Document:

Exhibit 10.1

 

 

PURCHASE AND SALE AND ESCROW AGREEMENT

 

SELLER:

 

175 FREEMAN STREET INVESTORS LLC

 

 

PURCHASER:

 

THE HAMILTON COMPANY

 

 

PROPERTY:

 

DEXTER PARK APARTMENTS

175 FREEMAN STREET

BROOKLINE, MASSACHUSETTS

 

SEPTEMBER 1, 2009

 

 

Term
Sheet

 

	
  Purchaser:

  	
   

  	
  THE
  HAMILTON COMPANY

  
	
   

  	
   

  	
   

  
	
  Notice Address:

  	
   

  	
  39
  BRIGHTON AVENUE

  BOSTON, MA 02134

  ATTN: CARL A. VALERI

  PHONE: 617-783-0039

  FAX: 617-783-0568

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITH A
  COPY TO:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DIONNE &
  GASS LLP

  131 DARTMOUTH STREET, SUITE 501

  BOSTON, MASSACHUSETTS 02116

  ATTN: SALLY E. MICHAEL, ESQ.

  PHONE: 617-912-0920

  FAX: 617-723-4151

  
	
   

  	
   

  	
   

  
	
  Seller:

  	
   

  	
  175
  FREEMAN STREET INVESTORS LLC

  
	
   

  	
   

  	
   

  
	
  Notice Address:

  	
   

  	
  C/O
  UBS REALTY INVESTORS LLC

  242 TRUMBULL STREET

  HARTFORD, CONNECTICUT 06103-1212

  ATTN: GENERAL COUNSEL

  PHONE: 860-616-9158

  FAX: 860-616-9004 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITH A
  COPY TO:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  C/O
  UBS REALTY INVESTORS LLC

  242 TRUMBULL STREET

  HARTFORD, CONNECTICUT 06103-1212

  ATTN: JAYNE M. BRUNDAGE, EXEC. DIRECTOR

  PHONE: 860-616-9165

  FAX: 860-616-9010

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WITH
  AN ADDITIONAL COPY TO: 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BINGHAM
  MCCUTCHEN LLP

  1 STATE STREET

  HARTFORD, CONNECTICUT 06103

  ATTN: R. JEFFREY SMITH, ESQ.

  PHONE: 860-240-2759

  FAX: 860-240-2575

  

 

i

 

	
  Escrow Agent/Title
  Company:

  	
   

  	
  FIRST
  AMERICAN TITLE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
  Notice Address:

  	
   

  	
  101
  HUNTINGTON AVENUE

  BOSTON, MASSACHUSETTS 02199

  ATTN: MICHAEL J. DESMOND, VICE PRESIDENT

  PHONE: 617-772-9250

  FAX: 617-226-2987

  
	
   

  	
   

  	
   

  
	
  Property:

  	
   

  	
  DEXTER
  PARK APARTMENTS

  175 FREEMAN STREET

  BROOKLINE, MASSACHUSETTS

  
	
   

  	
   

  	
   

  
	
  Purchase Price:

  	
   

  	
  $129,500,000.00

  
	
   

  	
   

  	
   

  
	
  Deposit:

  	
   

  	
  $5,000,000.00

  
	
   

  	
   

  	
   

  
	
  Closing Date:

  	
   

  	
  October 28,
  2009, subject to extension by Seller up to November 24, 2009 per
  Section 1.5

  

 

 

PURCHASE AND SALE AND ESCROW AGREEMENT

 

THIS PURCHASE AND SALE AND ESCROW AGREEMENT (this “Agreement”)  dated as of
the 1st day of September, 2009, is made by and between 175 FREEMAN
STREET INVESTORS LLC, a Delaware limited liability company (“Seller”), with an office in care of UBS Realty Investors
LLC, 242 Trumbull Street, Hartford, Connecticut 06103, and THE HAMILTON
COMPANY,  INC., a
Massachusetts corporation or its permitted assignee pursuant to Section 11.4
hereof (“Purchaser”), with an office in care of
The Hamilton Company, 39 Brighton Avenue, Boston, Massachusetts 02134.

 

R  E
C  I  T  A  L  S :

 

Seller desires to sell certain improved real property
commonly known as Dexter Park Apartments located at 175 Freeman Street,
Brookline, Massachusetts, along with certain related personal and intangible
property, and Purchaser desires to purchase such real, personal and intangible
property.

 

A G R E E M E N T S
:

 

NOW, THEREFORE,
in consideration of the foregoing, of the covenants, promises and undertakings
set forth herein, and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller and Purchaser hereby agree
as follows:

 

1.     The
Property.

 

1.1.          Description.  Subject to the terms and conditions set forth
in this Agreement, and for the consideration herein set forth, Seller agrees to
sell and transfer, and Purchaser agrees to purchase and acquire, all of Seller’s
right, title, and interest in and to the following (collectively, the “Property”):

 

1.1.1.       Certain
real property (the “Land”) located
in Brookline, Norfolk County, Massachusetts and more specifically described in Exhibit 1.1.1
attached hereto;

 

1.1.2.       All
improvements located on the Land, including, but not limited to, a 409-unit
apartment building located at 175 Freeman Street, Brookline, Massachusetts and
commonly known as the “Dexter Park Apartments” (the “Building”),
and all other structures, parking areas, systems, fixtures, and utilities
associated with, and utilized by Seller in the ownership and operation of the
Building (all such improvements, together with the Building, being referred to
herein collectively as the “Improvements”);

 

1.1.3.       All
furniture, artwork, personal property, machinery, appliances, tools, building
materials, hardware, carpeting, apparatus, and 

 

1

 

equipment currently used in the operation, repair and maintenance of
the Land and Improvements and situated thereon (collectively, the “Personal Property”), generally described on  Exhibit 1.1.3 attached hereto,
but expressly excluding all furniture, artwork, personal property, equipment,
fixtures, appliances, machinery, tools, building materials, apparatus and all
other personal property owned by tenants of the Building, public or private
utilities or contractors working at the Property, except, in each of the
foregoing cases, to the extent of any reversionary or other interest of Seller
therein.  The Personal Property to be
conveyed is subject to depletions, replacements and additions in the ordinary
course of business and contractual and legal transfer and use restrictions;

 

1.1.4.       All
rights, easements, hereditaments, interests, and appurtenances belonging to or
inuring to the benefit of Seller and pertaining to the Land, if any, including
any development rights and water or mineral rights owned by or leased to
Seller, if any;

 

1.1.5.       Any
street or road abutting the Land to the center lines thereof;

 

1.1.6.       The
leases and occupancy agreements, as amended, prior to the date hereof,
including those in effect on the date of this Agreement which are identified on
the Schedule of Leases attached hereto as Exhibit 1.1.6, and any
new leases entered into pursuant to Section 4.4, which as of the Closing
Date (as hereinafter defined) affect all or any portion of the Land or
Improvements (collectively, the “Leases”), and
any security and other deposits and prepaid rent actually held by Seller as of
the Closing (as hereinafter defined) with respect to any such Leases;

 

1.1.7.       To the extent Purchaser elects to have the
same assigned to Purchaser pursuant to Section 3.3, and Subject to Section 3.3,
all assignable contracts and agreements and
equipment leases (collectively, the “Contracts”)
relating to the operation, repair or maintenance of the Land, Improvements or
Personal Property the terms of which extend beyond midnight of the day
preceding the Date of Closing (as hereinafter defined);

 

1.1.8.       To
the extent assignable without the consent of third parties, all trademarks,
trade names including the name “Dexter Park”, it being understood that Seller
has not registered any property rights in such name, domain names, permits,
approvals, entitlements and other intangible property (including the telephone
number for the Property) owned by Seller, if any, and used solely in connection
with the Property, including, without limitation, all of Seller’s right, title
and interest in any and all transferable, unexpired warranties and guaranties
(collectively, the “Intangible Personal
Property”); and

 

1.1.9.       All
transferable consents, authorizations, variances or waivers, licenses, permits
and approvals from any governmental or quasi-governmental agency, department,
board, commission, bureau or other entity or 

 

2

 

instrumentality held by the Seller in respect of the Land or
Improvements (collectively, the “Approvals”).

 

1.2.          Purchase Price.  The total purchase price to be paid for the
Property (“Purchase Price”) is ONE HUNDRED
TWENTY-NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($129,500,000.00).

 

1.3.          Payment.  Payment of the Purchase Price is to be made
as follows:

 

1.3.1.       (a)           Purchaser shall make an earnest money
non-refundable deposit of FIVE MILLION DOLLARS ($5,000,000.00) (the “Deposit”) prior to 5:00 p.m. (Eastern Time) of the
second business day immediately following the date of this Agreement.

 

(b)           The
Deposit shall be placed and held in escrow by First American Title Insurance
Company at 101 Huntington Avenue, Boston, Massachusetts (“Title Company”  and  “Escrow Agent”) in an account insured
by the Federal Deposit Insurance Corporation (“FDIC”)
and the Depositors Insurance Fund (“DIF”) using Purchaser’s tax identification number
at a mutually acceptable savings bank chartered in Massachusetts.  Any interest, if any, earned and accrued on
the Deposit shall be considered as part of the Deposit.  Except as otherwise provided in this
Agreement, the Deposit shall be applied to the Purchase Price at Closing.  Escrow Agent shall confirm receipt of the
Deposit.  The failure by Purchaser to
deposit with Escrow Agent any portion of the earnest money Deposit within the
time-frame for doing so shall at the option of Seller exercised by written
notice to Purchaser and without right of cure by Purchaser result in the
immediate, automatic cancellation and termination of this Agreement.

 

1.3.2.       At
Closing, the Purchaser shall pay Seller the Purchase Price, inclusive of the
Deposit and subject to adjustments and pro rations as expressly provided
herein, to a bank account designated by Seller via wire transfer or other form
of immediately available funds.

 

1.3.3.       In addition to being an all cash
transaction, Purchaser’s obligation to purchase the Property is not contingent
upon Purchaser’s ability to obtain financing for the purchase of the Property.

 

1.4.          Independent
Consideration.  Contemporaneously
with the execution and delivery of this Agreement, Purchaser has paid to the
Seller as further consideration for this Agreement, the amount of One Thousand
and No/Dollars ($1,000.00) (“Independent Consideration”)
in addition to the Deposit and independent of any other consideration provided
for hereunder, which Independent Consideration is fully earned by Seller and is
not refundable under any circumstances, but which shall be applied to the
Purchase Price at Closing.

 

3

 

1.5.          Closing.  Payment of the Purchase Price and closing
hereunder (the “Closing”) will take place pursuant
to a deed and money escrow closing on or before October 28, 2009, at the
offices of the Title Company at 10:00 a.m. local time or at such other
time and place as may be agreed upon in writing by Seller and Purchaser (the
aforesaid date, or such other date as may be agreed upon by the parties, being
referred to in this Agreement as the “Closing Date”
or the “Date of Closing”).  The parties agree that Closing can occur by
delivery of the closing documents and the Purchase Price to the Title Company
pursuant to written instruction letters and that the parties do not have to
physically attend the Closing.  The
Closing Date is of extreme importance to Seller as the Purchase Price is needed
by Seller on the Closing Date in order to satisfy certain obligations of
Seller, and Purchaser’s covenant to close the transaction contemplated by this
Agreement on the Closing Date constitutes a material inducement to the entry by
Seller into this Agreement.  Seller shall
have the one-time right to extend the Closing Date to a date not later than November 24,
2009 by delivering to Purchaser, at least seven (7) days prior to the
Closing Date, a written notice informing Purchaser of Seller’s election to
extend the Closing Date and specifying the extended Closing Date.

 

1.6.          Agreement to Convey.  Seller shall convey, and Purchaser shall
accept, title to the Land and Improvements by a Massachusetts quitclaim deed
and title to the Personal Property, by bill of sale, without warranty as to the
title or the condition of such personalty, with warranty of title as to claims
and demands of all persons claiming by, through, or under Seller, but against
none other.

 

2.     “As
Is” Purchase.

 

2.1.          No Reliance by Purchaser.

 

(a)                 As
a material inducement for Seller entering into this Agreement, Purchaser
expressly acknowledges and agrees that the Property is being sold, and
Purchaser is acquiring the Property, in its present condition and state of
repair.  Purchaser shall accept the
Property in an “AS IS” “WHERE IS”
condition and “WITH ALL FAULTS” as
of the date of this Agreement and as of the Closing.

 

(b)           Seller: (i) has informed Purchaser that the
Improvements are in excess of twenty (20) years in age and the Property was not
developed or constructed by Seller or any affiliate, agent or contractor of
Seller; and (ii) has delegated the day-to-day management of the Property
to an unaffiliated third party property management company (the “Manager”).

 

(c)           Purchaser understands and expressly acknowledges that
unknown liabilities may exist with respect to the Property, that Purchaser
explicitly took that possibility into account in determining and agreeing to
the Purchase Price, and that a portion of such consideration, having been
bargained for between the parties with the knowledge of the possibility of
liabilities, shall be 

 

4

 

given in
exchange for a full accord and satisfaction and discharge of Seller of all such
liabilities.

 

(d)           Purchaser
shall not rely on any warranties, promises, understandings or representations,
express or implied, of Seller, any Seller Party (as defined below) or any
agent, contractor or employee of Seller or a Seller Party relating to the Property,
the physical condition, development potential, operation, or income generated
by the Property or any other matter or things affected by or related to the
Property, except as may be expressly contained in this Agreement or the closing
documents identified herein, and no such representation or warranty shall be
implied with respect to the Property. 
Without limiting the generality of the foregoing disclaimer of
representations and warranties, except as may be expressly contained in this
Agreement or the closing documents identified herein, Seller specifically
disclaims any warranties or representations of any kind or character, express
or implied, with respect to (i) matters of title, (ii) environmental
matters relating to the Property or any portion thereof, including, without
limitation, the presence of Hazardous Materials, including asbestos, or any
harmful or toxic materials in, on, under or in the vicinity of the Property, (iii) geological
conditions, including, without limitation, subsidence, subsurface conditions,
water table, underground water reservoirs, limitations regarding the withdrawal
of water, and geologic faults and the resulting damage of past and/or future
faulting, (iv) whether, and the extent to which the Property or any
portion thereof is affected by any stream (surface or underground), body of
water, wetlands, flood prone area, flood plain, floodway or special flood
hazard, (v) drainage, (vi) soil conditions, including the existence
of instability, past soil repairs, soil additions or conditions of soil fill,
or susceptibility to landslides, or the sufficiency of any undershoring, (vii) the
presence of endangered species or any environmentally sensitive or protected
areas, (viii) zoning or building entitlements to which the Property or any
portion thereof may be subject, (ix) the availability of any utilities to
the Property or any portion thereof including, without limitation, water,
sewage, gas and electric, (x) usages of adjoining Property, (xi) access to
the Property or any portion thereof, (xii) the Property’s compliance with any
site plans or other plans and specifications, or the size, location, age, use,
design, quality, description, suitability, structural integrity or soundness,
state of repair, water-tightness, operation, habitability, quality of
construction or physical condition of the Property or any portion thereof
including, without limitation, the plumbing, sewer, heating, ventilating, air
conditioning and electrical systems, roofing, windows, balconies, walls, floors
and foundations, (xiii) except for the representations and warranties expressly
contained in this Agreement, the value, title or financial condition of the
Property, or any income, expenses, charges, liens, encumbrances, rights or
claims on or affecting or pertaining to the Property or any part thereof, (xiv)
the condition or use of the Property or compliance of the Property with any or
all past, present or future federal, state or local ordinances, rules,
regulations or laws, building, fire, parking or zoning ordinances, codes or
other similar laws, including without limitation the Americans with
Disabilities Act, (xv) the existence or non-existence 

 

5

 

of underground storage tanks, surface impoundments, or landfills, (xvi)
the merchantability of the Property or fitness of the Property for any
particular purpose, (xvii) tax consequences, or (xviii) any other matter or
thing with respect to the Property.  A “Seller Party” is defined as the member of Seller, the Manager,
UBS Realty Investors LLC (“UBS”) (Seller’s
advisor), and their respective officers, members, partner(s) and agents of
Seller, Seller’s member, and UBS.

 

(e)           Seller does not make,
has not made, and specifically disclaims any representation or warranty
regarding the suitability of the Property for condominium ownership, including,
without limitation, any representation or warranty regarding the statutes,
laws, codes, rules, regulations, orders or decrees governing the conversion of
the Property to condominium ownership. 
If Purchaser desires to convert the Property to condominium ownership,
Purchaser shall not, until after the Closing Date, (i) file any conversion
or condominium application, declaration, request for approval or other
instrument(s) with the governing authorities; (ii) notify tenants of
the Property of the proposed conversion; (iii) advertise or publicize the
proposed condominiums, or (iv) make or accept any offers, deposits or
reservations for condominium sales.  In
the event that Purchaser converts or attempts to convert the Property to
condominium ownership, Purchaser shall indemnify, defend and hold Seller free
and harmless from any loss, injury, damages, claims, liens, costs or expenses,
including attorneys’ fees and costs, arising out of or in connection with the
conversion or attempted conversion of the Property to condominium ownership,
including, without limitation, any claims from tenants of the Property and any
claims arising in connection with the physical condition of the Property.

 

2.1.1.       Purchaser
acknowledges and agrees that it has had the opportunity to fully inspect and
investigate the Property and matters relevant to the Property and shall make
all inquiries, inspections, tests, audits, studies and analyses that it deems
necessary or desirable in connection with the Property (subject to the
provisions of Section 3.1 of this Agreement) and approve or disapprove in
its sole discretion the results of its investigations and inspections
(including engineering, structural or other tests with respect to the condition
of the Property). Purchaser relied solely upon the results of Purchaser’s own
inspections and judgment and other information obtained or otherwise made
available to Purchaser, rather than any information of Seller, in determining
whether to purchase the Property.  Seller
was and is under no duty to make affirmative disclosures or inquiry regarding
any matter which may or may not be known to Seller or any Seller Party, and
Purchaser, for itself and for its successors and assigns, hereby specifically
waives and releases Seller and each Seller Party from any such duty that
otherwise might exist.

 

2.1.2  
Purchaser hereby waives and releases Seller, and each Seller Party, from
any and all present or future claims, demands, causes of actions, losses,
damages, including, without limitation, exemplary, punitive, indirect or
consequential, special or other damages, liabilities, costs and 

 

6

 

expenses (including attorney’s fees whether
suit is initiated or not) whether known or unknown, liquidated or contingent
(hereinafter collectively called the “Claims”) arising from or relating to
Property, including, without limitation, any of the matters set  forth in this Section 2, as well as (i) any
defects, errors or omissions in the design, construction, repair, or
maintenance of the Property, or (ii) any environmental and other physical
conditions affecting the Property whether the same are a result of negligence
or otherwise.  The release set forth in
this Section specifically includes, without limitation, any Claims arising
in connection with the presence or alleged presence of asbestos or harmful or
toxic substances in, on, under or about the Property including, without
limitation, any claims under or on account of (i) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as the same may
have been amended or may be amended from time to time and similar state
statutes and any regulations promulgated thereunder; (ii) any other
federal, state or local law, ordinance, rule or regulation, now or
hereafter in effect, that deals with or otherwise in any manner relates to,
environmental matters of any kind; or (iii) this Agreement or the common
law.  The release
set forth in this Section specifically includes, without limitation, any
claims under the Americans with Disabilities Act of 1990 or similar state or
local laws, as any of those laws may be amended from time to time and any
regulations, orders, rules of procedure or guidelines promulgated in
connection with such laws, regardless of whether they were in existence on the
date of this Agreement.  Purchaser
acknowledges that Purchaser has been represented by independent legal counsel
of Purchaser’s selection and Purchaser is granting this release of its own
volition and after consultation with Purchaser’s counsel.  The waiver and release of claims by Purchaser
in this Section does not obligate Purchaser to indemnify Seller or any
Seller Party against any such claims brought by third parties.

 

INITIALS: 
PURCHASER:

 

2.2.          Merger and
Survival.  All understandings and
agreements heretofore made between the parties or their respective agents or
representatives are merged in this Agreement and the Exhibits hereto annexed,
which alone fully and completely express their agreement, and this Agreement
has been entered into after full investigation, or with the Purchaser satisfied
with the opportunity afforded for investigation, neither party relying upon any
statement or representation by the other unless such statement or
representation is specifically embodied in this Agreement or the Exhibits
annexed hereto.   All
the terms and provisions of Section 2.1 and 2.2 shall survive Closing or
any termination of this Agreement.

 

3.     Inspections.

 

3.1.          Inspections.  Purchaser
acknowledges and agrees that it has had the opportunity to fully inspect
and investigate the Property and matters relevant to the Property and has made
all inquiries, inspections, tests, audits, studies and analyses that it deems
necessary or desirable in connection with the Property, and that Purchaser has

 

7

 

 

no further right to
conduct any further inspection or investigation of the Property, except solely
to the extent Purchaser’s mortgage lender reasonably requires the same in
connection with the underwriting of Purchaser’s acquisition financing for the
Property, to the extent described in this Section 3.1.

 

3.1.1.       To
the extent reasonably required by Purchaser’s mortgage lender in connection
with its underwriting of Purchaser’s acquisition financing for the Property,
Seller has made and shall make available (at no cost to Seller) to Purchaser
and its employees, representatives, counsel, access to the Property during
normal business hours and to documents, materials, reports, books, records and
files relating to the Property including, without limitation, Leases, tenant
files, tenant correspondence, and the financial information available to
Purchaser on the Dexter Park data site at http://www.peracon.com.  However, Seller shall have no ongoing
obligation to provide any “Excluded Items”
which shall mean all of the following materials, except to the extent
previously provided by Seller on the Dexter Park data site at
http://www.peracon.com as of the date of this Agreement:  (i) Seller’s financial analyses or
projections, Investment Committee information, including Seller’s
pre-acquisition due diligence materials, acquisition files on the Property and
the book value of the Property; (ii) material which is subject to attorney
client privilege or which is attorney work product; (iii) market
valuations, appraisals, insurance policies, any engineering, or inspection
reports or proposals or bids for repairs to the Property or any portion thereof
or any current operating budgets for the Property; (iv) financials of
Seller or any affiliate of Seller; (v) material which Seller is legally
required not to disclose; or (vi) any of Seller’s entity-related
instruments, files or correspondence, including tax returns.

 

3.1.2.       To
the extent reasonably required by Purchaser’s mortgage lender in connection
with its underwriting of Purchaser’s acquisition financing for the Property,
subject to the rights of tenants at the Property, Purchaser and the “Purchaser
Parties” (defined in Section 3.6 below) shall be given reasonable access
during normal business hours to the Property for the purpose of making further
non-intrusive physical or environmental inspections of the Property.  When making any non-intrusive physical or
environmental inspection(s) of the Property, Purchaser shall carry the
insurance coverages set out on Exhibit 3.1.2 attached hereto, and, upon
request of Seller, shall provide Seller with written evidence of same.  Purchaser and its agents shall not interfere
with the business activity of Manager, tenants, tenants’ customers or
employees, or any persons occupying or providing goods or services at the
Property, shall not reveal to any third party other than the Purchaser Parties
and persons approved by Seller the results of its inspections other than a
lender in connection with its decision to finance Purchaser’s acquisition of
the Property and provided that such lender has been advised of this
confidentiality restriction and has agreed to abide by it (except as may be
required by law), and shall restore promptly any physical damage caused by such
inspection(s).  Purchaser shall not
damage the Property and shall immediately restore the Property and remove
anything placed on the Property in connection with its inspection(s).

 

8

 

Purchaser shall give Seller two
(2) business days prior notice of its intention to conduct any inspection(s) or
tenant interviews, and Seller reserves the right to have a representative
present.  Purchaser shall provide Seller
with a copy of any inspection report in Purchaser’s possession promptly upon Seller’s
written request, which obligation shall survive Closing or any termination of
this Agreement.  Purchaser shall
indemnify, defend, and hold Seller and any Seller Party free and harmless from
any loss, injury, damage, claim, lien, cost or expense, including attorney’s
fees and costs, arising out of a breach of the foregoing by Purchaser in
connection with the inspection of the Property, or otherwise from the exercise
by Purchaser or its agents or representatives of the right of access under this
Section 3.1.2. (collectively, the “Purchaser’s Indemnity
Obligations”), which agreement shall survive Closing or termination
of this Agreement for a period of 12 months. 
Any inspections shall be at Purchaser’s expense.  Purchaser’s
Indemnity Obligations shall survive Closing or any termination of this
Agreement.

 

3.1.3.       Except
as otherwise provided in this Agreement, Seller makes no representations or
warranties as to the truth, accuracy or completeness of any materials, reports,
data or other information supplied to Purchaser (or indirectly to Purchaser’s
mortgage lender) by Seller or a Seller Party or any of their respective agents,
employees or contractors  in
connection with Purchaser’s inspection of the Property (e.g., that such
materials are current, complete, accurate or the final version thereof, or that
all such materials are in Seller’s possession). 
It is the parties’ express understanding and agreement that such
materials are provided only for Purchaser’s convenience, and Purchaser shall
rely exclusively on its own independent investigation and evaluation of every
aspect of the Property and not on any materials supplied by Seller or  a Seller Party or any of their respective
agents, employees or contractors. 
Purchaser expressly disclaims any intent to rely on any such materials
provided to it by Seller or a Seller Party or any of their respective agents,
employees or contractors in connection with its inspection and agrees that it
shall rely solely on its own independently developed or verified information
and Purchaser further acknowledges and agrees that such materials were provided
on the express condition that Purchaser shall make and independent verification
of the accuracy of such information.  The
terms and provisions of this Section 3.1.3 shall survive the Closing or
any termination of this Agreement.

 

3.2.         Title and Survey.  Prior to the execution of this Agreement,
Seller has delivered or caused to be delivered to Purchaser, and Purchaser
acknowledges receipt of, (i) a preliminary title report or a commitment
for an ALTA owner’s standard coverage owner’s policy of title insurance
insuring fee title to the Property, together with copies of all items shown as
exceptions to title therein, issued by the Title Company and identified as
Commitment No. 405838, dated July 26, 2009 (the “Title
Commitment”), and (ii) a copy of Seller’s survey of the Land
dated March 29, 2001 and last revised on April 11, 2001 (the “Survey”).  All matters
of title described on the Title Commitment and the Survey, other than delinquent
taxes and assessments and security instruments for existing mortgage
indebtedness secured by the Property, are hereby declared to be 

 

9

 

acceptable to Purchaser
and shall be deemed “Permitted Encumbrances”
hereunder.  At or prior to Closing,
Seller shall be obligated to: (a) pay all delinquent taxes and
assessments, (b) satisfy and/or
cause to be released the security instruments for existing indebtedness secured
by the Property, and (c) remove any exceptions caused by Seller’s
voluntary acts after July 26, 2009 and not approved by Purchaser.

 

Subject to Section 4.5
of this Agreement, Seller shall not, after the date of this Agreement, by
voluntary act, intentionally create any new easements, liens, deeds of trust,
mortgages, covenants, restrictions, agreements or any other encumbrances to
title to all or any portion of the Property without the prior written consent
of Purchaser.

