EXHIBIT 10.30
FINAL
PURCHASE AND SALE AGREEMENT
This ___ day of March, 2006
1. PARTIES AND MAILING ADDRESSES
Quaker Fabric Corporation of Fall River, a Massachusetts corporation,
hereinafter called SELLER, agrees to SELL
and
Strictly Realty LLC, a Massachusetts limited liability company, hereinafter
called BUYER, agrees to BUY, upon the terms hereinafter set forth, the
following described premises:
2. DESCRIPTION
The land with the building thereon, known as and numbered 000 Xxxxxxxxxx
Xxxxxx, Xxxx Xxxxx, Xxxxxxxxxxxxx, as more particularly described in
Exhibit A attached hereto and incorporated herein.
3. BUILDINGS, STRUCTURES IMPROVEMENTS, FIXTURES
Included in the sale as a part of said premises are the buildings,
structures, and improvements now thereon, and all easements and
appurtenants thereto, and the fixtures and equipment used in connection
with the operation of the building and belonging to SELLER, including,
furnaces, heaters, heating equipment, oil and gas burners and fixtures
appurtenant hereto, hot water heaters, plumbing and bathroom fixtures, and
electric and other lighting fixtures, but excluding therefrom all fixtures
and equipment (including looms) used by SELLER in its manufacturing
operations as set forth on Exhibit B ("Seller's Equipment").
4. TITLE DEED
Said premises are to be conveyed by a good and sufficient quitclaim deed
running to BUYER, or to the nominee designated by BUYER by written notice
to SELLER at least three (3) business days before the deed is to be
delivered as herein provided, and said deed shall convey a good and clear
record and marketable title thereto, free from encumbrances, except
(a) Provisions of existing building and zoning laws;
(b) Such taxes for the then current year as are not due and payable on the
date of the delivery of such deed;
6
(c) The matters referenced in Exhibit A; and
(d) Any liens for municipal betterments assessed after the date of this
Agreement.
Any matter relating to the performance of this Agreement that is the
subject of a title, practice or ethical standard of the Massachusetts
Conveyancers Association shall be governed by the provision of said
standard to the extent applicable.
5. PURCHASE PRICE
The agreed purchase price for said premises is One Million Four Hundred
Thousand and 00/100 Dollars ($1,400,000.00), of which
$ 10,000.00 have been paid to Lawyers Title Insurance Corporation
("Escrow Agent") as the deposit this day (subject to
collection) (" Initial Deposit"; prior to the second payment
referenced below, the "Deposit"),
$ 50,000.00 shall be paid prior to expiration of the Inspection Period
(as defined below) should BUYER elect to proceed with the
transaction (together with the Initial Deposit, the
"Deposit"), and
$1,340,000.00 are to be paid by wire transfer of immediately
available federal funds, or by certified or bank check from
a federal or state chartered bank at the time of delivery of
the deed in accordance with the terms of this Purchase and
Sale Agreement.
---------------
$ 1,400,000.00 TOTAL
6. TIME FOR PERFORMANCE; DELIVERY OF DEED
The delivery of the deed will take place at the offices of Xxxxxx Xxxxxx
Xxxxxxxxx Xxxx and Xxxx LLP, 00 Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx at 10
a.m. on ______________, 2006 [30 days following the Inspection Period]. It
is agreed that time is of the essence of this Agreement.
7. POSSESSION AND CONDITION OF PREMISES
Full possession of said premises is to be delivered at the time of the
delivery of the deed, said premises to be then in the same condition as
they are now, reasonable use and wear thereof excepted, except as otherwise
provided in Exhibit B. BUYER shall be entitled to inspect said premises
prior to the delivery of the deed in order to determine whether the
condition thereof complies with the terms of this clause.
7
8. EXTENSION TO PERFECT TITLE OR MAKE PREMISES CONFORM
If SELLER shall be unable to give title or to make conveyance, as herein
stipulated, or if at the time of the delivery of the deed the premises do
not conform with the provisions hereof, then, all payments with any
interest thereon made under this agreement shall be refunded and all other
obligations of the parties hereto shall cease and this agreement shall be
void and without recourse to the parties hereto, unless SELLER shall elect,
in its sole discretion, to use reasonable efforts to remove any defects in
title, or to make the said premises conform to the provisions hereof, as
the case may be, in which event SELLER shall give written notice thereof to
BUYER at or before the time for performance hereunder, and thereupon the
time for performance hereof shall be extended for a period of thirty days.
Notwithstanding the foregoing, SELLER shall cause any mortgages and other
voluntary monetary encumbrances encumbering the premises to be discharged
at the Closing.
