxxxxxx X. Xxxxxxxxx, Esq.
0000 Xxxxxxxxxxx Xxxx
0xx Xxxxx
Xxx Xxxxx, Xxxxxxxx 00000
If to Escrowee: Chicago Title Insurance Company
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxx
If to Withdrawing Member: Centre Group Limited Partnership
c/o Washington Sports and Entertainment
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
9
with a copy to: Centre Group Limited Partnership
c/o c/o Washington Sports and Entertainment
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
with a copy to: Xxxxxxx X. Brand, Esquire
Arent Fox PLLC
0000 Xxxxxxxxxxx Xxxxxx, XX
Xxxxxxxxxx, XX 00000-0000
Any party hereto or Withdrawing Member may designate another addressee (and/or
change its address) for Notices hereunder by a Notice given pursuant to this
Section to each of the other parties hereto and Withdrawing Member.
WHEN DELIVERING A NOTICE PURSUANT TO THIS AGREEMENT, EACH PARTY SHALL
CONTEMPORANEOUSLY DELIVER A COPY OF SUCH NOTICE TO WITHDRAWING MEMBER AT THE
NOTICE ADDRESSES OF WITHDRAWING MEMBER CONTAINED IN THIS SECTION 10 BY THE SAME
MANNER OF DELIVERY OF SUCH NOTICE.
11. HEADINGS. The captions and section headings contained in this
Agreement are for convenience of reference only and shall not be considered in
any interpretation of the provisions of this Agreement.
12. REPORTING. Escrowee agrees to deliver to Subsidiary and Cordish
Affiliate, on a monthly basis, a copy of the bank statement of account of the
Liquidity Amount. Such monthly statements shall be delivered to Cordish
Affiliate at its notice address and to Subsidiary: Inland Western Retail Real
Estate Trust, Inc., 0000 Xxxxxxxxxxx Xxxx, Xxx Xxxxx Xxxxxxxx 00000, attention
Xxxxxx Xxxxxx, CFO (telephone: 000-000-0000; facsimile: 630-218-4900).
13. AMENDMENTS/THIRD PARTY BENEFICIARY. EXCEPT AS OTHERWISE HEREIN
PROVIDED, ANY AND ALL AMENDMENTS, MODIFICATIONS, ADDITIONS OR DELETIONS TO THIS
AGREEMENT SHALL BE NULL AND VOID UNLESS APPROVED IN ADVANCE BY THE PARTIES
HERETO IN WRITING. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT CORDISH
AFFILIATE MAY NOT ENTER INTO OR CONSENT TO ANY AMENDMENTS, MODIFICATION,
ADDITIONS OR DELETIONS TO THIS AGREEMENT UNLESS IT OBTAINS THE PRIOR WRITTEN
CONSENT THERETO FROM WITHDRAWING MEMBER. WITHDRAWING MEMBER IS A THIRD PARTY
BENEFICIARY OF THIS AGREEMENT. In the event that any party hereto fails to
comply with any of the terms and provisions of this Agreement, Withdrawing
Member shall have the right to initiate and prosecute an arbitration proceeding
against such party to enforce the provisions of this Agreement (including court
actions to enforce or challenge any findings) solely to the extent that such
provisions directly effect the economic rights and interests of Withdrawing
Member. The
10
provisions of Sections 6, 7, 15, 17 and 18 shall apply to such proceeding as if
Withdrawing Member was a party to this Agreement.
14. INTEGRATION. With the exception of the Contribution Agreement
and the Indemnity Agreement and the ESCROW AGREEMENT, the LEASING AGREEMENT and
the OPERATING AGREEMENT (as those terms are defined in the Contribution
Agreement) and any and all agreements executed in connection with any such
agreement, this Agreement encompasses, replaces, integrates and supercedes any
and all other negotiations, discussions, offers, promises, arrangements and
agreements between the parties hereto relating to the Property.
15. INVALID PROVISIONS. This Agreement shall be construed, as to
execution, interpretation and enforcement, in accordance with the laws of the
State of Maryland. If any term, condition or provision of this Agreement shall
be declared invalid or unenforceable, the remainder of this Agreement shall not
be affected thereby and shall remain in full force and effect and shall be valid
and enforceable to the fullest extent permitted by law.
16. ATTRIBUTION OF DRAFTING. This Agreement shall be deemed to have
been drafted jointly by the parties and any uncertainty or ambiguity shall not
be construed for or against either party as an attribution of drafting of either
party.
17. ATTORNEY FEES. Subject to the provisions of Section 6 hereof, if
either Subsidiary or Cordish Affiliate brings suit or other legal proceedings to
enforce the provisions of this Agreement against the other, then the party
prevailing in such suit or proceeding shall be reimbursed by the other for all
reasonable attorneys' fees and litigation costs and expenses incurred by the
prevailing party in connection with such suit or proceeding.
18. WAIVER OF JURY TRIAL. Subject to the provisions of Section 6
hereof, Subsidiary and Cordish Affiliate do hereby waive trial by jury in any
action, suit, proceeding, and/or counterclaim brought by either of the parties
hereto against the other on any matters whatsoever arising out of or in any way
connected with this Agreement any claim of injury or damage, and/or statutory
remedy.
19. GOOD FAITH AND FAIR DEALING. The parties covenant and agree each
to the other that its conduct under this Agreement, and the interpretation and
enforcement of the provisions hereof, shall be characterized by good faith and
fair dealings so that the objectives of each party as set forth in this
Agreement may be achieved.
20. COUNTERPARTS. This Agreement may be executed in counterparts and
shall constitute an agreement binding on all parties notwithstanding that all
parties are not signatories of the original or the same counterpart.
Furthermore, the signatures from one counterpart may be attached to another to
constitute a fully executed original. The Agreement may be executed by
facsimile.
11
21. TIME OF THE ESSENCE. Time is of the essence with regard to the
parties obligations under this Agreement.
22. SURVIVAL PERIOD IN CONTRIBUTION AGREEMENT. Section 2 of the
Indemnification Agreement provides that the representations, warranties,
covenants or agreements made in the Contribution Agreement shall survive the
Closing Date for the periods provided therein. Nothing in this Agreement shall
be interpreted as modifying the survival period of such representations,
warranties, covenants or agreements.
23. BUSINESS DAY. The term "BUSINESS DAY" means any day other than
Saturday, Sunday or any other day on which commercial banks or savings and loan
associations are required or authorized by law to close in New York City.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be signed and delivered, under seal, as of the day and year first above
written.
