Document:

Exhibit
10.34

 

REAL ESTATE PURCHASE AGREEMENT

 

THIS REAL ESTATE PURCHASE AGREEMENT
(the “Agreement”) is made and entered into as of February 28, 2005 (the “Effective
Date”), by and between BENCHMARK ELECTRONICS,
INC., whose address is 4065 Theurer Blvd., P.O. Box 5025, Winona,
Minnesota 55987-5025 (the “Buyer”), and
DAVID H. ARNOLD AND MURIEL M. ARNOLD,
his wife, of 1853 Edgewood Road, Winona, Minnesota 55987, AND DANIEL M. RUKAVINA AND PATRICIA A. RUKAVINA,
of 17824 North Windfall Drive, Surprise, Arizona 85374 (the “Seller”).

 

In consideration of the mutual covenants contained in this Agreement,
the parties hereby agree as follows:

 

1.             Purchase
of Property.  Seller shall sell to
Buyer and Buyer shall purchase from Seller the following property (collectively,
the “Property”):

 

a.             Real
Property.  The tracts or parcels of
land situated in Winona County, Minnesota, as legally described on the attached
Exhibit A (the “Land”), together with all buildings and improvements
constructed or located thereon (the “Buildings”), and all right, title and
interest in any roads, easements, alleys or rights-of-way servicing or
adjoining such land and rights of every kind and nature benefiting or
appurtenant to the Land (the Land and Buildings are collectively referred to as
the “Real Property”), free and clear of liens and encumbrances except
encumbrances listed in Exhibit A attached hereto and other encumbrances
consented to in writing by Buyer (“Permitted Encumbrances”).

 

b.             Personal
Property.  Seller’s interest in all
fixtures, machinery, equipment, appliances, furniture, supplies, and other
tangible personal property located on or attached and appurtenant to, or
forming part of, the Real Property, except personal property of Seller located
in the metal storage building (collectively, the “Personal Property”).

 

c.             Contracts.  Seller’s interest in leases and other
contracts, if any, relating to the Real Property and Personal Property, set
forth on Exhibit B, which Buyer agrees to assume (“Assumed Contracts”).

 

d.             Plans.  Originals and copies, if any, of the “as-built”
blueprints, construction plans and specifications regarding the Real Property
and the building systems located thereon, including, but not limited to
heating, ventilating, air conditioning, plumbing, electrical and security
systems (“Plans”) if the Plans are in Seller’s possession or under Seller’s
control.

 

e.             Records.  The records of Seller relating to the
operation and management of the Property, including records of management, real
estate taxes and assessments, insurance, maintenance, repairs, capital
improvements and services, including environmental reports and studies (“Records”)
if the

 

 

Records are in Seller’s
possession or under Seller’s control; provided, however, that Seller may make
and/or retain copies of such records.

 

2.             Purchase
Price and Manner of Payment.  The
purchase price for the Property shall be $5,900,000.00 (the “Purchase Price”).  The Purchase Price shall be payable by wire
transfer or other form of immediately available funds on the Closing Date (as
defined below).

 

3.             Costs,
Prorations and Adjustments.

 

a.             Costs
relating to this Agreement shall be allocated between Buyer and Seller as
follows:

 

i.              Title
Insurance and Closing Fee.  Seller
shall pay all costs of the Title Evidence (as defined below in Section 4).  Buyer will pay the premium for the ALTA Form
B Owner’s Title Policy, and any closing fee and charge imposed by Title (as
defined below in Section 4).

 

ii.             Deed
Tax.  Seller shall pay all state deed
and/or transfer tax regarding the Warranty Deed to be delivered by Seller.

 

iii.            Real
Estate Taxes and Special Assessments. 
Buyer shall be responsible for the payment of all Real Estate Taxes and
Special Assessments due and payable prior to the Closing Date per the existing
obligations of Buyer under the Lease Agreements affecting the Real Property (as
each of those terms are defined in such Lease Agreements).  Buyer shall assume and be responsible for the
payment of all Real Estate Taxes and Special Assessments due and payable in
2005 and thereafter.

 

iv.            Recording
Costs.  Seller will pay the cost of
recording all documents necessary to place record title in the condition
warranted and represented by Seller in this Agreement.  Buyer will pay the cost of recording all
other documents.

 

v.             Rent
Revenue.  All rent revenue arising
from the leases affecting the Real Property shall be prorated and paid by Buyer
as of the later of March 31, 2005, or the actual Closing Date, so that
Seller receives prorate rent revenue from Buyer due prior to the later of March 31,
2005, or the actual Closing Date.

 

4.             Evidence
of Title and Title Examination.

 

a.             Within
fifteen (15) days after the Effective Date, Seller, at Seller’s own expense,
shall furnish the following to Buyer (collectively the “Title Evidence”):

 

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i.              Abstract
and Title Insurance Commitment.  A
commitment for an ALTA Form B Owner’s title insurance policy (the “Commitment”)
issued by Chicago Title Insurance Company (“Title”) insuring Buyer’s title to
the Real Property, agreeing to delete standard exceptions upon receipt of a
standard Seller’s Affidavit, and including the additional insurance
endorsements listed in Exhibit A.  The
Commitment shall commit Title to insure title to the Real Property.  The Commitment shall include proper searches
covering bankruptcies, state and federal judgments and liens and levied and
pending special assessments.  Copies of
all recorded documents affecting exceptions to title to the Real Property must
accompany the Commitment.  If the Real
Property is abstract property, Seller shall also deliver to Title or Buyer the
Abstract of Title to the Real Property, if the Abstract is in Seller’s
possession or under Seller’s control.

