PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (this "Agreement") is made as of September 4,
1998 by and between FFCA/PIP 1986 PROPERTY COMPANY, a Delaware general
partnership ("Seller"), whose address is 00000 Xxxxx Xxxxxxxxx Xxxxx,
Xxxxxxxxxx, Xxxxxxx 00000, and FJI PLAZA COMPANY LLC, a Delaware limited
liability company ("Buyer"), whose address is 00 Xxxx 000 Xxxxx, Xxxxxxx Xxxx,
Xxxx 00000.
PRELIMINARY STATEMENT
Seller is the owner of the Property and leases the Property to Lessee
pursuant to the Lease and the Additional Lease Documents. Buyer desires to
acquire the Property from Seller pursuant to this Agreement, and Seller has
agreed to sell the Property to Buyer on the terms and conditions set forth in
this Agreement. Unless otherwise expressly provided herein, all defined terms
used in this Agreement shall have the meanings set forth in Section 1.
AGREEMENT
In consideration of the mutual covenants and provisions of this
Agreement, the parties agree as follows:
1. DEFINITIONS. The following terms shall have the meanings set forth
in this Section 1 for all purposes of this Agreement:
"ADDITIONAL LEASE DOCUMENTS" means those certain agreements described
on the attached EXHIBIT B between Seller and Lessee with respect to the
Property.
"AFFILIATE" means any entity or person, as applicable, controlling,
controlled by or under common control with any other person or entity.
"CLOSING" shall have the meaning set forth in Section 4.
"CLOSING DATE" means the date specified as the closing date in Section
4.
"CODE" means the United States Bankruptcy Code, 11 U.S.C. Sec. 101 ET
SEQ., as amended.
"COMMITMENT" means that certain commitment letter dated as of June 9,
1998 between Lessee and FFCA Acquisition Corporation, which Commitment provides
for mortgage loan financing to be provided by Lender to Buyer to finance the
Property, subject to the satisfaction by Buyer of its obligations under the
Commitment.
"ENVIRONMENTAL LAWS" means any present and future federal, state and
local laws, statutes, ordinances, rules, regulations and the like, as well as
common law, relating to Hazardous Materials, Regulated Substances or USTs and/or
the protection of human health or the environment by reason of a Release or a
Threatened Release of Hazardous Materials or relating to liability for or costs
of Remediation or prevention of Releases. "Environmental Laws" includes, but is
not limited to, the
following statutes, as amended, any successor thereto, and any regulations
promulgated pursuant thereto, and any state or local statutes, ordinances,
rules, regulations and the like addressing similar issues: the Comprehensive
Environmental Response, Compensation and Liability Act; the Emergency Planning
and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the
Resource Conservation and Recovery Act (including but not limited to Subtitle I
relating to USTs); the Solid Waste Disposal Act; the Clean Water Act; the Clean
Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the
Occupational Safety and Health Act; the Federal Water Pollution Control Act; the
Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act;
the National Environmental Policy Act; and the River and Harbors Appropriation
Act. "Environmental Laws" also includes, but is not limited to, any present and
future federal, state and local laws, statutes, ordinances, rules, regulations
and the like, as well as common law: conditioning transfer of property upon a
negative declaration or other approval of a Governmental Authority with respect
to Hazardous Materials; requiring notification or disclosure of Releases or
other environmental condition of the Property to any Governmental Authority or
other person or entity, whether or not in connection with transfer of title to
or interest in property; imposing conditions or requirements relating to
Hazardous Materials, Regulated Substances or USTs in connection with permits or
other authorization for lawful activity; relating to the handling and disposal
of solid or hazardous waste; relating to nuisance, trespass or other causes of
action related to Hazardous Materials, Regulated Substances or USTs; and
relating to wrongful death, personal injury, or property or other damage in
connection with the physical condition or use of the Property by reason of the
presence of Hazardous Materials, Regulated Substances or USTs in, on, under or
above the Property.
"GOVERNMENTAL AUTHORITY" means any governmental authority, agency,
department, commission, bureau, board, instrumentality, court or
quasi-governmental authority of the United States, the state where the Property
is located or any political subdivision thereof and the state(s) where Buyer is
formed and/or maintains its chief executive office or any political subdivision
thereof.
"GOVERNMENTAL REQUIREMENTS" means all applicable federal, state and
local laws, statutes, rules, regulations and ordinances, including, without
limitation, the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 (the
"Governmental Requirements")
"HAZARDOUS MATERIALS" means (a) any toxic substance or hazardous waste,
substance or related material, or any pollutant or contaminant; (b) radon gas,
asbestos in any form which is or could become friable, urea formaldehyde foam
insulation, transformers or other equipment which contains dielectric fluid
containing levels of polychlorinated biphenyls in excess of federal, state or
local safety guidelines, whichever are more stringent, or any "petroleum" and
"petroleum-based substances" or any similar terms described or defined in any
Environmental Laws and any applicable federal, state, county or local laws
applicable to or regulating USTs; or (c) any substance, gas, material or
chemical which is or may be defined as or included in the definition of
"hazardous substances," "toxic substances," "hazardous materials," hazardous
wastes" or words of similar import under any Environmental Laws.
"LEASE" means that certain lease between Seller, as lessor, and Lessee,
as lessee, with respect to the Property, which lease, including all amendments
and modifications, is described more
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particularly on the attached EXHIBIT B.
"LENDER" means FFCA Acquisition Corporation or its assignee.
"LESSEE" means Flying J Inc., a Utah corporation.
"NON-FOREIGN SELLER CERTIFICATE" means the certificate to be delivered
by Seller prior to or at the Closing pursuant to which Seller shall certify to
Buyer that Seller is neither a nonresident alien, a foreign partnership, a
foreign trust or a foreign estate, as those terms are used in the Internal
Revenue Code.
