Document:

exv10w40

 

Exhibit 10.40

EMPLOYEE SERVICES AGREEMENT

     AGREEMENT, dated as of November 1, 2004 by and among GXS Corporation, a
Delaware corporation (“GXS”), and G International, Inc., a Delaware corporation
(“G International”). Each of GXS and G International are sometimes hereinafter
referred to as a “Party” and collectively as the “Parties”.

W I T N E S S E T H:

     WHEREAS, International Business Machines Corporation, a New York
corporation (“IBM”), and G International have entered into an agreement dated
as of October 13, 2004 (collectively with any related agreements, the
“Acquisition Agreements”) providing for the transfer by IBM to G International
and its affiliated entities of certain assets and operations constituting IBM’s
Electronic Data Interchange and Business Exchange Services Business;

     WHEREAS, IBM and Redux Acquisition Holdings LLC, a Delaware limited
liability company (“Redux Holdings”), have entered into a Stock Purchase
Agreement dated October 13, 2004 pursuant to which Redux Holdings has agreed to
acquire all of the outstanding shares of common stock of G International;

     WHEREAS, G International and GXS both have the same ultimate parent
company in Francisco Partners L.P. and are therefore affiliated entities;

     WHEREAS, Francisco Partners L.P. has expressed its present desire and
intent to effect a merger of G International and a subsidiary of GXS within six
months of the date hereof, it is the present desire and intent of the boards of
directors of G International and GXS, the “Company
Boards”) that G
International be merged with a subsidiary of GXS and the Company Boards have
determined to pursue such merger;

     WHEREAS, the Company Boards have determined that prior to the
effectiveness of such merger it is in the best interest of both G International
and GXS that the management of GXS provide management services to G
International and other personnel of GXS provide support services with respect
to the business and operations of G International;

     WHEREAS, the Parties wish by this Agreement to establish certain general
terms and conditions for the management and personnel services to be

 

 

provided by GXS to G International from the date hereof until the
effectiveness of such merger or until such earlier time as this Agreement may
terminate in accordance with its terms.

     NOW THEREFORE, in consideration of the premises and the mutual covenants
and agreements contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

ARTICLE 1

Definitions

     “Business Day” means any day other than a Saturday, a Sunday or a day on
which banks in New York City are authorized or obligated by law or executive
order to close.

     “GXS Entity” means GXS or any parent or subsidiary entity of GXS.

     “Direct Payroll Costs” shall mean, with respect to any Leased Employee,
the gross amount of all salaries and wages, employee benefit program costs and
other compensation with respect to such Leased Employee and all applicable
fees, taxes, and other amounts owed to third parties as a result of the
employment of such Leased Employee, including federal, state and local income
tax withholding, contributions pursuant to the Federal Insurance Contribution
Act and Federal Unemployment Tax Act, workers’ compensation, unemployment
insurance, other withholding or other payments required by federal, state or
local law or regulations, and all payments to applicable pension and welfare
plans and other employee fringe benefit outlays, including but not limited to,
direct premiums to Plans and claims for self-funded plans on an individual
level or, if required by the design of the relevant Plan, such benefit costs as
GXS reasonably calculates.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended.

     “G International Entity” means G International or any parent or subsidiary
entity of G International.

     “Indirect Payroll Costs” shall mean with respect to any Leased Employee,
all reasonable costs, other than Direct Payroll Costs but including reasonable
costs incurred or accrued under Section 2.02 hereof, associated with the
compensation of or benefits provided to such Leased Employee, including
allocable general administrative and overhead costs arising in connection with
the employment and compensation of such Leased Employee, as reasonably
determined by GXS using its usual methods of cost accounting.

2

 

     “Leased Employee” means any employee of a GXS Entity who provides services
to a G International Entity hereunder pursuant to mutual agreement between the
GXS Entity and the G International Entity. The Leased Employees may, subject
to mutual agreement of the Parties, include the Chief Executive Officer of GXS
and other senior executives and managers of GXS as well as other personnel of
the GXS Entities. Subject to mutual agreement of the Parties, the G
International Entities may appoint Leased Employees as officers of the G
International Entities (including the appointment of one or more officers of
GXS as the Chief Executive Officer of G International and other G International
Entities) and may appoint Leased Employees to other management and staff
positions, roles and titles with the G International Entities.

     “Out-of-Pocket Expenses” means, with respect to any Leased Employee, any
actual out-of-pocket expenses that are incurred by such Leased Employee or by a
GXS Entity in the course of such Leased Employee’s performance of his or her
duties and paid or reimbursed by such GXS Entity, as reasonably determined by
GXS using its usual methods of cost accounting.

     “Payroll Costs” means Direct Payroll Costs, Indirect Payroll Costs,
Out-of-Pocket Expenses and any other fees and expenses reasonably allocable to
the services provided by the Leased Employees to the G International Entities.
For any Leased Employee, the Payroll Costs may consist of a portion of Direct
Payroll Costs, Indirect Payroll Costs and Out-of-Pocket Expenses associated
with such Leased Employee as reasonably determined by GXS in good faith to
reflect an equitable sharing of the costs associated with such Leased Employee
based on the facts and circumstances, including, without limitation, the time
spent by the Leased Employee on matters relating to the business of the G
International Entities.

     “Payroll Period” shall mean the following designated periods. The first
Payroll Period shall begin on the date hereof and end on December 31, 2004.
Thereafter each Payroll Period shall be a period of three consecutive calendar
months.

     “Person” means an individual, a corporation, a partnership, a limited
liability company, an association, a trust or other entity or organization.

     “Plans” means all employee benefit plans, as defined in Section 3(3) of
ERISA, and all other plans, policies, and arrangements which a GXS Entity
maintains on behalf of or makes available to the Leased Employees on the date
hereof or makes available thereafter to the Leased Employees.