 

ii.             Survey.  Copies of any “as-built” surveys of the
Property in the Seller’s possession or under Seller’s control.

 

b.             Buyer’s
Objections.  The Buyer shall have
fourteen (14) days after receipt of all of the above Title Evidence to furnish
written objections (the “Buyer’s Objections”) to the form or content of the
title to Seller.  Buyer’s failure to make
Buyer’s Objections within such fourteen-day period shall constitute a waiver of
such Buyer’s Objections.  Seller shall
use good faith efforts to cure any defect in the title on or before the Closing
Date.  If Seller shall fail to cure any
defect on or before the Closing Date, Buyer may, at its sole election:

 

i.              terminate
this Agreement without any liability on its part;

 

ii.             if
the objections are liens that may be removed by the payment of sums of money,
take title to the Property pursuant to the terms of this Agreement, and
discharge any such liens and deduct the same from the cash due and payable to
Seller on the Closing Date; or

 

iii.            waive
the objections and close this transaction.

 

5.             Seller’s
Representations and Warranties.  As a
material inducement to Buyer to enter into this Agreement and with the
understanding that the Buyer will be relying thereon in consummating the
purchase of the Property, Seller represents and warrants to Buyer that the
following statements are true and correct as of the date of this Agreement and
will be true and correct on the Closing Date as if made on that date:

 

a.             Title
to Real Property.  Seller has good
and marketable title to the Real Property, free and clear of all encumbrances
except Permitted Encumbrances.

 

3

 

b.             Contracts.  All contracts in effect regarding the
Property are set forth on Schedule B.  Seller is not a party to any other written or
oral contracts relating to or affecting the Property.  The Contracts are in full force and neither
Seller, nor any other party to the Contracts, is in default under the
Contracts.

 

c.             Improvements.  Except as listed in Permitted Encumbrances,
Seller has no knowledge of any public improvements (water, sewer, sidewalk,
street, alley, curbing, etc.) or condemnation actions affecting the Real
Property which have been completed or are in progress and for which assessments
may be levied after Closing.  Seller has
no knowledge of any planned improvements which may result in assessments or
condemnation actions.  If Seller becomes
aware of any planned improvements or condemnation actions before Closing Date,
it will immediately notify Buyer of such planned improvements or condemnation
actions.

 

d.             No
Conflict or Breach.  The execution
and delivery of this Agreement and the consummation of the transactions
contemplated herein by Seller will not (i) result in a breach of any of the
terms or conditions of, or constitute a default under, any mortgage, note,
bond, indenture, agreement, license or other instrument or obligation
(including any Contracts) to which Seller is now a party or by which it or any
of their properties or assets may be bound or affected or (ii) violate any
order, writ, injunction or decree of any court, administrative agency or
governmental body.

 

e.             Proceedings.  There is no action, litigation,
investigation, condemnation or proceeding of any kind pending or threatened
against Seller or any portion of the Property.

 

Seller further represents and warrants to Buyer that the following
statements are true and correct as of July 30, 1996, the date of leases
pursuant to which Buyer has been in continuous and exclusive possession of the
Property:

 

f.              Wells.  There is one “Well” on the Property within
the meaning of Minn. Stat. Chap. 103I, as identified on the Well
Certificate attached hereto as Exhibit C.

 

g.             Storage Tanks.  No underground storage tanks are located
under, in or about the Real Property.

 

h.             Individual
Sewage Treatment Systems.  There are
no “individual sewer treatment systems” on the Property, as that term is
defined in Minn. Stat. § 115.55.

 

6.             Contingencies.  Buyer’s obligations under this Agreement are
contingent upon satisfaction of each of the following conditions:

 

4

 

a.             Representations
and Warranties.  Except as limited in
the preceding paragraph, the representations and warranties of Seller contained
in this Agreement must be true now and on the Closing Date as if made on the
Closing Date and Seller shall have delivered to Buyer on the Closing Date a
certificate dated the Closing Date, signed by Seller, certifying that Seller’s
representations and warranties are true as of the Closing Date (the “Bring-Down
Certificate”).

 

b.             Title.  The Title Evidence is in accordance with the
requirements and terms of Section 4, on or before the Closing Date.

 

c.             Performance
of Seller’s Obligations.  Seller
shall have performed all of the obligations required to be performed by Seller
under this Agreement, as and when required by this Agreement.

 

d.             Document Review.  Buyer
shall have determined in its sole discretion, on or before the Contingency
Date, that it is satisfied with its review and analysis of the Contracts.

 

The “Contingency Date” shall be March 31,
2005.  If any such contingency has not
been satisfied on or before the Contingency Date or Closing Date, as the case
may be, then this Agreement may be terminated, at Buyer’s option, by written
notice from Buyer to Seller.  Such notice
of termination may be given at any time on or before the Contingency Date or
the Closing Date, as the case may be.  If
Buyer fails to give notice of termination as provided in this paragraph, Buyer’s
right of termination will be deemed waived. 
All the contingencies set forth in this Section 6 are specifically
stated and agreed to be for the sole and exclusive benefit of the Buyer and the
Buyer shall have the right, at its sole option, to waive any contingency by
written notice to Seller.