SIGNATURES ON NEXT PAGE
12
WITNESS/ATTEST: CORDISH AFFILIATE:
CC INVESTORS LLC,
a Maryland limited liability company
/s/ Xxxxxxxxx [ILLEGIBLE] By: /s/ Xxxxxxx X. Xxxxxx (SEAL)
------------------------- ------------------------
Xxxxxxx X. Xxxxxx
Authorized Person
SUBSIDIARY:
CAPITAL CENTRE LLC, a Maryland limited
liability company
/s/ Xxxxxxxxx [ILLEGIBLE] By: /s/ Xxxxxxx Xxxxxx (SEAL)
------------------------- ------------------------
Name: Xxxxxxx Xxxxxx
------------------------
Title: Asst. Secretary
------------------------
ESCROWEE:
CHICAGO TITLE INSURANCE COMPANY, a
New York corporation
/s/ Xxxxxxxxx [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
------------------------- ---------------------------
Title: ASST VICE PRESIDENT
------------------------
Name: Xxxxx X. [ILLEGIBLE]
------------------------
13
EXHIBIT "A"
WIRE INSTRUCTIONS FOR DISBURSEMENT INTO THE OPERATIONS RESERVE
(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)
EXHIBIT "B"
WIRE INSTRUCTIONS FOR DISBURSEMENTS TO WITHDRAWING MEMBER
(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)
EXHIBIT "C"
WIRE INSTRUCTIONS FOR DISBURSEMENTS TO SUBSIDIARY
(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)
BOULEVARD AT THE CAPITAL CENTRE
ESCROW AGREEMENT
THIS ESCROW AGREEMENT (this "AGREEMENT"), is made and entered into as of
the 8th, day of September, 2004, by and among CC INVESTORS, LLC, a Maryland
limited liability company ("CORDISH AFFILIATE"), CAPITAL CENTRE LLC, a Maryland
limited liability company, ("SUBSIDIARY"), and CHICAGO TITLE INSURANCE COMPANY,
a New York corporation ("ESCROWEE").
W I T N E S S E T H:
WHEREAS, immediately prior to the execution of this Agreement, Centre
Group Limited Partnership, a Maryland limited partnership ("WITHDRAWING MEMBER")
and Capital Centre Holding LLC, a Delaware limited liability company, formerly
known as The Capital Centre Investors, LLC ("HOLDING COMPANY"), owned all of the
membership interests in Subsidiary, which owns and operates the Boulevard at the
Capital Centre (the "PROPERTY"), which is located near the intersection of Arena
Drive and X-00/000, Xxxxxxxx, Xxxxxx Xxxxxx'x Xxxxxx, Xxxxxxxx.
WHEREAS, Holding Company and Inland Capital HC, L.L.C., a Delaware
limited liability company ("INLAND AFFILIATE") have entered into a Contribution
Agreement, dated as of July 21, 2004 (the "CONTRIBUTION AGREEMENT"), pursuant to
which, among other things: (i) Holding Company was to be reorganized as a
Delaware limited liability company and its name was to be changed from The
Capital Centre Investors, LLC to Capital Centre Holding LLC prior to the CLOSING
(as that term is defined in the Contribution Agreement); (ii) Inland Affiliate
was to be admitted to Holding Company as a member at the Closing; and (iii) the
original members of Holding Company were to contribute their respective
membership interests in the Holding Company to Cordish Affiliate for membership
interests in Cordish Affiliate at the Closing. As a condition precedent to
Closing, Withdrawing Member was to withdraw from the Subsidiary in consideration
for a distribution to the Withdrawing Member of a portion of the CAPITAL
CONTRIBUTION (as that term is defined in the Contribution Agreement.)
WHEREAS, Closing under the Contribution Agreement has occurred on the
date hereof, and, in connection with the Closing, Holding Company has been so
reorganized and so renamed and, on the date hereof, Inland Affiliate has been so
admitted and has made the Capital Contribution, the original members of Holding
Company made such contribution of membership interests in Holding Company to
Cordish Affiliate for membership interests in Cordish Affiliate and the
Withdrawing Member have so withdrawn from the Subsidiary in consideration for
such distribution.
WHEREAS, pursuant to the terms of the Contribution Agreement, Inland
Affiliate has agreed, on behalf of Holding Company, to deposit, by wire transfer
of immediately available funds, a portion of the Capital Contribution with
Escrowee at the
Closing, in an amount equal to the sum of SEVENTEEN MILLION NINE HUNDRED
THIRTEEN THOUSAND FOUR HUNDRED FORTY-EIGHT AND 09/100 DOLLARS ($17,913,448.09)
(the "ESCROW AMOUNT") in order to provide for: (a) the LEASING DEPOSIT (as
defined in Section 2.1 (a) hereof); (b) the THEATER DEPOSIT (as defined in
Section 2.1B (a) hereof); and (c) the TI/LC DEPOSIT (as defined in Section 2.2
(a) hereof).
WHEREAS, Escrowee is willing to accept the Escrow Amount and hold and
disburse same in accordance with the terms and conditions set forth below.
NOW, THEREFORE, for and in consideration of the premises hereto, the
covenants and agreements hereinafter made, and for Ten Dollars ($10.00) in hand
paid to Escrowee, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:
1. DEPOSIT AND ACCEPTANCE OF ESCROW AMOUNT. Inland, on behalf of
Holding Company, hereby deposits with Escrowee, and Escrowee hereby acknowledges
receipt of the sum of SEVENTEEN MILLION NINE HUNDRED THIRTEEN THOUSAND FOUR
HUNDRED FORTY-EIGHT AND 09/100 DOLLARS ($17,913,448.09) as the Escrow Amount.
Escrowee hereby agrees to deposit the Escrow Amount into an interest bearing
account with a bank, savings and loan institution, money market account, or
other depository reasonably satisfactory to Subsidiary, Cordish Affiliate and
Escrowee with interest accruing for the benefit of Holding Company, except as
otherwise provided herein. All interest earned on the Escrow Amount shall be
deemed part of the Escrow Amount. The federal taxpayer identification of Holding
Company is as follows: 00-0000000.
2. RETENTION AND DISBURSEMENT OF ESCROW AMOUNT. Escrowee shall
retain the Escrow Amount in the account, and shall cause the same to be
disbursed therefrom as follows:
2.1. LEASING DEPOSIT.
(a) That portion of the Escrow Amount identified as
the sum of NINE HUNDRED NINETY THOUSAND FOUR HUNDRED THIRTY-NINE AND 00/100
DOLLARS ($990,439.00) is hereby referred to as the "LEASING DEPOSIT." The
Leasing Deposit equals twenty-four (24) months of PRO FORMA base rent and
reimbursable expenses (I.E., pro rata expenses such as a tenant's pro rata share
of common area maintenance expenses and real estate taxes) for each tenant space
at the Property not leased to tenants as of the CLOSING DATE (as defined in the
Contribution Agreement) (the "PROJECT VACANT SPACE") and that are not part of
the EARNOUT SPACE or the THEATER SPACE (as those terms are defined in the
Contribution Agreement) or the LEASED BUT NOT OPEN SPACE (as that term is
defined in Section 2.1A hereof). Each Project Vacant Space, the size of such
space, the TI and LC (as those terms are defined in Section 2.2 hereof)
allocated to such space, the Leasing Deposit allocated to such space and the
average (over a five year period) monthly PRO FORMA base rent and reimbursable
expenses
2
attributable to such space (the "MONTHLY PRO FORMA BASE RENT AND EXPENSES") is
scheduled on EXHIBIT "A" attached hereto.
