Document:

thg-ex101_69.htm

Exhibit 10.1

THE HANOVER INSURANCE GROUP

SECOND AMENDED AND RESTATED

2014 EMPLOYEE STOCK PURCHASE PLAN

 

 

	
Section 1.
	
Defined Terms

Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms.

	
Section 2.
	
Purpose of Plan

The Plan is intended to enable Eligible Employees of the Company and its Designated Subsidiaries to use payroll deductions to purchase shares of Stock, and thereby acquire an interest in the future of the Company.  The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 and to be exempt from the application and requirements of Section 409A of the Code, and is to be construed accordingly.

	
Section 3.
	
Options to Purchase Stock

Subject to adjustment pursuant to Section 17 of this Plan, the maximum aggregate number of shares of Stock available for purchase pursuant to the exercise of Options granted under the Plan to Eligible Employees will be 2,500,000 shares.  The shares of Stock to be delivered upon exercise of Options under the Plan may be either shares of authorized but unissued Stock, treasury Stock, or Stock acquired in an open-market transaction, all as the Board may determine.  If any Option granted under the Plan expires or terminates for any reason without having been exercised in full or ceases for any reason to be exercisable in whole or in part, the unpurchased shares of Stock subject to such Option will again be available for purchase pursuant to the exercise of Options under the Plan.  If, on an Exercise Date, the total number of shares of Stock that would otherwise be subject to Options granted under the Plan exceeds the number of shares then available under the Plan (after deduction of all shares for which Options have been exercised or are then outstanding), the Administrator shall make a pro rata allocation of the shares remaining available for the Option grants in as uniform a manner as shall be practicable and as it shall determine to be equitable.  In such event, the Administrator shall give written notice to each Participant of such reduction of the number of Options affected thereby and shall similarly reduce the rate of payroll deductions, if necessary. 

 

 

 

	
Section 4.
	
Eligibility

Subject to Section 14, and any exceptions and limitations set forth in Section 6 or as permitted under Section 423, or as may be provided elsewhere in the Plan, each Employee who (a) customarily works twenty (20) hours or more per week and for more than five (5) months per calendar year, (b) is employed by the Company or a Designated Subsidiary, and (c) satisfies the requirements set forth in the Plan will be an “Eligible Employee”.  Notwithstanding the above, an Employee who is a citizen or resident of a foreign jurisdiction (without regard to whether such Employee is also a citizen of the United States or resident alien in the United States) shall not be an Eligible Employee with respect to the Plan if the grant of an Option to such Employee is prohibited under the laws of the Employee’s foreign jurisdiction or compliance with the laws of the foreign jurisdiction would cause the Plan or an Option to violate the requirements of Section 423.  In no event, however, may an Employee be granted an Option under the Plan if, immediately after the Option is granted, the Employee would own (or pursuant to Section 424(d) of the Code would be deemed to own) stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of its Parent or Subsidiaries, if any.  The Administrator may, for Option Periods that have not yet commenced, establish additional eligibility requirements not inconsistent with Section 423.

	
Section 5.
	
Option Periods 

The Plan will generally be implemented by a series of “Option Periods,” which may be sequential and/or overlapping.  Unless otherwise determined by the Administrator, the Option Periods will be the six-month periods commencing January 1 and ending June 30 and commencing July 1 and ending December 31 of each year (each, a “Six-Month Option Period”).  The Administrator may also designate other Option Periods.  Each June 30 and December 31 and each other end of an Option Period designated by the Administrator will be an “Exercise Date”.  The Administrator may change the Exercise Date and the commencement date, ending date and duration of the Option Periods to the extent permitted by Section 423.

	
Section 6.
	
Option Grant

Subject to the limitations set forth in Section 4, Section 8 and Section 10 and the Maximum Share Limit, on the first day of an Option Period, each Participant automatically will be granted an Option to purchase shares of Stock on the Exercise Date; provided, however, that no Participant will be granted an Option under the Plan that permits the Participant’s right to purchase shares of Stock under the Plan and under all other employee stock purchase plans of the Company and its Parent and Subsidiaries, if any, to accrue at a rate that exceeds $25,000 in Fair Market Value (or such other maximum as may be prescribed from time to time by the Code) for each calendar year during which any Option granted to such Participant is outstanding at any time, as determined in accordance with Section 423(b)(8) of the Code.  

	
Section 7.
	
Method of Participation 

To participate in an Option Period, an Eligible Employee must execute and deliver to the Administrator a participation election form in accordance with the procedures prescribed by and in a form acceptable to the Administrator and, in so doing, the Eligible Employee will thereby become a Participant as of the first day of such Option Period.  With respect to Six-Month Option Periods, such Eligible Employee will remain a Participant with respect to subsequent Six-Month Option Periods until his or her participation in the Plan is terminated as provided herein.  Such participation election must be delivered no later than 10 business days prior to the first day of an Option Period, or such other time as specified by the Administrator.  

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A Participant’s election, with respect to a Six-Month Option Period, will remain in effect for subsequent Six-Month Option Periods unless the Participant files a new election not less than 10 business days prior to the first day of a Six-Month Option Period (or such other time as specified by the Administrator) or the Participant’s Option is cancelled pursuant to Section 14 or Section 15.  During an Option Period, elections and rates of contribution to the Plan may not be increased or decreased, except that a Participant may terminate his or her election by canceling his or her Option in accordance with Section 14.

	
Section 8.
	
Method of Payment

The Administrator will prescribe the method or methods of payment available for a Participant to pay for shares of Stock purchased upon the exercise of an Option, including by cash, check or with accumulated payroll deductions credited to the Participant’s Account.  To use payroll deductions, if permitted, a Participant must execute and deliver to the Administrator a payroll deduction authorization form in accordance with the procedures prescribed by and in a form acceptable to the Administrator subject to complying with any minimum and maximum amounts that may be deducted per pay period in accordance with the terms of the Plan.  With respect to Six-Month Option Periods, a Participant’s payroll deduction authorization, if any, will remain in effect for subsequent Six-Month Option Periods unless the Participant files a new payroll deduction authorization not less than 10 business days prior to the first day of a Six-Month Option Period (or such other time as specified by the Administrator) or the Participant’s Option is cancelled pursuant to Section 14 or Section 15.  During an Option Period, payroll deductions may not be increased or decreased, except that a Participant may terminate his or her payroll deduction by canceling his or her Option in accordance with Section 14. 

Each payroll deduction authorization will request payroll deductions in an amount equal to a percentage (expressed as a whole percentage) of the Participant’s total base compensation per payroll period, including base pay or base salary, overtime and shift differentials, or a fixed dollar amount, as determined by the Administrator.  If the Administrator determines that another limit shall be imposed hereunder or that eligible compensation shall be defined in a different manner, determinations shall be made in a manner that satisfies the requirements of Treasury Regulation Section 1.423-2(f)(2).

All payroll deductions made pursuant to this 8 will be credited to the Participant’s Account.  Amounts credited to a Participant’s Account will not be required to be set aside in trust or otherwise segregated from the Company’s general assets.

	
Section 9.
	
Purchase Price

The Purchase Price of shares of Stock issued pursuant to the exercise of an Option on each Exercise Date will be eighty-five percent (85%) (or such greater percentage specified by the Administrator to the extent permitted under Section 423) of a one of the following, as selected by the Administrator prior to the commencement of the relevant Option Period:

(a)the Fair Market Value of a share of Stock on the date on which the Option was granted pursuant to Section 6 (i.e., the first day of the Option Period);

(b)the Fair Market Value of a share of Stock on the date on which the Option is deemed exercised pursuant to Section 10 (i.e., the Exercise Date); or

(c)the lesser of (a) and (b).

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Section 10.
	
Exercise of Options

Subject to the limitations set forth in Section 6, Section 8 and this Section 10, with respect to each Option Period, on the applicable Exercise Date, each Participant will be deemed to have exercised his or her Option and (a) if the Participant has an Account, the accumulated payroll deductions in the Participant’s Account will be applied to purchase the greatest number of whole shares of Stock (rounded down to the nearest whole share) that can be purchased with such Account balance at the applicable Purchase Price or (b) if the Purchase Price is paid by check or other means acceptable to the Administrator, the amount remitted by the Participant will be applied to purchase the greatest number of whole shares of Stock (rounded down to the nearest whole share) that can be purchased with such amount at the applicable Purchase Price; provided, however, in either case that no more than 1,000 shares of Stock may be purchased by a Participant on any Exercise Date, or such lesser number as the Administrator may prescribe in accordance with Section 423 (the “Maximum Share Limit”).  As soon as practicable thereafter, shares of Stock so purchased will be placed, in book-entry form, into a record keeping account in the name of the Participant.  No fractional shares will be purchased.  Prior to the commencement of an Option Period, the Administrator shall determine whether any payroll deductions accumulated in a Participant’s Account or amounts paid by check or otherwise that are not sufficient to purchase a full share will be retained or deposited, as applicable, in the Participant’s Account for the subsequent Option Period, subject to earlier withdrawal by the Participant as provided in Section 14 hereof, or returned to the Participant or his or her designated beneficiary or legal representative, as applicable, without interest, as soon as administratively practicable after the Exercise Date or earlier withdrawal, as applicable.

Except as provided above with respect to fractional shares, any amount of payroll deductions in a Participant’s Account or amounts paid by check or otherwise that are not used for the purchase of shares of Stock, whether because of the Participant’s withdrawal from participation in an Option Period or for any other reason, will be returned to the Participant or his or her designated beneficiary or legal representative, as applicable, without interest, as soon as administratively practicable after such withdrawal or other event, as applicable. 

If the Participant’s accumulated payroll deductions or amounts paid by check or otherwise on the Exercise Date would otherwise enable the Participant to purchase shares of Stock in excess of the Maximum Share Limit, the excess of such amount over the aggregate Purchase Price of the shares of Stock actually purchased will be returned to the Participant, without interest, as soon as administratively practicable after such Exercise Date.

Notwithstanding any provision of the Plan to the contrary, no Option may be exercised after 27 months from its grant date.

	
Section 11.
	
Restrictions on Transfer; Plan Accounts; Disqualifying Dispositions

By electing to participate in the Plan, each Participant agrees to be subject to the restrictions and covenants set forth in this Section 11.

Shares of Stock purchased under the Plan will be subject to a restriction prohibiting the transfer, sale, pledge or alienation of such shares of Stock by a Participant, other than by will or by the laws of descent and distribution, for a period of six (6) months (or such other period as may be determined by the Administrator) from the date on which such shares of Stock are purchased by the Participant hereunder.  

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In addition, and without limiting the foregoing, for such period determined by the Administrator, all shares of Stock purchased under the Plan by a Participant will be subject to a restriction prohibiting the transfer of such shares of Stock by the Participant from the account where such shares of Stock are initially held until such shares are sold through the Plan’s custodian and record keeper.

By electing to participate in the Plan, each Participant agrees to provide such information about any transfer of Stock acquired under the Plan that occurs within two years after the first day of the Option Period in which such Stock was acquired and within one year after the acquisition of such Stock as may be requested by the Company or any Designated Subsidiary in order to assist such entity in complying with applicable tax laws.  

	
Section 12.
	
Interest

No interest will be payable on any amount held in the Account of any Participant. 

	
Section 13.
	
Taxes

Payroll deductions will be made on an after-tax basis.  The Administrator will have the right, as a condition to exercising an Option, to make such provision as it deems necessary to satisfy its obligations to withhold federal, state, local income or other taxes incurred by reason of the purchase or disposition of shares of Stock under the Plan.  In the Administrator’s discretion and subject to applicable law, such tax obligations may be paid in whole or in part by delivery of shares of Stock to the Company, including shares of Stock purchased under the Plan, valued at Fair Market Value, but not in excess of the minimum statutory amounts required to be withheld.  