"PERMITTED EXCEPTIONS" means (i) those easements, restrictions,
encumbrances and other matters of record as of the date Seller acquired title to
the Property, (ii) those easements, restrictions, encumbrances and other matters
placed of record subsequent to the date Seller acquired title to the Property in
accordance with the terms of the Lease, (iii) such other easements,
restrictions, encumbrances and other matters which do not have a material
adverse effect on the current operation or use of the Property, (iv) matters
which a current survey of the Property would reveal, (v) taxes and assessments
and (vi) liens, restrictions, easements, encumbrances and other matters created
by or resulting from the acts of Buyer, Lessee or any other Affiliate of Buyer
or Lessee; provided, however, Permitted Exceptions shall not include monetary
liens of record against the Property created by the acts of Seller, nor shall
Permitted Exceptions include lis pendens of record against the Property as a
result of any dispute between Seller and any third-party.
"PERSON" means any individual, corporation, partnership, limited
liability company, trust, unincorporated organization, Governmental Authority or
any other form of entity.
"PROPERTY" means the parcel of real estate described by address in
EXHIBIT A attached hereto, all rights, privileges and appurtenances associated
therewith, and all buildings, fixtures and other improvements now located
thereon and all of Seller's right, title and interest in all of the equipment,
trade fixtures and other items of tangible personal property situated on or
about or used in connection with such real estate.
"PROXY CONSENT" means the consent to sell the Property and all of the
properties which are the subject of the Related Seller Agreements, as
applicable, from more than 50% of the interests in Seller held by the limited
partners of Seller. Such Proxy Consent shall be received pursuant to a
definitive proxy statement filed with the Securities and Exchange Commission
pursuant to Section 14(a) of the Securities Exchange Act of 1934, as amended.
"PURCHASE PRICE" means the amount specified in Section 3.
"REGULATED SUBSTANCES" means "petroleum" and "petroleum-based
substances" or any similar terms described or defined in any Environmental Laws
and any applicable federal, state, county or local laws applicable to or
regulating USTs.
"RELATED AFFILIATE AGREEMENTS" means the purchase agreements described
on the attached SCHEDULE I between Seller's Affiliates and Buyer or Buyer's
Affiliates.
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"RELATED SELLER AGREEMENTS" means the purchase agreements described on
the attached SCHEDULE II between Seller and Buyer or Buyer's Affiliates.
"RELEASE" means any presence, release, deposit, discharge, emission,
leaking, spilling, seeping, migrating, injecting, pumping, pouring, emptying,
escaping, dumping, disposing or other movement of Hazardous Materials, Regulated
Substances or USTs.
"REMEDIATION" means any response, remedial, removal, or corrective
action, any activity to cleanup, detoxify, decontaminate, contain or otherwise
remediate any Hazardous Material, Regulated Substances or USTs, any actions to
prevent, cure or mitigate any Release, any action to comply with any
Environmental Laws or with any permits issued pursuant thereto, any inspection,
investigation, study, monitoring, assessment, audit, sampling and testing,
laboratory or other analysis, or any evaluation relating to any Hazardous
Materials, Regulated Substances or USTs.
"SPECIAL WARRANTY DEED" means the special or limited warranty deed to
be executed and delivered by Seller at the Closing for the Property, which
Special Warranty Deed shall be subject to the Permitted Exceptions and otherwise
in the form attached hereto as EXHIBIT C, with such changes as may be reasonably
necessary to comply with Governmental Requirements and the requirements of Title
Company and/or applicable Governmental Authorities. The Special Warranty Deed
shall be subject to the limitation of liability set forth in Section 13.
"TERMINATIONS AND RELEASES" shall mean those certain terminations and
mutual releases of the Lease and the Additional Lease Documents to be executed
and delivered by Seller and Lessee as of the Closing; provided, however, such
Terminations and Releases shall not provide for the termination or release of
Lessee's obligations under the Lease and the Additional Lease Documents accruing
or arising prior to the Closing, including, without limitation, Lessee's
indemnification and hold harmless obligations set forth in the Lease and the
Additional Lease Documents, but shall provide for the termination and release of
all of (i) Lessee's obligations under the Lease and the Additional Lease
Documents accruing or arising subsequent to the Closing and (ii) Seller's
obligations under the Lease and the Additional Lease Documents relating thereto
accruing or arising prior to or subsequent to the Closing. The Terminations and
Releases shall contain Lessee's acknowledgment and agreement that all of
Lessee's obligations under the Lease which accrue or arise prior to the Closing
shall survive the Closing and the execution, delivery and recordation of the
Terminations and Releases, and shall otherwise be in the form attached hereto as
EXHIBIT D.
"THREATENED RELEASE" means a substantial likelihood of a Release which
requires action to prevent or mitigate damage to the soil, surface waters,
groundwaters, land, stream sediments, surface or subsurface strata, ambient air
or any other environmental medium comprising or surrounding the Property which
may result from such Release.
"TITLE COMPANY" means Lawyers Title Insurance Corporation, Phoenix
National Division, 0000 Xxxxx Xxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxx, Xxxxxxx,
00000, Attention: Xx. Xxxxxx Xxxxx.
"USTs" means any one or combination of tanks and associated piping
systems used in connection with the storage, dispensing and general use of
Regulated Substances.
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2. TRANSACTION. On the terms and subject to the conditions set forth
herein, Seller shall sell and Buyer shall purchase the Property. The sale and
purchase of the Property and the closing of the transactions contemplated by the
Related Seller Agreements are intended to be an integrated and simultaneous
transaction. The transaction described in this Agreement involves only the sale
of the Property and does not include any assets of Seller not expressly included
within the definition of Property. Seller's liability to Buyer in connection
with the sale and conveyance of the Property shall be limited as set forth in
Section 13.
3. PURCHASE PRICE. The purchase price for the Property (the "Purchase
Price") shall be the amount of $2,371,000.00. Seller and Buyer shall agree in
good faith prior to the Closing on an allocation of the Purchase Price between
the real property and personal property components of the Property solely for
the purpose of calculating applicable transfer taxes imposed by Governmental
Authorities on the recordation of the Special Warranty Deeds. The Purchase Price
shall be net to Seller and shall be paid by Buyer to Seller at the Closing in
immediately available funds, subject to any prorations and adjustments required
by this Agreement.
