Document:

Realsource Residential, Inc. 10-Q  

 

Exhibit 10.9

 

 

 

RS
BAKKEN ONE, LLC

 

to

 

REALSOURCE
RESIDENTIAL, INC.

 

 

 

 

RIGHT OF
FIRST REFUSAL & OPTION

 

 

 

 

Dated:
As of June 10, 2014

 

	Property Location:	6421 13 Mile Center Road NW	113, 115, 117, 119, 121, 123 and
	 	Williston, North Dakota	125 Frontier Avenue
	 	Williams County	City of Watford City, North Dakota
	 	 	McKenzie County

 

DOCUMENT
PREPARED BY AND
WHEN RECORDED,
RETURN TO:

 

Michael
Best & Friedrich LLP
6995

Union
Park Center, Suite 100

Salt Lake City,
Utah 84047

Attention: Jason
Rogers

 

 

 

 

 

    	 

    	 

    

RIGHT
OF FIRST REFUSAL
& OPTION

 

For
the Option Fee
(as hereafter defined)
and other good
and valuable consideration,
RS Bakken One, LLC,
a Delaware limited
liability company
(the “Grantor”)
having an address
of 2089 Fort
Union Blvd, Salt
Lake City, UT
84121, hereby grants
to RealSource Residential,
Inc., a Nevada corporation
(“Grantee”), having
an address of
2089 Fort Union
Blvd, Salt Lake
City, UT 84121,
the right of
first refusal and
an option
to purchase the
following property
under the terms
and conditions hereof
(collectively, the “Property”):

 

Fee
title to the
parcel of real
property located in
McKenzie County, North
Dakota, and the leasehold
interest in
the parcel
of real
property located
in  Williams
County, North Dakota
under the Cross
Roads Lease Agreement,
dated January 1, 2013,
between Bakken Development
Solutions, LLC,
a Kentucky limited
liability company
(“BDS”), as
tenant, and Pilot
Travel Centers LLC,
a Delaware limited
liability company
(“Pilot”), as
landlord, as amended
by the First
Amendment to
Cross Road Lease
Agreement, dated
February 11, 2014,
as assigned to
Grantor pursuant to
the Assignment and
Assumption of Lease,
dated on or
about the date
hereof, between BDS,
as assignor, and
Grantor, as assignee,
as such lease
was further amended by the Second Amendment
to Cross Road Lease Agreement, dated on or about the date hereof between Grantor and
Pilot and, as such parcels are described on Exhibit “A” hereto;

 

TOGETHER
WITH all
of Grantor’s right,
title and interest
in all rights,
easements, appurtenances,
buildings, improvements,
fixtures and hereditaments
upon, under or
directly or indirectly
associated with
or connected
with such
property and subject
to all encumbrances thereon.

 

Attachment:                      Exhibit
“A” -- Description of Property

 

1.                 
Option. At any
time after
the first anniversary
of the Effective
Date and prior
to the
second anniversary
of the
Effective Date
(such period, the
“Option Exercise
Period”)
Grantee shall
have the option
to purchase
the Property
(the “Option
to Purchase”) during
the Option Exercise
Period for the
Option Price (as
defined herein) subject
to all of
the terms
provided herein. The
“Option Price”
shall be equal
to the fair
market value
of the Property
as determined
by an appraisal
by an appraiser
agreed upon by
Grantor and Grantee
minus the Option
Fee; provided, however,
that the Option
Price shall be no
less than $7,000,000.00
and no greater than
$8,000,000.00. The “Option Fee” shall be $25,000.00.

 

a.                  
If Grantee elects
to exercise the
Option to Purchase
during the Option
Exercise Period, Grantee shall
notify Grantor of
Grantee’s election
to exercise
the Option
to Purchase
in writing at
Grantor’s address set
forth above. The
date such notice 
is delivered personally
to Grantor or
sent by United
States registered or
certified mail,
postage prepaid, and
addressed to Grantor
at Grantor’s address
set forth
above is the
“Option Exercise Date”.

 

b.                 
Grantee and
Grantor shall
use commercially
reasonable efforts
to obtain
the required
consents (including
any lenders,
Grantor’s members
or other
required approvals,

 

    	 

    	 

    

the
“Required Consents”)
to close the
transfer of the
Property as
soon as
reasonably practicable
following the
Option Exercise
Date. The
closing shall be
subject to, among
other things, the
receipt of all
required consents (such
date, the “Closing
Date”).

 

c.                  
This option is
given with
the understanding
that Grantee
is familiar
with the Property,
has reviewed
current title
reports of
the Property and
has reviewed the
loan documents
(as the same
may be
amended, increased,
renewed, extended, spread,
consolidated, severed, restated, or otherwise
changed from
time to
time, the
“Loan Documents”)
encumbering the
property issued
by Silverpeak
Real Estate Finance
LLC, a Delaware limited
liability company, dated on
or about the
date hereof.