 

7.             Additional
Covenants of Seller and Buyer.

 

a.             Operation
Prior to Closing.  From the Effective
Date through the Closing Date (the “Executory Period”), the Parties shall
perform and abide by the terms of the Lease Agreements between Seller and
Buyer, and the Property shall be maintained and insured in accordance
therewith.

 

b.             Inspections.  Seller acknowledges that Buyer, and Buyer’s
agents, may inspect, investigate and test the Property.  Buyer shall pay all costs and expenses of any
inspections, investigations and tests.

 

c.             Records.  Within ten (10) days after the Effective
Date, Seller shall deliver to Buyer true and correct copies of the Contracts
and all environmental studies and assessments, test results, engineering
studies and reports, and reports of accessibility studies or audits conducted
for purposes of assessing compliance with the ADA in Seller’s possession or
under Seller’s control.

 

5

 

d.             Damage.  If, prior to the Closing Date, all or any part
of the Property is substantially damaged by fire, earthquake, casualty, the
elements or any other cause, Seller shall immediately give notice to Buyer of
such fact and the Closing Date shall be immediately postponed for thirty days,
and at Buyer’s option (to be exercised within thirty days after Seller’s
notice), this Agreement shall terminate, in which event neither party will have
any further obligations under this Agreement. 
If Buyer fails to elect to terminate in such thirty days despite such
damage, or if the Property is damaged but not substantially, Seller shall
promptly commence to repair such damage or destruction and return the property
to its condition prior to such damage. 
If such damage shall be completely repaired prior to the Closing Date then
there shall be no reduction in the Purchase Price and Seller shall retain the
proceeds of all insurance related to such damage.  If such damage shall not be completely
repaired prior to the Closing Date but Seller is diligently proceeding to
repair, then Seller shall complete the repair after the Closing Date and shall
be entitled to receive the proceeds of all insurance related to such damage
after repair is completed; provided, however, Buyer shall have the right to
delay the Closing Date until repair is completed.  If Seller shall fail to diligently proceed to
repair such damage then Buyer shall have the right to require a closing to
occur and the Purchase Price (and specifically the cash portion payable at the
Closing Date) shall be reduced by the cost of such repair, or at Buyer’s
option, the Seller shall assign to Buyer all right to receive the proceeds of
all insurance related to such damage and the Purchase Price shall remain the
same.  For purposes of this Section, the
words, “substantially damaged” mean damage that would cost $75,000.00 or more
to repair.

 

e.             Condemnation.  If, prior to the Closing Date, eminent domain
proceedings are commenced against all or any part of the Property, Seller shall
immediately give notice to Buyer of such fact and the Closing Date shall be
immediately postponed for thirty days, and Buyer will have the option (to be
exercised within thirty days after receipt of Seller’s notice), to terminate
this Agreement, in which event neither party will have further obligations
under this Agreement.  If Buyer shall
fail to give such notice then there shall be no reduction in the Purchase
Price, and Seller shall assign to Buyer at the Closing Date all of Seller’s
right, title and interest in and to any award made or to be made in the
condemnation proceedings.  Prior to the
Closing Date, Seller shall not designate counsel, appear in, or otherwise act
with respect to the condemnation proceedings without Buyer’s prior written
consent.

 

f.              Mutual
Indemnification.  Except for any
claim or cause of action relating to the ownership, operation or maintenance to
the metal storage building located southeast of the “EMD East Facility,” Seller
agrees to indemnify Buyer against all liabilities (including reasonable
attorneys’ fees in defending against claims) asserted by any party other than
Seller or Buyer arising out of the ownership, operation or maintenance of the
Property

 

6

 

prior to July 30,
1996.  The date for the termination of
Seller’s indemnification for such metal storage building shall be the Closing
Date.  Buyer agrees to indemnify Seller
against all liabilities (including reasonable attorneys’ fees in defending
against claims) asserted by any party other than Seller or Buyer arising out of
the ownership, operation or maintenance of the Property after July 30,
1996.  With respect to the metal storage
building located southeast of the “EMD East Facility,” the obligation of Buyer
to indemnify Seller shall commence on the day after the Closing Date.  Such rights to indemnification will not arise
to the extent that (i) the party seeking indemnification actually receives
insurance proceeds or other cash payments directly attributable to the
liability in question (net of the cost of collection, including reasonable
attorneys’ fees) or (ii) the claim for indemnification arises out of the act or
neglect of the party seeking indemnification. 
If and to the extent that the indemnified party has insurance coverage,
or the right to make a claim against any third party for any amount to be
indemnified against as set forth above, the indemnified party will, upon full
performance by the indemnifying party of their indemnification obligations,
assign such rights to the indemnifying party or, if such rights are not
assignable, the indemnified party will diligently pursue such rights by
appropriate legal action or proceeding and assign the recovery and/or right of
recovery to the indemnifying party to the extent of the indemnification payment
made by such party.

 

g.             Brokers.  Seller and Buyer represent and warrant to
each other that they have dealt with no brokers or finders in connection with
this transaction.

 

8.             Closing
and Possession.  The consummation of
the transactions contemplated under this Agreement (“Closing”) shall be held on
March 31, 2005 (“Closing Date”) in the offices of Buyer, which is 4065
Theurer Blvd., Winona, Minnesota 55987-5025, or at such other time and place as
may be mutually agreed upon by Buyer and Seller.  Possession of the Property shall be delivered
to Buyer immediately after Closing. 
Seller shall remove all personal property, debris and garbage from the
metal shed building on or before the Closing Date.