 

Neither
Purchaser nor Seller shall incur any liability to the other in connection with
the selection of the Title Company or the surveyor retained in connection with
the transaction contemplated by this Agreement or in connection with the loss
by Title Company of the Deposit or any other amounts deposited by either party
into the escrow.

 

3.3.          Contracts.  On or before the date which is thirty (30)
days prior to the Closing Date, Purchaser shall notify Seller in writing if it
elects not to assume at Closing any of the Contracts which are identified on Exhibit 3.3
(the “Contracts”) attached
hereto.  Seller shall give notice of
termination of such disapproved Contract(s) as of the Closing Date;
provided that, if under the disapproved Contract(s) Seller has no right to
terminate same on or prior to Closing, or if a termination fee or charge is due
thereunder as a result of such termination, Purchaser shall (i) assume at
Closing all obligations thereunder from the Date of Closing until the
expiration dates of such Contracts or (ii) reimburse Seller for the
payment of the termination-related fee or charge, as applicable.  Unless Purchaser gives such written notice to
Seller in the time period described above, Purchaser will be deemed to have
approved same, and such Contracts will be assigned by Seller and assumed by
Purchaser at Closing.

 

3.4.          Intentionally Omitted.

 

3.5.          Lead-Based Paint.  Purchaser acknowledges that it has had
sufficient time in which to conduct a risk assessment or inspection of the
Property for the presence of lead-based paint and/or lead-based paint hazards,
and that by electing to proceed with the purchase of the Property
notwithstanding its termination right pursuant to this Section 3.5,
Purchaser shall accept the Property at Closing “AS IS, WHERE IS, WITH ALL
FAULTS” with respect to, among other things, the presence or possible presence
at the Property of lead-based paint and/or lead-based paint hazards.  Purchaser acknowledges that it has been
provided with the notice regarding lead-based paint and/or lead-based paint
hazards attached hereto as Exhibit 3.5, together with all other
deliveries required to be made by sellers of real property under applicable
law.

 

3.6.          Confidentiality.  Unless Seller specifically and expressly
otherwise agrees in writing, all information regarding the Property made
available to Purchaser by Seller or Seller’s agents or representatives (the “Proprietary Information”) is confidential (except to the
extent such information is already in the public domain) and 

 

10

 

shall not be disclosed, except
as may be required by law, to any other person except those due diligence
professionals or entities assisting Purchaser with the transaction, or
Purchaser’s lender, if any (collectively, the “Purchaser
Parties”) and then only upon Purchaser making such person aware of
the confidentiality restriction and procuring such person’s agreement to be
bound thereby.  If the purchase and sale
contemplated hereby fails to close for any reason whatsoever, Purchaser shall
return to Seller, or cause to be returned to Seller, all Proprietary
Information.  Unless the transaction
contemplated by this Agreement is consummated, Purchaser shall not use or allow
to be used any Proprietary Information for any purpose other than to determine
whether to proceed with the contemplated purchase, or if same is consummated,
in connection with the operation of the Property post-Closing.  The foregoing shall not be deemed to prevent
Purchaser from complying with laws, rules, regulations and court orders,
including, without limitation, governmental regulatory, disclosure, tax and
reporting requirements, which may require disclosure of Proprietary Information
otherwise required to be kept confidential pursuant to this Section 3.6,
but only to the extent such disclosure is required by any of the
foregoing.  Notwithstanding any other
term of this Agreement, the provisions of this Section 3.6 shall survive
Closing for a period of six (6) months, and shall survive any termination
of this Agreement indefinitely. 
Notwithstanding the foregoing, it shall not be a breach of this
Agreement to disclose such Proprietary Information to a person who already
knows such information.

 

4.     Prior
to Closing.

 

Until Closing,
Seller or Seller’s agent shall:

 

4.1.          Insurance.  Keep the Property insured against fire and
other hazards covered by extended coverage endorsement and commercial public
liability insurance against claims for bodily injury, death and property damage
occurring in, on or about the Property, substantially in accordance with
current coverages.

 

4.2.          Operation.  Subject to the Leases, operate and maintain
the Property in a businesslike manner and substantially in accordance with
Seller’s past practices with respect to the Property, and make any and all
repairs and replacements reasonably required to deliver the Property to
Purchaser at Closing in its present condition, normal wear and tear excepted,
provided that (i) Seller shall have no obligation to make extraordinary
capital expenditures or expenditures outside Seller’s normal course of business,
and (ii) in the event of any loss or damage to the Property as described
in Section 7, Seller shall repair the Property only if Seller is obligated
to do so under the Leases and if Seller so elects and then only to the extent
of available insurance proceeds. 
Purchaser shall not contact, deal with, or negotiate with tenants,
subtenants or prospective tenants or subtenants, of the Property without prior
written consent of Seller and shall notify Seller promptly if any tenant, or
prospective tenant, contacts Purchaser.

 

4.3.          New Contracts.  Enter into only those third party contracts
which are reasonably necessary to carry out its obligations under Section 4.2
and, provided 

 

11

 

such terms are available
on a commercially reasonable basis, which shall be cancelable on no more than
thirty (30) days written notice.

 

4.4.          New Leases.  Continue its present rental program and
efforts at the Property to rent apartment units and renew expiring leases.

 

4.5.          New Liens.  Not create any new encumbrance or lien
affecting the Property other than liens and encumbrances (i) that can be
discharged prior to Closing, and (ii) that in fact are discharged at
Seller’s expense prior to or at the Closing.

 

4.6.          Copies
of Written Notices. Seller shall, from
and after the date hereof, promptly provide Purchaser with copies of all
written notices received by Seller after the date hereof which assert any
material breach of Leases, agreements, laws, covenants or permits applicable to
the Property.

 

4.7.          Lease Terminations; Defaults.  Nothing herein shall in any way affect or
restrict the right of Seller to seek to enforce its rights under any Lease or
permit the early termination of any Lease; provided, however, that such action
is consistent with what a reasonable and prudent property owner would do under
the circumstances then existing.

 

4.8.          Notices of Lease; SNDA.  Seller shall use commercially reasonable
efforts to cooperate with Purchaser to obtain: (a) a release (in
recordable form) of that certain Notice of Lease dated May 1, 1992 between
Dexter Park Limited Partnership, as lessor, and Lundermac Co., Inc., as
lessee, recorded with the Norfolk County, Massachusetts Registry of Deeds in
Book 9381 at Page 545; (b) a release (in recordable form) of that
certain Notice of Lease dated May 27, 1997 between Dexter Park Limited
Partnership, as lessor, and Lundermac Co., Inc., as lessee, recorded with
the Norfolk County, Massachusetts Registry of Deeds in Book 11886 at Page 92;
and (c) a subordination agreement from Lundermac Co., Inc., as
lessee, in favor of Purchaser’s first mortgage lender providing acquisition
financing, in such form as may be reasonably requested by said mortgage lender,
pertaining to the lease identified in that certain Notice of Lease dated July 2,
2001 between 175 Freeman Street Investors, LLC, as lessor, and Lundermac Co., Inc.,
as lessee, recorded with the Norfolk County, Massachusetts Registry of Deeds in
Book 15635 at Page 446.  The ability
of Purchaser and/or Seller to obtain any of the foregoing documents is not a
condition precedent to the Closing, and nothing contained in this Section 4.8
shall be construed as excluding the above-described notices of lease from the
definition of “Permitted Exceptions”.

 

5.     Representations
and Warranties.

 

5.1.         By Seller.

 

(a)           Seller represents
and warrants to Purchaser that, except as otherwise disclosed to Purchaser:

 

5.1.1.       Seller is a limited liability
company duly organized, validly existing and in good standing under the laws of
the State of Delaware, is 

 

12

 

qualified to do business in the Commonwealth of Massachusetts, has duly
authorized the execution and performance of this Agreement, and such execution
and performance will not violate any material term of its operating agreement.

 

5.1.2.       Seller
has not, and as of the Closing Seller shall not have, (a) made a general
assignment for the benefit of creditors, (b) filed any voluntary petition
in bankruptcy or suffered the filing of any involuntary petition by Seller’s
creditors, (c) suffered the appointment of a receiver to take possession
of all, or substantially all, of Seller’s assets, which remains pending as of
such time, (d) suffered the attachment or other judicial seizure of all,
or substantially all, of Seller’s assets, which remains pending as of such
time, (e) admitted in writing its inability to pay its debts as they come
due, or (f) made an offer of settlement, extension or composition to its
creditors generally.

 

5.1.3.       Seller
is not, and as of the Closing shall not be, a “foreign person” as defined in Section 1445
of the Internal Revenue Code of 1986, as amended (the “Code”)
and any related regulations.

 

5.1.4.       Subject
to Section 11.17, below, Seller is acting as principal in this transaction
with authority to close the transaction. 
This Agreement has been duly executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights and by general principles of equity (whether applied in a
proceeding at law or in equity).

 

5.1.5.       To
Seller’s knowledge, no portion of the Property is the subject of a current,
pending or threatened condemnation proceeding which would have a materially
adverse impact on the Property.

 

5.1.6.       The
Schedule of Leases attached hereto as Exhibit 1.1.6 is a true and correct
copy, as of its date, of the rent roll used by and relied upon by Seller in its
ownership and management of the Property.

 

5.1.7.       There
is no action, suit, hearing, arbitration or proceeding pending, or to the best
of Seller’s knowledge, threatened, against Seller with respect to the Property,
before any court, tribunal or governmental authority.

 

5.1.8.       The
twelve (12) month actual-to-budget operating statements of the Property for
2007, 2008 and year-to-date 2009, as posted on the Dexter Park data site at
http://www.peracon.com, are the reports relied upon by Seller, its member and
its partners in their reporting for the operations of the Property during such
time periods.

 

(b)           Seller shall have no liability with
respect to a breach of the representations and warranties set forth above to
the extent that Purchaser 

 

13

 

proceeds with the closing of the transaction contemplated hereby with
actual knowledge of such breach or should have known of such breach, through
the exercise of reasonable diligence prior to the Closing Date.

 

5.2.         Condition Precedent.           It shall be a condition precedent to
Purchaser’s obligation to purchase the Property from Seller that (i) all
of Seller’s representations and warranties contained in or made pursuant to
this Agreement shall have been true and correct in all material respects when
made and remain true and correct in all material respects as of the Closing
Date, (ii) the Title Company shall be irrevocably and unconditionally
committed to issue the Title Policy to Purchaser upon payment of its premium
and other charges; and (iii) Seller shall have performed its obligations
pursuant to Section 4.2 hereof.

 

5.3.         By Purchaser.

 

(a)           Purchaser
represents and warrants to Seller that, except as otherwise disclosed to
Seller.

 

5.3.1.       Purchaser
is a Massachusetts corporation duly organized, validly existing and in good
standing under the laws of such State, is authorized to do business in the
Commonwealth of Massachusetts, has duly authorized the execution and performance
of this Agreement, and such execution, delivery, and performance will not
violate any material term of any of its constitutive documents.

 

5.3.2.       Purchaser
has not, and as of the Closing Purchaser shall not have (a) made a general
assignment for the benefit of creditors, (b) filed any voluntary petition
in bankruptcy or suffered the filing of any involuntary petition by Purchaser’s
creditors, (c) suffered the appointment of a receiver to take possession
of all, or substantially all, of Purchaser’s assets, which remains pending as
of such time, (d) suffered the attachment or other judicial seizure of
all, or substantially all, of Purchaser’s assets, which remains pending as of
such time, (e) admitted in writing its inability to pay its debts as they
come due, or (f) made an offer of settlement, extension or composition to
its creditors generally.

 

5.3.3.       Purchaser
is not, and as of the Closing shall not be, a “foreign person” as defined in Section 1445
of the Code and any related regulations.

 

5.3.4.       Purchaser
is acting as principal in this transaction with authority to close the
transaction.  This Agreement is the valid
and legally binding obligation of Purchaser.

 

5.3.5.       Purchaser
is a sophisticated investor in commercial real estate and has and will perform
such due diligence of the Property and its condition (financial and otherwise)
as Purchaser deems appropriate.

 

14

 

5.3.6.       Purchaser
has reviewed the Leases, Contracts, expenses and other matters relating to the
Property and based upon the representations and warranties of Seller expressly
contained in this Agreement and its own investigations, inspections, tests and
studies, determined whether to purchase the Property and assume Seller’s rights
and obligations under the Leases, Contracts and otherwise with respect to the
Property.

 

5.3.7.       Unless
otherwise disclosed to Seller in writing, neither Purchaser nor any affiliate
of or principal in Purchaser is other than a citizen of, or partnership, corporation
or other form of legal person domesticated in the United States of America.

 

5.3.8.       Neither
Purchaser nor any principal of Purchaser who owns a 20% or greater direct or
indirect ownership interest in Purchaser is a person or entity described by Section 1
of Executive Order 13,224, and neither Purchaser nor any such principal of
Purchaser engages in any dealings or transactions, or is otherwise associated,
with any such persons or entities including the governments of Cuba, Iran,
North Korea, Myanmar, Sudan, Syria, and Venezuela.

 

5.3.9.       The execution, delivery and performance by
Purchaser of its obligations under this Agreement do not and will not
contravene or constitute a default under any provisions of applicable law or
regulation or any agreement, judgment, injunction, order, decree or other
instrument binding on Purchaser.

 

(b)           Purchaser shall have no liability with respect to a breach
of the representations and warranties set forth above to the extent that Seller
proceeds with the closing of the transaction contemplated hereby with actual
knowledge of such breach or should have known of such breach, through the
exercise of reasonable diligence prior to the Closing Date.

 

5.3.10.     Purchaser
is entering into this transaction solely for commercial purposes, and is a
sophisticated business entity with significant experience in purchasing real
property similar to the Property located in the metropolitan Boston real estate
market.  Purchaser acknowledges that its
representations and warranties are a material inducement to Seller’s
willingness to agree to enter into this transaction with Purchaser, and that
but for the representations and warranties contained in this paragraph, Seller
would not execute and deliver this Agreement.

 

5.4.         Condition Precedent. It shall be
a condition precedent to Seller’s obligation to sell the Property to Purchaser
that all of Purchaser’s representations and warranties contained in or made
pursuant to this Agreement shall have been true and correct in all material
respects when made and shall be true and correct in all material respects as of
the Closing Date.  At the Closing,
Purchaser and Seller shall each deliver to the other Seller a certificate
certifying that each of its representations
and warranties in this Agreement is true and correct as of the Closing Date.

 

15

 

5.5.         Mutual Representation.

 

(a)           Each of Seller and
Purchaser represents to the other that it has had no dealings, negotiations, or
consultations on its own behalf, or for its benefit, with any broker,
representative, employee, agent or other intermediary except Cushman and
Wakefield of Massachusetts, Inc., in connection with this Agreement or the
sale of the Property.  Seller and
Purchaser agree that each will indemnify, defend and hold the other free and
harmless from the claims of any other broker(s), representative(s),
employee(s), agent(s) or other intermediary(ies) claiming to have
represented Seller or Purchaser, respectively, or otherwise to be entitled to compensation
in connection with this Agreement or the sale of the Property.  This provision shall survive Closing for six (6) months.

 

(b)           Neither Seller nor Purchaser will knowingly take, or agree
to or commit to take, any action that would make any representation or warranty
made by such party inaccurate in any material respect at or prior to the
Closing Date.

 

6.     Costs
and Prorations.

 

6.1.         Purpose and Intent.  Except as expressly provided herein, the
purpose and intent of this Agreement is that Seller shall bear all expenses of
ownership and operation of the Property and shall receive all income therefrom
accruing through midnight at the end of the day preceding the Closing Date, and
Purchaser shall bear all such expenses and receive all such income accruing
thereafter.  This provision shall survive
Closing.

 

6.2.         Purchaser’s Costs.  Purchaser shall pay the following costs of
closing this transaction:

 

6.2.1.       The
fees and disbursements of its counsel, inspecting architect and engineer, if
any;

 

6.2.2.       Any escrow
fees;

 

6.2.3.       Any
sales or use taxes relating to the transfer of Personal Property to Purchaser;

 

6.2.4.       The
cost of the issuance of any policy of title insurance issued in connection with
this transaction and any updates to the Title Commitment, including, without
limitation, any additional premium charge(s) for endorsements and/or
deletion(s) of exception items and any cancellation charge(s) imposed
by Title Company in the event the policy of title insurance contemplated by the
Title Commitment is not issued.

 

6.2.5.       The
cost of any update to the copy of the Survey provided by Seller to Purchaser;

 

16

 

6.2.6.       Any
recording fees relating to the deed to be delivered by Seller hereunder and
Purchaser’s other closing documents and Purchaser’s lender’s documents;

 

6.2.7.       Any
other expense(s) incurred by Purchaser or its representative(s) in
inspecting or evaluating the Property or closing this transaction; and

 

6.3.         Seller’s Costs.  Seller shall pay the following costs of
closing this transaction:

 

6.3.1.       The
fees and disbursements of its counsel;

 

6.3.2.       The
cost of any deed excise stamp taxes;

 

6.3.3.       Any
recording fees relating to the documents to be recorded by Seller in order to
clear title in the manner described by this Agreement;

 

6.3.4.       The
broker’s fee to the extent any such fee is payable pursuant to the separate
agreement with Cushman and Wakefield of Massachusetts, Inc. dated May 21,
2009.

 

6.4.         Prorations.  Collected Rents and any other amounts (including,
without limitation, payment of base rent, ground rent, parking income and
reimbursements of Property operating costs) paid by tenants applicable to the
month in which the Date of Closing occurs or prepaid by tenants for months
after the month in which the Date of Closing occurs shall be prorated as of the
Date of Closing and be adjusted against the Purchase Price on the basis of a
schedule (the “Rent Schedule”) which shall be
prepared by Seller and delivered to Purchaser. 
The Rent Schedule shall set forth (i) rents and other amounts
payable applicable to the month in which the Date of Closing occurs, (ii) rents
and other amounts collected by Seller applicable to the month in which the Date
of Closing occurs, and (iii) rents and other amounts due but uncollected
and applicable to the month in which the Date of Closing occurs, (the latter
unpaid obligations being referred to herein as the “Current
Delinquencies”), as well as rental and other payment delinquencies
(excluding those applicable to the month in which the Date of Closing occurs)
which are owed to Seller but uncollected as of the Date of Closing (“Delinquencies”). 
Purchaser shall receive a credit against the Purchase Price for any cash
security and other deposits with respect to the Leases, which deposits are held
by Seller and have not been applied or forfeited as of Date of Closing.  Such cash deposits will be kept by Seller.

 

6.4.1.       Vault
charges, sewer charges, utility charges and operating expenses actually paid or
payable by Seller as of the Date of Closing shall be prorated as of the Date of
Closing and adjusted against the Purchase Price, provided that within ninety
(90) days after the Closing, Purchaser and Seller shall make a further
adjustment for such charges which may have accrued or been incurred prior to
the Date of Closing, but not collected or paid at that date.  All

 

17

 

prorations shall be made on a 365-day calendar year basis, using actual
number of days in the month.

 

6.4.2.       Purchaser
shall pay at Closing, the fair market value of the fuel oil stored in any
storage tanks located at the Property, such amount to be determined by Supreme
Energy (Seller’s existing fuel oil retailer) based on a meter reading provided
by Seller’s engineer within the seven (7) days immediately preceding the
Closing Date (but in no event later than three (3) days immediately
preceding the Closing Date).

 

6.5.         Taxes.     Real estate taxes, personal property taxes, special assessments
(and installments thereof) and other governmental taxes and charges relating to
the Property, including annual or periodic permit fees, (collectively, “Taxes”) payable during the year in which Closing occurs
shall be prorated as of the Date of Closing and adjusted against the Purchase
Price.  If Closing occurs before the
actual Taxes payable during such year are known, the proration of Taxes shall
be upon the basis of Taxes for the Property payable by Seller during the
immediately preceding year; provided, however, that if the Taxes payable during
the year in which Closing occurs are thereafter determined to be more or less
than the Taxes payable during the preceding year (after any appeal of the
assessed valuation thereof is concluded), Seller and Purchaser promptly, except
in the case of an ongoing tax protest), shall adjust the proration of Taxes and
Seller or Purchaser, as the case may be, shall pay to the other any amount
required as a result of such adjustment, and further provided that any
reproration of real estate taxes shall take into account only increases in the
tax rate or millage, i.e., any portion of any real estate tax increase
attributable to an increase in assessed value shall not be taken into
account.  This covenant shall not merge
with the deed delivered hereunder but shall survive the Closing.

 

6.6.         In General.

 

(a)           Any
other costs or charges of closing this transaction not specifically mentioned
in this Agreement shall be paid and adjusted in accordance with local custom in
Norfolk County, Massachusetts.

 

(b)   (i) None
of Seller’s insurance policies relating to the Property will be assigned to
Purchaser, and Purchaser shall be responsible for arranging for its own
insurance as of the Closing Date; (ii) utilities paid by Seller, including
telephone, electricity, water and gas, shall be read on as close as possible before the Closing Date and Purchaser with
cooperation from Seller’s on-site Manager, if necessary, shall be responsible
for all the necessary actions needed to arrange for utilities to be transferred
to the name of Purchaser on the Closing Date, including the posting of any
required deposits (it being understood, however, that Seller shall be entitled
to a credit at the Closing for any utility deposits which it or its
predecessors have made prior to the Closing Date, to the extent the same are
transferred to Purchaser, and Seller shall be entitled to recover and retain
from the providers of such utilities any refunds or overpayments to the extent
applicable to the period prior to and including the Closing Date, and any
utility 

 

18

 

deposits for which it does not receive a credit
hereunder); and (iii) on the Closing Date, the Property will not be
subject to any financing obtained by Seller or its predecessors unless
Purchaser has expressly agreed to assume such financing.  Accordingly, there will be no prorations for
insurance, utilities (except to the extent provided above for utility
deposits), payroll or debt service.  In
the event a meter reading is unavailable for any particular utility or is read
on a date other than the Closing Date, such utility bill shall be prorated in
the manner provided in Section 6.1.

 

6.7.          Closing Adjustment.  Escrow Agent shall prepare a closing
statement on the basis set out above, and shall endeavor to deliver such
computation to Purchaser and Seller at least two (2) business days prior
to Closing.

 

6.8.          Post-Closing Reconciliation.  If any of the aforesaid prorations cannot be
calculated accurately as of the Closing Date, then they shall be calculated as
soon after the Closing Date as feasible, but in any event no later than December 31,
2009. Notwithstanding any provision contained in this Agreement to the
contrary, after the expiration of said period, no further adjustments, credits
or prorations shall be made or allocated between the parties under this
Agreement for any of the items listed in this Section 6, except for any
delinquencies due to Seller and except for a reproration of Taxes pursuant to Section 6.5
above in the event the Taxes for the year of Closing are not known as of the
Closing Date.

 

6.9.          Post-Closing Collections.  Purchaser shall use its best efforts during
the ninety (90) day period immediately following the Date of Closing to collect
Current Delinquencies and Delinquencies. 
Amounts collected from tenants who or which, as of the Date of Closing,
were obligors with respect to Current Delinquencies and/or Delinquencies shall
be applied first to satisfy such tenants’ obligations for the payment period
during which collection occurred, second to satisfy Current Delinquencies,
third to satisfy Delinquencies, and the balance to satisfy any other rental obligations
of such tenants to Purchaser. Amounts collected and applicable to satisfy
Current Delinquencies shall be paid promptly to Seller to the extent of Seller’s
pro-rata entitlement thereto, and amounts collected and applicable to satisfy
Delinquencies shall be promptly paid to Seller.

 

At the end of
the ninety (90) day period following the Date of Closing, Purchaser shall
prepare and deliver to Seller a statement (the “Collection
Statement”) identifying all payments collected during such ninety
(90) days from tenants who were listed on the Rent Schedule prepared and
delivered pursuant to Section 6.4 hereof as obligors on Current
Delinquencies or Delinquencies.  If any
uncollected Current Delinquencies or then unsatisfied Delinquencies exist,
Purchaser hereby agrees to assign to Seller any and all rights afforded the
obligee with respect thereto (with respect to Current Delinquencies, to the
extent of Seller’s pro-rata entitlement thereto), whereupon Seller shall be
entitled to take such steps, including the right to file suit, as Seller in its
sole and absolute discretion deems necessary or appropriate to collect such
sums, excepting only the right to dispossess any tenant still in possession of
its further right to occupy the premises demised to it.  Such assignment shall be effective 

 

19

 

automatically, without the need for execution or delivery of any
instrument of assignment.  Upon request
of Seller, however, Purchaser shall execute and deliver to Seller such
instrument(s) as Seller may reasonably request to confirm such
assignment.  Purchaser shall, at no cost
to Purchaser, cooperate with Seller in any manner reasonably requested by
Seller in connection with any such collection effort.

 

Purchaser
shall keep and maintain at all times full and accurate books of account and
records adequate to reflect correctly total rental and other payments collected
under each of the Leases, and all such books and records shall be kept and
shall be available to Seller for at least one year after the Date of
Closing.  Seller shall have the right to
inspect, copy and audit such books of account and records at Seller’s expense,
during reasonable business hours, and upon reasonable notice to Purchaser,
whether such books and records are in the possession of Purchaser or any agent
of Purchaser for the purpose of verifying the accuracy of the Collection
Statement and the rental and any other payments collected by Purchaser, which
were earned during Seller’s ownership period, and which should have been paid
to Seller pursuant to this Section  6.9.

 

6.10.        Other Items.  All cash in any operating, reserve or other
property accounts on the Closing Date shall belong to Seller.

 

6.11.        Survival.  The provisions of this Section 6 shall
survive Closing.

 

7.     Damage,
Destruction or Condemnation.

 

7.1.          Material Event.  If, prior to Closing, twenty percent (20%) or
more of the net rentable area of the Building or all access to the Property are
rendered completely untenantable, or are destroyed or taken under power of
eminent domain, Purchaser may elect to terminate this Agreement by giving
written notice of its election to Seller within five (5) business days after receiving notice of such destruction
or taking.  If Purchaser does not give
such written notice within such period, this transaction shall be consummated
on the date and at the Purchase Price provided for in Section 1, and
Seller shall assign to Purchaser the physical damage proceeds of any insurance
policy(ies) payable to Seller, or Seller’s portion of any condemnation award,
as applicable, in both cases up to the amount of the Purchase Price plus
one-half of any amounts in excess thereof, and including any rights of Seller
to prosecute, settle, compromise, or appeal such payments, and, if an insured
casualty, pay to Purchaser the amount of any deductible, if not previously paid
by Seller, but not to exceed the amount of the loss.

 

7.2.          Immaterial Event.  If, prior to Closing, less than twenty
percent (20%) of the net rentable area of the Building is rendered completely
untenantable or are destroyed, or are taken under power of eminent domain,
Purchaser shall close this transaction on the date and at the Purchase Price
agreed upon in Section 1, and Seller shall assign to Purchaser its interest
in the physical damage proceeds of any insurance policies payable to Seller,
and including any rights of Seller to prosecute, settle, compromise, or appeal
such payments, and, if an insured casualty, pay to Purchaser 

 

20

 

the amount of any
deductible not previously paid by Seller but not to exceed the amount of the
loss.

