Document:

Exhibit
10.19

 

	
   

  	
  710 North Euclid

  
	
   

  	
  Anaheim, 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.

  	
  Tenant Purchase Option.

  	
  4

  
	
  2.4.

  	
  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.

  	
  6

  
	
  4.1.

  	
  Closing Documents.

  	
  6

  
	
  4.2.

  	
  Right of First Refusal.

  	
  7

  
	
  4.3.

  	
  Title Policy.

  	
  7

  
	
  4.4.

  	
  Environmental Reliance Letters.

  	
  7

  
	
  4.5.

  	
  Condition of Property.

  	
  7

  
	
  4.6.

  	
  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.

  	
  Rights of First Refusal.

  	
  8

  
	
  5.4.

  	
  Other Conditions.

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REPRESENTATIONS AND WARRANTIES OF SELLER.

  	
  8

  
	
  6.1.

  	
  Status and Authority of the Seller, Etc.

  	
  8

  
	
  6.2.

  	
  Action of the Seller, Etc.

  	
  8

  
	
  6.3.

  	
  No Violations of Agreements.

  	
  8

  
	
  6.4.

  	
  Litigation.

  	
  8

  
	
  6.5.

  	
  Existing Leases, Etc.

  	
  9

  
				

 

i

 

	
  6.6.

  	
  Agreements, Etc.

  	
  10

  
	
  6.7.

  	
  Not a Foreign Person.

  	
  10

  
	
   

  	
   

  	
   

  
	
  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.

  	
  12

  
	
  7.4.

  	
  Litigation.

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  COVENANTS OF THE SELLER.

  	
  12

  
	
  8.1.

  	
  Approval of Agreements.

  	
  12

  
	
  8.2.

  	
  Operation of Property.

  	
  13

  
	
  8.3.

  	
  Compliance with Laws, Etc.

  	
  13

  
	
  8.4.

  	
  Compliance with Agreements.

  	
  13

  
	
  8.5.

  	
  Notice of Material Changes or Untrue
  Representations.

  	
  13

  
	
  8.6.

  	
  Insurance.

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  APPORTIONMENTS.

  	
  13

  
	
  9.1.

  	
  Real Property Apportionments.

  	
  13

  
	
  9.2.

  	
  Closing Costs.

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  DAMAGE TO OR CONDEMNATION OF PROPERTY.

  	
  16

  
	
  10.1.

  	
  Casualty.

  	
  16

  
	
  10.2.

  	
  Condemnation.

  	
  17

  
	
  10.3.

  	
  Survival.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  DEFAULT.

  	
  17

  
	
  11.1.

  	
  Default by the Seller.

  	
  17

  
	
  11.2.

  	
  Default by the Purchaser.

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  MISCELLANEOUS.

  	
  18

  
	
  12.1.

  	
  Allocation of Liability.

  	
  18

  
	
  12.2.

  	
  Brokers.

  	
  18

  
	
  12.3.

  	
  Publicity.

  	
  19

  
	
  12.4.

  	
  Notices.

  	
  19

  
	
  12.5.

  	
  Waivers, Etc.

  	
  20

  
	
  12.6.

  	
  Assignment; Successors and Assigns.

  	
  21

  
	
  12.7.

  	
  Severability.

  	
  21

  
	
  12.8.

  	
  Counterparts, Etc.

  	
  21

  
	
  12.9.

  	
  Performance on Business Days.

  	
  22

  
	
  12.10.

  	
  Attorneys’ Fees.

  	
  22

  
	
  12.11.

  	
  Section and Other Headings.

  	
  22

  
	
  12.12.

  	
  Time of Essence.

  	
  22

  
	
  12.13.

  	
  Governing Law.

  	
  22

  
	
  12.14.

  	
  Arbitration.

  	
  22

  
	
  12.15.

  	
  Like Kind Exchange.

  	
  23

  
	
  12.16.

  	
  Recording.

  	
  24

  
	
  12.17.

  	
  Non-liability of Trustees of Seller.

  	
  24

  
	
  12.18.

  	
  Non-liability of Trustees of Purchaser.

  	
  24

  
	
  12.19.

  	
  Waiver and Further Assurances.

  	
  24

  

 

ii

 

	
  12.20.

  	
  State Specific Provisions.

  	
  25

  

 

iii

 

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 Ten Million Five Hundred
Thirty-Nine Thousand Seven Hundred Twenty-Five Dollars ($10,539,725).

 

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 October 23, 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.          Tenant Purchase Option.  The Seller has advised the Purchaser that the
tenant described in Schedule C has a right of first refusal (the “Right
of First Refusal”) to purchase the Property.  Promptly upon the execution hereof, the
Seller shall provide such tenant with such notice as may be required to cause
such tenant to exercise or waive its Right of First Refusal.  Such notice shall identify (a) the
Purchase Price and (b) any other applicable terms pursuant to such Lease.  The Seller shall give the Purchaser prompt
notice of such tenant’s exercise or waiver of its Right of First Refusal.  In the event that such tenant shall exercise
its Right of First Refusal, this Agreement shall terminate and be of no further
force and effect and neither party shall have any liability to the other
hereunder.