 

a.             Seller’s
Closing Obligations.  On the Closing
Date, Seller shall execute and/or deliver to Buyer the following (collectively “Seller’s
Closing Documents”) in form reasonably satisfactory to Buyer:

 

i.              Warranty
Deed.  A Warranty Deed, conveying the
Real Property to Buyer, free and clear of all encumbrances, except the
Permitted Encumbrances.

 

ii.             Lease
Termination Agreement.  A Lease
Termination Agreement executed by Seller and Buyer pertaining to the existing
Lease Agreements affecting the Real Property, whereby each party releases the
other from any and all existing and future claims,

 

7

 

whether known or unknown,
pending or threatened, actual or contingent, that arise out of or are related
to the Lease Agreements or the lease or use of the Real Property in general.

 

iii.            Bill
of Sale.  A Bill of Sale, in form
reasonably satisfactory to Buyer, conveying the Personal Property to Buyer,
free and clear of all liens and encumbrances.

 

iv.            Assignment
of Contracts.  An Assignment and
Assumption of Contracts, in form reasonably satisfactory to Buyer, conveying
Contracts to Buyer, free and clear of all encumbrances, together with the
consent of all parties having a right to consent to such Assignment.

 

v.             Title
Policy.  The Title Policy, or a
suitably marked-up Commitment for Title Insurance initialed by Title, in the
form required by this Agreement.

 

vi.            Bring-Down
Certificate.  The Bring-down
Certificate (as defined in Section 6.a.

 

vii.           Seller’s
Affidavit.  An Affidavit of Title by
Seller indicating that on the Closing Date there are no outstanding,
unsatisfied judgments, tax liens or bankruptcies against or involving Seller or
the Property; that there has been no skill, labor or material furnished to the
Property at the instance of Seller for which payment has not been made or for
which mechanics’ liens could be filed; and that there are no other unrecorded
interests in the Property created or suffered by Seller; together with whatever
standard owner’s affidavit and/or indemnity which may be required by Title to
issue an Owner’s Policy of Title Insurance with the standard exceptions waived.

 

viii.          FIRPTA Affidavit.  A
non-foreign affidavit, properly executed, containing such information as is
required by IRC Section 1445(b)(2) and its regulations.

 

ix.            Other
Documents.  All other documents reasonably
determined by Buyer to be necessary to transfer the Property to Buyer free and
clear of all encumbrances, except the Permitted Encumbrances.

 

b.             Buyer’s
Closing Obligations.  On the Closing
Date, Buyer will execute and/or deliver to Seller the following (collectively “Buyer’s
Closing Documents”) in form reasonably satisfactory to Seller:

 

i.              Documents.  Such Affidavits of Buyer, Certificates of
Value or other documents as may be reasonably required by Title in order to

 

8

 

record the Seller’s Closing
Documents and issue the Title Insurance Policy required by this Agreement; and

 

ii.             Purchase
Price.  Payment by Buyer to Seller of
Purchase Price.

 

9.             Miscellaneous
Provisions.

 

a.             Performance.  Time is of the essence for all provisions of
this Agreement.

 

b.             Survival.  All of the terms of this Agreement to be
performed or enforceable after the Closing shall survive the Closing and
delivery of the Warranty Deed to Buyer, and shall be enforceable after the
Closing.

 

c.             Notices.  Any notice required or permitted to be given
by any party upon the other is given in accordance with this Agreement if it is
directed to Seller by delivering it personally to Seller; or if it is directed
to Buyer, by delivering it personally to Buyer; or if mailed by United States
registered or certified mail, return receipt requested, postage prepaid; or if
transmitted by facsimile, copy followed by mailed notice as above required; or
if overnight courier, properly addressed as follows:

 

If to Buyer:            Benchmark
Electronics, Inc.

Attn:  Jamey Lideen

Winona Division

4065 Theurer Blvd.

Winona, MN  55987

 

If to Seller:             David
H. Arnold

Daniel M. Rukavina

1853 Edgewood Road

Winona, MN  55987

 

Notice shall be deemed effective on the earlier of the date of receipt
or the date of deposit as aforesaid; provided, however, that if notice is given
by deposit, that the time for response to any notice by the other party shall
commence to run one business day after any such deposit.  Any party may change their address for the
service of notice by giving written notice of such change to the other party,
in any manner above specified, ten (10) days prior to the effective date of
such change.

 

d.             Captions.  The paragraph headings or captions appearing
in this Agreement are for convenience only, are not a part of this Agreement
and are not to be considered in interpreting this Agreement.

 

e.             Modification.  Buyer and Seller may modify this Agreement or
waive any of their terms in writing only.

 

9

 

f.              Binding
Effect.  This Agreement binds and
benefits the parties and their successors and assigns.

 

g.             Remedies.  If Buyer defaults under this Agreement,
Seller may, in addition to any other remedy available to Seller at law or
equity, terminate this Agreement by giving written notice of termination to
Buyer, which notice shall specify the default. 
If Buyer fails to cure the default within 30 days of the date of such
notice, Seller may, in addition to any other remedy available to Seller at law
or equity, terminate this Agreement. If Seller defaults under this Agreement,
Buyer may seek from Seller (i) specific performance of this Agreement or (ii)
damages.  However, Buyer shall have no
right to seek damages from Seller for Buyer’s loss of their bargain in failing
to acquire the Property.

 

h.             Controlling
Law.  This Agreement has been made
under the laws of the State of Minnesota, and such laws will control its
interpretation.