(b) On the fifth (5th) Business Days after the
Closing Date, the Escrow Agent shall disburse from the Leasing Deposit, by wire
transfer pursuant to Section 4 hereof, to the Subsidiary for each Project Vacant
Space a prorated Monthly Pro Forma Base Rent and Expenses attributable to each
Project Vacant Space from the Closing Date through the end of the month in which
Closing occurs. Thereafter, on the first day of each calendar month during the
twenty-three (23) consecutive calendar months that follow the Closing Date,
Escrowee shall disburse, by wire transfer pursuant to Section 4 hereof, from the
Leasing Deposit to Subsidiary the Monthly Pro Forma Base Rent and Expenses
(prorated for any partial months), (the "LEASING DEPOSIT MONTHLY PAYMENT") for
each Project Vacant Space.
(c) The Leasing Deposit Monthly Payment for a
Project Vacant Space shall be made by Escrowee to Subsidiary until such time as
the following described requirements are met for such Project Vacant Space: (i)
the Project Vacant Space is leased; (ii) the tenant or tenants for the Project
Vacant Space shall have accepted its respective premises; (iii) the tenant or
tenants for the Project Vacant Space shall have opened for business at the
Property to the public; (iv) the tenant or tenants for the Project Vacant Space
shall have commenced full payment of rent and other charges under any Project
Vacant Space lease; (v) Cordish Affiliate shall have provided Subsidiary with a
certificate of Cordish Affiliate certifying that all leasing commissions and
tenant improvement allowances associated with the Project Vacant Space have been
fully paid; (vi) Cordish Affiliate shall have delivered to Subsidiary a
temporary or permanent certificate of occupancy for each separately leased
portion of the Project Vacant Space; and (vii) the tenant of the tenants for the
Project Vacant Space (or Cordish Affiliate) has executed and delivered an
estoppel certificate to Subsidiary that is reasonably acceptable to Subsidiary
(which acceptance by Subsidiary shall be given in the event that such estoppel
certificate is generally consistent in form and substance with estoppel
certificates accepted by Subsidiary in connection with other leases at the
Property prior to or on the Closing Date (as that term is defined in the
Contribution Agreement) or is on the form of such tenant)(collectively, the
"TENANT CONDITIONS"). Subsidiary and/or Cordish Affiliate shall promptly notify
the other and Escrowee of the date any tenant satisfies the Tenant Conditions.
(d) As each Project Vacant Space is leased during
the two (2) year period following the Closing Date, with the Tenant Conditions
for each portion of the Project Vacant Space having then been satisfied for such
leased portion of the Project Vacant Space, the balance of the Leasing Deposit
attributable to each such leased portion of the Project Vacant Space shall, upon
the joint direction of Cordish Affiliate and Subsidiary, be disbursed by the
Escrowee, by wire transfer pursuant to Section 4 hereof, within five (5)
Business Days of receipt of such joint direction, as follows: two percent (2%)
of such amount (the "TRANSACTION AMOUNT") shall be disbursed by wire transfer
pursuant to Section 4 hereof, directly to the OPERATIONS RESERVE (as that terms
is defined in the Contribution Agreement), forty percent. (40%) of the remaining
balance of such amount (after deduction of the Transaction Amount) shall be
disbursed, by wire transfer
3
pursuant to Section 4 hereof, directly to the Operations Reserve and the
remaining balance of such amount (after deduction of the Transaction Amount and
the deposit into the Operations Reserve provided for in this Subsection (d))
shall be disbursed, by wire transfer pursuant to Section 4 hereof, directly to
Withdrawing Member. Notwithstanding the above, in the event that the actual
average monthly base rent and projected reimbursable expenses for a Project
Vacant Space varies from the Monthly Pro Forma Base Rent and Expenses for such
Project Vacant Space, Subsidiary and Cordish Affiliate shall equitably adjust
the amount of the balance of the Leasing Deposit to be so disbursed, such
equitable adjustment shall be contained in such joint direction, and Escrowee
shall comply with such joint direction. For example, if the actual average
monthly base rent and projected reimbursable expenses for a Project Vacant Space
is twenty-five percent (25%) greater than the Monthly Pro Forma Base Rent and
Expenses for such Project Vacant Space, the amount of the Leasing Deposit
released for such Project Vacant Space shall equal 125% of the Monthly Pro Forma
Base Rent and Expenses for such Project Vacant Space. Within ten (10) Business
Days of Cordish Affiliate's request for a joint direction, to the extent Cordish
Affiliate is entitled to a joint direction. Subsidiary shall cooperate with
Cordish Affiliate and issue the joint direction.
(e) The Escrowee shall disburse the balance of the
Leasing Deposit, if any, remaining on the Second (2nd) anniversary date of the
Closing Date (including all interest that has accrued on the Leasing Deposit) as
follows: two percent (2%) of such amount (also a "TRANSACTION AMOUNT") shall be
disbursed by wire transfer pursuant to Section 4 hereof, directly to the
Operations Reserve; then forty percent (40%) of the remaining balance of such
amount (after deduction of the Transaction Amount) shall be disbursed, by wire
transfer pursuant to Section 4 hereof, directly into the Operations Reserve and
the remaining balance of such amount (after deduction of the Transaction Amount
and the deposit into the Operations Reserve provided for in this Subsection (e))
shall be disbursed, by wire transfer pursuant to Section 4 hereof, directly to
the Withdrawing Member.
(f) Notwithstanding anything to the contrary
contained in this Section 2.1, on the date that a tenant of a Project Vacant
Space has commenced payment of rent prior to the satisfaction of the Tenant
Conditions, Subsidiary shall thereafter, within five (5) Business Days of
receipt of a Leasing Deposit Monthly Payment for such Project Vacant Space: (i)
deposit to the Operations Reserve, by wire transfer pursuant to Section 4
hereof, two percent (2%) of such Leasing Deposit Monthly Payment (also a
"TRANSACTION AMOUNT") and forty percent (40%) of the remaining balance of such
Leasing Deposit Monthly Payment (after deduction of the Transaction Amount); and
(ii) pay the Withdrawing Member, by wire transfer pursuant to Section 4 hereof,
the balance of such Leasing Deposit Monthly Payment (after deduction of the
Transaction Amount and the deposit into the Operations Reserve provided for in
this Subsection (f)).
2.1A. LEASED BUT NOT OPEN SPACE DEPOSIT.
(a) That portion of the Escrow Amount identified as
the sum of FIVE HUNDRED NINETY-FIVE THOUSAND SIX HUNDRED NINETY-THREE AND 44/100
DOLLARS ($595,693.44) is hereby referred to as the "LEASED BUT NOT
4
OPEN SPACE DEPOSIT." The Leased But Not Open Space Deposit equals six (6) months
of PRO FORMA base rent and reimbursable expenses (I.E., pro rata expenses such
as a tenant's pro rata share of common area maintenance expenses and real estate
taxes) for each tenant space at the Property leased to tenants as of the Closing
Date that do not satisfy the Tenant Conditions and that are not part of the
Earnout Space, the Theater Space, or the Project Vacant Space (each a "LEASED
BUT NOT OPEN SPACE"), Each Leased But Not Open Space, the size of such space,
the Tl and LC allocated to such space, the Leased But Not Open Space Deposit
allocated to such space and the average (over a five year period) monthly PRO
FORMA base rent and reimbursable expenses attributable to such space (the
"MONTHLY PRO FORMA BASE RENT AND EXPENSES") is scheduled on EXHIBIT "A" attached
hereto.
