Real Property: | 40 Allied Drive |
3.1 | Purchase Price. 5 |
3.2 | Deposit Money. 5 |
3.3 | Cash at Closing. 5 |
4.1 | Title Defects. 6 |
4.1.1 | Certain Exceptions to Title. 6 |
4.1.2 | Discharge of Title Objections. 7 |
4.2 | Title Insurance. 7 |
5.1 | Buyer’s Inspections and Due Diligence. 8 |
5.2 | Intrusive Testing. 8 |
5.3 | Termination of Agreement During Due Diligence Period. 9 |
5.4 | Property Sold “As Is”. 9 |
5.5 | Survival. 10 |
6.1 | Lease Rentals. 11 |
6.1.1 | Definition of “Rent”. 11 |
6.1.2 | Rents. 11 |
6.1.3 | Tenant Improvement Allowances. 11 |
6.2 | Real Estate and Personal Property Taxes and Other Fees and Assessments. 12 |
6.2.1 | Proration’s. 12 |
6.2.2 | Tax Protests; Tax Refunds and Credits. 12 |
6.3 | Property Operating Expenses and Estimated Payments of Tenant Operating Costs and Taxes. 13 |
6.4 | Tenant Deposits, Fees, Charges and Leasing Commissions. 13 |
6.5 | Closing Costs. 14 |
6.6 | Apportionment Credit. 15 |
7.1 | Closing Date. 15 |
7.2 | Title Transfer and Payment of Purchase Price. 15 |
7.3 | Seller’s Closing Deliveries. 15 |
7.4 | Buyer’s Closing Deliveries. 16 |
8.1 | Conditions to Seller’s Obligations. 17 |
8.2 | Conditions to Buyer’s Obligations. 17 |
8.3 | Waiver of Failure of Conditions Precedent. 18 |
8.4 | Approvals Not a Condition to Buyer’s Performance. 18 |
9.1 | Buyer’s Representations. 18 |
9.1.1 | Buyer’s Authorization. 18 |
9.1.2 | Buyer’s Financial Condition. 19 |
9.1.3 | Patriot Act. 19 |
9.2 | Seller’s Representations. 19 |
9.2.1 | Seller’s Authorization. 19 |
9.2.2 | Litigation. 19 |
9.2.3 | Rent Roll. 20 |
9.2.4 | Violations. 20 |
9.2.5 | Pending Condemnation. 20 |
9.2.6 | Property Documents. 20 |
9.2.7 | Patriot Act. 20 |
9.3 | General Provisions. 20 |
9.3.1 | No Representation as to Leases. 20 |
9.3.2 | Definition of “Seller’s Knowledge” and “Written Notice” to Seller. 20 |
9.3.3 | Seller’s Representations Deemed Modified. 21 |
9.3.4 | Notice of Breach; Seller’s Right to Cure. 21 |
9.3.5 | Survival; Limitation on Seller’s Liability. 22 |
10.1 | Buyer’s Covenants. 23 |
10.1.1 | Delivery of Reports. 23 |
10.2 | Seller’s Covenants. 23 |
10.2.1 | Contracts. 23 |
10.2.2 | Maintenance of Property. 23 |
10.2.3 | Walk-Through. 23 |
10.3 | Mutual Covenants. 24 |
10.3.1 | Publicity. 24 |
10.3.2 | Broker. 24 |
10.3.3 | Survival. 24 |
12.1 | Buyer’s Default. 25 |
12.2 | Seller’s Default. 25 |
13.1 | Condemnation. 25 |
13.1.1 | Right to Terminate. 25 |
13.1.2 | Assignment of Proceeds. 26 |
13.2 | Destruction or Damage. 26 |
13.3 | Effect of Termination. 27 |
13.4 | Waiver. 27 |
15.1 | Assignment. 27 |
15.2 | Designation Agreement. 27 |
15.3 | Survival/Merger. 28 |
15.4 | Integration; Waiver. 28 |
15.5 | Governing Law. 28 |
15.6 | Captions Not Binding; Exhibits. 28 |
15.7 | Binding Effect. 29 |
15.8 | Severability. 29 |
15.9 | Notices. 29 |
15.10 | Counterparts. 30 |
15.11 | No Recordation. 30 |
15.12 | Additional Agreements; Further Assurances. 30 |
15.13 | Construction. 31 |
15.14 | Business Day. 31 |
15.15 | Maximum Aggregate Liability. 31 |
15.16 | WAIVER OF JURY TRIAL. 31 |
15.17 | Electronic Signatures. 31 |
15.18 | Riders. 31 |
15.19 | Attorneys’ Fees. 32 |
15.20 | No Presumption Regarding Drafts. 32 |
15.21 | Submission Not An Offer. 32 |
3.1 | Purchase Price. The purchase price (the “Purchase Price”) to be paid by Buyer for the purchase of the Property is Thirty-Four Million and no/100ths Dollars ($34,000,000.00). |
3.2 | Deposit Money. Within three (3) business days from the Effective Date, Buyer shall deposit with Escrow Agent cash earnest money in the amount of One Million and no/100ths ($1,000,000.00) Dollars in immediately available funds by wire transfer to the Escrow Agent (the “Deposit”). The Deposit shall be held and delivered by Escrow Agent in accordance with the provisions of the escrow agreement attached hereto as Exhibit L. Except as otherwise set forth herein, the Deposit shall be applied against the Purchase Price on the Closing Date. Notwithstanding the foregoing to the contrary, instead of a cash Deposit, Buyer may, at its option, provide an irrevocable letter of credit, in form and substance satisfactory to Seller (“LOC Deposit”). If Buyer elects to provide the LOC Deposit instead of a cash Deposit and Buyer has not terminated this Agreement pursuant to Section 5.3(a) below, Buyer shall make payment of One Million and no/100ths Dollars ($1,000,000.00) in cash to the Escrow Agent on or before 5:00 PM Eastern on September 20, 2016, whereupon the Escrow Agent shall return the LOC Deposit to Buyer and the substituted cash payment shall become the Deposit. If Buyer fails to timely deliver immediately available U.S. federal funds pursuant to the immediately preceding sentence, then on September 21, 2016, Escrow Agent shall be entitled to draw on the Letter of Credit, and is irrevocably and unconditionally authorized and instructed by Buyer and Seller to draw on the Letter of Credit immediately, and the proceeds of the Letter of Credit shall be held and applied as the Deposit pursuant to this Agreement. |
3.3 | Cash at Closing. On the Closing Date, Buyer shall pay to Seller an amount equal to the Purchase Price (less the Deposit) in immediately available funds by wire transfer as more particularly set forth in Section 7.2, subject to the prorations and adjustments set forth in Article 6 or as otherwise provided under this Agreement, plus any other amounts required to be paid by Buyer at Closing. TIME IS OF THE ESSENCE FOR CLOSING TO OCCUR ON THE CLOSING DATE AND FOR ALL OTHER DATES AND OBLIGATIONS IN THIS AGREEMENT. |
4.1 | Title Defects. |
4.1.1 | Certain Exceptions to Title. |
4.1.2 | Discharge of Title Objections. |
4.2 | Title Insurance. At Closing, Buyer shall cause the Title Company to issue to Buyer an owner’s form title insurance policy in the form that is customary in the Commonwealth of Massachusetts in the amount of the Purchase Price (collectively, the “Owner’s Title Policy”), insuring as of the date and time of Closing that fee simple title to the Real Property is vested in Buyer, subject only to the Permitted Exceptions(excluding any Required Clearance Exceptions matters and other matters that may be agreed, in Seller’s sole discretion, to be removed by Seller). Buyer shall be entitled to request that the Title Company provide endorsements or amendments to the Owner’s Title Policy as Buyer may reasonably require, provided (a) such endorsements or amendments shall be at no cost to, and shall impose no additional liability on, Seller, and (b) Buyer’s obligations under this Agreement shall not be conditioned upon Buyer’s ability to obtain such endorsements or amendments and, if Buyer is unable to obtain such endorsements or amendments, Buyer shall nevertheless be obligated to proceed to close the Transaction without reduction of or set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of Buyer’s request. |
5.1 | Buyer’s Inspections and Due Diligence. Buyer, during the Due Diligence Period, shall conduct such Due Diligence as Buyer deems necessary or appropriate. Seller promptly shall make the Documents available to Buyer during normal business hours for Buyer’s inspection at the Real Property during the Due Diligence Period (and through Closing if this Agreement has not been terminated by Buyer during the Due Diligence Period). Upon reasonable prior notice from Buyer, Seller shall allow Buyer or Buyer’s Representatives reasonable access to the Real Property during the Due Diligence Period (and through Closing if this Agreement has not been terminated by Buyer during the Due Diligence Period) for purposes of non-intrusive inspection of the Real Property. The Property Manager and/or other representatives |
5.1 | Intrusive Testing. BUYER SHALL NOT CONDUCT OR ALLOW ANY PHYSICALLY INTRUSIVE TESTING OF, ON OR UNDER THE REAL PROPERTY WITHOUT FIRST OBTAINING SELLER’S WRITTEN CONSENT (TO BE GRANTED OR WITHHELD IN SELLER’S SOLE DISCRETION) AS TO THE TIMING AND SCOPE OF WORK TO BE PERFORMED AND, UPON REQUEST OF SELLER, ENTERING INTO AN ACCESS AND INSPECTION AGREEMENT IN A FORM ACCEPTABLE TO SELLER. BUYER’S BREACH OF THE FOREGOING PROHIBITION SHALL ENTITLE SELLER, AT ITS OPTION, IMMEDIATELY AND WITHOUT ANY CURE PERIOD, TO DECLARE THIS AGREEMENT TO BE TERMINATED AND TO RETAIN SUCH PORTION OF THE DEPOSIT AS IS NECESSARY TO COMPENSATE SELLER FOR ITS ACTUAL DAMAGES IN CONNECTION WITH SUCH BREACH. |
5.2 | Termination of Agreement During Due Diligence Period. |
(a) | If Buyer is not satisfied with the results of its Due Diligence during the Due Diligence Period, it may terminate this Agreement in its entirety for any reason whatsoever by giving Seller written notice thereof by no later than 5:00 p.m. Eastern Time on the last day of the Due Diligence Period. In the event of such termination, neither Seller nor Buyer shall have any liability hereunder except as provided in Section 5.3(b) below and except for those obligations which expressly survive the termination of this Agreement. |
(b) | Application of Deposit. |
(i) | In the event this Agreement is terminated by Buyer prior to the expiration of the Due Diligence Period, then the entire Deposit shall be immediately and fully refunded to Buyer. |
(ii) | In the event this Agreement is not terminated prior to the expiration of the Due Diligence Period, then the entire Deposit shall be non-refundable, except as otherwise provided in this Agreement, and shall be applied against the Purchase Price on the Closing Date. |