 

i.              Like Kind
Exchange. Buyer and Seller acknowledge that Seller may wish to structure
Seller’s disposition of the Property in a manner intended by Seller to
constitute an exchange of the Property for property of a like kind (the
``Replacement Property’’) pursuant to Section 1031 of the Internal Revenue
Code of 1986, as amended (an ``Exchange’’). Notwithstanding anything in this
Agreement to the contrary, Seller may assign Seller’s interest in this
Agreement, without Buyer’s consent, to such person or entity as Seller may
designate to serve as a Qualified Intermediary (within the meaning of Treasury
Regulation § 1.1031(k)-1(g)(4)) for the sole purpose of enabling Seller to
effect such an Exchange; provided, however, that notwithstanding any such
assignment, Seller shall not be released from any of Seller’s liabilities,
obligations or covenants under this Agreement.

 

Buyer shall cooperate in all reasonable respects with Seller to effect
any Exchange; provided, however, that (i) Seller’s ability to consummate an
Exchange shall not be a condition to the obligations of Seller under this
Agreement, and Buyer does not warrant and shall not be responsible for any of
the tax consequences to Seller with respect to the transactions contemplated
hereunder, and (ii) Buyer shall not be required to incur any additional costs
or expenses as a result of any Exchange.

 

10

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
effective as of the day and year first above written.

 

SELLER:

 

 

	
   

  	
  /s/ David H.
  Arnold

  	
   

  	
  3/9/05

  
	
   

  	
  David H.
  Arnold

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Muriel
  M. Arnold

  	
   

  	
  3/9/05

  
	
   

  	
  Muriel M.
  Arnold

  	
   

  	
  Date

  

 

11

 

SELLER:

 

 

	
   

  	
  /s/ Daniel
  M. Rukavina

  	
   

  	
  3/8/05

  
	
   

  	
  Daniel M.
  Rukavina

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Patricia
  A. Rukavina

  	
   

  	
  3/8/05

  
	
   

  	
  Patricia A.
  Rukavina

  	
   

  	
  Date

  

 

 

(Signature Page to Real Estate
Purchase Agreement by and between Benchmark Electronics, Inc., David H. Arnold,
Muriel M. Arnold, Daniel M. Rukavina and Patricia A. Rukavina)

 

12

 

BUYER:

 

	
   

  	
  BENCHMARK ELECTRONICS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Cary T.
  Fu

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President
  and CEO

  	
   

  
	
   

  	
   

  	
  Date:

  	
  3/10/05

  	
   

  	
   

  
								

 

 

(Signature Page to Real Estate
Purchase Agreement by and between Benchmark Electronics, Inc., David H. Arnold,
Muriel M. Arnold, Daniel M. Rukavina and Patricia A. Rukavina)

 

13

 

EXHIBIT
A

 

Legal
Description of the Real Property:

 

Lots One (1), Two (2), and
Three (3), Block Two (2), Goodview Industrial Park, being located upon and forming
a part of the Southeast Quarter of the Southwest Quarter (SE 1⁄4 of SW 1⁄4) of Section Seventeen
(17), Township One Hundred Seven (107) North, of Range Seven (7), West of the
Fifth Principal Meridian, Winona County, Minnesota.

 

That part of the Southeast Quarter
of the Southwest Quarter (SE 1⁄4 of SW 1⁄4) of Section Seventeen (17),
Township One Hundred Seven (107) North, of Range Seven (7), West of the Fifth
Principal Meridian, Winona County, Minnesota, described as follows:

 

Commencing at the Southeast corner of said SE
1⁄4 of the SW 1⁄4, thence on an assumed bearing of North along the East line of
said SE 1⁄4 of the SW 1⁄4, a distance of 1.20 feet to the Northerly right of way
line of the Soo Line Railroad Company; thence North 61 degrees 57 minutes 00
seconds West along said Northerly right of way line, a distance of 336.75 feet
to a point on said right of way line a distant 134.60 feet Southeasterly of the
most Southerly corner of Lot 1, Block 2, record plat of Goodview Industrial
Park, Winona County, Minnesota, and the point of beginning of the land to be
described; thence continue North 61 degrees 57 minutes 00 seconds West, along
said right of way line, 134.60 feet to said most Southerly corner of Lot 1;
thence North 27 degrees 55 minutes East, along the Southeasterly line of said
Lot 1, a distance of 240.00 feet to the most Easterly corner of said Lot 1;
thence South 61 degrees 57 minutes 00 seconds East, along the Southwesterly
line of Lot 3, said Block 2, a distance of 134.60 feet to the most Southerly
corner of said Lot 3; thence South 27 degrees 55 minutes West, 240.00 feet to
the point of beginning.

 

[The description above includes the metal
storage building.  The following is the
description of the EMD Central (formerly DCM) property.]

 

Lot Five (5), Block One (1),
Goodview Industrial Park, being located upon and forming a part of the
Southeast Quarter of the Southwest Quarter (SE 1⁄4 of SW 1⁄4) of Section Seventeen
(17), Township One Hundred Seven (107) North, of Range Seven (7), West of the
Fifth Principal Meridian, Winona County, Minnesota.

 

That part of Lot Four (4),
Block One (1), said Goodview Industrial Park, lying southwesterly of the
following described line and its extensions:

 

Commencing at the most
northerly corner of said Lot 4; thence on an assumed bearing of South 32
degrees 35 minutes West, along the north-westerly line of said Lot 4, a
distance of 338.04 feet to the point of beginning of the line to be described;
thence south 63 degrees 09 minutes 38 seconds East, 199.99 feet to the
southeasterly line of said Lot 4, and said herein described line there
terminating.