4. CLOSING; ESCROW AGENT. (a) The purchase and sale of the Property
shall be closed (the "Closing") within 15 days after the satisfaction or waiver
of all of the conditions and requirements set forth in this Agreement,
including, without limitation, receipt of the Proxy Consent, but in no event
shall the Closing occur later than November 30, 1998 (the "Closing Date"). The
Closing shall occur at Seller's offices or at such other location agreed to by
Seller and Buyer. The Closing documents shall be dated as of the Closing Date.
(b) On or prior to the Closing Date, the parties hereto shall deposit
with Title Company all documents and moneys necessary to comply with their
obligations under this Agreement. Title Company shall not cause the transaction
to close unless and until it has received written instructions from Buyer and
Seller to do so. Seller and Buyer hereby engage Title Company to act as escrow
agent in connection with this transaction. Seller and Buyer will deliver to
Title Company all documents, pay to Title Company all sums and do or cause to be
done all other things necessary or required by this Agreement, in the reasonable
judgment of Title Company, to enable Title Company to comply herewith and to
enable any title insurance policy provided for herein to be issued. Title
Company is authorized to pay, from any funds held by it for Buyer's or Seller's
respective credit, all amounts necessary to procure the delivery of such
documents and to pay, on behalf of Buyer and Seller, all charges and obligations
payable by them, respectively. Seller and Buyer will pay all charges payable by
them to Title Company. Title Company is authorized, in the event any conflicting
demand is made upon it concerning these instructions or the escrow, at its
election, to hold any documents and/or funds deposited hereunder until an action
shall be brought in a court of competent jurisdiction to determine the rights of
Seller and Buyer or to interplead such documents and/or funds in an action
brought in any such court. Deposit by Title Company of such documents and funds,
after deducting therefrom its charges and its expenses and attorneys' fees
incurred in connection with any such court action, shall relieve Title Company
of all further liability and responsibility for such documents and funds. Title
Company's receipt of this Agreement and opening of an escrow pursuant to this
Agreement shall be deemed to constitute conclusive evidence of Title Company's
agreement to be bound by the terms and conditions of this Agreement pertaining
to Title Company. Disbursement of any funds shall be made by check, certified
check or wire transfer, as directed by Buyer and Seller. Title Company shall be
under no obligation to
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disburse any funds represented by check or draft, and no check or draft shall be
payment to Title Company in compliance with any of the requirements hereof,
until it is advised by the bank in which such check or draft is deposited that
such check or draft has been honored. Title Company is authorized to act upon
any statement furnished by the holder or payee, or a collection agent for the
holder or payee, of any lien on or charge or assessment in connection with the
Property, concerning the amount of such charge or assessment or the amount
secured by such lien without liability or responsibility for the accuracy of
such statement.
(c) At the Closing, Seller shall deliver or cause to be delivered to
Title Company or Buyer, as applicable, the following:
(1) the Special Warranty Deed duly executed by Seller;
(2) the Non-Foreign Seller Certificate duly executed by
Seller;
(3) evidence of its capacity and authority for the closing of
this transaction;
(4) Terminations and Releases duly executed by Seller; and
(5) all other documents reasonably required by Buyer or Title
Company to close this transaction.
(d) At the Closing, Buyer shall deliver or cause to be delivered to
Title Company or Seller, as applicable, the following:
(1) the Purchase Price in immediately available funds,
adjusted for prorations and credits as provided for in this Agreement;
(2) evidence of its capacity and authority for the closing of
the transaction contemplated herein;
(3) Terminations and Releases duly executed by Lessee; and
(4) all other documents reasonably required by Seller or Title
Company to close this transaction.
(e) Upon receipt of the foregoing items, Title Company shall pay (i)
the Purchase Price to Seller, and (ii) all other sums deposited with Title
Company by Buyer to those third-parties or Title Company entitled to payment as
set forth in the settlement statement prepared by Title Company and signed by
Seller and Buyer, respectively, in connection with the Closing, and record the
Special Warranty Deeds in the applicable real property records.
(f) At the Closing, Seller shall relinquish its right, title and
interest in and to the letter(s) of credit issued for Seller's benefit with
respect to the Lease, provided that, prior to the Closing, Seller shall have the
right to draw on such letter(s) of credit in accordance with the terms and
conditions thereof.
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5. CLOSING COSTS; PRORATIONS. (a) Except as otherwise provided in this
Agreement, Buyer shall be responsible for the payment of all costs and expenses
of the transaction described in this Agreement, whether or not the transaction
described in this Agreement closes, including, without limitation:
(i) the cost of all investigations of the Property conducted
by Buyer, if any, including, without limitation, all environmental
assessments and/or environmental insurance policies, engineering
assessments and mechanical assessments;
(ii) the fees and expenses of Buyer's attorneys and the
reasonable fees and expenses of Seller's attorneys (other than those
incurred in connection with the Proxy Consent);
(iii) the premiums for all title insurance policies, if any,
issued as a result of the conveyance of the Property, including,
without limitation, all title search charges, the premium for all
endorsements to such title insurance policies, and UCC search charges;
(iv) all applicable documentary stamps taxes, filing, transfer
taxes, mortgage and/or recording taxes;
(v) the cost of all surveys;
(vi) the cost of complying with the requirements of the
Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976, to the extent
applicable; and
(vii) the fees and charges of Title Company in its capacity as
escrow agent;
provided, however, Seller shall be solely responsible for the payment
of all costs and expenses incurred in connection with soliciting the
Proxy Consent, whether or not the transaction described in this
Agreement closes, and if the transaction described in this Agreement
does not close because of a breach or default by Seller under this
Agreement, Seller shall be responsible for the payment of any title
commitment cancellation fees imposed by Title Company, the cost of all
ALTA surveys prepared in connection with the Closing and its own
attorneys' fees and expenses.