9. FAILURE TO PERFECT TITLE OR MAKE PREMISES CONFORM
If at the expiration of the extended xxxx XXXXXX shall have failed so to
remove any defects in title, or make the premises conform, as the case may
be, all as herein agreed, or if at any time during the period of this
Agreement or any extension thereof, the holder of a mortgage on said
premises shall refuse to permit the insurance proceeds, if any, to be used
for such purposes, then any payments made under this Agreement with any
interest thereon shall be forthwith refunded to BUYER and all other
obligations of the parties hereto shall cease and this Agreement shall be
void without recourse to the parties hereto.
10. BUYER'S ELECTION TO ACCEPT TITLE
In addition to BUYER's rights under the provisions of Sections 8 and 9
above, BUYER shall have the election, at either the original or any
extended time for performance, to accept such title as SELLER can deliver
to the said premises in their then condition and to pay therefore the
purchase price without deduction, in which case SELLER shall convey such
title, except that in the event of such conveyance in accord with the
provisions of this clause, if the said premises shall have been damaged by
fire or casualty insured against, then SELLER shall, unless SELLER has
previously restored the premises to their former condition, either:
(a) pay over or assign to BUYER, or delivery of the deed, all
amounts recovered or recoverable on account of such insurance,
less any amounts reasonably expended by SELLER for any partial
restoration, or
(b) if a holder of a mortgage on said premises shall not
permit the insurance proceeds or a part thereof to be used to
restore the said premises to their former condition or to be so
paid over or assigned, give to BUYER a credit against the
purchase price, on delivery of the deed, equal to said amounts so
recovered or recoverable and retained by the holder of the said
mortgage less any amounts reasonably expended by SELLER for any
partial restoration.
8
11. ACCEPTANCE OF DEED
The acceptance of a deed by BUYER or its nominee as the case may be, shall
be deemed to be a full performance and discharge of every agreement and
obligation herein contained or expressed, except such as are, by the terms
hereof, to be performed after the delivery of said deed.
12. USE OF MONEY TO CLEAR TITLE
To enable SELLER to make conveyance as herein provided, SELLER may, at the
time of delivery of the deed, use the purchase money or any portion thereof
to clear the title of any or all encumbrances or interests, provided that
all instruments so procured are either recorded simultaneously with the
delivery of said deed or thereafter consistent with customary Massachusetts
conveyancing practice.
13. INSURANCE
Until the delivery of the deed, the SELLER shall maintain insurance on said
premises as follows:
Type of Insurance Amount of Coverage
Fire and Extended Coverage as presently insured.
14. ADJUSTMENTS
Water and sewer use charges and taxes for the then current fiscal year
shall be apportioned, as of the day of performance of this Agreement and
the net amount thereof shall be added to or deducted from, as the case may
be, the purchase price payable by BUYER at the time of delivery of the
deed. Interest on the Deposit shall be credited to BUYER, unless the
Deposit is retained by SELLER under the provisions of Section 18 below, in
which event the Deposit with interest thereon shall be paid to SELLER.
SELLER shall be responsible for the payment of Massachusetts deed excise
stamps. The parties shall share equally the expense of the Escrow Agent.
15. ADJUSTMENT OF UNASSESSED AND ABATED TAXES
If the amount of said taxes is not known at the time of the delivery of the
deed, they shall be apportioned on the basis of the taxes assessed for the
preceding fiscal year, with a reapportionment as soon as the new tax rate
and valuation can be ascertained; and, if the taxes which are to be
apportioned shall thereafter be reduced by abatement, the amount of such
abatement, less the reasonable cost of obtaining the same, shall be
apportioned between the parties, provided that neither party shall be
obligated to institute or prosecute proceedings for an abatement unless
herein otherwise agreed.
9
16. BROKER
SELLER and BUYER each represents to the other that it has not dealt with
any broker or agent in connection with this transaction, except for Xxxxxxx
Xxxxxx of Xxxxxx & Company and Lincoln Property Company ("Broker"). Each
party hereby indemnifies and holds harmless the other party from all loss,
cost and expense (including reasonable attorneys' fees) arising out of a
breach of its representation or undertaking set forth in this paragraph.
SELLER shall be responsible for any commission payable to Xxxxxxx Xxxxxx of
Xxxxxx & Company, and Xxxxxxx Xxxxxx of Xxxxxx & Company shall be solely
responsible for any commission payable to Lincoln Property Company,
pursuant to separate written agreements among the parties. The provisions
of this paragraph shall survive the delivery of the deed or the termination
of this agreement.
