SCHEDULE OF OMITTED
AGREEMENTS OF SALE
The Company has also entered into three additional Agreements of Sale which are
substantially identical to the following Agreement of Sale in all material
respects except as to the Real Property, Purchase Price, and Additional Purchase
Price (as a percentage of the seller's cost of Mobile Home Inventory). Listed
below are the material details in which such documents differ from the document
filed as part of this exhibit.
Additional
Purchase Price Purchase Price *
Real Property
---------------------------------------------------------------------- ----------------- -----------------
Pinewood Mobile Home Park and Pleasant Living Mobile Home Park $10,700,000 100%
Brentwood Estates $ 1,250,000 80%
Casa del Mar Estates Mobile Home Park $ 3,850,000 100%
* as a percentage of the seller's cost of Mobile Home Inventory
(Community Acquisition and Development
National Agreement of Sale)
AGREEMENT OF SALE
(Sunlake Estates)
THIS AGREEMENT OF SALE made as of this 22nd day of August, 1997, by and
between COMMUNITY ACQUISITION AND DEVELOPMENT PARTNERSHIP, a Delaware joint
venture("BUYER") and XXXXXX CORPORATION OF DELAWARE, a Delaware corporation
("SELLER").
WHEREAS, SELLER is the fee simple owner of certain premises commonly
known as SUNLAKE ESTATES, located in Lake County, Florida, more particularly
described in Exhibit "A" attached hereto and made a part hereof (together with
all rights and easements appurtenant thereto and all permanent improvements,
fixtures and utility systems thereon, being hereinafter collectively referred to
as the "Real Property"); and
WHEREAS, SELLER desires to sell and BUYER desires to purchase the Real
Property and all personal property, including Mobile Home Inventory (the "Mobile
Home Inventory"), if any, and equipment described in the Schedule of Personal
Property attached hereto as Exhibit "B" and "B-1", respectively, and made a part
hereof (the "Personal Property"), under the terms and conditions set forth
herein (the aforesaid Real Property and Personal Property being hereinafter
collectively referred to as the "Property").
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, together with other valuable considerations, the receipt and sufficiency
of which is hereby acknowledged, XXXXXX agrees to sell and BUYER agrees to buy
the Property on and under the terms and conditions herein set forth.
1. SALE AND PURCHASE OF PROPERTY. XXXXXX agrees to sell and convey to
BUYER and XXXXX agrees to purchase:
(a) All of SELLER's right, title and interest in and to the
Real Property, together with all right, title and interest of SELLER in and to
any land lying in the beds of any streets, avenues, alleys or passages, open or
proposed, bounding or abutting the Real Property, and drainage rights
appurtenant to the Real Property, together with all right, title and interest,
if any, of SELLER, in and to any easements, rights of way or passageways
appurtenant to or benefiting the Real Property and free of all liens and
encumbrances except the Permitted Exceptions, as that term is defined in
Paragraph 4 hereof;
(b) All articles of personal property of whatsoever nature or
sort, if any, which are owned by SELLER and which, as of the date of this
Agreement of Sale, are attached or appurtenant to or used in connection with or
located in or upon the Real Property, and any additions thereto or replacements
thereof which may be made between the date of this Agreement of Sale and the
date of Closing hereunder (all of the foregoing being hereinafter collectively
referred to as the "Personal Property"), which Personal Property shall be
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conveyed by SELLER to BUYER at Closing by a quit-claim bill of sale; and
SELLER's interest in the Mobile Home Inventory shall be transferred by
certificates of title to the mobile homes listed on Schedule B-1 attached
hereto, if any.
XXXXXX's interest in the Real Property and the Personal Property are
hereinafter sometimes referred to collectively as the "Property".
2. CONSIDERATION. The total consideration to be paid by BUYER for the
Property shall be in the sum of FIVE MILLION SEVEN HUNDRED THOUSAND DOLLARS
($5,700,000.00) (the "Purchase Price").
3. PAYMENT OF CONSIDERATION. The Purchase Price shall be paid as
follows:
(a) Within five (5) calendar days of the Effective Date of
this Agreement of Sale, as that term is defined in paragraph 34 below, BUYER
shall deliver to Chicago Title Insurance Company, 000 X. Xxxxxx, 0xx Xxxxx, Xxx
Xxxxxxx, XX 00000 (the "Escrow Agent"), the sum of FIFTY THOUSAND DOLLARS
($50,000.00) which shall represent the xxxxxxx money deposit for the Property,
"Deposit". It is hereby agreed that the Deposit shall be in the form of a check
from BUYER and it shall be deposited by Escrow Agent in its Trust Account until
the expiration of the BUYER's Inspection Period (as hereinafter defined).
(b) The Escrow Agent shall, upon receipt from BUYER of a
complete and fully executed W-9 Reporting Form, deposit the Deposit (the
"Deposit") into an interest bearing money market account, which interest shall
accrue to BUYER's benefit unless BUYER defaults hereunder.
(c) BUYER shall pay Seller at Closing an additional purchase
price (the "Additional Purchase Price"), a sum equal to SELLER's cost of the
Mobile Home Inventory, including setups as set forth on Exhibit "B-1", if any.
