Purchase and Sale Agreement (2007)Full Document 

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PURCHASE AND SALE AGREEMENT

BETWEEN

THE FUND IX, FUND X, FUND XI, and REIT JOINT VENTURE

AS SELLER

AND

SENTINEL PROPERTIES, LLC,

AS PURCHASER

1315 WEST CENTURY DRIVE

LOUISVILLE, COLORADO

November 7, 2006


TABLE OF CONTENTS

 

 

ARTICLE 1. DEFINITIONS

   1
 

ARTICLE 2. PURCHASE AND SALE

   6
   

2.1.

  

Agreement to Sell and Purchase the Property

   6
   

2.2.

  

Permitted Exceptions

   6
   

2.3.

  

Earnest Money

   6
   

2.4.

  

Purchase Price

   6
   

2.5.

  

Independent Contract Consideration

   7
   

2.6.

  

Closing

   7
 

ARTICLE 3. Purchaser's Inspection and Review Rights

   7
   

3.1.

  

Due Diligence Inspections

   7
   

3.2.

  

Deliveries by Seller to Purchaser; Purchaser's Access to Property Records of Seller

   8
   

3.3.

  

Condition of the Property

   10
   

3.4.

  

Title and Survey

   10
   

3.5.

  

Financing

   11
   

3.6.

  

Termination of Agreement

   12
   

3.7.

  

Confidentiality

   12
 

ARTICLE 4. Representations, Warranties AND OTHER AGREEMENTS

   13
   

4.1.

  

Representations and Warranties of Seller

   13
   

4.2.

  

Knowledge Defined

   16
   

4.3.

  

Covenants and Agreements of Seller

   16
   

4.4.

  

Representations and Warranties of Purchaser

   17
 

ARTICLE 5. CLOSING DELIVERIES, CLOSING COSTS AND PRORATIONS

   18
   

5.1.

  

Seller's Closing Deliveries

   18
   

5.2.

  

Purchaser's Closing Deliveries

   19
   

5.3.

  

Closing Costs

   19
   

5.4.

  

Prorations and Credits

   20
 

ARTICLE 6. CONDITIONS TO CLOSING

   21
   

6.1.

  

Conditions Precedent to Purchaser's Obligations

   21
   

6.2.

  

Conditions Precedent to Seller's Obligations

   22
 

ARTICLE 7. CASUALTY AND CONDEMNATION

   22
   

7.1.

  

Casualty

   22
   

7.2.

  

Condemnation

   23
 

ARTICLE 8. DEFAULT AND REMEDIES

   24
   

8.1.

  

Purchaser's Default

   24
   

8.2.

  

Seller's Default

   24
 

ARTICLE 9. ASSIGNMENT

   25
   

9.1.

  

Assignment

   25
 

ARTICLE 10. BROKERAGE COMMISSIONS

   25
   

10.1.

  

Broker

   25
 

ARTICLE 11. INDEMNIFICATION

   26
   

11.1.

  

Indemnification by Seller

   26
   

11.2.

  

Indemnification by Purchaser

   26
   

11.3.

  

Limitations on Indemnification

   26
   

11.4.

  

Survival

   26


 

11.5.

  

Indemnification as Sole Remedy

   27

ARTICLE 12. MISCELLANEOUS

   27
 

12.1.

  

Notices

   27
 

12.2.

  

Possession

   28
 

12.3.

  

Time Periods

   28
 

12.4.

  

Publicity

   28
 

12.5.

  

Discharge of Obligations

   28
 

12.6.

  

Severability

   28
 

12.7.

  

Construction

   29
 

12.8.

  

Sale Notification Letters

   29
 

12.9.

  

Access to Records Following Closing

   29
 

12.10.

  

General Provisions

   29
 

12.11.

  

Like-Kind Exchange

   29
 

12.12.

  

Attorney's Fees

   30
 

12.13.

  

Counterparts

   30
 

12.14.