3

 

ARTICLE 2

Agreement To Provide Leased Employee Services And Other Services

     Section 2.01.
Leased Employee Services. Upon the terms and subject to
the conditions contained herein, GXS and G International agree that GXS shall,
and shall cause the other GXS Entities to, use commercially reasonable efforts
to make available, and that G International, and the other G International
Entities, shall engage, the Leased Employees as staff of G International
Entities on a contract basis. The contract program shall operate as follows:

     (a) Leased Employees shall remain employees of the applicable GXS Entity
and shall remain on the payroll of such applicable GXS Entity, but will perform
services for the G International Entities. The G International Entities shall
direct and control the Leased Employees in the manner and method of performing
services for the G International Entities; provided that the G International
Entities shall not direct any Leased Employee to act or omit to act where such
act or omission would violate applicable law or sound and prudent industry
practices

     (b) GXS shall (or shall cause the applicable GXS Entity to) continue to
pay the compensation, withhold and pay taxes and make other deductions and, to
the extent permitted by the Plans and by applicable law, provide the benefits
to which the Leased Employees are entitled pursuant to the Plans, in each case,
in a timely manner and consistent with past practice. The relevant GXS Entity
shall determine in its sole discretion the compensation and benefits that are
provided to each Leased Employee, provided that it shall notify G International
in writing in advance of any change in such compensation or benefits that would
increase materially the Payroll Costs associated with any Leased Employee.

     Section 2.02. Additional Services. GXS shall use commercially
reasonable efforts to supply, whether directly or by contract with other
parties, personnel, payroll and human resource services related to the
provision of services by the Leased Employees to the G International Entities.

     Section 2.03. Records. The GXS Entities shall maintain books and
records relating to the Leased Employees in a manner consistent with normal
practice of the GXS Entities.

     Section 2.04.
Limitation on GXS’s Obligations. Notwithstanding anything
herein to the contrary, no provision of this Agreement shall obligate GXS to
provide Leased Employee Services pursuant to Section 2.01 or other services
pursuant to Section 2.02 if GXS reasonably determines, in its discretion, that
to do so would (i) interfere with the conduct of its business in the ordinary
course, (ii) violate any applicable law, rule, regulation, judgement,
injunction order or decree, (iii) constitute a default or give rise to any
right of termination, cancellation or acceleration of any right to which any
GXS Entity or to a loss of any benefit to which any GXS Entity is entitled
under any provisions of any

4

 

agreement or other
instrument binding on any GXS Entity or (iv) violate any obligation or
duty owed by any leased employee to any GXS Entity. In furtherance of the
foregoing, if any term or provision of this agreement or the performance
thereof would result in any of the foregoing, the Parties agree that any such
provision shall be modified accordingly so as to not result in any of the
foregoing.

ARTICLE 3

Expenses

     Section 3.01. Reimbursement Of Payroll Costs. G International will pay
(or cause the relevant G International Entity to pay) to GXS all Payroll Costs.

     Section 3.02. Method Of Reimbursement. GXS will supply G International
with monthly invoices setting forth the Payroll Costs for the preceding month,
plus an administrative fee equal to 5% of the aggregate Payroll Costs reflected
on such invoice. Within 15 Business Day after receiving each such invoice G
International shall (or shall cause the relevant G International Entity to)
wire transfer to a GXS bank account designated by GXS immediately available
funds equal to the amount set forth in such invoice.

ARTICLE 4

Termination Of Leased Employee Services

     Section 4.01. Termination By The Applicable G International Entity.
Each G International Entity may, in its sole discretion, terminate the services
provided to it by any Leased Employee at any time by providing reasonable
advance written notice to GXS.

     Section 4.02.
Termination By The Applicable GXS Entity. Each GXS Entity
may, in its sole discretion, terminate the provision of services by any Leased
Employee on behalf of any and all G International Entities at any time by
providing reasonable advance written notice to G International. As of the date
of such termination, or as of the date of the termination of any Leased
Employee’s employment with the GXS Entities for any other reason, such Leased
Employee shall cease to be a Leased Employee.

ARTICLE 5

Indemnification

     Section 5.01. General.

5

 

     (a) Neither GXS nor any GXS Entity shall indemnify or have any liability
to any G International Entity for any Loss (as hereinafter defined), including,
without any limitation, the following: (i) the availability or continued
employment of any Leased Employee or (ii) the performance of services by any
Leased Employee, except to the extent that any such Loss results from the
willful misconduct or gross negligence of GXS or any GXS Entity. GXS makes no
warranties or representations concerning the services of the Leased Employees,
whether express or implied.

     (b) G International agrees to indemnify, defend and hold harmless GXS and
each GXS Entity, and if applicable, their respective directors, officers,
members, shareholders, partners, attorneys, accountants, agents and their
heirs, successors and assigns (the “Indemnitees”) from, against and in respect
of any damages, claims, losses, charges, actions, suits, proceedings,
deficiencies, taxes, interest, penalties and reasonable costs and expenses
(including without limitation reasonable attorney’s fees and disbursements)
(“Loss”), imposed on, sustained, incurred or suffered by or asserted against
any of Indemnitees relating to or arising out of the performance of this
Agreement including, but not limited to, any claims by, or liabilities or
obligations to, any Leased Employee or other third party or otherwise arising
out of, or resulting from, the provision of services by such Leased Employee
hereunder, and any claim, charge, action, suit or proceeding brought by any
Leased Employee under any federal, state or local employment law, except to the
extent that any such Loss results from the willful misconduct or gross
negligence of GXS or any GXS Entity.

     Section 5.02. Workers Compensation. Without limiting the provisions of
Section 5.01, G International hereby agrees to indemnify, defend and hold
harmless the Indemnitees for any workers’ compensation claims liability GXS or
any GXS Entity incurs with respect to a Leased Employee arising out of any
injury or condition incurred during or caused by work performed on behalf of
any G International Entity; it being understood that to the extent GXS or the
applicable GXS Entity is compensated by a third party with respect to such
liability, or the liability is assumed by a third party, the amount owed by G
International, to GXS Indemnitees with respect to such liability shall be
offset by the amount of such compensation or assumption.