5.1 | Property Sold “As Is”. Buyer acknowledges and agrees that, except for Seller’s Warranties, (i) the Property is being sold, and Buyer shall accept possession of the Property on the Closing Date, “AS IS, WHERE IS, WITH ALL FAULTS”, with no right of setoff or reduction in the Purchase Price; (ii) none of the Seller Parties have or shall be deemed to have made any verbal or written representations, warranties, promises or guarantees (whether express, implied, statutory or otherwise) to Buyer with respect to the Property, any matter set forth, contained or addressed in the Documents (including, but not limited to, the accuracy and completeness thereof), the results of Buyer’s Due Diligence, including, without limitation, with respect to zoning, building codes, environmental Laws, the Real Property’s development, potential income, or expenses; and (iii) Buyer has confirmed (or will confirm during the Due Diligence Period) independently all information that it considers material to its purchase of the Property or the Transaction. Buyer specifically acknowledges that, except for Seller’s Warranties, Buyer is not relying on (and Seller and each of the other Seller Parties does hereby disclaim and renounce) any representations or warranties of any kind or nature whatsoever, whether oral or written, express, implied, statutory or otherwise, from Seller or any other Seller Parties, as to any matter whatsoever. Buyer further acknowledges and agrees that, except for Seller’s Warranties, Seller is under no duty to make any affirmative disclosures or inquiry regarding any matter which may or may not be known to Seller or any of the other Seller Parties, and Buyer, for itself and for its successors and assigns, hereby expressly waives and releases Seller and each of the other Seller Parties from any such duty that otherwise might exist. |
(a) | Any reports, repairs or work required by Buyer are the sole responsibility of Buyer, and Buyer agrees that there is no obligation on the part of Seller to make any changes, alterations or repairs to the Property or to cure any violations of Law or to comply with the requirements of any insurer. |
(b) | Except for Seller’s Warranties, Buyer, for Buyer and Buyer’s successors and assigns, hereby releases Seller and each of the other Seller Parties from, and waives all claims and liability against Seller and each of the other Seller Parties for or attributable to, the following: |
(i) | any and all statements or opinions heretofore or hereafter made, or information furnished, by the Seller Parties to Buyer or any of Buyer’s Representatives; and |
(ii) | any and all losses, costs, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever attributable to the Property, whether arising or accruing before, on or after the Closing Date and whether attributable to events or circumstances which have heretofore or may hereafter occur, including, without limitation, all losses, costs, claims, liabilities, expenses, demands and obligations with respect to the structural, physical, or environmental condition of the Property; |
(c) | Buyer acknowledges and agrees that the provisions of this Article 5 were a material factor in Seller’s acceptance of the Purchase Price and that while Seller has provided the Documents and cooperated with Buyer, Seller is unwilling to sell the Property unless Seller and the other Seller Parties are expressly released as set forth in Section 5.4(c). |
5.1 | Survival. Notwithstanding anything to the contrary herein, the provisions of this Article 5 shall survive the Closing and shall not be merged therein. |
6.1 | Lease Rentals. |
6.1.1 | Definition of “Rent”. |
6.1.2 | Rents. |
6.1.3 | Tenant Improvement Allowances. |
6.2 | Real Estate and Personal Property Taxes and Other Fees and Assessments. |
6.2.1 | Prorations. Real estate and personal property taxes for the Real Property assessed for the Tax Year in which Closing occurs shall be prorated based upon the actual number of days in such Tax Year, with Seller being responsible for that portion of such Tax Year occurring prior to 12:01 a.m. on the Closing Date and Buyer being responsible for that portion of such Tax Year occurring on and after 12:01 a.m. on the Closing Date. If, at Closing, the real estate and/or personal property tax rate and assessments for the Real Property have not been set for the Tax Year in which the Closing occurs, then the proration of such taxes shall be based upon the rate and assessments for the preceding Tax Year. Subject to any current tax contests, Seller shall pay all installments of real estate and/or personal property tax and special assessments for the Real Property due and payable before the Closing Date, and Buyer shall pay all installments of such real estate and/or personal property tax and special assessments for the Real Property due and payable on and after the Closing Date; provided, however, that Seller shall not be required by the foregoing to pay any installments of such amounts which have not been confirmed or which relate to improvements that have not been completed as of the date hereof. |
6.2.2 | Tax Protests; Tax Refunds and Credits. Seller shall have the right to continue and to control the progress of and to make all decisions with respect to any contest of real estate taxes, personal property taxes and/or special assessments for the Real Property assessed for (i) the Tax Year in which the Closing occurs and (ii) all Tax Years prior to the Tax Year in which the Closing occurs. Buyer shall have the right to control the progress of and to make all decisions with respect to any tax contest of real estate taxes and/or special assessments for the Real Property assessed for all Tax Years subsequent to the Tax Year in which the Closing occurs. All real estate tax and/or special assessment refunds and credits received after Closing with respect to the Real Property shall be applied in the following order of priority: first, to pay the costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with obtaining such tax refund or credit; second, apportioned between Buyer and Seller as follows: |
(a) | with respect to any refunds or credits attributable to real estate taxes and/or special assessments assessed for the Tax Year in which the Closing occurs, such refunds and credits shall be apportioned between Buyer and Seller in proportion to the number of days in such Tax Year that each party owned the Real Property (with title to the Real Property being deemed to have passed as of 12:01 a.m. on the Closing Date); |
(b) | with respect to any refunds or credits attributable to real estate taxes and/or special assessments assessed for any Tax Year prior to the Tax Year in which the Closing occurs, Seller shall be entitled to the entire refunds and credits; and |
(c) | with respect to any refunds or credits attributable to real estate taxes and/or special assessments assessed for any Tax Year after the Tax Year in which the Closing occurs, Buyer shall be entitled to the entire refunds and credits. |
6.3 | Property Operating Expenses and Estimated Payments of Tenant Operating Costs and Taxes. |
6.3.1 | All electricity, and other utility charges and estimated Operating Costs and Taxes described in the Leases for the Property shall be prorated as of 12:01 a.m. on the Closing Date. Seller shall pay all utility charges and operating expenses attributable to the Property before the Closing Date (except for those electricity and other utility charges and expenses payable directly by tenants to the providers thereof), and Buyer shall pay all electricity and other utility charges and operating expenses attributable to the Property on and after the Closing Date. When the Operating Costs described |
6.3.2 | Seller shall not assign to Buyer any deposits which Seller has with any of the utility services or companies servicing the Property, all of which, together with any amounts on deposit with governmental authorities in connection with development of or improvements to the Property, shall remain the property of Seller. Buyer shall arrange with such services and companies to have accounts opened in Buyer’s name beginning at 12:01 a.m. on the Closing Date. |
6.4 | Tenant Deposits, Fees, Charges and Leasing Commissions. Tenant deposits, and prorations for all fees and charges shall be calculated and paid at Closing. Seller shall give Buyer a credit against the Purchase Price in the aggregate amount of all cash tenant security deposits then held and not applied by Seller under the Leases. Any tenant security deposits in the form of a letter of credit or guaranty shall be assigned to Buyer at the Closing and the parties shall execute and deliver any applicable transfer form in connection therewith and Seller shall cooperate with Buyer in good faith to endeavor to effectuate transfers of all such letters of credit in favor of Buyer on the Closing Date or as soon as practicable thereafter. Seller shall be responsible for paying, or causing to be paid, all transfer fees to the extent applicable. If, after the Closing Date, but before any letter of credit has been assigned/re-issued to Buyer as the beneficiary thereunder, a letter of credit needs to be drawn down upon, Buyer shall prepare documents for signature by the Seller and Seller shall execute such documents required to effectuate such drawdown. Seller shall incur no liability whatsoever as a result of executing such documents, effectuating such drawdown and/or the presentation of the letter of credit for drawdown. Buyer shall indemnify, defend and hold Seller from any and all losses, costs, liens, claims, causes of action, liability, damages and expenses (including, without limitation, court costs and reasonable attorneys’ fees) incurred in connection with or arising in any way from Seller’s execution of such documents, effectuating such drawdown and/or the presentation of the letter of credit for drawdown.. |
6.5 | Closing Costs. |
6.6 | Apportionment Credit. In the event the apportionments to be made at the Closing result in a credit balance (a) to Buyer, such sum shall be paid at the Closing by giving Buyer a credit against the Purchase Price in the amount of such credit balance, or (b) to Seller, Buyer shall pay the amount thereof to Seller at the Closing by wire transfer of immediately available funds to the account or accounts to be designated by Seller for the payment of the Purchase Price. Except as otherwise expressly provided in this Agreement, all prorations provided for herein shall be final. |
7.1 | Closing Date. Closing shall occur on the Closing Date. Time is of the essence with respect to the Closing Date. |
7.2 | Title Transfer and Payment of Purchase Price. Provided all conditions precedent to Seller’s obligations hereunder have been satisfied, Seller agrees to convey the Property to Buyer against payment of the Purchase Price as set forth below. Provided all conditions precedent to Buyer’s obligations hereunder have been satisfied, Buyer agrees to pay the amount specified in Article 3 by wire transfer of immediately available funds to the Escrow Agent no later than 10:00 a.m. Eastern Time on the Closing Date. |