 

7.3.         Cooperation.  Seller and Purchaser, as may be appropriate,
shall cooperate in prosecuting, settling, and compromising any such condemnation
award and insurance claim.

 

7.4.         Termination and Return of Deposit.  If Purchaser elects to terminate this
Agreement pursuant to this Section 7, and if Purchaser is not, on the date
of such election, in material default of its obligation to have closed under
the Agreement, Seller shall promptly direct the Title Company to return the
Deposit to Purchaser.

 

8.     Notices.  Any notice, consent, or approval required or
permitted to be given hereunder shall be in writing and shall be deemed to be
given when hand delivered or one (1) business day after pickup by Federal
Express, UPS overnight, or similar overnight express service, or on the date
when delivered by facsimile transmission with written acknowledgment of
receipt, in any case addressed to the parties at their respective addresses for
notice set forth in the Term Sheet of this Agreement, or, in each case, to such
other address as either party may from time to time designate by giving notice
in writing to the other party, provided that neither party shall designate as
its address a post office box or other address which does not accept overnight
delivery.  Notice hereunder may be given
by counsel acting on behalf of either party. 
Telephone numbers are for informational purposes only.  Effective notice will be deemed given only as
provided above.  Notice given to Seller
by e-mail is not considered proper notice under this section.

 

9.     Closing
and Escrow.

 

9.1.         Escrow Instructions.  Upon execution of this Agreement, the parties
shall deliver an executed counterpart of this Agreement to the Title Company to
serve as the instructions to the Title Company as the Escrow Agent for
consummation of the transaction contemplated herein, and Title Company shall
execute this Agreement to acknowledge acceptance of the escrow and receipt of
the Deposit.  Seller and Purchaser shall
execute such additional and supplementary escrow instructions as may be
appropriate to enable the Title Company to comply with the terms of this Agreement,
provided, however, that in the event of any conflict between the provisions of
this Agreement and any supplementary escrow instructions, the terms of this
Agreement shall prevail.

 

9.2.         Duties of Escrow Agent.

 

(a)           Escrow
Agent is acting solely as a stakeholder under this Section 9.2.  Escrow Agent’s duties shall be determined
solely by the express provisions hereof and are purely ministerial in nature.

 

(b)           During
the term of this Agreement, Escrow Agent shall hold and deliver the Deposit
strictly in accordance with the terms and provisions of 

 

21

 

this Agreement and shall not commingle the Deposit with any funds of
Escrow Agent or others.  Escrow Agent
shall invest the Deposit in one or more interest-bearing accounts using Purchaser’s tax identification number
at a mutually acceptable savings bank located chartered in the Commonwealth of
Massachusetts, and such account(s) shall be fully insured by the FDIC
and/or the DIF and have no penalty for early withdrawal.  Escrow Agent shall disburse the Deposit in
strict accordance with the written instructions of the parties hereto.  Escrow Agent shall not disburse the Deposit
without at least one business day’s notice to Seller.  All costs incurred by Escrow Agent in
connection with its obligations under this Section 9.2(b) shall be
borne solely by Purchaser.  In no event
shall Escrow Agent’s use of multiple accounts to hold the Deposit result in
Escrow Agent having to deliver the net sales proceeds to Seller in more than
one (1) wire transfer.

 

Escrow
Agent’s initials:

 

(c)   Intentionally
Omitted.

 

(d)           If
this Agreement is terminated by Purchaser (pursuant to Section 7.1 or Section 10.2
hereof) or by the mutual written agreement of Seller and Purchaser, or if
Escrow Agent is unable at any time to determine to whom the Deposit should be
delivered, then Escrow Agent shall deliver the deposit in accordance with the
joint written instructions of the Seller and Purchaser.  If written instructions are not received by
Escrow Agent within ten (10) days after Escrow Agent has served a written
request for instructions upon both Seller and Purchaser, the Escrow Agent shall
have the right to pay the Deposit into any court of competent jurisdiction in
the state where the Property is located and to interplead Seller and
Purchaser.  Upon the filing of the
interpleader action, Escrow Agent shall be discharged from any further
obligations in connection with this Agreement.

 

(e)           If
costs or expenses are incurred by Escrow Agent because of litigation or a
dispute between Seller and Purchaser concerning this Agreement (which
litigation or dispute does not involve any action, omission or failure to act
by Title Company), Seller and Purchaser shall each pay Escrow Agent one-half of
Escrow Agent’s reasonable costs and expenses. 
Except for such costs and expenses, no fee or charge shall be due or
payable to Escrow Agent for its services under this Agreement.

 

(f)            Escrow
Agent undertakes only to perform the duties and obligations imposed upon it
under the terms of this Agreement, and to do so in strict accordance with the
Agreement, and does not undertake to perform any of the covenants, terms and
provisions applicable to Seller and Purchaser.

 

(g)           Purchaser
and Seller acknowledge and agree that Escrow Agent has assumed no liability
except for gross negligence or willful misconduct and that Escrow Agent may
seek advice from its own counsel and shall be fully 

 

22

 

protected in any action taken by it in good faith in accordance with
the opinion of its counsel.

 

(h)           The
conditions to the Closing shall be the Escrow Agent’s receipt of funds and
documents as described in this Section 9.2.  Upon receipt of such funds and documents,
Escrow Agent shall deliver the items as described in this Agreement.

 

(i)            All
acts and documents required of Purchaser or Seller in order to close the escrow
pursuant hereto shall be deposited with Escrow Agent no later than 5:00 p.m.
(Eastern Time) on the day immediately preceding the Closing Date, and shall be
available for release at Closing.  In
addition, all funds required from Purchaser in order to close the escrow
pursuant hereto shall be deposited with Escrow Agent no later than 10:00 a.m.
(Eastern Time) on the Closing Date, and shall be available for immediate
distribution at Closing.  Notwithstanding
the foregoing, the Purchaser will not be deemed in default under this Agreement
for delivery of the funds required to consummate the purchase of the Property
in accordance with this Agreement after 10:00 a.m. (Eastern Time) on the
Closing Date, so long as the total amount of funds due and owing to Seller are
actually received by Seller via wire transfer to an account designated by
Seller (as confirmed by Federal Reserve reference number) on the Closing Date.  If Purchaser fails to deposit all funds
sufficiently early on the Closing Date so that Seller does not receive its net
funds prior to 3:00 p.m. (Eastern Time) on the Closing Date, Purchaser
shall pay Seller $3,750.00, representing Seller’s anticipated loss of the
benefit of overnight investment of the net proceeds.

 

(j)            Notwithstanding anything to the
contrary in this Section 9.2, in the event the Closing does not occur on
or before the Closing Date, the Escrow Agent shall, unless it is notified by
both parties to the contrary within five (5) business days after the
Closing Date, return to the depositor thereof items which were deposited
pursuant to this Agreement.  The
foregoing instruction to return items does not include funds or the Deposit.  Any such return shall not, however, relieve
either party of any liability it may have relating to its wrongful failure to
close.

 

(k)           Escrow Agent shall not be responsible
or liable in any manner whatsoever for the correctness, genuineness or validity
of any document or instrument, or any signature thereon, deposited with or
delivered to Escrow Agent pursuant to this Agreement.  Escrow Agent may act in reliance upon any
such document or instrument, which Escrow Agent in good faith believes to be
genuine and duly authorized, without investigation as to the correctness,
genuineness or validity thereof.  Escrow
Agent shall not be liable except for the performance of such duties and
obligations as are specifically set forth in this Agreement and no implied
covenants or obligations shall be read into this Agreement against Escrow
Agent.  Escrow Agent is not chargeable
with knowledge, and has no duties with respect to any other agreements between 

 

23

 

Seller and
Purchaser.  Escrow Agent shall not be
responsible to see to the correct application of any funds disbursed by it
pursuant to this Agreement.

 

(l)            Seller and Purchaser acknowledge
that the transaction contemplated hereunder shall be closed by delivering
executed documents and the other closing deliveries to the Escrow Agent in
accordance with customary written instructions.

 

(m)          Upon request by Seller and Purchaser,
Escrow Agent shall prepare a closing or settlement statement.

 

(n)           Escrow Agent is familiar with and
understands the U.S. Foreign Corrupt Practices Act, 15 U.S.C. Sec. 78dd-1, et
seq., and any other anti-corruption laws and regulations relevant to the
Agreement and has not and will not violate these laws.

 

(o)           The
President of the United States has issued Executive Order 13224, in conjunction
with the Office of Foreign Assets Control (“OFAC”).  This order bans any United States person from
doing business with any person, entity or group specially designated by the
U.S. Secretary of State or Secretary of the Treasury as a terrorist or
terrorist entity.  OFAC maintains a list
of these persons, entities and groups, known as the Specially Designated
Nationals and Blocked Persons List (“SDN List”).  In order to comply with this order, Escrow
Agent shall not enter into contracts or other agreements with any person whose
name appears on the SDN List.

 

9.3.         Seller’s Deliveries.

 

(a)           Seller shall deliver or cause to be delivered, either at
the Closing through the Title Company or by making available at the Property,
as appropriate, the following items and original documents, each executed and,
if required, acknowledged, as appropriate:

 

9.3.1.       A
Massachusetts quitclaim deed to the Property, in the form attached hereto as Exhibit 9.3.1.

 

9.3.2.       A
bill of sale in the form attached hereto as Exhibit 9.3.2 conveying
the Personal Property.

 

9.3.3.       (i) The Leases and any new
leases entered into pursuant to Section 4.4; (ii) the Rent Schedule,
including a listing of any tenant security and other deposits and prepaid rents
held by Seller with respect to the Property; (iii) the cash security
deposits and letters of credit held by Seller as security under the Leases, but
only to the extent the same have not been applied in accordance with the Leases
or returned to tenants and relate to tenants occupying space at the Property on
the Closing Date pursuant to Leases then in effect and any accrued interest thereon to the extent required by
applicable Massachusetts law; 

 

24

 

(iv) an assignment of such Leases, deposits, and prepaid rents by
way of an Assignment and Assumption of Leases in the form attached hereto as Exhibit 9.3.3; and (v) a
certificate from the Manager, dated as of the Closing Date, certifying to
Purchaser that the Leases for the Property which are on file in the management office
thereof and which have been made available to Purchaser are used by and relied
upon by Manager in connection with the leasing operations conducted by Manager,
in its capacity as property manager for the Property.

 

9.3.4.       (i) Copies
of all Contracts which Purchaser has elected to assume or which are not
terminable by the Seller without fee or penalty on or before the Date of
Closing; and (ii) an assignment of such Contracts to Purchaser by way of
an assignment and assumption agreement, in the form attached hereto as Exhibit 9.3.4.

 

9.3.5.       An
assignment to Purchaser of Seller’s right, title and interest, if any, in any
names specific to the Property, including any domain name(s), permits,
approvals, entitlements, and other intangible property owned by Seller and used
solely in connection with the Property in the form attached hereto as Exhibit 9.3.5.

 

9.3.6.       An
assignment of all unexpired, transferable warranties and guarantees then in
effect, if any, with respect to the Improvements or any repairs or renovations
to such Improvements and Personal Property being conveyed hereunder, which
assignment is in the form attached hereto as Exhibit 9.3.6.

 

9.3.7.       Seller
shall deliver to Purchaser at Closing, the originals of all Leases, tenant
files, and, to the extent in Seller’s possession and to the extent available,
the Contracts and Equipment Leases being assumed by Purchaser, and any building
plans, specifications and operating manuals relating to the Property.  All other books and records requested by
Purchaser will be provided at Seller’s sole discretion and at Purchaser’s sole
cost.  These materials may be delivered
at the Property.

 

9.3.8.       An
affidavit pursuant to the Foreign Investment and Real Property Tax Act in the
form attached hereto as Exhibit 9.3.8.

 

9.3.9.       Appropriate
evidence of authorization as required by the Title Company.

 

9.3.10.     A
statement updating the Seller’s representations and warranties and certifying
the same as true and correct as of the Closing Date.

 

9.3.11.     Any deed excise stamp tax declaration
in the form required by applicable governmental authorities.

 

9.3.12.     The
Closing Statement (prepared by the Title Company).

 

25

 

9.3.13.     Keys
or key codes to all locks at the Property, which will be delivered at the
Property.

 

9.3.14.     An owners affidavit and gap
indemnification agreement in form and substance as may be acceptable to
Purchaser and the Title Company, but in any event in sufficient form to permit
the Title Company to issue a standard owner’s policy of title insurance and to
issue the same at Closing, notwithstanding that the deed conveying the Land
shall not have been recorded at such time. 
In addition, Seller shall deliver such other documents as may be
reasonably required by the Title Company and which do not expand or create
Seller liability beyond that provided for by this Agreement as may be agreed
upon by Seller and Purchaser to consummate the transaction, provided, however,
that Seller shall not be obligated to provide to Title Company any other
affidavits, indemnities, certifications, covenants, obligations or liabilities
beyond those that Seller is providing to Purchaser under this Agreement or
which go beyond that required for the issuance by Title Company of a standard
owner’s policy of title insurance.

 

9.4.         Purchaser’s Deliveries.  At Closing, Purchaser shall (i) pay
Seller the Purchase Price through the Escrow Agent and provide any instruments
required by the Title Company from a purchaser of real property; and (ii) execute
and deliver the agreements referred to in Sections 9.3.3(iii) and
9.3.4(ii), any deed excise stamp tax declarations in the form required by
applicable governmental authorities, a statement updating the Purchaser’s
representations and warranties and certifying the same as true and correct as
of the Closing Date, and the Closing Statement.

 

9.5.         Mutual Obligations.  Seller and Purchaser shall each deposit such
other instruments as are reasonably required (i) to confirm their
respective authority to close this transaction, (ii) by Escrow Agent, or (iii) otherwise
to consummate the sale and acquisition of the Property in accordance with the
terms hereof (provided that in no event shall any such documents increase the
liability of Purchaser or Seller). 
Seller and Purchaser hereby designate Escrow Agent as the “Reporting Person” for the transaction pursuant to Section 6045(e) of
the Internal Revenue Code and the regulations promulgated thereunder and agree
to execute such documentation as is reasonably necessary to effectuate such
designation.

 

9.6.         Possession.  Purchaser shall be entitled to possession of
the Property upon conclusion of the Closing, subject to the Permitted
Encumbrances.

 

9.7.         Insurance.  Seller shall terminate its policies of
insurance as of noon on the Date of Closing and Purchaser shall be responsible
for obtaining its own insurance thereafter.

 

9.8.         Utility Service and Deposits.  To the extent any utility account is in
Seller’s name, Seller shall be entitled to the return of any deposit(s) and/or
bond(s) posted by it or its predecessor with any utility company and
Purchaser shall notify each 

 

26

 

utility company serving
the Property to terminate any Seller account, effective at noon on the Date of
Closing, such notice to be in the form of Exhibit 9.8 attached
hereto.

 

9.9.         Notice Letters.  Subsequent to Closing, Seller shall provide
to Purchaser copies of form letters to tenants and to service, maintenance,
supply and other contractors serving the Property, whose Leases and Contracts
(respectively) were assigned to Purchaser at Closing, advising them of the sale
of the Property to Purchaser, notifying
them that security deposits have been transferred to Purchaser, and
directing to Purchaser all rents and bills for the services and supplies,
respectively, provided to the Property on and after the Date of Closing.

 

10.  Breach;
Default; Failure of Condition.

 

10.1.       Purchaser
Default.  If Purchaser shall breach
or default under this Agreement and, with respect to breaches or defaults for
which a cure period is applicable, fail to cure such breach or default within
such cure period, Seller may terminate this Agreement, the Deposit shall be
retained by Seller as liquidated damages, without the necessity of proving
actual damages, and both parties shall be relieved of and released from any
further liability hereunder except for Purchaser’s Indemnity Obligations set
forth in Sections 3.1.2 and 3.6 hereof and matters which, by the express
provision thereof in this Agreement, survive termination of the Agreement.  Seller and Purchaser agree that Seller’s
damages in the event of such breach or default will be difficult or impractical
to ascertain, the Deposit is a fair and reasonable estimate of such damages as
of the date of this Agreement, and the Deposit is to be retained by Seller as
agreed and liquidated damages in light of Seller’s removal of the Property from
the market and the costs incurred by Seller and shall not constitute a penalty
or a forfeiture.

 

10.1.1.     The
parties hereto agree that it would be difficult to prove actual damages
resulting from a breach of this Agreement and that the Deposit represents a
fair and equitable estimation of Seller’s damages in the event of a breach or
default by Purchaser.  The parties
further agree that this liquidated damage clause is included herein as a result
of negotiation by the parties at the express request of Purchaser and that
Purchaser hereby waives any right to challenge the enforceability of this
clause or its reasonability, and Purchaser hereby waives any and all rights it
may have at law or equity to dispute Seller’s right to the liquidated damages
provided for herein.  In addition, the
parties waive any right to asset the lack of mutuality of remedy as a defense
in the event of any litigation arising out of this Agreement.

 

Seller’s initials:                                                                  Purchaser’s
initials:

 

10.2.       Seller Default.  If Seller shall refuse or fail to convey the
Property as herein provided for any reason other than (i) a breach or
default by Purchaser under this Agreement and the expiration of the cure
period, if any, or (ii) any other provision of this Agreement which
permits Seller to terminate this Agreement or otherwise relieves Seller of the
obligation to convey the Property, Purchaser shall elect as its sole and
exclusive

 

27

 

remedy hereunder either
to terminate the Agreement and recover the Deposit or to specifically enforce
the Seller’s obligations to convey the Property in accordance with this
Agreement, Purchaser hereby expressly waiving any right to recover exemplary,
punitive, indirect, consequential, special or other damages and all other
remedies available at law or at equity with regard to any such failure; provided
that no action in specific performance shall seek to require the Seller
to do any of the following (other than as required as pursuant to this
Agreement): (a) change the condition of the Property or restore the same
after any fire or other casualty; (b) subject to Sections 3.2
and 10.3 hereof, expend money or post a bond to remove a title encumbrance
or defect or correct any matter shown on a survey of the Property; or (c) secure
any permit, approval, or consent with respect to the Property or Seller’s
conveyance of the Property.

 

10.3.       Failure of Condition.  If prior to Closing Seller discloses to
Purchaser or Purchaser discovers that title to the Property is subject to
defects, limitations or encumbrances other than Permitted Encumbrances, then
Purchaser shall promptly give Seller written notice of any objection
thereto.  In such event, the Closing
shall be postponed for up to thirty (30) days and Seller shall use reasonable
efforts to cure such objection, provided that Purchaser may not object to the
state of title of the Property on the basis of any Permitted Encumbrance(s).

 

10.3.1.     Subject
to Section 3.2 and Section 10.3 hereof, Seller shall have no
obligation to cure any title objection. 
If Purchaser fails to waive an objection within five (5) days after
notice from Seller that Seller is unable to cure the objection prior to the
extended Closing Date, this Agreement shall terminate automatically and  the Title Company shall promptly return the
Deposit to Purchaser, and neither party shall have any liability to the other
except for Purchaser’s obligations set forth in Section  3.1.2 and 3.6
hereof.  For the purposes of this
Agreement, any title defect, limitation or encumbrance other than a Permitted
Encumbrance shall be deemed cured if Title Company or another title insurance
company reasonably acceptable to Purchaser and authorized to do business in Massachusetts,
agrees to issue an ALTA owner’s title insurance policy to Purchaser in the
amount of the Purchase Price, which policy takes no exception for such defect,
limitation or encumbrance and is issued for no additional premium or for an
additional premium if Seller agrees to pay such additional premium upon
Closing.

 

10.4.       Representation
or Warranty Untrue.  Prior to
Closing, if any material
representation or warranty of any party is discovered to have been false, in
any material respect, when made, then such discovery shall be an event of
default by the party that made the false representation or warranty.  If, after the date of this Agreement and
before the Closing, (a) such false representation or warranty shall
constitute a condition that such defaulting party is capable of curing and (b) such
defaulting party notifies the non-defaulting party in writing that it intends
to cure such false representation or warranty, then such defaulting party shall
have the right to cure such false representation or warranty prior to Closing
and, if such condition is not cured by Closing (or if such defaulting party
notifies the non-defaulting party that such condition can not be cured), then
the non-defaulting party shall have all of the rights set forth in 

 

28

 

Article 10.  However, if the non-defaulting party
consummates the Closing with knowledge of such false representation or
warranty, such non-defaulting party shall be conclusively deemed to have waived
such default and accepted such uncured condition, in which event the
non-defaulting party shall have no rights or remedies under this Agreement
regarding such default and such representation and warranty shall automatically
be deemed amended to fully and accurately state the actual facts and conditions
then known or existing so that no fact or condition first discovered or notice
received or events occurring after the Effective Date can or will constitute a
breach by the defaulting party of any of the warranties or representations.

 

11.          Miscellaneous.

 

11.1.        Entire Agreement.  This Agreement, together with the Exhibits
attached hereto, all of which are incorporated by reference, constitutes the
entire agreement between the parties with respect to the subject matter hereof,
and no alteration, modification or interpretation hereof shall be binding
unless in writing and signed by both parties. 
The parties are not bound by any agreements, understandings, provisions,
conditions, representations or warranties (whether written or oral and whether
made by Seller or any agent, employee or principal of seller or any other
party) other than as are expressly set forth and stipulated in this Agreement.

 

11.2.        Severability.  If any provision of this Agreement or
application to any party or circumstances shall be determined by any court of
competent jurisdiction to be invalid and unenforceable to any extent, the
remainder of this Agreement or the application of such provision to such person
or circumstances, other than those as to which it is so determined invalid or
unenforceable, shall not be affected thereby, and each provision hereof shall
be valid and shall be enforced to the fullest extent permitted by law.

 

11.3.        Applicable Law.  This Agreement shall be construed and
enforced in accordance with the laws of the Commonwealth of Massachusetts.

 

11.4.        Assignability.  Purchaser shall not assign this Agreement
without first obtaining Seller’s written consent, provided however, that Purchaser may, without Seller’s consent, but
with no less than five (5) business days written notice to Seller which
notice will include the name of such assignee and the names of all principals
and entities owning twenty-five percent (25%) or more of such assignee, assign
this Agreement to an “Affiliate” of Purchaser or designate an “Affiliate” to
take title, to the Property at Closing.  “Affiliate” means any entity that is owned
or controlled by an entity of which the general partners, managers or voting
members are at least fifty-one (51%) percent owned or controlled by principals
of Purchaser, and shall include trusts or other estate planning entities
created for the benefit of such principals and their immediate family
members.  Any assignment in
contravention of this provision shall be void. 
No assignment, whether or not permitted, shall release the Purchaser
herein named from any obligation or liability under this Agreement.  The Purchaser and any permitted assignee
shall be jointly and severally liable for all such obligations and
liabilities.  Any permitted assignee
shall be deemed to have made any and all representations and 

 

29

 

warranties made by
Purchaser hereunder, as if the assignee were the original signatory
hereto.  Purchaser acknowledges that any
such assignee shall be subject to
Seller’s verification that such assignee can make the representation set forth
in Section 5.3.8.

 

If Purchaser requests Seller’s consent to an assignment of this
Agreement, Purchaser shall (i) notify Seller in writing of the proposed
assignment; (ii) provide Seller with the name and address of the proposed
assignee; (iii) provide Seller with financial information, including
current financial statements, for the proposed assignee; and (iv) provide
Seller with a copy of the proposed instrument of assignment.

 

Any transfer or assignment of any membership or other beneficial
interest of Purchaser in excess of forty-nine percent (49%) shall be deemed an
assignment within the meaning of this Section 11.4.

 

11.5.       Successors Bound.  This Agreement shall be binding upon and
inure to the benefit of Purchaser and Seller and their respective successors
and permitted assigns.

 

11.6.       Captions.  The captions in this Agreement are inserted
only as a matter of convenience and for reference and in no way define, limit
or describe the scope of this Agreement or the scope or content of any of its
provisions.

 

11.7.       Attorneys’ Fees.  In the event of any litigation arising out of
this Agreement, the prevailing party shall be entitled to recover from the
other party reasonable attorneys’ and paralegals’ fees and costs actually
incurred, whether incurred out of court, at trial, on appeal or in any
bankruptcy, arbitration or administrative proceedings.

 

11.8.       No Relationship. Nothing contained
in this Agreement shall be construed to create a fiduciary, partnership, joint
venture, principal/agent or other relationship between the parties or their
successors or assigns, and the parties owe no duty to each other except as
expressly stated in this Agreement.

 

11.9.       Time of Essence. Time is of the
essence for all purposes of this Agreement.

 

11.10.     Counterparts.  This Agreement may be executed and delivered
in any number of counterparts, each of which so executed and delivered shall be
deemed to be an original and all of which shall constitute one and the same
instrument.  Each counterpart may be
delivered by facsimile transmission provided that a signed original is provided
promptly.  The signature page of any
counterpart may be detached therefrom without impairing the legal effect of the
signature(s) thereon provided such signature page is attached to any
other counterpart identical thereto.

 

11.11.     Recordation.  Neither this Agreement nor any memorandum or
notice hereof shall be recorded. 
Purchaser shall (i) not, and hereby waives its rights to, file any
notice of lis pendens or other form of notice of pendency or other instrument
against the Property or any portion thereof in connection herewith and (ii) indemnify

 

30

 

Seller against all
liabilities (including reasonable attorneys’ fees, expenses and disbursements)
incurred by Seller by reason of the filing by Purchaser or its agent of any
such memorandum, notice or other instrument. 
If Purchaser fails to comply with the terms hereof by recording or
attempting to record this Agreement or a notice thereof, such act shall not
operate to bind or cloud the title to the Property.  Seller shall, nevertheless, have the right
forthwith to institute appropriate legal proceedings to have the same removed
from record.  If Purchaser or any agent,
broker or counsel acting for Purchaser shall cause or permit this Agreement or
a copy thereof to be filed in an office or place of public record, Seller, at
its option, and in addition to Seller’s other rights and remedies, may treat
such act as a default of this Agreement on the part of the Purchaser.  However, the filing of this Agreement in any
lawsuit or other proceedings in which such document is relevant or material
shall not be deemed to be a violation of this Section 11.11.

 

11.12.      Proper Execution. The submission by
Seller to Purchaser of this Agreement in unsigned form shall be deemed to be a
submission solely for Purchaser’s consideration and not for acceptance and execution.  Such submission shall have no binding force
and effect, shall not constitute an option, and shall not confer any rights
upon Purchaser or impose any obligations upon Seller irrespective of any
reliance thereon, change of position or partial performance.  The submission by Seller of this Agreement
for execution by Purchaser and the actual execution and delivery thereof by
Purchaser to Seller shall similarly have no binding force and effect on Seller
unless and until Seller shall have executed this Agreement and the Deposit
shall have been received by the Title Company and a counterpart thereof shall
have been delivered to Purchaser. 
Signatures of this Agreement transmitted by facsimile or via electronic
mail (*.pdf or similar file types) shall be valid and effective to bind the
party so signing.  Each party agrees to
promptly deliver an execution original to this Agreement, any amendment
thereto, or any notice sent via facsimile or via electronic mail with its
actual signature to the other party, but a failure to do so shall not affect
the enforceability of this Agreement, amendment or notice, it being expressly
agreed that each party to this Agreement shall be bound by its own telecopied
or electronically mailed signature in all instances and shall accept the
telecopied or electronically mailed signature of the other party to this
agreement.

