Purchase and Sale Agreement (2005)Full Document 

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                                BETWEEN AND AMONG


                       WELLS OPERATING PARTNERSHIP, L.P.,
                WELLS FUND XII - REIT JOINT VENTURE PARTNERSHIP,
                WELLS FUND XIII - REIT JOINT VENTURE PARTNERSHIP,
                             WELLS REIT, LLC - VA I,
                               WELLS BREA I, L.P.,
                              WESTLAKE WELLS, L.P.,
                          DANACQ FARMINGTON HILLS LLC,
                              DANACQ KALAMAZOO LLC,
                          WELLS - EDS DES MOINES, L.P.,
                                       AND
                 THE WELLS FUND XI-FUND XII-REIT JOINT VENTURE,

                                   AS SELLERS


                                       AND


                      LEXINGTON CORPORATE PROPERTIES TRUST,

                                  AS PURCHASER






                                February 25, 2005



Purchase and Sale Agreement





TABLE OF CONTENTS ARTICLE 1. DEFINITIONS............................................................................................3 ARTICLE 2. PURCHASE AND SALE.....................................................................................40 2.1. Agreement to Sell and Purchase the Wells Affiliate Properties..................................40 2.2. Agreement to Sell and Purchase the Wells OP Properties.........................................41 2.3. Permitted Exceptions...........................................................................41 2.4. Earnest Money..................................................................................41 2.5. Purchase Price.................................................................................42 2.6. Independent Contract Consideration.............................................................42 2.7. Closing........................................................................................42 ARTICLE 3. PURCHASER'S INSPECTION AND REVIEW RIGHTS..............................................................44 3.1. Due Diligence Inspections......................................................................44 3.2. Deliveries to Purchaser by Sellers; Purchaser's Access to Property Records of Sellers..........45 3.3. Condition of the Properties....................................................................48 3.4. Title and Survey...............................................................................49 3.5. Service Contracts..............................................................................50 3.6. Confidentiality................................................................................50 ARTICLE 4. REPRESENTATIONS, WARRANTIES AND OTHER AGREEMENTS......................................................51 4.1. Representations and Warranties of Seller.......................................................51 4.2. Knowledge Defined..............................................................................59 4.3. Covenants and Agreements of Sellers............................................................59 4.4. Representations and Warranties of Purchaser....................................................66 4.5 Covenants and Agreements of Purchaser..........................................................67 ARTICLE 5. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS......................................................68 5.1. Sellers' Closing Deliveries....................................................................68 5.2. Purchaser's Closing Deliveries.................................................................74 5.3. Closing Costs..................................................................................76 5.4. Prorations and Credits.........................................................................77 ARTICLE 6. CONDITIONS TO CLOSING.................................................................................80 6.1. Conditions Precedent to Purchaser's Obligations................................................80 6.2. Conditions Precedent to Seller's Obligations...................................................84 6.3. Conditions Precedent to Purchase and Sale of Certain Properties................................85
Purchase and Sale Agreement