	
Section 14.
	
Cancellation and Withdrawal

A Participant who holds an Option under the Plan may cancel all (but not less than all) of his or her Option and terminate his or her participation and/or payroll deduction authorization by revoking such authorization by written notice delivered to the Administrator, which, to be effective with respect to an upcoming Exercise Date, must be delivered not later than 10 business days prior to such Exercise Date (or such other time as specified by the Administrator). Upon such termination and cancellation, the balance in the Participant’s Account or any amounts paid by other means will be returned to the Participant, without interest, as soon as administratively practicable thereafter. If a Participant cancels or otherwise terminates an Option, in order to participate in future Option Periods, the Participant must affirmatively execute and deliver a new election to participate in accordance with Section 7.

	
Section 15.
	
Termination of Employment; Death of Participant

Upon the termination of a Participant’s employment with the Company (or a Designated Subsidiary, as applicable) for any reason or the death of a Participant during an Option Period prior to an Exercise Date or in the event the Participant ceases to qualify as an Eligible Employee, the Participant will cease to be a Participant, any Option held by him or her under the Plan will be deemed canceled, the balance in the Participant’s Account or amounts paid by other means will be returned to the Participant (or his or her estate or designated beneficiary in the event of the Participant’s death), without interest, as soon as administratively practicable thereafter, and the Participant will have no further rights under the Plan.

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Section 16.
	
Equal Rights; Participant’s Rights Not Transferable

All Participants granted Options under the Plan will have the same rights and privileges consistent with the requirements set forth in Section 423. Any Option granted under the Plan will be exercisable during the Participant’s lifetime only by him or her and may not be sold, pledged, assigned, or transferred in any manner.  In the event any Participant violates or attempts to violate the terms of this Section 16, as determined by the Administrator in its sole discretion, any Options held by him or her may be terminated by the Company and, upon the return to the Participant of the balance of his or her Account or any amounts paid by other means, without interest, all of the Participant’s rights under the Plan will terminate.

	
Section 17.
	
Change in Capitalization; Merger

In the event of any change in the outstanding Stock by reason of a stock dividend, split-up, recapitalization, merger, consolidation, reorganization, or other capital change, the aggregate number and type of shares of Stock available under the Plan, the number and type of shares of Stock granted under any outstanding Options, the maximum number and type of shares of Stock purchasable under any outstanding Option, and the purchase price per share of Stock under any outstanding Option will be appropriately adjusted; provided, that no such adjustment will be made unless the Administrator is satisfied that it will not constitute a modification of the rights granted under the Plan or otherwise disqualify the Plan as an employee stock purchase plan under the provisions of Section 423.

In the event of a sale of all or substantially all of the Stock or a sale of all or substantially all of the assets of the Company, or a merger or similar transaction in which the Company is not the surviving corporation or that results in the acquisition of the Company by another person, the Administrator may, in its discretion, (a) if the Company is merged with or acquired by another corporation, provide that each outstanding Option will be assumed or exchanged for a substitute Option granted by the acquiror or successor corporation or by a parent or subsidiary of the acquiror or successor corporation, (b) cancel each outstanding Option and return the balances in Participants’ Accounts or any amounts paid by other means to the Participants, and/or (c) pursuant to Section 19, terminate the Option Period on or before the date of the proposed sale, merger or similar transaction.

	
Section 18.
	
Administration of Plan

The Plan will be administered by the Administrator, which will have the right to determine any questions which may arise regarding the interpretation and application of the provisions of the Plan and to make, administer, and interpret such rules and regulations as it deems necessary or advisable.  All determinations and decisions by the Administrator regarding the interpretation or application of the Plan will be final and binding on all Participants.

The Administrator may specify the manner in which Employees are to provide notices and payroll deduction authorizations.  Notwithstanding any requirement of “written notice” herein, the Administrator may permit Employees to provide notices and payroll deduction authorizations electronically. 

	
Section 19.
	
Amendment and Termination of Plan

The Board reserves the right at any time or times to amend the Plan to any extent and in any manner it may deem advisable, by action of the Board; provided, that any amendment that would be treated as the adoption of a new plan for purposes of Section 423 will have no force or effect unless approved by the shareholders of the Company within 12 months before or after its adoption.

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The Plan may be suspended or terminated at any time by the Company, by action of the Board.  In connection therewith, the Board may provide, in its sole discretion, either that outstanding Options will be exercisable either at the Exercise Date for the applicable Option Period or on such earlier date as the Board may specify (in which case such earlier date will be treated as the Exercise Date for the applicable Option Period), or that the balance of each Participant’s Account or any amounts paid by other means will be returned to the Participant, without interest.

	
Section 20.
	
Approvals

Notwithstanding anything herein to the contrary, the obligation of the Company to issue and deliver shares of Stock under the Plan will be subject to the approval required of any governmental authority in connection with the authorization, issuance, sale or transfer of said shares of Stock, to any requirements of any national securities exchange applicable thereto, and to compliance by the Company with other applicable legal requirements in effect from time to time.

	
Section 21.
	
Participants’ Rights as Shareholders and Employees

A Participant will have no rights or privileges as a shareholder of the Company and will not receive any dividends in respect of any shares of Stock covered by an Option granted hereunder until such Option has been exercised, full payment has been made for such shares of Stock, and the shares of Stock have been issued to the Participant.

Nothing contained in the provisions of the Plan will be construed as giving to any Employee the right to be retained in the employ of the Company or any Designated Subsidiary or as interfering with the right of the Company or any Designated Subsidiary to discharge, promote, demote or otherwise re-assign any Employee from one position to another within the Company any Designated Subsidiary at any time.

	
Section 22.
	
Governing Law

Subject to overriding federal law, the Plan will be governed by and interpreted consistently with the laws of the State of Delaware, except as may be necessary to comply with applicable requirements of federal law.

	
Section 23.
	
Effective Date and Term

The Company’s shareholders approved the Plan at the Company’s 2014 annual meeting on May 20, 2014 (the “Effective Date”) and no rights will be granted hereunder after the earliest to occur of (a) the Plan’s termination by the Company, (b) the issuance of all shares of Stock available for issuance under the Plan or (c) the day before the 10-year anniversary of the date the Company’s shareholders approve the Plan.  The Plan was amended and restated on September 22, 2020.     

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EXHIBIT A

Definition of Terms

 

The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:

 

“401(k) Plan”:  A savings plan qualifying under Section 401(k) of the Code that is sponsored by the Company or one of its Subsidiaries for the benefit of its employees.

 

“Account”:  A payroll deduction account maintained in the Participant’s name on the books of the Company or a Designated Subsidiary.

 

“Administrator”:  The Compensation Committee of the Board and its delegates, except that the Compensation Committee may delegate its authority under the Plan to a sub-committee comprised of one or more of its members, to members of the Board, or to officers or employees of the Company to the extent permitted by applicable law.  In each case references herein to the Administrator refer, as applicable, to such persons or groups so delegated to the extent of such delegation. 

 

“Board”:  The Board of Directors of the Company.

 

“Code”:  The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or any successor statute as from time to time in effect.

 

“Company”:  The Hanover Insurance Group, Inc.

 

“Designated Subsidiary”: A Subsidiary of the Company that has been designated by the Board or the Compensation Committee of the Board from time to time as eligible to participate in the Plan.  Exhibit B sets forth the Designated Subsidiaries as of the Effective Date.

 

“Effective Date”:  The date set forth in Section 23 of the Plan.

 

“Eligible Employee”:  Any Employee who meets the eligibility requirements set forth in Section 4 of the Plan.

 

“Employee”:  Any person who is employed by the Company or a Designated Subsidiary.  For the avoidance of doubt, independent consultants and independent contractors are not “Employees.”

 

“Exercise Date”:  The date set forth in Section 5 of the Plan or otherwise designated by the Administrator with respect to a particular Option Period on which a Participant will be deemed to have exercised the Option granted to him or her for such Option Period.

 

 “Fair Market Value”:  

 

(a) If the Stock is readily traded on an established national exchange or trading system (including the Nasdaq Global Market), the closing price of the Stock as reported by the principal exchange on which such Stock is traded; provided, however, that if such day is not a trading day, Fair Market Value will mean the reported closing price of the Stock for the immediately preceding day that is a trading day.  

 

(b) If the Stock is not traded on an established national exchange or trading system, the average of the bid and ask prices for such Stock where the bid and ask prices are quoted.

 

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(c) If the Stock cannot be valued pursuant to clauses (a) or (b), the value as determined in good faith by the Board in its sole discretion.

 

“Maximum Share Limit”:  The meaning set forth in Section 10 of the Plan.

 

“Option”:  An option granted pursuant to the Plan entitling the holder to acquire shares of Stock upon payment of the Purchase Price per share of Stock.

 

“Option Period”:  An offering period established in accordance with Section 5 of the Plan.

 

“Parent”:  A “parent corporation” as defined in Section 424(e) of the Code.

 

“Participant”:  An Eligible Employee who elects to enroll in the Plan.

 

“Plan”:  The Hanover Insurance Group Second Amended and Restated 2014 Employee Stock Purchase Plan, as from time to time amended and in effect.

 

“Purchase Price”:  The price per share of Stock with respect to an Option Period determined in accordance with Section 9 of the Plan.

 

“Section 423”:  Section 423 of the Code and the regulations thereunder.

 

“Stock”:  Common stock of the Company, par value $0.01 per share.

 

“Subsidiary”:  A “subsidiary corporation” as defined in Section 424(f) of the Code.

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EXHIBIT B

Designated Subsidiaries

 

 

The Hanover Insurance Company

 

10exhibit101-formofpurchas

                                                                 EXHIBIT 10.1                        PURCHASE AND SALE AGREEMENT          THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into  as of the Effective Date (as hereinafter defined), by and between ABP CO II (DENVER) LLC, a  Delaware limited liability company (“Seller”), and BIG ACQUISITIONS LLC, an Illinois limited  liability company (“Buyer”).                                      RECITALS:    A.    Seller is the fee simple owner of the Land.    B.    Buyer desires to acquire said land, together with the improvements located thereon and certain       other property interests related thereto, from Seller for the purchase price of Eleven Million       and No/100 Dollars ($11,000,000.00) (the “Purchase Price”).          C.    Seller is willing to convey said property to Buyer for the Purchase Price, but only upon the        terms and conditions hereinafter set forth.                                 OPERATIVE TERMS:          NOW, THEREFORE, for and in consideration of the foregoing recitals and the promises,  covenants, representations and warranties hereinafter set forth, the sum of One Hundred Dollars  ($100.00) and other good and valuable consideration in hand paid by Seller to Buyer and by Buyer to  Seller upon the execution of this Agreement, the receipt and sufficiency of which are hereby  acknowledged by each of the parties hereto, the parties hereto hereby agree as follows:          1.    Recitals; Definitions.  The foregoing recitals are true and correct in all material  respects.  Capitalized terms and phrases used but not otherwise defined in the body of this Agreement  shall have the meanings ascribed to such terms and phrases in Schedule A attached hereto.          2.    Purchase and Sale.  Seller agrees to convey, transfer and assign, and Buyer agrees to  acquire, accept and assume, the Property, on the terms, conditions and provisions set forth in this  Agreement.            3.    Purchase Price.  The Purchase Price shall be due and payable as follows:                  3.1   Deposit.  Buyer shall make the Initial Deposit with Escrow Agent within  three (3) Business Days after the Effective Date.  In addition, no later than the Due Diligence Deadline  (provided that this Agreement is not sooner Terminated in accordance with the terms hereof), Buyer  shall also make the Secondary Deposit.  Notwithstanding any provision in this Agreement to the  contrary, if Buyer fails to timely make the Initial Deposit or the Secondary Deposit as provided herein,  Seller may Terminate this Agreement by notice to Buyer given no later than five (5) days following  the due date of the Initial Deposit or the Secondary Deposit, as the case may be, and any Deposit  previously paid by Buyer shall be promptly returned to Buyer.  Except as expressly otherwise set forth  herein, the Deposit shall be applied against the Purchase Price on the Closing Date and shall otherwise  be held and delivered by Escrow Agent in accordance with the provisions of Paragraph 15.   

