Document:

ex_10-3.htm

 

EXHIBIT 10.3

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

FORM OF

COMMON STOCK PURCHASE WARRANT

WAFERGEN BIO-SYSTEMS, INC.

	
Warrant Shares: [____]

	
Initial Exercise Date: July 7, 2010

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [______] or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on June 8, 2015 (the “Termination Date”) but not thereafter, to subscribe for and purchase from WaferGen Bio-systems, Inc., a Nevada corporation (the “Company”), up to [___] shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock.  This Warrant is issued by the Company as of the date hereof pursuant to (i) Section 1 of the Engagement Agreement, dated June 22, 2010, by and among the Company, Rodman & Renshaw, LLC and Gilford Securities Incorporated and (ii) Section 4(2) of the Securities Act and Rule 506 promulgated thereunder.

Section 1.             Definitions.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated July 1, 2010, among the Company and the purchasers signatory thereto.

  

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Section 2.             Exercise.

a)           Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto.  Within three (3) Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

b)           Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $1.50, subject to adjustment hereunder (the “Exercise Price”).

c)           Cashless Exercise.  If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder and all of the Warrant Shares are not then registered for resale by Holder into the market at market prices from time to time on an effective registration statement for use on a continuous basis (or the prospectus contained therein is not available for use), then] this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

 

 

  

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(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise. 

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

d)           Mechanics of Exercise.

i.      Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (including by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”).  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(d)(vi) prior to the issuance of such shares, having been paid.

  

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ii.      Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

iii.      Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

iv.      Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.  For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000.  The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree

  

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of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

v.      No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

vi.      Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

vii.      Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

e)           Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other  Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its

  

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Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.  To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply.  Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

  

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Section 3.             Certain Adjustments.

a)           Stock Dividends and Splits.  If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

b)           [RESERVED]

c)           Rights Upon Distribution of Assets.  If at any time or from time to time the holders of Common Stock of the Company (or any shares of stock or other securities at the time receivable upon the exercise of this Warrant) shall have received or become entitled to receive, without payment therefore:

i.      Common Stock or any shares of stock or other securities which are at any time directly or indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution (other than a dividend or distribution covered in Section 3(a) above);

ii.      any cash paid or payable otherwise than as a cash dividend; or

iii.      Common Stock or additional stock or other securities or property (including cash) by way of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement (other than shares of Common Stock pursuant to Section 3(a) above);

then and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled to receive, in addition to the number of shares of Common Stock receivable thereupon, and without payment of any additional consideration therefor, the

  

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amount of stock and other securities and property (including cash in the cases referred to in clauses (ii) and (iii) above) which such Holder would hold on the date of such exercise had such Holder been the holder of record of such Common Stock as of the date on which holders of Common Stock received or became entitled to receive such shares or all other additional stock and other securities and property.

d)           [RESERVED]

e)           Fundamental Transaction.  If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person (but excluding a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation of the Company), (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock

  

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are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving a person or entity not traded on a national securities exchange, including, but not limited to, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market,] the Company or any Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction.  “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date.  The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder.  Upon the occurrence of any such Fundamental Transaction, the Successor

  

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Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

f)           Calculations.  All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

g)           Notice to Holder.

i.      Adjustment to Exercise Price.  Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

ii.      Notice to Allow Exercise by Holder.  If during the term in which Warrant may be Exercised by the Holder (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock (but not including any stock repurchase program effected in compliance with Rule 10b-18 promulgated by the Commission or any repurchase of securities pursuant to any equity incentive plan approved by the Company’s stockholders), (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not

  

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to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.  The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

Section 4.             Transfer of Warrant.

a)           Transferability.  For a period of six months after the issue date of this Warrant (which shall not be earlier than the closing date of the offering pursuant to which this Warrant is being issued), neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities by any person for a period of 180 days immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of any security:

i.           by operation of law or by reason of reorganization of the Company;

	
  

	
ii.

	
to any FINRA member firm participating in the offering and the officers or partners thereof, if all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

	
  

	
iii.