(b) On the fifth (5th) Business Days after the
Closing Date, the Escrow Agent shall disburse from the Leased But Not Open Space
Deposit, by wire transfer pursuant to Section 4 hereof, to the Subsidiary for
each Leased But Not Open Space a prorated Monthly Pro Forma Base Rent and
Expenses attributable to each Leased But Not Open Space from the Closing Date
through the end of the month in which Closing occurs. Thereafter, on the first
day of each calendar month during the five (5) consecutive calendar months that
follow the Closing Date, Escrowee shall disburse, by wire transfer pursuant to
Section 4 hereof, from the Leased But Not Open Space Deposit to Subsidiary the
Monthly Pro Forma Base Rent and Expenses (prorated for any partial months), (the
"LEASED BUT NOT OPEN SPACE DEPOSIT MONTHLY PAYMENT") for each Leased But Not
Open Space.
(c) The Leased But Not Open Space Deposit Monthly
Payment for a Leased But Not Open Space shall be made by Escrowee to Subsidiary
until such time as the Tenant Conditions for such Leased But Not Open Space is
satisfied. Subsidiary and/or Cordish Affiliate shall promptly notify the other
and Escrowee of the date any tenant satisfies the Tenant Conditions for a Leased
But Not Open Space.
(d) As the Tenant Conditions for each Leased But Not
Open Space are satisfied during the six (6) month period following the Closing
Date, the balance of the Leased But Not Open Space Deposit attributable to each
such leased portion of the Leased But Not Open Space shall, upon the joint
direction of Cordish Affiliate and Subsidiary, be disbursed by the Escrowee, by
wire transfer pursuant to Section 4 hereof, within five (5) Business Days of
receipt of such joint direction, as follows: two percent (2%) of such amount
(the "TRANSACTION AMOUNT") shall be disbursed by wire transfer pursuant to
Section 4 hereof, directly to the OPERATIONS RESERVE (as that terms is defined
in the Contribution Agreement), forty percent (40%) of the remaining balance of
such amount (after deduction of the Transaction Amount) shall be disbursed, by
wire transfer pursuant to Section 4 hereof, directly to the Operations Reserve
and the remaining balance of such amount (after deduction of the Transaction
Amount and the deposit into the Operations Reserve provided for in this
Subsection (d)) shall be disbursed, by wire transfer pursuant to Section 4
hereof, directly to Withdrawing Member. Within ten (10) Business Days of Cordish
Affiliate's request for a joint direction, to the extent Cordish Affiliate is
entitled to a joint direction, Subsidiary shall cooperate with Cordish Affiliate
and issue the joint direction.
5
(e) The Escrowee shall disburse the balance of the
Leased But Not Open Space Deposit, if any, remaining on the six (6) month
anniversary of the Closing Date (including all interest that has accrued on the
Leased But Not Open Space Deposit) as follows: two percent (2%) of such amount
(also a "TRANSACTION AMOUNT") shall be disbursed by wire transfer pursuant to
Section 4 hereof, directly to the Operations Reserve; then forty percent (40%)
of the remaining balance of such amount (after deduction of the Transaction
Amount) shall be disbursed, by wire transfer pursuant to Section 4 hereof,
directly into the Operations Reserve and the remaining balance of such amount
(after deduction of the Transaction Amount and the deposit into the Operations
Reserve provided for in this Subsection (e)) shall be disbursed, by wire
transfer pursuant to Section 4 hereof, directly to the Withdrawing Member.
(f) Notwithstanding anything to the contrary
contained in this Section 2.1A, on the date that a tenant of a Leased But Not
Open Space has commenced payment of rent prior to the satisfaction of the Tenant
Conditions, Subsidiary shall thereafter, within five (5) Business Days of
receipt of a Leased But Not Open Space Deposit Monthly Payment for such Leased
But Not Open Space: (i) deposit to the Operations Reserve, by wire transfer
pursuant to Section 4 hereof, two percent (2%) of such Leased But Not Open Space
Deposit Monthly Payment (also a "TRANSACTION AMOUNT") and forty percent (40%) of
the remaining balance of such Leased But Not Open Space Deposit Monthly Payment
(after deduction of the Transaction Amount); and (ii) pay the Withdrawing
Member, by wire transfer pursuant to Section 4 hereof, the balance of such
Leased But Not Open Space Deposit Monthly Payment (after deduction of the
Transaction Amount and the deposit into the Operations Reserve provided for in
this Subsection (f)).
(g) With the exception of Section 2.1, for all purposes of this
Agreement, the Contribution Agreement and the other agreements executed on the
date hereof in connection with the Contribution Agreement, the Leased But Not
Open Space shall be deemed Part of the PROJECT VACANT SPACE.
2.1B. THEATER DEPOSIT.
(a) That portion of the Escrow Amount identified as
the sum of FIFTEEN MILLION TWO HUNDRED NINETY-SEVEN THOUSAND EIGHTY-FIVE AND
65/100 DOLLARS ($15,297,085.65) is hereby referred to as the "THEATER DEPOSIT."
The Theater Deposit equals the value of the LOEWS LEASE (as that term is defined
in the Contribution Agreement). On the date hereof the Tenant Conditions for the
Loews Lease has not been satisfied. The monthly rental and reimbursables due and
payable under the Loews Lease during the first twelve (12) months that follow
the rent commencement date of the Loews Lease is equal to the sum of ONE HUNDRED
TWELVE THOUSAND FIVE HUNDRED FIFTY AND 00/100 DOLLARS ($112,550.00) (the
"THEATER MONTHLY AMOUNT").
(b) On the fifth (5th) Business Days after the
Closing Date, the Escrow Agent shall disburse from the Theater Deposit, by wire
transfer pursuant to Section 4 hereof, to the Subsidiary an amount equal to the
pro rated Theater Monthly
6
Amount for the remainder of such calendar month from the Closing Date to the end
of the month in which Closing occurs. Thereafter, on the first day of each
calendar month during the eleven (11) consecutive calendar months that follow
the Closing Date, Escrowee shall disburse, by wire transfer pursuant to Section
4 hereof, from the Theater Deposit to Subsidiary the Theater Monthly Amount.
(c) The Theater Monthly Payment shall be made by
Escrowee to Subsidiary until the Tenant Conditions are satisfied for the Theater
Space. Subsidiary and/or Cordish Affiliate shall promptly notify the other and
Escrowee of the date the Theater Space satisfies the Tenant Conditions.