 

                 3.2   Remainder of Purchase Price.  At Closing, Buyer shall pay to Seller an   amount equal to the difference between (a) the Purchase Price and (b) the Deposit previously or  simultaneously paid to Seller, subject to the adjustments set forth herein, in cash by wire transfer to  such account and bank as Seller shall designate in writing, to be confirmed received in Seller’s account  on or before 3:00 p.m. Eastern time on the Closing Date.              4.    Buyer’s Due Diligence and Inspection Rights; Termination Right.                    4.1   Inspection of Property.  Until Closing, and subject to the terms of   Paragraph 4.2, Seller shall provide Buyer and Buyer’s Representatives access to the Real Property,   upon reasonable prior notice at reasonable times during business hours, with the right and license to   conduct Due Diligence with respect to the Property.                    4.2   Inspection Requirements.  Buyer’s rights to conduct Due Diligence shall be   subject to the following further requirements: (a) Due Diligence inspections of the Property may only   be performed during normal business hours and Buyer must provide Seller with at least 48 hours’   prior notice of its intent to perform Due Diligence inspections of the Property; (b) Seller shall have   the right to have a representative of Seller present during any entry upon the Property by Buyer or Buyer’s   Representatives; (c) there shall be no physical testing of the Property whatsoever, including, without   limitation, any invasive sampling, boring, testing, or analysis of soils, surface water or groundwater at   the Property; (d) Buyer shall immediately return the Property to the condition existing prior to any   inspection.  Prior to any entry upon the Land, Buyer shall provide to Seller, and shall cause any of   Buyer’s Representatives entering upon the Land to provide to Seller, evidence of insurance which   complies with the requirements of Schedule B attached hereto.  Notwithstanding any provision in this   Agreement to the contrary, except in connection with the issuance of a standard “zoning letter” with   respect to the Property or the preparation of a third-party zoning report, neither Buyer nor any Buyer’s   Representative shall contact any governmental official or representative regarding hazardous materials   on, or the environmental condition of, the Property, or the status of compliance of the Property with   zoning, building code or similar Laws, without Seller’s prior written consent thereto, which consent   Seller may withhold in its sole and absolute discretion.  In addition, Seller shall be entitled to at least   two (2) Business Days’ prior notice of the intended contact and to have a representative present when   Buyer or any Buyer’s Representative has any such contact with any governmental official or   representative.                  4.3   Title Examination.                      A.    Title Objections.  Seller shall order the Title Commitment within five (5)   Business Days after the Effective Date.  Buyer shall have until 10 days after delivery of the Title   Commitment to notify Seller of any Title Objections.  If Buyer fails to notify Seller of any Title   Objections on or before the day that is 10 days after delivery of the Title Commitment then,   notwithstanding any other provisions set forth herein, such failure to notify Seller shall constitute a   waiver of such right to object to such matters existing as of the Effective Date.  Any such Title   Objection so waived (or deemed waived) by Buyer shall be deemed to constitute a Permitted Title   Exception and the Closing shall occur as herein provided without any reduction of or credit against   the Purchase Price.                B.    Cure of Title Matters.  At Closing, Seller shall Remove or cause to be   Removed any Title Objections to the extent (and only to the extent) that the same constitute Required                                          2 

 

     Removal Items.  In addition, Seller may elect (but shall not be obligated) to Remove or cause to be   Removed any other Title Objections, and, with respect thereto, Seller may notify Buyer on or before   the Title Cure Deadline whether Seller elects to Remove the same (and the failure to provide such  notice on or before the Title Cure Deadline shall be deemed to constitute an election of Seller not to   effect any such cure).                    C.    Buyer’s Right To Terminate.  If any such Title Objection is not so cured on   or before the Title Cure Deadline, then Buyer may Terminate this Agreement by notice to Seller within   five (5) Business Days after the Title Cure Deadline.  Failure of Buyer to respond within such period   shall be deemed an election by Buyer to waive such Title Objections and proceed to Closing.  Any   such Title Objection so waived (or deemed waived) by Buyer shall be deemed to constitute a Permitted   Title Exception and the Closing shall occur as herein provided without any reduction of or credit   against the Purchase Price.                  D.    Pre-Closing “Gap” Defects.  Whether or not Buyer shall have furnished to   Seller any notice of Title Objections before the Due Diligence Deadline, Buyer may at or prior to   Closing notify Seller of any defects in title arising between the Due Diligence Deadline and the Closing   Date.  With respect to any Title Objections set forth in such notice, Buyer shall have the same rights   as those which apply to any notice of defects in title resulting from a notice of title defects by Buyer   on or before the Due Diligence Deadline and Seller shall have the same rights and obligations to cure   the same at or prior to Closing.  If necessary, the date for Closing shall be automatically extended (by   not more than 15 days) to allow Seller to cure such pre-closing “gap” defects.                    4.4   As-Is, Where-Is, With All Faults Sale.  Buyer shall conduct such Due   Diligence as Buyer deems necessary or appropriate prior to the Due Diligence Deadline, and shall   independently confirm to its satisfaction all information that it considers material to its purchase of   the Property or the Transaction.  Accordingly, the Property shall be sold, and Buyer shall accept   possession of the Property on the Closing Date, “AS IS, WHERE IS, WITH ALL FAULTS”, with   no right of setoff or reduction in the Purchase Price.  Without limiting the foregoing, except for Seller’s   Warranties, none of the Seller Parties have or shall be deemed to have made any verbal or written   representations, warranties, promises or guarantees (whether express, implied, statutory or otherwise)   to Buyer with respect to the Property; any matter set forth, contained or addressed in the Documents   (including, but not limited to, the accuracy and completeness thereof); or the results of Buyer’s Due   Diligence.  In addition, Buyer expressly understands and acknowledges that any documents made   available to Buyer may not be complete in all respects and that Seller may not have complete   information concerning the Property in Seller’s possession or control.  Buyer acknowledges that all   such information must be verified independently during Due Diligence.  In addition, Buyer expressly   understands and acknowledges that it is possible that unknown Liabilities may exist with respect to   the Property and that Buyer explicitly took that possibility into account in determining and agreeing   to the Purchase Price, and that a portion of such consideration, having been bargained for between   the parties with the knowledge of the possibility of such unknown Liabilities shall be given in exchange   for the existence of any and all such Liabilities.  In furtherance of the foregoing commitments, Buyer   shall execute and deliver to Seller at the Closing, an As Is Agreement as required by Paragraph 6.3.                4.5   Termination Right.  Buyer may, at any time prior to the Due Diligence   Deadline, Terminate this Agreement by notice to Seller if Buyer, in its sole and absolute discretion,   determines not to proceed with the Transaction or is not satisfied with any matters relating to the   Property.  If, at or prior to the Due Diligence Deadline, Buyer has not given Seller a termination notice                                          3 

 

     as aforesaid, then Buyer shall be deemed to have accepted the condition of the Property (subject to   Seller’s compliance with the representations, warranties and covenants of this Agreement, and the   conditions set forth in Paragraph 10) and shall thereafter have no right to Terminate this Agreement   on account of such Due Diligence termination right under this Paragraph 4 and, except as set forth in   Article 9 or Paragraphs 10.1.C. and 12.2 hereinbelow, Buyer shall not be entitled to the return of the  Deposit.  If after the Due Diligence Deadline Buyer conducts further Due Diligence, Buyer  acknowledges and agrees that Buyer shall have no further right to terminate this Agreement with  respect to such further Due Diligence or otherwise in accordance with this Paragraph 4 after the Due  Diligence Deadline.                4.6   Underground Storage Tank.  Seller has informed Buyer, and Buyer   acknowledges, that the Property includes one (1) operational 10,000 gallon underground tank used for  the storage of diesel fuel.  Buyer acknowledges, subject to Buyer’s right to perform Due Diligence  pursuant to this Agreement and to terminate this Agreement pursuant to the foregoing paragraph,  that it is a material factor in Seller’s acceptance of the Purchase Price that Buyer agree to accept said  tank with the Property.            5.    Seller’s Covenants.  Between the Effective Date and the Closing Date:                5.1   No Alteration of Title.  Seller shall not transfer or further alter or encumber   (which shall include entering into any new lease of all or part of the Real Property; permitting any new   sublease of all or part of the Real Property or consenting to any modification of any existing sublease   of all or part of the Real Property) in any way Seller’s title to the Property as it exists as of the Effective   Date without written notice to, and the prior written consent of, Buyer.  If Buyer fails to object in   writing to any such proposed instrument within three (3) Business Days after receipt of the   aforementioned notice, Buyer shall be deemed to have approved the proposed instrument.  Buyer’s   consent shall not be unreasonably withheld or delayed with respect to any such instrument that is   proposed prior to the Due Diligence Deadline.                  5.2   Status of Property.  Seller shall maintain and keep the Property in a manner   consistent with Seller’s past practices with respect to the Property, and shall maintain in force the   insurance coverage consistent with Seller’s insurance coverage practices as of the Effective Date.          6.    Closing.  The actual day of Closing shall be mutually agreed to by the parties.  If no   such selection is timely made, the Closing shall be held on the Closing Deadline.                  6.1   Closing Mechanics.  Buyer and Seller shall conduct an escrow-style closing   through the Escrow Agent so that it will not be necessary for any party to attend the Closing.                  6.2   Seller’s Deliveries.  At Closing, Seller shall deliver or cause to be delivered   the following items:                  A.    Deed.  The Deed.                  B.    Withholding and Tax Certificate.  A certificate with respect to Section 1445   of the Internal Revenue Code stating whether or not Seller is a foreign person as defined in said   Section 1445 and applicable regulations thereunder.                                             4 

 

                 C.    Affidavit of Title.  An Affidavit of Title with respect to liens and title matters   in substantially the form of Exhibit B.                  D.    Closing Statement.  A Closing Statement Agreement in the form of   Exhibit C attached hereto and incorporated herein by this reference.  Seller and Buyer shall authorize   and instruct the Escrow Agent to file, as the “reporting person,” Internal Revenue Service Form 1099-  B (“Proceeds from Real Estate, Broker, and Barter Exchange Transactions”), if and as required by   Section 6045(d) of the Code.                E.    Evidence of Authority.  If requested by the Title Company, evidence that   Seller has the requisite power and authority to execute and deliver, and perform under, this Agreement   and all Closing Documents.                  F.    Transfer Tax Declarations.  To the extent applicable, duly completed real   estate state, county and local transfer tax declarations.                  G.    Lease.  Tenant’s counterpart of the Lease.                  H.    Assignment.  Seller’s counterpart of the Assignment.                I.    Bring-Down Certificate.  A reaffirmation of Seller’s Warranties in the form   of Exhibit G attached hereto, to which shall be attached a current representation exception schedule   identifying all exceptions to Seller’s Warranties then applicable.                J.    Other Instruments.  Such other instruments or documents as may be   necessary to effect or carry out the purposes of this Agreement, subject to Seller’s prior approval   thereof, which approval shall not be unreasonably withheld or delayed.                K.    Memorandum of Lease. Tenant’s counterpart of the Memorandum of Lease.                L.    SNDA.  Tenant’s counterpart of SNDA.                M.    Other State or Local Specific Requirements. At Closing Seller shall execute   and deliver to Escrow Agent a Colorado Form DR-1083 and Form TD-1000 (Real Property Transfer  Declaration).                  6.3   Buyer’s Deliveries.  At the Closing, Buyer shall deliver or cause to be   delivered to Seller the following:                A.    Net Purchase Price.  The net Purchase Price due at Closing under this   Agreement.                  B.    As Is Agreement.  The As Is Agreement of Buyer in the form of Exhibit D   attached hereto.                C.    Bring-Down Certificate.  A reaffirmation of the representations, warranties   and covenants set forth in Paragraph 8.5 hereof in the form of Exhibit H attached hereto.                                              5 