ARTICLE 7. CASUALTY AND CONDEMNATION............................................................................85 7.1. Casualty.......................................................................................85 7.2. Condemnation...................................................................................86 ARTICLE 8. DEFAULT AND REMEDIES.................................................................................87 8.1. Purchaser's Default............................................................................87 8.2. Seller's Default...............................................................................88 ARTICLE 9. ASSIGNMENT............................................................................................88 9.1. Assignment.....................................................................................88 ARTICLE 10. BROKERAGE COMMISSIONS...............................................................................89 10.1. Broker.........................................................................................89 ARTICLE 11. INDEMNIFICATION......................................................................................90 11.1. Indemnification by Sellers.....................................................................90 11.2. Indemnification by Purchaser...................................................................90 11.3. Limitations on Indemnification.................................................................91 11.4. Survival.......................................................................................91 11.5. Indemnification as Sole Remedy.................................................................91 ARTICLE 12. MISCELLANEOUS........................................................................................92 12.1. Notices........................................................................................92 12.2 Possession.....................................................................................93 12.3 Time Periods...................................................................................93 12.4 Publicity......................................................................................93 12.5 Discharge of Obligations.......................................................................93 12.6 Severability...................................................................................93 12.7 Construction...................................................................................94 12.8 Sale Notification Letters......................................................................94 12.9 Access to Records Following Closing............................................................94 12.10 Submission to Jurisdiction.....................................................................94 12.11 General Provisions.............................................................................95 12.12 Like-Kind Exchange by Sellers..................................................................95 12.13 Attorney's Fees................................................................................96 12.14 Counterparts...................................................................................96 12.15 Effective Agreement............................................................................96 ii
Purchase and Sale Agreement SCHEDULE OF EXHIBITS Exhibit "A-1" Description of Wells OP Lands Exhibit "A-2" Description of Wells Affiliate Lands Exhibit "A-3" Description of Wells OP Leasehold Interest Lands Exhibit "B" List of Personal Property Exhibit "B-1" List of Property Excluded from Wells OP Personal Property Exhibit "B-2" List of Property Excluded from Wells Affiliate Personal Property Exhibit "C" List of Existing Commission Agreements Exhibit "D" List of Associations and Declarations of Covenants, Conditions, Easements and Restrictions Exhibit "E" Form of Escrow Agreement Exhibit "F" List of Existing Environmental Reports Exhibit "G" List of Existing Surveys Exhibit "H" Forms of Ground Lessor Estoppel Certificates Exhibit "I" List of Leases Exhibit "J" List of Letters of Credit Exhibit "K-1" Title Exceptions for Wells OP Lands Exhibit "K-2" Title Exceptions for Wells Affiliate Lands Exhibit "K-3" Title Exceptions for Wells OP Leasehold Interest Lands Exhibit "L" List of Service Contracts Exhibit "M" Form of Tenant Estoppel Certificate Exhibit "N" Allocation of Earnest Money to Properties Exhibit "O" List of Purchase Prices for Each Property Schedule of Exhibits Purchase and Sale Agreement Page 1 Exhibit "P" List of Exceptions Exhibit "Q" List of Third Party Management Agreements Exhibit "R" Property Tax Appeals Exhibit "S" List of Knowledge Parties Exhibit "T" Form of Lease Guarantor Estoppel Certificate Exhibit "U" Obligations as to Certain Leasing Commission Obligations Exhibit "V" List of Additional Matters for Confirmation in Estoppel Certificates Exhibit "W" Excluded Computer Software Exhibit "X" List of Security Deposits Exhibit "Y" Form of Highwoods Estoppel Certificate Exhibit "Z" Form of Pending Kerr McGee Sewer Easement Exhibit "AA" Form of Pending Capital One Lake Easement Deed Exhibit "BB" Intentionally Deleted Exhibit "CC" Form of Second Amendment to Gartner Office Lease Exhibit "DD" Form of Letter Amendment to ISS Building III Lease Exhibit "EE" Alstom Power Property / French Drain Work Exhibit "FF" Gartner Parking Plans Schedule of Exhibits Purchase and Sale Agreement Page 2 SCHEDULE OF CLOSING DOCUMENTS Schedule 1 Form of Assignment and Assumption of ASML Sub-Ground Lease Schedule 2 Form of Assignment and Assumption of Ingram Micro Bond Lease Schedule 3 Form of