(d) When the Theater Space satisfies the Tenant
Conditions, the balance of the Theater Deposit shall, upon the joint direction
of Cordish Affiliate and Subsidiary, be disbursed by the Escrowee, by wire
transfer pursuant to Section 4 hereof, within five (5) Business Days of receipt
of such joint direction, as follows: two percent (2%) of such amount (the
"TRANSACTION AMOUNT") shall be disbursed by wire transfer pursuant to Section 4
hereof, directly to the OPERATIONS RESERVE (as that terms is defined in the
Contribution Agreement), forty percent (40%) of the remaining balance of such
amount (after deduction of the Transaction Amount) shall be disbursed, by wire
transfer pursuant to Section 4 hereof, directly to the Operations Reserve and
the remaining balance of such amount (after deduction of the Transaction Amount
and the deposit into the Operations Reserve provided for in this Subsection (d))
shall he disbursed, by wire transfer pursuant to Section 4 hereof, directly to
Withdrawing Member.
(e) In the event the Tenant Conditions for the
Theater Space have not been satisfied on the first (1st) anniversary date of the
Closing Date, Escrowee shall disburse the balance of the Theater Deposit to
Subsidiary by wire transfer pursuant to Section 4 hereof.
(f) Notwithstanding anything to the contrary
contained in this Section 2.1 A, on the date that the tenant under the Loews
Lease has commenced payment of rent prior to the satisfaction of the Tenant
Conditions for the Theater Space, Subsidiary shall thereafter, within five (5)
Business Days of receipt of a Theater Monthly Amount: (i) deposit to the
Operations Reserve, by wire transfer pursuant to Section 4 hereof, two percent
(2%) of the rent received by Subsidiary from such tenant for such month (also a
"TRANSACTION AMOUNT") and forty percent (40%) of the remaining balance of such
rent (after deduction of the Transaction Amount); and (ii) pay the Withdrawing
Member, by wire transfer pursuant to Section 4 hereof, the balance of such rent
(after deduction of the Transaction Amount and the deposit into the Operations
Reserve provided for in this Subsection (f)).
(g) If the Loews Lease is terminated prior to the
first anniversary of the date hereof prior to the satisfaction of the Tenant
Conditions for the Theater Space, or the tenant under the Loews Lease files for
bankruptcy, insolvency, or reorganization protection pursuant to any statute
either of the United States or any state after the date of Closing, Cordish
Affiliate shall have the right, on or before the first (1st) anniversary of the
date hereof, to replace the Loews Lease with a lease or leases from a tenant or
tenants
7
reasonably acceptable to Subsidiary and such replacement lease or leases shall
be deemed the Loews Lease for purposes of this Section 2.1B.
2.2. TENANT IMPROVEMENT ALLOWANCES AND LEASING COMMISSIONS
DEPOSIT FOR PROJECT VACANT SPACE (INCLUDING LEASED BUT NOT OPEN SPACE.)
(a) That portion of the Escrow Amount identified as
the sum of ONE MILLION THIRTY THOUSAND TWO HUNDRED THIRTY AND 00/100 DOLLARS
($1,030,230.00) is hereby referred to as the "TI/LC DEPOSIT." The TI/LC Deposit
consists of the sum of the aggregate amount of projected "tenant improvement"
costs that will have to be paid or incurred for each Project Vacant Space ("TI")
and the aggregate amount of projected "leasing commission" costs that will have
to be paid or incurred for each Project Vacant Space ("LC"). The TI and LC
applicable to each Project Vacant Space as scheduled on EXHIBIT "A" hereto.
(b) (i) That portion of the TI/LC Deposit
attributable to LC for a Project Vacant Space shall, upon the joint direction of
Cordish Affiliate and Subsidiary, be disbursed by the Escrowee to the Operations
Reserve (or, at the written request of Cordish Affiliate contained in such joint
direction, to Cordish Affiliate pursuant to wire instructions contained in such
joint direction), by wire transfer pursuant to Section 4 hereof, within five (5)
Business Days of receipt of such joint direction. Within ten (10) Business Days
of Cordish Affiliate's request for a joint direction, which request shall be
accompanied by signed lien waivers and invoices from the applicable real estate
broker or brokers for such Project Vacant Space, or if no broker is involved,
upon the delivery of a certification to that effect by Cordish Affiliate for the
benefit of Subsidiary. Within ten (10) Business Days of Cordish Affiliate's
request for a joint direction, to the extent Cordish Affiliate is entitled to a
joint direction, Subsidiary shall cooperate with Cordish Affiliate and issue and
deliver the joint direction to Escrowee.
(ii) That portion of the TI/LC Deposit
attributable to TI for a Project Vacant Space shall, upon the joint direction of
Cordish Affiliate and Subsidiary, be disbursed by the Escrowee to the Operations
Reserve, by wire transfer pursuant to Section 4 hereof (or, at the written
request of Cordish Affiliate contained in such joint direction, to Cordish
Affiliate pursuant to wire instructions contained in such joint direction),
within five (5) Business Days of receipt of such joint direction. Within ten
(10) Business Days of Cordish Affiliate's request for a joint direction, which
request shall be accompanied by either (A) the documentation required by each
lease for such Project Vacant Space, and in any event, in the event that Cordish
Affiliate is performing construction work, no less documentation than copies of
invoices and mechanics lien waivers for landlord's work from the applicable
general contractor for such Project Vacant Space, in the amount of each request
shall accompany the draw request; or (B) or if no TI is required for a Project
Vacant Space, a certification to that effect by Cordish Affiliate for the
benefit of Subsidiary. Within ten (10) Business Days of Cordish Affiliate's
request for a joint direction, to the extent Cordish Affiliate is entitled to a
joint direction, Subsidiary shall cooperate with Cordish Affiliate and issue and
deliver the joint direction to Escrowee.
8
(iii) To the extent the TI/LC Deposit has not
been fully disbursed by the second anniversary of the Closing Date, the Escrowee
shall, by wire transfer pursuant to Section 4 hereof, disburse, by wire transfer
pursuant to Section 4 hereof, the remaining balance of the TI/LC Deposit to
Subsidiary (exclusive of all interest that accrued thereon) and all interest
that accrued thereon into the Operations Reserve.
3. DISPUTE - ESCROWEE RIGHTS. In the event either party
objects to the disbursement of the Escrow Amount as provided above, Escrowee
shall notify Subsidiary, Cordish Affiliate and Withdrawing Member of such
dispute and shall hold the Escrow Amount in escrow pending resolution of such
objection by mutual agreement of the parties or by arbitration of same pursuant
to the provisions of Section 6 hereof. After any disbursement of the Escrow
Amount under the terms of this Agreement, Escrowee's duties and obligations
hereunder shall cease. In the event of any dispute regarding disbursement of the
Escrow Amount, the party ultimately receiving the Escrow Amount after resolution
of such dispute shall be entitled to receive from the other party all the
prevailing party's costs and expenses incurred in connection with the resolution
of such dispute including, without limitation, all arbitration, court costs and
reasonable attorney's fees.