 

 

PERMITTED
ENCUMBRANCES

 

Exceptions listed and described
in Title Insurance Policies #2745 C-1 and #2745 C-2, dated July 30, 1996,
issued by Chicago Title Insurance Company.

See attached.

 

 

EXHIBIT
B

 

Contracts

 

None.

 

 

EXHIBIT
C

 

Well
DisclosureExhibit
10.44

 

General Maritime Corporation

Restricted Stock Grant Agreement

 

THIS AGREEMENT, made as
of the 26th day of November 2002, between GENERAL MARITIME CORPORATION (the “Company”)
and Peter Georgiopoulos (the “Participant”).

 

WHEREAS, the Company has
adopted and maintains the General Maritime Corporation 2001 Stock Incentive
Plan (the “Plan”) to provide certain key persons, on whose initiative and
efforts the successful conduct of the business of the Company depends, and who
are responsible for the management, growth and protection of the business of
the Company, with incentives to: (a) enter into and remain in the service of
the Company, a Company subsidiary or a Company joint venture, (b) acquire a
proprietary interest in the success of the Company, (c) maximize their
performance and (d) enhance the long-term performance of the Company (whether
directly or indirectly through enhancing the long-term performance of a Company
subsidiary or a Company joint venture);

 

WHEREAS, the Plan
provides that the Compensation Committee (the “Committee”) of the Board of
Directors (or the Board of Directors if it so elects) shall administer the Plan
and determine the key persons to whom awards shall be granted and the amount
and type of such awards; and

 

WHEREAS, the Committee
has determined that the purposes of the Plan would be furthered by granting the
Participant an award under the Plan as set forth in this Agreement;

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants hereinafter set forth,
the parties hereto hereby agree as follows:

 

1.                                       Grant
of Restricted Stock.  Pursuant to, and subject to, the terms and
conditions set forth herein and in the Plan, the Committee hereby grants to the
Participant 500,000 restricted shares (the “Restricted Stock”) of common stock
of the Company, par value $0.01 per share (“Common Stock”).

 

2.                                       Grant
Date.  The Grant Date of the Restricted Stock is November 26,
2002.

 

3.                                       Incorporation
of Plan.  All terms, conditions and restrictions of the Plan are
incorporated herein and made part hereof as if stated herein.  If
there is any conflict between the terms and conditions of the Plan and this
Agreement, the terms and conditions of the Plan, as interpreted by the
Committee, shall govern.  Except as otherwise provided herein, all
capitalized terms used herein shall have the meaning given to such terms in the
Plan.

 

4.                                       Vesting.  Subject to the further provision of this
Agreement, the Restricted Stock shall vest on the earlier to occur of (the “Vesting
Date”):

 

(a)                                  November
26, 2009, the seventh anniversary of the Grant Date, and

 

(b)                                 the
occurrence of an event that causes a Change in Control, as defined in Section
3.8(a) of the Plan on the date hereof.

 

5.                                       Restrictions
on Transferability.  Until a share of
Restricted Stock vests, the Participant shall not transfer the Participant’s
rights to such share of Restricted Stock or to any rights related thereto.  Any attempt to transfer unvested shares of
Restricted Stock or any rights related thereto, whether by transfer, pledge,
hypothecation or otherwise and whether voluntary or involuntary, by operation
of law or otherwise, shall not vest the transferee with any interest or right
in or with respect to such shares of Restricted Stock or such related rights.

 

 

6.                                       Termination
of Employment.

 

(a)                                  For
Cause/Without Good Reason.  In the
event that the Participant’s employment with the Company is terminated by the
Company for Cause or by the Participant without Good Reason prior to the
Vesting Date, all shares of Restricted Stock, together with any property in
respect of such shares held by the custodian pursuant to Section 9 hereof,
shall be forfeited as of the date of such termination of employment and the
Participant promptly shall return to the Company any certificates evidencing
such shares.

 

(b)                                 Without
Cause/For Good Reason.  In the event
that the Participant’s employment with the Company is terminated by the Company
without Cause or by the Participant with Good Reason prior to the Vesting Date,
a portion of the Restricted Stock shall become vested immediately prior to such
termination of employment and all other shares of Restricted Stock, which have
not become vested, together with any property in respect of such unvested
shares held by the custodian pursuant to Section 9 hereof, shall be forfeited
as of the date of such termination of employment and the Participant promptly
shall return to the Company any certificates evidencing such unvested
shares.  The number of shares to become
vested immediately prior to such termination of employment shall be equal to
500,000 multiplied by a fraction, the denominator of which is 84 and the
numerator of which is the number of completed months between the Grant Date and
the effective date of such termination of employment.

 

(c)                                  Termination
for Death or Disability.  In the
event that the Participant’s employment with the Company is terminated for
reason of the Participant’s death or Disability, all shares of Restricted Stock
shall become vested immediately prior to such termination of employment.

 

(d)                                 Definitions
of Certain Terms.  The terms “Cause”
and “Disability” shall have the meaning set forth in the most recent employment
agreement between the Participant and the Company which defines such term as of
the date of determination.  The term “Good
Reason” shall mean (i) the definition set forth in the most recent employment
agreement between the Participant and the Company which defines such term as of
the date of determination, (ii) any lowering of the Participant’s base salary
and (iii) any other substantive adverse change to the terms of Participant’s
employment with the Company or its affiliates, provided that in the case of
(ii) and (iii) above the Participant gives the Company written notice of such
circumstance and 30 days in which to cure the circumstance constituting Good
Reason.