7.3 | Seller’s Closing Deliveries. At Closing, Seller shall deliver or cause to be delivered the following: |
(a) | Deed. A quitclaim deed for the Real Property in the form of Exhibit D attached hereto and incorporated herein by this reference (the “Deed”) executed and acknowledged by Seller. |
(b) | Bill of Sale. A bill of sale for the Personal Property in the form of Exhibit E attached hereto and incorporated herein by this reference (the “Bill of Sale”) executed by Seller. |
(c) | Assignment of Tenant Leases. An assignment and assumption of tenant leases for the Real Property, in the form of Exhibit F attached hereto and incorporated herein by this reference (collectively, the “Assignment of Leases”) executed by Seller. |
(d) | Assignment of Contracts, Licenses and Permits. An assignment and assumption of certain contracts and the Other Property Rights (to the extent the same are not transferred by the Deed, Bill of Sale or Assignment of Leases) in the form of Exhibit G attached hereto and incorporated herein by this reference (collectively, the “Assignment of Contracts, Licenses and Permits”) executed by Seller. |
(e) | Notice to Tenants. A single form letter for the Property in the form of Exhibit H attached hereto and incorporated herein by this reference, executed by Seller, duplicate copies of which shall be sent by Buyer after Closing to each tenant under the Leases. |
(f) | Non-Foreign Status Affidavit. A non-foreign status affidavit for the Real Property in the form of Exhibit I attached hereto and incorporated herein by this reference, as required by Section 1445 of the Internal Revenue Code, executed by Seller. |
(g) | NEBH and MBRMRI Lease Amendments. Fully executed third amendments to the NEBH Lease and the MBRMRI Lease in the form of Exhibit J attached hereto and incorporated herein by this reference. |
(h) | Title Company Documents. If required by the Title Company, documentation to establish the due authorization of Seller’s execution of all documents contemplated by this Agreement, including a so-called “good standing certificate” from the Massachusetts Secretary of State, indicating that Thomas A. Shields is an authorized signatory of real estate documents. In addition, Seller shall execute and deliver an owner’s affidavit with respect to parties in possession and mechanics’ liens in form and substance reasonably satisfactory to Seller. |
(i) | Closing Statement; Other Documents. A closing statement executed by Seller and such other documents as may be reasonably required by the Title Company or as may be agreed upon by Seller and Buyer to consummate the Transaction. |
(j) | Keys and Original Documents. Security codes, cards and fobs and keys to all locks on the Real Property in Seller’s or the Property Manager’s possession and originals |
7.4 | Buyer’s Closing Deliveries. At the Closing, Buyer shall deliver or cause to be delivered the following: |
(a) | Purchase Price. The Purchase Price, as adjusted for apportionments, other adjustments required under this Agreement, plus any other amounts required to be paid by Buyer at Closing. |
(b) | Assignment of Leases. The Assignment of Leases executed by Buyer. |
(c) | Assignment of Contracts, Licenses and Permits. The Assignment of Contracts, Licenses and Permits executed by Buyer. |
(d) | Evidence of Authority. Documentation to establish to Seller’s reasonable satisfaction the due authorization of Buyer’s acquisition of the Property, and Buyer’s execution of all documents contemplated by this Agreement. |
(e) | Other Documents. A closing statement executed by Buyer and such other documents as may be reasonably required by the Title Company or may be agreed upon by Seller and Buyer to consummate the Transaction. |
8.1 | Conditions to Seller’s Obligations. Seller’s obligation to close the Transaction on or before the Closing Date is conditioned on all of the following, any or all of which may be waived by Seller by an express written waiver, at its sole option: |
(a) | Representations True. All representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date except to the extent that they expressly relate to an earlier date. |
(b) | Buyer’s Financial Condition. No petition shall have been filed by or against Buyer under the Federal Bankruptcy Code or any similar state or federal Law, whether now or hereafter existing. |
(c) | Buyer’s Deliveries Complete. Buyer shall have delivered the funds required hereunder and all of the documents to be executed by Buyer set forth in Section 7.4 and shall have performed all other covenants, undertakings and obligations, and complied with all conditions required by this Agreement, to be performed or complied with by Buyer at or prior to the Closing. |
8.2 | Conditions to Buyer’s Obligations. Buyer’s obligation to close the Transaction on or before the Closing Date is conditioned on all of the following, any or all of which may be waived by Buyer by an express written waiver, at its sole option: |
(a) | Representations True. Subject to the provisions of Section 9.3, all representations and warranties made by Seller in this Agreement, as the same may be amended to reflect any changes in matters after the Effective Date and as provided in Section 9.3, shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date except to the extent that they expressly relate to an earlier date. |
(b) | Title Conditions Satisfied. At the time of the Closing, title to the Real Property shall be as required by Article 4 of this Agreement. |
(c) | Seller’s Deliveries Complete. Seller shall have delivered all of the documents to be executed by Seller and other items required pursuant to Section 7.3 and shall have performed all other covenants, undertakings and obligations, and complied with all conditions required by this Agreement, to be performed or complied with by Seller at or prior to the Closing. |
8.3 | Waiver of Failure of Conditions Precedent. At any time or times on or before the date specified for the satisfaction of any condition, Seller or Buyer may elect in writing to waive the benefit of any such condition set forth in Section 8.1 or Section 8.2, respectively. By closing the Transaction, Buyer shall be conclusively deemed to have waived the benefit of any remaining unfulfilled conditions set forth in Section 8.2 hereof; provided, however, no such waiver of the conditions set forth in Section 8.2(a) shall be deemed a waiver of any rights that Buyer may have against Seller as a result of a breach of any warranty or representation made by Seller unless Buyer knew or is deemed to know that such representation or warranty is untrue, inaccurate or incorrect. In the event any of the conditions set forth in Section 8.1 or 8.2 are neither waived nor fulfilled, Seller or Buyer (as appropriate) may exercise such rights and remedies, if any, that such party may have pursuant to the terms of Article 12 hereof. |
8.4 | Approvals Not a Condition to Buyer’s Performance. Subject to Buyer’s right to terminate this Agreement prior to the expiration of the Due Diligence Period in accordance with the terms of Article 5 hereof, Buyer acknowledges and agrees that its obligation to perform |
9.1 | Buyer’s Representations. Buyer represents and warrants to, and covenants with, Seller as follows: |
9.1.1 | Buyer’s Authorization. Buyer (a) is duly organized, validly existing and in good standing under the laws of its state of organization and the state in which the Property is located, (b) is authorized to consummate the Transaction and fulfill all of its obligations hereunder and under all documents contemplated hereunder to be executed by Buyer, and (c) has all necessary power to execute and deliver this Agreement and all documents contemplated hereunder to be executed by Buyer, and to perform all of its obligations hereunder and thereunder. This Agreement and all documents contemplated hereunder to be executed by Buyer have been duly authorized by all requisite partnership, corporate or other required action on the part of Buyer and are the valid and legally binding obligation of Buyer, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement and all documents contemplated hereunder to be executed by Buyer, nor the performance of the obligations of Buyer hereunder or thereunder, will result in the violation of any Laws or any provision of the organizational documents of Buyer or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Buyer is bound. |
9.1.2 | Buyer’s Financial Condition. No petition has been filed by or against Buyer under the Federal Bankruptcy Code or any similar state or federal Law. |
9.1.3 | Patriot Act. Neither Buyer, nor any assignee of Buyer, nor any person or entity holding any legal or beneficial interest whatsoever in Buyer, or in any assignee of Buyer, is included in, owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in Executive Order 13224 – Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended. |
9.2 | Seller’s Representations. Seller represents and warrants to Buyer as follows: |
9.2.1 | Seller’s Authorization. Seller (a) is duly organized, validly existing and in good standing under the laws of its state of organization and the state in which the Property |
9.2.2 | Litigation. To Seller’s knowledge, there is no current or threatened litigation against Seller which would, if determined adversely to Seller, materially and adversely affect Buyer or the Property following Closing. |
9.2.3 | Rent Roll. To Seller’s knowledge, the rent roll for the Property included in the Property Documents is the same rent roll as currently used by Seller in the ownership of the Property. |
9.2.4 | Violations. As of the date of this Agreement, to Seller’s knowledge, Seller has not received any written notice of violation of any Law or change in zoning applicable to the Real Property that in either case would have a material adverse effect on the Real Property. |
9.2.5 | Pending Condemnation. To Seller’s knowledge, Seller has not been served with legal process in connection with any pending condemnation proceeding affecting the Real Property. |
9.2.6 | Property Documents. |
9.2.7 | Patriot Act. |
9.3 | General Provisions. |