     Section 5.03. Notice Of Claims. GXS agrees to notify G International,
promptly in writing upon the receipt by GXS or any GXS Entity of notice of any
pending or threatened claim or proceeding, including without limitation any
audit or assessment with respect to taxes, which arise out of, in connection
with or result from the activities contemplated hereby for which G
International has agreed to indemnify the Indemnitees. GXS further agrees to
reasonably cooperate and assist and to instruct its employees, counsel and
advisors to reasonably assist G International and to assist G International in
the defense of such claims or proceedings. G International, shall be entitled
to participate, at its expense, in the defense of its interest in any such
claim or proceeding.

6

 

ARTICLE 6

Miscellaneous

     Section 6.01. Notices. All notice, instruction, direction or demand
under the terms of this Agreement required to be in writing shall be duly given
upon delivery, if delivered by hand, facsimile transmission, or mail, to the
following addresses:

	 	 	If to the G International, to:
	 
	 	 	[                                      ]
	 
	 	 	If to GXS, to:
	 
	 	 	GXS Corporation

[                                        ]

     or to such other address or telecopier number as such party may hereafter
specify for the purpose by notice to the other parties. All such notices,
requests and other communications shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5 p.m. in the place of
receipt and such day is a Business Day in the place of receipt. Otherwise, any
such notice, request or communication shall be deemed not to have been received
until the next succeeding Business Day in the place of receipt.

     Section 6.02. Amendment; Waiver.

     (a) Any provision of this Agreement may be amended or waived if, and only
if, such amendment or waiver is in writing and signed, in the case of an
amendment, by both Parties hereto, or in the case of a waiver, by the Party or
Parties against whom the waiver is to be effective.

     (b) Except as expressly set forth herein, no failure or delay by any Party
in exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege. Except as otherwise provided herein, the rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

     Section 6.03. Entire Agreement. This Agreement contains the entire
agreement between the Parties hereto concerning the respective obligations of
the Parties with respect to the employment of the Leased Employees, and
supersede all prior agreements and understandings, oral or written, with
respect to such matters.

7

 

     Section 6.04. Successors and Assigns. The provisions of this Agreement
shall be binding upon and inure to the benefit of the Parties hereto and their
respective successors. This Agreement is for the sole benefit of the Parties
hereto and, except as otherwise contemplated herein, nothing herein expressed
or implied shall give or be construed to give any person or entity, other than
the Parties hereto, any legal or equitable rights hereunder.

     Section 6.05. Governing Law. This Agreement shall be construed and
interpreted in accordance with and governed by the law of the State of New York
without giving effect to the principles of conflicts of laws thereof.

     Section 6.06. Dispute Resolution. In the event there is a dispute
between the Parties regarding this Agreement or the performance by a Party of
its obligations hereunder, the disputing Party shall send a notice to the other
Party describing the dispute or issue in reasonably sufficient detail to allow
the other Party to investigate and, if applicable, take the actions
contemplated by the dispute notice, and the Parties shall promptly meet and
attempt to resolve the dispute in good faith. If the Parties are unable to
resolve the dispute pursuant to the foregoing, each Party shall have all rights
and remedies available to it at law or in equity with respect to such dispute.

     Section 6.07. Counterparts; Effectiveness. This Agreement may be signed
in two counterparts, each of which shall be deemed an original.

     Section 6.08. Term, Termination. This Agreement shall become effective
as of the date hereof and shall remain in force until the expiration of the
second Payroll Period unless terminated by either Party upon 30 days’ prior
written notice to the other or by mutual written consent of the Parties. It
may be extended for an additional Payroll Period upon mutual agreement of the
Parties. In no event shall the termination or expiration of this Agreement
affect the rights or obligation of either Party with respect to (i) Article 5,
(ii) Section 6.05 or (iii) any obligation of G International for Payroll Costs
relating to periods prior to such termination, each of which shall survive the
termination or expiration of this Agreement.

     Section 6.09. Headings. Headings are for ease of reference only and
shall not form a part of this Agreement.

     Section 6.10. Severability. In case any one or more of the provisions
or part of a provision contained in this Agreement shall for any reason be held
to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall be deemed not to affect any other provision or part of a
provision of this Agreement, but the Agreement shall be reformed and construed
as if such provision or part of a provision held to be invalid, illegal or
unenforceable had never been contained herein and such provision or part
reformed so that it would be valid, legal and enforceable to the maximum extent
possible.

8

 

     
    IN WITNESS WHEREOF, the parties executed and delivered by their duly
authorized officers as of the date first written above.

	 	 	 	 	 
	 	 	G INTERNATIONAL, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Thomas L. Thomas
	

	 	 	 	

	

	 	 	 	Name: Thomas L. Thomas
	

	 	 	 	Title: Senior Vice President and General Manager
	 
	 	 	 	 
	 	 	GXS CORPORATION
	 
	 	 	 	 
	

	 	By:
	 	/s/ Louis Salamone, Jr.
	

	 	 	 	

	

	 	 	 	Name: Louis Salamone, Jr.
	

	 	 	 	Title: Senior Vice President and Chief Financial Officer

9exv10w1

 

EXHIBIT 10.1

THIS FORM HAS IMPORTANT LEGAL CONSEQUENCES AND THE PARTIES SHOULD CONSULT LEGAL
AND TAX OR OTHER COUNSEL BEFORE SIGNING.

CONTRACT TO BUY AND SELL REAL ESTATE

(COMMERCIAL)

Date: September 14, 2004

     1. Agreement. Buyer agrees to buy and the undersigned Seller agrees to
sell the Property defined below on the terms and conditions set forth in this
contract.