 

7.                                       Issuance
of Certificates.

 

(a)                                  Reasonably
promptly after the Grant Date, the Company shall issue and deliver to the
Participant stock certificates, registered in the name of the Participant,
evidencing the shares of Restricted Stock. 
Each such certificate may bear the following legend:

 

“THE SALE, TRANSFER, ASSIGNMENT, PLEDGE, HYPOTHECATION
ENCUMBRANCE OR OTHER DISPOSAL OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS OF THE GENERAL MARITIME CORPORATION 2001 STOCK
INCENTIVE PLAN AND A RESTRICTED STOCK GRANT AGREEMENT BETWEEN GENERAL MARITIME
CORPORATION AND THE HOLDER OF RECORD OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE.  NO TRANSFER OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE IN CONTRAVENTION OF SUCH PLAN AND
RESTRICTED STOCK GRANT AGREEMENT SHALL BE VALID OR EFFECTIVE.  COPIES OF SUCH AGREEMENT MAY BE OBTAINED BY
WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THE CERTIFICATE TO THE
SECRETARY OF GENERAL MARITIME CORPORATION.”

 

Such legend shall not be removed from such
certificates until such shares of Restricted Stock vest.

 

(b)                                 Reasonably
promptly after any such shares of Restricted Stock vest pursuant to Section 4
hereof, in exchange for the surrender to the Company of the certificates
evidencing such shares of Restricted Stock, delivered to the Participant under
Section 7(a) hereof, the Company shall issue and deliver to the Participant (or
the Participant’s legal representative, beneficiary or heir) certificates evidencing
such shares of Restricted Stock, free of 

 

2

 

the legend provided in
Section 7(a) hereof, together with any property in respect of such shares held
by the custodian pursuant to Section 9 hereof.

 

(c)                                  The
Company may require as a condition of the delivery of stock certificates
pursuant to Section 7(b) hereof that the Participant remit to the Company an
amount sufficient in the opinion of the Company to satisfy any federal, state
and other governmental tax withholding requirements related to the vesting of
the shares represented by such certificate. 
To the extent permitted by applicable law, the Participant may satisfy
such obligation by delivering shares of
Common Stock or by directing the Company to withhold from delivery
shares of Common Stock, in either case
valued at their Fair Market Value on the Vesting Date with fractional shares
being settled in cash.

 

(d)                                 The
Participant shall not be deemed for any purpose to be, or have rights as, a
shareholder of the Company by virtue of the grant of Restricted Stock, except
to the extent a stock certificate is issued therefor pursuant to Section 7(a)
hereof, and then only from the date such certificate is issued.  Upon the issuance of a stock certificate, the
Participant shall have the rights of a shareholder with respect to the
Restricted Stock, including the right to vote the shares, subject to the
restrictions on transferability, the forfeiture provisions and the requirement
that dividends be held in escrow until the shares vest, as set forth in this
Agreement.

 

8.                                       Securities
Matters.  The Company shall be under
no obligation to effect the registration pursuant to the Securities Act of
1933, as amended (the “1933 Act”) of any interests in the Plan or any shares of
Common Stock to be issued thereunder or to effect similar compliance under any
state laws.  The Company shall not be obligated to cause to be issued
or delivered any certificates evidencing shares of Common Stock pursuant hereto
unless and until the Company is advised by its counsel that the issuance and
delivery of such certificates is in compliance with all applicable laws,
regulations of governmental authority and the requirements of any securities
exchange on which shares of Common Stock are traded.  The Committee
may require, as a condition of the issuance and delivery of certificates
evidencing shares of Common Stock pursuant to the terms hereof, that the
recipient of such shares make such covenants, agreements and representations,
and that such certificates bear such legends, as the Committee, in its sole
discretion, deems necessary or desirable.  The Participant
specifically understands and agrees that the shares of Common Stock, if and
when issued, may be “restricted securities,” as that term is defined in Rule
144 under the 1933 Act and, accordingly, the Participant may be required to
hold the shares indefinitely unless they are registered under such Act or an
exemption from such registration is available.

 

9.                                       Dividends,
etc.  Unless the Committee otherwise
determines, any property, including cash dividends (but not including
securities), received by a Participant with respect to a share of Restricted
Stock as a result of any dividend, recapitalization, merger, consolidation,
combination, exchange of shares or otherwise and for which the Grant Date
occurs prior to such event but which has not vested as of the date of such
event, will not vest until such share of Restricted Stock vests, and shall be
promptly deposited with the Company or a custodian designated by the
Company.  The Company shall or shall
cause such custodian to issue to the Participant a receipt evidencing the
property held by it in respect of the Restricted Stock.

 

10.                                 Delays
or Omissions.  No delay or omission to exercise any right, power
or remedy accruing to any party hereto upon any breach or default of any party
under this Agreement, shall impair any such right, power or remedy of such
party, nor shall it be construed to be a waiver of any such breach or default,
or an acquiescence therein, or of or in any similar breach or default
thereafter occurring, nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring.  Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party or any provisions or
conditions of this Agreement, must be in a writing signed by such party and
shall be effective only to the extent specifically set forth in such writing.

 

11.                                 Right
of Discharge Preserved.  Nothing in
this Agreement shall confer upon the Participant the right to continue in the
employ or other service of the Company, or affect any right which the Company
may have to terminate such employment or service.