 

                 D.    Closing Document Counterparts.  Executed counterparts of any of the   Closing Documents described in Paragraph 6.2 which are also to be signed by Buyer.                E.    Landlord Agreement.  The Landlord Agreement, executed by Buyer and   Landlord.                F.    Other Instruments.  Such other funds, instruments or documents as may be   necessary to effect or carry out the purposes of this Agreement, subject to Buyer’s prior approval   thereof, which approval shall not be unreasonably withheld or delayed.                G.    Lease. Landlord’s counterpart of the Lease.                H.    Memorandum of Lease. Landlord’s counterpart of the Memorandum of   Lease.                I.    SNDA.  Buyer’s and Lender’s counterparts to the SNDA.                J.    Leasehold Policy Requirements. Such instruments or documents as the   Title Company may reasonably require of Landlord in order to issue a leasehold policy insuring   Tenant’s interest under the Lease including, but not limited to, copies of the lease agreements   evidencing the interest of Landlord in the Property and documents evidencing the legal existence and   organizational power and authority of Landlord to enter into such agreements.                 6.4   Buyer’s Ability to Close.  Buyer covenants to Seller that Buyer shall, as of   the Closing Date, have sufficient immediately available funds (through financing sources or otherwise)   to pay the balance of the net Purchase Price required pursuant to the foregoing subparagraph 6.3(A).          7.    Prorations and Closing Costs.                    7.1   Prorations.  The parties acknowledge that there shall be no prorations of any   expense items with respect to the Property at Closing, all such items being addressed in the Lease.                  7.2   Seller’s Closing Costs.  Seller shall pay the following: (a) the fees and   expenses of Seller’s attorneys; (b) the costs (including recording costs) of any cure of title defects   required of Seller hereunder; (c)  all recording fees imposed in connection with the recording of the  Memorandum of Lease; (d) one-half of all escrow agent fees (if any are charged in connection with  this Transaction), and (e) the costs, expenses and premiums for the Title Commitment and the Title   Policy (including all examinations and reports in connection therewith).                   7.3   Buyer’s Closing Costs.  Buyer shall pay the following: (a) all costs of Buyer’s   Due Diligence, (b) the fees and expenses of Buyer’s attorneys, (c) all costs related to any financing to   be obtained by Buyer; (d) all transfer, documentary, excise, recording or other taxes, fees or   assessments imposed in connection with the recording of the Deed; (e) all recording charges due on   recordation of any Closing Documents, (f) one-half of all escrow agent fees (if any are charged in   connection with this Transaction), and (g) the costs, expenses and premiums for any extended   coverage and any endorsements to the Title Policy, any reinsurance required by Buyer, and any loan   policy of title insurance.                                           6 

 

           8.    Representations and Warranties.                8.1   Seller’s Representations and Warranties.  Seller represents and warrants to   Buyer as follows:                A.    Organization, Power and Authority.  Seller is duly organized, validly existing   and in good standing under the Laws of the State of Delaware; is, to the extent required by Law, duly   qualified to do business in the State in which the Land is located; and has all necessary power to   execute and deliver this Agreement and perform all its obligations hereunder.  Seller has the full power   and authority to enter into and perform this Agreement and the execution, delivery and performance   of this Agreement by Seller (i) has been duly and validly authorized by all necessary action on the part   of Seller, (ii) does not conflict with or result in a violation of the organizational documents of Seller,   or any judgment, order or decree of any court or arbiter in any proceeding to which Seller is a party,   and, (iii) does not conflict with or constitute a material breach of, or constitute a material default under,   any contract, agreement, loan agreement or other instrument by which Seller is bound or to which it   is a party.                    B.    No Other Agreements.  Seller has not entered into any currently effective   agreement (other than this Agreement) to sell or dispose of all or any portion of its interest in and to   the Property.  Except as disclosed in the Record Exceptions, Seller has not entered into any options,   puts, calls, rights of first offer, opportunity or refusal, or other preemptive rights to purchase or occupy   the Property which are in effect as of the Effective Date.                  C.    Possession.   As of the Effective Date, no party other than Seller and Tenant   is in possession or occupancy of the Real Property or any part thereof.                   D.    Foreign Entity.  Seller is not a “foreign person” as such phrase is defined in   Section 1445 of the United States Internal Revenue Code.                  E.    Notice of Violations.  To Seller’s knowledge, Seller has received no written   notice (i) from any governmental authority that the Property is not in material compliance with all   applicable laws, except for such failures to comply, if any, which have been remedied; or (ii) from any  insurance company or underwriter of any defect that would adversely affect the insurability of the  Property or cause an increase in insurance premiums with respect to the Property.                  F.    Condemnation.  To Seller’s knowledge, Seller has not received any written   notice of any (i) pending, contemplated, threatened or anticipated condemnation of any part of the   Real Property, or (ii) widening, change of grade or limitation on the use of streets abutting the Land.                  G.    No Bankruptcy.  Seller has not (A) commenced a voluntary case, or, to   Seller’s knowledge, had entered against it a petition, for relief under any federal bankruptcy act or any   similar petition, order or decree under any federal or state Law relative to bankruptcy, insolvency or   other relief for debtors, (B) caused, suffered or consented to the appointment of a receiver, trustee,   administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or   non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or   (C) made an assignment for the benefit of creditors.                                              7 

 

                 H.    Pending Actions or Proceedings.  There are no actions or proceedings   pending or, to Seller’s knowledge, threatened against Seller or relating to the Property which, if decided   adversely, would impair Seller’s ability to perform its obligations under this Agreement or prevent the   use of the Land for the purposes for which Tenant currently uses it.                  I.    Other Prohibitions.  Neither Seller nor, to Seller’s knowledge, any person   owning a direct interest in Seller (i) is included on any Government List; (ii) has been determined by   competent authority to be subject to the prohibitions contained in Presidential Executive Order No.  133224 (September 23, 2001) or in any enabling or implementing legislation or other Presidential  Executive Orders in respect thereof; (iii) has been previously indicted for or convicted of any felony  involving a crime or crimes of moral turpitude or for any offense under the criminal laws against  terrorists, the criminal laws against money laundering, the Bank Secrecy Act, as amended, the Money  Laundering Control Act of 1986, as amended, or the Uniting and Strengthening America by Providing  Appropriate Tools Required to Intercept and Obstruct Terrorists (USA PATRIOT ACT) Act of 2001,  Public Law 107-56 (October 26, 2001), as amended; or (iv) to Seller’s knowledge, is currently under  investigation by any governmental authority for alleged criminal activity.                    J.    Municipal Inspections.  To Seller’s knowledge, there are no formally   required municipal inspections of the Property required in connection with the delivery of the Deed   (for avoidance of doubt, Seller makes no representation or warranty concerning any inspection that   may be required as a result of Buyer’s Due Diligence).  In the event the foregoing Seller’s Warranty is   inaccurate, untrue or incorrect, Seller shall have the right to cure such misrepresentation or breach by   obtaining the required municipal inspection in accordance with the notice and cure provisions set   forth in Section 8.3 below.                8.2   Seller’s Warranties Deemed Modified.  Because Buyer’s primary reliance   on the status of the matters addressed by Seller’s Warranties is Buyer’s own Due Diligence, to the   extent that Buyer knows prior to the Due Diligence Deadline that Seller’s Warranties are inaccurate,   untrue or incorrect in any way, such Seller’s Warranties shall be deemed modified to reflect Buyer’s   knowledge.  As used herein, “knows,” “knew” or “knowledge” means with respect to any statement   following such phrase that to the date hereof no information has come to the attention of any such   person or such person’s agents, which would cause such person or its agents to believe that such   statement is not true and correct.                  8.3   Claims of Breach Prior To Closing.  If at or prior to the Closing, Seller   obtains actual knowledge that any Seller’s Warranty is untrue, inaccurate or incorrect in any material   respect, Seller shall give Buyer notice thereof within five (5) Business Days of obtaining such   knowledge (but, in any event, prior to the Closing).  If at or prior to the Closing Buyer or any Buyer’s   Representative obtains actual knowledge that any Seller’s Warranty is untrue, inaccurate or incorrect   in any material respect, Buyer shall give Seller notice thereof within five (5) Business Days of obtaining   such knowledge (but, in any event, prior to the Closing).  In either such event, Seller shall have the   right to cure such misrepresentation or breach and shall be entitled to a reasonable adjournment of   the Closing (not to exceed 15 days) to attempt such cure.  If any Seller’s Warranty is untrue, inaccurate   or incorrect in any material respect as of the date made, and Seller is unable to so cure such   misrepresentation or breach, then Buyer, as its sole remedy, shall elect either (a) to waive such   misrepresentation or breach and consummate the Transaction without any reduction of or credit   against the Purchase Price, or (b) to Terminate this Agreement by notice given to Seller no later than   five (5) days after the end of such cure period, in which event the Deposit shall be returned to Buyer                                          8 

 

     and Seller shall reimburse to Buyer, within twenty (20) days after Seller’s receipt of documentation   thereof, the Buyer’s Transaction Costs.                  8.4   Survival and Limits on Buyer’s Claims.  Seller’s Warranties shall survive the   Closing and not be merged therein for the Survival Period and Seller shall only be liable to Buyer  hereunder for a breach of Seller’s Warranties made herein or in any of the documents executed by  Seller at the Closing with respect to which a claim is made by Buyer against Seller in writing, specifying  in reasonable detail the circumstances giving rise to the alleged breach, within the Survival Period.    Anything in this Agreement to the contrary notwithstanding, the maximum aggregate liability of Seller   for breaches of Seller’s Warranties shall be subject to Seller’s Liability Limit.  Notwithstanding the   foregoing, however, if the Closing occurs, Buyer hereby expressly waives, relinquishes and releases   any right or remedy available to it at law, in equity, under this Agreement or otherwise to make a claim   against Seller for damages that Buyer may incur, or to rescind this Agreement and the Transaction, as   the result of any of Seller’s Warranties being untrue, inaccurate or incorrect if (a) Buyer knew that such   representation or warranty was untrue, inaccurate or incorrect at the time of the Closing (Buyer’s   remedy being as set forth in Paragraph 8.3), or (b) Buyer’s damages as a result of such representations   or warranties being untrue, inaccurate or incorrect are reasonably estimated to aggregate less than   $37,500.00.                8.5   Buyer’s Representations and Warranties.  Buyer represents and warrants   to Seller as follows:                A.    Organization, Power and Authority.  Buyer is duly organized, validly   existing and in good standing under the Laws of the State of Delaware; is, to the extent required by   Law, duly qualified to do business in the State in which the Land is located; and has all necessary   power to execute and deliver this Agreement and perform all its obligations hereunder.  Buyer has the   full power and authority to enter into and perform this Agreement and the execution, delivery and   performance of this Agreement by Buyer (i) has been duly and validly authorized by all necessary   action on the part of Buyer, (ii) does not conflict with or result in a violation of the organizational   documents of Buyer, or any judgment, order or decree of any court or arbiter in any proceeding to   which Buyer is a party, and (iii) does not conflict with or constitute a material breach of, or constitute   a material default under, any contract, agreement or other instrument by which Buyer is bound or to   which it is a party.  There are no lawsuits pending against Buyer or, to Buyer’s knowledge, threatened,   the outcome of which could adversely affect Buyer’s ability to purchase the Property or otherwise   perform its obligations under this Agreement.                B.    Sophisticated Buyer.   Buyer is experienced in the ownership and operation   of properties like and in the locale of the Property, and has experience in the acquisition, ownership   and operation of properties similar to the Property.  Buyer warrants and represents that it has the   ability through its own employees, or through agents, independent contractors, consultants or other   experts with whom it has a relationship, to evaluate fully the material characteristics of the Property   and to assess fully all issues pertaining to title to the Real Property, the value of the Property, the rights   and liabilities of Buyer as the successor to Seller, the structural integrity and soundness of all   improvements and structures located on the Real Property, the environmental condition of the   Property, and the compliance of the Property with all Laws.  Accordingly, Buyer acknowledges that,  except for Seller’s Warranties, Buyer has not and will not rely upon any warranty, representation,  statement of fact, or other information made by or furnished by or on behalf of Seller or any of its   affiliates.                                           9 