(b) All rent under the Lease, including, without limitation, Monthly
Percentage Rent (as defined in the Lease), shall be prorated between Seller and
Lessee as of midnight of the day preceding the Closing Date; provided, however,
in the event that the amount of any percentage rent due to Seller under the
Lease cannot be determined by the Closing Date, Buyer shall cause Lessee to
remit such amount to Seller within ten (10) days after the Closing Date.
(c) Seller and Buyer shall not prorate any of the items listed in the
following subsections (i) through (iii), whether accruing or arising prior to or
from and after the Closing Date, and Buyer and Lessee shall be solely
responsible for the payment of all such items:
(i) any and all real estate, personal property, ad valorem and
related taxes,
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levies and charges and assessments with respect to the Property
("Taxes");
(ii) all charges for utilities used at the Property; and
(iii) any and all installments of general or special
assessments.
(d) The provisions of this Section 5 shall survive the Closing or any
termination of this Agreement prior to Closing.
6. REPRESENTATIONS AND WARRANTIES OF BUYER. The representations and
warranties of Buyer contained in this Section are being made to induce Seller to
enter into this Agreement and consummate the transaction contemplated herein,
and Seller has relied, and will continue to rely, upon such representations and
warranties. Buyer represents and warrants to Seller as follows:
A. ORGANIZATION OF BUYER. Buyer is duly organized, validly
existing and in good standing under the laws of its state of formation
and qualified to do business in any jurisdiction where such
qualification is required. All necessary action has been taken to
authorize the execution, delivery and performance by Buyer of this
Agreement and the other documents, instrument and agreements provided
for herein.
B. AUTHORITY OF BUYER. The person who has executed this
Agreement on behalf of Buyer is duly authorized so to do.
C. ENFORCEABILITY. Upon execution by Buyer, this Agreement and
the other documents, instruments and agreements to be executed by Buyer
in connection with this Agreement shall constitute the legal, valid and
binding obligations of Buyer, enforceable against Buyer in accordance
with their respective terms, subject to the receipt of the consents and
approvals required by all applicable Governmental Requirements.
D. CONSENTS. Buyer has obtained all necessary consents and
approvals required to execute this Agreement and perform Buyer's
obligations hereunder.
E. LITIGATION. There are no suits, actions, proceedings or
investigations pending or threatened against or involving Buyer or the
Property before any arbitrator or Governmental Authority which could
reasonably result in any material adverse effect on the business,
condition, worth or operations of Buyer or the Property or Buyer's
ability to perform under this Agreement.
F. NONCONTRAVENTION. Buyer is not, and the authorization,
execution, delivery and performance of this Agreement will not result,
in any breach or default under any other document, instrument or
agreement to which Buyer is a party or by which Buyer, the Property or
any of Buyer's property is subject or bound. The authorization,
execution, delivery and performance of this Agreement by Buyer will not
violate any applicable law, statute, regulation, rule, ordinance, code
or order.
All representations and warranties of Buyer made in this Agreement
shall be and will remain true and complete as of the Closing Date as if made and
restated in full as of such date, and shall survive Closing.
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7. REPRESENTATIONS AND WARRANTIES OF SELLER. The representations and
warranties of Seller contained in this Section are being made to induce Buyer to
enter into this Agreement and consummate the transaction contemplated herein,
and Buyer has relied, and will continue to rely, upon such representations and
warranties. Seller represents and warrants to Buyer as follows:
A. ORGANIZATION OF SELLER. Seller is duly organized, validly
existing and in good standing under the laws of its state of formation
and qualified as a foreign partnership to do business in the state
where the Property is located. Seller has taken all necessary action to
authorize the execution and delivery of this Agreement, and upon
receipt of the Proxy Consent and the consents and approvals required by
all applicable Governmental Requirements, Seller shall be authorized to
perform its obligations under this Agreement and to execute and deliver
the documents, instruments and agreements provided for under this
Agreement.
B. AUTHORITY OF SELLER. The persons who have executed this
Agreement on behalf of Seller are duly authorized so to do.
C. ENFORCEABILITY OF DOCUMENTS. This Agreement and the other
documents, instruments and agreements provided for under this Agreement
to be executed by Seller shall constitute the legal, valid and binding
obligation of Seller enforceable against Seller in accordance with
their terms, subject to the receipt of the Proxy Consent and the
consents and approvals required by all applicable Governmental
Requirements.
D. CONSENTS. Seller has obtained all consents and approvals
required to execute this Agreement, and upon Seller's receipt of the
Proxy Consent and the consents and approvals required by all applicable
Governmental Requirements, Seller shall have obtained all consents and
approvals required to perform Seller's obligations hereunder.
E. LITIGATION. Seller has not been served with any suits,
actions or proceedings involving the Property before any arbitrator or
Governmental Authority which could reasonably result in any material
adverse effect on the business, condition, worth or operations of the
Property.
F. NONCONTRAVENTION. Subject to the receipt of the Proxy
Consent and the satisfaction of all applicable Governmental
Requirements, Seller is not, and the authorization, execution, delivery
and performance of this Agreement will not result, in any breach or
default under any other document, instrument or agreement to which
Seller is a party or by which Seller is subject or bound. Subject to
the receipt of the Proxy Consent and the satisfaction of all applicable
Governmental Requirements, the authorization, execution, delivery and
performance of this Agreement by Seller will not violate any applicable
law, statute, regulation, rule, ordinance, code or order.
All representations and warranties of Seller made in this Agreement
shall be and will remain true and complete as of the Closing Date as if made and
restated in full as of such date, but shall not survive Closing.