4. WIRE INSTRUCTIONS. Any part of the Escrow Amount to be
disbursed into the Operations Reserve shall be disbursed by wire transfer of
immediately available funds in accordance with the wire instructions attached
hereto as EXHIBIT "B". Any part of the Escrow Amount to be disbursed into the
Withdrawing Member shall be disbursed by wire transfer of immediately available
funds in accordance with the wire instructions attached hereto as EXHIBIT "C".
Any part of the Escrow Amount to be disbursed to Subsidiary shall be disbursed
by wire transfer of immediately available funds in accordance with the wire
instructions attached hereto as EXHIBIT "D". To the extent that any of the
attached wiring instructions require Escrowee to notify a person or party by
telephone or fax of such wire, the amount of such wire, the date and time of the
sending of such wire and the Fed Reference Number for such wire, Escrowee shall
comply with such instructions. Cordish Affiliate shall have the right, from time
to time, to change the wire instructions applicable for disbursements into the
Operations Reserve by Notice to the other parties hereto. Withdrawing Member
shall have the right, from time to time, to change the wire instructions
applicable for disbursements to Withdrawing Member by Notice to the other
parties hereto. Subsidiary shall have the right, from time to time, to change
the wire instructions applicable for disbursements to Subsidiary by Notice to
the other parties hereto. Any such change of wire instructions by a party hereto
or Withdrawing Member shall become effective five (5) Business Days after the
effective date of such Notice to Escrowee and the other parties hereto.
9
5. REPRESENTATIONS AND WARRANTIES.
5.1. Cordish Affiliate hereby represents and warrants to
Subsidiary and Escrowee as follows:
(a) Cordish Affiliate is a limited liability company
duly organized, validly existing and in good standing under the laws of the
State of Maryland. Cordish Affiliate has all requisite power and authority to
carry on the businesses in which it is engaged and to own and use the properties
owned and used by it.
(b) Cordish Affiliate has all requisite power and
authority to execute and deliver this Agreement, and to perform its obligations
hereunder and thereunder. The execution and delivery by Cordish Affiliate of
this Agreement and the consummation by Cordish Affiliate of the transactions
contemplated hereby have been duly and validly authorized by all necessary
action on the part of Cordish Affiliate. This Agreement has been duly and
validly executed and delivered by Cordish Affiliate and constitutes a valid and
binding obligation of Cordish Affiliate, enforceable against it in accordance
with its terms.
(c) Neither the execution and delivery by Cordish
Affiliate of this Agreement nor the consummation by Cordish Affiliate of the
transactions contemplated hereby and thereby, will: (i) conflict with or violate
any provision of the organizational documents of Cordish Affiliate Affiliate,
(ii) require on the part of Cordish Affiliate any filing with, or permit,
authorization, consent or approval of, any third party, (iii) conflict with,
result in breach of, constitute (with or without due notice or lapse of time or
both) a default under, result in the acceleration of obligations under, create
in any party any right to terminate, modify or cancel, or require any notice,
consent or waiver under, any contract or instrument to which Cordish Affiliate
is a party or by which it is bound or to which its assets are subject, or (iv)
violate any order, writ, injunction, decree, statute, rule or regulation
applicable to Cordish Affiliate or any of its properties or assets.
5.2. Subsidiary hereby represents and warrants to Cordish
Affiliate and Escrowee as follows:
(a) Subsidiary is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of
Maryland and is duly qualified to conduct business and is in corporate and tax
good standing under the laws of each jurisdiction in which the nature of its
businesses or the ownership or leasing of its properties requires such
qualification. Subsidiary has all requisite power and authority to carry on the
businesses in which it is engaged and to own and use the properties owned and
used by it.
(b) Subsidiary has all requisite power and authority
to execute and deliver this Agreement, and to perform its obligations hereunder
and thereunder. The execution and delivery by Subsidiary of this Agreement and
the consummation by Subsidiary of the transactions contemplated hereby have been
duly and validly authorized by all necessary action on the part of Subsidiary.
This Agreement has been duly and
10
validly executed and delivered by Subsidiary and constitutes a valid and binding
obligation of Subsidiary, enforceable against it in accordance with its terms.
(c) Neither the execution and delivery by Subsidiary
of this Agreement nor the consummation by Subsidiary of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Subsidiary, (ii) require on the
part of Subsidiary any filing with, or permit, authorization, consent or
approval of, any third party, (iii) conflict with, result in breach of,
constitute (with or without due notice or lapse of time or both) a default
under, result in the acceleration of obligations under, create in any party any
right to terminate, modify or cancel, or require any notice, consent or waiver
under, any contract or instrument to which Subsidiary is a party or by which it
is bound or to which its assets are subject, or (iv) violate any order, writ,
injunction, decree, statute, rule or regulation applicable to Subsidiary or any
of its properties or assets.
5.3. Escrowee hereby represents and warrants to Cordish
Affiliate and Subsidiary as follows:
(a) Escrowee is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York
and is duly qualified to conduct business and is in corporate and tax good
standing under the laws in each jurisdiction in which the nature of its
businesses requires such qualification. Escrowee has all requisite power and
authority to carry on the businesses in which it is engaged and to own and use
the properties owned and used by it.
(b) Escrowee has all requisite power and authority
to execute and deliver this Agreement, and to perform its obligations hereunder
and thereunder. The execution and delivery by Escrowee of this Agreement and the
consummation by Escrowee of the transactions contemplated hereby have been duly
and validly authorized by all necessary action on the part of Escrowee. This
Agreement has been duly and validly executed and delivered by Escrowee and
constitutes a valid and binding obligation of Escrowee, enforceable against it
in accordance with its terms.
(c) Neither the execution and delivery by Escrowee
of this Agreement nor the consummation by Escrowee of the transactions
contemplated hereby and thereby, will: (i) conflict with or violate any
provision of the organizational documents of Escrowee, (ii) require on the part
of Escrowee any filing with, or permit, authorization, consent or approval of,
any third party, (iii) conflict with, result in breach of, constitute (with or
without due notice or lapse of time or both) a default under, result in the
acceleration of obligations under, create in any party any right to terminate,
modify or cancel, or require any notice, consent or waiver under, any contract
or instrument to which Escrowee is a party or by which it is bound or to which
its assets are subject, or (iv) violate any order, writ, injunction, decree,
statute, rule or regulation applicable to Escrowee or any of its properties or
assets.
6. ARBITRATION. In the event that any dispute shall arise
between or among the parties hereto with respect to the application of any of
the provisions of this Agreement,
11
and such dispute is not resolved to the satisfaction of the parties hereto
within twenty (20) days after the a party hereto shall notify the other parties
hereto in writing of its desire to arbitrate the dispute (the "ARBITRATION
NOTICE"), then the dispute shall be resolved in accordance with the Commercial
Arbitration Rules of the American Arbitration Association then pertaining. The
decision of the arbitrator shall be binding, final and conclusive on the
parties. Unless the parties otherwise agree, such arbitration proceedings shall
be conducted in Baltimore, Maryland. The arbitrator shall be selected by the
American Arbitration Association in accordance with the Commercial Arbitration
Rules of the American Arbitration Association. The fees of the arbitrator and
the expenses incident to the proceedings shall be borne by the losing party. The
decision of the arbitrator shall be rendered within thirty (30) days after the
conclusion of the arbitration. A judgment of a court of competent jurisdiction
may be entered upon the award of the arbitrator in accordance with the rules
and statutes applicable thereto then obtaining. The parties hereto agree that
the arbitrator may order and compel specific performance.
