Document:

Exhibit 10.1

 

[Multiple Properties - FHC]

 

PURCHASE
AND SALE AGREEMENT

 

by and among

 

HRPT
PROPERTIES TRUST, HUB PROPERTIES TRUST 

AND MOB REALTY TRUST,

 

as Sellers,

 

and

 

SENIOR
HOUSING PROPERTIES TRUST,

 

as Purchaser

 

 

May 5, 2008

 

 

[Multiple Properties - FHC]

 

TABLE
OF CONTENTS

 

	
  SECTION 1. 

  	
  DEFINITIONS

  	
  1

  
	
  1.1

  	
  “Agreement”

  	
  1

  
	
  1.2

  	
  “Allocable Purchase Price”

  	
  1

  
	
  1.3

  	
  “Business Day”

  	
  2

  
	
  1.4

  	
  “Closing”

  	
  2

  
	
  1.5

  	
  “Closing Date”

  	
  2

  
	
  1.6

  	
  “Existing Survey”

  	
  2

  
	
  1.7

  	
  “Existing Title Policy”

  	
  2

  
	
  1.8

  	
  “Ground Lease”

  	
  2

  
	
  1.9

  	
  “HRPT”

  	
  2

  
	
  1.10

  	
  “Hub”

  	
  2

  
	
  1.11

  	
  “Improvements”

  	
  2

  
	
  1.12

  	
  “Land”

  	
  3

  
	
  1.13

  	
  “Leases”

  	
  3

  
	
  1.14

  	
  “MOB”

  	
  3

  
	
  1.15

  	
  “Other Property”

  	
  3

  
	
  1.16

  	
  “Permitted Exceptions”

  	
  3

  
	
  1.17

  	
  “Property”

  	
  3

  
	
  1.18

  	
  “Properties”

  	
  3

  
	
  1.19

  	
  “Purchase Price”

  	
  4

  
	
  1.20

  	
  “Purchaser”

  	
  4

  
	
  1.21

  	
  “Rent Roll”

  	
  4

  
	
  1.22

  	
  “Seller” and “Sellers”

  	
  4

  
	
  1.23

  	
  “Title Company”

  	
  4

  
	
  1.24

  	
  “Update” and “Updates”

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 2. 

  	
  PURCHASE AND SALE; CLOSING.

  	
  4

  
	
  2.1

  	
  Purchase and Sale.

  	
  4

  
	
  2.2

  	
  Closing.

  	
  4

  
	
  2.3

  	
  Purchase Price.

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 3. 

  	
  TITLE, DILIGENCE MATERIALS, ETC.

  	
  5

  
	
  3.1

  	
  Title.

  	
  5

  
	
  3.2

  	
  No Other Diligence.

  	
  6

  
	
   

  	
   

  	
   

  
	
  SECTION 4. 

  	
  CONDITIONS TO THE PURCHASER’S OBLIGATION TO
  CLOSE.

  	
  6

  
	
  4.1

  	
  Closing Documents.

  	
  7

  
	
  4.2

  	
  Ground Lease Consent and Estoppel.

  	
  8

  
	
  4.3

  	
  Title Policy.

  	
  8

  
	
  4.4

  	
  Environmental Reliance Letters.

  	
  8

  
	
  4.5

  	
  Condition of Property.

  	
  8

  
	
  4.6

  	
  Other Conditions.

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 5. 

  	
  CONDITIONS TO SELLERS’ OBLIGATION TO CLOSE.

  	
  9

  

 

i

 

	
  5.1

  	
  Purchase Price.

  	
  9

  
	
  5.2

  	
  Closing Documents.

  	
  9

  
	
  5.3

  	
  Ground Lease Consent and Estoppel.

  	
  9

  
	
  5.4

  	
  Other Conditions.

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 6. 

  	
  REPRESENTATIONS AND WARRANTIES OF SELLERS.

  	
  9

  
	
  6.1

  	
  Status and Authority of the Seller, Etc.

  	
  9

  
	
  6.2

  	
  Action of the Seller, Etc.

  	
  10

  
	
  6.3

  	
  No Violations of Agreements.

  	
  10

  
	
  6.4

  	
  Litigation.

  	
  10

  
	
  6.5

  	
  Existing Leases, Etc.

  	
  10

  
	
  6.6

  	
  Agreements, Etc.

  	
  11

  
	
  6.7

  	
  Not a Foreign Person.

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 7. 

  	
  REPRESENTATIONS AND WARRANTIES OF PURCHASER.

  	
  13

  
	
  7.1

  	
  Status and Authority of the Purchaser.

  	
  13

  
	
  7.2

  	
  Action of the Purchaser.

  	
  13

  
	
  7.3

  	
  No Violations of Agreements.

  	
  13

  
	
  7.4

  	
  Litigation.

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 8. 

  	
  COVENANTS OF THE SELLERS.

  	
  14

  
	
  8.1

  	
  Approval of Agreements.

  	
  14

  
	
  8.2

  	
  Operation of Property.

  	
  14

  
	
  8.3

  	
  Compliance with Laws, Etc.

  	
  14

  
	
  8.4

  	
  Compliance with Agreements.

  	
  14

  
	
  8.5

  	
  Notice of Material Changes or Untrue Representations.

  	
  14

  
	
  8.6

  	
  Insurance.

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 9. 

  	
  APPORTIONMENTS.

  	
  15

  
	
  9.1

  	
  Real Property Apportionments.

  	
  15

  
	
  9.2

  	
  Closing Costs.

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 10. 

  	
  DAMAGE TO OR CONDEMNATION OF PROPERTY.

  	
  18

  
	
  10.1

  	
  Casualty.

  	
  18

  
	
  10.2

  	
  Condemnation.

  	
  18

  
	
  10.3

  	
  Survival.

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 11. 

  	
  DEFAULT.

  	
  19

  
	
  11.1

  	
  Default by the Sellers.

  	
  19

  
	
  11.2

  	
  Default by the Purchaser.

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 12. 

  	
  MISCELLANEOUS.

  	
  20

  
	
  12.1

  	
  Allocation of Liability.

  	
  20

  
	
  12.2

  	
  Brokers.

  	
  20

  
	
  12.3

  	
  Publicity.

  	
  20

  
	
  12.4

  	
  Notices.

  	
  20

  

 

ii

 

	
  12.5

  	
  Waivers, Etc.

  	
  22

  
	
  12.6

  	
  Assignment; Successors and Assigns.

  	
  22

  
	
  12.7

  	
  Severability.

  	
  23

  
	
  12.8

  	
  Counterparts, Etc.

  	
  23

  
	
  12.9

  	
  Performance on Business Days.

  	
  23

  
	
  12.10

  	
  Attorneys’ Fees.

  	
  23

  
	
  12.11

  	
  Section and Other Headings.

  	
  23

  
	
  12.12

  	
  Time of Essence.

  	
  24

  
	
  12.13

  	
  Governing Law.

  	
  24

  
	
  12.14

  	
  Arbitration.

  	
  24

  
	
  12.15

  	
  Like Kind Exchange.

  	
  25

  
	
  12.16

  	
  Recording.

  	
  25

  
	
  12.17

  	
  Joint and Several Liability.

  	
  25

  
	
  12.18

  	
  Non-liability of Trustees.

  	
  25

  
	
  12.19

  	
  Non-liability of Trustees of Purchaser.

  	
  26

  
	
  12.20

  	
  Waiver and Further Assurances.

  	
  26

  

 

iii

 

[Multiple Properties - FHC]

 

PURCHASE
AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT is made as
of May 5, 2008, by and among HRPT
PROPERTIES TRUST,  a
Maryland real estate investment trust (“HRPT”), HUB PROPERTIES TRUST, a Maryland real
estate investment trust (“Hub”), and MOB
REALTY TRUST, a Massachusetts nominee trust (“MOB”, and
together with HRPT and Hub, each a “Seller” and collectively, “Sellers”),
and SENIOR HOUSING PROPERTIES TRUST,
a Maryland real estate investment trust (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Sellers are the owners of the
Properties (this and other capitalized terms used and not otherwise defined
herein shall have the meanings given such terms in Section 1); and

 

WHEREAS, the Sellers
wish to sell to the Purchaser, and the Purchaser desires to purchase from the
Sellers, the Properties, subject to and upon the terms and conditions
hereinafter set forth;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and valuable
consideration, the mutual receipt and legal sufficiency of which are hereby
acknowledged, the Sellers and the Purchaser hereby agree as follows:

 

SECTION 1.                          DEFINITIONS.

 

Capitalized terms used in this Agreement shall have the meanings set
forth below or in the section of this Agreement referred to below:

 

1.1                               “Agreement”  shall mean this Purchase and Sale Agreement,
together with any exhibits and schedules attached hereto, as it and they may be
amended from time to time as herein provided.

 

1.2                               “Allocable Purchase Price”  shall mean, with respect to each Property,
the amount set forth in Schedule A opposite the name of such Property,
it being understood and agreed that the aggregate amount of the Allocable
Purchase Prices of the Properties shall be One Hundred Twelve Million Nine
Hundred Ten Thousand Eight Hundred and Twenty-Four Dollars ($112,910,824).

 

1

 

1.3                               “Business Day”  shall mean any day other than a Saturday,
Sunday or any other day on which banking institutions in The Commonwealth of
Massachusetts are authorized by law or executive action to close.

 

1.4                               “Closing”  shall have the meaning given such term in Section 2.2.

 

1.5                               “Closing Date”  shall have the meaning given such term in Section 2.2.

 

1.6                               “Existing Survey”  shall mean,
with respect to each Property, the existing ALTA survey of such Property.

 

1.7                               “Existing Title Policy”  shall mean,
with respect to each Property, the existing title insurance policy for such
Property.

 

1.8                               “Ground Lease”  shall mean
that certain Ground Lease, dated as of November 21, 1994, by and between
Hubbard Health Systems, Inc., as landlord, and Fallon Clinic, Inc.,
as tenant, as modified by that certain Landlord Consent, dated as of September 18,
1996, from Hubbard Health Systems, Inc., as landlord, to Lakeside Realty
Company, that certain Assignment of Lease and Consent, dated as of September 30,
1996, by and among Hubbard Health Systems, Inc., as landlord, Fallon
Clinic, Inc., as assignor, and Lakeside Realty Company, as assignee, that
certain Ground Lease Consent and Estoppel Certificate, dated as of May 9,
1997, from Hubbard Health Systems, Inc., as landlord, to MOB, and that
certain Assignment of Ground Lease, dated as of May 14, 1997, by and
between Lakeside Realty Company, as assignor, and MOB, as assignee, with
respect to the Property located at 340 Thompson Road, Webster, Massachusetts.

 

1.9                               “HRPT” 
shall have the meaning given such term in the preambles to this
Agreement, together with any permitted successors and assigns.

 

1.10                         “Hub” 
shall have the meaning given such term in the preambles to this
Agreement, together with any permitted successors and assigns.

 

1.11                         “Improvements”  shall mean, with
respect to each Property, the applicable Seller’s entire right, title and
interest in and to the existing office buildings, fixtures and other structures
and improvements situated on, or affixed to, the Land.

 

2

 

1.12                         “Land” 
shall mean, with respect to each Property, the applicable Seller’s
entire right, title and interest in and to (a) the parcel(s) of land
associated with such Property, which is more particularly described in Schedule
B-1 through B-21 hereto, together with (b) all easements, rights of
way, privileges, licenses and appurtenances which such Seller may own with
respect thereto.

 

1.13                         “Leases” 
shall mean the leases identified in the Rent Roll and any other leases
hereafter entered into in accordance with the terms of this Agreement.

 

1.14                         “MOB” 
shall have the meaning given such term in the preambles to this
Agreement, together with any permitted successors and assigns.

 

1.15                         “Other Property”  shall
mean, with respect to each Property, the applicable Seller’s entire right,
title and interest in and to (a) all fixtures, machinery, systems,
equipment and items of personal property owned by such Seller and attached or
appurtenant to, located on and used in connection with the ownership, use,
operation or maintenance of the Land or Improvements relating to such Property,
if any, and (b) all intangible property owned by such Seller arising from
or used in connection with the ownership, use, operation or maintenance of the
Land or Improvements relating to such Property, if any.

 

1.16                         “Permitted Exceptions”  shall mean, with respect to each Property,
collectively, (a) liens for taxes, assessments and governmental charges
not yet due and payable or due and payable but not yet delinquent; (b) the
Leases relating to such Property; (c) the exceptions to title set forth in
the Existing Title Policy for such Property; (d) all matters shown on the
Existing Survey for such Property, and (e) such other nonmonetary
encumbrances with respect to such Property as may be shown on the Update for
such Property which are not objected to by the Purchaser (or which are objected
to, and subsequently waived, by the Purchaser) in accordance with Section 3.1.

 

1.17                         “Property”  shall mean,
collectively, all of the Land, the Improvements and the Other Property relating
to a single property identified on Schedule A.

 

1.18                         “Properties”  shall mean, collectively, all of the Land,
the Improvements and the Other Property relating to the properties identified
on Schedule A, the legal descriptions of which are set forth in Schedules
B-1 through B-21.

 

3

 

1.19                         “Purchase Price”  shall mean One Hundred Twelve Million Nine
Hundred Ten Thousand Eight Hundred and Twenty-Four Dollars ($112,910,824)
(which is the sum of the Allocable Purchase Prices).

 

1.20                         “Purchaser”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.21                         “Rent Roll”  shall mean Schedule C to this
Agreement.

 

1.22                         “Seller” and “Sellers”  shall have the meanings given such terms in
the preambles to this Agreement, together with any permitted successors and
assigns.

 

1.23                         “Title Company”  shall mean Lawyers Title Insurance
Corporation.

 

1.24                         “Update”  and “Updates”  shall have
the meanings given such terms in Section 3.1.

 

SECTION 2.                          PURCHASE AND SALE; CLOSING.

 

2.1                               Purchase and Sale.  In consideration of the payment of the
Purchase Price by the Purchaser to the Sellers and for other good and valuable
consideration, the Sellers hereby agree to sell to the Purchaser, and the Purchaser
hereby agrees to purchase from the Sellers, the Properties for the Purchase
Price, subject to and in accordance with the terms and conditions of this
Agreement.