 

                    C.    Funds.   Buyer has sufficient funds in immediately available cash to pay the   Deposit.                  D.    No Bankruptcy.  Buyer has not (A) commenced a voluntary case, or had   entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order   or decree under any federal or state Law relative to bankruptcy, insolvency or other relief for debtors,  (B) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator,  liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold,  administer and/or liquidate all or substantially all of its assets, or (C) made an assignment for the   benefit of creditors.                E.    Other Prohibitions.  Neither Buyer nor any person controlling Buyer (i) is   included on any Government List; (ii) has been determined by competent authority to be subject to   the prohibitions contained in Presidential Executive Order No. 133224 (September 23, 2001) or in   any enabling or implementing legislation or other Presidential Executive Orders in respect thereof;   (iii) has been previously indicted for or convicted of any felony involving a crime or crimes of moral   turpitude or for any offense under the criminal laws against terrorists, the criminal laws against money   laundering, the Bank Secrecy Act, as amended, the Money Laundering Control Act of 1986, as   amended, or the Uniting and Strengthening America by Providing Appropriate Tools Required to   Intercept and Obstruct Terrorists (USA PATRIOT ACT) Act of 2001, Public Law 107-56 (October   26, 2001), as amended; or (iv) to Buyer’s knowledge, is currently under investigation by any   governmental authority for alleged criminal activity.            9.    Casualty and Condemnation.                    9.1.  Minor Damage.  In the event of loss or damage to the Property or any   portion thereof which is not “major” (as hereinafter defined), then Seller shall have the following   option:                A.    Purchase Price Reduction.  If the loss or damage is a fire or other casualty   event, but not a condemnation event, reduce the Purchase Price by an amount equal to the cost (the   “Restoration Cost”) of restoring the Property to a condition substantially identical to that of the   Property prior to the event of damage, as determined by a general contractor licensed by the State of   Colorado selected by Seller and reasonably approved by Buyer; or                B.    Assignment.  If the loss or damage is a fire or other casualty event or a   condemnation event, assign to Buyer all of Seller’s right to any claims and proceeds Seller may have   with respect to any casualty related insurance policies (including, without limitation,  rental loss   proceeds applicable to the period on and after the Closing) or condemnation awards relating to the   premises in question, and the Purchase Price shall be reduced by an amount equal to the uninsured   portion of the Restoration Cost (including, without limitation, the deductible amount under Seller’s   insurance policy); or                  C.    Neither of the Foregoing.  Elect neither to reduce the Purchase Price nor   assign insurance proceeds and/or condemnation awards pursuant to the foregoing subparagraphs A.   and B.                                             10 

 

     Seller shall make the elections required by this Paragraph 9.1 by written notice delivered to Buyer   within ten (10) days following the date on which the Restoration Cost is determined and, if Seller fails   to deliver its written election within such ten (10) day period, then Seller shall be deemed to have made   the election under subparagraph C. above.  If Seller makes an election under the foregoing  subparagraphs A. or B., then this Agreement shall remain in full force and effect and the parties shall  proceed to Closing as contemplated by this Agreement; provided that Seller shall reduce the Purchase  Price and/or assign insurance and/or condemnation proceeds as provided in the foregoing  subparagraphs A. or B., as applicable.  However, if Seller makes (or is deemed to have made) the  election under subparagraph C. above, then Buyer shall have the right to Terminate this Agreement  by written notice delivered to Seller within five (5) days after receiving Seller’s election (or deemed  election), in which event Buyer shall receive a refund of the Deposit (unless such loss or damage is  caused by or contributed to by Buyer in which event Buyer shall not be entitled to a return of the  Deposit) and neither party shall have any further obligation to the other under this Agreement (except  for those obligations which expressly survive the termination hereof).                  9.2.  Major Damage.  In the event of a “major” loss or damage, Buyer may   terminate this Agreement by written notice to Seller, in which event the Deposit shall be returned to   Buyer unless such loss or damage is caused by or contributed to by Buyer in which event Buyer shall   not be entitled to a return of the Deposit.  If Buyer does not elect to Terminate this Agreement within   ten (10) days after Seller sends Buyer written notice of the occurrence of major loss or damage, then   Buyer shall be deemed to have elected to proceed with Closing.                  9.3.  Definition of “Major” Loss or Damage.  For purposes of the foregoing   Paragraphs 9.1 and 9.2, “major” loss or damage refers to the following:  (a) Any loss or damage to the   Property or any portion thereof such that the cost of restoring the premises in question to a condition   substantially identical to that of the premises in question prior to the event of damage would be, in   the opinion of an architect selected by Seller and reasonably approved by Buyer, equal to or greater   than Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00), (b) Any loss that is not fully   covered by insurance, and (c) with respect to condemnation, any improvements or access to the   Property or more than ten percent (10%) of the Land is condemned or taken or threatened to be   condemned or taken.          10.   Other Conditions to Closing.  The obligations of Buyer and Seller to close the   Transaction shall be further subject to the satisfaction at or prior to Closing of the conditions   precedent set forth in this Paragraph 10.                    10.1  Conditions to Buyer’s Obligations.  The conditions precedent to Buyer’s   obligations at Closing referenced above are as follows, any or all of which may be waived by Buyer, at   its sole option:                  A.    Representations.  Seller’s Warranties, subject to Paragraphs 8.2 and 8.3, shall   be true and correct in all material respects on and as of the Closing Date, except as modified in a   manner permitted by this Agreement, as if made on and as of such date except to the extent that they   expressly relate to an earlier date.                  B.    Seller Compliance.  Seller shall have performed all of the covenants,   undertakings and obligations under this Agreement to be performed or complied with by Seller at or   prior to the Closing.                                          11 

 

                    C.    Title Policy.  At Closing, Seller shall have conveyed title to the Real Property   as will enable the Title Company to issue the Title Policy (or a specimen or proforma policy thereof   or “marked” Title Commitment) to Buyer subject only to the Permitted Title Exceptions and   consistent with Paragraph 4.3 hereof.  If the condition set forth in this subparagraph C. has not been   satisfied as of the Closing Date, and has not been waived by Buyer as of such date, Buyer may, as its   sole and exclusive remedy, elect to Terminate this Agreement by notice to Seller and receive a return   of the Deposit.                    10.2  Conditions to Seller’s Obligations.  The conditions precedent to Seller’s   obligations at Closing referenced above are as follows, any or all of which may be waived by Seller, at   its sole option:                  A.    Representations.  Buyer’s warranties set forth in Paragraph 8.5 shall be true   and correct in all material respects on and as of the Closing Date, except as modified in a manner   permitted by the Agreement, as if made on and as of such date except to the extent that they expressly   relate to an earlier date.                  B.    Buyer Compliance.  Buyer shall have performed all of the covenants,   undertakings and obligations to be performed or complied with by Buyer at or prior to the Closing.                  10.3  Conclusive Waiver of Conditions.  By closing the Transaction, Seller and   Buyer shall be conclusively deemed to have waived the benefit of any remaining unfulfilled conditions   set forth in Paragraphs 10.1 and 10.2, respectively.              11.   Other Transaction Issues.                  11.1  Brokers.  Each party represents to the other that such party has not incurred   any obligation to any broker or real estate agent with respect to the purchase or sale of the Property   or the lease of the Real Property.  Seller and Buyer each hereby (a) represent and warrant to the other   that it has not employed, retained or consulted any other broker, agent, or finder in carrying on a   negotiation in connection with this Agreement or the Transaction, and (b) indemnifies and agrees to  hold the other harmless from and against any and all claims, demands, causes of action, debts,  liabilities, judgments and damages (including costs and reasonable attorneys’ fees actually incurred in  connection with the enforcement of this indemnity) which may be asserted or recovered against the  indemnified party on account of any brokerage fee, commission or other compensation arising by  reason of the indemnitor’s breach of this representation and warranty.                11.2  Confidentiality.  Buyer and Seller, for the benefit of each other, hereby agree   that they will not release or cause or permit to be released, and will use best efforts to prevent the   Buyer’s Representatives and Seller’s Representatives, respectively, from releasing or causing or   permitting the release of, any press notices, publicity (oral or written) or advertising promotion relating   to, or otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner   whatsoever, the terms, conditions or substance of this Agreement or the Transaction.  The foregoing   shall not preclude either party from (a) discussing the substance or any relevant details of the   transactions contemplated in this Agreement with any of its representatives, employees, agents or   consultants, or the Title Company; (b) complying with any Laws applicable to such party, including,   without limitation, governmental regulatory, disclosure, tax and reporting requirements; (c) disclosing                                          12 

 

     the terms of the Transaction to the extent necessary in connection with any tax appeal either party   may pursue with respect to the Property; or (d) disclosing the terms of the Transaction to the extent   necessary in written filings, evidence or testimony made or given in connection with any court   proceedings either party may pursue in the event of the other party’s alleged default hereunder.  Buyer   and Seller shall indemnify and hold the other harmless from and against any and all Liabilities suffered   or incurred by the indemnified party and arising out of or in connection with a breach by Buyer or   Seller, as the case may be, of the provisions of this Paragraph.  The obligations of Buyer contained in   this Paragraph shall survive the Closing or the earlier termination of this Agreement; provided,   however, that Buyer shall be permitted to announce the Transaction in a press release after Closing,   the substance of which release shall be subject to Seller’s prior review and approval, which approval   shall not be unreasonably withheld.                   11.3  Indemnity.  Buyer hereby agrees to indemnify, defend, and hold Seller and   each of the other Seller Parties free and harmless from and against any and all Liabilities (including   reasonable attorneys’ fees, expenses and disbursements) arising out of or resulting from the entry on   the Property and/or the conduct of any Due Diligence by Buyer or any of Buyer’s Representatives at   any time prior to the Closing; provided, however, that the foregoing indemnity shall not apply to any   Liabilities to the extent such Liabilities arise out of the negligence or intentional acts of Seller or the   mere discovery by Buyer of a pre-existing condition at the Property.  The foregoing indemnity shall   survive the Closing (and not be merged therein) or any earlier termination of this Agreement.                11.4  Tax Appeals.  Seller shall have the right to continue and to control the   progress of and to make all decisions with respect to any contest of the real estate taxes and personal   property taxes for the Property due and payable during any Tax Year prior to the Closing Tax   Year.  Subject to the terms and conditions of the Lease, the lessee under the Lease shall have the right   to continue and to control the progress of and to make all decisions with respect to any contest of the   real estate taxes and personal property taxes for the Property due and payable during the Closing Tax   Year, and Seller shall assign to the lessee at Closing all of its rights to continue any such appeal.  Buyer   and Seller agree to cooperate with each other and to execute any and all documents reasonably   requested in furtherance of the foregoing, at no out-of-pocket cost or expense to Buyer.  The  provisions of this paragraph shall survive the Closing.            12.   Default at or Prior to Closing.                  12.1  Buyer Default.  Except as set forth hereinbelow, if Buyer defaults in the   observance or performance of its covenants and obligations hereunder, or in the event of any breach   by Buyer of any of the representations and warranties set forth in Paragraph 8.5, and such default or   breach continues for five (5) Business Days after the date Seller gives notice demanding cure thereof,   Seller shall be entitled, as its sole and exclusive remedy therefor, to Terminate this Agreement by  notice to Buyer of such termination and to receive payment of the Deposit as full liquidated damages  for such default or breach of Buyer, the parties hereto acknowledging the difficulty of ascertaining the  actual damages in the event of such a default or breach, that it is impossible more precisely to estimate  the damages to be suffered by Seller upon Buyer’s default or breach, that such forfeiture of the Deposit  is intended not as a penalty, but as full liquidated damages and that such amount constitutes a   reasonable good faith estimate of the potential damages arising therefrom, it being otherwise difficult   or impossible to estimate Seller’s actual damages which would be suffered by Seller in the event of   default or breach by Buyer.  Except with respect to any right, obligation or liability which survives   Closing or termination of this Agreement, including any indemnification provisions set forth in this                                          13 