7. VENUE. Any lawsuit, action, or proceeding arising under
this Agreement that is not subject to arbitration shall, to the extent there is
federal jurisdiction over the parties and subject matter, be brought exclusively
in the Northern Division of the United States District Court for the District of
Maryland. In the event federal jurisdiction does not exist, such lawsuit, action
or proceeding shall be brought in the Circuit Court for Baltimore County,
Maryland.
8. COOPERATION/CONFLICT WITH CONTRIBUTION AGREEMENT/.
Subsidiary shall reasonably cooperate with the efforts of Cordish Affiliate to
satisfy the conditions of the disbursement of the Escrow Amount and shall not
unreasonably withhold any approval or issuance of any distribution direction
requested by Cordish Affiliate hereunder. In the event of a conflict between the
provisions of the Contribution Agreement and the provisions of this Agreement,
the provisions of this Agreement shall control. To the extent Subsidiary is
obligated to pay any cost and expense in connection with this Agreement, such
cost and expense shall not be paid or reimbursed from the Operations Reserve.
9. COSTS OF ADMINISTRATION AND SUCCESSORS AND ASSIGNS. The
costs of administration of this Agreement by Escrowee shall be shared equally by
Cordish Affiliate and Subsidiary. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective heirs, principals,
successors and assigns and shall be governed and construed in accordance with
the laws of the State of Illinois.
10. NOTICES. All notices, demands, consents, approvals,
requests or other communications which any of the parties to this Agreement or
Withdrawing Member may desire or be required to give hereunder (collectively,
"NOTICES") shall be in writing and shall be given by personal delivery,
nationally recognized next day delivery service (delivery charges prepaid,
return receipt requested) or United States registered or certified mail (postage
prepaid, return receipt requested) addressed as hereinafter provided. Except as
otherwise specified herein, the effective date of any Notice (I.E., the date a
party shall be deemed to have received such Notice), shall be the earliest to
occur of: (a)
12
if by personal delivery, the date of receipt, or attempted delivery, if such
communication is refused; (b) if by nationally recognized next Business Day
delivery service (as aforesaid), the next Business Day after delivery to such
service; and (c) if sent by mail (as aforesaid), three (3) Business Days after
posting. Until further notice, notices and other communications under this
Agreement shall be addressed to the parties and Withdrawing Member listed below
as follows:
If to Subsidiary: Capital Centre LLC
c/o Inland Western Retail Real Estate Trust, Inc.
0000 Xxxxxxxxxxx Xxxx
Xxx Xxxxx, Xxxxxxxx 00000
Attention: Chief Financial Officer
with a copy to: Xxxxxxx X. Xxxxxxxxx, Esq.
0000 Xxxxxxxxxxx Xxxx
0xx Xxxxx
Xxx Xxxxx, Xxxxxxxx 00000
If to Cordish Affiliate: CC Investors LLC
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attn: Xxxxx X. Xxxxxxx
with a copy to: CC Investors LLC
c/o The Cordish Company
000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Attn: General Counsel
If to Escrowee: Chicago Title Insurance Company
000 Xxxxx Xxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxx Xxxxxx
If to Withdrawing Member: Centre Group Limited Partnership
c/o Washington Sports and Entertainment
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
with a copy to: Centre Group Limited Partnership
c/o c/o Washington Sports and Entertainment
000 X Xxxxxx, XX
Xxxxxxxxxx, XX 00000
Attention: President
13
with a copy to: Xxxxxxx X. Brand, Esquire
Arent Fox PLLC
0000 Xxxxxxxxxxx Xxxxxx, XX
Xxxxxxxxxx, XX 00000-0000
Any party hereto or Withdrawing Member may designate another addressee (and/or
change its address) for Notices hereunder by a Notice given pursuant to this
Section to each of the other parties hereto and Withdrawing Member.
WHEN DELIVERING A NOTICE PURSUANT TO THIS AGREEMENT, EACH PARTY SHALL
CONTEMPORANEOUSLY DELIVER A COPY OF SUCH NOTICE TO WITHDRAWING MEMBER AT THE
NOTICE ADDRESSES OF WITHDRAWING MEMBER CONTAINED IN THIS SECTION 10 BY THE SAME
MANNER OF DELIVERY OF SUCH NOTICE.
11. HEADINGS. The captions and section headings contained in
this Agreement are for convenience of reference only and shall not be considered
in any interpretation of the provisions of this Agreement.
12. REPORTING. Escrowee agrees to deliver to Subsidiary and
Cordish Affiliate, on a monthly basis, a copy of the bank statement of account
of the Escrow Amount. Such monthly statements shall be delivered to Cordish
Affiliate at its notice address and to Subsidiary: Inland Western Retail Real
Estate Trust, Inc., 0000 Xxxxxxxxxxx Xxxx, Xxx Xxxxx Xxxxxxxx 00000, attention
Xxxxxx Xxxxxx, CFO (telephone: 000-000-0000; facsimile: 630-218-4900).
13. AMENDMENTS/THIRD PARTY BENEFICIARY. EXCEPT AS OTHERWISE
HEREIN PROVIDED, ANY AND ALL AMENDMENTS, MODIFICATIONS, ADDITIONS OR DELETIONS
TO THIS AGREEMENT SHALL BE NULL AND VOID UNLESS APPROVED IN ADVANCE BY THE
PARTIES HERETO IN WRITING. THE PARTIES HERETO ACKNOWLEDGE AND AGREE THAT CORDISH
AFFILIATE MAY NOT ENTER INTO OR CONSENT TO ANY AMENDMENTS, MODIFICATION,
ADDITIONS OR DELETIONS TO THIS AGREEMENT UNLESS IT OBTAINS THE PRIOR WRITTEN
CONSENT THERETO FROM WITHDRAWING MEMBER. WITHDRAWING MEMBER IS A THIRD PARTY
BENEFICIARY OF THIS AGREEMENT. In the event that any party hereto fails to
comply with any of the terms and provisions of this Agreement, Withdrawing
Member shall have the right to initiate and prosecute an arbitration proceeding
against such party to enforce the provisions of this Agreement (including court
actions to enforce or challenge any findings) solely to the extent that such
provisions directly effect the economic rights and interests of Withdrawing
Member. The provisions of Sections 6, 7, 15, 17 and 18 shall apply to such
proceeding as if Withdrawing Member was a party to this Agreement.
14. INTEGRATION. With the exception of the Contribution
Agreement and the INDEMNITY AGREEMENT, the LEASING AGREEMENT, the LIQUIDITY
AMOUNT ESCROW AGREEMENT and the OPERATING AGREEMENT (as those terms are defined
in the
14
Contribution Agreement) and any and all agreements executed in connection with
any such agreements, this Agreement encompasses, replaces, integrates and
supercedes any and all other negotiations, discussions, offers, promises,
arrangements and agreements between the parties hereto relating to the Property.