 

2.2                               Closing.  The purchase and sale of the Properties shall
be consummated at a closing (the “Closing”) to be held at the offices of
Sullivan & Worcester LLP, One Post Office Square, Boston,
Massachusetts, or at such other location as the Seller and the Purchaser may
agree, at 10:00 a.m., local time, on August 8, 2008, as the same may
be accelerated pursuant to this Section 2.2 (the “Closing Date”).

 

Notwithstanding the foregoing, either the
Purchaser or the Sellers may accelerate the Closing Date by giving not less
than ten (10) Business Days prior written notice (an “Acceleration
Notice”) to the other, in which event the Closing Date shall be the date
set forth in such Acceleration Notice unless the party receiving the
Acceleration Notice gives written notice objecting to the accelerated date set
forth in the Acceleration Notice (a “Rejection Notice”) to the other
within five (5) Business Days after its receipt of the Acceleration
Notice, in which event, 

 

4

 

the Closing Date shall not be accelerated but shall occur as set forth
in the preceding paragraph; provided, however, that the Sellers
shall have the right to give a Rejection Notice only if the acceleration of the
Closing Date will adversely effect the Sellers’ ability to conclude a like kind
exchange pursuant to Section 12.15, and the Purchaser shall have
the right to give a Rejection Notice only if the Purchaser determines, in its
reasonable discretion, that the Purchaser does not, or will not, have adequate
funds to close on the accelerated Closing Date.

 

2.3                               Purchase Price.

 

(a)                                At Closing,
the Purchaser shall pay the Purchase Price to the Sellers, subject to the
following adjustments:

 

(i)                                   There shall
be deducted from the Purchase Price the Allocable Purchase Price with respect
to any Property as to which this Agreement is terminated pursuant to the terms
hereof.

 

(ii)                                There shall
be added to, or deducted from, the Purchase Price such amounts as may be
required by Article 9.

 

(b)                               The Purchase
Price, as adjusted as provided herein, shall be payable by wire transfer of
immediately available funds on the Closing Date to an account or accounts to be
designated by the Sellers.

 

SECTION 3.                                              TITLE, DILIGENCE MATERIALS, ETC.

 

3.1                               Title. 
Prior to the execution of this Agreement, the Sellers have delivered the
Existing Title Policy and the Existing Survey for each Property to the
Purchaser.

 

Within ten (10) days after
the execution hereof, the Purchaser shall order an update to the Existing Title
Policy for each Property (each an “Update”, and collectively, the “Updates”)
from the Title Company.  The Purchaser
shall deliver to the Sellers a copy of the Updates promptly upon receipt
thereof.  Promptly after receipt of the
Updates, but, in any event, prior to the Closing Date, the Purchaser shall give
the Sellers written notice of any title exceptions (other than Permitted
Exceptions) set forth on any Update as to which the Purchaser objects.  The Sellers shall have the right, but not the
obligation, to attempt to remove, satisfy or otherwise cure any exceptions to
title to which the Purchaser so objects. 
If, for any reason, in their sole discretion, the Sellers are unable 

 

5

 

or unwilling to take such actions as may be required to cause such
exceptions to be removed from such Update, the Sellers shall give the Purchaser
notice thereof; it being understood and agreed that the failure of the Sellers
to give prompt notice of objection shall be deemed an election by the Sellers
not to remedy such matters.  If the Sellers
shall be unable or unwilling to remove any title defects to which the Purchaser
has so objected, the Purchaser may elect (i) to terminate this Agreement
only with respect to such Property or (ii) to consummate the transactions
contemplated hereby, notwithstanding such title defect, without any abatement
or reduction in the Purchase Price on account thereof (whereupon such objected
to exceptions or matters shall be deemed to be Permitted Exceptions).  The Purchaser shall make any such election by
written notice to the Sellers given on or prior to the fifth (5th)
Business Day after the Sellers’ notice of their unwillingness or inability to
cure (or deemed election not to cure) such defect and time shall be of the
essence with respect to the giving of such notice.  Failure of the Purchaser to give such notice
shall be deemed an election by the Purchaser to proceed in accordance with
clause (ii) above.

 

3.2                               No Other Diligence. 
The Purchaser
acknowledges that, except as provided in Section 3.1, (i) the
Purchaser has had the opportunity to fully investigate and inspect the physical
and environmental condition of the Properties, and to review and analyze all
title examinations, surveys, environmental assessment reports, building
evaluations, financial data and other investigations and materials pertaining
to the Properties which the Purchaser deems necessary to determine the
feasibility of the Properties and its decision to acquire the Properties, (ii) the
Purchaser shall not be conducting any further title examinations, surveys,
environmental assessments, building evaluations, financial analyses or other
investigations with respect to the Properties, and (iii) the Purchaser
shall not have any right to terminate this Agreement as a result of any title
examinations, surveys, environmental assessments, building valuations,
financial analyses or other investigations with respect to the Properties.

 

SECTION 4.                          CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE.

 

The obligation of the Purchaser to acquire the Properties shall be
subject to the satisfaction of the following conditions precedent on and as of
the Closing Date:

 

6

 

4.1                               Closing Documents. 
The Sellers shall have delivered, or cause to have been delivered, to
the Purchaser the following:

 

(a)                                (i) A
good and sufficient deed in the applicable form attached as Schedule D
hereto, with respect to each Property (other than the Property located at 340
Thompson Road, Webster, Massachusetts), in proper statutory form for recording,
duly executed and acknowledged by the applicable Seller, conveying title to
such Property, free from all liens and encumbrances other than the Permitted
Exceptions, or (ii) with respect to the Property located at 340 Thompson
Road, Webster, Massachusetts, an assignment by MOB and an assumption by the
Purchaser, in form and substance reasonably satisfactory to MOB and the
Purchaser, duly executed and acknowledged by MOB and the Purchaser, of all of
MOB’s right, title and interest in, to and under the Ground Lease, as
applicable;

 

(b)                               An
assignment by the applicable Seller and an assumption by the Purchaser, with
respect to each Property, in form and substance reasonably satisfactory to such
Seller and the Purchaser, duly executed and acknowledged by such Seller and the
Purchaser, of all of such Seller’s right, title and interest in, to and under
the Leases and all of such Seller’s right, title and interest, if any, in, to
and under all transferable licenses, contracts, permits and agreements
affecting such Property;

 

(c)                                A bill of
sale by the applicable Seller, with respect to each Property, without warranty
of any kind, in form and substance reasonably satisfactory to such Seller and
the Purchaser, with respect to any personal property owned by such Seller,
situated at such Property and used exclusively by such Seller in connection
with such Property (it being understood and agreed that no portion of the Purchase
Price is allocated to personal property);

 

(d)                               To the
extent the same are in any Seller’s possession, original, fully executed copies
of all material documents and agreements, plans and specifications and
contracts, licenses and permits pertaining to the Properties;

 

(e)                                To the
extent the same are in any Seller’s possession, duly executed original copies
of the Leases;

 

(f)                                  A closing
statement, with respect to each Property, in form and substance reasonably
satisfactory to the applicable Seller and the Purchaser, duly executed and
acknowledged by such Seller and the Purchaser, showing the Allocable Purchase
Price, 

 

7

 

apportionments and fees, and costs and
expenses paid in connection with the Closing; and

 

(g)                               Such other
conveyance documents, certificates, deeds and other instruments as the
Purchaser, the Sellers or the Title Company may reasonably require and as are
customary in like transactions in sales of property in similar transactions.

 

4.2                               Ground Lease Consent and Estoppel.  The Purchaser shall have
obtained a ground lease consent and estoppel certificate, in form and substance
reasonably satisfactory to the Purchaser, dated within thirty (30) days prior
to the Closing Date, with respect to the Ground Lease.

 

4.3                               Title Policy.  The Title
Company shall be prepared to issue, upon payment of the title premium at its
regular rates, a title policy in the amount of the Allocable Purchase Price for
each Property, insuring title to such Property is vested in the Purchaser or
its designee or assignee, subject only to the Permitted Exceptions, with such
endorsements as shall be reasonably required by the Purchaser.

 

4.4                               Environmental Reliance Letters.  The Purchaser shall have received a reliance letter with respect to each Property, authorizing the Purchaser
and its designees and assignees to rely on the most recent environmental
assessment report prepared for such Property, in form and substance reasonably
acceptable to the Purchaser.

 

4.5                               Condition of Property.  Each Property shall be in substantially
the same physical condition as on the date of this Agreement, ordinary wear and
tear and, subject to Section 10.1, casualty excepted.

 

4.6                               Other Conditions.

 

(a)                                All
representations and warranties of the Sellers herein shall be true, correct and
complete in all material respects on and as of the Closing Date and the Sellers
shall have performed in all material respects all covenants and obligations
required to be performed by the Sellers on or before the Closing Date.

 

(b)                               In the event
that the conditions set forth in this Section 4 have been satisfied
with respect to less than all of the Properties, Purchaser shall not be
relieved of any obligation hereunder with respect to those Properties which are
not subject to such unsatisfied conditions.

 

8

 

SECTION 5.                          CONDITIONS TO SELLERS’ OBLIGATION TO CLOSE.

 

The obligation of the Sellers to convey the Properties to the Purchaser
is subject to the satisfaction of the following conditions precedent on and as
of the Closing Date:

 

5.1                               Purchase Price.  The Purchaser shall deliver to the Sellers
the Purchase Price payable hereunder, subject to the adjustments set forth in Section 2.3,
together with any closing costs to be paid by the Purchaser under Section 9.2.

 

5.2                               Closing Documents. 
The Purchaser shall have delivered to the Sellers duly executed and
acknowledged counterparts of the documents described in Section 4.1,
where applicable.

 

5.3                               Ground Lease Consent and Estoppel.  The Purchaser shall have
obtained a ground lease consent and estoppel certificate, in form and substance
reasonably satisfactory to the Purchaser, dated within thirty (30) days prior
to the Closing Date, with respect to the Ground Lease.

 

5.4                               Other Conditions.

 

(a)                                All
representations and warranties of the Purchaser herein shall be true, correct
and complete in all material respects on and as of the Closing Date and the
Purchaser shall have performed in all material respects all covenants and
obligations required to be performed by the Purchaser on or before the Closing
Date.

 

(b)                               In the event
that the conditions set forth in this Section 5 have been satisfied
with respect to less than all of the Properties, Sellers shall not be relieved
of any obligation hereunder with respect to those Properties which are not
subject to such unsatisfied conditions.

 

SECTION 6.                          REPRESENTATIONS AND WARRANTIES OF SELLERS.

 

To induce the Purchaser to enter into this Agreement, the Sellers
represent and warrant to the Purchaser as follows:

 

6.1                               Status and Authority of the Seller, Etc.  Each Seller is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter documents
to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

9

 

6.2                               Action of the Seller, Etc.  Each Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon
the execution and delivery of any document to be delivered by any Seller on or
prior to the Closing Date, this Agreement and such document shall constitute
the valid and binding obligation and agreement of such Seller, enforceable
against such Seller in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws of general application affecting the rights and remedies of creditors.

 

6.3                               No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by any Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon any Property pursuant to the
terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness
or any other agreement or instrument by which such Seller is bound.

 

6.4                               Litigation. 
To the Sellers’ actual knowledge, no Seller has received written notice
that any investigation, action or proceeding is pending or threatened, which (i) questions
the validity of this Agreement or any action taken or to be taken pursuant
hereto, or (ii) involves condemnation or eminent domain proceedings
against any Property or any portion thereof.

 

6.5                               Existing Leases, Etc. 
Subject to Section 8.1, other than the Leases listed in the Rent Roll, no Seller has entered into
a contract or agreement with respect to the occupancy of any Property that will
be binding on the Purchaser after the Closing. 
To the Sellers’ actual knowledge: (a) the copies of the Leases
heretofore delivered by the Sellers to the Purchaser are true, correct and
complete copies thereof; and (b) the Leases have not been amended except
as evidenced by amendments similarly delivered and constitute the entire
agreement between the applicable Seller and the tenants thereunder.  Except as otherwise set forth in the
Rent Roll or the Leases: (i) to the Sellers’ actual knowledge, each of the
Leases is in full force and effect on the terms set forth therein; (ii) to
the Sellers’ actual knowledge, there are no uncured defaults or circumstances
which with the giving of notice, the passage of time or both would constitute a
default thereunder which would have a material adverse effect on the business
or operations of any Property; (iii) to the Sellers’ actual knowledge,
each of their 

 

10

 

tenants is legally required to pay all sums and perform all material
obligations set forth therein without any ongoing concessions, abatements,
offsets, defenses or other basis for relief or adjustment; (iv) to the
Sellers’ actual knowledge, none of their tenants has asserted in writing or has
any defense to, offsets or claims against, rent payable by it or the
performance of its other obligations under its Lease which would have a
material adverse effect on the on-going business or operations of any Property;
(v) no Seller has any outstanding obligation to provide any of its tenants
with an allowance to perform, or to perform at its own expense, any tenant
improvements; (vi) none of their tenants has prepaid any rent or other
charges relating to the post-Closing period; (vii) to the Sellers’ actual
knowledge, none of their tenants has filed a petition in bankruptcy or for the
approval of a plan of reorganization or management under the Federal Bankruptcy
Code or under any other similar state law, or made an admission in writing as
to the relief therein provided, or otherwise become the subject of any
proceeding under any federal or state bankruptcy or insolvency law, or has
admitted in writing its inability to pay its debts as they become due or made
an assignment for the benefit of creditors, or has petitioned for the
appointment of or has had appointed a receiver, trustee or custodian for any of
its property, in any case that would have a material adverse effect on the
business or operations of any Property; (viii) to the Sellers’ actual
knowledge, none of their tenants has requested in writing a modification of its
Lease, or a release of its obligations under its Lease in any material respect
or has given written notice terminating its Lease, or has been released of its
obligations thereunder in any material respect prior to the normal expiration
of the term thereof, in any case that would have a material adverse effect on
the on-going business or operations of any Property; (ix) to the Sellers’
actual knowledge, except as set forth in the Leases, no guarantor has been
released or discharged, voluntarily or involuntarily, or by operation of law,
from any obligation under or in connection with any of the Leases or any
transaction related thereto; and (x) all brokerage commissions currently
due and payable with respect to each of the Leases have been paid.  To the Sellers’ actual knowledge, the other
information set forth in the Rent Roll is true, correct and complete in all
material respects.