 

     Agreement, and except as set forth in Paragraph 14.17, Seller’s right to Terminate this Agreement and  receive payment of the Deposit as full liquidated damages, are Seller’s sole and exclusive remedies in  the event of default or breach hereunder by Buyer, and Seller hereby waives, relinquishes and releases   any and all other rights and remedies (except any that survive Closing or termination pursuant to the   express provisions of this Agreement), including, but not limited to: (A) any right to sue Buyer for   damages or to prove that Seller’s actual damages exceed the Deposit which is hereby provided Seller   as full liquidated damages, (B) any right to sue Buyer for specific performance, or (C) any other right   or remedy which Seller may otherwise have against Buyer, either at law, or equity or otherwise,   including, without limitation, the right to seek and/or receive consequential damages.                  12.2  Seller Default.  If Seller defaults in the observance or performance of its   covenants and obligations hereunder, and such default continues for five (5) Business Days after the   date Buyer gives notice demanding cure of such default, in either such event, Buyer shall be entitled,   as its sole and exclusive remedy therefor, to Terminate this Agreement by giving Seller notice of such   termination and to receive the Deposit from Escrow Agent, in which event Seller shall reimburse to   Buyer, within twenty (20) days after Seller’s receipt of reasonable documentation thereof, the Buyer’s   Transaction Costs.  Except with respect to any right, obligation or liability which survives Closing or   termination of this Agreement, including any indemnification provisions set forth in this Agreement,   Buyer’s right to so Terminate this Agreement and receive reimbursement of all Buyer’s Transaction   Costs as described in the foregoing sentence is Buyer’s sole and exclusive remedy hereunder in the   event of default hereunder by Seller, and Buyer hereby waives, relinquishes and releases any and all   other rights and remedies (except any that survive Closing or termination pursuant to the express   provisions of this Agreement), including, but not limited to: (A) any right to sue for damages (except   to compel Seller to make the reimbursement described in the foregoing sentence), (B) any right to sue   Seller for specific performance, or (C) any other right or remedy which Buyer may otherwise have   against Seller either at law, in equity or otherwise, including, without limitation, the right to seek and/or   receive consequential damages.          13.   Notices.  All notices, consents, approvals and other communications which may be   or are required to be given by either Seller or Buyer under this Agreement shall be properly given only   if made in writing and sent by (a) hand delivery; (b) a nationally recognized overnight delivery service   (such as Federal Express or UPS Next Day Air), with all delivery charges paid by the sender; or (c) by   email, with confirmed receipt from the recipient, in each instance addressed to Buyer or Seller, as   applicable, as set forth below.  Such notices shall be deemed given on the date of delivery or rejection   of delivery.  Said notice addresses are as follows (and Seller and Buyer shall have the right to designate   changes to their respective notice addresses, effective five (5) days after giving notice thereof):                                           14 

 

     If to Seller:              ABP CO II (Denver) LLC                              c/o BlueLinx Corporation                              1950 Spectrum Circle, Suite 300                              Marietta, Georgia  30067                              Attn: General Counsel                                                                     with a copy to:      ABP CO II (Denver) LLC                              c/o BlueLinx Corporation                              1950 Spectrum Circle, Suite 300                              Marietta, Georgia  30067                              Attn: Shyam K. Reddy,                                    Chief Administrative Officer                              Email:  shyam.reddy@bluelinxco.com                                 If to Buyer:               BIG Acquisitions LLC                              9450 W. Bryn Mawr, Suite 750                              Rosemont, Illinois 60018                              Attention: Michael W. Brennan                              E-Mail: mbrennan@brennanllc.com                                       with a copy to:      Brennan Investment Group                              9450 W. Bryn Mawr, Suite 750                              Rosemont, Illinois 60018                              Attention: Samuel A. Mandarino                              E-Mail: smandarino@brennanllc.com                                       and with a copy to:                                                                                                                                                                    Attention:                                            E-Mail:                                                        14.   General Provisions.                    14.1  Execution Necessary.  This Agreement shall not be binding upon Seller   unless fully executed and delivered by a proper official of Seller, and no action taken by Seller’s   representatives shall be deemed an acceptance of this Agreement until this Agreement has been so  executed by Seller and delivered to Buyer.                  14.2  Counterparts.  This Agreement may be executed in separate counterparts.  It   shall be fully executed when each party whose signature is required has signed at least one counterpart   even though no one counterpart contains the signatures of all of the parties to this Agreement.                  14.3  Successors and Assigns.  This Agreement shall be binding upon the parties   hereto and their respective successors and assigns and inure to the benefit of the parties hereto and   their respective permitted successors and assigns.  Buyer shall not have the right to assign or delegate   any right, duty or obligation of Buyer under this Agreement to any other party without the prior                                          15 

 

     written consent of Seller, which consent Seller may grant or withhold in its sole and absolute   discretion, and any such assignment without Seller’s consent shall be null and void ab initio.    Notwithstanding the foregoing, Buyer shall have the right to assign this Agreement to (a) an affiliate   of Buyer which is under common control with Buyer or (b) an entity owned by a corporate services   company pursuant to a corporate services agreement with either (1) Buyer or (2) any entity under   common control with Buyer.  Any such assignee so consented to by Seller or otherwise permitted   pursuant to the terms of the foregoing sentence of this paragraph shall be designated by Buyer by the   delivery to Seller of a written assignment of this Agreement pursuant to which Buyer’s obligations   hereunder are expressly assumed by such assignee, together with delivery to Seller of evidence   reasonably satisfactory to Seller of the valid legal existence of Buyer’s assignee, its qualification (if  necessary) to do business in the jurisdiction in which the Property is located and of the authority of  Buyer’s assignee to execute and deliver any and all documents required of Buyer under the terms of  this Agreement, which items shall be received by Seller not less than three (3) Business Days prior to   the Closing Date;  notwithstanding the foregoing, the exercise of such right by Buyer shall not relieve   Buyer of any of its obligations and liabilities hereunder including obligations and liabilities which   survive the Closing or the termination of this Agreement, nor shall any such assignment alter, impair   or relieve such assignee from the waivers, acknowledgements and agreements of Buyer set forth   herein, all of which are binding upon the assignee of Buyer.  In the event of any permitted assignment   by Buyer, any assignee shall assume any and all obligations and liabilities of Buyer under this   Agreement but, notwithstanding such assumption, Buyer shall continue to be liable hereunder.                  14.4  Governing Law.  This Agreement shall be governed by the Laws of the state   in which the Land is located.                14.5  Entire Agreement.  This Agreement and all the exhibits referenced herein   and annexed hereto contain the entire agreement of the parties hereto with respect to the matters   contained herein, and no prior agreement or understanding pertaining to any of the matters connected   with this Transaction shall be effective for any purpose.  Neither this Agreement nor any provision   hereof may be waived, modified, amended, discharged or terminated except by an instrument signed   by the party against whom the enforcement of such waiver, modification, amendment, discharge or   termination is sought, and then only to the extent set forth in such instrument.                  14.6  Time Is of the Essence.  TIME IS OF THE ESSENCE of the Transaction   and this Agreement.                14.7  Interpretation.  The titles, captions and paragraph headings are inserted for   convenience only and are in no way intended to interpret, define, limit or expand the scope or content   of this Agreement or any provision hereof.  If any party to this Agreement is made up of more than   one person or entity, then all such persons and entities shall be included jointly and severally, even   though the defined term for such party is used in the singular in this Agreement.  If any time period   under this Agreement ends on a day other than a Business Day, then the time period shall be extended   until the next Business Day.  This Agreement shall be construed without regard to any presumption   or other rule requiring construction against the party causing this Agreement to be drafted.  If any   words or phrases in this Agreement shall have been stricken out or otherwise eliminated, whether or   not any other words or phrases have been added, this Agreement shall be construed as if the words   or phrases so stricken out or otherwise eliminated were never included in this Agreement and no   implication or inference shall be drawn from the fact that said words or phrases were so stricken out   or otherwise eliminated.                                          16 

 

                    14.8  Survival.    The covenants, agreements, indemnities, representations and   warranties contained herein shall not survive the Closing Date or any termination of this Agreement,   except as set forth in Paragraphs 8, 11, 13 and 14, each of which shall survive the Closing or any earlier   termination of this Agreement (limited, as applicable, as set forth therein).                14.9  Exclusive Application.  Nothing in this Agreement is intended or shall be   construed to confer upon or to give to any person, firm or corporation other than Buyer and Seller   hereto any right, remedy or claim under or by reason of this Agreement.  All terms and conditions of   this Agreement shall be for the sole and exclusive benefit of the parties hereto, and such benefit may   not be assigned by Buyer except as set forth in Paragraph 14.3.                  14.10 Partial Invalidity.  If all or any portion of any of the provisions of this   Agreement shall be declared invalid by Laws applicable thereto, then the performance of said   offending provision shall be excused by the parties hereto; provided, however, that, if the performance   of such excused provision materially affects any material aspect of this Transaction and the other party   does not upon demand enter into a modification or separate agreement which sets forth in valid   fashion the covenants of such offending provision in a manner which counsel to both parties   determine is valid, then the party hereto for whose benefit such excused provision was inserted in this  Agreement shall have the right, exercisable by notice given to the other party within ten (10) days after  such provision is so declared invalid, to Terminate this Agreement.                  14.11 Waiver Rights.  Buyer reserves the right to waive, in whole or in part, any   provision hereof which is for the benefit of Buyer.  Seller reserves the right to waive, in whole or in   part, any provision hereof that is for the benefit of Seller.                  14.12 No Implied Waiver.  Except as otherwise expressly provided in this   Agreement, no waiver by Seller or Buyer of any provision hereof shall be deemed to have been made   unless expressed in writing and signed by such party, and no delay or omission in the exercise of any   right or remedy accruing to Seller or Buyer upon any breach under this Agreement shall impair such   right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring.    The waiver by Seller or Buyer of any breach of any term, covenant or condition herein stated shall not   be deemed to be a waiver of any other breach, or of a subsequent breach of the same or any other   term, covenant or condition herein contained.                  14.13 Rights Cumulative.  All rights, powers, options or remedies afforded to Seller   or Buyer either hereunder or by Law shall be cumulative and not alternative, and the exercise of one   right, power, option or remedy shall not bar other rights, powers, options or remedies allowed herein   or by Law, unless expressly provided to the contrary herein.                14.14 Attorneys’ Fees.  Should either party employ an attorney or attorneys to   enforce any of the provisions hereof or to protect its interest in any manner arising under this   Agreement, or to recover damages for breach of this Agreement, the non-prevailing party in any action   pursued in a court of competent jurisdiction (the finality of which is not legally contested) shall pay to   the prevailing party all reasonable costs, damages and expenses, including attorneys’ fees, expended or   incurred in connection therewith. Such recovery shall be mandatory and shall not be in the discretion   of the court.                                             17 