15. INVALID PROVISIONS. This Agreement shall be construed,
as to execution, interpretation and enforcement, in accordance with the laws of
the State of Maryland. If any term, condition or provision of this Agreement
shall be declared invalid or unenforceable, the remainder of this Agreement
shall not be affected thereby and shall remain in full force and effect and
shall be valid and enforceable to the fullest extent permitted by law.
16. ATTRIBUTION OF DRAFTING. This Agreement shall be deemed
to have been drafted jointly by the parties and any uncertainty or ambiguity
shall not be construed for or against either party as an attribution of drafting
of either party.
17. ATTORNEY FEES. Subject to the provisions of Section 6
hereof, if either Subsidiary or Cordish Affiliate brings suit or other legal
proceedings to enforce the provisions of this Agreement against the other, then
the party prevailing in such suit or proceeding shall be reimbursed by the other
for all reasonable attorneys' fees and litigation costs and expenses incurred by
the prevailing party in connection with such suit or proceeding.
18. WAIVER OF JURY TRIAL. Subject to the provisions of
Section 6 hereof, Subsidiary and Cordish Affiliate do hereby waive trial by jury
in any action, suit, proceeding, and/or counterclaim brought by either of the
parties hereto against the other on any matters whatsoever arising out of or in
any way connected with this Agreement any claim of injury or damage, and/or
statutory remedy.
19. GOOD FAITH AND FAIR DEALING. The parties covenant and
agree each to the other that its conduct under this Agreement, and the
interpretation and enforcement of the provisions hereof, shall be characterized
by good faith and fair dealings so that the objectives of each party as set
forth in this Agreement may be achieved.
20. COUNTERPARTS. This Agreement may be executed in
counterparts and shall constitute an agreement binding on all parties
notwithstanding that all parties are not signatories of the original or the same
counterpart. Furthermore, the signatures from one counterpart may be attached to
another to constitute a fully executed original. The Agreement may be executed
by facsimile.
21. TIME OF THE ESSENCE. Time is of the essence with regard
to the parties obligations under this Agreement.
22. SURVIVAL PERIOD IN CONTRIBUTION AGREEMENT. Section 2 of
the Indemnification Agreement provides that the representations, warranties,
covenants or agreements made in the Contribution Agreement shall survive the
Closing Date for the
15
periods provided therein. Nothing in this Agreement shall be interpreted as
modifying the survival period of such representations, warranties, covenants or
agreements.
23. BUSINESS DAY. The term "BUSINESS DAY" means any day
other than Saturday, Sunday or any other day on which commercial banks or
savings and loan associations are required or authorized by law to close in New
York City.
SIGNATURES ON NEXT PAGE
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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement
to be signed and delivered, under seal, as of the day and year first above
written.
WITNESS/ATTEST: CORDISH AFFILIATE:
CC INVESTORS LLC,
a Maryland limited liability company
/s/ [ILLEGIBLE] By: /s/ Xxxxxxx X. Xxxxxx (SEAL)
--------------- --------------------------
Xxxxxxx X. Xxxxxx
Authorized Person
SUBSIDIARY:
CAPITAL CENTRE LLC, a Maryland limited
liability company
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
--------------- --------------------------
Name: /s/ [ILLEGIBLE]
------------------------
Title: Asst. Secretary
----------------------
ESCROWEE:
CHICAGO TITLE INSURANCE COMPANY, a
New York corporation
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE] (SEAL)
--------------- ---------------------------
Title: /s/ [ILLEGIBLE]
-----------------------
Name: ASSISTANT VICE PRESIDENT
------------------------
17
EXHIBIT "A"
SCHEDULE OF PROJECT VACANT SPACE (INCLUDING LEASED BUT NOT OPEN SPACE)
INFORMATION
List each Project Vacant Space, the size of such space, the TI and LC (as those
terms are defined in Section 2.2 hereof) allocated to such space, the LEASING
DEPOSIT or LEASED BUT NOT OPEN DEPOSIT allocated to such space and the average
(over a five year period) monthly PRO FORMA base rent and reimbursable expenses
attributable to such space (the "MONTHLY PRO FORMA BASE RENT AND EXPENSES"). In
addition, list each Leased But Not Open Space and the monthly rental allocable
to each space.
CAP CENTRE VACANCY ESCROW CALCULATION
ESTIMATED
SPACE NUMBER OPENING DATE SQUARE FOOTAGE ANNUAL RENT
------------ ------------ -------------- ---------------
Lowes Xxxxx Xxxxxxx Theater K10? 10/8/2004 52,500 $ 1,155.00
AVERAGE
ESTIMATED ANNUAL RENT
SPACE NUMBER OPENING DATE SQUARE FOOTAGE (NEXT FIVE YRS)
------------ ------------ -------------- ---------------
VACANT (Dynamics or Nine West pending) D105 11/1/2004 3,000 $ 67,00
VACANT E103 3/1/2005 1,556 54,47
VACANT (lease pending: Xxxxx Xxxxxxx) I102 2/1/2005 4,209 105,22
VACANT M102 3/1/2005 1,157 38,05
VACANT POWER CENTER (lease pending: Bombay) PC102 3/1/2005 6,106 134,33
African Stargina (tenant has not paid August
rent) J106 Open 1,500 50,67
Jilliano's Shoes (tenant has not paid August
rent) M101 Open 1,998 43,81
Soul Fixins (signed lease--6 month escrow only) E101 11/1/2004 2,085 66,36
Last Stop (signed lease--6 month escrow only) I102 11/1/2004 3,000 90,00
Reggiano's (signed lease--6 month escrow only) J104 11/1/2004 2,000 51,60
Stonefish Grill (signed lease--6 month escrow
only) L103 10/1/2004 6,085 225,93
Kobe Steakhouse (signed lease--6 month escrow
only) M104 12/1/2004 7,520 147,61
Chevy Chase Bank (signed leased--6 month escrow
only) I101 2/1/2005 3,000 108,00
Ladies Workout Express (signed lease--6 month
escrow only) I110 2/1/2005 1,375 44,35
Xxxxxx & Rons (signed-lease--6 month escrow only) M103 2/1/2005 6,085 162,47
2 Chevy Chase ATMs (signed lease--6 month escrow
only) P103 2/1/2005 160 36,00
------------------------------------------------- ------------ ------------ -------------- ----------
TOTALS 103,336 1,445,91
-------------------------------------------------------------------------------------------------------------------
EXHIBIT "B"
WIRE INSTRUCTIONS FOR DISBURSEMENTS TO WITHDRAWING MEMBER
(To the extent that any of the attached wiring instructions require Escrowee to
notify a person or party by telephone or fax of such wire, the amount of such
wire, the date and time of the sending of such wire and the Fed Reference Number
for such wire, Escrowee shall comply with such instructions.)
