Purchase and Sale Agreement (2006)Full Document 

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Purchase and Sale Agreement
between
KAN AM GRUND KAPITALANLAGEGESELLSCHAFT MBH
as seller
and
HINES-SUMISEI U.S. CORE OFFICE PROPERTIES, LP
as purchaser
as of March 10, 2006


 

Table of Contents
         
ARTICLE 1
       
Purchase and Sale
    1  
1.1 Agreement of Purchase and Sale
    1  
1.2 Property Defined
    2  
1.3 Permitted Exceptions
    2  
 
       
ARTICLE 2
       
Purchase Price and Earnest Money
    2  
2.1 Purchase Price
    2  
2.2 Payment of Purchase Price
    2  
2.3 Earnest Money
    2  
2.4 Independent Consideration
    2  
 
       
ARTICLE 3
       
Title and Survey
    3  
3.1 Seller’s Title and Survey Deliveries
    3  
3.2 Title Examination and Survey
    3  
3.3 Subsequent Title Defects
    3  
 
       
ARTICLE 4
       
Information and Inspection
    4  
4.1 Seller’s Deliveries
    4  
4.2 Reliability of Information
    4  
4.3 Inspection Period Defined
    5  
4.4 Purchaser’s Obligation to Inspect
    5  
4.5 Indemnity and Liability Insurance
    6  
4.6 Purchaser’s Right to Terminate
    6  
4.7 Continuing Agreement
    7  
4.8 “As Is” Defined
    7  
4.9 Confidential Information
    8  
4.10 Intentionally Omitted
    8  
4.11 Hazardous Materials
    8  
4.12 Availability of Information
    8  
4.13 Information from Agents
    8  
4.14 Purchaser Certificate and Release
    9  
 
       
ARTICLE 5
       
Seller’s Warranties and Representations
    10  
5.1 Seller’s Authority, Etc.
    10  
5.2 No Litigation
    10  
5.3 The Leases
    10  
5.4 Notices of Violations or Actions
    11  
5.5 Environmental Notices
    11  
5.6 Service Contracts
    11  
5.7 Knowledge Defined
    12  
5.8 Survival of Seller’s Representations and Warranties
    12  

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ARTICLE 6
       
Purchaser’s Warranties and Representations
    12  
6.1 [Intentionally omitted]
       
6.2 Purchaser’s Authority, Etc.
    12  
6.3 No Litigation
    13  
6.4 Sophisticated Investor
    13  
6.5 OFAC Regulations
    13  
6.6 Survival of Purchaser’s Representations and Warranties
    14  
 
       
ARTICLE 7
       
Covenants and Executory Agreements Pending Closing
    14  
7.1 Purchaser’s Due Diligence
    14  
7.2 Operations Pending Closing
    14  
7.3 New Leases
    14  
 
       
ARTICLE 8
       
Conditions to Closing
    16  
8.1 Conditions to Purchaser’s Obligations
    16  
8.2 Conditions to Seller’s Obligations
    17  
8.3 Tenant Estoppel Certificates
    17  
 
       
ARTICLE 9
       
Closing
    18  
9.1 Time and Place
    18  
9.2 Seller’s Obligations at Closing
    18  
9.3 Purchaser’s Obligations at Closing
    20  
9.4 Credits and Prorations
    21  
9.5 Closing Costs
    24  
 
       
ARTICLE 10
       
Default
    25  
10.1 Default by Purchaser
    25  
10.2 Default by Seller
    25  
10.3 Notice and Cure
    25  
 
       
ARTICLE 11
       
Risk of Loss
    25  
11.1 Minor Damage
    25  
11.2 Major Damage
    26  
11.3 Definition of “Major” Loss or Damage
    26  
 