  

Effective Agreement

   30

 

ii


SCHEDULE OF EXHIBITS

 

Exhibit “A”   Description of Land
Exhibit “B”   List of Personal Property
Exhibit “C”   List of Existing Commission Agreements
Exhibit “D”   Form of Escrow Agreement
Exhibit “E”   Roof Specifications
Exhibit “F”   Existing Surveys
Exhibit “G”   Intentionally Deleted
Exhibit “H”   Title Exceptions
Exhibit “I”   Exception Schedule
Exhibit “J”   List of Service Contracts
Exhibit “K”   Property Tax Appeals


SCHEDULE OF CLOSING DOCUMENTS

 

Schedule 1   Form of Assignment and Assumption of Service Contracts
Schedule 2   Form of Bill of Sale to Personal Property
Schedule 3   Form of General Assignment of Seller’s Interest in Intangible Property
Schedule 4   Form of Seller’s Affidavit (for Purchaser’s Title Insurance Purposes)
Schedule 5   Form of Seller’s Certificate (as to Seller’s Representations and Warranties)
Schedule 6   Form of Seller’s FIRPTA Affidavit
Schedule 7   Form of Purchaser’s Certificate (as to Purchaser’s Representations and Warranties)


PURCHASE AND SALE AGREEMENT

1315 West Century Drive

Louisville, Colorado

THIS PURCHASE AND SALE AGREEMENT (the “Agreement”), made and entered into as of the 7th day of November 2006 between THE FUND IX, FUND X, FUND XI, and REIT JOINT VENTURE, a Georgia joint venture (“Seller”), and SENTINEL PROPERTIES, LLC, a Colorado limited liability company (together with its permitted successors and assigns, “Purchaser”).

W I T N E S S E T H:

WHEREAS, Seller desires to sell its fee simple estate in certain improved real property commonly known as “1315 West Century Drive” located in Louisville, Boulder County, Colorado, together with certain related personal and intangible property, and Purchaser desires to purchase such real, personal and intangible property; and

WHEREAS, the parties hereto desire to provide for said sale and purchase on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, for and in consideration of the premises, the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby covenant and agree as follows:

ARTICLE 1.

DEFINITIONS

For purposes of this Agreement, each of the following capitalized terms shall have the meaning ascribed to such terms as set forth below:

Assignment and Assumption of Service Contracts” shall mean the form of assignment and assumption of Service Contracts to be executed and delivered by Purchaser and Seller as to the Service Contracts at the Closing in the form attached hereto as SCHEDULE 1.

Basket Limitation” shall mean an amount equal to Twenty Thousand and No/100 Dollars ($20,000.00 U.S.).

Bill of Sale” shall mean the form of bill of sale to the Personal Property to be executed and delivered to Purchaser by Seller at the Closing in the form attached hereto as SCHEDULE 2.

Business Day” shall mean any day other than a Saturday, Sunday or other day on which banking institutions in the State of Georgia are authorized by law or executive action to close.

Cap Limitation” shall mean an amount equal to One Hundred Sixty-Six Thousand Five Hundred and No/100 Dollars ($166,500.00 U.S.).


Closing” shall mean the consummation of the purchase and sale of the Property pursuant to the terms of this Agreement.

Closing Date” shall have the meaning ascribed thereto in Section 2.6 hereof.

Closing Documents” shall mean any certificate, instrument or other document delivered pursuant to this Agreement.

Due Diligence Deliveries” shall have the meaning ascribed thereto in Section 3.2 hereof.

Due Diligence Material” shall have the meaning ascribed thereto in Section 3.7 hereof.

Earnest Money” shall mean the Initial Earnest Money, together with all interest which accrues thereon as provided in Section 2.3 hereof and in the Escrow Agreement.

Effective Date” shall mean the date upon which Seller and Purchaser shall have delivered a fully executed counterpart of this Agreement to the other, which date shall be inserted in the space provided on the cover page and page 1 hereof. For the purposes of determining the Effective Date, a facsimile or other electronic signature shall be deemed an original signature.

Environmental Law” shall mean any law, ordinance, rule, regulation, order, judgment, injunction or decree now or hereafter relating to pollution or substances or materials which are considered to be hazardous or toxic, including, without limitation, the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Comprehensive Environmental Response, Compensation and Liability Act (codified in various sections of 26 U.S.C., 33 U.S.C., 42 U.S.C. and 42 U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (21 U.S.C. § 349, 42 U.S.C. § 201 et seq. and § 300 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2061 et seq.), the Emergency Planning and Community Right to Know Act (42 U.S.C. § 1100 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Occupational Safety & Health Act (29 U.S.C. § 655 et seq.), and any state and local environmental laws, all amendments and supplements to any of the foregoing and all regulations and publications promulgated or issued pursuant thereto.

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