9.3.1 | No Representation as to Leases. Seller does not represent or warrant that any particular Lease or Leases will be in force or effect on the Closing Date or that the tenants will have performed their obligations thereunder, and none of the foregoing shall be conditions precedent to Buyer’s obligations hereunder. |
9.3.2 | Definition of “Seller’s Knowledge” and “Written Notice” to Seller. All references in this Agreement to “Seller’s knowledge” or words of similar import shall refer only to the conscious actual knowledge of the Designated Employee who Seller represents is an individual within Seller’s organization who has direct involvement with the Property and its operation, and shall not be construed to refer to the knowledge of any other member, officer, director, shareholder, employee, agent, Property Manager or representative of Seller, its partners or members (including without limitation Seller’s counsel), or any affiliate of any of the foregoing, or to impose or have imposed upon the Designated Employee any duty to investigate the matters to which such knowledge, or the absence thereof, pertains, including without limitation the contents of the files, documents and materials made available to or disclosed to Buyer or the contents of files maintained by the Designated Employee. There shall be no personal liability on the part of the Designated Employee arising out of any representations or warranties made herein. All references herein to “written notice” having been given to Seller shall include only those notices (a) received at Seller’s corporate headquarters in Quincy, Massachusetts or (b) known to Designated Employee. |
9.3.3 | Seller’s Representations Deemed Modified. To the extent that Buyer knows or is deemed to know prior to the expiration of the Due Diligence Period that Seller’s representations and warranties are inaccurate, untrue or incorrect in any way, and Buyer elects to waive its right to terminate this Agreement by the end of the Due Diligence Period, such representations and warranties shall be deemed modified to reflect Buyer’s knowledge or deemed knowledge, as the case may be. |
9.3.4 | Notice of Breach; Seller’s Right to Cure. If after the expiration of the Due Diligence Period but prior to the Closing, Buyer or any Buyer’s Representative obtains actual knowledge that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, Buyer shall give Seller written notice thereof within five (5) business days of obtaining such knowledge (but, in any event, prior to the Closing). If at or prior to the Closing, Seller obtains actual knowledge that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, Seller shall give Buyer written notice thereof within five (5) business days of obtaining such knowledge (but, in any event, prior to the Closing). In either such event, Seller shall have the right (but not the obligation) to cure such misrepresentation or breach and shall be entitled to |
9.3.5 | Survival; Limitation on Seller’s Liability. |
9.3.6 | Tenant Estoppel Certificates |
(a) | Seller shall promptly draft and complete all Estoppel Certificates based on the form attached hereto as Exhibit K and deliver such completed, unsigned Estoppel |
(b) | Seller shall use commercially reasonable efforts to obtain Estoppel Certificates from all other tenants. |
(c) | If prior to the Closing Date, Estoppel Certificates received from any tenant contains information or omissions indicating any material defaults under any of the Leases or information materially inconsistent with the form of Estoppel Certificate for such tenant approved by Buyer, then Seller will not be in default under this Agreement by reason thereof, but Buyer shall give Seller written notice of such material defaults within five (5) calendar days after receipt of such Estoppel Certificate and if any such defaults or inconsistencies shall not have been cured or corrected to Buyer’s reasonable satisfaction prior to the Closing Date (which Closing Date Seller may elect to extend up to fifteen (15) business days to endeavor to effect any such cure or correction), Buyer may elect to terminate this Agreement and receive a refund of the Deposit. |
(d) | Buyer may elect to have Seller deliver to tenants a subordination, non-disturbance and attornment agreement (“SNDA”) if Buyer desires to pursue financing prior to Closing, and provided the completed SNDAs are timely delivered to Seller, Seller agrees to forward such SNDAs to tenants in the same package with the Estoppel Certificates. Seller shall cause NEBH and MBRMRI to use efforts to execute reasonable SNDAs. The return of executed SNDAs to Buyer shall not be a condition of Closing. |
10.1 | Buyer’s Covenants. Buyer hereby covenants as follows: |
10.1.1 | Delivery of Reports. Buyer shall deliver promptly to Seller, at Seller’s request, copies of all third party reports commissioned by or on behalf of Buyer evidencing the results of its Due Diligence. |
10.2 | Seller’s Covenants. Seller hereby covenants as follows: |
10.2.1 | Contracts. Without Buyer’s prior consent, which consent shall not be unreasonably withheld, conditioned or delayed, between the date hereof and the Closing Date, Seller shall not enter, extend, renew, replace or modify any Contract unless such Contract (as so executed, extended, renewed, replaced or modified) can be terminated |
10.2.2 | Maintenance of Property. Except to the extent Seller is relieved of such obligations by Article 13 hereof, between the date hereof and the Closing Date Seller shall maintain and keep the Property in a manner consistent with Seller’s past practices with respect to the Property; provided, however, that, subject to Buyer’s right to terminate this Agreement prior to the expiration of the Due Diligence Period in accordance with the terms of Article 5 hereof, Buyer hereby agrees that it shall accept the Property subject to, and Seller shall have no obligation to cure, (a) any violations of Laws, and (b) any physical conditions which would give rise to such violations, which exist on the last day of the Due Diligence Period. |
10.2.3 | Walk-Through. Buyer shall have the right to perform a walk-through of the Property prior to Closing during normal business hours. |
10.2.4 | Know Your Customer. Seller shall complete and deliver to Buyer within three (3) business days after the Effective Date the “Know Your Customer” form previously delivered by Buyer. |
10.3 | Mutual Covenants. |
10.3.1 | Publicity. Seller and Buyer each hereby covenant that: (a) prior to the Closing neither Seller Parties nor Buyer’s Representatives shall issue any Release (as hereinafter defined) with respect to the Transaction without the prior consent of the other (which consent may be withheld in each party’s respective sole discretion), except to the extent required by applicable Law, and (b) after the Closing, any Release issued by either Seller or Buyer that provides more information than would be available in the public records as a result of the Closing shall be subject to the review and approval of both parties (which approval may be withheld in each party’s respective sole discretion). As used herein, the term “Release” shall mean any press release or public statement with respect to the Transaction or this Agreement, but shall exclude any report, statement or filing required by applicable Laws. To the extent either Seller or Buyer is required by applicable Laws to issue a Release, such party shall, at least two (2) business days prior to the issuance of the same, deliver a copy of the proposed Release to the other party for its review. |
10.3.2 | Broker. Seller and Buyer expressly acknowledge that the Broker has acted as Seller’s exclusive broker with respect to the Transaction and with respect to this Agreement, and that Seller shall pay any brokerage commission due to the Broker in accordance with the separate agreement between Seller and the Broker. Seller agrees to hold Buyer harmless and indemnify Buyer from and against any and all damages, losses, costs, claims, liabilities, expenses, demands and obligations (including, but not limited to, reasonable attorneys’ fees and disbursements) suffered or incurred by |
10.3.3 | Survival. The provisions of this Article 10 shall survive the Closing (and not be merged therein) or earlier termination of this Agreement. |
12.1 | Buyer’s Default. If, on or before the Closing Date, (i) Buyer is in default of any of its obligations hereunder, or (ii) the Closing otherwise fails to occur by reason of Buyer’s failure or refusal to perform its obligations hereunder in a prompt and timely manner, then Seller may elect, as its sole and exclusive remedy, either to (a) terminate this Agreement in its entirety by written notice to Buyer; or (b) waive the condition and proceed to close the Transaction. If this Agreement is so terminated, then Seller shall be entitled to retain the Deposit as liquidated damages, and thereafter neither party to this Agreement shall have any further rights or obligations hereunder other than any arising under any section herein that expressly provides that it survives the termination of this Agreement. Buyer and Seller agree that it would be difficult or impossible to ascertain the actual damages suffered by Seller as a result of any default by Buyer and agree that such liquidated damages are a reasonable estimate of such damages and not a penalty. |
12.2 | Seller’s Default. If, at the Closing, (i) Seller is in default of any of its obligations hereunder, or (ii) the Closing otherwise fails to occur by reason of Seller’s failure or refusal to perform its obligations hereunder in a prompt and timely manner, then Buyer may elect, as its sole and exclusive remedy, to (a) terminate this Agreement in its entirety by written notice to Seller, promptly after which the Deposit shall be returned to Buyer, or (b) waive the condition and proceed to close the Transaction, or (c) seek specific performance of this Agreement by Seller. As a condition precedent to exercise by Buyer of any right Buyer may have to bring an action for specific performance hereunder, Buyer must commence such an action within thirty (30) days after the occurrence of Seller’s default. Buyer agrees that its failure timely to commence such an action for specific performance within such thirty (30)-day period shall be deemed a waiver by Buyer of its right to commence an action for specific performance as well as a waiver by it of any right it may have to file or record a notice of |