     2. Defined Terms.

         a. Buyer. Buyer, Carrier Access Corporation, or its assigns, will take
title to the real property described below.

         b. Property. The Property is the following legally described real estate:
Lot 2, Cottonwood Farms Filing No. 1 Subdivision in Boulder County, Colorado in
the County of Boulder, Colorado, commonly known as No. 5395 Pearl Parkway,
Boulder, Colorado 80301 together with the interests, easements, rights,
benefits, improvements and attached fixtures appurtenant thereto, all interest
of Seller in vacated streets and alleys adjacent thereto, except as herein
excluded.

         c. Dates and Deadlines.

	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Item	 	 	 	 	 	 	 	 	 	 
	 	No.	 	 	Reference	 	 	Event	 	 	Date or Deadline	 
	 	1

	 	 	§ 7a
	 	 	Title Deadline
	 	 	September 20, 2004	 
	 	2

	 	 	§ 7a
	 	 	Survey Deadline
	 	 	September 30, 2004	 
	 	3

	 	 	§ 7b
	 	 	Document Request Deadline
	 	 	September 17, 2004	 
	 	4

	 	 	§ 8a
	 	 	Title Objection Deadline
	 	 	September 30, 2004	 
	 	5

	 	 	§ 8b
	 	 	Off-Record Matters Deadline
	 	 	September 20, 2004	 
	 	6

	 	 	§ 8b
	 	 	Off-Record Matters Objection Deadline
	 	 	September 30, 2004	 
	 	7
	 	 	 	 	 	 	 	 	 	 
	 	8

	 	 	§ 10a
	 	 	Inspection Objection Deadline
	 	 	September 20, 2004*	 
	 	9

	 	 	§ 10b
	 	 	Resolution Deadline
	 	 	September 23, 2004**	 
	 	10

	 	 	§ 11
	 	 	Closing Date
	 	 	October 15, 2004	 
	 	11

	 	 	§ 16
	 	 	Possession Date
	 	 	October 15, 2004	 
	 	12

	 	 	§ 16
	 	 	Possession Time
	 	 	Noon	 
	 	13

	 	 	§ 28
	 	 	Acceptance Deadline Date
	 	 	September 16, 2004	 
	 	14

	 	 	§ 28
	 	 	Acceptance Deadline Time
	 	 	5:00 p.m.	 
	 

 

 

	*	 	Buyer shall have until 9/30/04 to inspect for a Phase I environmental study.

	**	 	Buyer shall have until October 5, 2004 for resolution deadline for a Phase I
environmental study.

         d. Attachments. The following exhibits, attachments and addenda are a
part of this contract:                              
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
               .

         e. Applicability of Terms. A check or similar mark in a box means that
such provision is applicable. The abbreviation “N/A” means not applicable.

     3. Inclusions and Exclusions.

         a. The Purchase Price includes the following items (Inclusions):

              (1) Fixtures. If attached to the Property on the date of this contract,
lighting, heating, plumbing, ventilating, and air conditioning fixtures, inside
telephone wiring and connecting blocks/jacks, plants, mirrors, floor coverings,
intercom systems, sprinkler systems and controls, and                              
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
               .

              (2) Other Inclusions. If on the Property whether attached or not on the
date of this contract: storm windows, storm doors, window and porch shades,
awnings, blinds, screens, window coverings, curtain rods, drapery rods, storage
sheds, and all keys. Check box if included: o Smoke/Fire Detectors, o Security
Systems; and                              
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
                                             
               .

              (3) Trade Fixtures. With respect to trade fixtures, Seller and Buyer
agree as follows: N/A.

         b. Instruments of Transfer. The Inclusions are to be conveyed at Closing
free and clear of all taxes, liens and encumbrances, except as provided in §
12. Conveyance shall be by bill of sale or other applicable legal
instrument(s).

         c. Exclusions. The following attached fixtures are excluded from this
sale: None.

     4. Purchase Price and Terms. The Purchase Price set forth below shall be
payable in U.S. Dollars by Buyer as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Item	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	No.	 	 	Reference	 	 	Item	 	 	Amount	 	 	Amount	 
	 	1

	 	 	§ 4
	 	 	Purchase Price
	 	 	$	7,000,000.00	 	 	 	 	 	 	 
	 	2

	 	 	§ 4a
	 	 	Earnest Money
	 	 	 	 	 	 	 	$	0.00	 	 
	 	3

	 	 	§ 4b
	 	 	New Loan	 	 	 	 	 	 	 	 	 	 	 
	 

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	 	Item	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	No.	 	 	Reference	 	 	Item	 	 	Amount	 	 	Amount	 
	 	4

	 	 	§ 4c
	 	 	Assumption Balance	 	 	 	 	 	 	 	 	 	 	 
	 	5

	 	 	§ 4d
	 	 	Seller or Private Financing	 	 	 	 	 	 	 	 	 	 	 
	 	6

	 	 	§ 4e
	 	 	Cash at Closing	 	 	 	 	 	 	 	 	 	 	 
	 	7

	 	 	 	 	 	TOTAL
	 	 	$	7,000,000.00	 	 	 	$	7,000,000.00	 	 
	 

         a. Earnest Money. No Earnest Money is to be paid to assure Buyer’s
performance provided the Closing is held as provided herein. In the event
Earnest Money is required, in the form of Good Funds, it will be part payment
of the Purchase Price and shall be payable to and held by Land America
Commonwealth Title Company (“Title Company”), in its trust account, on behalf
of both Seller and Buyer. The parties authorize delivery of the Earnest Money
deposit to the Closing Company, if any, at or before Closing.

         b. New Loan. N/A

         c. Assumption. N/A

         d. Seller or Private Financing. N/A

         e. Cash at Closing. All amounts paid by Buyer at Closing including Cash
at Closing, plus Buyer’s closing costs, shall be in funds which comply with all
applicable Colorado laws, which include cash, electronic transfer funds,
certified check, savings and loan teller’s check and cashier’s check (Good
Funds).