 

2.4.          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 

 

4

 

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 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.

 

5

 

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 D 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 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 

 

6

 

transactions in sales of property in similar
transactions.

 

4.2.          Right of First Refusal.  The tenant under the Lease having a Right
of First Refusal shall have either exercised or waived its Right of First
Refusal.

 

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 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.

 

4.4.          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.

 

4.5.          Condition
of Property.  The 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.  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 2.4,
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.

 

7

 

5.3.          Right of
First Refusal.  The tenant
under the Lease having a Right of First Refusal shall have either exercised or
waived its Right of First Refusal.

 

5.4.          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 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 

 

8

 

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, 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 

 

9

 

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.

 

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 

 

10

 

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 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 

 

 

11

 

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.

 

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 

 

12

 

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.

 

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;

 

13

 

(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 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 

 

14

 

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 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.

 

15

 

 

(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 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 

 

16

 

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 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, 

 

17

 

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,
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.

 

18

 

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 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]

 

19

 

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.

 

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 

 

20

 

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 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.

 

21

 

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 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 

 

22

 

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 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

 

23

 

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 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 

 

24

 

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 E hereto are
hereby incorporated herein by reference as if fully set forth herein.

 

[Signature
page follows.]

 

25

 

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

  

 

26

 

SCHEDULE
A

 

Land

 

 

SCHEDULE
B

 

Rent
Roll

 

 

SCHEDULE
C

 

Tenant
with Right of First Refusal

 

Tenant under Office Lease, dated September 29,
1995, as amended, between (a) David L. Tsoong and (b) Aetna
Professional Management Corporation and A. Bruce Campbell/Gateway Medical
Group, P.C., relating to the Property located at 710 N. Euclid Street, Anaheim,
California.

 

 

SCHEDULE
D

 

Form of
Deed

 

 

SCHEDULE
E

 

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.Exhibit 10.20

  
	
   

  	
   

  
	
   

  	
  525 Virginia Drive

  
	
   

  	
  Fort Washington, PA

  

 

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.

  	
   

  	
  Tenant Purchase Option.

  	
   

  	
  4

  
	
  2.4.

  	
   

  	
  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.

  	
   

  	
  6

  
	
  4.1.

  	
   

  	
  Closing Documents.

  	
   

  	
  6

  
	
  4.2.

  	
   

  	
  Right of First Refusal.

  	
   

  	
  7

  
	
  4.3.

  	
   

  	
  Title Policy.

  	
   

  	
  7

  
	
  4.4.

  	
   

  	
  Environmental Reliance Letters.

  	
   

  	
  7

  
	
  4.5.

  	
   

  	
  Condition of Property.

  	
   

  	
  7

  
	
  4.6.

  	
   

  	
  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.

  	
   

  	
  Right of First Refusal.

  	
   

  	
  8

  
	
  5.4.

  	
   

  	
  Other Conditions.

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
   

  	
  REPRESENTATIONS AND WARRANTIES
  OF SELLER.

  	
   

  	
  8

  
	
  6.1.

  	
   

  	
  Status and Authority of the
  Seller, Etc.

  	
   

  	
  8

  
	
  6.2.

  	
   

  	
  Action of the Seller, Etc.

  	
   

  	
  8

  
	
  6.3.

  	
   

  	
  No Violations of Agreements.

  	
   

  	
  8

  
	
  6.4.

  	
   

  	
  Litigation.

  	
   

  	
  8

  
	
  6.5.

  	
   

  	
  Existing Leases, Etc.

  	
   

  	
  9

  

 

i

 

	
  6.6.

  	
   

  	
  Agreements, Etc.

  	
   

  	
  10

  
	
  6.7.

  	
   

  	
  Not a Foreign Person.

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  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.

  	
   

  	
  12

  
	
  7.4.

  	
   

  	
  Litigation.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
   

  	
  COVENANTS OF THE SELLER.

  	
   

  	
  12

  
	
  8.1.

  	
   

  	
  Approval of Agreements.

  	
   

  	
  12

  
	
  8.2.

  	
   

  	
  Operation of Property.

  	
   

  	
  13

  
	
  8.3.

  	
   

  	
  Compliance with Laws, Etc.

  	
   

  	
  13

  
	
  8.4.

  	
   

  	
  Compliance with Agreements.

  	
   

  	
  13

  
	
  8.5.

  	
   

  	
  Notice of Material Changes or
  Untrue Representations.

  	
   

  	
  13

  
	
  8.6.

  	
   

  	
  Insurance.

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
   

  	
  APPORTIONMENTS.

  	
   

  	
  13

  
	
  9.1.

  	
   

  	
  Real Property Apportionments.

  	
   

  	
  13

  
	
  9.2.

  	
   

  	
  Closing Costs.

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
   

  	
  DAMAGE TO OR CONDEMNATION OF
  PROPERTY.