17. DEPOSIT
Escrow Agent shall hold the Deposit accordance with the terms and
provisions of this Agreement, subject to the following:
17.1. Obligations. Escrow Agent undertakes to perform only such duties
as are expressly set forth in this Agreement and no implied duties or
obligations shall be read into this Agreement against Escrow Agent.
17.2. Reliance. Escrow Agent may act in reliance upon any writing or
instrument or signature which it, in good faith, believes, and any
statement or assertion contained in such writing or instrument, and
may assume that any person purporting to give any writing, notice,
advice or instrument in connection with the provisions of this
Agreement has been duly authorized to do so. Escrow Agent shall not be
liable in any manner for the sufficiency or correctness as to form,
manner and execution, or validity of any instrument deposited in
escrow, nor as to the identity, authority, or right of any person
executing the same, and Escrow Agent's duties under this Agreement
shall be limited to those provided in this Agreement.
17.3. Indemnification. Unless Escrow Agent discharges any of its
duties under this Agreement in a negligent manner or is guilty of
willful misconduct with regard to its duties under this Agreement,
SELLER and BUYER shall indemnify Escrow Agent and hold it harmless
from any and all claims, liabilities, losses, actions, suits or
proceedings at law or in equity, or other expenses, fees, or charges
of any character or nature, which it may incur or with which it may be
threatened by reason of its acting as Escrow Agent under this
Agreement; and in such connection SELLER and BUYER shall indemnify
Escrow Agent against any and all expenses including reasonable
attorneys' fees and the cost of defending any action, suit or
proceeding or resisting any claim in such capacity.
17.4. Disputes. If the parties (including Escrow Agent) shall be in
disagreement about the interpretation of this Agreement, or about
their respective rights and obligations, or the propriety of any
action contemplated by Escrow Agent, or the application of the
Deposit, Escrow Agent shall hold the Deposit until the receipt of
written instructions from both SELLER and BUYER, or, in the absence of
such agreement, a final order of a court of competent jurisdiction. In
10
addition, in any such event, Escrow Agent may, but shall not be
required to, file an action in interpleader to resolve the
disagreement. Escrow Agent shall be indemnified for all costs and
reasonable attorneys' fees in its capacity as Escrow Agent in
connection with any such interpleader action and shall be fully
protected in suspending all or part of its activities under this
Agreement until a final judgment in the interpleader action is
received.
17.5. Counsel. Escrow Agent may consult with counsel of its own choice
and have full and complete authorization and protection in accordance
with the opinion of such counsel. Escrow Agent shall otherwise not be
liable for any mistakes of fact or errors of judgment, or for any acts
or omissions of any kind, unless caused by its negligence or willful
misconduct.
18. BUYER'S DEFAULT; DAMAGES
If BUYER shall fail to fulfill BUYER'S agreements herein prior to or as of
the closing, the Deposit made hereunder by BUYER shall be retained by
SELLER as liquidated damages and forfeiture of the Deposit shall be
SELLER'S exclusive remedy at law and in equity for any default by BUYER
prior to or as of the closing. The provisions of this clause shall survive
the delivery of the deed and shall supersede any agreement, obligation or
legal rights of the parties that are contrary to the liquidation of damages
provisions hereof. In the event SELLER breaches or fails, without legal
excuse, to complete the sale of said premises or to perform its obligations
under this agreement, BUYER may, as its sole remedies therefor, either (a)
terminate this agreement, and receive a return of the Deposit hereunder
with any interest thereon, or (b) bring an action for specific performance
filed within thirty days following such breach.
19. LIABILITY OF TRUSTEE, SHAREHOLDER, BENEFICIARY
If SELLER or BUYER executes this Agreement in a representative or fiduciary
capacity, only the principal or the estate represented shall be bound, and
neither SELLER or BUYER so executing, nor any shareholder or beneficiary of any
trust, shall be personally liable for any obligation, express or implied,
hereunder.
20. NO WARRANTIES OR REPRESENTATIONS
BUYER acknowledges that BUYER has not been influenced to enter into this
transaction nor has BUYER relied upon any warranties or representations
made by SELLER. The provisions of this clause shall survive the delivery of
the deed.
11
21. CONSTRUCTION OF AGREEMENT; MISCELLANEOUS
This instrument, executed in multiple counterparts, is to be construed as a
Massachusetts contract, is to take effect as a sealed instrument, sets
forth the entire contract between the parties, supersedes all prior
agreements between SELLER and BUYER, is binding upon and inures to the
benefit of the parties hereto and their respective heirs, devisees,
executors, administrators, permitted successors and assigns, and may be
canceled, modified or amended only by a written instrument executed by both
SELLER and BUYER. This agreement shall not be assignable by BUYER. BUYER
shall not record or file this agreement, or a copy thereof, in or with the
public records in which deeds are recorded or filed. If BUYER record or
file this Agreement, the same shall constitute a default of BUYER
hereunder. The captions and marginal notes are used only as a matter of
convenience and are not to be considered a part of this Agreement or to be
used in determining the intent of the parties.
