Securities Purchase Agreement (2008)Full Document 

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SECURITIES PURCHASE AGREEMENT

 

by and among

 

GMH COMMUNITIES TRUST,

 

GMH COMMUNITIES, LP

 

and

 

BALFOUR BEATTY, INC.

 

Dated as of February 11, 2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Table of Contents

 

 

Page

 

 

ARTICLE 1   DEFINITIONS

2

Section 1.01

 

Definitions

2

Section 1.02

 

Interpretation and Rules of Construction

10

 

 

ARTICLE 2   PURCHASE AND SALE OF THE EQUITY INTERESTS

11

Section 2.01

 

Purchase and Sale of Equity Interests

11

Section 2.02

 

Purchase Price; Pre-Closing Adjustment

11

Section 2.03

 

Closing; Delivery and Payment

12

Section 2.04

 

Taxes and Fees

13

Section 2.05

 

Further Actions

14

Section 2.06

 

Purchase Price Allocation

14

 

 

ARTICLE 3   REPRESENTATIONS AND WARRANTIES OF THE COMPANY

AND THE OPERATING PARTNERSHIP


14

Section 3.01

 

Organization, Standing and Authority

15

Section 3.02

 

Capital Stock of the Transferred Companies, Subsidiaries
and Project Entities; Military Housing Business

15

Section 3.03

 

Authority; No Violations; Consents and Approval

17

Section 3.04

 

Financial Information

18

Section 3.05

 

Absence of Certain Changes or Events

18

Section 3.06

 

No Undisclosed Material Liabilities

19

Section 3.07

 

No Default

19

Section 3.08

 

Compliance with Applicable Laws

20

Section 3.09

 

Litigation

20

Section 3.10

 

Taxes

21

Section 3.11

 

Pension and Benefit Plans; ERISA

22

Section 3.12

 

Labor and Employment Matters

24

Section 3.13

 

Intangible Property

24

Section 3.14

 

Environmental Matters

25

Section 3.15

 

Properties

27

Section 3.16

 

Insurance

28

Section 3.17

 

Brokers

29

Section 3.18

 

Material Contracts

29

Section 3.19

 

Transactions with Affiliates

30

Section 3.20

 

Title to Tangible Assets

30

Section 3.21

 

Books and Records

31

Section 3.22

 

No Other Representations or Warranties

31

 

 

ARTICLE 4   REPRESENTATIONS AND WARRANTIES OF BUYER

31

Section 4.01

 

Organization, Standing and Power of Buyer

31

Section 4.02

 

Authority; No Violations; Consents and Approvals

32

 

 

i



 

 

Section 4.03

 

Brokers

33

Section 4.04

 

Litigation

33

Section 4.05

 

Financing

33

Section 4.06

 

Securities Act

33

Section 4.07

 

No Other Representations or Warranties

33

 

 

ARTICLE 5   CERTAIN COVENANTS OF SELLERS AND BUYER

34

Section 5.01

 

Access to Information; Confidentiality

34

Section 5.02

 

Further Action; Commercially Reasonable Efforts

35

Section 5.03

 

Conduct of Business

36

Section 5.04

 

Post-Closing Obligations of Buyer to Certain Employees.

40

Section 5.05

 

Books; Record

42

Section 5.06

 

Closing Date Financial Information

42

Section 5.07

 

Further Assurances

42

Section 5.08

 

Compliance with WARN, etc

42

Section 5.09

 

Survival

43

Section 5.10

 

Tax Matters

43

Section 5.11

 

Credit Support; Affiliate Relations

46

Section 5.12

 

Certain Transactions

47

Section 5.13

 

Public Announcements

47

Section 5.14

 

College Park Management TRS, Inc

47

Section 5.15

 

No Shop

48

Section 5.16

 

Creation of Separate Employee Benefit Plans

48

Section 5.17

 

Use of GMH Marks

49

Section 5.18

 

Resignations

49

Section 5.19

 

Accounts, Safe Deposit Boxes, Powers of Attorney; Officers and Directors

49

Section 5.20

 

Intentionally Omitted

50

Section 5.21

 

Preferred Bidder Projects

50

Section 5.22

 

Post-Closing Reciprocal Indemnification

50

Section 5.23

 

Working Capital Statements

51

 

 

ARTICLE 6   CONDITIONS TO THE PURCHASE AND SALE

52

Section 6.01

 

Conditions to the Obligations of Each Party

52

Section 6.02

 

Conditions to the Obligations of Buyer

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