 

                 14.15 Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES TRIAL BY JURY   IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION WITH   ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE   TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF   BUYER AND SELLER HEREUNDER.  THE PROVISIONS OF THIS PARAGRAPH SHALL   SURVIVE THE CLOSING (AND NOT BE MERGED THEREIN) OR ANY EARLIER   TERMINATION OF THIS AGREEMENT.                14.16 Signatures.  Signatures to this Agreement transmitted by electronic copy shall   be valid and effective to bind the party so signing.  Each party agrees to promptly deliver an execution   original to this Agreement with its actual signature to the other party, but a failure to do so shall not   affect the enforceability of this Agreement, it being expressly agreed that each party to this Agreement   shall be bound by its own signature delivered by electronic copy and shall accept the electronic copy   of the signature of the other party to this Agreement.                  14.17 No Recordation.  Seller and Buyer each agrees that neither this Agreement   nor any memorandum or notice hereof shall be recorded and Buyer shall not file any notice of   pendency or other instrument (other than a judgment) against the Property or any portion thereof in   connection herewith.  Buyer expressly acknowledges and agrees that, in the event of any breach by   Buyer of its obligations as set forth in the foregoing sentence, the provisions of Paragraph 12.1 limiting   Seller’s remedies shall not apply, and that Seller shall, in such event, be entitled to any remedy which   Seller may otherwise have against Buyer, whether at law or in equity, or otherwise, including, without   limitation, the right to seek and/or receive consequential damages.                14.18 Maximum Aggregate Liability.  Notwithstanding any provision to the   contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in   connection herewith, the maximum aggregate liability of Seller and the Seller Parties, and the   maximum aggregate amount which may be awarded to and collected by Buyer, in connection with the   Transaction, the Property, under this Agreement and under any and all documents executed pursuant   hereto or in connection herewith (including, without limitation, in connection with the breach of any   of Seller’s Warranties for which a claim is timely made by Buyer) shall not exceed Seller’s Liability   Limit.  The provisions of this section shall survive the Closing (and not be merged therein) or any   earlier termination of this Agreement.                  14.19 Exhibits and Schedules.  All exhibits and schedules referred to in, and   attached to, this Agreement are hereby incorporated herein in full by this reference.                  14.20 Oil, Gas, Water and Mineral Disclosure.                   A.    THE SURFACE ESTATE OF THE PROPERTY MAY BE OWNED  SEPARATELY FROM THE UNDERLYING MINERAL ESTATE, AND TRANSFER OF THE  SURFACE ESTATE MAY NOT INCLUDE TRANSFER OF THE MINERAL ESTATE. THIRD  PARTIES MAY OWN OR LEASE INTERESTS IN OIL, GAS, OR OTHER MINERALS UNDER  THE SURFACE, AND THEY MAY ENTER AND USE THE SURFACE ESTATE TO ACCESS  THE MINERAL ESTATE. THE USE OF THE SURFACE ESTATE TO ACCESS THE MINERALS  MAY BE GOVERNED BY A SURFACE USE AGREEMENT, A MEMORANDUM OR OTHER  NOTICE OF WHICH MAY BE RECORDED WITH THE COUNTY CLERK AND RECORDER.  THE OIL AND GAS ACTIVITY THAT MAY OCCUR ON OR ADJACENT TO THIS PROPERTY                                          18 

 

   MAY INCLUDE, BUT IS NOT LIMITED TO, SURVEYING, DRILLING, WELL COMPLETION  OPERATIONS, STORAGE, OIL AND GAS, OR PRODUCTION FACILITIES, PRODUCING  WELLS, REWORKING OF CURRENT WELLS, AND GAS GATHERING AND PROCESSING  FACILITIES. THE BUYER IS ENCOURAGED TO SEEK ADDITIONAL INFORMATION  REGARDING OIL AND GAS ACTIVITY ON OR ADJACENT TO THIS PROPERTY,  INCLUDING DRILLING PERMIT APPLICATIONS. THIS INFORMATION MAY BE  AVAILABLE FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION.                B.    Without limiting the foregoing, Buyer specifically acknowledges the mineral  rights held by Anadarko Land Corp., a Nebraska corporation, successor by merger to Union Pacific  Land Resources Corporation, as set forth in the deeds listed in that certain Mineral Ownership  Report prepared by Colorado Land and Mineral Company LLC dated November 22, 2017, a copy of  which has been provided to Buyer, as well as the restrictive covenants set forth in such deeds. Buyer  agrees that the reservations of such mineral rights and related restrictive covenants are Permitted  Title Exceptions and Buyer shall not be entitled to make Title Objections with respect thereto.                             15.   Earnest Money and Escrow Agent.  The Escrow Deposits shall be held by Escrow  Agent, in trust, and disposed of only in accordance with the following provisions:                15.1  Deposit.  Escrow Agent shall not invest the Escrow Deposits or commingle  the Escrow Deposits with any funds of Escrow Agent or others.                15.2  Delivery at Closing.  If the Closing occurs, Escrow Agent shall deliver the  Escrow Deposits to, or upon the instructions of, Buyer and Seller on the Closing Date.               15.3  Return or Delivery of Deposit Outside Closing.  Escrow Agent shall  deliver the Escrow Deposits to Seller or Buyer only in accordance with the terms of this Paragraph  15.3.  Upon receipt of a written demand for the Escrow Deposits from Buyer prior to the Due  Diligence Deadline, Escrow Agent shall promptly deliver the Escrow Deposits to Buyer.  Upon receipt  of a written demand for the Escrow Deposits from either Buyer or Seller at any time thereafter,  Escrow Agent shall give notice to the other party of such demand.  Thereafter, (a) if Escrow Agent  does not receive a written objection from the other party to the proposed payment within five (5) days  after the giving of such notice, then Escrow Agent is hereby authorized to make such payment, but  (b) if Escrow Agent does receive such written objection within such period, Escrow Agent shall  continue to hold such amount until otherwise directed by written instructions signed by Seller and  Buyer or a final judgment of a court.  In the event of any return of the Deposit to Buyer pursuant to  Paragraph 4.5, One Hundred and No/100 Dollars ($100.00) thereof shall be payable to Seller, and  such amount shall in effect constitute option money, making this Agreement binding even if any  conditions or provisions herein are entirely within the discretion or control of Buyer.                15.4  Stakeholder.  The parties acknowledge that Escrow Agent is acting solely as  a stakeholder at their request and for their convenience, that Escrow Agent shall not be deemed to be  the agent of either of the parties, and that Escrow Agent shall not be liable to either of the parties for  any action or omission on its part taken or made in good faith, and not in disregard of this Agreement,  but shall be liable for its negligent acts and for any Liabilities (including reasonable attorneys’ fees,  expenses and disbursements) incurred by Seller or Buyer resulting from Escrow Agent’s mistake of  Law respecting Escrow Agent’s scope or nature of its duties.  Seller and Buyer shall jointly and  severally indemnify and hold Escrow Agent harmless from and against all Liabilities (including                                         19 

 

   reasonable attorneys’ fees, expenses and disbursements) incurred in connection with the performance  of Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by  Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of  Escrow Agent.                15.5  Taxes.  The party receiving the Escrow Deposits (or the benefit thereof) shall  pay any income taxes on any interest earned on the Escrow Deposits.                15.6  Execution by Escrow Agent.  Escrow Agent has executed this Agreement  in order to confirm that Escrow Agent has received and shall hold the Escrow Deposits, in escrow,  and shall disburse the Escrow Deposits pursuant to the provisions of this Paragraph 15.                      [The remainder of this page has been intentionally left blank.                                                                Signatures begin on the following page.]                                                                                   20 

 

         IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the Effective  Date.                                          SELLER:                                                                            ABP CO II (DENVER) LLC,                                      a Delaware limited liability company                                                                                                                  By:     /s/ Justin B. Heineman                                            Name: Justin B. Heineman                                      Title: Vice President and Corporate Secretary                                                                            Date:   June 1, 2020                                               [Signatures continued on following page.]                                 

 

                               BUYER:                                   BIG ACQUISITIONS LLC,                 an Illinois limited liability company                                                    By:     /s/ Michael Brennan                                           Name:   Michael Brennan                                               Title:   Manager                                                      Date:   June 1, 2020                                                                              [Signatures continued on following page.]                                                     

 

         The undersigned has executed this Agreement solely to confirm its agreement to (i) hold the  Escrow Deposits in escrow in accordance with the provisions hereof and (ii) comply with the  provisions of Paragraph 15.                                          ESCROW AGENT:                                                                            FIDELITY NATIONAL TITLE INSURANCE                                      COMPANY                                                                                                                  By:     /s/ Lindsey Mann                                                                                              Name:   Lindsey Mann                                                                                                  Title:   Senior National Commercial Escrow Officer                                                                             Date:   June 1, 2020                                       

 

                                                                                                                   SCHEDULE A                                                   “Agreement” shall mean this Purchase and Sale Agreement.            “Assignment” shall mean an Assignment of Intangible Property in the form attached hereto   as Exhibit I.            “Business Day” shall mean Monday through Friday excluding holidays recognized by the  state government of the State in which the Property is located.            “Buyer” shall mean the buyer referenced in the first paragraph of this Agreement.             “Buyer’s Reports” shall mean the results of any examinations, inspections, investigations,   tests, studies, analyses, appraisals, evaluations and/or investigations prepared by or for or otherwise   obtained by Buyer or Buyer’s Representatives in connection with Buyer’s Due Diligence.            “Buyer’s Representatives” shall mean Buyer’s officers, employees, agents, advisors,   representatives, attorneys, accountants, consultants, lenders, investors, contractors, architects and   engineers.            “Buyer’s Transaction Costs” shall mean, to the extent that Buyer has provided to Seller   reasonable documentation thereof, Buyer’s reasonable actual out-of-pocket Due Diligence expenses   incurred in connection with the Transaction after the Effective Date, in an aggregate amount not to   exceed $75,000.00.            “Closing” shall mean the consummation and closing of the Transaction.            “Closing Date” shall mean the date on which the Closing occurs, which shall be on or before   the Closing Deadline.              “Closing Deadline” shall mean the date that is twenty (20) days after the Due Diligence  Deadline.          “Closing Documents” shall mean the documents and instruments delivered by Buyer and  Seller, in order to consummate the Transaction.          “Closing Tax Year” shall mean the Tax Year in which the Closing Date occurs.          “Condemnation Proceeding” shall mean any proceeding in condemnation, eminent domain  or any written request for a conveyance in lieu thereof, or any notice that such proceedings have been  or will be commenced against any portion of the Property.          “Deed” shall mean a special warranty deed in the form attached hereto as Exhibit E.          “Deposit” shall mean the sum of Two Hundred Twenty Thousand and No/100 Dollars   ($220,000.00), consisting of, collectively, the Initial Deposit of One Hundred Ten Thousand and      

 