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8. "AS IS" NATURE OF SALE. BUYER ACKNOWLEDGES THAT IT IS FULLY AWARE OF
THE QUALITY, PHYSICAL CONDITION AND VALUE OF THE PROPERTY AND THAT BUYER IS NOT
RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF SELLER AS TO THE CONDITION OF
THE PROPERTY IN PURCHASING THE PROPERTY. BUYER FURTHER ACKNOWLEDGES THAT BUYER'S
OBLIGATION TO PURCHASE THE PROPERTY IS NOT SUBJECT TO A DUE DILIGENCE REVIEW
PERIOD AND THAT BUYER HAS HAD AMPLE OPPORTUNITY TO EVALUATE AND ASSESS THE
PROPERTY PRIOR TO THE EXECUTION OF THIS AGREEMENT. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED IN THIS AGREEMENT, IT IS EXPRESSLY UNDERSTOOD AND AGREED
THAT BUYER IS PURCHASING THE PROPERTY "AS IS", AND THAT SELLER IS MAKING NO
REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, BY OPERATION OF LAW
OR OTHERWISE, WITH RESPECT TO THE QUALITY, PHYSICAL CONDITION OR VALUE OF THE
PROPERTY, OR THE INCOME OR EXPENSES FROM OR OF THE PROPERTY. WITHOUT LIMITING
THE FOREGOING, IT IS UNDERSTOOD AND AGREED THAT SELLER MAKES NO WARRANTY OF
HABITABILITY, SUITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
SELLER MAKES NO REPRESENTATION OR WARRANTY REGARDING ENVIRONMENTAL MATTERS OR
THE AMERICANS WITH DISABILITIES ACT OR STATE DISABILITIES LAWS, OR OTHER
REPRESENTATION OR WARRANTY REGARDING THE PROPERTY, THE CONDITION THEREOF, THE
SUITABILITY OF THE PROPERTY FOR ANY PARTICULAR USE, OR OTHERWISE.
BUYER REPRESENTS AND WARRANTS TO SELLER THAT BUYER HAS KNOWLEDGE AND
EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS THAT ENABLE BUYER TO EVALUATE THE
MERITS AND RISKS OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. FURTHERMORE,
BUYER ACKNOWLEDGES THAT IT IS NOT IN A DISPARATE BARGAINING POSITION RELATIVE TO
SELLER WITH RESPECT TO THIS AGREEMENT.
9. CONDITIONS PRECEDENT TO CLOSING. (a) The obligation of Seller to
consummate the transaction contemplated by this Agreement is subject to the
fulfillment or waiver of each of the following conditions:
(i) COMPLIANCE WITH REPRESENTATIONS, WARRANTIES AND COVENANTS.
All obligations of Buyer under this Agreement shall have been fully
performed and complied with, and no event shall have occurred or
condition shall exist which would, upon the Closing Date or upon the
giving of notice and/or passage of time, constitute a breach or default
by Buyer hereunder.
(ii) PROXY CONSENT; GOVERNMENTAL REQUIREMENTS. Seller shall
have received the Proxy Consent. All approvals, consents and/or notices
required to be obtained and/or delivered pursuant to all applicable
Governmental Requirements shall have been obtained and/or delivered in
accordance with such Governmental Requirements.
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(iii) RELATED SELLER AGREEMENTS. The transactions described in
the Related Seller Agreements shall close concurrently with the closing
of the transaction described in this Agreement; provided, however, this
condition shall not apply if Seller defaults in its obligation to close
such Related Seller Agreements.
Notwithstanding the foregoing, upon satisfaction of the preceding conditions and
the conditions to Seller's obligation to close the transactions described in the
Related Seller Agreements, Seller shall be obligated to close the transaction
described in this Agreement and the Related Seller Agreements even if the
conditions to the closing of the transactions described in the Related Affiliate
Agreements are not satisfied. Seller agrees to undertake in good faith to obtain
the Proxy Consent and satisfy all Governmental Requirements applicable to
Seller.
(b) The obligation of Buyer to consummate the transaction contemplated
by this Agreement is subject to the fulfillment or waiver of each of the
following conditions:
(i) RELATED SELLER AGREEMENTS AND RELATED AFFILIATE
AGREEMENTS. Each of the transactions described in the Related Seller
Agreements and the Related Affiliate Agreements shall close
concurrently with the Closing; provided, however, if the conditions set
forth in the preceding subsection (a) and to Seller's obligation to
close the transactions described in the Related Seller Agreements are
satisfied, Seller shall be obligated, at Buyer's election, to close the
transactions described in this Agreement provided there is a concurrent
closing of the Related Seller Agreements.
(ii) COMPLIANCE WITH REPRESENTATIONS, WARRANTIES AND
COVENANTS. All obligations of Seller under this Agreement shall have
been fully performed and complied with, and no event shall have
occurred or condition shall exist which would, upon the Closing Date or
upon the giving of notice and/or passage of time, constitute a breach
or default by Seller hereunder.
(iii) PROXY CONSENT; GOVERNMENTAL REQUIREMENTS. Seller shall
have received the Proxy Consent. All approvals, consents and/or notices
required to be obtained and/or delivered pursuant to all applicable
Governmental Requirements shall have been obtained and/or delivered in
accordance with such Governmental Requirements.
(iv) FINANCING. Lender shall provide financing for the
Property in the amount and on the terms and conditions set forth in the
Commitment, subject to the satisfaction by Buyer of its obligations
under the Commitment.
(v) LITIGATION. No suits, actions, proceedings or
investigations shall be pending or threatened against or involving
Seller which could result in a material adverse effect on Seller's
ability to consummate the transaction contemplated by this Agreement,
or which challenges the validity of the Proxy Consent.
Buyer agrees to cooperate in good faith in assisting Seller with obtaining the
Proxy Consent and agrees to undertake in good faith to satisfy all Governmental
Requirements applicable to Buyer.
11
(c) If this Agreement fails to close as a result of a breach by Buyer
of any of its representations, warranties or obligations set forth in this
Agreement, such failure shall not limit or affect the Lessee's obligations under
the Lease and the Additional Lease Documents.
(d) If this Agreement fails to close as a result of a breach by Seller
of any of its representations, warranties or obligations set forth in this
Agreement, or because of the failure to satisfy the conditions precedent set
forth in this Section 9, such failure shall not limit or affect the Lessee's
obligations to Seller under the Lease and the Additional Lease Documents.