(d) BUYER shall pay to SELLER at Closing by wire transfer of
immediately available federal funds at the office of the Escrow Agent the
balance of the Purchase Price and Additional Purchase Price, if any, however, at
least five (5) business days prior to Closing, SELLER shall have the option
("Seller's Stock Option") by written notice to BUYER to receive in lieu of cash,
operating partnership units ("AIOP Units") in Asset Investors Operating
Partnership, L.P., a Delaware limited partnership ("AIOP"), which are
convertible to stock in Asset Investors Corporation ("AIC"), based on the
greater of book value or market value of AIC stock as of the date of Closing,
for all or any portion of the net proceeds due Seller at Closing. The AIOP Units
and AIC stock shall be Rule 144 restricted stock for a period of one year from
the date of closing.
(e) If SELLER does not elect Seller's Stock Option as set
forth in paragraph 3(c) above, BUYER shall cooperate with SELLER or SELLER's
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Exchange Facilitator/Accommodator to achieve an IRS Code Section 1031 Exchange,
so long as BUYER incurs no additional costs or liability, nor is required to
take title to other property involved in such exchange, if any. The transaction
contemplated by this Agreement is not subject to or conditioned upon such
exchange being accomplished
4. TITLE INSURANCE.
A. Within five (5) days of the Effective Date of this
Agreement by SELLER, SELLER shall deliver to BUYER and Xxxxxx Agent a copy of
the owner's current title insurance policy, if any, together with copies of all
instruments recorded in the public records or otherwise encumbering the
Property, subsequent to the effective date of said Policy.
B. Within twenty (20) days of the Effective Date of this
Agreement, Escrow Agent shall, at SELLER's expense, deliver to BUYER and BUYER's
Attorney for approval, as hereinafter provided, with a copy provided to SELLER's
attorney, a preliminary owner's title binder for a title insurance policy,
together with copies of all exception documents referred to therein, to be
issued by an agent of Escrow Agent licensed and qualified to do business in the
state in which the Real Property is located (the "State"). The binder and policy
to be issued pursuant thereto shall be paid for by SELLER, shall be issued at
the minimum promulgated rate, and shall be in an amount equal to the amount of
the purchase price. The policy and binder shall be in a current ALTA standard
form "B", except that there shall be no exceptions unless agreed to by BUYER.
The policy shall insure marketable title.
C. BUYER shall have ten (10) days after receipt of the title
binder, together with copies of all exception documents referred to therein, and
the survey called for in paragraph 5 hereof to give written notice to SELLER or
SELLER's attorney of any objections by BUYER to the state of title (including
any matters shown on the survey which are unacceptable to BUYER). Failure of
BUYER to deliver a written notice of disapproval of the state of title to SELLER
or SELLER's attorney within said ten (10) day period shall be conclusive
evidence that BUYER has approved each and every matter contained in said
preliminary title report and shown on the survey and that BUYER will accept
title in that condition.
D. After due notice, SELLER shall have a reasonable time, not
to exceed thirty (30) days, to cure any title defects (and if necessary, the
Closing shall be delayed for that period). If SELLER fails to cure any title
defect as to which due notice is given, BUYER shall have the option to:
(a) terminate this Agreement, in which case BUYER
shall notify SELLER that BUYER will not proceed with the purchase, whereupon
this Agreement shall terminate and all parties shall be released from any
further obligations hereunder, except that BUYER shall be entitled to an
immediate refund of all monies paid in respect of the purchase price plus
accrued interest, if any, or
Page 3
(b) proceed under this Agreement and accept title to
the Real Property subject to such defects, in which case the Closing shall take
place on the later of the date set for Closing as hereinafter provided or on a
date mutually agreed upon by SELLER and BUYER which shall be within ten (10)
days from the date of such election by BUYER (the date finally set by the
parties hereto for the Closing shall be hereinafter referred to as the "Closing
Date").
X. Xxxxxx Agent or its agent, shall be in attendance at the
Closing and be in a position to issue the title policy upon recording the
appropriate documents and insure that SELLER has complied with all requirements
set forth under the applicable state statutes to extinguish any right of
purchase or rescission in favor of any tenants or homeowners association.
5. SURVEY. BUYER shall, at its expense, within twenty (20) days of the
Effective Date of this Agreement of Sale, obtain a current "as built" survey of
the Real Property. The survey must be acceptable and certified to BUYER and to
the Title Insurer insuring the Real Property so that the "survey" and "claims of
easements" exceptions can be removed from the title policy, and must be prepared
in accordance with the minimum requirements adopted by the agency or authority
regulation the preparation of surveys in the State in which the Real Property is
located. The survey shall locate all easements, streets, common area
improvements, building setback lines, and other manmade objects, excluding
manufactured homes and shall be super- imposed over an aerial photograph so as
to locate all manufactured homes and vacant spaces, if any. If the survey
discloses an encroachment or setback violation, this shall be deemed a defect in
title and paragraph 4 above, shall apply. The survey shall be dated and signed
by a registered and/or licensed land surveyor in the state in which the Real
Property is located. The surveyor's seal shall be affixed to the survey. The
surveyor's registration and/or license number shall be indicated thereon, and
the legal description of the Real Property shall be set forth on the survey. Any
other survey requirements in the Title Commitment shall also be complied with,
including a surveyor's certificate acceptable to the Title Insurer and counsel
for BUYER.