13.1 | Condemnation. |
13.1.1 | Right to Terminate. If, prior to the Closing Date, all or any significant portion (as hereinafter defined) of the Project is taken by condemnation or eminent domain (or is the subject of a pending taking in which Seller has been served with legal process, but which has not yet been consummated), Seller shall notify Buyer in writing of such fact promptly after obtaining knowledge thereof, and, thereafter, either Buyer or Seller shall have the right to terminate this Agreement in its entirety by giving written notice to other no later than ten (10) days after the giving of Seller’s notice, and the Closing Date shall be extended, if necessary, to provide sufficient time for Buyer or Seller to make such election. The failure by Buyer or Seller to so elect in writing to terminate this Agreement within such ten (10)-day period shall be deemed an election not to terminate this Agreement. For purposes hereof, a “significant portion” of the Project shall mean any interest in the Project except a de minimis interest the taking of which has no material effect on the use or operation of such Project. |
13.1.2 | Assignment of Proceeds. If Buyer or Seller elects not to terminate this Agreement as permitted in Section 13.1.1, there shall be no abatement of the Purchase Price and this Agreement shall remain in full force and effect; provided, however, that, at the Closing, Seller shall pay or credit to Buyer the amount of any award for or other proceeds on account of such condemnation or eminent domain (less all reasonable out-of-pocket costs and expenses, including attorney’s fees and costs incurred by Seller as of the Closing Date in obtaining payment of such award or proceeds) which have been actually paid to Seller prior to the Closing Date as a result of such condemnation or eminent domain and, to the extent such award or proceeds have not been paid, Seller shall assign to Buyer at the Closing (without recourse to Seller) the rights of Seller to, and Buyer shall be entitled to receive and retain, all awards and proceeds for the condemnation or eminent domain of the Property or such portion thereof. |
13.2 | Destruction or Damage. In the event any of the Property is damaged or destroyed prior to the Closing Date, Seller shall notify Buyer in writing of such fact promptly after obtaining knowledge thereof. This Agreement shall remain in full force and effect and Buyer shall acquire the Property upon the terms and conditions set forth herein and Seller shall assign to Buyer all of Seller’s right, title and interest in and to all proceeds of insurance on account of such damage or destruction; provided, however, in the event any mortgagee of the Project resolves not to repair or restore the damage or destroyed property, or if (i) the amount of the |
13.3 | Effect of Termination. If this Agreement is terminated pursuant to Section 13.1 or Section 13.2, the Deposit shall be returned to Buyer. Upon such refund, this Agreement shall terminate in its entirety and neither party to this Agreement shall have any further rights or obligations hereunder other than any arising under any section herein which expressly provides that it shall survive the termination of this Agreement. |
13.4 | Waiver. The provisions of this Article 13 supersede the provisions of any applicable Laws with respect to the subject matter of this Article 13. |
15.1 | Assignment. Seller may assign this Agreement and Seller’s rights hereunder to any affiliate. Buyer shall not assign this Agreement or its rights hereunder to any individual or entity without the prior written consent of Seller, provided, however, if Buyer notifies Seller prior to the Closing, Buyer may assign this Agreement or its rights hereunder to a newly formed entity that Buyer demonstrates to Seller’s reasonable satisfaction, is Controlled by Buyer or its principals or to one or more institutional investors for which Buyer or an entity Controlled by Buyer is then acting as investment manager, including without limitation, RREEF Property Trust. Any assignment by Buyer to an entity not Controlled by Buyer or not otherwise approved by Seller shall be null and void ab initio. In the event of any permitted |
15.2 | Designation Agreement. Section 6045(e) of the United States Internal Revenue Code and the regulations promulgated thereunder (herein collectively called the “Reporting Requirements”) require an information return to be made to the United States Internal Revenue Service, and a statement to be furnished to Seller, in connection with the Transaction. Escrow Agent is either (x) the person responsible for closing the Transaction (as described in the Reporting Requirements) or (y) the disbursing title or escrow company that is most significant in terms of gross proceeds disbursed in connection with the Transaction (as described in the Reporting Requirements). Accordingly: |
(a) | Escrow Agent is hereby designated as the “Reporting Person” (as defined in the Reporting Requirements) for the Transaction. Escrow Agent shall perform all duties that are required by the Reporting Requirements to be performed by the Reporting Person for the Transaction. |
(b) | Seller and Buyer shall furnish to Escrow Agent, in a timely manner, any information requested by Escrow Agent and necessary for Escrow Agent to perform its duties as Reporting Person for the Transaction. |
(c) | Escrow Agent hereby requests Seller to furnish to Escrow Agent Seller’s correct taxpayer identification number. Seller acknowledges that any failure by Seller to provide Escrow Agent with Seller’s correct taxpayer identification number may subject Seller to civil or criminal penalties imposed by law. |
(d) | Each of the parties hereto shall retain this Agreement for a period of four (4) years following the calendar year during which Closing occurs. |
15.3 | Survival/Merger. Except for the provisions of this Agreement which are explicitly stated to survive the Closing, (a) none of the terms of this Agreement shall survive the Closing, and (b) the delivery of the Deed and any other documents and instruments by Seller and the acceptance thereof by Buyer shall effect a merger, and be deemed the full performance and discharge of every obligation on the part of Buyer and Seller to be performed hereunder. |
15.4 | Integration; Waiver. This Agreement, together with the Exhibits hereto, embodies and constitutes the entire understanding among the parties with respect to the Transaction and all prior agreements, understandings, representations and statements, oral or written, are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by the party against whom the enforcement of such waiver, modification, amendment, discharge |
15.5 | Governing Law. This Agreement shall be governed by, and construed in accordance with, the Laws of the Commonwealth of Massachusetts. |
15.6 | Captions Not Binding; Exhibits. The captions in this Agreement are inserted for reference only and in no way define, describe or limit the scope or intent of this Agreement or of any of the provisions hereof. All Exhibits attached hereto shall be incorporated by reference as if set out herein in full. |
15.7 | Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. |
15.8 | Severability. If any term or provision of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by Laws. |
15.9 | Notices. Any notice, request, demand, consent, approval and other communications under this Agreement shall be in writing, and shall be deemed duly given or made at the time and on the date when received by successful email (provided that the sender of such communication shall send a copy of such communication to the appropriate parties within one (1) business day of such email by either personal delivery or overnight delivery) or when personally delivered as shown on a receipt therefor (which shall include delivery by a nationally recognized overnight delivery service) or upon receipt (or refusal of delivery) after being mailed by prepaid certified mail, return receipt requested, to the address for each party set forth below. Any party, by written notice to the other in the manner herein provided, may designate an address different from that set forth below. In order to facilitate the execution and delivery of certain documents and notices contemplated by this Agreement, the parties grant their respective attorneys the actual authority to execute and deliver on each party’s behalf any (a) agreement modifying the time or place for performance of this Agreement or (b) notice that may be given under this Agreement, or (c) modification of any other term or condition of this Agreement, and the parties may rely upon the signature of such attorneys (including a PDF signature) unless they have actual knowledge that a party has disclaimed the authority granted herein. |
15.10 | Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which counterparts taken together shall constitute one and the same agreement. |
15.11 | No Recordation. Seller and Buyer each agrees that neither this Agreement nor any memorandum or notice hereof shall be recorded, and Buyer agrees (a) not to file any notice of pendency (other than in connection with an action for specific performance) or other instrument (other than a judgment) against the Property or any portion thereof in connection herewith and (b) to indemnify Seller against all damages, losses, costs, claims, liabilities, expenses, demands and obligations, including, without limitation, reasonable attorneys’ fees and disbursements, incurred by Seller by reason of the filing by Buyer of such notice of pendency or other instrument. |
15.12 | Additional Agreements; Further Assurances. Subject to the terms and conditions herein provided, each of the parties hereto shall execute and deliver such documents as the other party shall reasonably request in order to consummate and make effective the Transaction; provided, however, that the execution and delivery of such documents by such party shall not result in any additional liability or cost to such party. |