	
if the aggregate amount of securities of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

	
  

	
iv.

	
that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the fund;  or

  

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v.

	
the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

Subject to the foregoing restriction, any applicable securities laws and the conditions set forth in Section 4(d), this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with the Assignment Form duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

b)           New Warrants.  This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.  All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

c)           Warrant Register.  The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

d)           Transfer Restrictions.  If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant or the sale of Warrant Shares, the transfer of this Warrant or the Warrant Shares, as applicable, shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer or sale, that the Holder provide to the Company an opinion of counsel selected by the Holder and reasonably acceptable to the Company, the form and substance of which opinion shall be

  

12

  

reasonably satisfactory to the Company, to the effect that such transfer or sale does not require registration of such transferred security under the Securities Act.

e)           Representation by the Holder.  The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

Section 5.             Miscellaneous.

a)           No Rights as Stockholder Until Exercise.  Except as otherwise provided herein, this Warrant does not entitle the Holder to any voting rights, including, without limitation, any right to consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise) nor any right to receive notice of meetings, nor does it entitle the Holder to any right to receive dividends or subscription rights, or any other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i).

b)           Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

c)           Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

d)           Authorized Shares.

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares

  

13

  

may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

e)           Jurisdiction.  All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

f)           Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

g)           Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.  Without limiting any

  

14

  

other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

h)           Notices.  Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

i)           Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

j)           Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

k)           Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

l)           Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

m)           Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

n)           Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

(Signature Page Follows)

  

15

  

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

	  	  	
WAFERGEN BIO-SYSTEMS, INC.

	  	  	  
	  	  	  
	  	  	
By:

	  	  
	  	  	  	
Name:

	  
	  	  	  	
Title:

	  

  

16

  

NOTICE OF EXERCISE

TO:           WAFERGEN BIO-SYSTEMS, INC.

(1)      The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

(2)      Payment shall take the form of (check applicable box):

[  ] in lawful money of the United States; or

[  ] [if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

(3)      Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

	  	  	  

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

	  	  	  

	  	  	  

	  	  	  

[SIGNATURE OF HOLDER]

	
Name of Investing Entity:

	  

 

	
Signature of Authorized Signatory of Investing Entity:

	  

 

	
Name of Authorized Signatory:

	  

 

	
Title of Authorized Signatory:

	  

 

	
Date:

	  

  

  

  

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________ whose address is

 

______________________________________________________________.

_______________________________________________________________

Dated:  ______________, _______

 

	 	 Holder’s Signature:	__________________________________________ 	 	 
	 	 	 	 	 
	 	 Holder’s Address: 	__________________________________________	 	 
	 	 	 	 	 
	 	 	__________________________________________	 	 

 

 

 

Signature Guaranteed:  ___________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.ex-10_1.htm

Moody 10-Q

 

Exhibit 10.1

 

AGREEMENT OF PURCHASE AND SALE

 

AND ESCROW AGREEMENT

 

THIS AGREEMENT OF PURCHASE AND SALE AND ESCROW AGREEMENT (this “Agreement”) is dated effective as of April 30, 2010, by and between those parties set forth on SCHEDULE I (collectively, “Seller”), MOODY NATIONAL RI PERIMETER HOLDING, LLC, a Delaware limited liability company (or assigns, the “Purchaser”), FIRST AMERICAN TITLE INSURANCE COMPANY OF NEW YORK (the “Escrow Agent”) and RAMSAY TITLE AGENCY (the “Title Company”).

 

RECITATIONS:

 

A.           Seller is the owner of that certain tract of land more particularly described on Exhibit A attached hereto and made a part hereof (the “Land”), and the improvements situated thereon commonly known as the “Residence Inn Perimeter”.

 

B.           Purchaser desires to purchase Land (and other elements of the Property, as defined below) to Seller, and Seller desires to sell the above described property to Purchaser, for the Purchase Price (as defined below).