6. REPRESENTATIONS AND WARRANTIES.
A. To induce BUYER to enter into this Agreement, SELLER makes
the following representations and warranties, all of which shall be true and
correct continuously throughout the term of this Agreement, and which shall
survive the closing of title for a period of six (6) months from the Closing
Date (hereinafter defined):
(a) SELLER is the owner of the Property and has the
authority to execute and deliver this Agreement.
(b) To the best of SELLER's knowledge, there are no
special or other assessments levied against or relating to the Property and
SELLER does not know of any proposed assessments.
(c) No goods or services have been contracted for by
SELLER or furnished to the Real Property on SELLER's behalf which might give
rise to any mechanic's liens upon or affecting all or any part of the Real
Property.
Page 4
(d) There are no leases which affect the Real
Property except as set forth in the Rent Roll attached hereto as Exhibit "C" and
made a part hereof and the information contained on the Rent Roll is true and
correct; no rental agents, brokers or finders have any rights with regard to
such leases and there are no commissions payable in connection therewith; no
tenant has an option to purchase any part of the Property; and SELLER is the
assignee under each such lease and has the right to assign same to BUYER.
(e) SELLER has received no notice of any violations
of any law, ordinance, rule, order, regulation, code or requirement, including
any requirement contained in any hazard insurance policy covering the Property
or any part thereof or of any board of fire underwriters or other body
exercising similar functions, which are applicable to the Property or to any
part thereof or which are applicable to the use or manner of use, occupancy,
possession or operation of the Property.
(f) To the best of SELLER's knowledge, SELLER has
obtained and kept in good standing all governmental permits, licenses, and
approvals necessary for the operation of the Property as a manufactured housing
(mobile home) community, including, as applicable, all County Health Permits or
other applicable permits, State Department of Environmental Protection permits
and State HRS permits, and, to the best of SELLER's knowledge, there are no
material violations currently existing thereunder.
(g) A prospectus of the type required by the State
and local governmental agencies having jurisdiction over the Real Property (the
"Governing Laws"), has been provided to each tenant of the Property, if so
required by the Governing Laws. BUYER will not provide any prospectus to a
tenant of the Property prior to Closing unless both SELLER and BUYER have
approved such prospectus in writing.
(h) SELLER has not contracted for any services or
employment and has made no commitments or obligations therefor which will bind
BUYER as a successor in interest with respect to the Property except those
contracts listed in Exhibit "D" (the "Service Contracts"). With respect to the
Service Contracts: (i) amounts paid or payable thereunder shall be prorated
between the parties at the Closing and credits shall be given the parties as
appropriate to such prorations; and (ii) they can each be terminated upon thirty
(30) days written notice or less except (i) Garbage Removal Agreement, (ii)
Sludge Removal Agreement, (iii) CATV Agreement, and (iv) Laundry Leases.
(i) Except in the ordinary course of SELLER's
business, SELLER will not enter into any amendment to or modification of any of
the Leases prior to the Closing Date, which will reduce, forgive, or postpone
any rents or which would otherwise materially affect the value of the Property,
without BUYER's consent; no rents or other deposits are or will on the Closing
Date be held by SELLER, except only tenant security deposits and prepaid rents
Page 5
for the current month; and no commissions or other fees payable to any person,
entity or agent are due on the rentals collected or to be collected under the
Leases.
(j) Pending Closing hereunder, SELLER shall conduct
its business involving the Property in the ordinary course, and during said
period will:
(1) Refrain from entering into any contracts
or other commitments regarding the Property, other than in the ordinary and
usual course of business, without the prior written consent of BUYER;
(2) Continue to maintain and repair the
Property in at least the manner which SELLER has previously maintained and
repaired the Property, and SELLER will permit or commit no waste of the
Property;
(3) Keep in effect SELLER's existing
policies of public liability and hazard and extended coverage insurance insuring
the Property; and
(k) No tenant has been granted any rent concession
not reflected on the face of the copy of the lease for that tenant as provided
by SELLER to BUYER (other than as set forth on the Rent Roll).
(l) To the best of SELLER's knowledge no underground
storage tanks, hazardous substances, or contaminants subject to Federal, state
or local laws or regulation have been used, stored or located on, under or about
the Property in any manner contrary to applicable law and the Property is free
from environmental contamination by such hazardous substances which require
remediation except as set forth in any Phase I Environmental Audit Summary
attached hereto as Exhibit "E".
B. SELLER, by executing this Agreement, agrees to indemnify,
defend and save and hold BUYER harmless from and against any and all losses,
costs, expenses, liabilities, claims, causes of action, suits or other matters
by reason of any breach of the above representations and warranties. Such
indemnification includes, but is not limited to, costs and attorneys' fees and
expenses (including attorneys' fees and expenses on appeal) reasonably incurred
in connection with the defense of any claims against BUYER by any party arising
out of the above matters. The SELLER's foregoing indemnity obligation shall
survive Closing and delivery of the Special Warranty Deed hereunder for a period
of six (6) months. In addition, should any representation or warranty made by
SELLER hereunder be determined by BUYER at or before Closing to be incorrect and
BUYER opt to terminate this Agreement as a result thereof, SELLER shall be
obligated to reimburse BUYER promptly upon written demand for the costs of
BUYER's diligence review of the Property through the date of termination up to a
maximum of $25,000.00. This indemnity obligation shall survive Closing and
delivery of the Special Warranty Deed hereunder and shall include all attorneys'
fees and costs incurred in collection of all sums due from SELLER to BUYER
pursuant to this Indemnity, together with interest on said sums at the maximum
rate permitted by law through collection.