     No/100 Dollars ($110,000.00), and the Secondary Deposit of One Hundred Ten Thousand and   No/100 Dollars ($110,000.00).            “Documents” shall mean any documents and instruments applicable to the Property or any  portion thereof that Seller or any of the other Seller Parties deliver or make available to Buyer or  Buyer’ Representatives prior to Closing or which are otherwise obtained by Buyer or Buyer’s   Representatives prior to Closing, including, but not limited to, the Title Commitment.            “Due Diligence” shall mean the investigation by Buyer and Buyer’s Representatives of the  feasibility and desirability of purchasing the Property, including all audits, surveys, examinations,  inspections, investigations, tests, studies, analyses, appraisals, evaluations, investigations and  verifications with respect to the Property, the Documents, title matters, applicable land use and zoning  Laws and other Laws applicable to the Property, the physical condition of the Property, the economic  status of the Property, and other information and documents regarding the Property, including, but  not limited to, investigations of the legal and physical status of the Property by such consultants,  engineers and architects as Buyer requires, structural review, examination of title to the Property,  preparation of a survey of the Land, and verification of all information made or to be made available  to Buyer with respect to Property.            “Due Diligence Deadline” shall mean 6:00 P.M. Eastern time on the date that is forty (40)  days after the Effective Date.           “Effective Date” shall mean the date on which Seller or Buyer shall have executed this  Agreement, as indicated under their respective signatures, whichever is the later to do so.            “Escrow Agent” shall mean the Title Company.            “Escrow Deposits” shall mean the Deposit, and any other sums (including, without   limitation, any interest earned thereon) which the parties agree shall be held in escrow hereunder.            “Government List” shall mean (1) the Specialty Designated Nationals and Blocked Persons   Lists maintained by the Office of Foreign Assets Control, United States Department of the Treasury  (“OFAC”), (2) the Denied Persons List and the Entity List maintained by the United States   Department of Commerce, (3) the List of Terrorists and List of Disbarred Parties maintained by the   United States Department of State, (4) any other list of terrorists, terrorist organizations or narcotics   traffickers maintained pursuant to any of the lists, laws, rules and regulations maintained by OFAC   pursuant to any authorizing statute, Executive Order or regulation, (5) any other similar list maintained   by the United States Department of State, the United States Department of Commerce or any other   governmental authority or pursuant to any Executive Order of the President of the United States of   America, and (6) any list or qualification of “Designated Nationals” as defined in the Cuban Assets   Control Regulations, 31 C.F.R. Part 515, as all such Government Lists may be updated from time to   time.            “Initial Deposit” shall mean an amount equal to One Hundred Ten Thousand and No/100   Dollars ($110,000.00), in immediately available funds, to the extent the same is deposited by Buyer in  accordance with the terms of Paragraph 3.1 hereof, together with any interest earned thereon.                                   Exhibit A – Page 2 of 6 

 

           “Land” shall mean all of Seller’s right, title and interest in and to that certain tract or parcel   of land located in the City and County of Denver, Colorado more particularly described on Exhibit A   attached hereto and commonly known as 3900 Uvalda Street, Denver, Colorado 80239-3438.          “Landlord” shall mean Buyer or its permitted assignee taking title to the Property as of the  Closing Date.          “Landlord Agreement” shall mean a Landlord Agreement in the form attached to the Lease   as Schedule 3.01.          “Law” shall mean any federal, state or local law, statute, ordinance, code, order, decrees, or   other governmental rule, regulation or requirement, including common law.          “Lease” shall mean a Lease Agreement by and between Landlord and Tenant, in the form  attached hereto as Exhibit F.          “Lender” shall mean, collectively, any and all parties taking a security interest in the interest   of Buyer or Landlord in the Real Property, to the extent any such security interest is not intended to   be subordinate to Tenant’s interest in the Real Property under the Lease.            “Lien” shall mean any mortgage, deed of trust, security deed, lien, judgment, pledge,   conditional sales contract, security interest, past due taxes, past due assessments, contractor’s lien,   materialmen’s lien, judgment or similar encumbrance against the Property of a monetary nature.         “Liabilities” shall mean any and all direct or indirect damages, demands, claims, payments,  problems, conditions, obligations, actions or causes of action, assessments, losses, Liens, liabilities,  costs and expenses of any kind or nature whatsoever, including, without limitation, penalties, interest  on any amount payable to a third party, lost income and profits, and any legal or other expenses  (including, without limitation, reasonable attorneys’ fees and expenses) reasonably incurred in  connection with investigating or defending any claims or actions, whether or not resulting in any  liability.          “Memorandum of Lease” shall mean a Memorandum of Lease in the form attached hereto   as Exhibit K.          “Other Interests” shall mean the following other interests of Seller in and to the Real   Property, or pertaining thereto: (a) to the extent that the same are in effect as of the Closing Date, any   licenses, permits and other written authorizations necessary for the use, operation or ownership of the   Real Property, and (b) any guaranties and warranties in effect with respect to any portion of the Real   Property as of the Closing Date; provided, however, that Other Interests shall not include any such   licenses, permits, authorizations, guaranties or warranties to the extent that said items are necessary or   desirable for Tenant’s use of and operations upon the Land following Closing pursuant to the terms   of the Lease.          “Permitted Title Exceptions” shall mean, subject to Buyer’s rights to review and make   objection to the status of title and survey as set forth in this Agreement, and the right of Buyer to   Terminate this Agreement pursuant to Paragraph 4.5 if the Due Diligence is not satisfactory, the   following: (a) all real estate taxes and assessments not yet due and payable as of the Closing Date;   (b) any Laws affecting the Property; (c) the Record Exceptions; (d) the Lease; (e) any state of facts                                  Exhibit A – Page 3 of 6 

 

     which would be disclosed by a current survey or other inspection of the Land; and (f) any other matters   approved as Permitted Title Exceptions by Buyer prior to Closing or deemed approved as Permitted   Title Exceptions pursuant to this Agreement.              “Property” shall mean the Real Property and the Other Interests.            “Purchase Price” is defined in the Recitals to this Agreement.           “Real Property” shall mean the Land, including, without limitation, (a) any and all buildings   located on the Land and all other improvements, (b) all easements appurtenant to the Land and other  easements, grants of right, licenses, privileges or other agreements for the benefit of, belonging to or  appurtenant to the Land whether or not situate upon the Land, including, without limitation, signage  rights and parking rights or agreements, all whether or not specifically referenced on Exhibit A, (c) all   sewer rights and other utility rights allocated to the Land, (d) all right, title and interest, if any, of the   owner of the Land in and to any and all strips and gores of land located on or adjacent to the Land,   and (e) all right, title and interest of the owner of the Land in and to any roads, streets and ways, public   or private, open or proposed, in front of or adjoining all or any part of the Land and serving the Land.            “Record Exceptions” shall mean all instruments recorded in the real estate records of the   County in which the Land is located which affect the status of title to the Real Property.            “Remove” with respect to any exception to title shall mean that Seller causes the Title  Company to remove or affirmatively insure over the same as an exception to the Title Policy, without   any additional cost to Buyer, whether such removal or insurance is made available in consideration of   payment, bonding, indemnity of Seller or otherwise.            “Required Removal Items” shall mean, collectively, any Title Objections to the extent (and   only to the extent) that the same (a) have not been caused by Buyer or any Buyer’s Representatives,   and (b) are either: (i) Liens evidencing monetary encumbrances (other than liens for non-delinquent   general real estate taxes or assessments) which can be Removed by payment of liquidated amounts,   but only if such Liens have been created by written instrument signed by Seller or assumed by written   instrument signed by Seller, and provided that in no event shall Seller be required to Remove any such   Lien which is not related to the operation of the Property by any method other than indemnity of   Seller in favor of the Title Company (for example, unrelated items would include a judgment against   such party in connection with its other operations;  whereas a mechanic’s lien for work on the Property   pursuant to a contract entered into by Seller would be related to Property operations), or (ii) liens or   encumbrances (including, but not limited to, Liens) created by Seller after the Effective Date.            “Secondary Deposit” shall mean an amount equal to One Hundred Ten Thousand and   No/100 Dollars ($110,000.00), in immediately available funds, to the extent the same is deposited by   Buyer in accordance with the terms of Paragraph 3.1 hereof, together with any interest earned thereon.          “Seller” shall mean the seller referenced in the first paragraph of this Agreement.          “Seller Parties” shall mean and include, collectively, (a) Seller; (b) its counsel; (c) any direct   or indirect owner of any beneficial interest in Seller, or any subsidiaries, parents or affiliates of Seller;   (d) any officer, director, employee, affiliate, principal, partner, shareholder, representative or agent of   Seller, its counsel or any direct or indirect owner of any beneficial interest in Seller or of any                                  Exhibit A – Page 4 of 6 

 

   subsidiaries, parents or affiliates of Seller; and (e) any other entity or individual affiliated or related in  any way to any of the foregoing, and their successors and assigns.          “Seller’s knowledge” or words of similar import shall refer only to the actual knowledge of  Shyam K. Reddy, Chief Administrative Officer, and Gary Cummings, and shall not be construed to  refer to the knowledge of any other Seller Party, or to impose or have imposed upon such individual  any duty to investigate the matters to which such knowledge, or the absence thereof, pertains.  There  shall be no personal liability on the part of such individual arising out of any of the Seller’s Warranties.          “Seller’s Liability Limit” shall mean an amount equal to the Purchase Price.          “Seller’s Representatives” shall mean Seller’s officers, employees, agents, advisors,  representatives, attorneys, accountants, consultants, investors, contractors, architects and engineers.         “Seller’s Warranties” shall mean Seller’s representations and warranties set forth in  Paragraph 8.1, as the same may be deemed modified or waived by Buyer pursuant to this Agreement.         “SNDA”  shall mean a commercially reasonable subordination, non-disturbance and  attornment agreement on a form provided by Lender.         “Survey” shall mean an ALTA survey of the Property prepared by a surveyor licensed in the  State in which the Property is located, to be certified to Seller and Buyer.          “Survival Period” shall mean the first 180 days after Closing.         “Tax Year” shall mean the year period commencing on January 1 of each calendar year and  ending on December 31 of each calendar year.           “Tenant” shall mean BlueLinx Corporation, a Georgia corporation.         “Terminate” shall mean the termination of this Agreement by notice from Buyer or Seller,  as applicable, as set forth this Agreement, in which event thereafter neither party hereto shall have any  further rights, obligations or liabilities hereunder except to the extent that any right, obligation or  liability set forth herein expressly survives termination of this Agreement.           “Title Commitment” shall mean the Commitment of the Title Company to issue the Title  Policy, which commitment shall include hyperlinks providing access to copies of the Record  Exceptions referenced therein.          “Title Company” shall mean Fidelity National Title Insurance Company, or such other title  insurance company as may be designated by Seller in writing from time to time.          “Title Cure Deadline” shall mean 6:00 P.M. Eastern time on that day which is 15 days after  the date on which Buyer delivers to Seller the Title Objections.          “Title Objections” shall mean any defects in title (including any Record Exceptions which  are not acceptable to Buyer) or survey (including the description of the Land) which may be revealed  by Buyer’s examinations thereof to which Buyer timely objects in accordance with the terms of  Paragraph 4.3.                                 Exhibit A – Page 5 of 6 

 

              “Title Policy” shall mean the ALTA Owner’s Policy of Title Insurance issued by the Title   Company in the amount of the Purchase Price and in the form of the Title Commitment, and   containing, unless prohibited by applicable statutes or regulations, such endorsements as Buyer may   obtain from the Title Company in the Title Commitment prior to the Due Diligence Deadline.  Buyer   shall be entitled to request that the Title Company provide extended coverage and such endorsements   (or amendments) to the Title Policy as Buyer may reasonably require, provided that (a) such extended   coverage and/or endorsements (or amendments) shall be at no cost to, and shall impose no additional   liability on, Seller, (b) Buyer’s obligations under this Agreement shall not be conditioned upon Buyer’s  ability to obtain such extended coverage or endorsements and, if Buyer is unable to obtain such   extended coverage or endorsements, Buyer shall nevertheless be obligated to proceed to close the   Transaction without reduction of or set off against the Purchase Price, and (c) the Closing shall not   be delayed as a result of Buyer’s request.            “Transaction” shall mean the purchase and sale transaction contemplated by this Agreement.                                   Exhibit A – Page 6 of 6

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