 

11.13.      Tax Protest.  If, as a result of any tax protest or
otherwise, any refund or reduction of any real property or other tax or
assessment relating to the Property during the period for which, under the
terms of this Agreement, Seller is responsible, Seller shall be entitled to
receive or retain such refund or the benefit of such reduction, less equitable
prorated costs of collection.

 

11.14.      Best Knowledge; Received Written Notice.  Whenever a representation, warranty or other
statement is made in this Agreement or in any document or instrument to be
delivered at Closing pursuant to this Agreement, on the basis of the best of
knowledge of Seller, or is qualified by Seller having received written notice,
such representation, warranty or other statement is made with the exclusion of
any facts disclosed to or otherwise known by Purchaser, and is made solely on
the basis of the current, conscious, and actual, as distinguished from implied,
imputed and 

 

31

 

constructive, knowledge
on the date that such representation or warranty is made, without inquiry or
investigation or duty thereof, of Robert Wilkins, (the officer of Seller having responsibility for the
management of the Property), without attribution to such specific officers of
facts and matters otherwise within the personal knowledge of any other officers
or employees of Seller or third parties, including but not limited to tenants
and property managers of the  Property, and
excluding, whether or not actually  known by such
specific officers, any matter known to Purchaser or its agents at the time of
Closing.  So qualifying Seller’s
knowledge shall in no event give rise to any personal liability on the part of
Robert Wilkins or any other officer or employee of any Seller Party.

 

11.15.     Survival and Limitation of
Representations and Warranties.

 

(a)           The representations
and warranties of Seller set forth in this Agreement or any documents executed
in connection herewith shall survive the Closing, but, any action, suit or
proceeding brought by Purchaser against Seller under this Agreement or under
any such documents shall be commenced and served, if at all, on or before the
date which is six (6) months after the date of Closing and, if not
commenced and served on or before such date, thereafter shall be void and of no
force or effect.

 

(b)           Subject
to Section 10.2, above, the aggregate
liability of the Seller with  respect to all
claims arising in connection with the representations and warranties of Seller
which survive the Closing and any other obligations of Seller which expressly
survive Closing under this Agreement shall not exceed FIVE HUNDRED THOUSAND AND
NO/100 DOLLARS ($500,000.00), and in no event shall any liability arise in
connection therewith unless and except to the extent that the direct damages to
Purchaser by reason of all such claims, collectively, exceed $50,000.00.  In no event shall Seller be liable to Purchaser
for any consequential, exemplary, punitive, or any other type of damages (other
than direct damages) or for unrealized expectations or other similar claims in
respect of any such claims, and in every case Purchaser’s recovery for any
claims shall be net of any insurance proceeds and any indemnity, contribution,
or other similar payment recovered or recoverable by Purchaser from any
insurance company or other third party. 
Seller’s total liability with respect to a default by Seller for refusal
or failure to convey the Property shall not be governed by this Section but
shall instead be governed by the terms and provisions of Section 10.2 of
this Agreement.

 

11.16.     Intentionally Omitted.

 

11.17.     Time to Execute and Deliver.  This Agreement shall be void if one fully
executed copy is not received by Seller on or before 5:00 p.m. Eastern
Time on September 1, 2009 and/or if Seller shall not have received notice
from the Escrow Agent that the Deposit shall have been received by the Escrow
Agent, on or before 5:00 p.m. Eastern Time on the date which is two
business days immediately following the date of this Agreement.

 

32

 

11.18.     No Personal Liability.  Any liability for participation in this
transaction shall remain with Purchaser and Seller only and in no event shall
there be any personal liability on the part of any officer, manager or employee
of the parties, their partners or their constituent members or entities.  This provision shall survive Closing or any
termination of this Agreement.

 

11.19.     Date of Agreement.  All references to the date of this Agreement
mean the date upon which both Seller and Purchaser have executed this
Agreement.

 

11.20.     Date of Performance.  If the date of performance of any obligation
or the expiration of any time period provided herein should fall on a Saturday,
Sunday or legal holiday, then said obligation shall be due and owing, and said
time period shall expire, on the first day thereafter which is not a Saturday,
Sunday or legal holiday.  Any reference
in this Agreement to a “business day” shall mean any day of the week other than
a Saturday, Sunday or legal holiday. 
Except as may otherwise be set forth herein, any performance provided
for herein shall be timely made if completed not later than 5:00 p.m.
(Eastern Time) on the day of performance.

 

11.21.     Waiver.  Excuse or waiver of the performance by the
other party of any obligation under this Agreement shall only be effective if
evidenced by a written statement signed by the party so excusing or
waiving.  No delay in exercising any
right or remedy shall constitute a waiver thereof, and no waiver by Seller or
Purchaser of the breach of any covenant of this Agreement shall be construed as
a waiver of any preceding or succeeding breach of the same or any other
covenant or condition of this Agreement. 
All of the provisions of this Section 11 shall survive the Closing,
or in the event that the Closing does not occur, any termination or
cancellation of this Agreement.

 

11.22.     Interpretation.  This Agreement is the result of negotiations
between the parties who are experienced in sophisticated and complex matters
similar to the transaction contemplated by this Agreement and is entered into
by both parties in reliance upon the economic and legal bargains contained
herein and shall be interpreted and construed in a fair and impartial manner
without regard to such factors as the party which prepared the Agreement, the
relative bargaining powers of the parties or the domicile of any party.  Seller and Purchaser are each represented by
legal counsel competent of advising them of their obligations and liabilities
hereunder.  The presentation and
negotiation of this Agreement shall not be construed as any offer by Seller to
sell, or any offer by Purchaser to purchase, the Property or obligate either
party unless and until this Agreement has been duly executed and delivered to
both parties.

 

11.23.     Public Disclosure.  Following Closing, Purchaser and Seller shall
have the right to announce the acquisition and sale of the Property in the
media (including “tombstones”), provided that (i) Purchaser shall consult
with Seller with respect to any such notice or publication and implement any
comments or objections of Seller, and (ii) the Purchase Price is not
disclosed and neither party discloses the name of the other party, directly or
indirectly.  Seller may also publicize
the sale of the Property in the ordinary course of its business.  The provisions of this Section shall 

 

33

 

survive Closing.  Neither
party shall publicly disclose the terms of this transaction without the prior
written consent of the other party, except (after written notice to the other
party) as may be required by law or as required to enforce the terms and
provisions hereof.

 

11.24.      Governmental
Approvals.  Nothing in this Agreement
shall be construed as authorizing Purchaser to apply for a zoning change,
variance, subdivision map, lot line adjustment, or other discretionary governmental
act, approval or permit with respect to the Property prior to Closing, and
Purchaser shall not do so without the prior written approval of Seller, which
approval may be withheld in Seller’s sole and absolute discretion.  Purchaser also agrees not to submit any
reports, studies or other documents, including without limitation, plans and
specifications, impact statements for water, sewage, drainage or traffic,
environmental review forms, or energy conservation checklists to any
governmental agency, or any amendment or modification to any such instruments
or documents prior to Closing, unless first approved in writing by Seller,
which approval Seller may withhold in its sole, absolute discretion, provided,
however, that Purchaser shall have the right without the consent of Seller to
request a zoning confirmation letter or certificate from the Brookline,
Massachusetts zoning authority.  
Purchaser’s obligation to purchase the Property shall not be subject to
or conditioned upon Purchaser obtaining any variance(s), zoning amendment,
subdivision map, lot line adjustment, condominium approval or other
discretionary governmental act, approval or permit.

 

11.25.      Purchaser Not a Successor of Seller.  Purchaser is not and shall not be deemed to
be a successor to Seller.  Purchaser is
acquiring only the Property and not an ongoing business enterprise.

 

11.26.      Termination.  Upon termination of this Agreement in
accordance with its terms (and not as a result of a default by either party),
neither party shall have any further rights or obligations or liabilities,
except those rights and obligations arising under any sections of this
Agreement which expressly survive termination of this Agreement.  It is hereby agreed that, in addition to
express statements of survivability, all references in this Agreement to Seller’s
or Escrow Agent’s obligation to return the Deposit to Purchaser shall survive
the termination of this Agreement.

 

11.27.      Construction.  As used herein, the words “include”, “including”,
and similar terms shall be construed as if followed by the phrase “without
limitation”.

 

11.28.      No Third Party Beneficiary.  This Agreement is not intended to give or
confer any benefits, rights, privileges, claims, actions, or remedies to any
person or entity as a third party beneficiary.

 

34

 

IN WITNESS WHEREOF,
the undersigned Seller has executed and delivered this Purchase and Sale and
Escrow Agreement as an instrument under seal as of the date set forth above.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

IN WITNESS WHEREOF,
the undersigned Purchaser has executed and delivered this Purchase and Sale and
Escrow Agreement as an instrument under seal as of the date set forth above.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  THE HAMILTON COMPANY, INC.

  
	
   

  	
  a Massachusetts
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

An original, fully executed
copy of this Agreement, together with the Deposit, has been received by the
Title Company this          day of
                        ,
2009, and by execution hereof the Title Company hereby covenants and agrees to
be bound by the terms of this Agreement.

 

	
   

  	
  ESCROW
  AGENT/TITLE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST
  AMERICAN TITLE INSURANCE

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Michael J. Desmond

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

List of Exhibits

 

	
  Exhibit 1.1.1

  	
   

  	
  Legal Description

  
	
   

  	
   

  	
   

  
	
  Exhibit 1.1.3

  	
   

  	
  Inventory of Personal
  Property

  
	
   

  	
   

  	
   

  
	
  Exhibit 1.1.6

  	
   

  	
  Schedule of Leases and
  Security Deposits

  
	
   

  	
   

  	
   

  
	
  Exhibit 3.1.2

  	
   

  	
  Insurance Requirements

  
	
   

  	
   

  	
   

  
	
  Exhibit 3.3

  	
   

  	
  Schedule of Contracts
  Equipment Leases

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.1

  	
   

  	
  Form of
  Massachusetts Quitclaim Deed

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.2

  	
   

  	
  Form of Bill of
  Sale

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.3

  	
   

  	
  Form of Assignment
  and Assumption of Leases

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.4

  	
   

  	
  Form of Assignment
  and Assumption of Contracts

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.5

  	
   

  	
  Form of Property
  Name Assignment

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.6

  	
   

  	
  Form of Assignment
  of Warranties and Guarantees

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.3.8

  	
   

  	
  Form of FIRPTA
  Affidavit

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.8

  	
   

  	
  Form of Notice to
  Utility Company

  
	
   

  	
   

  	
   

  
	
  Exhibit 9.9

  	
   

  	
  Notice to Tenants

  

 

2

 

EXHIBIT 1.1.1

LEGAL
DESCRIPTION

 

A certain parcel of land,
with buildings thereon, situated in Brookline, Norfolk County, Massachusetts,
bounded and described as follows:

 

BEGINNING at a point on
the northerly sideline of Freeman Street, said point being the point of
curvature of a curve connecting the northerly side of Freeman Street and the
easterly sideline of Pleasant Street; thence running along said curved line to
the right of radius 30.57 feet a distance of 44.56 feet to a point of
tangency, said point being on the easterly sideline of Pleasant Street;

 

THENCE running along said
easterly sideline of Pleasant Street North 01°19’00” East a distance of
31.37 feet to an angle point;

 

THENCE turning and
running along said easterly sideline of Pleasant Street North 00°44’44”
West a distance of 336.10 feet to a point of curvature;

 

THENCE running along a
curved line to the right of radius 20.00 feet a distance of
34.54 feet to a point of tangency, said point being on the southerly
sideline of Thatcher Street;

 

THENCE running along said
southerly sideline of Thatcher Street South 81°49’38” East a distance of
438.23 feet to a point of curvature;

 

THENCE running along a
curved line to the right of the radius 20.00 feet a distance of
31.35 feet to a point of tangency, said point being on the westerly
sideline of St. Paul Street;

 

THENCE running along the
westerly side of St. Paul Street South 08°00’00” West a distance of
370.47 feet to a point of curvature;

 

THENCE running along a
curved line to the right of the radius 20.00 feet a distance of
31.34 feet to a point of tangency, said point being on the northerly
sideline of Freemen Street;

 

THENCE running along the
northerly sideline of Freeman Street North 82°14’30” West a distance of
372.80 feet to the point of beginning.

 

 

EXHIBIT 1.1.3

INVENTORY
OF PERSONAL PROPERTY

 

SEE ATTACHED

 

 

EXHIBIT 1.1.6

SCHEDULE
OF LEASES AND SECURITY DEPOSITS

 

SEE
ATTACHED

 

 

EXHIBIT 3.1.2

INSURANCE
REQUIREMENTS

 

I.                                         Prior to
performing any Assessment activities, Purchaser and all Purchaser’s
consultants, engineers and any environmental consultant and any subcontractor
thereof (and any other agent, contractor or consultant of Purchaser performing
Assessment activities) shall have and maintain in forms and with companies
reasonably acceptable to Owner at least the following insurance coverage:

 

A.                                   Environmental
Legal Liability Insurance

 

A policy of environmental legal liability insurance, having minimum
limits of Five Million Dollars ($5,000,000) per occurrence (or Each Pollution
Incident Loss) with a Five Million Dollar ($5,000,000) Policy aggregate,
written on a claims-made or occurrence basis, with a deductible no greater than
One Hundred Thousand Dollars ($100,000) per occurrence.  Consultant shall maintain claims-made
coverage in the above liability limits for at least two (2) years after
contract completion under the same terms and conditions.  Notwithstanding the foregoing, in the event
Purchaser wishes to conduct a phase II environmental assessment or any
intrusive  testing, additional or
increased coverage may be required.

 

B.                                     Workers’
Compensation and Employers’ Liability

 

1.                                       Statutory
requirement in states where operating, to include all areas involved in
operations covered under this Agreement.

 

2.                                       Coverage “B”
— Employers’ Liability - $100,000 Bodily Injury by accident — each accident;
$100,000 Bodily Injury by disease — each employee; $500,000 disease policy
limit.

 

C.                                     General
Liability Insurance

 

1.                                       Standard
Commercial General Liability policy form on an occurrence basis including
Premises/Operations Liability, Broad Form Contractual Liability, Blanket
Owner’s and Contractors Liability and Products/Completed Operations Liability
and the explosion, collapse and underground (xcu) exclusions eliminated.

 

2.                                       Limits of
Liability: One Million Dollars ($1,000,000) Per Occurrence and Two Million
Dollars ($2,000,000) Products Completed Operations and General Aggregates.

 

D.                                    Automobile
Liability Insurance

 

1.                                       Comprehensive
Automobile form, including all Owned, Non-Owned and Hired Vehicles.

 

1

 

2.                                       Limits of
Liability: Bodily Injury, $1,000,000 each person, $1,000,000 any one accident
or loss.

 

3.                                       The policy
shall include Insurance Services Office policy endorsement Form MCS-90 or
a similar endorsement providing coverage for environmental claims should there
be any transportation of pollutants

 

E.                                     Umbrella
Liability

 

Minimum amount of Five Million Dollars ($5,000,000) each occurrence and
general aggregate, providing excess coverage on a following form basis over the
coverage required by Subsections A., B. (except for Worker’s Compensation), C.
and D.

 

II.                                     Additional
Requirements

 

A.                                   Except where
prohibited by law, all insurance policies except the Environmental Legal
Liability Policy, shall provide that the insurance companies waive the rights
of recovery or subrogation against the Owner, its agents, servants, invitees,
employees, affiliated companies, contractors, subcontractors, and their
insurers.

 

B.                                     Such
insurance shall not be subject to cancellation except upon thirty (30) days
prior written notice to Owner.

 

C.                                     All
insurance required hereunder shall be with such insurance companies as are
reasonably satisfactory and acceptable to Owner.  Prior to commencement of the Assessment,
Purchaser shall deliver to Owner for its inspection all insurance certificates
for coverage required hereunder or such other evidence of compliance with the
foregoing insurance requirements as is required by, and satisfactory and
acceptable to, Owner.

 

D.                                    Owner, its
parent, subsidiaries, affiliates, investment advisors, property managers or
designees, and its and their officers, directors, and employees shall be named
as additional insured under the General Liability, Automobile Liability and
Umbrella Liability insurance policies required to be maintained by Purchaser’s
consultants and/or any subcontractor thereof.

 

E.                                      All
Insurance coverage maintained by Purchaser and Purchaser’s consultants and any
subcontractor thereof shall be primary and not contributing with any insurance
maintained by Owner.

 

2

 

EXHIBIT 3.3

SCHEDULE
OF CONTRACTS AND EQUIPMENT LEASES

 

SEE ATTACHED

 

 

EXHIBIT 3.5

 

SEE ATTACHED

 

1

 

EXHIBIT 9.3.1

MASSACHUSETTS
QUITCLAIM DEED

 

175
FREEMAN STREET INVESTORS LLC, a Delaware
limited liability company (the “Grantor”),
whose address is c/o UBS Realty Investors LLC, 242 Trumbull Street, Hartford,
Connecticut 06103, for and in consideration of the sum of Ten and No/100
Dollars ($10.00) paid to Grantor and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, has, subject to the
exceptions hereinafter set forth, GRANTED, SOLD,
and CONVEYED and does hereby GRANT, SELL, and CONVEY, with QUITCLAIM COVENANTS, unto THE HAMILTON
COMPANY, INC., a Massachusetts corporation (the “Grantee”), whose address is 39 Brighton Avenue, Boston,
Massachusetts 02134, certain land located at 175 Freeman Street, Brookline,
Norfolk County, Massachusetts, and being more particularly described in Exhibit A
attached hereto and incorporated herein by reference, together with all
improvements located on such land (such land and improvements being
collectively referred to as the “Property”).

 

This conveyance is made and accepted subject to all
matters set out in Exhibit B attached hereto and incorporated
herein by reference.

 

TO HAVE AND TO HOLD
the Property, together with all rights and appurtenances pertaining thereto,
including all of Grantor’s right, title and interest in and to adjoining
streets, alleys and rights-of-way, unto Grantee and Grantee’s successors,
heirs, and assigns forever; and Grantor does hereby bind itself and its
successors and heirs to warrant and forever defend the Property unto Grantee
and Grantee’s successors, heirs, and assigns, against every person whomsoever
lawfully claiming or to claim the same or any part thereof by, through, or
under Grantor, but not otherwise, for matters arising subsequent to the vesting
of title in Grantor.

 

Notwithstanding any provision to the contrary, Grantor
makes no warranties of any nature or kind, whether statutory, express or
implied, with respect to the physical condition of the Property (including
without limitation any and all improvements located thereon and/or comprising a
part thereof), and Grantee by its acceptance of this Deed accepts the physical
condition of the Property “AS IS, WITH ALL FAULTS.”

 

1

 

EXECUTED as of
the [      ] day of October, 2009.

 

	
   

  	
  GRANTOR:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

	
  STATE OF CONNECTICUT

  	
  )

  
	
   

  	
  )          ss

  
	
  COUNTY OF HARTFORD

  	
  )

  

 

On this        day of October, 2009,
before me personally appeared Jayne M. Brundage, who acknowledged herself to be
the Executive Vice President of 175 Freeman Street Investors LLC, a Delaware
limited liability company, and that she, being authorized so to do, executed
the foregoing instrument for the purposes therein contained as her and its free
act and deed, by signing the name of limited liability company by herself as
Executive Director.

 

	
   

  	
  IN WITNESS WHEREOF, I
  have hereunto set my hand

  
	
   

  	
   

  
	
   

  	
  Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
            My
  Commission Expire

  

 

2

 

EXHIBIT 9.3.2

BILL
OF SALE

 

For valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, 175 FREEMAN STREET INVESTORS
LLC, a Delaware limited liability company (the “Seller”),
hereby conveys to THE HAMILTON COMPANY, INC.,
a Massachusetts corporation (the “Purchaser”),
all of Seller’s right, title and interest in and to those certain items of
personal property described on Exhibit A attached hereto and made a
part hereof (the “Personal Property”)
relating to certain real property located at 175 Freeman Street, Brookline,
Norfolk County, Massachusetts.

 

The “Personal
Property” expressly excludes the following: 
(i) all items of personal property owned by tenants, subtenants,
independent contractors, business invitees and utilities; and (ii) all
cash on hand, checks, money orders, prepaid postage in postage meters, accounts
receivable and claims arising prior to the Closing.  This Bill of Sale is given by Seller and
accepted by Purchaser with no warranties, express or implied.

 

Seller has not
made and does not make any express or implied warranty or representation of any
kind whatsoever with respect to the Personal Property, including but not
limited to:  title; merchantability of
the Personal Property or its fitness for any particular purpose; the design or
condition of the Personal Property; the quality or capacity of the Personal
Property; workmanship or compliance of the Personal Property with the
requirements of any law, rule, specification or contract pertaining thereto;
patent infringement or latent defects. 
Purchaser accepts the Personal Property on an “AS IS, WHERE IS” basis.

 

IN WITNESS
WHEREOF, Seller has caused this instrument to be
executed and delivered as of this [      ] day of
October, 2009.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general 

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

EXHIBIT 9.3.3

ASSIGNMENT
AND ASSUMPTION OF LEASES

 

For valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, 175 FREEMAN STREET INVESTORS LLC, a Delaware limited
liability company (the “Assignor”),
hereby assigns, transfers and delegates to THE HAMILTON COMPANY, INC.,
a Massachusetts corporation (the “Assignee”), and
Assignee hereby agrees to assume and accept the assignment and delegation of
all of Assignor’s right, title and interest except for Assignor’s right to
collect delinquent rent in and to the Landlord’s rights and obligations under
the leases and the security deposits relating to the property known as Dexter
Park Apartments and more particularly described on Exhibit A attached
hereto.  The leases and security deposits
(“Leases”) are listed on Exhibit B
attached hereto.

 

By accepting
this Assignment and by its execution hereof, Assignee assumes the payment and
performance of, and agrees to pay, perform and discharge, all the debts, duties
and obligations to be paid, performed or discharged from and after the date
hereof, by the “landlord” or the “lessor” under the terms, covenants and
conditions of the Leases, including, without limitation, brokerage commissions
and compliance with the terms of the Leases relating to tenant improvements and
security deposits.

 

Assignor shall
indemnify Assignee against and hold Assignee harmless from any and all cost,
liability, loss, damage or expense, including, without limitation, reasonable
attorneys’ fees, originating or relating to the period prior to date hereof and
arising out of the Assignor’s obligations under such Leases.  Assignee shall indemnify Assignor against and
hold Assignor harmless from any and all cost, liability, loss, damage or
expense, including, without limitation, reasonable attorneys’ fees, originating
or relating to the period on or after the date hereof and arising out of the
Assignee’s obligations under such Leases.

 

Notwithstanding
anything to the contrary contained herein, the indemnities contained herein
shall survive for a period of six (6) months from the date set forth below
(the “Survival Period”).  Any litigation with respect to such
indemnification must be commenced (by service of process on such other party)
within the Survival Period, and if not so commenced within the Survival Period,
the indemnification shall be void and of no force or effect.  To the extent that Assignee has knowledge as
of the date set forth below of any costs, liability, loss, damage or expense
which would be covered by Assignor’s indemnity set forth above, Assignor’s
indemnity set forth above shall be void and of no force or effect.  No claim for indemnity hereunder shall be
actionable or payable unless the valid claims for indemnification collectively
aggregate more than $50,000.  In no event
shall the liability of Assignor or Assignee hereunder exceed $500,000 (in the
aggregate together with any other liabilities of Assignor arising under the transactions
contemplated by that certain Purchase and Sale and Escrow Agreement dated August [      ],
2009 by and between Assignor and Assignee), and liability hereunder shall be
limited to actual damages and shall not include exemplary, punitive or
consequential damages.

 

1

 

If any
litigation between Assignor and Assignee arises out of the obligations of the
parties under this Assignment or concerning the meaning or interpretation of
any provision contained herein, the losing party shall pay the prevailing party’s
costs and expenses of such litigation including, without limitation, reasonable
attorneys’ fees.

 

This Agreement
may be executed and delivered in any number of counterparts, each of which so
executed and delivered shall be deemed to be an original and all of which shall
constitute one and the same instrument.

 

This Agreement
is made subject, subordinate and inferior to the easements, covenants and other
matters and exceptions set forth on Exhibit A (the “Permitted Exceptions”), attached hereto and made a part
hereof for all purposes.

 

2

 

IN WITNESS
WHEREOF, Assignor and Assignee have executed this
Assignment effective as of this [      ] day of
October, 2009.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership 

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  THE HAMILTON COMPANY, INC.

  
	
   

  	
  a Massachusetts
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

3

 

EXHIBIT 9.3.4

ASSIGNMENT
AND ASSUMPTION OF CONTRACTS

 

In consideration
of One Dollar and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, 175 FREEMAN
STREET INVESTORS, LLC, a Delaware limited liability company (the “Assignor”), hereby assigns to and delegates THE HAMILTON COMPANY, INC., a Massachusetts corporation (the
“Assignee”), with an office and place of
business at 39 Brighton Avenue, Boston, Massachusetts 02134, and Assignee
hereby assumes and accepts the assignment and delegation of all of Assignor’s
right, title and interest in and to the contracts, licenses, agreements and
equipment leases (the “Contracts”)
described on Exhibit A attached hereto relating to certain real
property known as Dexter Park Apartments and located at 175 Freeman Street,
Brookline, Norfolk County, Massachusetts, and Assignee hereby accepts such
assignment.

 

Assignor shall
indemnify Assignee against and hold Assignee harmless from any and all cost,
liability, loss, damage or expense, including, without limitation, reasonable
attorneys’ fees, originating or relating to the period prior to date hereof and
arising out of the Assignor’s obligations under the Contracts described on Exhibit A.  Assignee shall indemnify Assignor against and
hold Assignor harmless from any and all cost, liability, loss, damage or
expense, including, without limitation, reasonable attorneys’ fees, originating
or relating to the period on or after the date hereof and arising out of the
Assignee’s obligations under the Contracts described on Exhibit A.

 

Notwithstanding
anything to the contrary contained herein, the indemnities contained herein
shall survive for a period of six (6) months from the date set forth below
(the “Survival Period”).  Any litigation with respect to such
indemnification must be commenced (by service of process on such other party)
within the Survival Period, and if not so commenced within the Survival Period,
the indemnification shall be void and of no force or effect.  To the extent that Assignee has knowledge as
of the date set forth below of any costs, liability, loss, damage or expense
which would be covered by Assignor’s indemnity set forth above, Assignor’s
indemnity set forth above shall be void and of no force or effect.  No claim for indemnity hereunder shall be
actionable or payable unless the valid claims for indemnification collectively
aggregate more than $50,000.  In no event
shall the liability of Assignor or Assignee hereunder exceed $500,000 (in the
aggregate together with any other liabilities of Assignor arising under the transactions
contemplated by that certain Purchase and Sale and Escrow Agreement dated August [      ],
2009 by and between Assignor and Assignee), and liability hereunder shall be
limited to actual damages and shall not include exemplary, punitive or consequential
damages.