22. NOTICES
Any notice required or desired hereunder shall be given in writing and
shall be deemed duly delivered when deposited with a recognized overnight
courier service, addressed as follows:
(a) In the case of notice to SELLER:
Quaker Fabric Corporation of Fall River
000 Xxxxxxxx Xxxxxx
Xxxx Xxxxx, XX 00000-0000
Attention: Xxxxxxx X. Xxxxxx, Esq., General Counsel
Fax Number: (000) 000-0000
with a copy to:
Xxxxxx Xxxxxx Xxxxxxxxx Xxxx and Xxxx LLP
00 Xxxxx Xxxxxx
Xxxxxx, XX 00000
Xxxxxxxxx X. Xxxxxxx, Esq.
Fax Number: (000) 000-0000
12
(b) In the case of notice to BUYER:
Strictly By the Book, Inc.
00 Xxxxxxxx Xxxxxxxxx
X.X. Xxx 000 Xxxxxxxxxxx, XX 00000 Attn: Xx. Xxxx Xxxxxxxx Fax
Number: (000) 000-0000
with a copy to:
c/o Xxxxxx X. Xxxxxxxxx, Esq.
Xxx Xxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Fax Number: (000) 000-0000
(c) In case of notice to ESCROW AGENT:
Lawyers Title Insurance Corporation
000 Xxxxxxx Xxxxxx, Xxxxx 000
Xxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxx
Fax Number: (000) 000-0000
23. INSPECTION PERIOD
BUYER shall have the period from the date of this agreement through 5:00 pm
on _____________, 2006 [60 days after execution of P&S] ("Inspection
Period") to review title, survey, permitting, environmental, and other due
diligence matters related to the Premises, and to obtain financing and
economic incentives on terms and conditions satisfactory to BUYER in its
sole discretion. All costs and expenses of this review and financing shall
be at the sole expense of the BUYER. Any damage done by BUYER or BUYER's
consultants shall be repaired by BUYER at BUYER's expense. BUYER hereby
agrees to defend, indemnify, and hold SELLER harmless from and against any
liability, loss, cost, or expense arising from such investigations. In no
event shall BUYER have the right to perform any intrusive testing of the
Premises without the consent of SELLER, which consent may be withheld by
SELLER in its sole discretion. BUYER shall have the right to terminate this
agreement by written notice to SELLER prior to the expiration of the
Inspection Period due to BUYER's dissatisfaction with such matters, in
BUYER's sole discretion, and upon such notice timely given, this agreement
shall be null and void and of no legal effect except for the immediate
return of the Initial Deposit hereunder, and for the indemnification
obligation of BUYER hereunder. If BUYER does not so terminate this
agreement prior to expiration of the Inspection Period, this agreement
shall remain in full force and effect, and BUYER shall have no further
right to terminate this agreement under the provisions of this Section 23.
13
24. SELLER'S CLOSING DOCUMENTS. At the Closing, SELLER shall deliver to BUYER:
(a) the Quitclaim Deed as provided in Section 4 herein;
(b) a parties in possession and mechanics' and materialmen's lien
affidavit in form and substance sufficient to remove the parties in
possession and mechanics lien exceptions from the standard ALTA title
insurance policy;
(c) Signed closing statement; and
(d) FIRPTA Affidavit executed by SELLER.
26. BUYER'S CLOSING DOCUMENTS. At the Closing, BUYER shall deliver to SELLER:
(a) Signed closing statement.
[End of text on page]
14
EXECUTED as a sealed instrument as of the day and year first above written.