 

2.                 
Right of First
Refusal. If at
any time
prior to the
second anniversary of
the Effective Date
Grantor or
Grantor’s successors,
as the case
may be,
receives any bona
fide offer to
purchase (the
“Offer to Purchase”)
the Property,
which offer Grantor
or the
Grantor’s successors
desires to
accept, Grantor
or Grantor’s
successors shall
notify Grantee
in writing (at
Grantee’s address set
forth above)
of such
offer, and
Grantee shall
have thirty
(30) business days
after receipt of such notice within
which to notify Grantor or Grantor’s
successors of Grantee’s
election to
purchase the
Property described
in such
offer on
the terms
and conditions set
forth in such offer. The notice
from Grantor or Grantor’s successors
to Grantee shall contain a copy of the
Offer to Purchase
as described in
the offer.

 

a.                  
If Grantee elects
to exercise
its right of
first refusal,
by providing
notice to
Grantor or Grantor’s
successors within
the time
period set forth
above, Grantee and
Grantor or
Grantor’s successors
shall proceed
to close
the transfer
of the
 Property
(subject to the
receipt of the
Required Consents),
or the portion
thereof described
in the
offer, in the
time period for the
closing as set forth in the
Offer to Purchase.

 

b.                 
In the event
that Grantee fails
to provide Grantor
or Grantor’s
successors with
notice within the time period set forth above,
Grantor or Grantor’s successors may
transfer the Property,
or the
portion thereof set
forth in
the Offer
to Purchase,
free and
clear of the
terms of
this Agreement
and of any
rights of Grantee
so long as
the Option Fee
is repaid to
Grantee at the
closing of such
sale.

 

c.                  
All notices hereunder
shall be
in writing and
shall be effective
when delivered personally
or when
sent by
United States
registered or certified
mail, postage
prepaid, and addressed
to the parties
at the addresses
set forth above.

 

3.                 
Subordination. Notwithstanding
anything herein
to the
contrary, this
Right of
First Refusal
& Option, and
all terms
and provisions
hereof, as
the same
may hereafter
be modified, amended
or extended, (i)
shall be, and
shall at all
times remain,
subject and subordinate
to the terms,
conditions and
provisions of
the Loan Documents
and the lien
thereof and (ii)
shall automatically
terminate upon
the foreclosure
or deed-in-lieu
of foreclosure
of the
liens created by
the Loan Documents.

 

[Signature
page follows]

 

    	 

    	 

    

    	 

    	 

    

Exhibit “A”

 

DESCRIPTION
OF PROPERTY

 

 

McKenzie County,
North Dakota Parcel

 

Parcel 1:

Lot 1, Block 1, The Crossings at Watford
City, McKenzie County,
North Dakota, as
shown on the Plat recorded as Document
No. 464880

 

Parcel 2:

Together with
the beneficial right
to use 360
foot by 170
foot private storm drainage facilities easement
as shown in Warranty Deed recorded October 17,
2012 as Document No.
441489, McKenzie County, North
Dakota

 

 

Williams
County, North Dakota Parcel

 

Parcel 1:

Units
E and F,
in Lot 6,
Block 3, 13
Mile Center Subdivision
located in the SW
1⁄4 of Section 12, Township 156 North, Range 101 West, 5th
P.M., Williams County, North
Dakota

 

Parcel 2:

Together
with the beneficial right to
use parking areas
located on Lot 6, Block 3, 13 Mile Center
Subdivision located in
the SW 1⁄4 of Section 12,
Township 156 North, Range 101 West, 5th
P.M., Williams
County, North DakotaExhibit 4.1

  

	7.125% Series B Cumulative Redeemable Preferred Stock (Liquidation Preference $25.00 Per Share) 	 	CUSIP: 38489R 506
	No:	 	 
		 	 SEE REVERSE FOR IMPORTANT
	 	 	 NOTICE ON TRANSFER RESTRICTIONS
	 	 	AND OTHER INFORMATION

 

 

GRAMERCY PROPERTY TRUST INC.

a Corporation Formed Under the Laws of the
State of Maryland

 

THIS CERTIFIES THAT CEDE & CO is the
owner of            (                  ) fully paid and nonassessable shares of 7.125% Series B Cumulative Redeemable Preferred Stock, $.001 par value
per share, of

 

Gramercy Property Trust Inc.

 

(the “Corporation”) transferable on the books of
the Corporation by the holder hereof in person or by its duly authorized attorney, upon surrender of this Certificate properly
endorsed. This Certificate and the shares represented hereby are issued and shall be held subject to all of the provisions of the
charter of the Corporation and the Bylaws of the Corporation and any amendments thereto.  This Certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar.

 

IN WITNESS WHEREOF, the Corporation has
caused this Certificate to be executed on its behalf by its duly authorized officers.