 

If any
litigation between Assignor and Assignee arises out of the obligations of the
parties under this Assignment or concerning the meaning or interpretation of
any provision contained herein, the losing party shall pay the prevailing party’s
costs and expenses of such litigation including, without limitation, reasonable
attorneys’ fees.

 

1

 

This Agreement
may be executed and delivered in any number of counterparts, each of which so
executed and delivered shall be deemed to be an original and all of which shall
constitute one and the same instrument.

 

2

 

IN WITNESS
WHEREOF, Assignor and Assignee have executed this
Assignment effective as of this [      ] day of
October, 2009.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  THE HAMILTON COMPANY, INC.

  
	
   

  	
  a Massachusetts
  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

3

 

EXHIBIT 9.3.5

ASSIGNMENT
OF PROPERTY NAME

 

For valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, 175 FREEMAN STREET INVESTORS LLC, a Delaware limited
liability company (the “Assignor”),
hereby assigns, transfers and sets over unto THE HAMILTON
COMPANY, INC., a Massachusetts corporation (the “Assignee”), all of Assignor’s right, title and interest, if
any, in and to the property name “Dexter Park Apartments”.  Seller makes no warranty or representation of
any kind with respect to its right, title and interest in the property name.

 

IN WITNESS
WHEREOF, Assignor has caused this instrument to be
executed as of this [      ] day of October,
2009.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

EXHIBIT 9.3.6

ASSIGNMENT
OF WARRANTIES AND GUARANTEES

 

THIS
AGREEMENT is made as of the
[      ] day of October, 2009, between 175 FREEMAN STREET INVESTORS LLC, a Delaware limited
liability company (the “Assignor”), and
THE HAMILTON COMPANY, INC., a
Massachusetts corporation (the “Assignee”).

 

R  E
C  I  T  A  L  S :

 

Assignee has
this day acquired from Assignor certain interests in land, buildings and
improvements more particularly described on Exhibit A attached
hereto and made a part hereof (the “Property”).

 

In consideration
of the acquisition of the Property by Assignee and other good and valuable
consideration, the mutual receipt and legal sufficiency of which are hereby
acknowledged, Assignor hereby assigns, transfers and sets over unto Assignee
and Assignee hereby accepts from Assignor all of Assignor’s right, title and
interest in and to all transferable warranties and guarantees, if any, with
respect to the improvements located on the Property or any repairs or
renovations to such improvements and any personal property conveyed to Assignee
by Assignor in connection with the Property.

 

IN WITNESS
WHEREOF, Assignor has caused this instrument to be
executed as of the date above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership 

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust
  Operating

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

EXHIBIT 9.3.8

AFFIDAVIT
PURSUANT TO FOREIGN INVESTMENT

AND REAL PROPERTY TAX ACT

 

Section 1445 of the Internal Revenue Code (the “Code”) provides that a transferee of a U.S.
real property interest must withhold tax if the transferor is a foreign
person.  For U.S. tax purposes (including
section 1445), the owner of a disregarded entity (which has legal title to a
U.S. real property interest under local law) will be the transferor of the
property and not the disregarded entity. 
To inform
                                          ,
a
                                      ,
of [Address] (“Transferee”) that tax withholding
will not be required in connection with the disposition of the Property as
defined in, and pursuant to, that certain Purchase and Sale and Escrow Agreement
dated
                            ,
the undersigned certifies the following on behalf of                                 
(“Transferor”):

 

1.                                       Transferor
is not a foreign corporation, foreign partnership, foreign trust, or foreign
estate (as those terms are defined in the Code and Income Tax Regulations);

 

2.                                       Transferor is not a disregarded entity as
defined in Code § 1.1445-2(b)(2)(iii);

 

3.                                       Transferor’s U.S. employer identification number is
06-1604937; and

 

4.                                       Transferor’s address is:

 

c/o UBS Realty Investors LLC

242 Trumbull Street

Hartford, Connecticut 06103-1212

 

This Affidavit may be
disclosed to the Internal Revenue Service and any false statement contained
herein could be punished by fine, imprisonment, or both.

 

Under penalties of
perjury I declare that I have examined this Affidavit and to the best of my
knowledge and belief it is true, correct, and complete, and further declare
that I have authority to sign this document on behalf of Transferor.

 

	
   

  	
   

  	
  , a

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  Duly Authorized

  
				

 

 

EXHIBIT 9.8

NOTICE
TO UTILITY COMPANY

 

October [      ],
2009

 

RE:                                                                              DEXTER PARK APARTMENTS

175 FREEMAN STREET

BROOKLINE, MASSACHUSETTS

 

You are hereby notified and advised that THE HAMILTON COMPANY, INC. (“Purchaser”)
has purchased and acquired from 175 FREEMAN STREET
INVESTORS LLC all right, title and interest in and to DEXTER PARK APARTMENTS (“Property”).

 

In accordance with the foregoing, you are hereby
notified that all future invoices, bills, correspondence, and notices relating
to the Property, should be delivered to Purchaser at the following
address:  39 Brighton Avenue, Boston,
Massachusetts 02134.

 

Upon final payment of the utility bills, please cancel
any bonds in place and return the originals to Steven Miele at UBS Realty
Investors LLC, 242 Trumbull Street, Hartford, Connecticut 06103-1212.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  175 FREEMAN STREET INVESTORS
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  TPF Equity Trust
  Operating Partnership 

  
	
   

  	
   

  	
  LP, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  TPF Equity Trust Operating
  

  
	
   

  	
   

  	
   

  	
  Partnership GP LLC, its
  general 

  
	
   

  	
   

  	
   

  	
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Jayne M. Brundage

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Director

  

 

 

	
   

  	
   

  	
   

  	
  THE HAMILTON COMPANY, INC.

  
	
   

  	
   

  	
   

  	
  a Massachusetts
  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT 9.9

NOTICE TO TENANTS

 

October [      ],
2009

 

Re:      Notice of Change of Ownership of

Dexter Park Apartments,
175 Freeman Street, Brookline, Massachusetts

 

Ladies and Gentlemen:

 

You are hereby notified
as follows:

 

1.     That as of the date hereof, 175 FREEMAN
STREET INVESTORS LLC has transferred, sold, assigned, and conveyed all of its
interest in and to the above-described property, (the “Property”) to THE
HAMILTON COMPANY, INC. (the “New Owner”).

 

2.     Future notices and rental payments with
respect to your leased premises at the Property should be made to the New Owner
in accordance with your lease terms at the following address:

 

Dexter Park Apartments

Attn:                              
(Telephone #:
                      )

Street Address

City, State &
Zip

 

3.               The
New Owner shall be responsible for holding your security deposit in accordance
with the terms of your lease.

 

[REMAINDER
OF PAGE INTENTIONALLY BLANK]

 

1Exhibit 10.2

 

LIMITED LIABILITY COMPANY
OPERATING AGREEMENT

OF

HBC HOLDINGS, LLC

 

This Limited Liability Company
Operating Agreement is entered into, and shall be effective, as of
the 13th day of April, 2009 (the “Effective Date”), by and
among (i) the Persons who are identified as the initial
Members of the Company on Exhibit A attached hereto and who have
executed this Agreement as of the Effective Date, (ii) each other Person
who, at any time after the Effective Date, (x) is
admitted to the Company as a Member in accordance with the terms of this
Agreement, (y) is identified as a Member on Exhibit A
to this Agreement (as the same shall be amended from time to time after the
Effective Date by the Manager), and (z) executes
a counterpart of this Agreement as a Member, and (iii) Harold Brown, as
the initial Manager, pursuant to the provisions of the Massachusetts Limited Liability Company Act, on the
following terms and conditions:

 

Article I

THE COMPANY

 

1.1           Formation. 
The Company was formed as a Massachusetts limited liability company on
the Effective Date.  The Members hereby
agree to continue the Company as a limited liability company under and pursuant
to the provisions of the Act and upon the terms and conditions set forth in
this Agreement.  Simultaneously with the
formation of the Company, Harold Brown was admitted to the Company as its
initial Member.  The rights and
liabilities of the Members shall be as provided under the Act, the Certificate,
and this Agreement.

 

1.2           Name. 
The name of the Company shall be “HBC Holdings, LLC,” and all business
of the Company shall be conducted in such name. 
The Board of Managers may change the name of the Company upon at least
ten (10) Business Days notice to the Members.

 

1.3           Purpose; Powers.

 

(a)           The purposes of the
Company are, directly or through one or more subsidiaries and other Affiliates,
(i) to acquire, develop, renovate, rehabilitate, improve, lease (in whole
or in part), own, operate, manage, hold for investment, finance, mortgage, sell
(in whole or in part), exchange, or otherwise dispose of, and deal with real
estate located anywhere in the United States, (ii) to acquire,
own, manage, administer, protect, conserve, and sell or otherwise dispose of
Permitted Working Capital Assets,  (iii) to make such additional
investments and engage in such additional business or investment activities or
endeavors as the Members may unanimously approve, and (iv) to engage in
any and all activities related or incidental to the purposes set forth in
clauses (i), (ii), and (iii) of this Section 1.3(a).

 

(b)           The Company shall
have the power to do any and all acts necessary, appropriate, proper,
advisable, incidental, or convenient to or in furtherance of the purposes of
the Company set forth in Section 1.3(a) and shall have, without
limitation, any and all powers that may be exercised on behalf of the Company
by the Board of Managers pursuant to Article V hereof.

 

 

1.4           Principal
Place of Business; Registered Office.  The principal place of business of the
Company shall be at 39 Brighton Avenue, Allston, Massachusetts 02134.  The Board of Managers may change the
principal place of business of the Company to any other place within or without
the Commonwealth of Massachusetts upon at least ten (10) Business Days
notice to the Members.  The registered
office of the Company in the Commonwealth of Massachusetts is initially located
at 39 Brighton Avenue, Allston, Massachusetts 02134.

 

1.5           Term. 
The term of the Company commenced on the Effective Date, which is the
date that the Certificate of Organization described in Section 12 of the
Act (the “Certificate”) was filed in the office of the Secretary of State of
the Commonwealth of Massachusetts in accordance with the Act.  The term of the Company shall not be
perpetual, but shall continue until the winding up and liquidation of the
Company and the completion of its business following a Dissolution Event, as
provided in Article XI hereof.

 

1.6           Filings;
Agent for Service of Process.

 

(a)           The
Certificate was filed in the office of the Secretary of State of the
Commonwealth of Massachusetts, in accordance with the Act, on the Effective
Date. The Board of Managers shall take any and all other actions reasonably
necessary to perfect and maintain the status of the Company as a limited liability
company under the laws of the Commonwealth of Massachusetts, including the
preparation and filing of such amendments to the Certificate and such other
assumed name certificates, documents, instruments, and publications as may from
time to time be required by law.

 

(b)           The Members and the
Managers shall execute and cause to be filed original or amended certificates,
and shall take any and all other actions as may be reasonably necessary, in
order to perfect and maintain the status of the Company as a limited liability
company or similar type of entity under the laws of any other state or
jurisdiction in which the Company engages in business.

 

(c)           The registered agent
for service of process on the Company in the Commonwealth of Massachusetts
shall be Sally E. Michael, Esquire, Dionne & Gass LLP, 131 Dartmouth
Street, Suite 501, Boston, Massachusetts 02116, or any successor as
appointed by the Board of Managers in accordance with the Act.

 

(d)           Upon the dissolution
and completion of the winding up and liquidation of the Company in accordance
with Article XI hereof, the Board of Managers shall
promptly execute and cause to be filed certificates of cancellation or
dissolution in accordance with the Act and the laws of any other state or
jurisdiction in which the Company has filed certificates.

 

1.7           Title to Property.  All real and personal property owned by the
Company shall be owned by the Company as an entity and no Member shall have any
ownership interest in such property in such Member’s individual name or right.  Each Member’s interest in the Company shall
be personal property for all purposes. 
The Company shall hold all of its real and personal property in the name
of the Company and not in the name of any Member.

 

2

 

1.8           Payments of Individual Obligations.  The Company’s credit and assets shall be used
solely for the benefit of the Company, and no asset of the Company shall be
transferred or encumbered for or in payment of any individual obligation of any
Member.

 

1.9           Independent Activities; Transactions With Affiliates.

 

(a)           Each Manager shall
be required to devote such time to the business and affairs of the Company as
may be necessary to manage and operate the Company.  Except as provided in Section 1.9(d) hereof,
each Manager shall be free to serve any other Person or enterprise in any
capacity that such Manager may deem appropriate in such Manager’s discretion.

 

(b)           Insofar as permitted
by applicable law neither this Agreement nor any activity undertaken pursuant
hereto shall prevent any Member or Manager, or any Affiliate of any Member or
Manager, from engaging in whatever activities such Person may choose, whether
the same are competitive with the Company or otherwise, and any such activities
may be undertaken without having or incurring any obligation to offer any
interest in such activities to the Company or any Member.  Neither this Agreement nor any activity
undertaken pursuant hereto shall require any Member or Manager to permit the
Company or any Member, Manager, or Affiliate of any Member or Manager, to
participate in any such activities, and as a material part of the consideration
for the execution of this Agreement by each Member, each Member hereby waives,
relinquishes, and renounces any such right or claim of participation.  The Members hereby further acknowledge that
certain conflicts of interest may thus arise and hereby agree that the specific
rights with respect to the Members’ and their Affiliates’ freedom of action
provided in this Section 1.9(b) are sufficient to protect their
respective interests in relation to such possible conflicts and shall be in
lieu of all other possible limitations that might otherwise be implied in fact,
at law, or in equity.

 

(c)           To the extent
permitted by applicable law and except as otherwise provided in this Agreement,
the Board of Managers is hereby authorized, in furtherance of the purposes of
the Company, to cause the Company to purchase property from, sell property to,
borrow money from, or otherwise deal with any Member or Manager, acting on such
Person’s own behalf, or any Affiliate of any Member or Manager, provided,
that, except as otherwise provided in this Agreement (for example, Section 5.8,
dealing with Member or Manager loans) any such purchase, sale, borrowing, or
other transaction shall be made on terms and conditions that are no less
favorable to the Company than if such purchase, sale, or other transaction had
been made with an independent third party.

 

1.10         Definitions.  The following capitalized words and phrases,
when used in this Agreement, have the following meanings:

 

“Accepting Offerees” has
the meaning set forth in Section 9.4(d)(ii) hereof.

 

“Act” means the
Massachusetts Limited Liability Company Act, as set forth in Chapter 156C of
the Massachusetts General Laws, as amended from time to time (or any
corresponding provisions of succeeding law).

 

3

 

“Adjusted Capital
Account Deficit” means, with respect to any Member, the deficit
balance, if any, in such Member’s Capital Account as of the end of the relevant
Allocation Year, after giving effect to the following adjustments:

 

(i)            There shall be credited to such
Capital Account any amounts that such Member is deemed to be obligated to
restore pursuant to the penultimate sentences in Sections 1.704-2(g)(1) and
1.704-2(i)(5) of the Regulations; and

 

(ii)           There shall be debited to such
Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6) of the Regulations.

 

The foregoing
definition of Adjusted Capital Account Deficit is intended to comply with the
provisions of Section 1.704-1(b)(2)(ii)(d) of
the Regulations and shall be interpreted consistently therewith.

 

“Affiliate” means, with
respect to any Person, (i) any Person directly or indirectly controlling,
controlled by, or under common control with such Person, (ii) any officer,
director, general partner, member, manager, or trustee of such Person, or (iii) any
Person who is an officer, director, general partner, member, manager, or
trustee of any Person described in clause (i) or clause (ii) of this
sentence.  For purposes of this
definition, the terms “controlling,” “controlled by,” and “under common control
with” shall mean the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise, or the power to
elect at least fifty percent (50%) of the directors, managers, general
partners, or Persons exercising similar authority with respect to such Person.

 

“Agreement” means this
Limited Liability Company Operating Agreement, including each exhibit and
schedule attached hereto, as amended from time to time.  Words such as “herein,” “hereinafter,” “hereof,”
“hereto,” and “hereunder,” refer to this Agreement as a whole, unless the
context otherwise requires.  All
references in this Agreement to “Section” or “Sections” are to a section or
sections of this Agreement unless otherwise specified.

 

“Allocation Year” means (i) the
period commencing on the Effective Date and ending on December 31, 2009, (ii) any
subsequent 12-month period commencing on January 1 and ending on December 31,
or (iii) any portion of any period described in clause (i) or clause (ii) for
which the Company is required to allocate Profits, Losses, and other items of
Company income, gain, loss, or deduction pursuant to Article III.

 

“Bankruptcy” means, with
respect to any Person, the occurrence of any one of the events set forth in §2(1) of
the Act.

 

“Board of Managers” has the meaning set forth in Section 5.1
hereof.

 

4

 

“Business Day” means any
day that is not a Saturday, Sunday, or any other day on which commercial banks
in Boston, Massachusetts are authorized or obligated by law or executive order
to be closed.

 

“Capital Account” means,
with respect to any Member, the Capital Account maintained for such Member in
accordance with the following provisions:

 

(i)            To each Member’s
Capital Account there shall be credited (A) such Member’s Capital
Contributions, (B) such Member’s distributive share of Profits and any
items in the nature of income or gain that are specially allocated to such
Member pursuant to Section 3.2 or Section 3.3 hereof, and (C) the
amount of any Company liabilities that are assumed by such Member or that are
secured by any Property distributed to such Member.

 

(ii)           To
each Member’s Capital Account there shall be debited (A) the amount of
money and the Gross Asset Value of any Property (other than money) distributed
to such Member pursuant to any provision of this Agreement, (B) such
Member’s distributive share of Losses and any items in the nature of expenses
or losses that are specially allocated to such Member pursuant to Section 3.2
or Section 3.3 hereof, and (C) the amount of any liabilities of such
Member that are assumed by the Company or that are secured by any property
contributed by such Member to the Company.

 

(iii)          In
the event that Shares are transferred in accordance with the terms of this
Agreement, the transferee shall succeed to the Capital Account of the
transferor to the extent that such Capital Account relates to the transferred
Shares.

 

(iv)          In
determining the amount of any liability for purposes of subsections (i) and
(ii) of this definition, there shall be taken into account Code Section 752(c) and
any other applicable provisions of the Code and Regulations.

 

The foregoing
provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b),
and shall be interpreted and applied in a manner consistent with such
Regulations.  In the event the Board of
Managers shall determine that it is prudent to modify the manner in which the
Capital Accounts, or any debits or credits thereto, are computed in order to
comply with such Regulations, the Board of Managers may make such modification;
provided, that it is not likely to have a material effect on the amounts
distributable to any Member pursuant to Article XI upon the
dissolution of the Company.  The Board of
Managers shall also (i) make any adjustments that are necessary or
appropriate to maintain equality between the Capital Accounts of the Members
and the amount of capital reflected on the Company’s balance sheet, as computed
for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any appropriate
modifications in the event unanticipated events might otherwise cause this
Agreement not to comply with Regulations Section 1.704-1(b).

 

5

 

“Capital Contributions”
means, with respect to any Member, the amount of money and the initial Gross
Asset Value of any property (other than money) contributed to the Company with
respect to the Shares held by such Member.

 

“Cash Equivalents” means cash and any of the
following: (i) readily marketable direct obligations of the Government of
the United States or any agency or instrumentality thereof, or obligations
unconditionally guaranteed by the full faith and credit of the Government of
the United States, and (ii) insured certificates of deposit of, or time or
demand deposits with, any commercial bank that is a member of the Federal
Reserve System; provided, however, that all instruments described
in this definition other than cash shall have a maturity of not longer than
ninety (90) days.

 

“Certificate” means the
Certificate of Organization filed with the Secretary of State of the
Commonwealth of Massachusetts pursuant to the Act to form the Company, as
originally executed and as amended, modified, supplemented, or restated from
time to time, as the context may require.

 

“Certificate of Cancellation”
means a Certificate of Cancellation filed with the Secretary of State of the
Commonwealth of Massachusetts in accordance with Section 14 of the Act, in
order to dissolve the Company.

 

“Code” means the Internal
Revenue Code of 1986, as amended from time to time (or any corresponding
provisions of succeeding law).

 

“Company” means the
limited liability company formed pursuant to the Certificate and this Agreement
and the limited liability company continuing the business of the Company in the
event of the dissolution of the Company as herein provided.

 

“Company Minimum Gain” has
the same meaning as is given to the term “partnership minimum gain” in Sections
1.704-2(b)(2) and 1.704-2(d) of the Regulations.

 

“Consent of the Members”
means, with respect to any matter submitted to the Members for their consent or
approval, the written consent or approval of Members holding, at the time of
such consent or approval, more than fifty percent (50%) of the issued and
outstanding Shares.

 

“Debt” means, with respect to any Person, (i) any
indebtedness for borrowed money or the deferred purchase price of property as
evidenced by a note, bond, or other instrument, (ii) obligations as lessee
under any capital lease, (iii) obligations secured by any mortgage,
pledge, security interest, encumbrance, lien, or charge of any kind existing on
any asset owned or held by such Person, whether or not such Person has assumed
or become liable for the obligations secured thereby, (iv) accounts
payable, and (v) obligations under direct or indirect guarantees of
(including obligations, contingent or otherwise, to assure a creditor against
loss in respect of) indebtedness or obligations of the kinds referred to in
clauses (i), (ii), (iii), and (iv) of this definition, provided, that Debt shall not include obligations
in respect of any accounts payable that are incurred in the ordinary course of
such Person’s business and are not delinquent or are being contested in good
faith by appropriate proceedings.

 

6

 

“Depreciation” means, for
each Allocation Year, an amount equal to the depreciation, amortization, or
other cost recovery deduction allowable for federal income tax purposes with
respect to an asset for such Allocation Year, except  that if the
Gross Asset Value of an asset differs from its adjusted basis for federal
income tax purposes at the beginning of such Allocation Year, Depreciation
shall be an amount that bears the same ratio to such beginning Gross Asset
Value as the federal income tax depreciation, amortization, or other cost
recovery deduction for such Allocation Year bears to such beginning adjusted
tax basis; provided, however, that if the adjusted basis for
federal income tax purposes of an asset at the beginning of such Allocation
Year is zero, Depreciation shall be determined with reference to such beginning
Gross Asset Value using any reasonable method selected by the Board of
Managers.

 

“Dissolution Event” has
the meaning set forth in Section 11.1 hereof.

 

“Effective Date” has the
meaning set forth in the first paragraph of this Agreement.

 

“Environmental Claim”
means any administrative, regulatory, or judicial action, suit, demand, demand
letter, claim, lien, notice of noncompliance or violation, notice of liability
or potential liability, investigation, or proceeding relating in any way to any
Environmental Law, Environmental Permit, or Hazardous Substances, or arising
from actual or alleged injury or threat of injury to natural resources, health,
safety, or the environment, including, without limitation, (a) by
governmental or regulatory authorities for enforcement, cleanup, removal,
response, remediation, or other actions or damages, and (b) by any third
party for damages, contribution, indemnification, cost recovery, compensation,
or injunctive relief.

 

“Environmental Law” means
any federal, state, or local statute, law, code, ordinance, rule, regulation,
guideline, policy, or rule of common law, now or hereafter in effect and
in each case as amended, and any judicial or administrative interpretation
thereof (including any judicial or administrative order, consent decree, or
judgment), relating to the environment, health, safety, or Hazardous
Substances.

 

“Environmental Permit”
means any permit, approval, identification number, license, or other authorization
required under any applicable Environmental Law.

 

“Expenses” means any and
all judgments, damages, or penalties with respect to, or amounts paid in
settlement of, claims (including, but not limited to, claims alleging
negligence, strict or absolute liability, liability in tort, and liabilities
arising out of violations of laws or regulatory requirements of any kind),
actions, or suits; and any and all taxes (including, without limitation, taxes
on any indemnification payments and interest, additions to tax, and penalties),
liabilities, obligations, costs, expenses, and disbursements (including,
without limitation, reasonable legal fees and expenses).

 

“Family” has the meaning
set forth in Section 9.2 hereof.

 

“Firm Offer” has the
meaning set forth in Section 9.4(b) hereof.

 

7

 

“Fiscal Quarter”
means (i) the period commencing on the Effective Date and ending on the
last day of the calendar quarter in which the Effective Date occurs, or (ii) any
subsequent three (3) month period commencing on January 1, April 1,
July 1, or October 1 and ending on the earlier to occur of (A) the
following March 31, June 30, September 30, or December 31,
respectively, or (B) the date on which all of the Property is distributed
pursuant to Section 11.2 hereof and the Certificate has been canceled
pursuant to the Act.

 

“Fiscal Year” means (i) the
period commencing on the Effective Date and ending on December 31, 2009,
and (ii) any subsequent 12-month period commencing on January 1 and
ending on the earlier to occur of (A) the following December 31, or (B) the
date on which all of the Property is distributed pursuant to Section 11.2
and the Certificate has been canceled pursuant to the Act.

 

“Gross Asset Value” means,
with respect to any asset, the asset’s adjusted basis for federal income tax
purposes, except as follows:

 

(i)            The initial Gross
Asset Value of any asset contributed by a Member to the Company shall be the
gross fair market value of such asset, as determined by the contributing Member
and the Board of Managers.

 

(ii)           The
Gross Asset Values of all Company assets shall be adjusted to equal their
respective gross fair market values (taking Code Section 7701(g) into
account), as determined by the Board of Managers, as of the following
times:  (A) the acquisition of an
additional interest in the Company by any existing Member in exchange for more
than a de minimis Capital
Contribution or the performance of substantial services for the Company; (B) the
acquisition of an interest in the Company by any new Member in exchange for
more than a de minimis Capital
Contribution or the performance of substantial services for the Company; (C) the
distribution by the Company to any Member of more than a de minimis amount of Property as
consideration for an interest in the Company; and (D) the liquidation of
the Company within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); provided, that an adjustment
described in clause (A), clause (B), or clause (C) of this subparagraph (ii) shall
be made only if the Board of Managers reasonably determines that such
adjustment is necessary to reflect the relative economic interests of the
Members in the Company.

 

(iii)          The
Gross Asset Value of any Company asset distributed to any Member (other than as
consideration for an interest in the Company) shall be adjusted to equal the
gross fair market value (taking Code Section 7701(g) into account) of
such asset on the date of distribution as determined by the distributee and the
Board of Managers.

 

(iv)          The
Gross Asset Values of Company assets shall be increased (or decreased) to
reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or
Code Section 743(b), but only to the extent that such adjustments are taken
into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and subparagraph (vi) of the definition of “Profits”
and “Losses” set forth in this Section 1.10, or Section 3.3(g) hereof;
provided, however, that Gross Asset

 

8

 

Values shall not be adjusted pursuant to this subparagraph (iv) to
the extent the Board of Managers determines that an adjustment pursuant to
subparagraph (ii) of this definition is required in connection with a
transaction that would otherwise result in an adjustment pursuant to this
subparagraph (iv).