10. DEFAULT AND REMEDIES. (a) In the event of a breach by Buyer of any
of its representations, warranties or obligations set forth in this Agreement,
and/or in the event that all of the conditions to Buyer's obligation to close
either have been satisfied or would be satisfied at Closing and Buyer fails to
close its purchase of the Property, Seller shall be entitled to seek specific
performance of Buyer's obligations under this Agreement, terminate this
Agreement, and/or recover as damages Seller's out-of-pocket costs and expenses
incurred in connection with the transaction contemplated by this Agreement,
including, without limitation, attorneys' fees and expenses.
(b) In the event of a breach by Seller of its representations,
warranties or obligations set forth in this Agreement, and/or in the event that
all conditions to Seller's obligation to close either have been satisfied or
would be satisfied at Closing and Seller fails to close its sale of the Property
hereunder, Buyer, as its exclusive remedy, may either terminate this Agreement
or seek specific performance of Seller's obligations under this Agreement.
11. CONDEMNATION. In the event any condemnation or eminent domain
proceeding is initiated or completed with respect to the Property prior to the
Closing Date, Buyer shall not have the right to terminate this Agreement;
provided, however, at Closing, Seller shall assign to Buyer its interest in and
to any proceeds resulting from such condemnation or eminent domain proceeding.
Prior to Closing, Seller agrees to consult in good faith with Buyer during the
pendency of any such proceeding, but Buyer's rights in and to the Property with
respect to any such proceedings shall be subject to, and the resulting proceeds
shall be distributed in accordance with, the terms and conditions of the Lease.
12. CASUALTY. In the event of any fire or other casualty to the
Property prior to the Closing Date, Buyer shall not have the right to terminate
this Agreement; provided, however, at Closing, Seller shall assign to Buyer its
interest in and to any insurance proceeds resulting from such fire or casualty.
Prior to Closing, Seller agrees to consult in good faith with Buyer with respect
to the negotiation of any insurance settlements, but Buyer's rights in and to
the Property as a result of any such casualty shall be subject to, and the
resulting insurance proceeds shall be distributed in accordance with, the terms
and conditions of the Lease.
13. LIMITATIONS ON LIABILITY. Notwithstanding anything to the contrary
provided in this Agreement or in any other document or instrument to be executed
and delivered as contemplated by this Agreement in connection with the sale of
the Property by Seller to Buyer, including, without limitation, the Special
Warranty Deed, and without limiting the provisions of Section 14.R of this
12
Agreement, it is specifically understood and agreed, such agreement being a
primary consideration for the execution of this Agreement by Seller and Buyer,
that:
(i) there shall be absolutely no personal liability on the
part of any partner (or any partner of any partner) of Seller, any
shareholder, director, officer or employee of a partner (or any partner
of any partner) of Seller or its Affiliates with respect to any of the
terms, covenants and conditions of this Agreement and the documents to
be executed and delivered as contemplated by this Agreement with
respect to the sale of the Property, including, without limitation, the
Special Warranty Deed;
(ii) Buyer waives all claims, demands and causes of action
against the partners (and the partners of the partners) of Seller and
the shareholders, officers, directors, employees and agents of the
partners (and the partners of the partners) of Seller and of its
Affiliates in the event of any breach by Seller of any of the terms,
covenants and conditions of this Agreement and the documents to be
executed and delivered as contemplated by this Agreement with respect
to the sale of the Property, including, without limitation, the Special
Warranty Deed; and
(iii) the exculpation of liability set forth in this
subsection is absolute and without any exception whatsoever.
14. MISCELLANEOUS PROVISIONS.
A. NOTICES. All notices, consents, approvals or other
instruments required or permitted to be given by either party pursuant
to this Agreement shall be in writing and given by (i) hand delivery,
(ii) facsimile, (iii) express overnight delivery service or (iv)
certified or registered mail, return receipt requested, and shall be
deemed to have been delivered upon (a) receipt, if hand delivered, (b)
transmission, if delivered by facsimile, (c) the next business day, if
delivered by express overnight delivery service, or (d) the third
business day following the day of deposit of such notice with the
United States Postal Service, if sent by certified or registered mail,
return receipt requested. Attorneys may send or receive notices on
behalf of their respective clients. Notices shall be provided to the
parties and addresses (or facsimile numbers, as applicable) specified
below:
If to Seller: FFCA/PIP 1986 Property Company
c/o Perimeter Center Management Company
Xxxxxx X. Xxxxx, Esq.
Executive Vice President and General Counsel
00000 Xxxxx Xxxxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
13
If to Buyer: FJI Plaza Company LLC
00 Xxxx 000 Xxxxx
Xxxxxxx Xxxx, XX 00000
Attention: J Xxxxxxx Xxxxx
President
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
B. ASSIGNMENT. During the period commencing with the date of
this Agreement and ending on the Closing Date, without the prior
written consent of Seller:
(i) Buyer shall not assign or transfer any of their
rights or interests under this Agreement;
(ii) no membership interest in Buyer shall be sold,
assigned, transferred or conveyed; and
(iii) no more than 49% in the aggregate of the voting
stock of Lessee shall be sold, assigned, transferred or
conveyed, whether in one transaction or a series of
transactions,
whether voluntarily or involuntarily or by operation of law or
otherwise, including, without limitation, by merger, consolidation or
dissolution or a transfer of equity interests of Lessee or Buyer, as
applicable.
C. COMMISSION. Buyer and Seller represent and warrant to each
other that they have dealt with no real estate broker, agent, finder or
other intermediary in connection with the transaction contemplated by
this Agreement. Buyer and Seller shall indemnify and hold each other
harmless from and against any costs, claims or expenses, including
attorneys' fees, arising out of the breach of their respective
representations and warranties contained within this Section.
D. WAIVER AND AMENDMENT. No provisions of this Agreement shall
be deemed waived or amended except by a written instrument
unambiguously setting forth the matter waived or amended and signed by
the party against which enforcement of such waiver or amendment is
sought. Waiver of any matter shall not be deemed a waiver of the same
matter on any future occasion or any other matter.
E. CAPTIONS. Captions are used throughout this Agreement for
convenience of reference only and shall not be considered in any manner
in the construction or interpretation hereof.