 

	DATED: August           , 2014	 	 	 
	 	 	 	 
	Countersigned and Registered:	 	 	 
	Transfer Agent	 	 	(SEAL)
	and Registrar   	 	Edward J. Matey Jr.	 
	American Stock Transfer & Trust Company, LLC 	 	Executive Vice President	 
	 	 	 	 
	By:	 	 	 
	 	Authorized Signature   	 	Jon W. Clark	 
	 	 	Treasurer	 
	 	 	 	 	 

 

    	 

    	 

    

 

(REVERSE SIDE OF CERTIFICATE)

IMPORTANT
NOTICE

 

THE CORPORATION WILL FURNISH TO ANY STOCKHOLDER
ON REQUEST AND WITHOUT CHARGE A FULL STATEMENT OF THE DESIGNATIONS AND ANY PREFERENCES, CONVERSION AND OTHER RIGHTS, VOTING POWERS,
RESTRICTIONS, LIMITATIONS AS TO DIVIDENDS, QUALIFICATIONS, AND TERMS AND CONDITIONS OF REDEMPTION OF THE STOCK OF EACH CLASS WHICH
THE CORPORATION IS AUTHORIZED TO ISSUE, OF THE DIFFERENCES IN THE RELATIVE RIGHTS AND PREFERENCES BETWEEN THE SHARES OF EACH SERIES
OF A PREFERRED OR SPECIAL CLASS IN SERIES WHICH THE CORPORATION IS AUTHORIZED TO ISSUE, TO THE EXTENT THEY HAVE BEEN SET, AND OF
THE AUTHORITY OF THE BOARD OF DIRECTORS TO SET THE RELATIVE RIGHTS AND PREFERENCES OF SUBSEQUENT SERIES OF A PREFERRED OR SPECIAL
CLASS OF STOCK. SUCH REQUEST MAY BE MADE TO THE SECRETARY OF THE CORPORATION OR TO ITS TRANSFER AGENT. THE SECURITIES REPRESENTED
BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE PURPOSE OF THE CORPORATION'S
MAINTENANCE OF ITS STATUS AS A REAL ESTATE INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE").
EXCEPT AS OTHERWISE PROVIDED IN THE CHARTER OF THE CORPORATION, (1) NO PERSON MAY BENEFICIALLY OWN OR CONSTRUCTIVELY OWN IN EXCESS
OF 9.8% IN VALUE OF THE AGGREGATE OF THE OUTSTANDING SHARES OF EQUITY STOCK OF THE CORPORATION; OR (2) THERE SHALL BE NO TRANSFER
OR OTHER EVENT THAT WOULD CAUSE A VIOLATION OF THE OWNERSHIP LIMIT, THAT WOULD RESULT IN EQUITY STOCK OF THE CORPORATION BEING
BENEFICIALLY OWNED BY FEWER THAN 100 PERSONS OR THAT WOULD RESULT IN THE CORPORATION'S BEING "CLOSELY HELD" UNDER SECTION
856(H) OF THE CODE. ANY PERSON WHO VIOLATES, OR ATTEMPTS TO BENEFICIALLY OWN OR CONSTRUCTIVELY OWN SHARES OF EQUITY STOCK IN EXCESS
OF, THE ABOVE LIMITATIONS MUST IMMEDIATELY NOTIFY THE CORPORATION IN WRITING. IF THE RESTRICTIONS ON TRANSFER OR OWNERSHIP ARE
VIOLATED, THE SHARES OF EQUITY STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY CONVERTED INTO SHARES OF EXCESS STOCK WHICH WILL
BE HELD IN TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES AS PROVIDED IN THE CHARTER. IN ADDITION, UPON THE OCCURRENCE
OF CERTAIN EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE RESTRICTIONS DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL CAPITALIZED
TERMS IN THIS LEGEND HAVE THE MEANINGS DEFINED IN THE CHARTER OF THE CORPORATION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME,
A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER AND OWNERSHIP, WILL BE FURNISHED TO EACH HOLDER OF CAPITAL STOCK OF THE
CORPORATION ON REQUEST AND WITHOUT CHARGE.  

 

KEEP THIS CERTIFICATE IN A SAFE PLACE. 
IF IT IS LOST, STOLEN

OR DESTROYED, THE CORPORATION WILL REQUIRE
A BOND OF INDEMNITY AS A

CONDITION TO THE ISSUANCE OF A REPLACEMENT
CERTIFICATE.

 

The following abbreviations, when used in the inscription on
the face of this Certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	TEN COM  	---	as tenants in common   	UNIF GIFT MIN ACT 		Custodian	 
	TEN ENT  	---	as tenants by the entireties     	 	(Custodian) 	 	(Minor)
	JT TEN	--- 	as joint tenants with right of 	under Uniform Gifts to Minors Act of	
	 	 	survivorship and not as tenants in common  	 	(State)
	 	 	 	Additional abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED,______________ HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO

 

  

	(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE AND SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER, OF 

ASSIGNEE)

 

                                      
(                            )
shares of 7.125% Series B Cumulative Redeemable Preferred Stock, $.001 par value  per share, of the Corporation represented
by this Certificate and do hereby irrevocably constitute and appoint ________________ attorney to transfer the said shares
of 7.125% Series B Cumulative Redeemable Preferred Stock, $.001 par value per share, on the books of the Corporation, with full
power of substitution in the premises.

 

	Dated	 	 	NOTICE: The signature to this Assignment must correspond with the name as written upon the face of the Certificate in every particular, without alteration or enlargement or any change whatsoever.

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