 

6.6                               Agreements, Etc. 
Other than the Leases, no Seller has entered into any contract or
agreement with respect to any Property which will be binding on the Purchaser
after the Closing other than contracts and agreements being assumed by the 

 

11

 

Purchaser or which are terminable upon thirty (30) days notice without
payment of premium or penalty.

 

6.7                               Not a Foreign Person.  No Seller is a “foreign person” within the
meaning of Section 1445 of the United States Revenue Code of 1986, as
amended, and the regulations promulgated thereunder.

 

The representations and warranties made in this Agreement by the
Sellers shall be continuing and shall be deemed remade by the Sellers as of the
Closing Date, with the same force and effect as if made on, and as of, such
date.  All representations and warranties
made in this Agreement by the Sellers shall survive the Closing for a period of
three hundred sixty (360) days, and upon expiration shall be of no further
force or effect except to the extent that with respect to any particular
alleged breach, the Purchaser gives the Sellers written notice prior to the
expiration of said three hundred sixty (360) day period of such alleged breach
with reasonable detail as to the nature of such breach.

 

Except as otherwise expressly provided in this Agreement or in any
documents to be delivered to the Purchaser at the Closing, the Sellers have not
made, and the Purchaser has not relied on, any information, promise,
representation or warranty, express or implied, regarding the Properties,
whether made by the Sellers, on the Sellers’ behalf or otherwise, including,
without limitation, the physical condition of the Properties, the financial
condition of the tenants under the Leases, title to or the boundaries of the
Properties, pest control matters, soil conditions, the presence, existence or
absence of hazardous wastes, toxic substances or other environmental matters,
compliance with building, health, safety, land use and zoning laws, regulations
and orders, structural and other engineering characteristics, traffic patterns,
market data, economic conditions or projections, and any other information
pertaining to the Properties or the market and physical environments in which
they are located.  The Purchaser
acknowledges that (i) the Purchaser has entered into this Agreement with
the intention of relying upon its own investigation or that of third parties
with respect to the physical, environmental, economic and legal condition of
the Properties and (ii) the Purchaser is not relying upon any statements,
representations or warranties of any kind, other than those specifically set
forth in this Agreement or in any document to be delivered to the Purchaser at
the Closing, made (or purported to be made) by the Sellers or anyone acting or
claiming to act on the Sellers’ behalf. 
The Purchaser has inspected the Properties and is fully familiar 

 

12

 

with the physical condition thereof and shall purchase the Properties
in its “as is”, “where is” and “with all faults” condition on the Closing
Date.  Notwithstanding anything to the
contrary contained herein, in the event that any party hereto has actual
knowledge of the default of any other party (a “Known Default”), but
nonetheless elects to consummate the transactions contemplated hereby and
proceeds to Closing, then the rights and remedies of such non-defaulting party
shall be waived with respect to such Known Default upon the Closing and the
defaulting party shall have no liability with respect thereto.

 

SECTION 7.                          REPRESENTATIONS AND WARRANTIES OF PURCHASER.

 

To induce the Sellers to enter into this Agreement, the Purchaser
represents and warrants to the Sellers as follows:

 

7.1                               Status and Authority of the Purchaser.  The Purchaser is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

7.2                               Action of the Purchaser. 
The Purchaser has taken all necessary action to authorize the execution,
delivery and performance of this Agreement, and upon the execution and delivery
of any document to be delivered by the Purchaser on or prior to the Closing
Date, this Agreement and such document shall constitute the valid and binding
obligation and agreement of the Purchaser, enforceable against the Purchaser in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

 

7.3                               No Violations of Agreements.  Neither the
execution, delivery or performance of this Agreement by the Purchaser, nor
compliance with the terms and provisions hereof, will result in any breach of
the terms, conditions or provisions of, or conflict with or constitute a
default under, or result in the creation of any lien, charge or encumbrance
upon any property or assets of the Purchaser pursuant to the terms of any
indenture, mortgage, deed of trust, note, evidence of indebtedness or any other
agreement or instrument by which the Purchaser is bound.

 

7.4                               Litigation.  The Purchaser has received no written notice
that any investigation, action or proceeding is pending 

 

13

 

or threatened which questions the validity of this Agreement or any
action taken or to be taken pursuant hereto.

 

The representations and warranties made in this Agreement by the
Purchaser shall be continuing and shall be deemed remade by the Purchaser as of
the Closing Date with the same force and effect as if made on, and as of, such
date.  All representations and warranties
made in this Agreement by the Purchaser shall survive the Closing for a period
of three hundred sixty (360) days, and upon expiration shall be of no further
force or effect except to the extent that with respect to any particular
alleged breach, any Seller gives the Purchaser written notice prior to the
expiration of said three hundred sixty (360) period of such alleged breach with
reasonable detail as to the nature of such breach.

 

SECTION 8.                          COVENANTS OF THE SELLERS.

 

The Sellers hereby covenant with the Purchaser between the date of this
Agreement and the Closing Date as follows:

 

8.1                               Approval of Agreements. 
Not to enter into, modify, amend or terminate any Lease or any other
material agreement with respect to any Property, which would encumber or be
binding upon such Property from and after the Closing Date, without in each
instance obtaining the prior written consent of the Purchaser.

 

8.2                               Operation of Property. 
To continue to operate each Property consistent with past practices.

 

8.3                               Compliance with Laws, Etc.  To comply in all material respects with (i) all laws, regulations and other requirements
from time to time applicable of every governmental body having jurisdiction of
the Properties, or the use or occupancy thereof, and (ii) all
material terms, covenants and conditions of all agreements affecting the
Properties.

 

8.4                               Compliance with Agreements.  To comply with each and every material term,
covenant and condition contained in the Leases and any other material document
or agreement affecting each Property and to monitor compliance thereunder
consistent with past practices.

 

8.5                               Notice of Material Changes or Untrue Representations.  Upon learning of any material change in any
condition with respect to any Property or of any event or circumstance which
makes any representation or warranty of the Sellers to the

 

14

 

Purchaser under this Agreement untrue or misleading, promptly to notify
the Purchaser thereof.

 

8.6                               Insurance. 
To maintain, or cause to be maintained, all existing property insurance
relating to each Property.

 

SECTION 9.                          APPORTIONMENTS.

 

9.1                               Real Property Apportionments.  (a)  The following items shall be
apportioned at the Closing as of the close of business on the day immediately
preceding the Closing Date:

 

(i)                                                      annual
rents, operating costs, taxes and other fixed charges payable under the Leases
and the Ground Lease;

 

(ii)                                                   percentage
rents and other unfixed charges payable under the Leases and the Ground Lease;

 

(iii)                                                fuel,
electric, water and other utility costs;

 

(iv)                                               municipal
assessments and governmental license and permit fees;

 

(v)                                                  Real estate
taxes and assessments other than special assessments, based on the rates and
assessed valuation applicable in the fiscal year for which assessed;

 

(vi)                                               Water rates
and charges;

 

(vii)                                            Sewer and
vault taxes and rents; and

 

(viii)                                         all other
items of income and expense normally apportioned in sales of property in
similar situations in the applicable jurisdiction where each Property is
located.

 

If any of the foregoing cannot
be apportioned at the Closing because of the unavailability of the amounts
which are to be apportioned, such items shall be apportioned on the basis of a
good faith estimate by the parties and reconciled as soon as practicable after
the Closing Date but, in any event, no later than one (1) year after the
Closing Date.

 

(b)                               If there are
water, gas or electric meters located at any Property, the Sellers shall obtain
readings thereof to a date not more than thirty (30) days prior to the Closing
Date and the unfixed water rates and charges, sewer taxes and rents 

 

15

 

and gas and electricity charges, if any,
based thereon for the intervening time shall be apportioned on the basis of
such last readings.  If such readings are
not obtainable by the Closing Date, then, at the Closing, any water rates and
charges, sewer taxes and rents and gas and electricity charges which are based
on such readings shall be prorated based upon the per diem charges obtained by
using the most recent period for which such readings shall then be available.  Upon the taking of subsequent actual
readings, the apportionment of such charges shall be recalculated and the
applicable Seller or the Purchaser, as the case may be, promptly shall make a
payment to the other based upon such recalculations.  The parties agree to make such final
recalculations within sixty (60) days after the Closing Date.

 

(c)                                If any
refunds of real property taxes or assessments, water rates and charges or sewer
taxes and rents shall be made after the Closing, the same shall be held in
trust by the applicable Seller or the Purchaser, as the case may be, and shall
first be applied to the unreimbursed costs incurred in obtaining the same, then
to any required refunds to tenants under the Leases, and the balance, if any,
shall be paid to the applicable Seller (for the period prior to the Closing
Date) and to the Purchaser (for the period commencing with the Closing Date).

 

(d)                               If, on the
Closing Date, any Property shall be or shall have been affected by any special
or general assessment or assessments or real property taxes payable in a lump
sum or which are or may become payable in installments of which the first
installment is then a charge or lien and has become payable, the applicable
Seller shall pay or cause to be paid at the Closing the unpaid installments of
such assessments due and as of the Closing Date.

 

(e)                                No insurance
policies of the Sellers are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made.

 

(f)                                  At the
Closing, the Sellers shall transfer to the Purchaser the amount of all
unapplied security deposits held pursuant to the terms of the Leases.

 

(g)                               Brokerage
commissions, tenant improvement expenses and other amounts payable by the
applicable Seller as landlord under Leases entered into by such Seller after
the date hereof, or in connection with the renewal or extension of any existing
Lease, shall be the responsibility of the Purchaser, and the Purchaser shall
reimburse such Seller at the Closing for all such 

 

16

 

brokerage commissions, tenant improvement
expenses and other amounts paid by such Seller prior to the Closing.  The Purchaser shall receive a credit at
Closing for all unpaid brokerage commissions, tenant improvement expenses and
other amounts payable by the applicable Seller as landlord under Leases entered
into by such Seller prior to the date hereof.

 

(h)                               Amounts
payable after the date hereof on account of capital expenditures relating to
the Properties under the 2008 capital expenditure budget prepared as of March 31,
2008 (the “CapEx Budget”) (including, without limitation, budgeted items
for “building improvements” and “development and redevelopment”), shall be the
responsibility of the Purchaser, and the Purchaser shall reimburse the applicable
Seller at the Closing for all amounts paid by such Seller prior to the Closing
on account of capital expenditures under the CapEx Budget payable after the
date hereof.  The Purchaser shall receive
a credit at Closing for all unpaid amounts payable on account of capital
expenditures under the CapEx Budget prior to the date hereof.  A copy of the CapEx Budget has been
previously provided to the Purchaser.

 

(i)                                   If a net
amount is owed by any Seller to the Purchaser pursuant to this Section 9.1,
such amount shall be credited against the applicable Allocable Purchase
Price.  If a net amount is owed by the
Purchaser to the Sellers pursuant to this Section 9.1, such amount
shall be added to the applicable Allocable Purchase Price paid to such Seller.

 

(j)                                   If, on the
Closing Date, there are past due rents with respect to any Lease, amounts
received by the Purchaser with respect to such Lease after the Closing Date
shall be applied, first, to rents due or to become due during the
calendar month in which the Closing occurs, and then, to all other rents
due or past due in inverse order to the order in which they became due (i.e.,
first to arrearages most recently occurring, then to older arrearages).  In no event shall any Seller have any right
to take any action to collect any past due rents or other amounts following the
Closing; provided, however, the Purchaser shall use commercially
reasonable efforts to collect such past due rents and other amounts, except
that the Purchaser shall have no obligation to institute any legal action or
proceeding or otherwise enforce any of its rights and remedies under any Lease
in connection with such commercially reasonable efforts.

 

The provisions of this Section 9.1 shall survive the
Closing.

 

17

 

9.2                               Closing Costs.

 

(a)                                The
Purchaser shall pay (i) the costs of closing and diligence in connection
with the transactions contemplated hereby (including, without limitation, all
premiums, charges and fees of the Title Company in connection with the title
examination and insurance policies to be obtained by the Purchaser, including
affirmative endorsements), (ii) all documentary, stamp, sales, intangible
and other transfer taxes and fees incurred in connection with the transactions
contemplated by this Agreement, and (iii) all state, city, county,
municipal and other governmental recording and filing fees and charges.

 

(b)                               Each party
shall pay the fees and expenses of its attorneys and other consultants.

 

SECTION 10.                   DAMAGE TO OR CONDEMNATION OF PROPERTY.

 

10.1                         Casualty. 
If, prior to the Closing, any Property is  materially destroyed or damaged by fire or
other casualty, the Sellers shall promptly notify the Purchaser of such fact.  In such event, the Purchaser shall have the
right to terminate this Agreement only with respect to such Property by giving
notice to the Sellers not later than ten (10) days after giving the
Sellers notice (and, if necessary, the Closing Date shall be extended until one
day after the expiration of such ten-day period).  If the Purchaser elects to terminate this
Agreement with respect to such Property as aforesaid, this Agreement shall
terminate and be of no further force and effect with respect to such Property,
and no party shall have any liability to the other hereunder with respect to
such Property.  If less than a material
part of any Property shall be affected by fire or other casualty or if the
Purchaser shall not elect to terminate this Agreement with respect to such Property
as aforesaid, there shall be no abatement of the Purchase Price and the
applicable Seller shall assign to the Purchaser at the Closing the rights of
such Seller to the proceeds, if any, under such Seller’s insurance policies
covering such Property with respect to such damage or destruction and there
shall be credited against the Purchase Price and the Allocable Purchase Price
the amount of any deductible, any proceeds previously received by the Sellers
on account thereof and any deficiency in proceeds.