Page 6
C. In the event that any one or more of the representations or
warranties given by SELLER to BUYER in paragraph 6(a) above is/are determined by
BUYER between the Closing Date and the Effective Date, to be inaccurate, BUYER
shall give written notice to SELLER and SELLER shall have the option to: use its
best efforts to promptly cure the violation(s); reimburse BUYER for the
reasonable cost of cure (including all reasonable attorneys' fees, engineering
fees, or other applicable fees, costs and charges not to exceed $5,000.00); or
to contest BUYER's determination by written notice to BUYER, in which event
BUYER shall have the option to pursue the rights and remedies available to BUYER
pursuant to paragraph 20 of this Agreement.
7. TERMITE INSPECTION AND REPORT. Prior to the expiration of the
Inspection Period and at BUYER's expense, BUYER shall obtain a termite
certificate for the Property. Any infestation or damage therefrom found to be
existing shall be repaired in a reasonable time, not to exceed two (2) months
from the Closing Date, at SELLER's expense not to exceed $1,000.00. In the event
SELLER fails to make said repairs within said time period, BUYER shall have the
right to make said repairs and to collect the cost thereof (not to exceed
$1,000.00) from SELLER in the manner provided for a reproration pursuant to
paragraph 12 below. Any sums advanced by BUYER in this connection shall bear
interest at the highest lawful rate until paid. This paragraph shall survive the
closing of this transaction and delivery of the Special Warranty Deed.
8. BUYER'S INSPECTION PERIOD.BUYER shall have until the Closing Date
("BUYER's Inspection Period") commencing from the Effective Date, during which
time BUYER shall have the right to perform such due diligence evaluations as
BUYER may reasonably require in connection with its evaluation of the Property,
including, but not limited to, environmental, soils, flood plain, legal,
financial and engineering studies, all at BUYER's sole cost and expense. BUYER
hereby indemnifies and agrees to hold harmless and defend SELLER from and
against any and all losses or claims for property damage or personal injury or
any liability under any environmental or other law arising out of BUYER's
inspections and BUYER and/or any contractor of BUYER shall, prior to entry on
the Real Property hereunder, obtain casualty/liability insurance in an amount
satisfactory to SELLER, or to add SELLER to existing policies as a named
insured, and provide SELLER with a certificate of insurance evidencing that
SELLER is insured against any such loss. In the event that any inspection by
BUYER or any consultant engaged by BUYER in connection with BUYER's due
diligence results in any damage or disturbance to the Property or any other
damage or disturbance which Tenant requires SELLER to repair, BUYER shall cause
such consultant, or undertake itself, at no cost to SELLER, to repair promptly
such damage and restore such Property to the condition it was in immediately
prior to such inspection. If BUYER, in BUYER's reasonable judgment, believes the
results of its due diligence investigation to be unsatisfactory, BUYER may elect
to terminate this Agreement of Sale by written notice to SELLER delivered not
later than the last day of BUYER's Inspection Period. In such event, the Deposit
will be refunded to BUYER by Escrow Agent. If BUYER fails to deliver notice of
termination, as aforesaid, BUYER shall be deemed to have irrevocably waived its
right to terminate this Agreement of Sale pursuant to this paragraph 8, and
shall be obligated to pay to the Escrow Agent the Deposit described in paragraph
3(b). BUYER's Inspection Period shall be extended one (1) day for each day
SELLER fails to provide BUYER with the following:
Page 7
1. Current Rent Roll;
2. Monthly Financial Statements for the previous thirty-
six (36) months;
3. Community Prospectus or comparable State required
documents;
4. Mobile Home Inventory List;
5. Previous Title Insurance Policy;
6. Prior Survey;
7. Liability Listing (contingent and non-contingent);
8. Lists of all current and previous legal action;
9. Existing Environmental Phase I Report (if any);
10. True Copies of paid real estate and personal
property tax bills for the previous three (3) years;
11. True Copies of Rental Increase Notices for previous
three (3) years.
9. CONDITIONS PRECEDENT. The following are conditions precedent to
BUYER's obligation to close and consummate the transaction contemplated by this
Agreement. BUYER and only BUYER, may waive one or more of these conditions. In
the event that all of these conditions are not satisfied or fulfilled by the
Closing Date, BUYER may elect not to close this transaction, and in such event,
BUYER shall be entitled to the prompt return from Escrow Agent of the Deposit:
A. The representations and warranties of SELLER contained in
paragraph 6 above, and all other representations and warranties of SELLER
contained herein, shall be true and correct on the Closing Date. SELLER, by
having closed the sale of the Property, shall be deemed conclusively to have
certified that as of the Closing Date all such representations and warranties
were true and correct on the Closing Date.
B. There shall have been no material change in the physical
condition or the net operating income of the Property.