 

If the Gross Asset
Value of an asset has been determined or adjusted pursuant to subparagraph (i),
(ii), or (iv) of this definition, such Gross Asset Value shall thereafter
be adjusted by the Depreciation taken into account with respect to such asset
for purposes of computing Profits and Losses.

 

“Hazardous Substances”
means (i) any chemicals, materials, or substances defined or included in
the definition of “hazardous substances,” “hazardous materials,” “hazardous
wastes,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic
substances,” “toxic pollutants,” “pollutants,” “contaminants,” or words of
similar import, under any applicable Environmental Law, (ii) any petroleum
or petroleum products, by-products or breakdown products, including crude oil
or any fraction thereof, natural or synthetic natural gas, radioactive
materials, asbestos in any form that is friable, urea formaldehyde foam
insulation and radon, and (iii) any other chemical, material, or substance
exposure to which is prohibited, limited, or regulated by any governmental
authority or under any Environmental Law.

 

“Losses” has the meaning
set forth in the definition of “Profits” and “Losses.”

 

“Manager” means, as of any
time, each Person then serving on the Board of Managers of the Company. “Managers” means, as of any time, all of
such Persons.

 

“Member” means any Person (i) whose
name is set forth as a Member on Exhibit A attached hereto or who
has become a substituted Member pursuant to the terms of this Agreement, and (ii) who
holds one or more Shares.  “Members” shall mean all such Persons.

 

“Member Nonrecourse Debt”
has the same meaning as is given to the term “partner nonrecourse debt” in Section 1.704-2(b)(4) of
the Regulations.

 

“Member Nonrecourse Debt Minimum Gain”
means an amount, with respect to each Member Nonrecourse Debt, equal to the
Company Minimum Gain that would result if such Member Nonrecourse Debt were
treated as a Nonrecourse Liability, determined in accordance with Section 1.704-2(i)(3) of
the Regulations.

 

“Member Nonrecourse Deductions”
has the same meaning as is given to the term “partner nonrecourse deductions”
in Sections 1.704-2(i)(1) and 1.704-2(i)(2) of the Regulations.

 

“Net Cash Available for Distribution” means,
for any Fiscal Quarter, the amount by which the total of the cash on hand and
in the Company’s bank accounts as of the end of such Fiscal Quarter is in
excess of the projected cash requirements of the Company for the immediately
succeeding Fiscal Quarter. The cash requirements of the Company for any Fiscal
Quarter shall include, but not be limited to, the amounts that the Board of
Managers reasonably expects will be required to be expended by the Company
during such Fiscal Quarter for capital

 

9

 

calls that may be made on
the Company by other entities, taxes, debt service, and other operating and
capital expenses and contingencies of the Company, all as determined by the
Board of Managers, in its sole and absolute discretion. Net Cash Available for
Distribution shall not be reduced by depreciation, amortization, cost recovery
deductions, or similar allowances.

 

“Nonrecourse Deductions”
has the meaning set forth in Section 1.704-2(b)(1) of the
Regulations.

 

“Nonrecourse Liability”
has the meaning set forth in Section 1.704-2(b)(3) of the
Regulations.

 

“Offered Shares” has the meaning set forth
in Section 9.4 hereof.

 

“Offerees” has the meaning set forth in Section 9.4(b) hereof.

 

“Offer Notice” has the meaning set forth in Section 9.4(b) hereof.

 

“Offer Period” has the meaning set forth in Section 9.4(c) hereof.

 

“Offer Price” has the
meaning set forth in Section 9.4(a) hereof.

 

“Permitted Transfer”  has the meaning set forth in Section 9.2
hereof.

 

“Permitted Working Capital Assets” means any
of the following: (i) Securities, (ii) Cash Equivalents, and (iii) any
other readily liquid assets approved by the Consent of the Members.

 

“Person” means any
individual, partnership (whether general or limited), limited liability
company, corporation, association, business trust, trust, estate, association,
custodian, nominee, or other entity, in its own or any representative capacity.

 

“Profits” and “Losses” mean, for each Allocation Year, an
amount equal to the Company’s taxable income or loss for such Allocation Year,
determined in accordance with Code Section 703(a) (for this purpose,
all items of income, gain, loss, deduction, or credit required to be stated
separately pursuant to Code Section 703(a)(1) shall be included in
taxable income or loss), with the following adjustments (without duplication):

 

(i)            Any income of the Company that is
exempt from federal income tax and not otherwise taken into account in
computing Profits or Losses pursuant to this definition of “Profits” and “Losses”
shall be added to such taxable income or loss;

 

(ii)           Any
expenditures of the Company described in Code Section 705(a)(2)(B) or
treated as Code Section 705(a)(2)(B) expenditures pursuant to
Regulations Section 1.704-1(b)(2)(iv)(i),
and not otherwise taken into account in computing Profits or Losses pursuant to
this definition of “Profits” and “Losses,” shall be subtracted from such
taxable income or loss;

 

10

 

(iii)          In
the event the Gross Asset Value of any Company asset is adjusted pursuant to
subparagraph (ii) or subparagraph (iii) of the definition of “Gross
Asset Value” set forth in this Section 1.10, the amount of such adjustment
shall be treated as an item of gain (if the adjustment increases the Gross
Asset Value of the asset) or an item of loss (if the adjustment decreases the
Gross Asset Value of the asset) from the disposition of such asset and shall be
taken into account for purposes of computing Profits or Losses;

 

(iv)          Gain or loss resulting from any
disposition of Property with respect to which gain or loss is recognized for
federal income tax purposes shall be computed by reference to the Gross Asset
Value of the Property disposed of, notwithstanding that the adjusted tax basis
of such Property differs from its Gross Asset Value;

 

(v)           In
lieu of the depreciation, amortization, and other cost recovery deductions
taken into account in computing such taxable income or loss, there shall be
taken into account Depreciation for such Allocation Year, computed in
accordance with the definition of Depreciation;

 

(vi)          To the extent an adjustment to the
adjusted tax basis of any Company asset pursuant to Code Section 734(b) is
required, pursuant to Regulations Section 1.704-(b)(2)(iv)(m)(4),
to be taken into account in determining Capital Accounts as a result of a
distribution other than in liquidation of a Member’s interest in the Company,
the amount of such adjustment shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) from the disposition of such asset and shall be taken
into account for purposes of computing Profits or Losses; and

 

(vii)         Notwithstanding
any other provision of this definition, any items that are specially allocated
pursuant to Section 3.2 or Section 3.3 hereof shall not be taken into
account in computing Profits or Losses.

 

The amounts of the
items of Company income, gain, loss, or deduction available to be specially
allocated pursuant to Sections 3.2 and 3.3 shall be determined by applying rules analogous
to those set forth in subparagraphs (i) through (vi) of this
definition.

 

“Property” means all real
and personal property acquired and owned by the Company (including cash) and
any improvements thereto, and shall include both tangible and intangible
property.

 

“Purchase Offer” has the meaning set forth
in Section 9.4(a) hereof.

 

“Purchaser” has the
meaning set forth in Section 9.4(a) hereof.

 

“Reconstitution Period”
has the meaning set forth in Section 11.1(b) hereof.

 

11

 

“Regulations” means the
Income Tax Regulations, including Temporary Regulations, promulgated under the
Code, as such regulations may be amended from time to time (including
corresponding provisions of succeeding regulations).

 

“Regulatory Allocations”
has the meaning set forth in Section 3.3 hereof.

 

“Retirement” means, as to
any Member, the occurrence of any event or the taking of any action that causes
such Person to cease to be a Member, as set forth in Article X.

 

“Securities” means securities and other
financial instruments issued by United States and foreign entities, including,
without limitation, (i) capital stock; (ii) mortgage-backed securities;
(iii) shares of beneficial interest; (iv) partnership interests,
limited liability company interests, and similar financial instruments; (v) bonds,
notes, debentures (whether subordinated, convertible, or otherwise); (vi) interest
rate, currency, commodity, equity, and other derivative products, including,
without limitation, (A) futures contracts (and options thereon) relating
to stock indices, currencies, United States government securities and
securities of foreign governments, other financial instruments and all other
commodities, (B) swaps, options, rights, warrants, caps, collars, floors,
forward rate agreements, and repurchase and reverse repurchase agreements, (C) spot
and forward currency transactions, and (D) agreements relating to or securing
such transactions; (vii) mutual funds and money market funds; (viii) obligations
of the United States, any state thereof, foreign governments and
instrumentalities of any of them; (ix) commercial paper, certificates of
deposit, banker’s acceptances, trust receipts, letters of credit, and money
market instruments; and (x) other obligations and instruments or evidences
of indebtedness of whatever kind or nature; in each case, of any Person and
whether or not publicly traded or readily marketable.

 

“Seller” has the meaning
set forth in Section 9.4 hereof.

 

“Share” or “Shares” means the limited liability company
interests of the Company authorized by Section 2.2 of this Agreement.

 

“Tax Distributions” has
the meaning set forth in Section 4.2(a) hereof.

 

“Tax Matters Member” has the meaning set
forth in Section 7.3(a) hereof.

 

“Transfer” means (i) as a noun, any
voluntary or involuntary (including pursuant to judicial order (including a
qualified domestic relations order), legal process, execution, attachment or
enforcement of any pledge, trust, or other security interest) transfer, sale,
exchange, assignment, pledge, hypothecation, other encumbrance, gift, bequest,
grant of a security interest, or any other alienation or disposition, and (ii) as
a verb, voluntarily or involuntarily (including pursuant to judicial order
(including a qualified domestic relations order), legal process, execution,
attachment, or enforcement of any pledge, trust, or other security interest) to
transfer, sell, exchange, assign, pledge, hypothecate, encumber, give,
bequeath, grant a security interest in, or otherwise alienate or dispose of.
The term includes any such action whether taken directly by the transferor or
indirectly by, for, or on behalf of the transferor by any other Person,
including by an executor, personal representative, receiver, trustee,
custodian, administrator, or similar official.

 

12

 

Article II

MEMBERS’ CAPITAL CONTRIBUTIONS

 

2.1           Members and Capital Accounts. The name,
address, and Capital Contributions of, and the number of Shares held by, each
Member shall be set forth on Exhibit A attached hereto.  Exhibit A shall be amended by the
Board of Managers from time to time to reflect changes, if any, in the information
set forth therein.  (Any amendment to Exhibit A
made by the Board of Managers in accordance with this Agreement shall not be
deemed an amendment of this Agreement for purposes of Section 8.1
hereof.)  A separate Capital Account
shall be maintained for each Member, including any Member who shall, after the
Effective Date, acquire an interest in the Company.

 

2.2           Shares.  The limited liability company interests of
the Company are represented by Shares. 
The total number of Shares that the Company shall have the authority to
issue is one million (1,000,000). The Board of Managers is hereby authorized,
on behalf of the Company, to issue authorized but unissued Shares to such
Persons and for such Capital Contributions (which may be in cash, property or
services rendered, or a promissory note or other obligation to contribute cash
or property or to perform services, or any combination of the foregoing) as the
Board of Managers, in its sole and absolute discretion, shall determine.  Each Person to whom Shares are issued shall
be admitted to the Company as a Member upon such Person’s execution of this
Agreement in such manner as the Board of Managers shall determine.

 

2.3           Other Matters.

 

(a)           Except as otherwise
provided in this Agreement, no Member shall demand or receive a return of all
or any portion of such Member’s Capital Contributions or withdraw from the
Company without the consent of all of the Members.  Under circumstances requiring a return of any
Capital Contributions, no Member shall have the right to receive property other
than cash except as may be specifically provided herein.

 

(b)           No Member shall
receive any interest, salary, or drawing with respect to such Member’s Capital
Contributions or such Member’s Capital Account or for services rendered on behalf
of the Company or otherwise in such Member’s capacity as a Member, except as
otherwise provided in this Agreement.

 

(c)           No Member or Manager
shall be liable for the debts, liabilities, contracts, or any other obligations
of the Company, whether arising in contract, tort or otherwise, solely by
reason of being a Member or acting as a Manager hereunder.  Except as otherwise provided by this
Agreement, any other agreements among the Members, or mandatory provisions of
applicable state law, a Member shall be liable only to make such Member’s
Capital Contributions and shall not be required to restore a deficit balance in
such Member’s Capital Account or to lend any funds to the Company or, after
such Member’s Capital Contributions have been made, to make any additional
capital contributions to the Company.

 

13

 

(d)           No Manager or Member
shall have any personal liability for the repayment of the Capital
Contributions of any Member.

 

2.4           Investment
Representations.

 

(a)           In
acquiring Shares in the Company, each Member represents and warrants to the
Board of Managers that such Member is acquiring such Shares for such Member’s
own account for investment and not with a view to the sale or distribution of
such Shares, in whole or in part.  Each
Member recognizes that investments such as that contemplated by the Company are
speculative and involve substantial risk. 
Each Member further represents and warrants that the Board of Managers
has not made any guaranty or representation upon which such Member has relied
concerning the possibility or probability of economic profit or loss as a
result of such Member’s acquisition of Shares in the Company.

 

(b)           Each
Member understands and acknowledges that (i) the Shares have not been
registered under the Securities Act of 1933, as amended, in reliance upon an
exemption from such registration; (ii) such Member may not sell, offer for
sale, transfer, pledge, or hypothecate such Member’s Shares, in whole or in
part, in the absence of an effective registration statement covering such
Shares under said Act unless, in the opinion of counsel reasonably acceptable
to the Board of Managers, such sale, offer of sale, transfer, pledge, or
hypothecation is exempt from registration under said Act; (iii) neither
the Company nor the Board of Managers has any obligation to register Shares for
sale or to assist in establishing an exemption from registration for any
proposed sale; and (iv) the foregoing restrictions on transfer (as well as
those set forth in Article IX of this Agreement) may severely
affect the liquidity of such Member’s investment.

 

Article III

ALLOCATIONS

 

3.1.          Profits and Losses.
After giving effect to the special allocations set forth in Sections 3.2 and
3.3, Profits and Losses for each Allocation Year shall be allocated among the
Members in proportion to the number of Shares held by each Member.

 

3.2           Special Allocations.  The following special allocations shall be
made in the following order:

 

(a)           Minimum Gain Chargeback. Except as otherwise provided in Regulations Section 1.704-2(f),
notwithstanding any other provision of this Article III (other than
Section 3.4(a)), if there is a net decrease in Company Minimum Gain during
any Allocation Year, each Member shall be specially allocated items of Company
income and gain for such Allocation Year (and, if necessary, subsequent
Allocation Years) in an amount equal to such Member’s share of the net decrease
in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g).
Allocations pursuant to the previous sentence shall be made in proportion to
the respective amounts required to be allocated to each Member pursuant
thereto. The items to be so allocated shall be determined in accordance with
Regulations Sections 1.704-2(f)(6) and 1.704-2(j)(2). This

 

14

 

Section 3.2(a) is intended to comply with the minimum gain
chargeback requirement in Regulations Section 1.704-2(f) and shall be
interpreted consistently therewith.

 

(b)           Member Minimum Gain Chargeback. Except as otherwise provided in
Regulations Section 1.704-2(i)(4), notwithstanding any other provision of
this Article III (other than Section 3.4(a)), if there is a
net decrease in Member Nonrecourse Debt Minimum Gain attributable to a Member
Nonrecourse Debt during any Allocation Year, each Member who has a share of the
Member Nonrecourse Debt Minimum Gain attributable to such Member Nonrecourse
Debt, determined in accordance with Regulations Section 1.704-2(i)(5),
shall be specially allocated items of Company income and gain for such
Allocation Year (and, if necessary, subsequent Allocation Years) in an amount
equal to such Member’s share of the net decrease in Member Nonrecourse Debt,
determined in accordance with Regulations Section 1.704-2(i)(4).
Allocations pursuant to the previous sentence shall be made in proportion to
the respective amounts required to be allocated to each Member pursuant
thereto. The items to be so allocated shall be determined in accordance with
Regulations Sections 1.704-2(i)(4) and 1.704-2(j)(2). This Section 3.2(b) is
intended to comply with the minimum gain chargeback requirement in Regulations Section 1.704-2(i)(4) and
shall be interpreted consistently therewith.

 

(c)           Qualified Income Offset. 
In the event any Member unexpectedly receives any adjustments,
allocations, or distributions described in Regulations Section 1.704-1(b)(2)(ii)(d)(4),
Section 1.704-1(b)(2)(ii)(d)(5), or Section 1.704-1(b)(2)(ii)(d)(6),
items of Company income and gain shall be specially allocated to such Member in
an amount and manner sufficient to eliminate, to the extent required by the
Regulations, the Adjusted Capital Account Deficit of such Member as quickly as
possible, provided, that an allocation pursuant to this Section 3.2(c) shall
be made only if and to the extent that such Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this Article III
have been tentatively made as if this Section 3.2(c) were not in the
Agreement.

 

(d)           Gross Income Allocation. 
In the event any Member has a deficit Capital Account at the end of any
Allocation Year that is in excess of the amount such Member is obligated to
restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and
1.704-2(i)(5), such Member shall be specially allocated items of Company income
and gain in the amount of such excess as quickly as possible, provided,
that an allocation pursuant to this Section 3.2(d) shall be made only
if and to the extent that such Member would have a deficit Capital Account in
excess of such amount after all other allocations provided for in this Article III
have been made as if Section 3.2(c) and this Section 3.2(d) were
not in the Agreement.

 

(e)           Nonrecourse Deductions. Nonrecourse Deductions for any
Allocation Year shall be specially allocated to the Members in proportion to
the number of Shares held by each Member.

 

(f)            Member Nonrecourse Deductions. Any Member Nonrecourse Deductions for
any Allocation Year shall be specially allocated to the Member who bears

 

15

 

the economic risk of loss
with respect to the Member Nonrecourse Debt to which such Member Nonrecourse
Deductions are attributable in accordance with Regulations Section 1.704-2(i)(1).

 

(g)           Section 754 Adjustments. To the extent an adjustment to the adjusted tax basis
of any Company asset pursuant to Code Section 734(b) or Section 743(b) is
required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Section 1.704-1(b)(2)(iv)(m)(4),
to be taken into account in determining Capital Accounts as the result of a
distribution to a Member in complete liquidation of such Member’s interest in
the Company, the amount of such adjustment to the Capital Accounts shall be treated
as an item of gain (if the adjustment increases the basis of the asset) or as
an item of loss (if the adjustment decreases such basis), and such gain or loss
shall be specially allocated to the Members in accordance with their interests
in the Company in the event Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Member to
whom such distribution was made in the event Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

 

3.3           Curative Allocations.  The allocations set forth in Section 3.2
(the “Regulatory Allocations”) are intended to comply with certain requirements
of the Regulations.  It is the intent of
the Members that, to the extent possible, all Regulatory Allocations shall be
offset either with other Regulatory Allocations or with special allocations of
other items of Company income, gain, loss, or deduction pursuant to this Section 3.3.  Therefore, notwithstanding any other
provision of this Article III (other than the Regulatory
Allocations), the Board of Managers shall make such offsetting special
allocations of Company income, gain, loss, or deduction in whatever manner the
Board of Managers determines appropriate so that, after such offsetting
allocations are made, each Member’s Capital Account balance is, to the extent
possible, equal to the Capital Account balance such Member would have had if
the Regulatory Allocations were not part of this Agreement and all Company
items were allocated pursuant to Section 3.1 hereof.  In exercising its discretion under this Section 3.3,
the Board of Managers shall take into account future Regulatory Allocations
under Sections 3.2(a) and 3.2(b) that, although not yet made, are
likely to offset other Regulatory Allocations previously made under Sections
3.2(c) and 3.2(d).

 

3.4           Other Allocation Rules.

 

(a)           For purposes of
determining the Profits, Losses, or any other items allocable to any period,
Profits, Losses, and any such other items shall be determined on a daily,
monthly, or other basis, as determined by the Board of Managers using any
permissible method under Code Section 706 and the Regulations thereunder.

 

(b)           Profits, Losses, and
any other items of income, gain, loss, or deduction shall be allocated to the
Members pursuant to this Article III as of the last day of each
Allocation Year; provided, that Profits, Losses, and such other items
shall also be allocated at such times as the Gross Asset Values of Property are
adjusted pursuant to subparagraph (ii) of the definition of “Gross Asset
Value” set forth in Section 1.10 hereof, as if each such time were the
last day of an Allocation Year.

 

16

 

(c)           If the interest of a Member in the Company is changed
during an Allocation Year for any reason other than the transfer of all or a
portion of such interest, then such Member’s share of each item of Company
income, gain, loss, deduction, or credit shall be determined for federal income
tax purposes by taking into account such Member’s varying interests during such
Allocation Year using any convention or method permitted by the Code or the
Regulations.

 

(d)           The Members are
aware of the income tax consequences of the allocations made by this Article III
and hereby agree to be bound by the provisions of this Article III
in reporting their shares of Company income and loss for income tax purposes.

 

(e)           Solely for purposes
of determining a Member’s proportionate share of the “excess nonrecourse
liabilities” of the Company within the meaning of Regulations Section 1.752-3(a)(3),
the Members’ interests in Company profits are in proportion to the number of
Shares held by each Member.

 

(f)            In
the event that the Company has taxable income that is characterized as ordinary
income under the recapture provisions of the Code, each Member’s distributive
share of taxable gain or loss from the sale of Company assets shall (to the
extent possible) include a proportionate share of this recapture income equal
to such Member’s share of prior cumulative depreciation deductions with respect
to the assets that gave rise to the recapture income.

 

3.5           Tax Allocations: 
Code Section 704(c). 
Except as otherwise provided in this Section 3.5, each item of
income, gain, loss and deduction of the Company for federal income tax purposes
shall be allocated among the Members in the same manner as such item is
allocated for book purposes under this Article III.  In accordance with Code Section 704(c) and
the Regulations thereunder, income, gain, loss, and deduction with respect to
any property contributed to the capital of the Company shall, solely for tax
purposes, be allocated among the Members so as to take account of any variation
between the adjusted basis of such property to the Company for federal income
tax purposes and its initial Gross Asset Value (computed in accordance with
subsection (i) of the definition of “Gross Asset Value” set forth in Section 1.10
hereof) using the “traditional method” pursuant to the Regulations under Code Section 704(c).

 

In the event the Gross Asset Value of any Company asset is adjusted
pursuant to subsection (ii) of the definition of “Gross Asset Value” set
forth in Section 1.10 hereof, subsequent allocations of income, gain,
loss, and deduction with respect to such asset shall take account of any
variation between the adjusted basis of such asset for federal income tax
purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and
the Regulations thereunder.

 

Any elections or other decisions relating to such allocations shall be
made by the Board of Managers in any manner that reasonably reflects the
purpose and intention of this Agreement. 
Allocations pursuant to this Section 3.5 are solely for purposes of
federal, state, and local taxes and shall not affect, or in any way be taken
into account in computing, any Member’s Capital Account or share of Profits,
Losses, other items, or distributions pursuant to any provision of this
Agreement.

 

17

 

Article IV

DISTRIBUTIONS

 

4.1           Net Cash Available for Distribution.  Net Cash Available for Distribution shall be
determined by the Board of Managers for each Fiscal Quarter as of the end of
such Fiscal Quarter. Except as otherwise provided in Article XI,
the Board of Managers may, in its sole and absolute discretion, distribute any
portion or all, or none, of the Net Cash Available for Distribution, if any,
for each Fiscal Quarter to the Members in proportion to the number of Shares
held by each Member.

 

4.2           Tax
Distributions.

 

(a)           Notwithstanding anything to the
contrary contained in this Article, with respect to any taxable year of the
Company during which the Company does not liquidate or sell all or
substantially all of its assets, the Board of Managers shall use all reasonable
efforts to distribute to each Member (a “Tax Distribution”), on a timely basis,
an amount of cash that shall be sufficient to cause each Member to have
received with respect to such taxable year distributions at least equal to 40%
of the “increase in the cumulative amount of federal taxable income” (as
defined below) allocated to such Member, less any item of partner-level
deduction attributable to such Member as result of an election made under Section 754
of the Code; provided, that (i) in order to take into account
changes in federal, state or local tax laws and regulations, the Board of
Managers may increase or decrease such percentage; and (ii) the Board of
Managers may apply different or separate percentages to different classes of
income. Distributions made pursuant to this Section 4.2 shall be taken
into account as distributions made pursuant to Section 4.1 hereof.

 

(b)           Distributions pursuant to this Section 4.2
shall be made during the taxable year to which such distributions relate for
the purpose of funding the federal and state estimated tax liabilities of the
Members based on the taxable income of the Company during the periods with
respect to which estimated tax payments are due, and shall be made not less
than five (5) days before the due date of each estimated tax payment by an
individual taxpayer.

 

(c)           For purposes of this Section 4.2,
the “increase in the cumulative amount of federal taxable income” for any
taxable year with respect to any Member shall be the excess of (i) the
aggregate allocations of taxable income to such Member for all taxable years of
the Company including such current taxable year, less the aggregate allocations
of taxable loss to such Member for all taxable years of the Company including
such current taxable year, over (ii) the aggregate allocations of taxable
income to such Member for all taxable years of the Company excluding such
current taxable year, less the aggregate allocations of taxable loss to such
Member for all taxable years of the Company excluding such current taxable
year.

 

4.3           Amounts Withheld.  All amounts withheld pursuant to the Code or
any provision of any state or local tax law with respect to any payment,
distribution, or allocation to the Company or the Members shall be treated as
amounts paid or distributed, as the case may be, to the Members with respect to
whom such amounts were withheld pursuant to this Section 4.3 for all
purposes under this Agreement.  The
Company is authorized to withhold from payments and distributions, or with
respect to allocations, to the Members, and to pay over to any federal, state
or local

 

18

 

government, any amounts required to be so withheld
pursuant to the Code or any provisions of any other federal, state or local
law, and shall allocate any such amounts to the Members with respect to whom
such amounts were withheld.

 

4.4           Limitations
on Distributions.

 

(a)           The Company shall make no distributions
to the Members except as provided in this Article IV and Article XI
hereof or as agreed to by all of the Members.

 

(b)           A Member may not receive a distribution from the Company
to the extent that, after giving effect to the distribution, all liabilities of
the Company, other than liabilities to the Members on account of their Capital
Contributions, would exceed the fair value of the Company’s assets.

 

(c)           Notwithstanding
any provision to the contrary contained in this Agreement, the Company shall
not be required to make a distribution to any Member on account of such Member’s
interest in the Company if such distribution would violate the Act or any other
applicable law.

 

Article V

MANAGEMENT

 

5.1           Managers; Board of Managers.

 

(a)           The
management of the Company shall be vested in the Managers.  The Managers shall comprise a “Board
of Managers,” which Board of Managers shall function in the same manner as a
board of directors of a Massachusetts corporation. Managers need not be a Member of the Company.   All actions by the Company
that, if the Company were a corporation, would require approval of a board of
directors under Massachusetts law or for which, if the Company were a
corporation, it would be customary, using good practice, to obtain such
approval, shall require the approval of the Board of Managers.  Each Manager shall have one (1) vote.  Except as otherwise provided in this
Agreement, the Board of Managers shall act by the affirmative vote of a
majority of the total number of Managers.