 

NOW, THEREFORE, in consideration of premises and in consideration of the mutual covenants, promises and undertakings of the parties hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, it is agreed:

 

1.           Agreement.  Seller agrees to sell and convey to Purchaser, and Purchaser agrees to purchase and accept conveyance of, the Property pursuant and subject to the terms and conditions herein set forth.

 

2.           Property.  The property which is the subject of this Agreement is the fee simple title in and to the Land, together with all improvements and fixtures located thereon, and all of Seller's right, title, and interest, if any, in and to all easements, tenements, hereditaments, privileges, and appurtenances in any way belonging or relating to the foregoing, including, without limitation, (i) any land to the midpoint of the bed of any highway, street, road, or avenue, open or proposed, in front of, abutting, or adjoining such land, (ii) any oil, gas, or other minerals or mineral rights relating to such land or to the surface or subsurface thereof (iii) any strips, gores, or pieces of property abutting, bounding or which are adjacent or contiguous to such land, and (iv) all easements, right-of-ways, rights of ingress, or egress and .reversionary interests benefitting such land (collectively, the “Property”)

 

3.           Purchase Price.  (a)  Purchaser shall pay TWO MILLION THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($2,350,000.00), as adjusted as expressly provided in this Agreement (the “Purchase Price”), to the Seller (or other party designated by the Seller) on or before May 21, 2010 (as may be extended by Seller, in its sole discretion, by notice to Purchaser (an “Extension Notice”) up to May 31, 2010, the “Funding Date”).  The Purchase Price shall be funded by a wire transfer of immediately available federal funds from funds provided by Purchaser in an account of Escrow Agent to an account designated by Seller (“Seller’s Account”).  Time shall be of the essence as to Purchaser’s obligation to pay the full purchase price to Seller on the Funding 

 

 

  

  

Date, and this Agreement shall be deemed terminated if Purchaser shall default in its obligation to pay the full purchase price to Seller on the Funding Date, in which event neither Seller, any TIC Entities nor Purchaser shall have any further obligations hereunder, except obligations which by their term survive the Closing Date.  Any Extension Notice, closing statement, designation of Seller’s Account or other notice required to be sent by Seller hereunder shall be effective if signed, on behalf of Seller, by TIC RI Perimeter 18, LLC, a Delaware limited liability company, and/or TIC RI Perimeter 8, LLC, a Delaware limited liability company.

 

(b)           Purchaser agrees to pay or cause to be paid all transfer taxes (whether assessed against Seller or Purchaser), title insurance and escrow charges, title insurance premiums, recording fees and charges, costs incurred in transactions with property managers, lessees, lenders, hotel licensors, franchisors or managers, Purchaser’s own costs and expenses, all expenses of owning and operating the Property (whether incurred prior to or after the Closing) and any and all other costs and expenses relating to the Property.  Except for the credit against the Purchase Price of the Nonrefundable Deposit (as hereinafter defined), the Purchase Price is a net payment, and shall not be reduced by prorations, apportionments, or any of the foregoing matters, all of which shall be paid and assumed by Purchaser, or for any other reason.  Purchaser shall indemnify and hold Seller and such TIC Entities harmless from and against such costs, expenses (including attorneys’ fees and disbursements), liabilities, obligations or damages relating thereto or arising therefrom.  However, each party shall pay its fees and out-of-pocket costs in connection with this transaction, including, but not limited to, legal fees and costs made in connection with any Exchange (as defined below).  The provisions of this subsection shall survive the Closing.

 