SELLER: QUAKER FABRIC CORPORATION OF FALL RIVER
By:_______________________
Name:_____________________
Title:_______________________
BUYER: STRICTLY REALTY LLC
By:___________________________
Xxxx Xxxxxxxx, Member
ESCROW AGENT: LAWYERS TITLE INSURANCE CORPORATION
By:___________________________
Name:________________________
Title:_________________________
15
EXHIBIT A
LEGAL DESCRIPTION
000 Xxxxxxxxxx Xxxxxx
Xxxx Xxxxx, Xxxxxxxxxxxxx
A certain parcel of land together with all buildings, structures, and
improvements located thereon, at 000 Xxxxxxxxxx Xxxxxx in the City of Fall
River, County of Bristol, Commonwealth of Massachusetts, bounded and described
as follows:
BEGINNING AT A POINT, said point being the southeast corner of the premises
herein described, at a Massachusetts Highway Bound on the westerly sideline of
Interstate Route 195 and the northerly sideline of Quequechan Street; thence:
S 60(Degree) 42' 23" W a distance of 279.24 feet along the northerly
sideline of said Quequechan Street, to a stone
bound; thence, continuing in the same course
S 60(Degree) 42' 23" W a distance of 15.22 feet along the northerly
sideline of said Quequechan Street, to a tack set
in a lead plug; thence
N 29(Degree) 15' 22" W a distance of 594.00 feet by land now or formerly
of United Merchants and Manufacturers, Inc., to a
concrete bound; the last course being more or less
parallel to and 35.00 feet more or less westerly
of a 4 story granite mill building; thence
continuing in the same course
N 29(Degree) 15' 22" W a distance of 66.00 feet by land now or formerly
of United Merchants and Manufacturers, Inc., to a
point in the Quequechan River, thence;
N 60(Degree) 44' 39" E a distance of 127.03 feet to a point; thence
16
N 28(Degree) 47' 13" E a distance of 234.61 feet to a point on the
westerly sideline of Interstate Route 195;
The last two courses being in the Quequechan
River; thence
S 23(Degree) 17' 34" E a distance pf 237.87 feet to a Massachusetts
Highway Bound; thence
S 61(Degree) 25' 06" E a distance of 80.99 feet to a Massachusetts
Highway Bound; thence
S 23(Degree) 17' 34" E a distance of 481.44 feet to the POINT OF
BEGINNING
The last three courses being along the westerly
sideline of said Interstate Route 195.
Containing 5.08 acres, more or less, and being shown on a plan entitled:
"Subdivision Plan of Land in Fall River Massachusetts for United Merchants and
Manufacturers, Inc.", Scale 1" = 40', dated May 14, 1982, prepared by Xxxxxxxx
Engineering Corp., recorded with the Bristol County Registry of Deeds in Fall
River in Plan Book 71, Page 43. For reference to title, see deed dated April 27,
1984, recorded with said Deeds in Book 1498, Page 278.
Said premises are subject to the following:
1. Rights of upper and lower riparian owners in and to the waters of the
Quequechan River, and their natural flow.
2. Taking by the Commonwealth of Massachusetts for limited access state
highway (1-195), by instrument recorded with said Deeds in Book 792, Page
217.
3. Sewer easement as shown on plan entitled "Subdivision Plan of Land in Fall
River, Mass. for United Merchants and Manufacturers, Inc." dated May 24,
1984, recorded with said Deeds in Plan Book 71, Page 43.
4. Rights of the Watuppa Reservoir Company, to flow and overflow the insured
premises to the extent not released by Watuppa Reservoir Company pursuant
to corrective deed by Watuppa Reservoir Company to Xxxxx Xxxxx dated
January 28, 1909 and recorded with said Deeds in Book 142, Page 391 and a
deed by Watuppa Reservoir Company to Xxxxx Xxxxx dated April 17, 1902,
recorded with said Deeds in Book 86, Page 536.
17
5. Gates and fence rights of record, if applicable, as set forth in the
document recorded with said Deeds in Book 387, Page 137.
6. Sewer and drainage easement taking by the City of Fall River, set forth in
a document recorded with said Deeds in Book 809, Page 368.
7. Rights of the City of Fall River in drainage pipe or conduit, if now
applicable, as affected by license for same by Xxxxx Xxxxx as set forth in
instrument recorded with said Deeds in Book 221, Page 214.
8. Those matters disclosed on survey entitled "ALTA/ACSM Land Title Survey
Plan of Land in Fall River, Mass., Record Owner: Quaker Fabric Corporation,
Locus Address: 000 Xxxxxxxxxx Xxxxxx", dated December 14, 1989, last
revised October 26, 1990, prepared by Xxxxxxxxx Brothers, Inc.
9. Lease Agreement by and between Quaker Fabric Corporation of Fall River, as
Lessor, and Xxxxxx Marketing, Inc. d/b/a/ Xxxxxx Outdoor Communication, as
Lessee, dated August 10, 2000, recorded with said Deeds in Book 3863, Page
229.
10. Order of Conditions under the Massachusetts Wetlands Protection Act as
issued by the Fall River Conservation Commission in DEP File No. 24-230
dated October 28, 1993 and recorded with said Deeds in Book 2716, Page 63.
18
EXHIBIT B
---------
PROPERTY TO BE REMOVED BY SELLER
--------------------------------
Seller shall remove its machinery and equipment from the Premises and shall
repair any damage caused by such removal prior to Closing:
19