F. SEVERABILITY. The provisions of this Agreement shall be
deemed severable. If any part of this Agreement shall be held
unenforceable, the remainder shall remain in full force and effect, and
such unenforceable provision shall be reformed by such court so as to
give maximum legal effect to the intention of the parties as expressed
therein.
G. CONSTRUCTION GENERALLY. This is an agreement between
parties who are experienced in sophisticated and complex matters
similar to the transaction contemplated by this Agreement and is
entered into by both parties in reliance upon the economic and legal
14
bargains contained herein and shall be interpreted and construed in a
fair and impartial manner without regard to such factors as the party
which prepared the instrument, the relative bargaining powers of the
parties or the domicile of any party. Seller and Buyer were each
represented by legal counsel competent in advising them of their
obligations and liabilities hereunder. Words of any gender used in this
Agreement shall be held and construed to include any other gender, and
words in the singular number shall be held to include the plural, and
vice versa, unless the context requires otherwise.
H. OTHER DOCUMENTS. Each of the parties agrees to sign such
other and further documents as may be appropriate to carry out the
intentions expressed in this Agreement.
I. ATTORNEYS' FEES. In the event of any judicial or other
adversarial proceeding between the parties concerning this Agreement,
the prevailing party shall be entitled to recover all of its attorneys'
fees and other costs in addition to any other relief to which it may be
entitled, including fees and expenses paid to the Title Company in
connection with this Agreement.
J. ENTIRE AGREEMENT. This Agreement, together with any other
certificates, instruments or agreements to be delivered hereunder,
constitute the entire agreement between the parties with respect to the
subject matter hereof, and there are no other representations,
warranties or agreements, written or oral, between Seller and Buyer
with respect to the subject matter of this Agreement.
K. FORUM SELECTION; JURISDICTION; VENUE; CHOICE OF LAW. Buyer
acknowledges that this Agreement was substantially negotiated in the
State of Arizona, the Agreement was signed by Seller in the State of
Arizona and delivered by Seller and Buyer in the State of Arizona and
there are substantial contacts between the parties and the transaction
contemplated herein and the State of Arizona. For purposes of any
action or proceeding arising out of this Agreement, the parties hereto
hereby expressly submit to the jurisdiction of all federal and state
courts located in the State of Arizona and Buyer consents that it may
be served with any process or paper by registered mail or by personal
service within or without the State of Arizona in accordance with
applicable law. Furthermore, Buyer waives and agrees not to assert in
any such action, suit or proceeding that it is not personally subject
to the jurisdiction of such courts, that the action, suit or proceeding
is brought in an inconvenient forum or that venue of the action, suit
or proceeding is improper. It is the intent of the parties hereto that
all provisions of this Agreement shall be governed by and construed
under the laws of the State of Arizona. To the extent a court of
competent jurisdiction finds Arizona law inapplicable with respect to
any provisions hereof, then, as to those provisions only, the laws of
the state where the Property is located, as applicable, shall be deemed
to apply. Nothing contained in this subsection shall limit or restrict
the right of Seller to commence any proceeding in the federal or state
courts located in the state where the Property is located to the extent
Seller deems such proceeding necessary or advisable to exercise
remedies available under this Agreement.
15
L. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original.
M. BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of Seller and Buyer and their respective
successors and permitted assigns, including, without limitation, any
United States trustee, any debtor-in-possession or any trustee
appointed from a private panel.
N. TIME OF THE ESSENCE. Time is of the essence with respect to
each provision of this Agreement; provided, however, whenever any
determination is to be made or action to be taken on a date specified
in this Agreement, if such date shall fall upon a Saturday, Sunday or
holiday observed by federal banks in the State of Arizona, the date for
such determination or action shall be extended to the first business
day immediately thereafter.
O. WAIVER OF JURY TRIAL AND CONSEQUENTIAL, SPECIAL, INDIRECT
AND PUNITIVE DAMAGES. SELLER AND BUYER HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY
WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION, PROCEEDING,
CLAIM OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST
THE OTHER OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF
OR IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT CONTEMPLATED
HEREIN OR RELATED HERETO. THIS WAIVER BY THE PARTIES HERETO OF ANY
RIGHT EITHER MAY HAVE TO A TRIAL BY JURY HAS BEEN NEGOTIATED AND IS AN
ESSENTIAL ASPECT OF THEIR BARGAIN. FURTHERMORE, BUYER AND SELLER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT THEY MAY HAVE
TO SEEK CONSEQUENTIAL, SPECIAL, INDIRECT AND PUNITIVE DAMAGES FROM THE
OTHER WITH RESPECT TO ANY AND ALL ISSUES PRESENTED IN ANY ACTION,
PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY ONE PARTY AGAINST THE
OTHER OR ITS SUCCESSORS WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN
CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREIN OR
RELATED HERETO. THE WAIVER BY BUYER AND SELLER OF ANY RIGHT THEY MAY
HAVE TO SEEK CONSEQUENTIAL, SPECIAL, INDIRECT AND PUNITIVE DAMAGES HAS
BEEN NEGOTIATED BY THE PARTIES HERETO AND IS AN ESSENTIAL ASPECT OF
THEIR BARGAIN.
P. NONRECORDATION. The parties agree that neither this
Agreement nor any notice or memorandum thereof shall be recorded in any
public records, and a breach of this provision shall constitute a
default by the breaching party.
Q. NO OFFER; EFFECTIVE DATE. The distribution of this
Agreement by Seller to Buyer shall not constitute an offer by Seller to
Buyer to convey the Property and shall not be binding upon and
enforceable against Seller until such time as Seller and Buyer have
both executed and acknowledged this Agreement. The "date of this
Agreement" shall be the date by which an original of this Agreement (or
original counterparts of this Agreement) have been executed and
delivered by both Seller and Buyer.