     5. Financing Conditions and Obligations. N/A

     6. Appraisal Provisions. N/A

     7. Evidence of Title.

         a. Evidence of Title; Survey. On or before Title Deadline (§ 2c), Seller
shall cause to be furnished to Buyer, at Seller’s expense, a current commitment
for owner’s title insurance policy in an amount equal to the Purchase Price or
if this box is checked, o An Abstract of title certified to a current date. If
a title insurance commitment is furnished, it x Shall o Shall Not commit to
delete or insure over the standard exceptions which relate to:

              (1) parties in possession,

              (2) unrecorded easements,

              (3) survey matters,

              (4) any unrecorded mechanics’ liens,

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              (5) gap period (effective date of commitment to date deed is recorded),
and

              (6) unpaid taxes, assessments and unredeemed tax sales prior to the year
of Closing.

     Any additional premium expense to obtain this additional coverage shall be
paid by x Buyer o Seller. The cost of any improvement location certificate or
survey desired by Buyer shall be paid by x Buyer o Seller. The improvement
location certificate or survey shall be obtained by Buyer on or before Survey
Deadline (§ 2c). Seller shall cause the title insurance policy to be delivered
to Buyer as soon as practicable at or after Closing.

         b. Copies of Exceptions. On or before Title Deadline (§ 2c), Seller, at
Seller’s expense, shall furnish to Buyer, (1) a copy of any plats,
declarations, covenants, conditions and restrictions burdening the Property,
and (2) if a title insurance commitment is required to be furnished, and if
this box is checked x Copies of any Other Documents (or, if illegible, summaries
of such documents) listed in the schedule of exceptions (Exceptions). Even if
the box is not checked, Seller shall have the obligation to furnish these
documents pursuant to this subsection if requested by Buyer any time on or
before the Document Request Deadline (§ 2c). This requirement shall pertain
only to documents as shown of record in the office of the clerk and
recorder(s). The abstract or title insurance commitment, together with any
copies or summaries of such documents furnished pursuant to this Section,
constitute the title documents (Title Documents).

     8. Title.

         a. Title Review. Buyer shall have the right to inspect the Title
Documents. Written notice by Buyer of unmerchantability of title or of any
other unsatisfactory title condition shown by the Title Documents shall be
signed by or on behalf of Buyer and given to Seller on or before Title
Objection Deadline (§ 2c), or within five (5) calendar days after receipt by
Buyer of any Title Document(s) or endorsement(s) adding new Exception(s) to the
title commitment together with a copy of the Title Document adding new
Exception(s) to title. If Seller does not receive Buyer’s notice by the
date(s) specified above, Buyer accepts the condition of title as disclosed by
the Title Documents as satisfactory.

         b. Matters not Shown by the Public Records. Seller shall deliver to
Buyer, on or before Off-Record Matters Deadline (§ 2c) true copies of all
lease(s) (other than those with Buyer) and survey(s) in Seller’s possession
pertaining to the Property and shall disclose to Buyer all easements, liens or
other title matters not shown by the public records of which Seller has actual
knowledge. Buyer shall have the right to inspect the Property to determine if
any third party(ies) has any right in the Property not shown by the public
records (such as an unrecorded easement, unrecorded lease, or boundary line
discrepancy). Written notice of any unsatisfactory condition(s) disclosed by
Seller or revealed by such inspection shall be signed by or on behalf of Buyer
and given to Seller on or before Off-Record Matters Objection Deadline (§ 2c).
If Seller does not receive Buyer’s notice by said date, Buyer accepts title
subject to such rights, if any, of third parties of which Buyer has actual
knowledge.

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         c. Special Taxing Districts. SPECIAL TAXING DISTRICTS MAY BE SUBJECT TO
GENERAL OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL
TAX LEVIES ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN
SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED MILL LEVIES AND EXCESSIVE
TAX BURDENS TO SUPPORT THE SERVICING OF SUCH DEBT WHERE CIRCUMSTANCES ARISE
RESULTING 1N THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH INDEBTEDNESS
WITHOUT SUCH AN INCREASE IN MILL LEVIES. BUYER SHOULD INVESTIGATE THE DEBT
FINANCING REQUIREMENTS OF THE AUTHORIZED GENERAL OBLIGATION INDEBTEDNESS OF
SUCH DISTRICTS, EXISTING MILL LEVIES OF SUCH DISTRICT SERVICING SUCH
INDEBTEDNESS, AND THE POTENTIAL FOR AN INCREASE IN SUCH MILL LEVIES.

     In the event the Properly is located within a special taxing district and
Buyer desires to terminate this contract as a result, if written notice is
received by Seller on or before Off-Record Matters Objection Deadline (§ 2c),
this contract shall then terminate. If Seller does not receive Buyer’s notice
by such date, Buyer accepts the effect of the Property’s inclusion in such
special taxing district(s) and waives the right to so terminate.

         d. Right to Cure. If Seller receives notice of unmerchantability of title
or any other unsatisfactory title condition(s) or commitment terms as provided
in § 8 a or b above, Seller shall use reasonable effort to correct said items
and bear any nominal expense to correct the same prior to Closing. If such
unsatisfactory title condition(s) are not corrected on or before Closing, this
contract shall then terminate; provided, however, Buyer may, by written notice
received by Seller, on or before Closing, waive objection to such items.

         e. Title Advisory. The Title Documents affect the title, ownership and
use of the Property and should be reviewed carefully. Additionally, other
matters not reflected in the Title Documents may affect the title, ownership
and use of the Property, including without limitation boundary lines and
encroachments, area, zoning, unrecorded easements and claims of easements,
leases and other unrecorded agreements, and various laws and governmental
regulations concerning land use, development and environmental matters. The
surface estate may be owned separately from the underlying mineral estate, and
transfer of the surface estate does not necessarily include transfer of the
mineral rights. Third parties may hold interests in oil, gas, other minerals,
geothermal energy or water on or under the Property, which interests may give
them rights to enter and use the Property. Such matters may be excluded from
the title insurance policy. Buyer is advised to timely consult legal counsel
with respect to all such matters as there are strict time limits provided in
this contract (e.g., Title Objection Deadline [§ 2c] and Off-Record Matters
Objection Deadline [§ 2c]).