15.13 | Construction. The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendment hereof or Exhibit hereto. |
15.14 | Business Day. As used herein, the term “business day” shall mean any day other than a Saturday, Sunday, any federal or Commonwealth of Massachusetts holiday. If any period expires on a day which is not a business day or any event or condition is required by the terms of this Agreement to occur or be fulfilled on a day which is not a business day, such period shall expire or such event or condition shall occur or be fulfilled, as the case may be, on the next succeeding business day. |
15.15 | Maximum Aggregate Liability. Prior to Closing, the liabilities of the parties shall be governed by Article 9 hereof. Once Closing has occurred, notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of Seller and the Seller Parties, and the maximum aggregate amount which may be awarded to and collected by Buyer, in connection with the Transaction or the Property, under this Agreement and under any and all documents executed pursuant hereto or in connection herewith (including, without limitation, in connection with the breach of any of Seller’s Warranties for which a claim is timely made by Buyer) shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in actual damages suffered by Buyer arising directly as a result of Seller’s breach, the parties agreeing that Seller shall have no liability whatsoever for matters waived by Buyer pursuant to Section 9.3.5 hereof or for consequential or punitive damages, and no claim may be made by Buyer unless Buyer’s damages are reasonably estimated to aggregate more than the Materiality Threshold. The provisions of this section shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement; provided that any claim by Buyer against Seller as described in this Section 15.15 must be made by notice to Seller given prior to the expiration of the Claims Survival Period. |
15.16 | WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND SELLER HEREUNDER. |
15.17 | Electronic Signatures. Signatures to this Agreement transmitted by email shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver an execution original of this Agreement with its actual signature to the other party, but a failure to do so shall not affect the enforceability of this Agreement, it being expressly agreed that each party to this Agreement shall be bound by its own electronic signature and shall accept the electronic signature of the other party to this Agreement. |
15.18 | Riders. Any riders attached to this Agreement are incorporated in this Agreement by reference. |
15.19 | Attorneys’ Fees. Should either party employ attorneys to enforce any of the provisions hereof, the party against whom any final judgment is entered agrees to pay the prevailing party all reasonable costs, charges and expenses, including attorneys’ fees and expenses and court costs, expended or incurred in connection therewith. |
15.20 | No Presumption Regarding Drafts. It is acknowledged and presumed that the substance and form of this Agreement have been fully reviewed by the parties hereto and approved as to form by their respective counsel. It is further acknowledged and agreed that no presumption shall exist against either party hereto by virtue of this Agreement being considered to have been drafted by counsel for either party thereto. |
15.21 | Submission Not An Offer. The Submission of a draft of this Agreement or a summary of some or all of its provisions does not constitute an offer to sell the Property, it being understood and agreed that neither Seller nor Buyer shall be legally bound with respect to the sale and purchase of the Property unless and until this Agreement has been executed by both Seller and Buyer and a fully executed copy has been delivered to each of them. |
15.22 | Pursuant to Section 15.1 above, Buyer may elect to assign this Agreement or its rights hereunder to a publicly registered real estate investment trust. Seller agrees to reasonably cooperate with Buyer by providing financial information for Seller and the Property concerning the period from January 1, 2015 through the Closing Date (“Seller’s Current Financials”) as may be reasonably required by Buyer or an affiliate of Buyer (not requiring legal opinions or warranties or representations) to make any required filings with the U.S. Securities and Exchange Commission or other governmental authority. If such reasonable cooperation shall require Seller to incur out-of-pocket expenses, Buyer shall promptly pay Seller the amount of such expenses. Seller shall maintain Seller’s Current Financials for use under this Section 15.22 for a period of not less than one (1) year after Closing. This Section shall expressly survive Closing. |
Tenant | Document | Date |
1. Boston Sports and Shoulder Center, LLC | Lease | 08/01/16 |
2. New England Orthopedic Spine Surgery, Inc. | Lease | __/__/13 |
First Amendment | 07/22/13 | |
Second Amendment | 01/27/14 | |
Third Amendment | 05/01/16 | |
3. New England Baptist Hospital | Lease | 05/30/12 |
First Amendment | 07/__/13 | |
Second Amendment | 01/27/14 | |
Third Amendment | 08/01/16 | |
4. Orthopedics New England, Inc. | Lease | 05/__/13 |
First Amendment | 07/22/13 | |
Second Amendment | 01/27/14 | |
5. Massachusetts Bay Regional MRI Limited Partnership | Lease | 06/01/12 |
First Amendment | 07/__/13 | |
Second Amendment | 01/27/14 | |
Third Amendment | 08/01/16 |
1. | Operations and Maintenance Agreement dated April 8, 2015 with Building Technology Engineers, Inc. |
2. | Waste Removal Services Contract, dated August 5, 2013 with E. L. Harvey and Sons, Inc. |
3. | HVAC Preventive Maintenance contract dated August 23, 2013 with ESI Environmental Systems, Inc. |
4. | Fire Alarm/Sprinkler System Testing contract between dated July 18, 2016 with J & M Brown Company, Inc. |
5. | Pest Control Services contract dated August 5, 2013 with M.D. Weaver Co. |
6. | Generator Monitoring contract dated August 5, 2013 with Security Alarm Technologies. |
7. | Data Communications Maintenance contract dated July 1, 2016 with Sideband Systems. |
8. | Elevator Service contract dated November 1, 2014 with ThyssenKrupp Elevator. |
9. | Cleaning / Maintenance Services contract dated October 6, 2014 with Vailante Enterprises, LLC. |
10. | Plowing Services contract dated November 5, 2015 with WR Scanlon. |
1. | Historical Operating Statements - 2013 - 2016 (YTD) |
2. | 2016 Income & Expense Budget |
3. | Prior tenant billing statements / CAM reconciliations - 2013 - 2016 (Budget) |
4. | Copies of current & historical tax bills 2013-2016 |
5. | Outstanding lease commissions and tenant improvement balances/commitments |
6. | List of aged accounts receivables / tenant delinquency report |
7. | Historical capital expenditure detail by building under current ownership |
8. | Historical capital expenditure detail by building under previous ownership |
9. | Tenant Billing statements |
10. | Detail on other income (if any) |
11. | Security deposit/Letter of Credit listing |
12. | MOB Sale/Lease Comps |
13. | Detailed rent rolls |
14. | Leases, including lease commencement letters, amendments, side agreements, subleases and guarantees |
15. | Lease abstracts (if available) |
16. | List of evictions and any write off of uncollectible rent over the past 24 months |
17. | Tenant insurance certificates as required by leases |
18. | Tenant Certificates of Occupancy |
19. | Tenant Financials (if available) |
20. | Guarantor Financials (if available) |
21. | All Tenant Correspondence (Landlord/Tenant Dispute, Tenant complaint letters, Lease extension/expansion request, etc) |
22. | Detailed Floor Plans |
23. | Area Measurements (Final) |
24. | Detailed descriptions on tenant build-out with itemized costs (if applicable) |
25. | Deal term summaries for recent leasing (free rent, leasing commissions, Landlord contribution to Tenant Improvement, Tenant contribution to their build-out) |
26. | Current leasing updates for the property (if any) |
27. | Name and contact information of current landlord lease representatives |
28. | All recent marketing material (leasing flyers, online postings, etc) |
29. | Copies of all service contracts and operating agreements |
30. | List of all current insurance claims affecting the property |
31. | Summary of all pending or historical litigation affecting or involving the property |
32. | Inventory of personal property and description of which items (if any) will not be transferred as part of the pending transaction |
33. | Recent Property Condition Assessment Report |
34. | General description of the building materials, method of construction and building systems |
35. | “As-built” drawings – complete set of architectural, structural, mechanical and engineering plans (can be made available on-site) |
36. | List of architects and engineers of record (if not included w/ plans) |
37. | All construction warranties/guarantees |
38. | Copy of any environmental studies, engineering studies, roof studies, geotechnical & soils reports and ADA studies |
39. | Recent site surveys |
40. | Description of any known building code violations and proof of correction |
41. | Have cooling towers been tested/disinfected. Have towers been registered per LL77. |
42. | Are there any open permits |
43. | Building certificates of occupancy |
44. | Façade Detail (Inspections, Certificates and Scope of Work) |
45. | Legal descriptions |
46. | Title commitment and copies of all exceptions to title reflected in title commitment |
47. | Copies of any easements or other exceptions to title (whether or not listed in title report) |
48. | Copy of current title policy |
49. | Copy of any contract of sale, letter of intent, right of first refusal or any other legal or quasi-legal instrument encumbering the property |
50. | Full set of loan documents (if applicable) |
51. | Loan documents in connection with NEBH build-out/tenant improvements (if applicable) |
52. | Bank/Compliance mandated "Know Your Client" (KYC) forms (we will distribute) |
53. | Exterior Photos, Interior Photos, Site Plans, maps, aerials, etc. |
54. | Renderings & Budgets for any proposed capital improvement projects |
55. | Occupancy history at the property |
56. | Past 2 years utility consumption data |
57. | Access to Energy Star input data |