 

10.2                         Condemnation.  If, prior to the Closing, a material part of
any Property (including access or parking thereto), is taken by eminent domain
(or is the subject of a pending taking which has not yet been consummated), the
Sellers shall notify 

 

18

 

the Purchaser of such fact promptly after obtaining knowledge thereof
and the Purchaser shall have the right to terminate this Agreement only with
respect to such Property by giving notice to the Sellers not later than ten (10) days
after giving the Sellers notice (and, if necessary, the Closing Date shall be
extended until one day after the expiration of such ten-day period).  If the Purchaser elects to terminate this
Agreement with respect to such Property as aforesaid, this Agreement shall
terminate and be of no further force and effect with respect to such Property,
and no party shall have any liability to the other hereunder with respect to
such Property.  If less than a material
part of any Property shall be affected or if the Purchaser shall not elect to
terminate this Agreement with respect to such Property as aforesaid, the sale
of the Properties shall be consummated as herein provided without any
adjustment to the Purchase Price (except to the extent of any condemnation
award received by the Seller prior to the Closing) and the applicable Seller
shall assign to the Purchaser at the Closing all of such Seller’s right, title
and interest in and to all awards, if any, for the taking, and the Purchaser
shall be entitled to receive and keep all awards for the taking of such
Property or portion thereof.

 

10.3                         Survival.  The parties’ obligations, if any, under this Section 10
shall survive the Closing.

 

SECTION 11.                   DEFAULT.

 

11.1                         Default by the Sellers. 
If the transaction herein contemplated fails to close as a result of the
default of any Seller hereunder, or any Seller having made any representation
or warranty herein which shall be untrue or misleading in any material respect,
or any Seller having failed to perform any of the material covenants and
agreements contained herein to be performed by such Seller, the Purchaser may,
as its sole remedy, either (x) terminate this Agreement or (y) pursue
a suit for specific performance.

 

11.2                         Default by the Purchaser. 
If the transaction herein contemplated fails to close as a result of the
default of the Purchaser hereunder, or the Purchaser having made any
representation or warranty herein which shall be untrue or misleading in any
material respect, or the Purchaser having failed to perform any of the covenants
and agreements contained herein to be performed by it, the Sellers may
terminate this Agreement (in which case, the Purchaser shall reimburse the
Sellers for all of the fees, charges, disbursements and expenses of the Sellers’
attorneys).

 

19

 

SECTION 12.                   MISCELLANEOUS.

 

12.1                         Allocation of Liability.  It is
expressly understood and agreed that the Sellers shall be liable to third
parties for any and all obligations, claims, losses, damages, liabilities, and
expenses to the extent arising out of events, contractual obligations, acts, or
omissions of any Seller that occurred in connection with the ownership or
operation of any Property during the period in which such Seller owned such
Property prior to the Closing and the Purchaser shall be liable to third
parties for any and all obligations, claims, losses, damages, liabilities and
expenses to the extent arising out of events, contractual obligations, acts, or
omissions of the Purchaser that occur in connection with the ownership or
operation of any Property during the period in which the Purchaser owns such
Property after the Closing.  The
provisions of this Section 12.1 shall survive the Closing.

 

12.2                         Brokers. 
Each of the parties hereto represents to the other parties that it dealt
with no broker, finder or like agent in connection with this Agreement or the
transactions contemplated hereby.  Each
party shall indemnify and hold harmless the other party and its respective
legal representatives, heirs, successors and assigns from and against any loss,
liability or expense, including reasonable attorneys’ fees, charges and
disbursements arising out of any claim or claims for commissions or other
compensation for bringing about this Agreement or the transactions contemplated
hereby made by any other broker, finder or like agent, if such claim or claims
are based in whole or in part on dealings with the indemnifying party.  The provisions of this Section 12.2
shall survive the Closing.

 

12.3                         Publicity. 
The parties agree that, except as otherwise required by law and except
for the exercise of any remedy hereunder, no party shall, with respect to this
Agreement and the transactions contemplated hereby, contact or conduct
negotiations with public officials, make any public pronouncements, issue press
releases or otherwise furnish information regarding this Agreement or the
transactions contemplated to any third party without the consent of the other
party, which consent shall not be unreasonably withheld, conditioned or
delayed.

 

12.4                         Notices.  (a) 
Any and all notices, demands, consents, approvals, offers, elections and other
communications required or permitted under this Agreement shall be deemed
adequately given if in writing and the same shall be delivered either in 

 

20

 

hand, by telecopier with confirmed receipt, or by mail or Federal
Express or similar expedited commercial carrier, addressed to the recipient of
the notice, postpaid and registered or certified with return receipt requested
(if by mail), or with all freight charges prepaid (if by Federal Express or
similar carrier).

 

(b)                               All notices
required or permitted to be sent hereunder shall be deemed to have been given
for all purposes of this Agreement upon the date of acknowledged receipt, in
the case of a notice by telecopier, and, in all other cases, upon the date of
receipt or refusal, except that whenever under this Agreement a notice is
either received on a day which is not a Business Day or is required to be
delivered on or before a specific day which is not a Business Day, the day of
receipt or required delivery shall automatically be extended to the next
Business Day.

 

(c)                                All such
notices shall be addressed,

 

if to any Seller, to:

 

c/o HRPT Properties Trust

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. John C. Popeo

[Telecopier No. (617)
928-1305]

 

with a copy
to:

 

Skadden, Arps,
Slate, Meagher & Flom LLP

300 South
Grand Avenue, 34th Floor

Los Angeles,
California 90071

Attn:  Meryl K. Chae, Esq.

[Telecopier No. (213)
621-5035]

 

if to the Purchaser, to:

 

Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn:  Mr. David J. Hegarty

[Telecopier No. (617)
796-8349]

 

 with a copy to:

 

Sullivan & Worcester
LLP

One Post Office Square

Boston, Massachusetts  02109

 

21

 

Attn:  Nancy S. Grodberg, Esq.

[Telecopier No. (617)
338-2880]

 

(d)                               By notice
given as herein provided, the parties hereto and their respective successor and
assigns shall have the right from time to time and at any time during the term
of this Agreement to change their respective addresses effective upon receipt
by the other parties of such notice and each shall have the right to specify as
its address any other address within the United States of America.

 

12.5                         Waivers, Etc.  Subject to the terms of the last paragraph of
Section 6, any waiver of any term or condition of this Agreement,
or of the breach of any covenant, representation or warranty contained herein,
in any one instance, shall not operate as or be deemed to be or construed as a
further or continuing waiver of any other breach of such term, condition,
covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to
enforce or require performance of any provision hereof operate as a waiver of
or affect in any manner such party’s right at a later time to enforce or
require performance of such provision or any other provision hereof.  This Agreement may not be amended, nor shall
any waiver, change, modification, consent or discharge be effected, except by
an instrument in writing executed by or on behalf of the party against whom enforcement
of any amendment, waiver, change, modification, consent or discharge is sought.

 

12.6                         Assignment; Successors and Assigns.  Subject to Section 12.15, this
Agreement and all rights and obligations hereunder shall not be assignable,
directly or indirectly, by any party without the written consent of the other,
except that the Purchaser may assign this Agreement to any entity wholly owned,
directly or indirectly, by the Purchaser; provided, however,
that, in the event this Agreement shall be assigned to any one or more entities
wholly owned, directly or indirectly, by the Purchaser, the Purchaser named
herein shall remain liable for the obligations of the “Purchaser”
hereunder.  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective legal representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

22

 

12.7                         Severability. 
If any provision of this Agreement shall be held or deemed to be, or
shall in fact be, invalid, inoperative or unenforceable as applied to any
particular case in any jurisdiction or jurisdictions, or in all jurisdictions
or in all cases, because of the conflict of any provision with any constitution
or statute or rule of public policy or for any other reason, such
circumstance shall not have the effect of rendering the provision or provisions
in question invalid, inoperative or unenforceable in any other jurisdiction or
in any other case or circumstance or of rendering any other provision or
provisions herein contained invalid, inoperative or unenforceable to the extent
that such other provisions are not themselves actually in conflict with such
constitution, statute or rule of public policy, but this Agreement shall
be reformed and construed in any such jurisdiction or case as if such invalid,
inoperative or unenforceable provision had never been contained herein and such
provision reformed so that it would be valid, operative and enforceable to the
maximum extent permitted in such jurisdiction or in such case.

 

12.8                         Counterparts, Etc. 
This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
This Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter hereof and shall supersede and take the
place of any other instruments purporting to be an agreement of the parties
hereto relating to the subject matter hereof.

 

12.9                         Performance on Business Days.  In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a
Business Day, the time for payment or performance shall automatically be
extended to the first Business Day following such date.

 

12.10                   Attorneys’ Fees. 
If any lawsuit or arbitration or other legal proceeding arises in
connection with the interpretation or enforcement of this Agreement, the
prevailing party therein shall be entitled to receive from the other party the
prevailing party’s costs and expenses, including reasonable attorneys’ fees
incurred in connection therewith, in preparation therefor and on appeal therefrom,
which amounts shall be included in any judgment therein.

 

12.11                   Section and Other Headings.  The headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

 

23

 

12.12                   Time of Essence. 
Time shall be of the essence with respect to the performance of each and
every covenant and obligation, and the giving of all notices, under this
Agreement.

 

12.13                   Governing Law. 
This Agreement shall be interpreted, construed, applied and enforced in
accordance with the laws of The Commonwealth of Massachusetts.

 

12.14                   Arbitration. 
Any party hereto may elect to submit any dispute hereunder that has an
amount in controversy in excess of $250,000 to arbitration hereunder.  Any such arbitration shall be conducted in
Boston, Massachusetts in accordance with the Commercial Arbitration Rules of
the American Arbitration Association then pertaining and the decision of the
arbitrators with respect to such dispute shall be binding, final and conclusive
on the parties.

 

In the event any party hereto shall elect to submit any such dispute to
arbitration hereunder, the Sellers, on the one hand, and the Purchaser, on the
other hand, shall each appoint and pay all fees of a fit and impartial person
as arbitrator with at least ten (10) years’ recent professional experience
in the general subject matter of the dispute. 
Notice of such appointment shall be sent in writing by each party to the
other, and the arbitrators so appointed, in the event of their failure to agree
within thirty (30) days after the appointment of the second arbitrator upon the
matter so submitted, shall appoint a third arbitrator.  If either the Sellers, on the one hand, or
the Purchaser, on the other hand, shall fail to appoint an arbitrator, as
aforesaid, for a period of ten (10) days after written notice from the
other party to make such appointment, then the arbitrator appointed by the
party having made such appointment shall appoint a second arbitrator and the
two (2) so appointed shall, in the event of their failure to agree upon
any decision within thirty (30) days thereafter, appoint a third
arbitrator.  If such arbitrators fail to
agree upon a third arbitrator within forty five (45) days after the appointment
of the second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses incident to the proceedings shall be borne equally between the Sellers
and the Purchaser, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for by the
parties, shall be paid by the 

 

24

 

respective party engaging such counsel or calling or engaging such
witnesses.

 

The
decision of the arbitrators shall be rendered within thirty (30) days after
appointment of the third arbitrator. 
Such decision shall be in writing and in duplicate, one counterpart
thereof to be delivered to the Sellers and one to the Purchaser.  A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrators in accordance
with the rules and statutes applicable thereto then obtaining.

 

12.15                   Like Kind Exchange.  At either party’s request, the
non-requesting party will take all actions reasonably requested by the
requesting party in order to effectuate all or any part of the transactions
contemplated by this Agreement as a forward or reverse like-kind exchange for
the benefit of the requesting party in accordance with Section 1031 of the
Internal Revenue Code and, in the case of a reverse exchange, Rev. Proc.
2000-37, including executing an instrument acknowledging and consenting to any
assignment by the requesting party of its rights hereunder to a qualified
intermediary or an exchange accommodation titleholder.  In furtherance of the foregoing and
notwithstanding anything contained in this Agreement to the contrary, the
requesting party may assign its rights under this Agreement to a “qualified
intermediary” or an “exchange accommodation titleholder” in order to
facilitate, at no cost or expense to the other, a forward or reverse like-kind
exchange under Section 1031 of the Internal Revenue Code; provided,
however, that such assignment will not relieve the requesting party of
any of its obligations hereunder.  The
non-requesting party will also agree to issue all closing documents, including
the deed, to the applicable qualified intermediary or exchange accommodation titleholder
if so directed by the requesting party prior to Closing.  Notwithstanding the foregoing, in no event
shall the non-requesting party incur or be subject to any liability that is not
otherwise provided for in this Agreement.

 

12.16                   Recording.  This Agreement may not be recorded without the
prior written consent of both parties.

 

12.17                   Joint and Several Liability.  Each Seller
shall be jointly and severally liable with each other Seller for all of the
obligations and liabilities of any Seller under this Agreement.

 

12.18                   Non-liability of Trustees.  The Declarations of Trust of HRPT and Hub,
copies of which are duly filed with the Department of Assessments and Taxation
of the State of Maryland, 

 

25

 

provide that the names “HRPT Properties Trust” and “Hub Properties
Trust” refer to the trustees under such Declarations of Trust collectively as
trustees, but not individually or personally, and that no trustee, officer,
shareholder, employee or agent of HRPT or Hub shall be held to any personal liability,
jointly or severally, for any obligation of, or claim against, HRPT or Hub, as
the case may be.  All persons dealing
with the Sellers in any way shall look only to the assets of the Sellers for
the payment of any sum or the performance of any obligation.

 

12.19                   Non-liability of Trustees of Purchaser.  The Declaration of Trust of Senior Housing
Properties Trust, a copy of which is duly filed with the Department of
Assessments and Taxation of the State of Maryland, provides that the name
“Senior Housing Properties Trust” refers to the trustees under such Declaration
of Trust collectively as trustees, but not individually or personally, and that
no trustee, officer, shareholder, employee or agent of Senior Housing
Properties Trust shall be held to any personal liability, jointly or severally,
for any obligation of, or claim against, Senior Housing Properties Trust.  All persons dealing with the Purchaser in any
way shall look only to the assets of the Purchaser for the payment of any sum
or the performance of any obligation.