10. CLOSING. The sale and purchase transaction contemplated by this
Agreement shall be closed and consummated on or before September 30, 1997 (the
"Closing Date") unless otherwise mutually extended in writing by the SELLER and
BUYER. Closing shall be at the offices of SELLER's counsel or, at BUYER's
option, may be effected through the mail as coordinated by counsel for SELLER
and BUYER. Notice shall be given to Escrow Agent at least five (5) days in
advance of the date established by the parties for Closing. The Closing shall be
at 10:00 A.M., Eastern Standard Time on the Closing Date unless otherwise agreed
by the parties or their counsel. At Closing, SELLER and, as applicable, BUYER
shall execute and deliver the following documents in form acceptable to BUYER
and/or undertake the following:
A. All corporate or applicable partnership certifications,
resolutions and approvals necessary to evidence both the SELLER's and BUYER's
authority to enter into and consummate the transactions contemplated by this
Agreement.
Page 8
B. Special Warranty Deed from SELLER to BUYER conveying title
to the Real Property to BUYER free and clear of all liens, encumbrances and
matters other than the Permitted Exceptions.
C. Bill of Sale from SELLER to BUYER transferring the Personal
Property free and clear of all liens and encumbrances together with the original
Motor Vehicle Certificate of Title (properly endorsed and lien free) for each
mobile home unit and motor vehicle included in this purchase and sale.
D. Affidavit of No Liens by SELLER.
X. Xxxxxxxxx of Non-Foreign Status by SELLER.
F. Affidavit of Compliance by SELLER in conformity with
Governing Laws, if applicable.
G. Updated Certified rent roll dated and accurate as of the
Closing Date and certified by SELLER to BUYER.
H. Assignment from SELLER to BUYER assigning all of SELLER's
right, title and interest, to the extent it exists and without representation or
warranty, in and to the name by which the Property is commonly known, all
authorizations, permits and licenses relating to the operation of the Property
which are assignable by SELLER, if any, and all leases, contracts and other
items required to be assigned as set forth in this Agreement free and clear of
all liens and encumbrances except for the matters permitted in this Agreement;
all of which shall be assumed by BUYER effective from and after the Closing
Date. SELLER shall undertake all action, and execute all forms, required by all
governmental authorities and contract vendors to effect this assignment.
I. Assignment by SELLER, to the extent they exist and without
representation or warranty, of all currently existing and effective claims,
guaranties, warranties, indemnifications and all other rights, if any, which
SELLER may have against suppliers, laborers, materialmen, contractors, or
sub-contractors arising out of or in connection with the installation,
construction and maintenance of the Property; all of which shall be assumed by
BUYER effective from and after the Closing Date.
J. Assignment by SELLER, to the extent they exist and without
representation or warranty, to BUYER of all agreements, if any, which SELLER has
for access and utilities to service the Property; all of which shall be assumed
by BUYER effective from and after the Closing Date.
K. Closing Statement by SELLER and BUYER.
X. Xxxx other documents as are reasonably necessary to close
and consummate the purchase and sale transaction contemplated by this Agreement.
Page 9
M. SELLER shall deliver to BUYER all existing plans and
specifications relating to the improvements located upon the Property which are
in SELLER's possession or reasonably accessible to SELLER.
N. SELLER shall deliver and assign to BUYER all of SELLER's
right, title and interest, if any, in and to all licenses, permits, certificates
of occupancy, mobile home titles (for SELLER owned mobile home units, if any)
and such other comparable certificates or documents issued by the appropriate
governmental authorities with respect to the Property or any part thereof which
are legally assignable by SELLER, if any.
O. BUYER shall deliver to SELLER the adjusted cash portion of
the Purchase Price and authorize Escrow Agent's delivery of the Deposit to
SELLER. Said sum shall be paid, at SELLER's election, by locally drawn cashier's
check or Federal Reserve Bank wire transfer.
11. CLOSING COSTS. SELLER shall pay for the cost of any corrective
documents required for marketable and insurable title, transfer stamps, if any,
on the Special Warranty Deed and all costs associated with the issuance of the
title binder and policy. BUYER shall pay for the cost of recording the Special
Warranty Deed and survey. Each party shall bear its own attorneys' fees and
other professional costs, except as otherwise provided for herein.
12. PRORATIONS. Except as otherwise set forth in this Agreement, all
taxes and other operating expenses and revenue of the Property shall be prorated
as of the Closing Date. Taxes shall be prorated based upon the current year's
tax taking into account the maximum available discount. If the Closing takes
place and the current year's taxes are not fixed and the current year's
assessment is available, taxes shall be prorated based upon such assessment and
the prior year's millage. If the current year's assessment is not available,
then taxes shall be prorated on the prior year's tax taking into account the
maximum available discount. In the event the tax proration is incorrect on the
Closing Date because the property is reassessed for the tax year of the Closing
by the governmental agency having jurisdiction over the Property, subsequent to
the Closing Date, BUYER or SELLER shall be entitled, as the case may be, to a
reproration of such taxes upon written request made to the other party. SELLER
or BUYER shall remit the reproration adjustment amount requested within ten (10)
days of request therefor. In the event SELLER or BUYER fails to remit the
reproration amount requested within said ten (10) day period, the party seeking
reimbursement shall be entitled to all costs of collection, including all
attorneys' fees and costs incurred in collection thereof and the amount owing
shall bear interest at the highest lawful rate until paid, it being acknowledged
that this right shall survive Closing and delivery of the Special Warranty Deed.