     9. Lead-Based Paint. N/A

     10. Inspection.

         a. Inspection Objection Deadline. Buyer shall have the right to have
inspection(s) of the physical condition of the Property and Inclusions, at
Buyer’s expense. If the

-5-

 

physical condition of the Property or Inclusions is unsatisfactory in
Buyer’s subjective discretion, Buyer shall, on or before Inspection Objection
Deadline (§ 2c):

              (1) notify Seller in writing that this contract is terminated, or

              (2) provide Seller with a written description of any unsatisfactory
physical condition which Buyer requires Seller to correct (Notice to Correct).

     If written notice is not received by Seller on or before Inspection
Objection Deadline (§ 2c), the physical condition of the Property and
Inclusions shall be deemed to be satisfactory to Buyer.

         b. Resolution Deadline. If a Notice to Correct is received by Seller and
if Buyer and Seller have not agreed in writing to a settlement thereof on or
before Resolution Deadline (§ 2c), this contract shall terminate one calendar
day following the Resolution Deadline (§ 2c), unless before such termination
Seller receives Buyer’s written withdrawal of the Notice to Correct.

         c. Damage; Liens; Indemnity. Buyer is responsible for payment for all
inspections, surveys, engineering reports or for any other work performed at
Buyer’s request and shall pay for any damage which occurs to the Property and
Inclusions as a result of such activities. Buyer shall not permit claims or
liens of any kind against the Property for inspections, surveys, engineering
reports and for any other work performed on the Property at Buyer’s request.
Buyer agrees to indemnify, protect and hold Seller harmless from and against
any liability, damage, cost or expense incurred by Seller in connection with
any such inspection, claim, or lien. This indemnity includes Seller’s right to
recover all costs and expenses incurred by Seller to enforce this subsection,
including Seller’s reasonable attorney fees. The provisions of this subsection
shall survive the termination of this contract.

     11. Closing. Delivery of deed(s) from Seller to Buyer shall be at Closing
(Closing). Closing shall be on the date specified as the Closing Date (§ 2c)
or by mutual agreement at an earlier date. The hour and place of Closing shall
be at 10:00 a.m. at the Title Company.

     12. Transfer of Title. Subject to tender or payment at Closing as
required herein and compliance by Buyer with the other terms and provisions
hereof, Seller shall execute and deliver a good and sufficient special warranty
deed to Buyer, at Closing, conveying the Property free and clear of all taxes
except the general taxes for the year of Closing. Except as provided herein,
title shall be conveyed free and clear of all liens, including any governmental
liens for special improvements installed as of the date of Buyer’s signature
hereon, whether assessed or not. Title shall be conveyed subject to:

         a. those specific Exceptions described by reference to recorded documents
as reflected in the Title Documents accepted by Buyer in accordance with § 8a
[Title Review],

         b. distribution utility easements,

-6-

 

         c. those specifically described rights of third parties not shown by the
public records of which Buyer has actual knowledge and which were accepted by
Buyer in accordance with § 8b [Matters Not Shown by the Public Records], and

         d. inclusion of the Property within any special taxing district, and

         e. the benefits and burdens of any declaration and party wall agreements,
if any, and

         f. other: the Lease to Buyer.

     13. Payment of Encumbrances. Any encumbrance required to be paid shall be
paid at or before Closing from the proceeds of this transaction or from any
other source.

     14. Closing Costs; Documents and Services. Buyer and Seller shall pay, in
Good Funds, their respective Closing costs and all other items required to be
paid at Closing, except as otherwise provided herein. Buyer and Seller shall
sign and complete all customary or reasonably required documents at or before
Closing. Fees for real estate Closing services shall be paid at Closing by
x One-Half by Buyer and One-Half by Seller o Buyer o Seller o Other 
                 
                     
                 
                                      
                                      
                                      
                                      
                                      
                                      
                     .

     The local transfer tax, if any, shall be paid at Closing by x Buyer o Seller. Any sales and use tax that may accrue because of this transaction
shall be paid when due by x Buyer o Seller.

     15. Prorations. The following shall be prorated to Closing Date (§ 2c),
except as otherwise provided:

         a. Taxes. Personal property taxes, if any, and general real estate taxes
for the year of Closing, based on o The Taxes for the Calendar Year Immediately
Preceding Closing x The Most Recent Mill Levy and Most Recent Assessment o Other See Section
24(a) below.

         b. Rents. Rents based on x Rents Actually Received o Accrued. Security
deposits held by Seller shall be credited to Buyer. Seller shall assign all
leases to Buyer and Buyer shall assume such leases. Lease to Buyer to be
assigned and assumed or terminated as of Closing.

         c. Other Prorations. Water, sewer charges; and interest on continuing
loan(s), if any; and See Section 24(a) below.

         d. Final Settlement. Unless otherwise agreed in writing, these prorations
shall be final.

     16. Possession. Possession of the Property shall be delivered to Buyer on
Possession Date and Possession Time (§ 2c), subject to the following lease(s)
or tenancy(s): Lease to Buyer.

     If Seller, after Closing, fails to deliver possession as specified, Seller
shall be subject to eviction and shall be additionally liable to Buyer for
payment of $100.00 per day from the Possession Date (§ 2c) until possession is
delivered.

-7-

 

     17. Not Assignable. This contract shall not be assignable by Buyer
without Seller’s prior written consent. Notwithstanding the foregoing
sentence, Buyer may assign its interest in this contract to an affiliated
entity provided Buyer remains fully liable for any default under the terms of
this contract. Except as so restricted, this contract shall inure to the
benefit of and be binding upon the heirs, personal representatives, successors
and assigns of the parties.