 

(b)           The
initial number of Managers on the Board of Managers shall be one.  As of the Effective Date, the Manager of the
Company is Harold Brown.  The number of
Managers may be increased or decreased (but not below one) from time to time by
the Consent of the Members.

 

(c)           Each Manager shall
serve as such until the first to occur of such Person’s death, permanent and
total disability, dissolution, termination, Bankruptcy, or resignation or
removal as a Manager.  For purposes of
this Section 5.1, a Manager shall be regarded as permanently and totally
disabled if such Manager is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or that has lasted or can reasonably be
expected to last for a continuous period of not less than six (6) months.  A Manager may resign as such by giving
written notice to the remaining Managers or, if there is no remaining Manager,
to the Members.  Such resignation shall
take effect at the time or upon the event specified therein or, if none is
specified, upon receipt.  Unless

 

19

 

otherwise
specified in the resignation, its acceptance shall not be necessary to make it
effective.  A Manager may be removed at
any time, with or without cause, by the Consent of the Members; provided,
however, that in no event shall the Members have the power or authority
to remove Harold Brown as a Manager.

 

(d)           In the event of a
vacancy in the office of Manager by reason of the death, permanent and total
disability, Bankruptcy, or resignation of Harold Brown, the Members shall, by
the Consent of the Members, elect a Manager to fill such vacancy.  In the event of any further vacancy in the
office of Manager by reason of the death, permanent and total disability,
dissolution, termination, Bankruptcy, or resignation or removal of a Manager,
the Members shall, by the Consent of the Members, either (i) elect a
Manager to fill such vacancy, or (ii) if there is at least one other
Manager then serving, decrease the number of Managers by one in order to
eliminate such vacancy.

 

(e)           In the event of a
vacancy in the office of Manager by reason of an increase in the number of
Managers, the Members shall, by the Consent of the Members, elect a Manager to
fill such vacancy.

 

(f)            Each
Manager shall perform his duties as a Manager in good faith, in a manner he
reasonably believes to be in the best interests of the Company, and with such
care as an ordinarily prudent individual in a like position would use under
similar circumstances. So long as a Manager so performs his duties, such
Manager shall not have any liability by reason of being or having been a
Manager of the Company.

 

(g)           A
Manager shall not be liable under a judgment, decree or order of court, or in
any other manner, for any debt, obligation, or liability of the Company.

 

5.2.          Meetings of the Board of Managers.

 

(a)           The
Board of Managers shall hold regular meetings not less frequently than once
every Fiscal Year and shall establish meeting times, dates, and places, and
requisite notice requirements (not shorter than those provided in Section 5.2(b)),
and adopt rules or procedures consistent with the terms of this Agreement.
Unless otherwise approved by the Board of Managers, each regular meeting of the
Board of Managers will be held at the Company’s principal place of business. At
such meetings the Board of Managers shall transact such business as may
properly be brought before the meeting, whether or not notice of such meeting
referenced the action taken at such meeting.

 

(b)           Special
meetings of the Board of Managers may be called by any Manager. Notice of each
such meeting shall be given to each Manager by telephone, electronic mail,
facsimile transmission, or similar method (in each case, notice shall be given
at least seventy-two (72) hours before the time of the meeting), or by
first-class mail (in which case notice shall be given at least five (5) days
before the meeting), unless a longer notice period is established by the Board
of Managers. Each such notice shall state (i) the time, date, place (which
shall be at the principal office of the Company unless otherwise agreed to by
all of the Managers), or other means of conducting such meeting, and (ii) the
purpose of the meeting to be so held. No actions

 

20

 

other than those
specified in the notice may be considered at any special meeting unless
unanimously approved by the Managers.

 

(c)           Any Manager may waive notice of any
meeting in writing before, at, or after such meeting. The attendance of a
Manager at a meeting shall constitute a waiver of notice of such meeting,
except when a Manager attends a meeting for the express purpose of objecting to
the transaction of any business because the meeting was not properly called.

 

(d)           Any
action required or permitted to be taken at a meeting of the Board of Managers
may be taken at a meeting held by means of conference telephone or other
communications equipment by means of which each Person participating in the
meeting can hear each other Person participating in such meeting. Participation
in such a meeting shall constitute presence in person at such meeting.

 

(e)           Notwithstanding
anything to the contrary contained in this Section 5.2, the Board of
Managers may take without a meeting any action that may be taken by the Board
of Managers under this Agreement if such action is approved by the written
consent of a majority of the total number of Managers.

 

5.3           Authority of the Board of Managers.  Subject to the limitations and restrictions
set forth in this Agreement (including, without limitation, those set forth in
this Article V), the Board of Managers shall have the sole and
exclusive right to manage, control, and direct the business and affairs of the
Company and, in so doing, shall have the right to exercise all of the powers
that may be possessed by the Company under the Act or otherwise, including,
without limitation, the right to exercise the following powers in the name and
on behalf of the Company:

 

(i)            Conduct
the Company’s business, carry on its operations, and have and exercise the
powers granted by the Act in any state, territory, district, or possession of
the United States as may be necessary or convenient to effect any or all of the
purposes for which the Company is organized;

 

(ii)           Acquire
by purchase, lease, or otherwise any real or personal property that may be
necessary, convenient, desirable, appropriate, or incidental to the
accomplishment of the purposes of the Company;

 

(iii)          Operate,
maintain, finance, improve, construct, own, grant options with respect to,
sell, convey, assign, mortgage, and lease any real estate and any personal
property necessary, convenient, or incidental to the accomplishment of the
purposes of the Company;

 

(iv)          Execute
any and all agreements, contracts, documents, certifications, and instruments
necessary or convenient in connection with the management and operation of the
business and affairs of the Company, including executing amendments to this
Agreement and the Certificate, in accordance with the terms of this Agreement,
both as Managers and, if required, as attorney-in-fact for the Members pursuant
to any power of attorney granted by the Members to the Managers;

 

21

 

(v)           Borrow
money and issue evidences of indebtedness necessary, convenient, or incidental
to the accomplishment of the purposes of the Company, and secure the same by
mortgage, pledge, or other lien on any Property;

 

(vi)          Execute,
in furtherance of any or all of the purposes of the Company, any deed, lease,
mortgage, deed of trust, mortgage note, promissory note, bill of sale,
contract, or other instrument purporting to convey or encumber any or all of
the Property;

 

(vii)         Prepay
in whole or in part, refinance, recast, increase, modify, or extend any
liabilities affecting the Property and in connection therewith execute any
extensions or renewals of encumbrances on any or all of the Property;

 

(viii)        Care
for and distribute funds to the Members by way of cash income, return of
capital, or otherwise, all in accordance with the provisions of this Agreement,
and perform all matters in furtherance of the objectives of the Company or this
Agreement;

 

(ix)           Contract
on behalf of the Company for the employment and services of employees and/or
independent contractors, such as property managers, property maintenance
companies, contractors, lawyers, and accountants, and delegate to such Persons
the duty to manage, supervise, or otherwise deal with any of the assets or
operations of the Company;

 

(x)            Engage in any kind
of activity and perform and carry out contracts of any kind (including
contracts of insurance covering risks to Property) necessary or incidental to,
or in connection with, the accomplishment of the purposes of the Company, as
may be lawfully carried on or performed by a limited liability company under
the laws of each state or other jurisdiction in which the Company is then
formed or qualified;

 

(xi)           Take,
or refrain from taking, all actions, not expressly proscribed or limited by
this Agreement, as may be necessary or appropriate to accomplish the purposes
of the Company; and

 

(xii)          Institute,
prosecute, defend, settle, compromise, and dismiss lawsuits or other judicial
or administrative proceedings brought on or in behalf of, or against, the
Company or the Members in connection with activities arising out of, connected
with, or incidental to this Agreement, and to engage counsel or others in
connection therewith.

 

5.4           Right to Rely on Managers.

 

(a)           Any Person dealing
with the Company may rely (without duty of further inquiry) upon a certificate
signed by any Manager as to:

 

(i)            The
identity of any Member or Manager;

 

22

 

(ii)           The
existence or nonexistence of any fact or facts that constitute a condition
precedent to acts by the Company or that are in any other manner germane to the
affairs of the Company;

 

(iii)          The
Persons who are authorized to execute and deliver any instrument or document of
the Company; or

 

(iv)          Any
act or failure to act by the Company or any other matter whatsoever involving
the Company, any Manager, or any Member.

 

(b)           The signature of any
Manager shall be necessary and sufficient to convey title to any real or
personal property owned by the Company or to execute any promissory notes,
trust deeds, mortgages, or other instruments of hypothecation, and all of the
Members agree that a copy of this Agreement may be shown to the appropriate
parties in order to confirm the same, and further agree that the signature of
any Manager shall be sufficient to execute any document necessary to effectuate
this or any other provision of this Agreement. 
All of the Members do hereby appoint any Manager as their
attorney-in-fact for the execution of any or all of the documents described in
this Section 5.4(b).

 

(c)           Each Manager is an
agent of the Company for the purpose of its business and affairs.  The act of any Manager, including, but not
limited to, the execution in the name of the Company of any instrument, for
apparently carrying on in the usual way the business or affairs of the Company
shall be binding upon the Company unless (i) such Manager in fact has no
authority to act for the Company in the particular matter, and (ii) the
Person with whom such Manager is dealing has knowledge of the fact that such
Manager has no such authority.

 

5.5           Restrictions on Authority of the Managers.  Notwithstanding anything to the contrary
contained in this Agreement, the Board of Managers shall have no authority to,
and each Manager hereby covenants and agrees that he shall not, cause or allow
the Company to do any of the following acts without the Consent of the Members:

 

(i)            Engage
in any activity that is not consistent with the purposes of the Company as set
forth in Section 1.3 hereof;

 

(ii)           Do
any act in contravention of this Agreement;

 

(iii)          Possess
or assign rights in the Property of the Company other than for a Company
purpose;

 

(iv)          Admit
any additional Members, other than pursuant to Section 2.2 or Section 9.7
hereof;

 

(v)           Perform
any act that would subject any Member to personal liability for the debts or
obligations of the Company in any jurisdiction;

 

(vi)          File
on behalf of the Company any voluntary petition in Bankruptcy; or

 

23

 

(vii)         Cause
or permit the Company to liquidate or dissolve.

 

5.6           Duties and Obligations of the Board of Managers.

 

(a)           The Board of
Managers shall cause the Company to conduct its business and affairs separate
and apart from the business and affairs of any Member or Manager, or any
Affiliate of any Member or Manager, including, without limitation, (i) segregating
Company assets and not allowing funds or other assets of the Company to be
commingled with the funds or other assets of, held by, or registered in the
name of any Member or Manager, or any Affiliate of any Member or Manager, (ii) maintaining
books and financial records of the Company separate from the books and
financial records of any Member or Manager and the Affiliates of any Member or
Manager, and observing all Company procedures and formalities, (iii) causing
the Company to pay its liabilities from assets of the Company, and (iv) causing
the Company to conduct its dealings with third parties in its own name and as a
separate and independent entity.

 

(b)           The Board of
Managers shall take all actions that may be necessary or appropriate (i) for
the continuation of the Company’s valid existence as a limited liability
company under the laws of the Commonwealth of Massachusetts and of each other
jurisdiction in which such existence is necessary to protect the limited
liability of the Members or to enable the Company to conduct the business in
which it is engaged, and (ii) for the accomplishment of the Company’s
purposes in accordance with the provisions of this Agreement and applicable
laws and regulations.

 

(c)           The Board of
Managers shall be under a fiduciary duty to conduct the affairs of the Company
in the best interests of the Company and of the Members, including the use of
all of the Property for the exclusive benefit of the Company.

 

(d)           The Board of
Managers shall cause to be provided, or cause the Company to carry, such
insurance as is customary in the business in which the Company is engaged and
in the place or places in which it is so engaged.

 

5.7           Indemnification.

 

(a)           Except as otherwise
provided in Section 5.7(e), the Company, its receiver, or its trustee (in
the case of its receiver or trustee, to the extent of the Property) shall
indemnify each Manager and each Member against, hold each such Person harmless
from, and pay all Expenses incurred by each such Person as a result of any and
all claims and demands whatsoever against each such Person relating to any act
performed or omitted to be performed by such Person in connection with the
Company’s business and affairs. 
Indemnification hereunder shall include, without limitation, payment by
the Company of Expenses incurred in defending a civil or criminal action or
proceeding in advance of the final disposition of such action or proceeding,
but only upon receipt of an undertaking by the Person indemnified to repay such
payment if such Person shall be adjudicated not to be entitled to
indemnification hereunder.  Any such
undertaking may be accepted without reference to the financial ability of the
Person indemnified to make repayment.

 

24

 

(b)           Except as otherwise
provided in Section 5.7(e), the Company, its receiver, or its trustee (in
the case of its receiver or trustee, to the extent of the Property) shall
indemnify and hold harmless, to the maximum extent permitted by law, each
Manager and each Member from and against any and all liabilities, sums paid in
settlement of claims (if such settlement is consented to by the Board of
Managers), obligations, charges, actions (formal or informal), claims
(including, without limitation, claims for personal injury under any theory or
for real or personal property damage), liens, taxes, administrative
proceedings, losses, damages (including, without limitation, foreseeable,
unforeseeable, consequential, and punitive damages), penalties, fines, court
costs, administrative service fees, response and remediation costs,
stabilization costs, encapsulation costs, treatment, storage or disposal costs,
groundwater monitoring or environmental study, sampling or monitoring costs,
and any other costs and reasonable expenses (including, without limitation,
reasonable attorneys’, experts’, and consultants’ fees and disbursements and
investigating, laboratory, and data review fees) imposed upon or incurred by
the Person indemnified (whether or not indemnified against by any other party)
and arising from and after the Effective Date directly or indirectly out of:

 

(i)            the
past, present, or future treatment, storage, disposal, generation, use,
transport, movement, presence, release, threatened release, spill,
installation, sale, emission, injection, leaching, dumping, escaping, or
seeping of any Hazardous Substances, or material containing or alleged to
contain Hazardous Substances, at or from any past, present, or future
properties or assets of the Company;

 

(ii)           the
violation or alleged violation by the Company or any third party of any
Environmental Laws with regard to the past, present, or future ownership,
operation, use, or occupying of any property or asset of the Company; or

 

(iii)          any
Environmental Claim arising in connection with any business or activities of
the Company.

 

(c)           Except as otherwise
provided in Section 5.7(e), in the event of any action by a Member against
any one or more of the Managers, including a Company derivative suit, the
Company shall indemnify, save harmless, and pay all Expenses of each such
Manager incurred in the defense of such action, but only if such Manager is not
judged liable in such action.

 

(d)           Except as otherwise
provided in Section 5.7(e), the Company shall indemnify, save harmless and
pay all Expenses of any Manager or Member who, for the benefit of the Company
and in accordance with this Agreement, makes any deposit, acquires any option,
or makes any other similar payment or assumes any obligations in connection
with any property proposed to be acquired or leased by the Company and who
suffers any financial loss as the result of such action.

 

(e)           No Manager or Member
shall be indemnified by the Company with respect to any matter as to which such
Person shall have been adjudicated in any proceeding not to have acted in good
faith in the reasonable belief that such Person’s action was in the best
interest of the Company.

 

25

 

(f)            Notwithstanding
anything to the contrary in any of Sections 5.7(a), 5.7(b), 5.7(c), 5.7(d) and
5.7(e) above, in the event that any provision in any of such Sections is
determined to be invalid in whole or in part, such Section shall be
enforced to the maximum extent permitted by law.

 

5.8           Compensation; Expenses of Manager.

 

(a)           Compensation
and Reimbursement.  Except as
otherwise approved by the Consent of the Members, no Manager shall receive any
salary, fee, or draw for services rendered to or on behalf of the Company, nor
shall any Manager be reimbursed for any expenses incurred by such Manager on
behalf of the Company.

 

(b)           Reimbursement
of Expenses.  Notwithstanding
the foregoing, the Company shall reimburse the Members and Managers for all
expenses incurred and paid by any of them in connection with the conduct of the
Company’s business and affairs, including, but not limited to, expenses of
maintaining an office, telephone, travel, office equipment, and secretarial and
other personnel as may reasonably be attributable to the Company. Such expenses
shall not include any expenses incurred in connection with a Member or Manager’s
exercise of such Person’s rights as a Member or Manager apart from the
authorized conduct of the Company’s business and affairs. The Board of Managers’
determination, in its sole discretion, of (i) which expenses are properly
allocable to, and shall be reimbursed as a result of, the conduct and operation
of the Company’s business and affairs, and (ii) the amount of such
expenses, shall be conclusive on all Persons concerned. Any reimbursement of
expenses under this Section 5.8(b) shall be treated as an expense of
the Company and shall not be deemed to constitute a distribution to any Member
of Profit, Loss, or capital of the Company.

 

5.9           Loans.  Any Member, Manager, or Affiliate of any
Member or Manager may, with the consent of the Board of Managers, lend or
advance money to the Company.  If any
Member shall make a loan to the Company or advance money on its behalf, the
amount of such loan or advance shall not be treated as a contribution to the
capital of the Company but shall be a Debt due from the Company to the lending
Member.  The amount of any loan or
advance by a lending Manager, Member, or Affiliate of a Member or Manager shall
be repayable out of the Company’s cash and shall bear interest at such rate
(not to exceed the maximum rate permitted by law) as shall be determined by the
Board of Managers taking into consideration, without limitation, prevailing
interest rates and the interest rates the lender is required to pay in the
event such lender has itself borrowed funds to loan or advance to the Company,
and the terms and conditions of such loan, including the rate of interest,
shall be no less favorable to the Company than if the lender had been an
independent third party.  None of the
Members, the Managers, or their Affiliates shall be obligated to make any loan
or advance to the Company.

 

Article VI

ROLE OF MEMBERS

 

6.1           Rights or Powers.  No Member (other than a Member who is a
Manager and then only in such Person’s capacity as a Manager) shall have any
right or power to take part in the management or control of the Company or its
business and affairs or to act for or bind the

 

26

 

Company in any
way.  Notwithstanding the foregoing, the
Members shall have all of the rights and powers specifically set forth in this
Agreement and, to the extent not inconsistent with this Agreement, in the Act.

 

6.2           Voting Rights.  The Members shall have the right to vote only
on those matters set forth in this Agreement or in the Act that are
specifically reserved for their approval or consent.  Each Member shall have one vote for each
Share held by such Member.

 

6.3           Procedure for Consent.  In any circumstances requiring the approval
or consent of the Members as specified in this Agreement, such approval or
consent shall, except as expressly provided to the contrary in this Agreement,
be given or withheld in the sole and absolute discretion of each Member and
conveyed in writing to the Board of Managers not later than thirty (30) days
after such approval or consent is requested by the Board of Managers.  The Board of Managers may require response
within a shorter time, but not less than ten (10) Business Days.  The failure by any Member to respond in any
such time period shall constitute a vote that is consistent with the Board of
Managers’ recommendation with respect to the proposal.  If the Board of Managers receives the Consent
of the Members to such action, the Board of Managers shall be authorized and
empowered to implement such action without further authorization by the
Members.

 

Article VII

BOOKS AND RECORDS

 

7.1.          Accounting, Books and Records.

 

(a)           The
Company shall keep on site (i) at its principal place of business separate
books of account for the Company that shall show a true and accurate record of
all costs and expenses incurred, all charges made, all credits made and
received, and all income derived in connection with the conduct of the Company
and the operation of its business and affairs in accordance with this
Agreement, and (ii) at its registered office in the Commonwealth of
Massachusetts all documents that the Company is required to keep at such
registered office by Section 9 of the Act.

 

(b)           The
Company shall use such method of accounting in preparation of its financial
reports and for tax purposes as shall be determined by the Board of Managers,
in its discretion, and the Company shall keep its books and records
accordingly. Any Member or such Member’s designated representative shall have
the right, during normal business hours, to have reasonable access to, and
inspect and copy, the contents of the books and records of the Company. The
rights granted to a Member pursuant to this Section 7.1(b) are
expressly subject to compliance by such Member with the safety, security, and
confidentiality procedures and guidelines of the Company, as such procedures
and guidelines may be established and modified from time to time by the Board
of Managers.

 

7.2.          Reports.  The Board
of Managers shall be responsible for (i) causing the preparation of such
financial reports of the Company as the Board of Managers may from time to time
determine, and (ii) coordinating the financial matters of the Company with
the Company’s

 

27

 

accountants.

 

7.3.          Tax Matters.

 

(a)           Tax Elections. The Tax Matters Member shall, without any further
consent of the Members being required (except as specifically required herein),
make any and all elections for federal, state, local, and foreign tax purposes,
including, without limitation, any election, if permitted by applicable law: (i) to
make the election provided for in Code Section 6231(a)(1)(B)(ii); (ii) to
adjust the basis of Property pursuant to Code Sections 754, 734(b), and 743(b),
or comparable provisions of state, local, or foreign law, in connection with
Transfers of Shares and Company distributions; (iii) with the consent of
all of the Members, to extend the statute of limitations for assessment of tax
deficiencies against the Members with respect to adjustments to the Company’s
federal, state, local, or foreign tax returns; and (iv) to the extent
provided in Code Sections 6221 through 6231 and similar provisions of federal,
state, local, or foreign law, to represent the Company and the Members before
taxing authorities or courts of competent jurisdiction in tax matters affecting
the Company or the Members in their capacities as Members, and to file any tax
returns and execute any agreements or other documents relating to or affecting
such tax matters, including agreements or other documents that bind the Members
with respect to such tax matters or otherwise affect the rights of the Company
and the Members. Harold Brown is specifically authorized to act as the “Tax
Matters Member” under the Code and in any similar capacity under state, local,
or foreign law.

 

(b)           Tax Information. Necessary tax information shall be
delivered to each Member as soon as practicable after the end of each Fiscal
Year of the Company.

 

Article VIII

AMENDMENTS

 

8.1           Amendments.

 

(a)           A proposed amendment
to this Agreement shall be adopted and be effective as an amendment to this
Agreement only if it receives the Consent of the Members.

 

(b)           Notwithstanding Section 8.1(a) hereof,
this Agreement shall not be amended without the consent of each Member
adversely affected if such amendment would (i) increase the Capital
Contribution payable by such Member, (ii) modify the limited liability of
such Member, or (iii) alter the interest of such Member in Profits,
Losses, or other items, or in any Company distributions.

 

Article IX

TRANSFERS OF INTERESTS

 

9.1           Restriction on Transfers.

 

(a)           Except as otherwise
permitted by this Agreement, no Member shall Transfer all or any part of such
Member’s Shares without the consent of the Board of Managers, which may be

 

28

 

given, withheld,
or conditioned in its sole and absolute discretion.  In the event that any Member pledges or
otherwise encumbers any of such Member’s Shares in the Company as security for
the payment of a debt, any such pledge or hypothecation shall be made pursuant
to a pledge or hypothecation agreement that requires the pledgee or secured
party to be bound by all of the terms and conditions of this Article IX.

 

(b)           Notwithstanding
anything to the contrary contained in this Agreement, no Member shall Transfer
any Shares to any Person (regardless of the manner in which such Member
initially acquired such Shares) at any time if such Transfer would constitute a
violation of any federal or state securities or blue sky laws or a breach of
the conditions to any exemption from registration of Shares under any such laws
or a breach of any undertaking or agreement of such Member entered into
pursuant to such laws or in connection with obtaining an exemption thereunder.

 

9.2           Permitted Transfers.  Subject to the conditions and restrictions
set forth in Section 9.3 hereof, a Member may at any time, without the
consent of the Board of Managers, Transfer all or any part of such Member’s
Shares to (a) any other Member, (b) any member of the transferor’s
Family, (c) the transferor’s executor, administrator, guardian,
conservator, trustee, or personal representative to whom such Shares are
transferred at death or involuntarily by operation of law, (d) if the
transferor is a trust, the beneficiaries to whom such Shares are transferred
pursuant to the terms of the governing instrument upon the termination of the
trust, (e) if the transferor is a corporation, general or limited
partnership, or limited liability company, the equity holders to whom such
Shares are transferred upon the dissolution of such entity, or (f) any
Purchaser in accordance with Section 9.4 hereof (any such Transfer being
referred to in this Agreement as a “Permitted Transfer”).  For purposes hereof, a Member’s “Family”
shall include only such Member’s spouse, natural or adoptive lineal ancestors
or descendants, and trusts for the exclusive benefit of any one or more of such
Member and the individual members of such Member’s Family.

 

9.3           Conditions to Permitted Transfers.  A Transfer shall not be treated as a
Permitted Transfer under Section 9.2 hereof unless and until the following
conditions are satisfied:

 

(a)           Except in the case
of a Transfer of Shares at death or involuntarily by operation of law, the
transferor and transferee shall execute and deliver to the Company such
documents and instruments of conveyance as may be necessary or appropriate in
the opinion of counsel to the Company to effect such Transfer and to confirm
the agreement of the transferee to be bound by the provisions of this Article IX.  In the case of a Transfer of Shares at death
or involuntarily by operation of law, the Transfer shall be confirmed by
presentation to the Company of legal evidence of such Transfer, in form and
substance satisfactory to counsel to the Company.  In all cases, the Company shall be reimbursed
by the transferor and/or transferee for all costs and expenses that the Company
reasonably incurs in connection with such Transfer.

 

(b)           Except in the case
of a Transfer at death or involuntarily by operation of law, unless otherwise
approved by the Board of Managers, no Transfer of Shares shall be made except
upon terms that would not, in the opinion of counsel chosen by and mutually
acceptable

 

29

 

to the Board of
Managers and the transferor Member, result in the termination of the Company
within the meaning of Code Section 708 or cause the Company to cease to be
classified as a “partnership” for federal income tax purposes.

 

(c)           The transferor and
transferee shall furnish the Company with the transferee’s taxpayer
identification number and sufficient information to determine the transferee’s
initial tax basis in the Shares transferred, and any other information
reasonably necessary to permit the Company to file all required federal and
state tax returns and other legally required information statements or returns.  Without limiting the generality of the
foregoing, the Company shall not be required to make any distribution otherwise
provided for in this Agreement with respect to any transferred Shares until it
has received such information.

 

(d)           Except in the case
of a Transfer of Shares at death or involuntarily by operation of law, either (a) such
Shares shall be registered under the Securities Act of 1933, as amended, and
any applicable state securities laws, or (b) the transferor shall provide
an opinion of counsel, which opinion and counsel shall be satisfactory to the
Company, to the effect that such Transfer is exempt from all applicable
registration requirements and that such Transfer will not violate any
applicable laws regulating the Transfer of securities.

 

9.4.          Right of First Refusal. In addition to the other limitations and restrictions
set forth in this Article IX, no Member shall Transfer all or any
portion of such Member’s Shares (the “Offered Shares”) unless such Member (the “Seller”)
first offers to sell the Offered Shares pursuant to the terms of this Section 9.4.