Any rents received by SELLER in respect of the period after the Closing Date
shall be promptly remitted to BUYER. With regard to delinquent rents, if any,
BUYER shall not be held responsible for and BUYER shall not be required to
institute any proceedings whatsoever to collect such delinquent rents. However,
all rents received by BUYER attributable to periods prior to the Closing Date
shall be promptly remitted by BUYER to SELLER. All rents collected after the
Closing shall be first applied to current rents due, then to rents for periods
prior to the Closing Date unless they are clearly intended by the tenant to
apply for the period prior to Closing in which event they shall be promptly
remitted to SELLER. This obligation to remit shall survive the Closing and
delivery of the Special Warranty Deed. SELLER shall deliver to BUYER at the
Page 10
Closing, copies of such statements, invoices bills and receipts as shall be
requested by BUYER to enable BUYER to verify the accuracy of the amounts of any
prorations made pursuant to this paragraph. BUYER shall be credited at Closing
with all advance rentals and tenant security deposits previously paid to SELLER.
All prorations shall be made so that SELLER has the benefit of all income and
the burden of all expenses up to and including the Closing Date and BUYER has
the benefit of all income and the burden of all expenses after the Closing Date.
13. DELIVERY OF POSSESSION. At Closing, SELLER shall deliver to BUYER
possession of the Real Property free and clear of all leases, tenancies or
occupancy and subject only to the Permitted Exceptions.
14. FIRE OR OTHER CASUALTY. For purposes of this Agreement of Sale, a
"minor casualty" shall be any casualty occurring to the Real Property which
causes damages of less than One Hundred Fifty Thousand Dollars ($150,000.00) to
the Real Property. Any other casualty shall be a "major casualty". If, prior to
Closing hereunder, the Real Property is subjected to a major or minor casualty
of which SELLER becomes aware, SELLER shall give BUYER prompt written notice
thereof. If such casualty is a minor casualty, this Agreement of Sale shall
remain in full force and effect and the purchase contemplated herein shall be
concluded with no further adjustment, and at Closing SELLER shall assign,
transfer and set over to BUYER all of the right, title and interest of SELLER in
and to any awards that have been or that may thereafter be made for such
casualty, subject only to any rights of Tenant under each Lease. If such
casualty is a major casualty, the Real Property shall be considered a defective
parcel and BUYER shall have the right to terminate this Agreement whereupon the
Deposit will be refunded to the BUYER and the parties will be released from any
further liability hereunder.
15. EMINENT DOMAIN. For purposes of this Agreement of Sale, a "minor
condemnation" shall be any taking or condemnation by any body having the power
of condemnation or eminent domain which causes damages of less than One Hundred
Fifty Thousand Dollars ($150,000.00) to the Real Property. Any other taking or
condemnation shall be a "major condemnation". If prior to Closing hereunder the
Real Property is subjected to a major or minor condemnation of which SELLER
becomes aware, SELLER shall give BUYER prompt written notice thereof. If such
condemnation is a minor condemnation, this Agreement of Sale shall remain in
full force and effect and the purchase contemplated herein, less any interest
taken by eminent domain or condemnation, shall be effected with no further
adjustment, and at Closing, SELLER shall assign, transfer and set over to BUYER
all of the right, title and interest of SELLER in and to any awards that have
been or that may thereafter be made for such taking, subject only to rights of
Tenant under any Lease. If such condemnation is a major condemnation, the Real
Property subject to the major condemnation shall be considered a defective
parcel and BUYER shall have the right to terminate this Agreement whereupon the
Deposit will be refunded to the BUYER and the parties will be released from any
further liability hereunder
16. NOTICES. All notices and other communications under this Agreement
of Sale shall be in writing and shall be effectively given only if sent by
nationally recognized overnight courier service, postage prepaid, return receipt
requested, addressed as follows:
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To SELLER: Xxxxxx Corporation of Delaware
0000 Xxxx xx Xxx Xxxxxxxxx
Xxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000; (000) 000-0000
With a copy to: Xxxx Xxxxxxxxxx, Esq.
0000 Xxxx xx Xxx Xxxx, Xxx. 000
Xxxxxxxxxx, XX 00000
Fax: (000) 000-0000; (000) 000-0000
To BUYER: Community Acquisition and Development Partnership
Attn: Xxxxxx X. Xxxxxx
0000 XxXxxxxxx Xx., Xxx. B
Clearwater, FL 34619
FAX No. (000) 000-0000; (000) 000-0000
With a copy to: Xxxxx Xxxxxxx
Commercial Assets, Inc.
0000 Xxxxxxxx Xx., Xxx. 000
Xxxxxx, XX 00000
FAX No. (000) 000-0000; (000) 000-0000
or such other address as the party to be notified shall have designated to the
other party hereby by notice delivered in . accordance herewith. All such
notices shall be deemed given on the business day next following the day such
notice is accepted for delivery by the overnight courier service.
17. ASSIGNMENT OF NAME. At Closing, SELLER shall assign to BUYER,
without limitation, all of its right, title and interest in the name by which
the Property is commonly known hereinbefore referred to.