     18. Condition of, and Damage to Property and Inclusions. Except as
otherwise provided in this contract, the Property, Inclusions or both shall be
delivered in the condition existing as of the date of this contract, ordinary
wear and tear excepted.

         a. Casualty; Insurance. In the event the Property or Inclusions shall be
damaged by fire or other casualty prior to Closing, in an amount of not more
than ten percent of the total Purchase Price, Seller shall be obligated to
repair the same before the Closing Date (§ 2c). In the event such damage is
not repaired within said time or if the damages exceed such sum, this contract
may be terminated at the option of Buyer by delivering to Seller written notice
of termination. Should Buyer elect to carry out this contract despite such
damage, Buyer shall be entitled to a credit, at Closing, for all the insurance
proceeds resulting from such damage to the Property and Inclusions payable to
Seller but not the owners’ association, if any, plus the amount of any
deductible provided for in such insurance policy, such credit not to exceed the
total Purchase Price.

         b. Damage; Inclusions; Services. Should any Inclusion(s) or service(s)
(including systems and components of the Property, e.g. heating, plumbing,
etc.) fail or be damaged between the date of this contract and Closing or
possession, whichever shall be earlier, then Seller shall be liable for the
repair or replacement of such Inclusion(s) or service(s) with a unit of similar
size, age and quality, or an equivalent credit, but only to the extent that the
cost of maintenance or replacement of such Inclusion(s), service(s) or
fixture(s) is not the responsibility of the Buyer under the terms of its Lease,
less any insurance proceeds received by Buyer covering such repair or
replacement.

     19. Recommendations of Legal and Tax Counsel. By signing this document,
Buyer and Seller acknowledge that the Selling Company or the Listing Company
has advised that this document has important legal consequences and has
recommended the examination of title and consultation with legal and tax or
other counsel before signing this contract.

     20. Time of Essence and Remedies. Time is of the essence hereof. If any
note or check received as Earnest Money hereunder or any other payment due
hereunder is not paid, honored or tendered when due, or if any other obligation
hereunder is not performed or waived as herein provided, there shall be the
following remedies:

         a. If Buyer is in Default:

o           (1) Specific Performance. Seller may elect to treat this contract as
canceled, in which case all payments and things of value received hereunder shall
be forfeited and retained on behalf of Seller, and Seller may recover such damages
as may be proper, or Seller may elect to treat this contract as being in full force
and effect and Seller shall have the right to specific performance or damages, or
both.

-8-

 

x           (2) Liquidated Damages. All payments and things of value received
hereunder shall be forfeited by Buyer and retained on behalf of Seller and both
parties shall thereafter be released from all obligations hereunder. It is agreed
that such payments and things of value are LIQUIDATED DAMAGES and (except as
provided in subsection c) are SELLER’S SOLE AND ONLY REMEDY for Buyer’s failure to
perform the obligations of this contract. Seller expressly waives the remedies of
specific performance and additional damages.

         b. If Seller is in Default: Buyer may elect to treat this contract as
canceled, in which case all payments and things of value received hereunder
shall be returned and Buyer may recover such damages as may be proper, or Buyer
may elect to treat this contract as being in full force and effect and Buyer
shall have the right to specific performance or damages, or both.

         c. Costs and Expenses. In the event of any arbitration or litigation
relating to this contract, the arbitrator or court shall award to the
prevailing party all reasonable costs and expenses, including attorney fees.

     21. Mediation. If a dispute arises relating to this contract, prior to or
after Closing, and is not resolved, the parties shall first proceed in good
faith to submit the matter to mediation. Mediation is a process in which the
parties meet with an impartial person who helps to resolve the dispute
informally and confidentially. Mediators cannot impose binding decisions. The
parties to the dispute must agree before any settlement is binding. The
parties will jointly appoint an acceptable mediator and will share equally in
the cost of such mediation. The mediation, unless otherwise agreed, shall
terminate in the event the entire dispute is not resolved 30 calendar days from
the date written notice requesting mediation is sent by one party to the
other(s). This Section shall not alter any date in this contract, unless
otherwise agreed.

     22. Earnest Money Dispute. Notwithstanding any termination of this
contract, Buyer and Seller agree that, in the event of any controversy
regarding the Earnest Money and things of value held by broker or Closing
Company (unless mutual written instructions are received by the holder of the
Earnest Money and things of value), broker or Closing Company shall not be
required to take any action but may await any proceeding, or at broker’s or
Closing Company’s option and sole discretion, may interplead all parties and
deposit any moneys or things of value into a court of competent jurisdiction
and shall recover court costs and reasonable attorney fees.

     23. Termination. In the event this contract is terminated, all payments
and things of value received hereunder shall be returned and the parties shall
be relieved of all obligations hereunder, subject to §§ 10c, 21 and 22.

     24. Additional Provisions. (The language of these additional provisions
has not been approved by the Colorado Real Estate Commission.)

         a. Prorations. Buyer presently occupies the Property as the sole tenant
under a triple net Lease with Seller. As such, all taxes, utilities, and
certain operating expenses associated with the Property are paid by Buyer, as
tenant. As such, none of these expenses shall be prorated at Closing.
However, at Closing, the following adjustments will be made:

-9-

 

              (1) Buyer will receive credit for the amount of all real property taxes
paid by tenant to Seller for the year of Closing through Closing, and Buyer
shall be responsible for, and take title to the Property subject to all real
property taxes for the year of Closing;

              (2) Although rent will be prorated as of Closing, the operating (triple
net) expenses (excepting real property taxes) will not be. Seller estimates
that the operating (triple net) expenses (excepting real property taxes) paid
by tenant through the month of Closing will closely approximate what Seller
will have spent (or be obligated to pay) for the period from January 31, 2004
through to the Closing.