58. | Condominium Documents (if any) |
59. | Property Insurance |
COMMONWEALTH OF MASSACHUSETTS | ) |
1. | Amendments to Specific Existing Lease Provisions. As of the Effective Date, the Parties hereby agree to the following: |
(a) | Basic Rent. The “Basic Rent” as defined in Section 1.1 of the Original Lease is hereby amended to set forth the following definition: |
(b) | Adjustment Period. The “Adjustment Period” as defined in Section 1.1 of the Original Lease is hereby amended to set forth the following definition: |
(c) | Premises Rentable Area. The “Premises Rentable Area” as defined in Section 1.1 of the Original Lease and previously amended by Paragraph 1(b) of the Second Amendment is hereby increased by 6,636 square feet from 47,309 square feet to 53,946 square feet and shall now include the areas on the first floor of the Building labeled “Available Shell” on the diagram attached hereto as Exhibit A. |
(d) | Tenant’s Proportionate Share. The Tenant’s Proportionate Share in Section 1.1 of the Original Lease and previously amended by Paragraph 1(c) of the Second Amendment to 73.77% is hereby increased to 84.12%. |
(e) | Permitted Use. The Tenant’s Permitted Use in Section 1.1 of the Original Lease is hereby amended by adding the following to the end of the last sentence of the definition: |
(f) | Tenant Generator. There is added to Section 2.2 of the Lease the following subsection (e): |
(g) | Landlord’s Common Facilities Management. There is added to Article 7 of the Lease the following Section 7.7. |
(h) | Exclusive Rights. There is added to the Lease the following new Article 17. |
(i) | Tenant’s Rights of First Offer to Purchase. There is added to the Lease the following new Article 18. |
2. | TI Improvement Allowance. Consistent with the tenant improvement allowances granted by Landlord to other tenants, Landlord hereby agrees that on the closing date of the sale of the Property by Greater Boston Musculoskeletal Center Real Estate Company, LLC (“GBMCREC”) to an unaffiliated third party, GBMCREC agrees to pay to Tenant from the sales proceeds a one-time leasehold improvement allowance (the “TI Allowance”) in the amount of $75.00 per square foot with respect to the 16,000 square feet of space that Tenant leases on the first floor of the Building for a total TI Allowance of $1,200,000 and Tenant shall execute a written certification at such closing to the purchaser confirming the amount owed, and the Tenant’s wire instructions for payment by GBMCREC. |
3. | Possible Inclusion of Space Currently Leased by Orthopedics New England, Inc. In the event that Orthopedics New England, Inc. (“ONE”) does not timely exercise its option to extend the term of its lease (the “ONE Lease”) for 1,372 square feet of space on the first floor of the Building (such space, the “ONE Space”) beyond July 31, 2018 in accordance with Section 2.3 of the ONE Lease, Tenant agrees that effective as of August 1, 2018 the ONE Space shall be added to the Tenant’s Premises upon all terms and conditions of the Lease (including without limitation, Basic Rent) for the remainder of the Term of the Lease with all applicable adjustments, including but not limited to an adjustment to Tenant’s Proportionate Share, to be memorialized in a subsequent amendment to Tenant’s Lease. |
4. | Ratification of Lease. Except as amended hereby, the terms and conditions of the Lease are hereby affirmed and ratified. Capitalized terms not defined herein shall have the meaning set forth in the Lease. In the event of any conflict between the Lease and this Third Amendment, the terms of this Third Amendment shall control. Landlord and Tenant each hereby ratifies and confirms its obligations under the Lease and represents and warrants to the other that, to its knowledge, it has no defenses thereto. Additionally, Landlord and Tenant each confirms and ratifies that, as of the date hereof, each has no claims, counterclaims, set-offs or defenses against the other arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant. |
5. | Authority. Landlord and Tenant each warrant to the other that the person or persons executing this Third Amendment on its behalf has or have authority to do so and that such execution has fully obligated and bound such Party to all terms and provisions of this Third Amendment. |
6. | Execution/Entire Agreement. This Third Amendment, together with the Lease, constitutes the entire agreement of the Parties, and may not be amended except by written instrument signed by both Parties. This Third Amendment shall have the effect of an |
7. | Counterparts. This Third Amendment may be executed in any number of counterparts, each of which shall constitute an original and together a single instrument, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to this Third Amendment by facsimile or portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Third Amendment. |
15.23 | IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment as of the day and year first above written. |
LANDLORD GREATER BOSTON MUSCULOSKELETAL CENTER REAL ESTATE COMPANY, LLC By: ________________________________ Thomas A. Shields Authorized Representative | TENANT NEW ENGLAND BAPTIST HOSPITAL By: _____________________________ Name: Title: |
8. | Amendments to Specific Lease Provisions. As of the Effective Date, the Parties hereby agree to the following: |
(a) | Basic Rent. The “Basic Rent” as defined in Article 1.1 of the Original Lease is hereby amended to set forth the following definition: |
(b) | CPI Adjustment. The new term, “CPI Adjustment” and its definition are hereby added to Article 1.1 of the Original Lease as follows: |
(c) | Adjustment Period. The new term, “Adjustment Period” and its definition are hereby added to Article 1.1 of the Original Lease as follows: |
(d) | Price Index. The new term, “Price Index” and its definition are hereby added to Article 1.1 of the Original Lease as follows: |
(e) | Tenant’s Right to Install Fixed Imaging Equipment. Article 5.2(a) of the Original Lease is hereby amended to insert the following sentence at the end of the current provision: |
(f) | Protection of Tenant’s Permitted Use. Article 5.1 of the Original Lease is hereby amended to insert the following sentence at the end of the current provision: |
9. | TI Improvement Allowance. Consistent with the tenant improvement allowances granted by Landlord to other tenants, Landlord hereby agrees that on the closing date of the sale of the Property by Greater Boston Musculoskeletal Center Real Estate Company, LLC (“GBMCREC”) to an unaffiliated third party, GBMCREC agrees to pay to Tenant from the sales proceeds a one-time leasehold improvement allowance (the “TI Allowance”) in the amount of $75.00 per square foot with respect to the 4,305 square feet of occupied space that Tenant leases for a total TI Allowance of $322,875.00 and Tenant shall execute a written certification at such closing to the purchaser confirming the amount owed, and the Tenant’s wire instructions for payment by GBMCREC. |
10. | Signage. During the remainder of the Term (and any extensions), Tenant shall be entitled to maintain all of its signage existing as of the Effective Date of this Third Amendment on and/or within the Property, the Building and the Premises and replace such signage in the event of damage or excessive wear and tear, all in compliance with applicable Laws. Tenant, at its expense, also shall have the right during the Term to replace any existing signage referencing “Shields Health Care Group” with signage of a similar character and size that references “Shields MRI” and/or “Shields Imaging” and/or similar phrasing. Tenant shall remove all such signage upon the termination or expiration of the Lease and repair any damage caused to the Premises or Building by such removal. |
11. | Ratification of Lease. Except as amended hereby, the terms and conditions of the Lease are hereby affirmed and ratified. Capitalized terms not defined herein shall have the meaning set forth in the Lease. In the event of any conflict between the Lease and this Third Amendment, the terms of this Third Amendment shall control. Landlord and Tenant each hereby ratifies and confirms its obligations under the Lease and represents and warrants to the other that, to its knowledge, it has no defenses thereto. Additionally, Landlord and Tenant each confirms and ratifies that, as of the date hereof, each has no claims, counterclaims, set-offs or defenses against the other arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant. |
12. | Authority. Landlord and Tenant each warrant to the other that the person or persons executing this Third Amendment on its behalf has or have authority to do so and that such execution has fully obligated and bound such Party to all terms and provisions of this Third Amendment. |
13. | Execution/Entire Agreement. This Third Amendment, together with the Lease, constitutes the entire agreement of the Parties, and may not be amended except by written instrument signed by both Parties. This Third Amendment shall have the effect of an agreement under seal and shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. |
14. | Counterparts. This Third Amendment may be executed in any number of counterparts, each of which shall constitute an original and together a single instrument, with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page to this Third Amendment by facsimile or portable document format (.pdf) shall be effective as delivery of a manually executed counterpart of this Third Amendment. |
15.24 | IN WITNESS WHEREOF, Landlord and Tenant have executed this Third Amendment as of the day and year first above written. |
LANDLORD GREATER BOSTON MUSCULOSKELETAL CENTER REAL ESTATE COMPANY, LLC By: ________________________________ Thomas A. Shields Authorized Representative | TENANT MASSACHUSETTS BAY REGIONAL MRI LIMITED PARTNERSHIP By: _____________________________ Thomas A. Shields Authorized Representative |
TO: | RREEF AMERICA L.L.C. ("RREEF") |
DATE: | August ___, 2016 |
PROPERTY: | 40 Allied Drive, Dedham/Westwood, Massachusetts |
LANDLORD: | GREATER BOSTON MUSCULOSKELETAL CENTER REAL ESTATE COMPANY, LLC |
TENANT: | [ ] |
TENANT’S NOTICE ADDRESS: | [________________________________________] |