18. ASSIGNMENT. BUYER may assign its rights and interests under this
Agreement of Sale to AIOP or an affiliate to be formed by BUYER without first
obtaining the prior written consent of SELLER. Prior to the expiration of the
Inspection Period, BUYER will notify SELLER of the identity of any proposed
assignee of this Agreement of Sale.
19. SUPPLIES. Inventories of supplies, including but not limited to
paint, toilet tissue, soap, paper towels and all cleaning materials, if any
located on the Real Property on the Closing Date shall be transferred to BUYER
at no additional cost at the time of Closing and shall be covered by the Bill of
Sale.
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20. DEFAULT BY SELLER. If, under the provisions of this Agreement,
SELLER shall be obligated to complete the sale of the Property but fails to do
so within the applicable period provided for closing and such default continues
for a period of fifteen (15) days after written notice thereof from BUYER to
SELLER, or shall otherwise fail to perform any of the other obligations of
SELLER hereunder within the required time period, BUYER shall have the option,
to be exercised in its sole discretion, to: (a) apply to the Circuit Court of
the County where the Real Property is located to seek to have specific
performance under this Agreement and in such action shall have the right to
recover legally cognizable damages suffered by BUYER by reason of the delay in
BUYER's acquisition of the Property; or (b) sue SELLER for legally cognizable
damages sustained by BUYER by reason of the default of SELLER provided, however,
that in no event shall the damages recoverable exceed Fifty Thousand Dollars
($50,000.00); or (c) obtain the prompt return from Escrow Agent of the Deposit,
with interest, together with any other amounts due and owing to BUYER pursuant
to the terms of this Agreement, and thereafter terminate this Agreement.
21. DEFAULT BY BUYER. If, under the provisions of this Agreement, BUYER
shall be obligated to complete the purchase of the Property but fails to do so
within the applicable period provided for closing, and such default continues
for a period of fifteen (15) days after written notice thereof from SELLER to
BUYER, SELLER shall have the option, to be exercised in its sole discretion, to:
(a) apply to the Circuit Court of the County where the Real Property is located
to seek to have specific performance under this Agreement and in such action
shall have the right to recover legally cognizable damages suffered by SELLER by
reason of the delay in BUYER's acquisition of the Property; or (b) sue BUYER for
legally cognizable damages sustained by SELLER by reason of the default of BUYER
provided, however, that in no event shall the damages recoverable exceed Fifty
Thousand Dollars ($50,000.00); or (c) obtain the prompt release from Escrow
Agent of the Deposit, with interest, together with any other amounts due and
owing to SELLER pursuant to the terms of this Agreement, and thereafter
terminate this Agreement.
22. PROVISIONS WITH RESPECT TO ESCROW.
(a) The duties and obligations of Escrow Agent hereunder shall
be entirely administrative and ministerial and not discretionary. Escrow Agent
shall be under no responsibility in respect of the Deposit other than to
faithfully follow the instructions herein contained. Escrow Agent may
conclusively rely upon any instructions or documents delivered to it by BUYER
and SELLER and purportedly executed by a duly authorized officer or partner
thereof and shall be under-no duty of independent inquiry with respect to any
facts or circumstances recited therein. In the event that any notice or
instruction required to be delivered to Escrow Agent hereunder is not so
delivered, Escrow Agent may hold the Deposit, if any, pending delivery to Escrow
Agent of such instruction or notice and may exercise all of Escrow Agent's
rights and remedies hereunder or otherwise provided by law. The parties hereto
jointly and severally agree to reimburse and indemnify Escrow Agent for, and
hold Escrow Agent harmless against, any loss, liability or expense, including
but not limited to, reasonable attorney's fees, which may be asserted against
Escrow Agent or to which Escrow Agent may be exposed or which may be incurred by
reason of the acceptance of, or the performance of duties and obligations under
this Agreement of Sale, except arising from such Escrow Agent's gross negligence
or willful misconduct. In no event shall Escrow Agent be liable for any loss,
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cost or damage arising out of the performance of its duties hereunder, except
for acts of gross negligence or willful misconduct.
(b) In the event of any dispute or disagreement of Sale in
connection with the performance by Escrow Agent of its duties under this
Agreement of Sale, including, but not limited to, the respective rights of the
parties to the Deposit, Escrow Agent may consult with counsel selected and
employed by Escrow Agent, and Escrow Agent shall suffer no liability for any
action taken or suffered in good faith in accordance with the opinion of such
counsel, if any, provided, however, that the Deposit shall be disbursed in
accordance with the terms of this Agreement of Sale. Notwithstanding any other
provision of this Agreement of Sale, if any dispute or difference arises among
the parties or if any conflicting demand shall be made upon Escrow Agent, Escrow
Agent shall not be required to determine the same or take any action thereon.
Rather, Xxxxxx Agent may await settlement of the controversy by appropriate
legal proceedings; or Escrow Agent may, by written notice to the parties hereto,
initiate litigation to determine to whom the Deposit held under this Agreement
of Sale shall be delivered; or Escrow Agent may file suit in interpleader with
the proper court in the United States District Court for the Eastern District of
New York, for the purpose of having the respective rights of the parties
adjudicated. Escrow Agent, upon initiation of such suit, may deposit with the
court the Deposit and, upon giving notice thereof to the parties hereto, Escrow
Agent shall be fully released and discharged from all further obligations
hereunder with respect to the Deposit except arising from gross negligence or
willful misconduct of Escrow Agent.