 

(a)           Limitation on Transfers. No Transfer may be made under this Section 9.4
unless the Seller has received a bona fide written offer (the “Purchase Offer”)
from a Person (the “Purchaser”) to purchase the Offered Shares for a purchase
price (the “Offer Price”) denominated and payable in United States dollars at
closing or according to specified terms, with or without interest, which offer
shall be in a writing signed by the Purchaser and shall be irrevocable for a
period ending no sooner than the Business Day following the end of the Offer
Period, as hereinafter defined.

 

(b)           Offer Notice. Prior to making any Transfer that is
subject to the terms of this Section 9.4, the Seller shall give to the
Board of Managers and each other Member a written notice (the “Offer Notice”)
that shall include a copy of the Purchase Offer and an offer (the “Firm Offer”)
to sell the Offered Shares to the Company and to the other Members (the “Offerees”)
for the Offer Price, payable according to the same terms as (or more favorable
terms than) those contained in the Purchase Offer, provided, that the
Firm Offer shall be made without regard to the requirement of any earnest money
or similar deposit required of the Purchaser prior to closing, and without
regard to any security (other than the Offered Shares) to be provided by the
Purchaser for any deferred portion of the Offer Price.

 

(c)           Offer Period. The Firm Offer shall be irrevocable for
a period (the “Offer Period”) ending at 11:59 p.m., local time at the
Company’s principal place of business, on the ninetieth (90th) day following
the day of the Offer Notice.

 

30

 

(d)           Acceptance of Firm Offer.

 

(i)            Acceptance
by the Company.  At any time during
the first forty-five (45) days of the Offer Period, the Company may accept the
Firm Offer as to all or any portion of the Offered Shares, by giving written
notice of such acceptance to the Seller and each Offeree, which notice shall
indicate the number of the Offered Shares that the Company wishes to
purchase.  (The Company may, in the sole
and absolute discretion of the Board of Managers, assign its right of first
refusal hereunder, in whole or in part, to any Person or Persons, including,
without limitation, any Manager or any Affiliate of the Company.  All subsequent references in this Section 9.4
to the Company shall include each, if any, such assignee.)  In the event that (A) the Company timely
accepts the Firm Offer with respect to all or any portion of the Offered
Shares, and (B) one or more Offerees accept the Firm Offer, pursuant to Section 9.4(d)(ii) below,
with respect to all (if any) of the Offered Shares that the Company does not
elect to purchase, then the Company shall purchase all of the Offered Shares
that it elects to purchase, in accordance with the terms of the Firm Offer, at
a closing held pursuant to Section 9.4(e).

 

(ii)           Acceptance
by the Offerees.  If the
Company does not timely accept the Firm Offer with respect to all of the Offered
Shares, then, at any time during the last forty-five (45) days of the Offer
Period, any Offeree may accept the Firm Offer as to all or any portion of the
Offered Shares that the Company does not elect to purchase, by giving written
notice of such acceptance to the Seller, the Board of Managers and each other
Offeree, which notice shall indicate the maximum number of such Offered Shares
that such Offeree is willing to purchase. In the event that Offerees (“Accepting
Offerees”), in the aggregate, accept the Firm Offer with respect to all of the
Offered Shares that the Company does not elect to purchase, then the Firm Offer
shall be deemed to be accepted and each Accepting Offeree shall be deemed to
have accepted the Firm Offer as to that number of such Offered Shares that
corresponds to the ratio of the number of Offered Shares that such Accepting
Offeree indicated a willingness to purchase to the aggregate number of Offered
Shares that all Accepting Offerees indicated a willingness to purchase. If the
Company and one or more of the Offerees do not accept the Firm Offer as to all
of the Offered Shares during the Offer Period, the Firm Offer shall be deemed
rejected in its entirety.

 

(e)           Closing of Purchase Pursuant to
Firm Offer. In the event that the Firm Offer is accepted (by any one or more of
the Company and the Offerees), the closing of the sale of the Offered Shares to
any one or more of the Company and the Accepting Offerees shall take place
within thirty (30) days after the Firm Offer is accepted or, if later, the date
of closing set forth in the Purchase Offer. The Seller and those Persons
purchasing the Offered Shares pursuant to their acceptance of the Firm Offer
shall execute such documents and instruments as may be necessary or appropriate
to effect the sale of the Offered Shares pursuant to the terms of the Firm
Offer and this Article IX.

 

(f)            Sale Pursuant to Purchase Offer
if Firm Offer Rejected. If the Firm Offer is not accepted in the manner
hereinabove provided, the Seller may sell the Offered Shares to the Purchaser
at any time within sixty (60) days after the last day of the Offer Period, provided,
that

 

31

 

such sale shall be
made on terms no more favorable to the Purchaser than the terms contained in
the Purchase Offer and, provided, further, that such sale
complies with other terms, conditions, and restrictions of this Agreement that
are not expressly made inapplicable to sales occurring under this Section 9.4.
In the event that the Offered Shares are not sold in strict accordance with the
terms of the preceding sentence, the Offered Shares shall again become and be
subject to all of the conditions and restrictions of this Section 9.4.

 

9.5           Prohibited Transfers.  Any purported Transfer of Shares that is not
a Permitted Transfer and to which the Board of Managers does not give its
consent shall be null and void and of no force or effect whatever; provided,
that, if the Company is required to recognize a Transfer that is not a
Permitted Transfer and that did not receive the consent of the Board of
Managers, the interest in the Company so transferred shall be strictly limited
to the transferor’s rights to allocations and distributions as provided by this
Agreement with respect to the transferred Shares, which allocations and
distributions may be applied (without limiting any other legal or equitable
rights of the Company) to satisfy any debts, obligations, or liabilities for
damages that the transferor or transferee of such Shares may have to the
Company.

 

In the case of a Transfer or attempted Transfer of Shares that is not a
Permitted Transfer and that does not receive the consent of the Board of
Managers, the parties engaging or attempting to engage in such Transfer shall
be liable to indemnify and hold harmless the Company and the Members from all
Expenses that any of such indemnified Persons may incur (including, without
limitation, incremental tax liability and attorneys’ fees and expenses) as a
result of such Transfer or attempted Transfer and efforts to enforce the
indemnity granted hereby.

 

9.6           Rights of Unadmitted Assignees.  A Person who acquires one or more Shares in a
Permitted Transfer or in any other Transfer to which the Board of Managers
consents, but who is not admitted as a substituted Member pursuant to Section 9.7
hereof, shall be entitled only to allocations and distributions with respect to
such Shares in accordance with this Agreement, and shall have no right to any
information or accounting of the affairs of the Company, shall not be entitled
to inspect the books or records of the Company, and shall not have any of the
rights of a Member under the Act or this Agreement.

 

9.7           Admission of Transferees as Members.  Subject to the other provisions of this Article IX,
a transferee of Shares may be admitted to the Company as a substituted Member
only upon satisfaction of the conditions set forth below in this Section 9.7:

 

(a)           The Board of
Managers consents to such admission, which consent may be given or withheld in
the sole and absolute discretion of the Board of Managers;

 

(b)           The
Shares with respect to which the transferee is being admitted were acquired by
means of either a Permitted Transfer or a Transfer that was not a Permitted
Transfer but which received the consent of the Board of Managers;

 

(c)           The transferee
becomes a party to this Agreement as a Member and executes such documents and
instruments as the Board of Managers may reasonably

 

32

 

request
as necessary or appropriate to confirm such transferee as a Member in the
Company and such transferee’s agreement to be bound by the terms and conditions
hereof;

 

(d)           The
transferee pays or reimburses the Company for all reasonable legal, filing, and
publication costs that the Company incurs in connection with the admission of
the transferee as a Member with respect to the transferred Shares; and

 

(e)           If the transferee is
not an individual of legal majority, the transferee provides the Company with
evidence satisfactory to counsel for the Company of the authority of the
transferee to become a Member and to be bound by the terms and conditions of
this Agreement.

 

9.8           Distributions and Allocations in Respect of
Transferred Interests.  If any
Shares are transferred during any Allocation Year in compliance with the
provisions of this Article IX, Profits, Losses, each item thereof,
and all other items attributable to such Shares for such Allocation Year shall
be divided and allocated between the transferor and the transferee by taking
into account their varying interests during such Allocation Year in accordance
with Code Section 706(d), using any conventions permitted by law and
selected by the Board of Managers.  All
distributions on or before the date of such Transfer shall be made to the
transferor, and all distributions thereafter shall be made to the
transferee.  Solely for purposes of
making such allocations and distributions, the Company shall recognize such
Transfer not later than the end of the calendar month during which it is given
notice of such Transfer; provided, that, if the Company is given notice
of a Transfer at least ten (10) Business Days prior to the Transfer, the
Company shall recognize such Transfer as of the date of such Transfer; and, provided
further, that, if the Company does not receive a notice stating the date
such Shares were transferred, and such other information as the Board of
Managers may reasonably require, within thirty (30) days after the end of the
Allocation Year during which the Transfer occurred, then all of such items
shall be allocated, and all distributions shall be made, to the Person who,
according to the books and records of the Company, was the owner of such transferred
Shares on the last day of the Allocation Year during which the Transfer
occurred.  Neither the Company nor any
Manager shall incur any liability for making allocations and distributions in
accordance with the provisions of this Section 9.8, whether or not the
Company has knowledge of any Transfer of ownership of any Shares.

 

Article X

RETIREMENT

 

10.1         Retirement. 
A Person shall cease to be a Member upon the occurrence of any of the
following events:

 

(a)           The
Transfer of all of such Person’s Shares in the Company by means of a Permitted
Transfer or by means of a Transfer that is not a Permitted Transfer but that
receives the consent of the Board of Managers;

 

(b)           The
Bankruptcy of such Person;

 

33

 

(c)           If
such Person is an individual, the death of such Person or the entry of an order
by a court of competent jurisdiction adjudicating such Person incompetent to
manage his person or estate;

 

(d)           If
such Person is a trust, the termination of the trust (but not the substitution
of a new trustee);

 

(e)           If
such Person is itself a limited liability company, partnership, or similar
entity, the dissolution and commencement of winding up of such limited
liability company, partnership, or similar entity;

 

(f)            If
such Person is a corporation, the filing of a certificate of its dissolution or
the equivalent under relevant state law or the administrative or judicial
dissolution of such corporation and the lapse of 90 days after notice to the
corporation of such dissolution without reinstatement;

 

(g)           If
such Person is an estate, the distribution by the fiduciary of such estate’s
entire Interest in the Company; or

 

(h)           Such
Person’s resignation in violation of this Agreement.

 

10.2         Status Upon Retirement.  In the event a Person ceases to be a Member,
pursuant to Section 10.1 hereof, without having transferred all of such
Person’s Shares in the Company, then such Person shall be treated as an
unadmitted transferee of Shares with only those rights set forth in Section 9.6
of this Agreement.  No Person who ceases
to be a Member shall be entitled to receive from the Company, solely by reason
of such Person’s Retirement, the fair value of such Person’s Shares in the
Company (or any portion thereof) as of the date of such Person’s Retirement.

 

10.3         Withdrawal. 
No Member shall have the power to withdraw from the Company by voluntary
act.  Any attempted voluntary withdrawal
by a Member shall be null and void and of no force or effect whatever.

 

Article XI

DISSOLUTION
AND WINDING UP

 

11.1         Dissolution Events.

 

(a)           Dissolution.  The Company shall dissolve and commence
winding up and liquidating upon the first to occur of any of the following (“Dissolution
Events”):

 

(i)            December 31,
2109;

 

(ii)           The
dissolution, winding up, and liquidation of the Company is approved by the
Consent of the Members;

 

34

 

(iii)          The sale or other disposition of all
or substantially all of the Property;

 

(iv)          The occurrence of any other event that
makes carrying on the business and affairs of the Company unlawful, impossible,
or impractical;

 

(v)           Ninety
(90) days after the date on which the Company no longer has at least one
Member, unless at least one new Member is admitted to the Company within such
ninety-day period; or

 

(vi)          The
entry of a decree of judicial dissolution under Section 44 of the Act.

 

The Members hereby
agree that, notwithstanding any provision of the Act, the Company shall not
dissolve prior to the occurrence of a Dissolution Event.  Without limiting the generality of the
preceding sentence, the Company shall not dissolve upon the Retirement of any
Member if there is then at least one other Member.

 

(b)           Reconstitution. 
If it is determined, by a court of competent jurisdiction, that the
Company has dissolved prior to the occurrence of a Dissolution Event, then,
within ninety (90) days after the effective date of such determination (the “Reconstitution
Period”), all of the Members may elect to reconstitute the Company and continue
its business on the same terms and conditions set forth in this Agreement by
forming a new limited liability company on terms identical to those set forth
in this Agreement. Unless such an election is made within the Reconstitution
Period, the Company shall liquidate and wind up its affairs in accordance with Section 11.2
hereof. If such an election is made within the Reconstitution Period, then:

 

(i)            The
reconstituted limited liability company shall continue until the occurrence of
a Dissolution Event as provided in Section 11.1(a);

 

(ii)           Unless
otherwise agreed to by the Consent of the Members, the Certificate and this
Agreement shall automatically constitute the Certificate and operating
agreement of such new limited liability company. All of the assets and
liabilities of the dissolved Company shall be deemed to have been automatically
assigned, assumed, conveyed, and transferred to the new company. No bond,
collateral, assumption, or release of any Member’s or the Company’s liabilities
shall be required; provided, that the right of the Members to select
successor managers and to reconstitute and continue the Company’s business and
affairs shall not exist and may not be exercised unless the Company has
received an opinion of counsel that the exercise of the right would not result
in the loss of limited liability of any Member and neither the Company nor the
reconstituted limited liability company would cease to be treated as a
partnership for federal income tax purposes upon the exercise of such right to
continue.

 

11.2         Winding Up. 
Upon the occurrence of (i) a Dissolution Event, or (ii) the
determination by a court of competent jurisdiction that the Company has
dissolved prior to the occurrence of a Dissolution Event (unless the Company is
reconstituted pursuant to Section 11.1(b) hereof), the Company shall
continue solely for the purposes of winding up its affairs in an orderly
manner, liquidating its assets, and satisfying the claims of its creditors and
Members,

 

35

 

and neither any Manager nor any Member shall take any
action that is inconsistent with, or not necessary to or appropriate for, the
winding up of the Company’s business and affairs, provided, that all
covenants contained in this Agreement and obligations provided for in this
Agreement shall continue to be fully binding upon the Managers and the Members
until such time as the Property has been distributed pursuant to this Section 11.2
and the Certificate has been canceled pursuant to the Act. The Board of Managers
shall be responsible for overseeing the winding up and dissolution of the
Company, which winding up and dissolution shall be completed within ninety (90)
days of the occurrence of the Dissolution Event or within ninety (90) days
after the last day on which the Company may be reconstituted pursuant to Section 11.1(b) hereof,
as the case may be. The Board of Managers shall take full account of the
Company’s liabilities and Property and shall cause the Property, or the
proceeds from the sale thereof, to the extent sufficient therefor, to be
applied and distributed, to the maximum extent permitted by law, in the
following order:

 

(a)           First, to creditors (including any
Member or Manager who is a creditor, to the extent otherwise permitted by law)
in satisfaction of all of the Company’s Debts and other liabilities (whether by
payment or the making of reasonable provision for payment thereof); and

 

(b)           The balance, if any, to the Members in proportion to the number of Shares
held by each Member; provided, however, that, if a Member’s
Capital Account shall be less than the amount that such Member would receive
pursuant to Section 4.1 hereof, then such Member shall not receive an
amount in excess of such Member’s Capital Account.

 

If any Member has a deficit balance in such Member’s Capital Account
(after giving effect to all contributions, distributions, and allocations for
all Allocation Years, including the Allocation Year during which such
liquidation occurs), such Member shall have no obligation to make any contribution
to the capital of the Company with respect to such deficit, and such deficit
shall not be considered a debt owed to the Company or to any other Person for
any purpose whatsoever.

 

In the discretion of the Board of Managers, a pro rata portion of the
distributions that would otherwise be made to the Members pursuant to this Article XI
may be:

 

(i)            Distributed to a trust established
for the benefit of the Members for the purposes of liquidating Company assets,
collecting amounts owed to the Company, and paying any contingent or unforeseen
liabilities or obligations of the Company. The assets of any such trust shall
be distributed to the Members from time to time, in the reasonable discretion
of the Board of Managers, in the same proportions as the amount distributed to
such trust by the Company would otherwise have been distributed to the Members
pursuant to this Section 11.2; or

 

(ii)           Withheld
to provide a reasonable reserve for Company liabilities (contingent or
otherwise) and to reflect the unrealized portion of any installment

 

36

 

obligations owed to the Company, provided, that such withheld
amounts shall be distributed to the Members as soon as practicable.

 

No Member or
Manager shall receive any compensation for any services performed pursuant to
this Article XI.

 

11.3         Compliance With Certain Requirements of Regulations.   In the event the Company is liquidated
within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g) but no Dissolution Event has occurred, the Property
shall not be liquidated, the Company’s Debts and other liabilities shall not be
paid or discharged, and the Company’s affairs shall not be wound up. Instead,
solely for federal income tax purposes, the Company shall be deemed to have
contributed all of the Property and liabilities to a new limited liability
company in exchange for an interest in such new limited liability company and,
immediately thereafter, the Company shall be deemed to liquidate by
distributing interests in the new limited liability company to the Members.

 

11.4         Rights of Members.  Except as otherwise provided in this
Agreement, each Member shall look solely to the Property of the Company for the
return of such Member’s Capital Contributions and shall have no right or power
to demand or receive Property, other than cash, from the Company. If the assets
of the Company remaining after payment or discharge of the Debts or other
liabilities of the Company are insufficient to return a Member’s Capital
Contributions, such Member shall have no recourse against the Company, the
Manager, or any other Member.

 

11.5.        Termination. 
Upon completion of the distribution of the Company’s Property as
provided in this Article XI, the Company shall be terminated, and
the Board of Managers shall cause the filing of the Certificate of Cancellation
pursuant to the Act and shall take all such other actions as may be necessary
to terminate the Company.

 

11.6         Allocations During Period of Dissolution. During the period commencing on the first day of the
Fiscal Year during which a Dissolution Event occurs and ending on the date on
which all of the assets of the Company have been distributed to the Members
pursuant to Section 11.2 hereof, the Members shall continue to share
Profits, Losses, gain, loss and other items of Company income, gain, loss, or
deduction in the manner provided in Article III hereof.

 

11.7         Character of Liquidating
Distributions. All payments made in liquidation of the interest of a Member in the
Company shall be made in exchange for the interest of such Member in Property
pursuant to Code Section 736(b)(1), including the interest of such Member
in Company goodwill.

 

11.8.        Form of Liquidating
Distributions. For purposes of making distributions required by Section 11.2
hereof, the Board of Managers may determine whether to distribute all or any
portion of the Property in-kind or to sell all or any portion of the Property
and distribute the proceeds therefrom.

 

37

 

Article XII

POWER OF
ATTORNEY

 

12.1         Managers as Attorney-In-Fact.  Each Member hereby makes, constitutes, and
appoints each Manager, severally, with full power of substitution and
resubstitution, such Member’s true and lawful attorney-in-fact for him and in
his name, place, and stead and for his use and benefit, to sign, execute,
certify, acknowledge, swear to, file, and record —

 

(a)           All certificates and other
instruments (including counterparts of this Agreement) that the Board of
Managers may deem necessary or appropriate to be filed by the Company under the
laws of the Commonwealth of Massachusetts or any other state or jurisdiction in
which the Company is doing, or intends to do, business;

 

(b)           Any and all amendments or changes to
this Agreement and the instruments described in paragraph (a), as now or
hereafter amended, that the Board of Managers may deem necessary or appropriate
to effect a change or modification of the Company in accordance with the terms
of this Agreement, including, without limitation, amendments or changes to
reflect (i) the exercise by the Board of Managers or Manager of any power
granted to the Board of Managers under this Agreement, (ii) any amendments
adopted by the Members in accordance with the terms of this Agreement, (iii) the
admission of any substituted Member, and (iv) the disposition by any
Member of any or all of his Shares;

 

(c)           A
Certificates of Cancellation and other certificates and instruments that the
Board of Managers may deem necessary or appropriate to effect the dissolution
and termination of the Company pursuant to the terms of this Agreement; and

 

(d)           Any
other instrument that is now or may hereafter be required by law to be filed on
behalf of the Company or is deemed necessary or appropriate by the Board of
Managers to carry out fully the provisions of this Agreement in accordance with
its terms.

 

Each Member
authorizes each such attorney-in-fact to take any further action that such
attorney-in-fact shall consider necessary or advisable in connection with any
of the foregoing, hereby giving each such attorney-in-fact full power and
authority to do and perform each and every act or thing whatsoever requisite or
advisable to be done in connection with the foregoing as fully as such Member
might or could do personally, and hereby ratifying and confirming all that any
such attorney-in-fact shall lawfully do or cause to be done by virtue thereof
or hereof.

 

12.2         Nature as Special Power.  The power of attorney granted pursuant to
this Article XII:

 

(a)           Is a special power of attorney coupled
with an interest and is irrevocable;

 

38

 

(b)           May be
exercised by any such attorney-in-fact by listing the Members executing any
agreement, certificate, instrument, or other document with the single signature
of any such attorney-in-fact acting as attorney-in-fact for such Members; and

 

(c)           Shall
survive the death, disability, legal incapacity, Bankruptcy, insolvency,
dissolution, or cessation of existence of a Member and shall survive the
delivery of an assignment by a Member of the whole or a portion of his Shares, except
that, where the assignment is of all of such Member’s Shares and the
assignee, with the consent of the Board of Managers, is admitted as a
substituted Member, the power of attorney shall survive the delivery of such
assignment for the sole purpose of enabling any such attorney-in-fact to effect
such substitution.

 

Article XIII

MISCELLANEOUS

 

13.1         Notices. 
Any notice, payment, demand, or communication required or permitted to
be given by any provision of this Agreement shall be in writing and shall be
deemed to have been delivered, given, and received for all purposes (i) if
delivered personally to the Person or to an officer of the Person to whom the
same is directed, or (ii) when the same is actually received, if sent
either by registered or certified mail, postage and charges prepaid, or by
facsimile, if such facsimile is followed by a hard copy of the facsimile
communication sent promptly thereafter by registered or certified mail, postage
and charges prepaid, addressed as follows, or to such other address as such
Person may from time to time specify by notice to the Members:

 

(a)           If to the Company or
to the Board of Managers, to the Company’s address set forth in Section 1.4
hereof;

 

(b)           If
to a Member, to the address set forth on Exhibit A hereto.

 

Any such notice
shall be deemed to be delivered, given, and received for all purposes as of the
date so delivered by overnight courier.

 

13.2         Binding Effect.  Except as otherwise provided in this
Agreement, every covenant, term, and provision of this Agreement shall be
binding upon and inure to the benefit of the Members and their respective
heirs, legatees, legal representatives, successors, transferees, and assigns.

 

13.3         Headings. 
Section and other headings contained in this Agreement are for
reference purposes only and are not intended to describe, interpret, define, or
limit the scope, extent, or intent of this Agreement or any provision hereof.

 

13.4         Severability.  Every provision of this Agreement is intended
to be severable.  If any term or
provision hereof is illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the validity or legality of the
remainder of this Agreement.

 

39

 

13.5         Further Action.  Each Member, upon the request of the Board of
Managers, agrees to perform all further acts and execute, acknowledge, and
deliver any documents that may be reasonably necessary, appropriate, or
desirable to carry out the provisions of this Agreement.

 

13.6         Variation of Pronouns.  All pronouns and any variations thereof shall
be deemed to refer to masculine, feminine, or neuter, singular or plural, as
the identity of the Person or Persons may require.

 

13.7         Governing Law.  The laws of the Commonwealth of Massachusetts
shall govern the validity of this Agreement, the construction of its terms, and
the interpretation of the rights and duties of the Members.

 

13.8         Specific Performance. Each Member agrees with the other
Members that the other Members would be irreparably damaged if any of the
provisions of this Agreement were not performed in accordance with their
specific terms and that monetary damages would not provide an adequate remedy
in such event. Accordingly, it is agreed that, in addition to any other remedy
to which the nonbreaching Members may be entitled, at law or in equity, the
nonbreaching Members shall be entitled to injunctive relief to prevent breaches
of the provisions of this Agreement and specifically to enforce the terms and
provisions hereof in any action instituted in any court of the United States or
any state thereof having subject matter jurisdiction thereof.

 

13.9         Legends. If any Shares in the Company are
represented by certificates or instruments, such certificates or instruments
shall contain any legends required by law and reasonably required by the Board
of Managers.

 

13.10       Counterpart Execution.  This Agreement may be executed in any number
of counterparts with the same effect as if all of the Members had signed the
same document.  All counterparts shall be
construed together and shall constitute one agreement.

 

IN WITNESS WHEREOF, the parties have entered into this
Limited Liability Company Operating Agreement as of the Effective Date.

 

	
   

  	
  MEMBERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Harold Brown

  

 

[SIGNATURES CONTINUED ON
FOLLOWING PAGE]

 

40

 

	
   

  	
  NERA 1994
  Irrevocable Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Sally E.
  Michael, Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Robert Somma,
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Harold Brown
  1996 Irrevocable Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Sally E.
  Michael, Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Robert Somma,
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Harold Brown
  1997 Irrevocable Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Sally E.
  Michael, Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Robert Somma,
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Maurec, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Harold Brown,
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANAGER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Harold Brown

  

 

41

 

Exhibit A

To

Limited Liability Company Operating
Agreement

Of

HBC Holdings, LLC

 

(As of April 13, 2009)

 

	
  Name and Address

  	
   

  	
  Capital Contributions

  	
   

  	
  Number of

  Shares

  
	
  Robert Somma and Sally E. Michael, as Trustees of the Harold Brown 1997
  Irrevocable Trust

  c/o The Hamilton Company, Inc.

  39 Brighton Avenue

  Boston, MA 02134

  	
   

  	
   

  	
   

  	
  35.7189

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Harold Brown
 c/o The Hamilton Company, Inc.

  39 Brighton Avenue

  Boston, MA 02134

  	
   

  	
   

  	
   

  	
  28.1289

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert Somma and Sally E. Michael, as Trustees of the Harold Brown 1996
  Irrevocable Trust

  c/o The Hamilton Company, Inc.

  39 Brighton Avenue

  Boston, MA 02134

  	
   

  	
   

  	
   

  	
  22.5146

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert Somma and Sally E. Michael, as Trustees of the NERA 1994
  Irrevocable Trust

  c/o The Hamilton Company, Inc. 39 Brighton
  Avenue Boston, MA 02134

  	
   

  	
   

  	
   

  	
  10.0147

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Robert Somma and Sally E. Michael, as Trustees of the Pruitt Oliver
  1994 Irrevocable Trust

  	
   

  	
   

  	
   

  	
  0.9799

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Maurec, Inc.
 c/o The Hamilton Company, Inc.

  39 Brighton Avenue

  Boston, MA 02134

  	
   

  	
   

  	
   

  	
  2.6430

  

 

42

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