LEASED PREMISES: | A portion of the ground floor of the Property containing approximately [ ] rentable square feet |
LEASE: | A certain Lease dated [____________, 20 ] between Landlord and Tenant [as amended by _______________] (the “Lease”) |
1. | The Lease identified above constitutes the entire agreement between the parties. There are no other agreements (oral or written) between Landlord and Tenant concerning the Leased Premises. Tenant has not sublet any portion of the Leased Premises nor assigned the Lease or any of its rights under the Lease. |
2. | The Lease has been properly executed by Tenant and is valid and in full force and effect. The Leased Premises comprise approximately [ ] rentable square feet of space. The monthly Basic Rent presently payable under the Lease as the date hereof is $[_____]. Tenant's obligation to pay Basic Rent began on [_________________] and Tenant's obligation to pay Tenant's Proportionate Share of Operating Costs and Taxes began on [______________]. Tenant is not in arrears on any rent or other charges payable by Tenant under the Lease. No rent has been paid by Tenant in advance under the Lease for more than thirty (30) days. |
3. | Tenant acknowledges that it has accepted the Leased Premises and the Commencement Date is [______________]. The improvements and space required to be furnished according to the Lease have been duly delivered by Landlord and accepted by Tenant. Landlord’s obligations to pay for tenant improvements, if any, have been satisfied. |
4. | The Lease Term commenced upon the Commencement Date; the initial Term, excluding unexercised renewals and extensions, will terminate as of the last day of [_________]. Tenant has [one (1)] extension option for a [five (5)] year term, available for exercise under the Lease. |
5. | Neither Landlord nor Tenant is in default in the performance of their respective obligations under the Lease; no event has occurred and no condition exists which, with the giving of notice or the passage of time, or both, could result in a default by Landlord under the Lease; and Tenant has no existing defenses, offsets, liens, claims or credits against the rentals under the Lease or against the enforcement by Landlord of any of the obligations of Tenant under this Lease. Tenant has no present claims against Landlord under the Lease. |
6. | Tenant does not have (a) any right to renew or extend the Lease except as set forth in Section 4 above nor (except as otherwise expressly provided in the Lease) any right to cancel or reduce the term of the Lease; (b) any rights of first offer or first refusal with respect to the leasing of any space at the Property; (c) any expansion rights; or (d) any options or rights of first refusal to purchase the Leased Premises or the Property. |
7. | Except as referenced in Paragraph 2 above, Tenant has no right to any free rent, reduction in rent, application of unused tenant improvement allowances, or any other type of rent concession or to any lease support payments or lease buy-outs. |
8. | Tenant has paid to Landlord a security deposit in the amount of $[____________]. The current unapplied balance of Tenant’s security deposit is $[____________]. |
9. | All tenant allowances (including relocation costs), if any, due from Landlord have been received by Tenant. |
10. | Landlord has completed all Tenant operating expense reconciliations for August 1, 2014 – July 31, 2015 and all prior years. There are no current disputes with Landlord regarding tenant operating expense reconciliations for the current year or any prior year, and no ongoing operating expense audits are underway or have been requested by Tenant. |
11. | Tenant is solvent and free from bankruptcy and other reorganization proceedings and assignments for the benefit of creditors. |
1. | Escrow Agent. Purchaser and Seller hereby appoint Company as escrow agent hereunder. The Deposit is hereby delivered to Escrow Agent, who by signing below, acknowledges its receipt of Letter of Credit in the amount of $1,000,000.00 payable to the Company as beneficiary. Escrow Agent is acting as a depository only for the Letter of Credit, and does not confirm the validity, conditions or worth of the Letter of Credit. Escrow Agent shall hold the Cash Deposit, if any, in accordance with the provisions of this Escrow Agreement. |
2. | Fee. There shall be no fee for the services of Escrow Agent. |
3. | Release of Deposit. In the event Purchaser terminates the Contract on or before 5:00 PM Eastern on September 16, 2016 by delivery of written notice to Seller in accordance with Section 5.3 of the Contract, Escrow Agent shall, upon the written request of Purchaser, and upon Escrow Agent’s receipt of acknowledgment of Seller of receipt of Purchaser’s termination (which Seller shall promptly deliver to Escrow Agent and which may be by e-mail), deliver the Deposit to Purchaser and notify Seller of such disbursement. If the Contract is not terminated by Purchaser on or before 5:00 PM Eastern on September 16, 2016, Escrow Agent shall hold and disburse the Deposit in accordance with the terms of the Contract. If Escrow Agent has not received a notice of termination from Purchaser on |
4. | Reliance and Limitation of Liability. The Escrow Agent may act in reliance upon any writing, instrument or signature which it, in good faith, believes to be genuine; may assume the validity and accuracy of any statements or assertions contained therein; and may assume the authorization of any person signing such writing. The Escrow Agent shall not be liable for any loss or damage resulting from: |
a. | The default, error, action or omission of any party to this Escrow Agreement. |
b. | Penalties, loss of principal or any delays in the withdrawal of funds, which may be imposed by the depository. |
c. | Loss or impairments of funds while those funds are in the course of collection or while those funds are on deposit in a financial institution if such a loss or impairment results from the failure, insolvency or suspension of the financial institution. |
d. | Any levies by taxing authorities related to the Deposit. |
e. | Any loss arising from the fact the Deposit exceeds the amount not insured by the Federal Deposit Insurance Corporation. |
f. | The Escrow Agent’s compliance with any legal process, subpoena, writs, orders, judgments and decree of any court whether issued with or without jurisdiction and whether or not consequently vacated, modified, set aside or reversed. |
g. | Any acts or omissions of any kind unless caused by its willful misconduct or gross negligence. |
5. | Defaults, Non-performance and Disputes. If written notice of a default, non-performance or dispute is given to the Company by any party, the Company will promptly notify all other parties in writing in accordance with provision 7 of this Escrow Agreement. Three (3) business days after proper notice by the Company as set forth herein, the Deposit will be released pursuant to the demand, unless contrary written instructions are received from any other party(ies) to the Escrow Agreement. If contrary written instructions are received by the Company prior to the expiration of three (3) business days after proper notice, the Company will not disburse the Deposit until it receives a mutual written agreement of all parties to this Escrow Agreement or upon receipt of an appropriate final, nonappealable court order. The foregoing provisions of this Section 5 shall not apply to a written request for return of the Deposit from Purchaser on or before 5:00 PM Eastern on September 16, 2016 in accordance with Section 3 above. |
6. | Resignation and Interpleader. The Escrow Agent may resign at any time. At the time of the resignation, the parties must appoint a successor escrow agent within five (5) business days. If none is appointed, the Company may petition a court of competent jurisdiction to appoint a successor escrow agent. In the event of a disagreement about the interpretation of this Escrow Agreement, the Company, may, in its sole discretion, file an action in interpleader or other court action to resolve the disagreement. All parties agree to (a) indemnify the Company for any and all attorneys’ fees and costs expended and (b) permit the Company to deduct from the Deposit any court costs and attorneys’ fees reasonably incurred by the Company. |
7. | Notices, Demands and Communications. All notices, demands or other communications shall be in writing and given to the person(s) to whom the notice is directed, either by: (a) actual delivery at the addresses stated below, including a national overnight delivery service, which shall be deemed effective at the time of actual delivery; (b) certified mail, return receipt requested, addressed as stated below, posted and deposited with the U.S. Postal Service, which shall be deemed effective three business days after being so deposited; or (c) e-mail transmission to the e-mail address stated below, provided that there is simultaneous deposit of such notice with a national overnight delivery service addressed as stated below, which notice shall be deemed effective upon the earlier to occur of: (i) confirmation of receipt of the e-mail transmission; or (ii) actual delivery by the overnight delivery service. |
If to Escrow Agent: | Chicago Title Insurance Company | ||
2400 Maitland Center Parkway, Suite 200 | |||
Maitland, FL 32751 | |||
Attention: | Juanita Schuster | ||
Phone: | 407-618-2966 | ||
E-mail: | Juanita.schuster@fnf.com |
8. | Governing Law. This Escrow Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts. |
9. | Counterparts and Originals. This Escrow Agreement may be executed in several counterparts, each of which shall be deemed an original and constitute one and the same instrument. Copies of this executed Escrow Agreement shall have the same effect as an original. |
10. | Headings. The headings are for reference only and shall not define or limit the terms of this Escrow Agreement. |
Purchaser(s): | Seller(s): | ||||||
RREEF AMERICA L.L.C. By: | GREATER BOSTON MUSCULOSKELETAL CENTER REAL ESTATE COMPANY, LLC By: | ||||||
Print name: | Print name: | ||||||
Its: | Its: | ||||||
Accepted: Chicago Title Insurance Company | |||||||
Print name: | Juanita Schuster | ||||||
Its: | Commercial Escrow Officer |