       
ARTICLE 12
       
Brokerage Commissions
    27  
 
       
ARTICLE 13
       
Escrow
    27  
13.1 Escrow Agent
    27  
13.2 Interpleader Action
    27  

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ARTICLE 14
       
Miscellaneous
    28  
14.1 Confidentiality
    28  
14.2 Public Disclosure
    29  
14.3 Discharge of Obligations
    29  
14.4 Assignment
    29  
14.5 Notices
    30  
14.6 Modifications
    31  
14.7 Calculation of Time Periods
    31  
14.8 Successors and Assigns
    31  
14.9 Entire Agreement
    31  
14.10 Further Assurances
    31  
14.11 Counterparts; Facsimile Signatures
    31  
14.12 Severability
    32  
14.13 Applicable Law; Jurisdiction
    32  
14.14 No Third-Party Beneficiary
    32  
14.15 Captions
    32  
14.16 Construction
    32  
14.17 Termination of Agreement
    32  
14.18 Exculpation of Seller and Related Parties
    32  
14.19 Time of the Essence
    32  
14.20 Attorneys’ Fees
    32  
14.21 Like-Kind Exchange
    33  

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Purchase and sale agreement
     This Purchase and Sale Agreement (this “Agreement”) is made as of March 10, 2006 (the “Effective Date”), by and between KAN AM GRUND KAPITALANLAGEGESELLSCHAFT MBH, a German limited liability company (“Seller”), for the benefit of Kan Am US grundinvest Fonds, a German open-end real estate fund sponsored by Seller (the “Fund”) and HINES-SUMISEI U.S. CORE OFFICE PROPERTIES, LP, a Delaware limited partnership (“Purchaser”).
Witnesseth:
     In consideration of the Earnest Money (as defined in this Agreement), the mutual covenants of the parties, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Purchaser and Seller agree follows:
ARTICLE 1
Purchase and Sale
     1.1 Agreement of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey to Purchaser and Purchaser agrees to purchase the following:
     (a) that certain tract or parcel of land situated in Chicago, Illinois, more particularly described on Exhibit A, together with all and singular the rights and appurtenances pertaining to such property, including any right, title and interest of Seller in and to adjacent streets, alleys, or rights-of-way (the “Land”);
     (b) the buildings, structures, fixtures and other improvements located on the Land (the “Improvements”);
     (c) all of Seller’s right, title and interest in and to all tangible personal property upon the Land or within the Improvements, including specifically, without limitation, appliances, furniture, carpeting, draperies and curtains, tools and supplies, and other items of personal property owned by Seller and used exclusively in connection with the operation of the Land and the Improvements (the “Personal Property”);
     (d) all of Seller’s right, title and interest in and to all agreements listed and described on Exhibit B (the “Lease Schedule”), pursuant to which any portion of the Land or Improvements is used or occupied by anyone other than Seller (the “Leases”), including any guaranties of such Leases and any unapplied security deposits paid by tenants to Seller, together with any interest accrued thereon; and
     (e) all of Seller’s right, title and interest in and to (i) all assignable contracts and agreements (collectively, the “Service Contracts”) listed and described on Exhibit C (the “Contracts Schedule”), relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property which will extend beyond the date of Closing (as hereinafter

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defined), including specifically, without limitation, all assignable equipment leases, (ii) all assignable construction contracts and agreements listed and described on Exhibit C attached thereto and made a part hereof relating to construction at the Property which shall extend beyond the Closing Date (collectively, the “Construction Contracts”), (iii) all assignable warranties and guaranties (expressed or implied) existing with respect to the Improvements or the Personal Property, and (iv) all assignable trade names, logos, licenses, permits, air rights, certificates of occupancy, signs, trademarks, telephone listings and numbers (the “Intangibles”).
     1.2 Property Defined. The Land, the Improvements, the Personal Property, the Leases, the Service Contracts, the Construction Contracts and the Intangibles are sometimes referred to collectively as the “Property.”
     1.3 Permitted Exceptions. Seller will convey the Property subject to the matters which are, or are deemed to be, Permitted Exceptions pursuant to Article 3 hereof.

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