Assignment and Assumption of ISS Bond Lease Schedule 4 Form of Assignment and Assumption of Leases and Security Deposits and Leasing Commission Obligations arising after Closing Schedule 5 Form of Assignment and Assumption of ASML Sublease Schedule 6 Form of Assignment and Assumption of Ingram Micro Sublease Schedule 7 Form of Assignment and Assumption of ISS Subleases Schedule 8 Form of Bill of Sale to Personal Property Schedule 9 Form of Assignment and Assumption of Ingram Micro Loan Documents Schedule 10 Form of Assignment and Assumption of ISS Bond Documents Schedule 11 Form of Assignment and Assumption of Service Contracts Schedule 12 Form of General Assignment of Seller's Interest in Intangible Property Schedule 13 Form of Seller's Affidavit (for Purchaser's Title Insurance Purposes) Schedule 14 Form of Seller's Certificate (as to Seller's Representations and Warranties) Schedule 15 Form of Seller's FIRPTA Affidavit Schedule 16 Form of Ingram Micro Bond Certificate Schedule 17 Form of ISS Home Office Payment Agreement Schedule 18 Form of Assignment and Assumption of Agreements Regarding ISS Letters of Credit Schedule 19 Form of Assignment of Letters of Credit Schedule 20 Forms of Seller's Estoppels Schedule 21 Form of Assignment and Assumption of Highwoods Rental Guaranty Purchase and Sale Agreement Agreements Schedule 22 Form of Assignment and Assumption of Pacificare Escrow Agreement Schedule 23 Form of Purchaser's Certificate (as to Purchaser's Representations and Warranties) Schedule of Closing Documents Purchase and Sale Agreement Page 2 PURCHASE AND SALE AGREEMENT -------------------------------------------------------------------------------- THIS PURCHASE AND SALE AGREEMENT (the "Agreement"), made and entered into this 25th day of February, 2005, by and among WELLS OPERATING PARTNERSHIP, L.P., a Delaware limited partnership ("Wells OP"), WELLS FUND XII - REIT JOINT VENTURE PARTNERSHIP, a Georgia general partnership having Wells Real Estate Fund XII, L.P., a Georgia limited partnership and Wells OP as all of its general partners ("Wells Fund XII - REIT JV"), WELLS FUND XIII - REIT JOINT VENTURE PARTNERSHIP, a Georgia general partnership having Wells Real Estate Fund XIII, L.P., a Georgia limited partnership and Wells OP as all of its general partners ("Wells Fund XIII-REIT JV"), WELLS REIT, LLC, VA I, a Georgia limited liability company having Wells OP as its sole member ("Wells Virginia REIT"), WELLS BREA I, L.P., a Delaware limited partnership having Wells Brea, LLC, a Delaware limited liability company as its sole general partner ("Wells Brea"), WESTLAKE WELLS, L.P., a Texas limited partnership having Wells Real Estate Westlake, TX, LLC, a Delaware limited liability company as its sole general partner ("Wells Westlake"), DANACQ FARMINGTON HILLS LLC, a Delaware limited liability company, having Wells OP as its sole member ("Wells Farmington Hills"), DANACQ KALAMAZOO LLC, a Delaware limited liability company having Wells OP as its sole member ("Wells Kalamazoo"), WELLS - EDS DES MOINES, L.P., a Texas limited partnership having Wells Real Estate - Des Moines, IA, LLC, a Delaware limited liability company as its sole general partner ("Wells EDS"), THE WELLS FUND XI - FUND XII - REIT JOINT VENTURE, a Georgia general partnership having Wells Real Estate Fund XI, L.P., a Georgia limited partnership, Wells Real Estate Fund XII, L.P., a Georgia limited partnership and Wells OP as all of its general partners ("Wells Funds XI and XII REIT JV") (Wells OP, Wells Fund XII - REIT JV, Wells Fund XIII - REIT JV, Wells Virginia REIT, Wells Brea, Wells Westlake, Wells Farmington Hills, Wells Kalamazoo, Wells EDS, and Wells Funds XI and XII REIT JV being collectively referred to as "Sellers" and sometimes individually referred to as "Seller") and LEXINGTON CORPORATE PROPERTIES TRUST, a Maryland statutory real estate investment trust (together with its permitted successors and assigns, "Purchaser"). W I T N E S S E T H: ------------------- WHEREAS, Wells OP (doing business in the State of North Carolina as Wells Operating Partnership, Limited Partnership) desires to sell its fee simple estate in certain improved real property defined herein as the "Allstate Property" located in Decatur Township, Marion County, Indiana; the "AT&T (PA) Property" located in Susquehanna Township, Dauphin County, Pennsylvania; the "Capital One Property" located in the Three Chopt District, Henrico County, Virginia; the "Dial Corporation Property" located at 15501 N. Dial Boulevard, Scottsdale, Maricopa County, Arizona; the "Experian Property" located in the City of Allen, Collin County, Texas; the "Gartner Surface Parking Property" located in Fort Myers, Lee County, Florida; the "IKON Property" located at 810 and 820 Gears Road, Harris County, Texas; the "Kerr McGee Property" located in Harris County, Texas; the "Kraft Foods Property" located in Forsyth County, Georgia; the "Lucent Property" located in Wake County, North Carolina; the
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