 

12.                                 Integration.  This
Agreement contains the entire understanding of the parties with respect to its
subject matter.  There are no restrictions, agreements, promises,
representations, warranties, covenants or 

 

3

 

undertakings with respect to the subject matter hereof
other than those expressly set forth herein.  This Agreement,
including, without limitation, the Plan, supersedes all prior agreements and
understandings between the parties with respect to its subject matter.

 

13.                                 Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same instrument.

 

14.                                 Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New York, without regard
to the provisions governing conflict of laws.

 

15.                                 Obligation
to Notify.  If the Participant makes
the election permitted under section 83(b) of the Internal Revenue Code of
1986, as amended (that is, an election to include in gross income in the year
of transfer the amounts specified in Section 83(b)), the Participant shall
notify the Company of such election within 10 days of filing notice of the
election with the Internal Revenue Service and shall within the same 10-day
period remit to the Company an amount sufficient in the opinion of the Company
to satisfy any federal, state and other governmental tax withholding
requirements related to such inclusion in Participant’s income. The Participant
should consult with his or her tax advisor to determine the tax consequences of
acquiring the Restricted Stock and the advantages and disadvantages of filing the
Section 83(b) election.  The Participant
acknowledges that it is his or her sole responsibility, and not the Company’s,
to file a timely election under Section 83(b), even if the Participant requests
the Company or its representatives to make this filing on his or her behalf.

 

16.                                 Reimbursement
for Excise Tax.  In the event that
the Participant incurs any Excise Tax on any payments or benefits under this
Agreement as a result of a Change of Control (or any other change described in
Section 280G(b)(2) of the Code), the Company shall reimburse the Participant
the amount of such Excise Tax incurred, but without duplicating any other
reimbursement payment available to the Participant in connection with such tax
(whether pursuant to the Participant’s employment agreement or otherwise) and
without any “gross up” pursuant to this Agreement for taxes owed by Participant
for any reimbursement under this paragraph. 
Such reimbursement shall be subject to applicable withholding
requirements and shall be paid upon the imposition upon the Participant of any
Excise Tax.  “Excise Tax” means the tax
imposed by Section 4999 of the Code and any successor tax.  For purposes of determining whether any
payment or benefit is subject to the Excise Tax and the amount of such Excise
Tax, (x) the total amount of payments and benefits received by the Participant
as a result of such Change in Control (or such other change) shall be treated
as “parachute payments” within the meaning of section 280G(b)(2) of the Code,
and all “excess parachute payments” within the meaning of section 280G(b)(1) of
the Code shall be treated as subject to the Excise Tax, except to the extent
that, in the opinion of independent counsel selected by the Company and
reasonably acceptable to the Participant (“Independent Counsel”), a payment or
benefit hereunder (in whole or in part) does not constitute a “parachute
payment” within the meaning of section 280G(b)(2) of the Code and the Treasury
Regulations (including proposed Treasury Regulations) under Section 280G of the
Code (the “Regulations”), or such “excess parachute payments” (in whole or in
part) are not subject to the Excise Tax; (y) the amount of the payments and
benefits hereunder that shall be treated as subject to the Excise Tax shall be
equal to the lesser of (A) the total amount of such payments and benefits or
(B) the amount of “excess parachute payments” within the meaning of section
280G(b)(1) of the Code (after applying clause (x) hereof); and (z) the value of
any noncash benefits or any deferred payment or benefit shall be determined by
Independent Counsel in accordance with the principles of sections 280G(d)(3)
and (4) of the Code.  If it is
established pursuant to a final determination of a court or an Internal Revenue
Service proceeding or the opinion of Independent Counsel that the Excise Tax
exceeds the amount previously taken into account hereunder (including by reason
of any payment the existence or amount of which cannot be determined at the
time of the initial payment hereunder), the Company shall make an additional
payment in the amount of such excess and any interest and penalties in respect
of such excess within thirty (30) days of the Company’s receipt of notice of
such final determination or opinion.  In
the event that the Internal Revenue Service makes any claim, gives notice of
any potential claim or institutes a proceeding against the Participant
asserting that any Excise Tax or additional Excise Tax is due in respect of the
payments or benefits hereunder, the Participant shall promptly give the Company
notice of any such claim, potential claim or proceeding.  The Participant will cooperate with the
Company in connection with all discussions, negotiations, defenses, actions and
proceedings solely to the extent relating to any Excise Tax payable in respect
of payments or benefits hereunder, to the extent reasonably requested by the
Company.  All fees and expenses of
Independent Counsel shall be borne by the Company.

 

4

 

17.                                 Participant
Acknowledgment.  The Participant hereby acknowledges receipt of a
copy of the Plan.  The Participant hereby acknowledges that all
decisions, determinations and interpretations of the Committee in respect of
the Plan, this Agreement and the Restricted Stock shall be final and
conclusive.

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be duly executed by its duly authorized
officer, and the Participant has hereunto signed this Agreement on his own
behalf, thereby representing that he has carefully read and understands this
Agreement and the Plan as of the day and year first written above.

 

 

	
   

  	
  GENERAL MARITIME
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    By:

  	
    /s/ John C.
  Georgiopoulos

  	
   

  
	
   

  	
    Name:

  	
    John C.
  Georgiopoulos

  	
   

  
	
   

  	
    Title:

  	
    Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
    /s/ Peter
  Georgiopoulos

  	
   

  
	
   

  	
    Peter
  Georgiopoulos

  	
   

  

 

5

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