 

12.20                   Waiver and Further Assurances.  The Purchaser hereby acknowledges that it is
a sophisticated purchaser of real properties and that it is aware of all
disclosures the Sellers are or may be required to provide to the Purchaser in
connection with the transactions contemplated hereby pursuant to any law, rule or
regulation (including those of Massachusetts and those of the state in which
each Property is located).   The
Purchaser hereby acknowledges that, prior to the execution of this Agreement,
the Purchaser has had access to all information necessary to acquire the
Properties and the Purchaser acknowledges that the Sellers have fully and
completely fulfilled any and all disclosure obligations with respect thereto.  The Purchaser hereby fully and completely
discharges the Sellers from any further disclosure obligations whatsoever
relating to the Properties.  In addition
to the actions recited herein and contemplated to be performed, executed,
and/or delivered by the Sellers and the Purchaser, the Sellers and the
Purchaser agree to perform, execute and/or deliver or cause to be performed,
executed and/or delivered at the Closing or after the Closing any and all such
further acts, instruments, deeds and assurances as may be reasonably required
to establish, confirm or otherwise evidence the Sellers’ satisfaction of any 

 

26

 

disclosure obligations or to otherwise consummate the transactions
contemplated hereby.

 

[Signature page follows.]

 

27

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed as a sealed instrument as of
the date first above written.

 

	
   

  	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HRPT PROPERTIES TRUST, a Maryland

  
	
   

  	
  real estate investment trust

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
  Treasurer and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  HUB PROPERTIES TRUST, a Maryland

  
	
   

  	
  real estate investment trust

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
  MOB REALTY TRUST, a

  	
   

  
	
   

  	
  Massachusetts nominee trust

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John A. Mannix

  
	
   

  	
   

  	
  John A. Mannix, as trustee as

  
	
   

  	
   

  	
  aforesaid and not individually

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo, as trustee as

  
	
   

  	
   

  	
  aforesaid and not individually

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
  SENIOR HOUSING PROPERTIES TRUST, a 

  Maryland real estate investment trust

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David J. Hegarty

  
	
   

  	
   

  	
  David J. Hegarty

  
	
   

  	
   

  	
  President

  
					

 

28

 

SCHEDULE A

 

List of Properties and Allocable Purchase
Prices

 

	
  Property

  	
   

  	
  Allocable Purchase Price

  	
   

  
	
  Fallon
  Clinic

  35 Millbury Street

  Auburn, MA

  	
   

  	
  $

  	
  8,776,753

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  Cady Brook Plaza

  Charlton, MA

  	
   

  	
  $

  	
  4,030,061

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  370 Lunenburg Street

  Fitchburg, MA

  	
   

  	
  $

  	
  3,791,968

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  28 Grafton Common

  Grafton, MA

  	
   

  	
  $

  	
  772,543

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  165 Mill Street

  Leominster, MA

  	
   

  	
  $

  	
  10,548,988

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  108 Elm Street

  Milbury, MA

  	
   

  	
  $

  	
  940,405

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  176 West Street

  Milford, MA

  	
   

  	
  $

  	
  3,645,564

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  338 Church Street

  Northbridge, MA

  	
   

  	
  $

  	
  707,227

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  405-407 Main Street

  Spencer, MA

  	
   

  	
  $

  	
  2,950,306

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  67 Hall Road

  Sturbridge, MA

  	
   

  	
  $

  	
  1,915,433

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  340 Thompson Road

  Webster, MA

  	
   

  	
  $

  	
  5,343,208

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  112 E. Main Street

  Westborough, MA

  	
   

  	
  $

  	
  367,186

  	
   

  

 

 

	
  Property

  	
   

  	
  Allocable Purchase Price

  	
   

  
	
  Fallon
  Clinic

  106 East Main Street

  Westborough, MA

  	
   

  	
  $

  	
  8,121,676

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  630 Plantation Street

  Worcester, MA

  	
   

  	
  $

  	
  11,562,701

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  277 E. Mountain Street

  Worcester, MA

  	
   

  	
  $

  	
  2,480,103

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  135 Gold Star Boulevard

  Worcester, MA

  	
   

  	
  $

  	
  12,182,513

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  95 Lincoln Street

  Worcester, MA

  	
   

  	
  $

  	
  4,719,548

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  191 May Street

  Worcester, MA

  	
   

  	
  $

  	
  4,488,295

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fallon
  Clinic

  425 N. Lake Avenue

  Worcester, MA

  	
   

  	
  $

  	
  7,604,453

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  210 Mall
  Boulevard

  King of Prussia, PA

  	
   

  	
  $

  	
  6,055,222

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.I.P. of
  Brooklyn

  Citibank Building, 6300 Eighth Avenue

  Brooklyn, NY

  	
   

  	
  $

  	
  11,906,673

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  112,910,824

  	
   

  

 

 

SCHEDULE B-1 through B-21

 

Land

 

 

SCHEDULE C

 

Rent Roll

 

 

SCHEDULE D

 

Forms of Deed

 

Certain Schedules to this agreement have been omitted. The Company
agrees to furnish supplementally copies of any of the omitted Schedules to the
Securities and Exchange Commission upon request.Exhibit 10.2

 

Torrey
Pines

3030-50

Science
Park

San Diego, CA

 

PURCHASE AND SALE AGREEMENT

 

by and between

 

HUB PROPERTIES TRUST,

 

as Seller,

 

and

 

SENIOR HOUSING PROPERTIES TRUST,

 

as Purchaser

 

 

May 5, 2008

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS.

  	
  1

  
	
  1.1.

  	
  “Agreement”

  	
  1

  
	
  1.2.

  	
  “Business Day”

  	
  1

  
	
  1.3.

  	
  “Closing”

  	
  1

  
	
  1.4.

  	
  “Closing Date”

  	
  1

  
	
  1.5.

  	
  “Existing Survey”

  	
  1

  
	
  1.6.

  	
  “Existing Title Policy”

  	
  2

  
	
  1.7.

  	
  “Improvements”

  	
  2

  
	
  1.8.

  	
  “Land”

  	
  2

  
	
  1.9.

  	
  “Leases”

  	
  2

  
	
  1.10.

  	
  “Other Property”

  	
  2

  
	
  1.11.

  	
  “Permitted Exceptions”

  	
  2

  
	
  1.12.

  	
  “Property”

  	
  2

  
	
  1.13.

  	
  “Purchase Price”

  	
  2

  
	
  1.14.

  	
  “Purchaser”

  	
  3

  
	
  1.15.

  	
  “Rent Roll”

  	
  3

  
	
  1.16.

  	
  “Seller”

  	
  3

  
	
  1.17.

  	
  “Title Company”

  	
  3

  
	
  1.18.

  	
  “Update”

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  PURCHASE AND SALE; CLOSING.

  	
  3

  
	
  2.1.

  	
  Purchase and Sale.

  	
  3

  
	
  2.2.

  	
  Closing.

  	
  3

  
	
  2.3.

  	
  Purchase Price.

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  TITLE, DILIGENCE MATERIALS, ETC.

  	
  4

  
	
  3.1.

  	
  Title.

  	
  4

  
	
  3.2.

  	
  No Other Diligence.

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS TO THE PURCHASER’S
  OBLIGATION TO CLOSE.

  	
  5

  
	
  4.1.

  	
  Closing Documents.

  	
  5

  
	
  4.2.

  	
  Title Policy.

  	
  6

  
	
  4.3.

  	
  Environmental Reliance Letters.

  	
  6

  
	
  4.4.

  	
  Condition of Property.

  	
  6

  
	
  4.5.

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS TO SELLER’S
  OBLIGATION TO CLOSE.

  	
  7

  
	
  5.1.

  	
  Purchase Price.

  	
  7

  
	
  5.2.

  	
  Closing Documents.

  	
  7

  
	
  5.3.

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REPRESENTATIONS AND WARRANTIES
  OF SELLER.

  	
  7

  
	
  6.1.

  	
  Status and Authority of the
  Seller, Etc.

  	
  7

  
	
  6.2.

  	
  Action of the Seller, Etc.

  	
  7

  
	
  6.3.

  	
  No Violations of Agreements.

  	
  8

  
	
  6.4.

  	
  Litigation.

  	
  8

  
	
  6.5.

  	
  Existing Leases, Etc.

  	
  8

  
	
  6.6.

  	
  Agreements, Etc.

  	
  9

  
	
  6.7.

  	
  Not a Foreign Person.

  	
  10

  

 

i

 

	
  SECTION 7.

  	
  REPRESENTATIONS AND WARRANTIES
  OF PURCHASER.

  	
  11

  
	
  7.1.

  	
  Status and Authority of the
  Purchaser.

  	
  11

  
	
  7.2.

  	
  Action of the Purchaser.

  	
  11

  
	
  7.3.

  	
  No Violations of Agreements.

  	
  11

  
	
  7.4.

  	
  Litigation.

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  COVENANTS OF THE SELLER.

  	
  12

  
	
  8.1.

  	
  Approval of Agreements.

  	
  12

  
	
  8.2.

  	
  Operation of Property.

  	
  12

  
	
  8.3.

  	
  Compliance with Laws, Etc.

  	
  12

  
	
  8.4.

  	
  Compliance with Agreements.

  	
  12

  
	
  8.5.

  	
  Notice of Material Changes or
  Untrue Representations.

  	
  12

  
	
  8.6.

  	
  Insurance.

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  APPORTIONMENTS.

  	
  13

  
	
  9.1.

  	
  Real Property Apportionments.

  	
  13

  
	
  9.2.

  	
  Closing Costs.

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  DAMAGE TO OR CONDEMNATION OF
  PROPERTY.

  	
  16

  
	
  10.1.

  	
  Casualty.

  	
  16

  
	
  10.2.

  	
  Condemnation.

  	
  16

  
	
  10.3.

  	
  Survival.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  DEFAULT.

  	
  17

  
	
  11.1.

  	
  Default by the Seller.

  	
  17

  
	
  11.2.

  	
  Default by the Purchaser.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  MISCELLANEOUS.

  	
  17

  
	
  12.1.

  	
  Allocation of Liability.

  	
  17

  
	
  12.2.

  	
  Brokers.

  	
  18

  
	
  12.3.

  	
  Publicity.

  	
  18

  
	
  12.4.

  	
  Notices.

  	
  18

  
	
  12.5.

  	
  Waivers, Etc.

  	
  20

  
	
  12.6.

  	
  Assignment; Successors and
  Assigns.

  	
  20

  
	
  12.7.

  	
  Severability.

  	
  20

  
	
  12.8.

  	
  Counterparts, Etc.

  	
  21

  
	
  12.9.

  	
  Performance on Business Days.

  	
  21

  
	
  12.10.

  	
  Attorneys’ Fees.

  	
  21

  
	
  12.11.

  	
  Section and Other Headings.

  	
  21

  
	
  12.12.

  	
  Time of Essence.

  	
  21

  
	
  12.13.

  	
  Governing Law.

  	
  21

  
	
  12.14.

  	
  Arbitration.

  	
  21

  
	
  12.15.

  	
  Like Kind Exchange.

  	
  22

  
	
  12.16.

  	
  Recording.

  	
  23

  
	
  12.17.

  	
  Non-liability of Trustees of
  Seller.

  	
  23

  
	
  12.18.

  	
  Non-liability of Trustees of
  Purchaser.

  	
  23

  
	
  12.19.

  	
  Waiver and Further Assurances.

  	
  24

  
	
  12.20.

  	
  State Specific Provisions.

  	
  24

  

 

ii

 

PURCHASE AND SALE AGREEMENT

 

THIS
PURCHASE AND SALE AGREEMENT is made as of May 5,
2008, by and between HUB PROPERTIES TRUST,
a Maryland real estate investment trust (the “Seller”), and SENIOR HOUSING PROPERTIES TRUST, a Maryland real estate
investment trust (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS,
the Seller is the owner of the Property (this and other capitalized terms used
and not otherwise defined herein shall have the meanings given such terms in Section 1);
and

 

WHEREAS, the Seller
wishes to sell to the Purchaser, and the Purchaser desires to purchase from the
Seller, the Property, subject to and upon the terms and conditions hereinafter
set forth;

 

NOW,
THEREFORE, in consideration of the mutual covenants
herein contained and other good and valuable consideration, the mutual receipt
and legal sufficiency of which are hereby acknowledged, the Seller and the
Purchaser hereby agree as follows:

 

SECTION 1.                          DEFINITIONS.

 

Capitalized
terms used in this Agreement shall have the meanings set forth below or in the
section of this Agreement referred to below:

 

1.1.                                                 “Agreement”  shall mean this Purchase and Sale Agreement,
together with any exhibits and schedules attached hereto, as it and they may be
amended from time to time as herein provided.

 

1.2.                                                 “Business Day”  shall mean any day other than a Saturday,
Sunday or any other day on which banking institutions in The Commonwealth of
Massachusetts are authorized by law or executive action to close.

 

1.3.                                                 “Closing”  shall have the meaning given such term in Section 2.2.

 

1.4.                                                 “Closing Date”  shall have the meaning given such term in Section 2.2.

 

1.5.                                                 “Existing Survey”  shall mean the existing ALTA
survey of the Property.

 

 

1.6.                                                 “Existing Title Policy”  shall mean, the
existing title insurance policy for the Property.

 

1.7.                                                 “Improvements”  shall mean, the Seller’s entire
right, title and interest in and to the existing office buildings, fixtures and
other structures and improvements situated on, or affixed to, the Land.

 

1.8.                                                 “Land”  shall mean, the Seller’s entire right, title
and interest in and to (a) the parcel(s) of land described in Schedule
A hereto, together with (b) all easements, rights of way, privileges,
licenses and appurtenances which the Seller may own with respect thereto.

 

1.9.                                                 “Leases”  shall mean the leases identified in the Rent
Roll and any other leases hereafter entered into in accordance with the terms
of this Agreement.

 

1.10.                                           “Other Property”  shall mean the Seller’s entire
right, title and interest in and to (a) all fixtures, machinery, systems,
equipment and items of personal property owned by the Seller and attached or
appurtenant to, located on and used in connection with the ownership, use,
operation or maintenance of the Land or Improvements, if any, and (b) all
intangible property owned by the Seller arising from or used in connection with
the ownership, use, operation or maintenance of the Land or Improvements, if
any.