16
R. INDEMNIFICATION OF BUYER AND LESSEE. Seller agrees to
indemnify, hold harmless and defend Buyer and Lessee and their
directors, officers, shareholders, successors, assigns and Affiliates
(the "Buyer Indemnified Parties"), from and against any and all losses,
costs, claims, liabilities, damages and expenses, including, without
limitation, reasonable attorneys' fees, incurred by any of the Buyer
Indemnified Parties in connection with the solicitation of the Proxy
Consent, except to the extent of the gross negligence or intentional
misconduct of any of the Buyer Indemnified Parties. Notwithstanding the
foregoing provisions of this subsection R, Buyer and, by execution of
this Agreement below, Lessee, acknowledge and agree that:
(i) upon consummation of the transaction described in
this Agreement, Seller intends to liquidate and dissolve,
distribute all of its assets to its partners and terminate its
existence (the "Liquidation");
(ii) from and after the Liquidation, any and all
obligations of Seller under this subsection R will be
satisfied solely pursuant to that certain General Partners and
Limited Partnership Liability Insurance Policy to be issued to
Seller by American International Specialty Lines Insurance
Company prior to commencement of the proxy solicitation with
respect to the Proxy Consent (the "Policy"), which Policy will
provide $8,500,000.00 of aggregate liability insurance
coverage subject to a $100,000.00 per loss retention and name
Buyer and Lessee as additional insureds; and
(iii) from and after the Liquidation, Buyer and
Lessee's sole recourse under this subsection R shall be to the
Policy and Seller shall have no liability or obligation to
Buyer and Lessee pursuant to this subsection R or otherwise
under this Agreement and/or the documents and instruments to
be delivered by Seller at the Closing.
17
IN WITNESS WHEREOF, Seller and Buyer have entered into this Agreement
as of the date first above written.
SELLER:
FFCA/PIP 1986 PROPERTY COMPANY, a
Delaware general partnership
By Participating Income Properties 1986, L.P,
a Delaware limited partnership, its general
partner
By FFCA Management Company Limited
Partnership, a Delaware limited partnership,
its general partner
By Perimeter Center Management Company, a
Delaware corporation, managing general
partner
By /s/ Xxxxxx X. Xxxxx
------------------------------------
Xxxxxx X. Xxxxx
Executive Vice President and
General Counsel
BUYER:
FJI PLAZA COMPANY LLC, a Delaware
limited liability company
By FJI Management Inc.,
a Delaware corporation, managing member
By /s/ J Xxxxxxx Xxxxx
------------------------------------
J Xxxxxxx Xxxxx
President
Lessee is joining in the execution of this Agreement solely for the purpose of
acknowledging and agreeing to the terms of Section 14.R of this Agreement.
FLYING J INC., a Utah corporation
By /s/ J Xxxxxxx Xxxxx
------------------------------------
J Xxxxxxx Xxxxx
President
STATE OF ARIZONA }
}ss.
COUNTY OF MARICOPA }
The foregoing instrument was acknowledged before me on September 4,
1998 by Xxxxxx X. Xxxxx, Executive Vice President and General Counsel of
Perimeter Center Management Company, a Delaware corporation, the managing
general partner of FFCA Management Company Limited Partnership, a Delaware
limited partnership, general partner of Participating Income Properties 1986,
L.P., a Delaware limited partnership, general partner of FFCA/PIP 1986 Property
Company, a Delaware general partnership, on behalf of such partnership.
------------------------------------
Notary Public
My Commission Expires:
------------------------------------
STATE OF }
}ss.
COUNTY OF }
The foregoing instrument was acknowledged before me on September 4,
1998 by J Xxxxxxx Xxxxx, President of FJI Management Inc., a Delaware
corporation, managing member of FJI Plaza Company LLC, a Delaware limited
liability company, on behalf of the limited liability company.
------------------------------------
Notary Public
My Commission Expires:
------------------------------------
STATE OF }
}ss.
COUNTY OF }
The foregoing instrument was acknowledged before me on September 4,
1998 by J Xxxxxxx Xxxxx, President of Flying J Inc., a Utah corporation, on
behalf of the corporation.
------------------------------------
Notary Public
My Commission Expires:
------------------------------------
EXHIBIT A
PROPERTY
00000 Xxxxxx Xxxxxxxxxxx
Xxxxx, Xxxxxxx 00000
Silver Bow County
SCHEDULE I
RELATED AFFILIATE AGREEMENTS
Purchase Agreement dated as of the date of this Agreement between Participating
Income Properties II, L.P. and CFJ Plaza Company I LLC (FFCA Nos. 5001-0003,
0005, 0008, 0009, 0016 and 0017).
Purchase Agreement dated as of the date of this Agreement between Participating
Income Properties II, L.P. and CFJ Plaza Company II LLC (FFCA No. 5001-0004,
0006, 0007 and 0018).
Purchase Agreement dated as of the date of this Agreement between Participating
Income Properties II, L.P. and CFJ Plaza Company III LLC (FFCA No. 5001-0010,
0011 and 0012).
Purchase Agreement dated as of the date of this Agreement between Participating
Income Properties III Limited Partnership and FJI Plaza Company LLC (FFCA No.
5002-0003).
Purchase Agreement dated as of the date of this Agreement between Participating
Income Properties III Limited Partnership and CFJ Plaza Company I LLC (FFCA No.
5002-0001 and 0002).
SCHEDULE II
RELATED SELLER AGREEMENTS
Purchase Agreement dated as of the date of this Agreement between FFCA/PIP 1986
Property Company and CFJ Plaza Company I LLC (FFCA No. 5000-0016 and 0022).
Purchase Agreement dated as of the date of this Agreement between FFCA/PIP 1986
Property Company and CFJ Plaza Company II LLC (FFCA No. 5000-0009 and 0024).
Purchase Agreement dated as of the date of this Agreement between FFCA/PIP 1986
Property Company and CFJ Plaza Company III LLC (FFCA No. 5000-0002, 0003 and
0023).
Purchase Agreement dated as of the date of this Agreement between FFCA/PIP 1986
Property Company and Flying J Real Estate Enterprises Inc. (FFCA No. 5000-0010
and 0012).