  	
   

  	
  16

  
	
  10.1.

  	
   

  	
  Casualty.

  	
   

  	
  16

  
	
  10.2.

  	
   

  	
  Condemnation.

  	
   

  	
  17

  
	
  10.3.

  	
   

  	
  Survival.

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
   

  	
  DEFAULT.

  	
   

  	
  17

  
	
  11.1.

  	
   

  	
  Default by the Seller.

  	
   

  	
  17

  
	
  11.2.

  	
   

  	
  Default by the Purchaser.

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
   

  	
  MISCELLANEOUS.

  	
   

  	
  18

  
	
  12.1.

  	
   

  	
  Allocation of Liability.

  	
   

  	
  18

  
	
  12.2.

  	
   

  	
  Brokers.

  	
   

  	
  18

  
	
  12.3.

  	
   

  	
  Publicity.

  	
   

  	
  19

  
	
  12.4.

  	
   

  	
  Notices.

  	
   

  	
  19

  
	
  12.5.

  	
   

  	
  Waivers, Etc.

  	
   

  	
  20

  
	
  12.6.

  	
   

  	
  Assignment; Successors and
  Assigns.

  	
   

  	
  21

  
	
  12.7.

  	
   

  	
  Severability.

  	
   

  	
  21

  
	
  12.8.

  	
   

  	
  Counterparts, Etc.

  	
   

  	
  21

  
	
  12.9.

  	
   

  	
  Performance on Business Days.

  	
   

  	
  22

  
	
  12.10.

  	
   

  	
  Attorneys’ Fees.

  	
   

  	
  22

  
	
  12.11.

  	
   

  	
  Section and Other Headings.

  	
   

  	
  22

  
	
  12.12.

  	
   

  	
  Time of Essence.

  	
   

  	
  22

  
	
  12.13.

  	
   

  	
  Governing Law.

  	
   

  	
  22

  
	
  12.14.

  	
   

  	
  Arbitration.

  	
   

  	
  22

  
	
  12.15.

  	
   

  	
  Like Kind Exchange.

  	
   

  	
  23

  
	
  12.16.

  	
   

  	
  Recording.

  	
   

  	
  24

  
	
  12.17.

  	
   

  	
  Non-liability of Trustees of
  Seller.

  	
   

  	
  24

  
	
  12.18.

  	
   

  	
  Non-liability of Trustees of
  Purchaser.

  	
   

  	
  24

  
	
  12.19.

  	
   

  	
  Waiver and Further Assurances.

  	
   

  	
  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 Nine Million Five Hundred Ninety-Four Thousand One Hundred Sixty-Four
Dollars ($9,594,164).

 

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 October 6, 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.          Tenant Purchase Option.
    The Seller has advised the Purchaser that the tenant
described in Schedule C has a right of first refusal (the “Right of
First Refusal”) to purchase the Property. Promptly upon the execution
hereof, the Seller shall provide such tenant with such notice as may be
required to cause such tenant to exercise or waive its Right of First Refusal. Such
notice shall identify (a) the Purchase Price and (b) any other
applicable terms pursuant to such Lease. The Seller shall give the Purchaser
prompt notice of such tenant’s exercise or waiver of its Right of First Refusal.
In the event that such tenant shall exercise its Right of First Refusal, this
Agreement shall terminate and be of no further force and effect and neither
party shall have any liability to the other hereunder.

 

2.4.          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 

 

4

 

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 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.

 

5

 

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 D 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 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 

 

6

 

transactions in sales of property in similar
transactions.

 

4.2.          Right of First Refusal.    The
tenant under the Lease having a Right of First Refusal shall have either
exercised or waived its Right of First Refusal.

 

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 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.

 

4.4.          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.

 

4.5.          Condition of Property.
   The 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.
   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 2.4,
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.

 

7

 

5.3.          Right
of First Refusal.  The
tenant under the Lease having a Right of First Refusal shall have either
exercised or waived its Right of First Refusal.

 

5.4.          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 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

 

8

 

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, 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

 

9

 

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.

 

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

 

10

 

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 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

 

11

 

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.

 

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

 

12

 

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.

 

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;

 

13

 

(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 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

 

14

 

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 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.

 

15

 

(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 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

 

16

 

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 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,

 

17

 

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, 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.

 

18

 

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 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]

 

19

 

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.

 

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

 

20

 

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
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.

 

21

 

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
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

 

22

 

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 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

 

23

 

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 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

 

24

 

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.

 

[Signature page follows.]

 

25

 

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

  

 

26

 

SCHEDULE A

 

Land

 

 

SCHEDULE B

 

Rent Roll

 

 

SCHEDULE C

 

Tenant with Right of First Refusal

 

Tenant under Lease Agreement, dated December 3, 1996, as amended,
between 525 Virginia Drive Associates Limited Partnership and Bio-Pharm
Pharmaceutics Services, Inc., relating to the Property located at 525
Virginia Drive, Fort Washington, Pennsylvania.

 

 

SCHEDULE D

 

Form 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.

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