 

1.11.                                           “Permitted Exceptions”  shall mean, collectively, (a) liens for
taxes, assessments and governmental charges not yet due and payable or due and
payable but not yet delinquent; (b) the Leases; (c) the exceptions to
title set forth in the Existing Title Policy; (d) all matters shown on the
Existing Survey, and (e) such other nonmonetary encumbrances with respect
to the Property as may be shown on the Update which are not objected to by the
Purchaser (or which are objected to, and subsequently waived, by the Purchaser)
in accordance with Section 3.1.

 

1.12.                                           “Property”  shall mean, collectively, all of the Land,
the Improvements and the Other Property.

 

1.13.                                           “Purchase Price”  shall mean One Hundred Fifteen Million Six
Hundred Fifty-Three Thousand Seven Hundred Fifty-One Dollars ($115,653,751).

 

2

 

1.14.                                           “Purchaser”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.15.                                           “Rent Roll”  shall mean Schedule B to this
Agreement.

 

1.16.                                           “Seller”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.17.                                           “Title Company”  shall mean Lawyers Title Insurance
Corporation.

 

1.18.                                           “Update”  shall have the meaning given such
term in Section 3.1.

 

SECTION 2.                            PURCHASE AND SALE; CLOSING.

 

2.1.                                                 Purchase and Sale.  In consideration of the payment of the
Purchase Price by the Purchaser to the Seller and for other good and valuable
consideration, the Seller hereby agrees to sell to the Purchaser, and the
Purchaser hereby agrees to purchase from the Seller, the Property for the
Purchase Price, subject to and in accordance with the terms and conditions of
this Agreement.

 

2.2.                                                 Closing.  The purchase and sale of the Property shall
be consummated at a closing (the “Closing”) to be held at the offices of
Sullivan & Worcester LLP, One Post Office Square, Boston,
Massachusetts, or at such other location as the Seller and the Purchaser may
agree, at 10:00 a.m., local time, on December 30, 2008, as the same
may be accelerated pursuant to this Section 2.2 (the “Closing Date”).

 

Notwithstanding
the foregoing, either party may accelerate the Closing Date by giving not less
than ten (10) Business Days prior written notice (an “Acceleration
Notice”) to the other, in which event the Closing Date shall be the date
set forth in such Acceleration Notice unless the party receiving the
Acceleration Notice gives written notice objecting to the accelerated date set
forth in the Acceleration Notice (a “Rejection Notice”) to the other
within five (5) Business Days after its receipt of the Acceleration
Notice, in which event, the Closing Date shall not be accelerated but shall
occur as set forth in the preceding paragraph; provided, however,
that the Seller shall have the right to give a Rejection Notice only if the
acceleration of the Closing Date will adversely effect the Seller’s ability to 

 

3

 

conclude a
like kind exchange pursuant to Section 12.15., and the Purchaser
shall have the right to give a Rejection Notice only if the Purchaser
determines, in its reasonable discretion, that the Purchaser does not, or will
not, have adequate funds to close on the accelerated Closing Date.

 

2.3.                                                 Purchase Price.

 

(a)                                  At Closing, the
Purchaser shall pay the Purchase Price to the Seller, subject to the following
adjustments:

 

(i)                                                   There
shall be added to, or deducted from, the Purchase Price such amounts as may be
required by Article 9.

 

(b)                                 The
Purchase Price, as adjusted as provided herein, shall be payable by wire
transfer of immediately available funds on the Closing Date to an account or
accounts to be designated by the Seller.

 

SECTION 3.                                              TITLE, DILIGENCE MATERIALS, ETC.

 

3.1.                                                 Title.  Prior to the execution of this Agreement, the
Seller has delivered the Existing Title Policy and the Existing Survey to the
Purchaser.

 

Within ten (10) days
after the execution hereof, the Purchaser shall order an update to the Existing
Title Policy (an “Update”) from the Title Company.  The Purchaser shall deliver to the Seller a
copy of the Update promptly upon receipt thereof.  Promptly after receipt of the Update, but, in
any event, prior to the Closing Date, the Purchaser shall give the Seller
written notice of any title exceptions (other than Permitted Exceptions) set
forth on the Update as to which the Purchaser objects.  The Seller shall have the right, but not the
obligation, to attempt to remove, satisfy or otherwise cure any exceptions to
title to which the Purchaser so objects. 
If, for any reason, in its sole discretion, the Seller is unable or
unwilling to take such actions as may be required to cause such exceptions to
be removed from the Update, the Seller shall give the Purchaser notice thereof;
it being understood and agreed that the failure of the Seller to give prompt
notice of objection shall be deemed an election by the Seller not to remedy
such matters.  If the Seller shall be
unable or unwilling to remove any title defects to which the Purchaser has so
objected, the Purchaser may elect (i) to terminate this Agreement or (ii) to
consummate the transactions contemplated hereby, notwithstanding such title
defect, without any abatement

 

4

 

or reduction in the Purchase Price on account thereof (whereupon such
objected to exceptions or matters shall be deemed to be Permitted
Exceptions).  The Purchaser shall make
any such election by written notice to the 
Seller given on or prior to the fifth (5th) Business Day
after the Seller’s notice of its unwillingness or inability to cure (or deemed
election not to cure) such defect and time shall be of the essence with respect
to the giving of such notice.  Failure of
the Purchaser to give such notice shall be deemed an election by the Purchaser
to proceed in accordance with clause (ii) above.

 

3.2.                                                 No Other Diligence.  The Purchaser acknowledges that, except
as provided in Section 3.1, (i) the Purchaser has had the
opportunity to fully investigate and inspect the physical and environmental
condition of the Property, and to review and analyze all title examinations,
surveys, environmental assessment reports, building evaluations, financial data
and other investigations and materials pertaining to the Property which the
Purchaser deems necessary to determine the feasibility of the Property and its
decision to acquire the Property, (ii) the Purchaser shall not be
conducting any further title examinations, surveys, environmental assessments,
building evaluations, financial analyses or other investigations with respect
to the Property, and (iii) the Purchaser shall not have any right to
terminate this Agreement as a result of any title examinations, surveys,
environmental assessments, building valuations, financial analyses or other
investigations with respect to the Property.

 

SECTION 4.                          CONDITIONS TO THE PURCHASER’S OBLIGATION TO
CLOSE.

 

The obligation
of the Purchaser to acquire the Property shall be subject to the satisfaction
of the following conditions precedent on and as of the Closing Date:

 

4.1.                                                 Closing Documents.  The Seller shall have delivered, or cause to
have been delivered, to the Purchaser the following:

 

(a)                                A
good and sufficient deed in the form attached as Schedule C hereto, with
respect to the Property, in proper statutory form for recording, duly executed
and acknowledged by the Seller, conveying title to the Property, free from all
liens and encumbrances other than the Permitted Exceptions;

 

(b)                               An
assignment by the Seller and an assumption by the Purchaser, in form and
substance reasonably satisfactory to the Seller and the Purchaser, duly
executed and acknowledged by the 

 

5

 

Seller and the Purchaser, of all of the
Seller’s right, title and interest in, to and under the Leases and all of the
Seller’s right, title and interest, if any, in, to and under all transferable
licenses, contracts, permits and agreements affecting the Property;

 

(c)                                A bill of sale by the
Seller, without warranty of any kind, in form and substance reasonably
satisfactory to the Seller and the Purchaser, with respect to any personal
property owned by the Seller, situated at the Property and used exclusively by
the Seller in connection with the Property (it being understood and agreed that
no portion of the Purchase Price is allocated to personal property);

 

(d)                               To
the extent the same are in the Seller’s possession, original, fully executed
copies of all material documents and agreements, plans and specifications and
contracts, licenses and permits pertaining to the Property;

 

(e)                                To
the extent the same are in the Seller’s possession, duly executed original
copies of the Leases;

 

(f)                                  A
closing statement showing the Purchase Price, apportionments and fees, and
costs and expenses paid in connection with the Closing; and

 

(g)                               Such
other conveyance documents, certificates, deeds and other instruments as the
Purchaser, the Seller or the Title Company may reasonably require and as are
customary in like transactions in sales of property in similar transactions.

 

4.2.                                                 Title Policy.  The Title Company shall be prepared to
issue, upon payment of the title premium at its regular rates, a title policy
in the amount of the Purchase Price, insuring title to the Property is vested
in the Purchaser or its designee or assignee, subject only to the Permitted
Exceptions, with such endorsements as shall be reasonably required by the
Purchaser.

 

4.3.                                                 Environmental Reliance Letters.  The Purchaser shall have received a reliance letter, authorizing the Purchaser and
its designees and assignees to rely on the most recent environmental assessment
report prepared for the Property, in form and substance reasonably acceptable
to the Purchaser.

 

4.4.                                                 Condition of Property.  The Property shall be in substantially
the same physical condition as on the date of this 

 

6

 

Agreement, ordinary wear and tear and, subject to Section 10.1,
casualty excepted.

 

4.5.                                                 Other Conditions.  All representations and warranties of the
Seller herein shall be true, correct and complete in all material respects on
and as of the Closing Date and the Seller shall have performed in all material
respects all covenants and obligations required to be performed by the Seller
on or before the Closing Date.

 

SECTION 5.                          CONDITIONS TO SELLER’S OBLIGATION TO CLOSE.

 

The obligation
of the Seller to convey the Property to the Purchaser is subject to the
satisfaction of the following conditions precedent on and as of the Closing
Date:

 

5.1.                                                 Purchase Price.  The Purchaser shall deliver to the Seller the
Purchase Price payable hereunder, subject to the adjustments set forth in Section 2.3,
together with any closing costs to be paid by the Purchaser under Section 9.2.

 

5.2.                                                 Closing Documents.  The Purchaser shall have delivered to the
Seller duly executed and acknowledged counterparts of the documents described
in Section 4.1, where applicable.

 

5.3.                                                 Other Conditions.  All representations and warranties of the
Purchaser herein shall be true, correct and complete in all material respects
on and as of the Closing Date and the Purchaser shall have performed in all
material respects all covenants and obligations required to be performed by the
Purchaser on or before the Closing Date.

 

SECTION 6.                          REPRESENTATIONS AND WARRANTIES OF SELLER.

 

To induce the
Purchaser to enter into this Agreement, the Seller represents and warrants to
the Purchaser as follows:

 

6.1.                                                 Status and Authority of the Seller, Etc.  The Seller is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

6.2.                                                 Action of the Seller, Etc.  The Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon
the execution and 

 

7

 

delivery of any document to be delivered by the Seller on or prior to
the Closing Date, this Agreement and such document shall constitute the valid
and binding obligation and agreement of the Seller, enforceable against the
Seller in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

 

6.3.                                                 No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by the Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon the Property pursuant to the
terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness
or any other agreement or instrument by which the Seller is bound.

 

6.4.                                                 Litigation.  To the Seller’s actual knowledge, it has not
received written notice that any investigation, action or proceeding is pending
or threatened, which (i) questions the validity of this Agreement or any
action taken or to be taken pursuant hereto, or (ii) involves condemnation
or eminent domain proceedings against the Property or any portion thereof.

 

6.5.                                                 Existing Leases, Etc.  Subject to Section 8.1, other
than the Leases listed in the Rent Roll, the Seller has not entered into a
contract or agreement with respect to the occupancy of the Property that will
be binding on the Purchaser after the Closing. 
To the Seller’s actual knowledge: (a) the copies of the Leases
heretofore delivered by the Seller to the Purchaser are true, correct and
complete copies thereof; and (b) such Leases have not been amended except
as evidenced by amendments similarly delivered and constitute the entire
agreement between the Seller and the tenants thereunder.  Except as otherwise set forth in the Rent
Roll or the Leases: (i) to the Seller’ actual knowledge, each of its
Leases is in full force and effect on the terms set forth therein; (ii) to
the Seller’s actual knowledge, there are no uncured defaults or circumstances
which with the giving of notice, the passage of time or both would constitute a
default thereunder which would have a material adverse effect on the business
or operations of the Property; (iii) to the Seller’s actual knowledge,
each of its tenants is legally required to pay all sums and perform all
material obligations set forth therein without any ongoing concessions,
abatements, offsets, defenses or other basis for relief or adjustment; (iv) to
the Seller’s actual knowledge, 

 

8

 

none of its tenants has asserted in writing or has any defense to,
offsets or claims against, rent payable by it or the performance of its other
obligations under its Lease which would have a material adverse effect on the
on-going business or operations of the Property; (v) the Seller has no
outstanding obligation to provide any of its tenants with an allowance to
perform, or to perform at its own expense, any tenant improvements; (vi) none
of its tenants has prepaid any rent or other charges relating to the
post-Closing period; (vii) to the Seller’s actual knowledge, none of its
tenants has filed a petition in bankruptcy or for the approval of a plan of
reorganization or management under the Federal Bankruptcy Code or under any
other similar state law, or made an admission in writing as to the relief
therein provided, or otherwise become the subject of any proceeding under any
federal or state bankruptcy or insolvency law, or has admitted in writing its
inability to pay its debts as they become due or made an assignment for the
benefit of creditors, or has petitioned for the appointment of or has had
appointed a receiver, trustee or custodian for any of its property, in any case
that would have a material adverse effect on the business or operations of the
Property; (viii) to the Seller’s actual knowledge, none of its tenants has
requested in writing a modification of its Lease, or a release of its
obligations under its Lease in any material respect or has given written notice
terminating its Lease, or has been released of its obligations thereunder in
any material respect prior to the normal expiration of the term thereof, in any
case that would have a material adverse effect on the on-going business or
operations of the Property; (ix) to the Seller’s actual knowledge, except
as set forth in the Leases, no guarantor has been released or discharged,
voluntarily or involuntarily, or by operation of law, from any obligation under
or in connection with any of its Leases or any transaction related thereto; and
(x) all brokerage commissions currently due and payable with respect to
each of its Leases have been paid.  To the
Seller’s actual knowledge, the other information set forth in the Rent Roll is
true, correct and complete in all material respects.

 

6.6.                                                 Agreements, Etc.  Other than the Leases, the Seller has not
entered into any contract or agreement with respect to the Property which will
be binding on the Purchaser after the Closing other than contracts and
agreements being assumed by the Purchaser or which are terminable upon thirty
(30) days notice without payment of premium or penalty.