23. ACCEPTANCE DATE. SELLER shall have until 5:00 P.M. (EST) on the
twenty-fifth (25th) day of August, 1997, within which to accept this Agreement.
In the event SELLER fails to accept this Agreement as of that time and date,
this Agreement shall be null and void and of no further effect unless extended
by BUYER whereupon the Closing Date shall be extended one day for each day the
acceptance of Seller is delayed by Seller.
24. BROKER'S COMMISSION. SELLER and BUYER each warrant that there are
no real estate or other brokers or finders of any type involved in this
transaction, if any, and each party shall indemnify and hold harmless the other
party from all claims or damages for any brokerage commissions and/or fees being
claimed arising out of this transaction resulting from the actions of the
defaulting party.
25. SURVIVAL OF AGREEMENT. The terms and conditions of this Agreement
which expressly so state shall survive the Closing hereof.
26. TIME IS OF THE ESSENCE. SELLER and BUYER acknowledge that time is
of the essence of this Agreement.
27 MODIFICATIONS. The parties acknowledge that this Agreement is the
entire agreement between the parties with respect to the subject matter hereof
and that this Agreement cannot be modified without a written agreement executed
by both parties.
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28 ATTORNEYS' FEES. In the event of any litigation between the parties
arising out of this Agreement, or the collection of any funds due BUYER or
SELLER pursuant to this Agreement, the prevailing party shall be entitled to
recover all costs incurred and reasonable attorneys' fees and expenses incurred.
As used herein and throughout this Agreement, the term "attorneys' fees" shall
be deemed to include all fees incurred whether by attorneys, paralegals, legal
assistants or law clerks whether in pretrial, trial, appeal, bankruptcy,
collection or declaratory proceedings. The provisions of this paragraph shall
survive Closing and delivery of the Special Warranty Deed.
29 EXHIBITS. In the event that any exhibit which is referred to in this
Agreement is not attached hereto at the time of execution of this Agreement by
SELLER and BUYER, SELLER shall promptly cause any such missing exhibit to be
prepared and submitted to BUYER for BUYER's approval within fifteen (15) days
from the Effective Date hereof. Upon approval of a given exhibit by BUYER, the
same shall be incorporated into this Agreement by written agreement executed by
SELLER and BUYER.
30 CONSTRUCTION. This Agreement has been negotiated between the
parties, each of whom have been represented by counsel. Accordingly, this
Agreement shall not be construed against either party as the drafter of the
Agreement in the event of any litigation with respect to it.
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31 RADON GAS Radon is a naturally occurring radioactive gas that, when
it has accumulated in a building in sufficient quantities, may present health
risks to persons who are exposed to it over time. Levels of radon that exceed
federal and state guidelines have been found in buildings in the State in which
the Real Property is located. Additional information regarding radon and radon
testing may be obtained from your county public health unit.
32 VENUE. Venue for any legal proceeding hereunder shall be in the
State in which the Real Property is located, except with respect to an
interpleader action pursuant to paragraph 3(a) above which the parties
acknowledge shall be instituted in Boston, Massachusetts, pursuant to said
paragraph.
33 WAIVER OF JURY TRIAL. SELLER and BUYER knowingly, voluntarily and
intentionally waive any right to trial by jury in respect to any litigation
arising out of, under or in connection with this Agreement or the transaction
described herein.
34 EFFECTIVE DATE. Unless otherwise set forth herein, the Effective
Date shall be the date this Agreement is executed by the SELLER, so long as
SELLER returns a fully executed duplicate original of this Agreement to the
BUYER, by either hand delivery or postmarked as of the date of the execution of
this Agreement by the SELLER. Each day of delay in returning the executed
Agreement to the BUYER shall likewise extend the Effective Date.
35 COUNTERPART EXECUTION. This Agreement may be executed in several
counterparts, each of which shall be fully effective as an original and all of
which together shall constitute one and the same instrument.
36 FACSIMILE. A facsimile of this Agreement or any portion hereof,
including the signature page of any party, shall be deemed an original for all
purposes.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
and seals the day and year indicated below.
WITNESSES: COMMUNITY ACQUISITION AND DEVELOPMENT
PARTNERSHIP, a Delaware joint venture
By: COMMUNITY ACQUISITION AND DEVELOPMENT
CORPORATION, a Delaware corporation
By:______________________________
Print Name:_____________________ Xxxxxx X. Xxxxxx, President
"BUYER"
Print Name:_____________________
As to BUYER Buyer's execution date: ______________
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XXXXXX CORPORATION OF DELAWARE, a
Delaware corporation
By:________________________________
Print Name:______________________ Xxxxxxx Xxxxxx, President
Print Name:______________________ "SELLER"
As to SELLER
Seller's execution date____________
______________________________ of ________________________________
joins in this Agreement of Sale for the sole purpose of agreeing to act as
Escrow Agent and to be legally bound to hold the Deposit in accordance with the
provisions in Paragraphs 3(a) and 22 hereof.
CHICAGO TITLE INSURANCE COMPANY
By:________________________
____________________
As Escrow Agent
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