              (3) Utilities will be transferred to Buyer as of Closing; and

              (4) If either party desires to have a reconciliation of the 2004 operating
(triple net) expenses (excepting real property taxes) as of Closing, that party
must notify the other in writing within fifteen (15) days following Closing.
Absent such notice, both parties will be deemed to have waived any right under
the Lease to a reconciliation and to have accepted the allocation of expenses
as described in subsection b above as final. In the event either party elects
to have such a reconciliation, all operating (triple net) expenses (excepting
real property taxes) will be reconciled as of the date of Closing. Following
the reconciliation, if requested, Buyer will pay to Seller the amount, if any,
that Seller has paid in excess of amounts paid by tenant under the Lease;
Seller will pay to Buyer the amount, if any, that tenant has paid in excess of
amounts actually due under the Lease; and the party requesting the
reconciliation will pay to the other $1,000.00 unless the reconciliation
results in the requesting party receiving payment in excess of $2,000.00.

         b. Brokers. Buyer and Seller each warrant and represent to the other that
they have not engaged any broker, finder or other person in connection with
this transaction. Each party shall indemnify and hold the other harmless from
claims of any other broker, finder or similar person who claims to be entitled
to compensation in connection with this transaction.

         c. No Warranties. Except as is expressly provided otherwise herein, the
Property is sold by Seller and acquired by Buyer in an “As-Is, Where-Is” basis
with no warranties of any kind, express or implied, either oral or written,
made by Seller or any agent or representative of Seller with respect to the
physical, environmental, or structural condition of the Property or with
respect to its use or operation under any laws, ordinances, or regulations of
any government or other body. Buyer acknowledges and agrees that Seller has
not made and does not make any representations, warranties, or covenants of any
kind or character whatsoever, whether express or implied, with respect to
habitability, tenantability, or suitability for any purpose, merchantability,
or fitness of the Property for a particular purpose, all of which warranties
Seller hereby expressly disclaims.

         d. Seller’s Representations. Seller represents and warrants to Buyer the
following, all of which representations and warranties shall survive Closing:

              (1) Seller has not received any written notice from any governmental
authority or other person regarding violations or alleged violations of any
laws, rules, regulations, or

-10-

 

codes in connection with the Property, the environmental condition of the
Property, or the disposal of any materials thereon.

              (2) The Seller is a limited partnership duly organized and validly
existing under the laws of the state of Colorado and authorized to transact
business within the State of Colorado, and the execution and delivery of and
Seller’s performance under this Contract are within Seller’s powers and have
been duly authorized by all requisite action.

         e. Section 1031. Each party agrees to cooperate with the other in
structuring this transaction as a tax-deferred exchange under Section 1031 of
the Internal Revenue Code, provided (i) the cooperating party shall not be
required to incur any additional liability or expense, (ii) the closing of this
transaction will not be delayed contrary to the terms hereof, and (iii) the
cooperating party shall not be obligated to acquire title to any other property
in the exchange.

         f. 2545 Lease. Buyer presently is party to a Lease with 2545 Central LLC
(an affiliate of Seller) for premises at 5766 Central Avenue, Boulder, Colorado
(“2545 Lease”). Seller will obtain as of Closing a termination of Buyer’s
obligations under the 2545 Lease effective as of Closing provided the Buyer is
not then in default under the 2545 Lease, and provided that Buyer delivers to
Seller a fully executed assumption agreement of the 2545 Lease by SpectraLink
Corporation, which assumption agreement must be in form acceptable to 2545
Central LLC and may only vary the terms of the 2545 Lease in terms of the Base
Rent payable (using that Base Rent described in the Sublease dated September
30, 2003 as the agreed Base Rent).

     25. Entire Agreement; Subsequent Modification; Survival. This contract
constitutes the entire contract between the parties relating to the subject
hereof, and any prior agreements pertaining thereto, whether oral or written,
have been merged and integrated into this contract. No subsequent modification
of any of the terms of this contract shall be valid, binding upon the parties,
or enforceable unless made in writing and signed by the parties. Any
obligation in this contract which, by its terms, is intended to be performed
after termination or Closing shall survive the same.

     26. Facsimile. Signatures x May o May Not be evidenced by facsimile.
Documents with original signatures shall be provided to the other party at
Closing, or earlier upon request of any party.

     27. Notice. Except for the notice requesting mediation described in § 21,
any notice to Buyer shall be effective when received by Buyer and any notice to
Seller shall be effective when received by Seller.

     28. Notice of Acceptance; Counterparts. This proposal shall expire unless
accepted in writing, by Buyer and Seller, as evidenced by their signatures
below, and the offering party receives notice of acceptance pursuant to § 27 on
or before Acceptance Deadline Date and Acceptance Deadline Time (§ 2c). If
accepted, this document shall become a contract between Seller and Buyer. A
copy of this document may be executed by each party, separately, and when each
party has executed a copy thereof, such copies taken together shall be deemed
to be a full and complete contract between the parties.

-11-

 

	 	 	 
	

	 	CARRIER ACCESS CORPORATION
	

	 	/s/ NANCY PIERCE
	

	 	
 
	

	 	Buyer
	

	 	Date of Buyer’s Signature 9/15/04
	

	 	Buyer’s Address: 5395 Pearl Parkway, Boulder CO 80304
	

	 	Buyer’s Telephone No.:                     
	

	 	Buyer’s Fax No.:                     

[NOTE: If this offer is being countered or rejected, do not sign this document.
Refer to § 29]

	 	 	 
	

	 	COTTONWOOD LAND AND FARMS, LTD.
	

	 	/s/ KAY S. MCDOWELL G.P.
	

	 	
 
	

	 	Seller
	

	 	Date of Seller’s Signature 9/15/04
	

	 	Seller’s Address: 2465 Central Ave., Ste. #204 Boulder, CO 80301
	

	 	Seller’s Telephone No.:                     
	

	 	Seller’s Fax No.:                     

     29. Counter; Rejection. This offer is o Countered o Rejected. Initials
only of party (Buyer or Seller) who countered or rejected offer                     .

END OF CONTRACT

Note: Closing Instructions should be signed on or before Title Deadline.

Broker Acknowledgments. N/A

Brokers’ Compensation Disclosure. N/A

-12-

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