 

9

 

6.7.                                                 Not a Foreign Person.  The Seller is not a “foreign person” within
the meaning of Section 1445 of the United States Revenue Code of 1986, as
amended, and the regulations promulgated thereunder.

 

The
representations and warranties made in this Agreement by the Seller shall be
continuing and shall be deemed remade by the Seller as of the Closing Date,
with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Seller shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Purchaser gives the Seller written notice prior to the expiration of said
three hundred sixty (360) day period of such alleged breach with reasonable
detail as to the nature of such breach.

 

Except as
otherwise expressly provided in this Agreement or in any documents to be
delivered to the Purchaser at the Closing, the Seller has not made, and the
Purchaser has not relied on, any information, promise, representation or
warranty, express or implied, regarding the Property, whether made by the
Seller, on the Seller’s behalf or otherwise, including, without limitation, the
physical condition of the Property, the financial condition of the tenants
under the Leases, title to or the boundaries of the Property, pest control
matters, soil conditions, the presence, existence or absence of hazardous wastes,
toxic substances or other environmental matters, compliance with building,
health, safety, land use and zoning laws, regulations and orders, structural
and other engineering characteristics, traffic patterns, market data, economic
conditions or projections, and any other information pertaining to the Property
or the market and physical environments in which they are located.  The Purchaser acknowledges that (i) the
Purchaser has entered into this Agreement with the intention of relying upon
its own investigation or that of third parties with respect to the physical,
environmental, economic and legal condition of the Property and (ii) the
Purchaser is not relying upon any statements, representations or warranties of
any kind, other than those specifically set forth in this Agreement or in any
document to be delivered to the Purchaser at the Closing, made (or purported to
be made) by the Seller or anyone acting or claiming to act on the Seller’s
behalf.  The Purchaser has inspected the
Property and is fully familiar with the physical condition thereof and shall
purchase the Property in its “as is”, “where is” and “with all faults”
condition on the Closing 

 

10

 

Date.  Notwithstanding anything to the contrary
contained herein, in the event that any party hereto has actual knowledge of
the default of any other party (a “Known Default”), but nonetheless
elects to consummate the transactions contemplated hereby and proceeds to
Closing, then the rights and remedies of such non-defaulting party shall be
waived with respect to such Known Default upon the Closing and the defaulting
party shall have no liability with respect thereto.

 

SECTION 7.                          REPRESENTATIONS AND WARRANTIES OF PURCHASER.

 

To induce the
Seller to enter into this Agreement, the Purchaser represents and warrants to
the Seller as follows:

 

7.1.                                                 Status and Authority of the Purchaser.  The Purchaser is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

7.2.                                                 Action of the Purchaser.  The Purchaser has taken all necessary action
to authorize the execution, delivery and performance of this Agreement, and
upon the execution and delivery of any document to be delivered by the
Purchaser on or prior to the Closing Date, this Agreement and such document
shall constitute the valid and binding obligation and agreement of the
Purchaser, enforceable against the Purchaser in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting the
rights and remedies of creditors.

 

7.3.                                                 No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by the Purchaser, nor compliance with the terms
and provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon any property or assets of the
Purchaser pursuant to the terms of any indenture, mortgage, deed of trust,
note, evidence of indebtedness or any other agreement or instrument by which
the Purchaser is bound.

 

7.4.                                                 Litigation.  The Purchaser has received no written notice
that any investigation, action or proceeding is pending or threatened which
questions the validity of this Agreement or any action taken or to be taken
pursuant hereto.

 

11

 

The
representations and warranties made in this Agreement by the Purchaser shall be
continuing and shall be deemed remade by the Purchaser as of the Closing Date
with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Purchaser shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Seller gives the Purchaser written notice prior to the expiration of said
three hundred sixty (360) period of such alleged breach with reasonable detail
as to the nature of such breach.

 

SECTION 8.                          COVENANTS OF THE SELLER.

 

The Seller
hereby covenants with the Purchaser between the date of this Agreement and the
Closing Date as follows:

 

8.1.                                                 Approval of Agreements.  Not to enter into, modify, amend or terminate
any Lease or any other material agreement with respect to the Property, which
would encumber or be binding upon the Property from and after the Closing Date,
without in each instance obtaining the prior written consent of the Purchaser.

 

8.2.                                                 Operation of Property.  To continue to operate the Property
consistent with past practices.

 

8.3.                                                 Compliance with Laws, Etc.  To comply in all material respects with (i) all laws, regulations and other requirements
from time to time applicable of every governmental body having jurisdiction of
the Property, or the use or occupancy thereof, and (ii) all
material terms, covenants and conditions of all agreements affecting the
Property.

 

8.4.                                                 Compliance with Agreements.  To comply with each and every material term,
covenant and condition contained in the Leases and any other material document
or agreement affecting the Property and to monitor compliance thereunder
consistent with past practices.

 

8.5.                                                 Notice of Material Changes or Untrue
Representations.  Upon
learning of any material change in any condition with respect to the Property
or of any event or circumstance which makes any representation or warranty of
the Seller to the Purchaser under this Agreement untrue or misleading, promptly
to notify the Purchaser thereof.

 

12

 

8.6.                                                 Insurance.  To maintain, or cause to be maintained, all
existing property insurance relating to the Property.

 

SECTION 9.                            APPORTIONMENTS.

 

9.1.                                                 Real Property Apportionments.  (a)  The following items shall be
apportioned at the Closing as of the close of business on the day immediately
preceding the Closing Date:

 

(i)                                   annual rents,
operating costs, taxes and other fixed charges payable under the Leases;

 

(ii)                                percentage rents and
other unfixed charges payable under the Leases;

 

(iii)                             fuel, electric, water and
other utility costs;

 

(iv)                            municipal assessments and
governmental license and permit fees;

 

(v)                               Real estate taxes and
assessments other than special assessments, based on the rates and assessed
valuation applicable in the fiscal year for which assessed;

 

(vi)                            Water rates and charges;

 

(vii)                         Sewer and vault taxes and
rents; and

 

(viii)                      all other items of income and
expense normally apportioned in sales of property in similar situations in the
jurisdiction where the Property is located.

 

If any of the
foregoing cannot be apportioned at the Closing because of the unavailability of
the amounts which are to be apportioned, such items shall be apportioned on the
basis of a good faith estimate by the parties and reconciled as soon as
practicable after the Closing Date but, in any event, no later than one (1) year
after the Closing Date.

 

(b)                               If
there are water, gas or electric meters located at the Property, the Seller
shall obtain readings thereof to a date not more than thirty (30) days prior to
the Closing Date and the unfixed water rates and charges, sewer taxes and rents
and gas and electricity charges, if any, based thereon for the intervening time
shall be apportioned on the basis of such last readings.  If such readings are not obtainable by the
Closing Date, then, at the Closing, any water rates and charges, sewer 

 

13

 

taxes and rents and gas and electricity
charges which are based on such readings shall be prorated based upon the per
diem charges obtained by using the most recent period for which such readings
shall then be available.  Upon the taking
of subsequent actual readings, the apportionment of such charges shall be
recalculated and the Seller or the Purchaser, as the case may be, promptly shall
make a payment to the other based upon such recalculations.  The parties agree to make such final
recalculations within sixty (60) days after the Closing Date.

 

(c)                                If
any refunds of real property taxes or assessments, water rates and charges or
sewer taxes and rents shall be made after the Closing, the same shall be held
in trust by the Seller or the Purchaser, as the case may be, and shall first be
applied to the unreimbursed costs incurred in obtaining the same, then to any
required refunds to tenants under the Leases, and the balance, if any, shall be
paid to the Seller (for the period prior to the Closing Date) and to the
Purchaser (for the period commencing with the Closing Date).

 

(d)                               If,
on the Closing Date, the Property shall be or shall have been affected by any
special or general assessment or assessments or real property taxes payable in
a lump sum or which are or may become payable in installments of which the
first installment is then a charge or lien and has become payable, the Seller shall
pay or cause to be paid at the Closing the unpaid installments of such
assessments due and as of the Closing Date.

 

(e)                                No
insurance policies of the Seller are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made.

 

(f)                                  At
the Closing, the Seller shall transfer to the Purchaser the amount of all
unapplied security deposits held pursuant to the terms of the Leases.

 

(g)                               Brokerage
commissions, tenant improvement expenses and other amounts payable by the
Seller as landlord under Leases entered into by the Seller after the date
hereof, or in connection with the renewal or extension of any existing Lease,
shall be the responsibility of the Purchaser, and the Purchaser shall reimburse
the Seller at the Closing for all such brokerage commissions, tenant
improvement expenses and other amounts paid by the Seller prior to the
Closing.  The Purchaser shall receive a
credit at Closing for all unpaid brokerage commissions, tenant improvement
expenses and other amounts payable by the Seller as landlord under Leases
entered into by the Seller prior to the

 

14

 

date hereof.

 

(h)                               Amounts
payable after the date hereof on account of capital expenditures under the 2008
capital expenditure budget prepared as of March 31, 2008 (the “CapEx
Budget”) (including, without limitation, budgeted items for “building
improvements” and “development and redevelopment”), shall be the responsibility
of the Purchaser, and the Purchaser shall reimburse the Seller at the Closing
for all amounts paid by the Seller prior to the Closing on account of capital
expenditures under the CapEx Budget payable after the date hereof.  The Purchaser shall receive a credit at
Closing for all unpaid amounts payable on account of capital expenditures under
the CapEx Budget prior to the date hereof. 
A copy of the CapEx Budget has been previously provided to the
Purchaser.

 

(i)                                   If
a net amount is owed by the Seller to the Purchaser pursuant to this Section 9.1,
such amount shall be credited against the Purchase Price.  If a net amount is owed by the Purchaser to
the Seller pursuant to this Section 9.1, such amount shall be added
to the Purchase Price paid to the Seller.

 

(j)                                   If,
on the Closing Date, there are past due rents with respect to any Lease,
amounts received by the Purchaser with respect to such Lease after the Closing
Date shall be applied, first, to rents due or to become due during the
calendar month in which the Closing occurs, and then, to all other rents
due or past due in inverse order to the order in which they became due (i.e.,
first to arrearages most recently occurring, then to older arrearages).  In no event shall the Seller have any right
to take any action to collect any past due rents or other amounts following the
Closing; provided, however, the Purchaser shall use commercially
reasonable efforts to collect such past due rents and other amounts, except
that the Purchaser shall have no obligation to institute any legal action or
proceeding or otherwise enforce any of its rights and remedies under any Lease
in connection with such commercially reasonable efforts.

 

The provisions
of this Section 9.1 shall survive the Closing.

 

9.2.                                                 Closing Costs.

 

(a)                                The Purchaser shall pay
(i) the costs of closing and diligence in connection with the transactions
contemplated hereby (including, without limitation, all premiums, charges and
fees of the Title Company in connection with the title examination and
insurance policies to be obtained by the 

 

15

 

Purchaser, including affirmative
endorsements), (ii) all documentary, stamp, sales, intangible and other
transfer taxes and fees incurred in connection with the transactions
contemplated by this Agreement, and (iii) all state, city, county,
municipal and other governmental recording and filing fees and charges.

 

(b)                               Each
party shall pay the fees and expenses of its attorneys and other consultants.

 

SECTION 10.                     DAMAGE TO OR CONDEMNATION OF PROPERTY.

 

10.1.                                           Casualty.  If, prior to the Closing, the Property
is  materially destroyed or damaged by
fire or other casualty, the Seller shall promptly notify the Purchaser of such
fact.  In such event, the Purchaser shall
have the right to terminate this Agreement by giving notice to the Seller not
later than ten (10) days after the giving the Seller’s notice (and, if
necessary, the Closing Date shall be extended until one day after the
expiration of such ten-day period).  If
the Purchaser elects to terminate this Agreement as aforesaid, this Agreement
shall terminate and be of no further force and effect and no party shall have
any liability to the other hereunder.  If
less than a material part of the Property shall be affected by fire or other
casualty or if the Purchaser shall not elect to terminate this Agreement as
aforesaid, there shall be no abatement of the Purchase Price and the Seller
shall assign to the Purchaser at the Closing the rights of the Seller to the
proceeds, if any, under the Seller’s insurance policies covering the Property
with respect to such damage or destruction and there shall be credited against
the Purchase Price the amount of any deductible, any proceeds previously
received by Seller on account thereof and any deficiency in proceeds.

 

10.2.                                           Condemnation.  If, prior to the Closing, a material part of
the Property (including access or parking thereto), is taken by eminent domain
(or is the subject of a pending taking which has not yet been consummated), the
Seller shall notify the Purchaser of such fact promptly after obtaining
knowledge thereof and the Purchaser shall have the right to terminate this
Agreement by giving notice to the Seller not later than ten (10) days
after the giving of the Seller’s notice (and, if necessary, the Closing Date
shall be extended until one day after the expiration of such ten-day
period).  If the Purchaser elects to
terminate this Agreement as aforesaid, this Agreement shall terminate and be of
no further force and effect and no party shall have any liability to the other
hereunder.  If less than a material part
of the Property shall be affected or if the 

 

16

 

Purchaser shall not elect to terminate this Agreement as aforesaid, the
sale of the Property shall be consummated as herein provided without any
adjustment to the Purchase Price (except to the extent of any condemnation
award received by the Seller prior to the Closing) and the Seller shall assign
to the Purchaser at the Closing all of the Seller’s right, title and interest
in and to all awards, if any, for the taking, and the Purchaser shall be
entitled to receive and keep all awards for the taking of the Property or
portion thereof.

 

10.3.                                           Survival.  The parties’ obligations, if any, under this Section 10
shall survive the Closing.

 

SECTION 11.                     DEFAULT.

 

11.1.                                           Default by the Seller.  If the transaction herein contemplated fails
to close as a result of the default of the Seller hereunder, or the Seller
having made any representation or warranty herein which shall be untrue or
misleading in any material respect, or the Seller having failed to perform any
of the material covenants and agreements contained herein to be performed by
the Seller, the Purchaser may, as its sole remedy, either (x) terminate
this Agreement or (y) pursue a suit for specific performance.

 

11.2.                                           Default by the Purchaser.  If the transaction herein contemplated fails
to close as a result of the default of the Purchaser hereunder, or the
Purchaser having made any representation or warranty herein which shall be
untrue or misleading in any material respect, or the Purchaser having failed to
perform any of the covenants and agreements contained herein to be performed by
it, the Seller may terminate this Agreement (in which case, the Purchaser shall
reimburse the Seller for all of the fees, charges, disbursements and expenses
of the Seller’s attorneys).

 

SECTION 12.                     MISCELLANEOUS.

 

12.1.                                           Allocation of Liability.  It is expressly understood and agreed that
the Seller shall be liable to third parties for any and all obligations,
claims, losses, damages, liabilities, and expenses to the extent arising out of
events, contractual obligations, acts, or omissions of the Seller that occurred
in connection with the ownership or operation of the Property during the period
in which the Seller owned the Property prior to the Closing and the Purchaser
shall be liable to third parties for any and all obligations, claims, losses,
damages, liabilities and expenses to the extent arising out of events, 

 

17

 

contractual obligations, acts, or omissions of the Purchaser that occur
in connection with the ownership or operation of the Property during the period
in which the Purchaser owns the Property after the Closing.  The provisions of this Section 12.1
shall survive the Closing.

 

12.2.                                           Brokers.  Each of the parties hereto represents to the
other parties that it dealt with no broker, finder or like agent in connection
with this Agreement or the transactions contemplated hereby.  Each party shall indemnify and hold harmless
the other party and its respective legal representatives, heirs, successors and
assigns from and against any loss, liability or expense, including reasonable
attorneys’ fees, charges and disbursements arising out of any claim or claims
for commissions or other compensation for bringing about this Agreement or the
transactions contemplated hereby made by any other broker, finder or like
agent, if such claim or claims are based in whole or in part on dealings with
the indemnifying party.  The provisions
of this Section 12.2 shall survive the Closing.

 

12.3.                                           Publicity.  The parties agree that, except as otherwise
required by law and except for the exercise of any remedy hereunder, no party
shall, with respect to this Agreement and the transactions contemplated hereby,
contact or conduct negotiations with public officials, make any public
pronouncements, issue press releases or otherwise furnish information regarding
this Agreement or the transactions contemplated to any third party without the
consent of the other party, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

12.4.                                           Notices.  (a)  Any and all notices, demands,
consents, approvals, offers, elections and other communications required or
permitted under this Agreement shall be deemed adequately given if in writing
and the same shall be delivered either in hand, by telecopier with confirmed
receipt, or by mail or Federal Express or similar expedited commercial carrier,
addressed to the recipient of the notice, postpaid and registered or certified
with return receipt requested (if by mail), or with all freight charges prepaid
(if by Federal Express or similar carrier).

 

(b)                                 All notices required
or permitted to be sent hereunder shall be deemed to have been given for all
purposes of this Agreement upon the date of acknowledged receipt, in the case
of a notice by telecopier, and, in all other cases, upon the date of receipt or
refusal, except that whenever under this Agreement 

 

18

 

a notice is either received on a day which is
not a Business Day or is required to be delivered on or before a specific day
which is not a Business Day, the day of receipt or required delivery shall
automatically be extended to the next Business Day.

 

(c)                                All
such notices shall be addressed,

 

if to the Seller, to:

 

Hub Properties Trust

c/o HRPT Properties Trust

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. John C. Popeo

[Telecopier No. (617) 928-1305]

 

with a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, 34th Floor

Los Angeles, California 90071

Attn:  Meryl K. Chae, Esq.

[Telecopier No. (213) 621-5035]

 

if to the Purchaser, to:

 

Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn:  Mr. David J. Hegarty

[Telecopier No. (617) 796-8349]

 

with a copy to:

 

Sullivan & Worcester LLP

One Post Office Square

Boston, Massachusetts  02109

Attn:  Nancy S. Grodberg, Esq.

[Telecopier No. (617) 338-2880]

 

(d)                               By
notice given as herein provided, the parties hereto and their respective
successor and assigns shall have the right from time to time and at any time
during the term of this Agreement to change their respective addresses
effective upon receipt by the other parties of such notice and each shall have
the right to specify as its address any other address within the United States
of America.

 

19

 

12.5.                                           Waivers, Etc.  Subject to the terms of the last paragraph of
Section 6, any waiver of any term or condition of this Agreement,
or of the breach of any covenant, representation or warranty contained herein,
in any one instance, shall not operate as or be deemed to be or construed as a
further or continuing waiver of any other breach of such term, condition,
covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to
enforce or require performance of any provision hereof operate as a waiver of
or affect in any manner such party’s right at a later time to enforce or
require performance of such provision or any other provision hereof.  This Agreement may not be amended, nor shall
any waiver, change, modification, consent or discharge be effected, except by an
instrument in writing executed by or on behalf of the party against whom
enforcement of any amendment, waiver, change, modification, consent or
discharge is sought.

 

12.6.                                           Assignment; Successors and Assigns.  Subject to Section 12.15, this
Agreement and all rights and obligations hereunder shall not be assignable,
directly or indirectly, by any party without the written consent of the other,
except that the Purchaser may assign this Agreement to any entity wholly owned,
directly or indirectly, by the Purchaser; provided, however,
that, in the event this Agreement shall be assigned to any one or more entities
wholly owned, directly or indirectly, by the Purchaser, the Purchaser named
herein shall remain liable for the obligations of the “Purchaser” hereunder.  This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective legal
representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

12.7.                                           Severability.  If any provision of this Agreement shall be
held or deemed to be, or shall in fact be, invalid, inoperative or
unenforceable as applied to any particular case in any jurisdiction or
jurisdictions, or in all jurisdictions or in all cases, because of the conflict
of any provision with any constitution or statute or rule of public policy
or for any other reason, such circumstance shall not have the effect of
rendering the provision or provisions in question invalid, inoperative or
unenforceable in any other jurisdiction or in any other case or circumstance or
of rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable to the extent that such other provisions are not

 

20

 

themselves
actually in conflict with such constitution, statute or rule of public
policy, but this Agreement shall be reformed and construed in any such
jurisdiction or case as if such invalid, inoperative or unenforceable provision
had never been contained herein and such provision reformed so that it would be
valid, operative and enforceable to the maximum extent permitted in such
jurisdiction or in such case.

 

12.8.                                           Counterparts, Etc.  This Agreement may
be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  This Agreement constitutes
the entire agreement of the parties hereto with respect to the subject matter
hereof and shall supersede and take the place of any other instruments
purporting to be an agreement of the parties hereto relating to the subject
matter hereof.

 

12.9.                                           Performance on Business Days.  In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a
Business Day, the time for payment or performance shall automatically be
extended to the first Business Day following such date.

 

12.10.                                     Attorneys’ Fees.  If any lawsuit or arbitration or other legal
proceeding arises in connection with the interpretation or enforcement of this
Agreement, the prevailing party therein shall be entitled to receive from the
other party the prevailing party’s costs and expenses, including reasonable
attorneys’ fees incurred in connection therewith, in preparation therefor and
on appeal therefrom, which amounts shall be included in any judgment therein.

 

12.11.                                     Section and Other Headings.  The headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or interpretation
of this Agreement.

 

12.12.                                     Time of Essence.  Time shall be of the essence with respect to
the performance of each and every covenant and obligation, and the giving of
all notices, under this Agreement.

 

12.13.                                     Governing Law.  This Agreement shall be interpreted,
construed, applied and enforced in accordance with the laws of The Commonwealth
of Massachusetts.

 

12.14.                                     Arbitration.  Any party hereto may elect to submit any
dispute hereunder that has an amount in controversy in excess of $250,000 to
arbitration hereunder.  Any such 

 

21

 

arbitration shall be conducted in Boston, Massachusetts in accordance
with the Commercial Arbitration Rules of the American Arbitration
Association then pertaining and the decision of the arbitrators with respect to
such dispute shall be binding, final and conclusive on the parties.

 

In the event
any party hereto shall elect to submit any such dispute to arbitration
hereunder, the Seller and the Purchaser shall each appoint and pay all fees of
a fit and impartial person as arbitrator with at least ten (10) years’
recent professional experience in the general subject matter of the
dispute.  Notice of such appointment
shall be sent in writing by each party to the other, and the arbitrators so
appointed, in the event of their failure to agree within thirty (30) days after
the appointment of the second arbitrator upon the matter so submitted, shall
appoint a third arbitrator.  If either
the Seller or the Purchaser shall fail to appoint an arbitrator, as aforesaid,
for a period of ten (10) days after written notice from the other party to
make such appointment, then the arbitrator appointed by the party having made
such appointment shall appoint a second arbitrator and the two (2) so
appointed shall, in the event of their failure to agree upon any decision
within thirty (30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses incident to the proceedings shall be borne equally between the Seller
and the Purchaser, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for by the
parties, shall be paid by the respective party engaging such counsel or calling
or engaging such witnesses.

 

The decision
of the arbitrators shall be rendered within thirty (30) days after appointment
of the third arbitrator.  Such decision
shall be in writing and in duplicate, one counterpart thereof to be delivered
to the Seller and one to the Purchaser. 
A judgment of a court of competent jurisdiction may be entered upon the
award of the arbitrators in accordance with the rules and statutes
applicable thereto then obtaining.

 

12.15.                                     Like Kind Exchange.  At
either party’s request, the non-requesting party will take all actions
reasonably requested 

 

22

 

by the requesting party in order to
effectuate all or any part of the transactions contemplated by this Agreement
as a forward or reverse like-kind exchange for the benefit of the requesting
party in accordance with Section 1031 of the Internal Revenue Code and, in the
case of a reverse exchange, Rev. Proc. 2000-37, including executing an
instrument acknowledging and consenting to any assignment by the requesting
party of its rights hereunder to a qualified intermediary or an exchange accommodation
titleholder.  In furtherance of the
foregoing and notwithstanding anything contained in this Agreement to the
contrary, the requesting party may assign its rights under this Agreement to a
“qualified intermediary” or an “exchange accommodation titleholder” in order to
facilitate, at no cost or expense to the other, a forward or reverse like-kind
exchange under Section 1031 of the Internal Revenue Code; provided, however,
that such assignment will not relieve the requesting party of any of its obligations
hereunder.  The non-requesting party will
also agree to issue all closing documents, including the deed, to the
applicable qualified intermediary or exchange accommodation titleholder if so
directed by the requesting party prior to Closing.  Notwithstanding the foregoing, in no event
shall the non-requesting party incur or be subject to any liability that is not
otherwise provided for in this Agreement.

 

12.16.                                     Recording.  This Agreement may not be recorded without
the prior written consent of both parties.

 

12.17.                                     Non-liability of Trustees of Seller.  The Declaration of Trust of Hub Properties
Trust, a copy of which is duly filed with the Department of Assessments and
Taxation of the State of Maryland, provides that the name “Hub Properties Trust”
refers to the trustees under such Declaration of Trust collectively as
trustees, but not individually or personally, and that no trustee, officer,
shareholder, employee or agent of Hub Properties Trust shall be held to any
personal liability, jointly or severally, for any obligation or, or claim
against, Hub Properties Trust.  All
persons dealing with the Seller, in any way shall look only to the assets of
the Seller for the payment of any sum or the performance of any obligation.

 

12.18.                                     Non-liability of Trustees of Purchaser.  The Declaration of Trust of Senior Housing
Properties Trust, a copy of which is duly filed with the Department of
Assessments and Taxation of the State of Maryland, provides that the name “Senior
Housing Properties Trust” refers to the trustees under such Declaration of
Trust collectively as trustees, but not individually or personally, and that no
trustee, officer, shareholder, employee or agent of Senior Housing Properties 

 

23

 

Trust shall be held to any personal liability, jointly or severally,
for any obligation or, or claim against, Senior Housing Properties Trust.  All persons dealing with the Purchaser, in
any way shall look only to the assets of the Purchaser for the payment of any
sum or the performance of any obligation.

 

12.19.                                     Waiver and Further Assurances.  The Purchaser hereby acknowledges that it is
a sophisticated purchaser of real properties and that it is aware of all
disclosures the Seller is or may be required to provide to the Purchaser in
connection with the transactions contemplated hereby pursuant to any law, rule or
regulation (including those of Massachusetts and those of the state in which
the Property is located).   The Purchaser
hereby acknowledges that, prior to the execution of this Agreement, the
Purchaser has had access to all information necessary to acquire the Property
and the Purchaser acknowledges that the Seller has fully and completely
fulfilled any and all disclosure obligations with respect thereto.  The Purchaser hereby fully and completely
discharges the Seller from any further disclosure obligations whatsoever
relating to the Property.  In addition to
the actions recited herein and contemplated to be performed, executed, and/or
delivered by the Seller and the Purchaser, the Seller and the Purchaser agree
to perform, execute and/or deliver or cause to be performed, executed and/or
delivered at the Closing or after the Closing any and all such further acts,
instruments, deeds and assurances as may be reasonably required to establish,
confirm or otherwise evidence the Seller’s satisfaction of any disclosure
obligations or to otherwise consummate the transactions contemplated hereby.

 

12.20.                                     State Specific Provisions.  The provisions set forth in Schedule D
hereto are hereby incorporated herein by reference as if fully set forth
herein.

 

[Signature
page follows.]

 

24

 

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed as a sealed instrument as
of the date first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
  HUB PROPERTIES TRUST, a 

  Maryland real estate investment 

  
	
   

  	
  trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  	
   

  
	
   

  	
  SENIOR HOUSING PROPERTIES TRUST,  a

  
	
   

  	
  Maryland real estate investment

  
	
   

  	
  trust

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Hegarty

  
	
   

  	
   

  	
  David J. Hegarty

  
	
   

  	
   

  	
  President

  

 

25

 

SCHEDULE A

 

Land

 

 

SCHEDULE B

 

Rent Roll

 

 

SCHEDULE C

 

Form of
Deed

 

 

SCHEDULE D

 

State Specific
Provisions

 

Certain Schedules to this
agreement have been omitted. The Company agrees to furnish supplementally
copies of any of the omitted Schedules to the Securities and Exchange
Commission upon request.

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