4.           Deposit.  Seller acknowledges that, prior to the execution of this Agreement, Purchaser has paid to Seller a nonrefundable payment of FIFTY THOUSAND AND NO/DOLLARS ($50,000.00) (the “Initial Nonrefundable Deposit”).  On the date hereof, Purchaser shall also make a further nonrefundable payment of FIFTY THOUSAND AND NO/DOLLARS ($50,000.00) (the “Subsequent Nonrefundable Deposit”) and another payment of TEN THOUSAND AND NO/100 DOLLARS ($10,000), in payment of a portion of the fee owing to Citadel Realty Advisors, Inc. (the “Ross Payment”).  The Subsequent Nonrefundable Deposit and the Ross Payment shall be deposited with the Escrow Agent and disbursed by Escrow Agent in accordance with separate written instructions from representatives of Purchaser and Seller. The Initial Nonrefundable Deposit and the Subsequent Nonrefundable Deposit (collectively, the “Nonrefundable Deposit”) may be used by Seller to pay or to reimburse Seller for the payment of costs (including legal fees and disbursements) incurred in connection with the transaction contemplated hereunder, to the extent of such costs, and any balance may be retained by Seller for any purpose determined by Seller, in its discretion.  While the Nonrefundable Deposit and the Ross Payment are nonrefundable and may be retained by Seller and Citadel Realty Advisors, Inc., respectively, under all circumstances, the Nonrefundable Deposit (but not the Ross Payment) shall be credited against the Purchase Price at Closing.  The Purchase Price shall be allocated to each Seller in accordance with its pro-rata interest in the Property in accordance with a separate agreement among the entities comprising Seller.

 

5.           Escrow Date.  On April 30, 2010 (“Escrow Date”), Purchaser and Seller shall deliver fully executed (and acknowledged where appropriate) signature pages to all of the documents required to be delivered in connection with this transaction (as identified below, collectively the (“Closing Documents”) to the Escrow Agent at its offices located at First American Title Insurance Company of New York (Attention:  Jill Siegel) 633 Third Avenue, New York, NY 10017. 

 

(a)           Seller’s Deliveries.  Each Seller shall deliver to Escrow Agent (and, as to item (xiii) below, caused to be delivered) all of the following instruments:

 

 

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(i)

	
Special Warranty Deed conveying the Property made out in blank (the “Deed”).

 

	
  

	
(ii)

	
Seller's counterpart to the Termination of Master Lease (“Termination of Master Lease”).

 

	
  

	
(iii)

	
Release of and Citicorp North America, Inc. (“Citi”) (through the Escrow Date) (“Citi Escrow Date Release”) (to be delivered to Citi).

 

	
  

	
(iv)

	
Seller's counterpart to the First Amendment to Fixed Rate Note (to be delivered to Citi).

 

	
  

	
(v)

	
Seller's counterpart to the Omnibus Amended and Restated Guaranty of Recourse Obligations (to be delivered to Citi).

 

	
  

	
(vi)

	
Seller's counterpart to that certain Forbearance Agreement dated as of the date hereof among Citi, Seller, and other parties set forth therein (the “Forbearance Agreement”) (to be delivered to Citi).

 

(vii)           FIRPTA Certificate (“FIRPTA”).

 

(viii)           Seller Consent to Sale (“Consents”).

 

	
  

	
(ix)

	
Termination of Owner Agreement (“Termination of Owner Agreement”).

 

	
  

	
(x)

	
Termination of Tenants In Common Agreement (“Termination of TIC Agreement”).

 

	
  

	
(xi)

	
Release of Citi (through the Funding Date) (“Citi Funding Date Release”) (to be delivered to Citi).

 

	
  

	
(xii)

	
Seller's counterpart to the Release and Settlement Agreement (“Settlement and Release”).

 

	
  

	
(xiii)

	
Letter Agreement from Joel Ross and Citadel Realty Advisors, Inc., certifying that neither will involve itself in any other investments sponsored by Moody National Realty Company, L.P. or its affiliates, on the terms therein prescribed (the “Ross/Citadel Letter”).

 

(b)           Purchaser's Deliveries.  Purchaser shall deliver (or shall cause to be delivered) to Escrow Agent all of the following instruments:

 

	
  

	
(i)

	
Moody National RI Perimeter MT, LLC's counterpart to the Termination of Master Lease.

 

	
  

	
(ii)

	
Moody National RI Perimeter MT, LLC's counterpart to the Termination of Owner Agreement.

 

 

- 3 -

  

	
  

	
(iii)

	
Moody National RI Perimeter H, LLC's counterpart to the Termination of TIC Agreement.

 

	
  

	
(iv)

	
Owner Affidavit executed by Moody National RI Perimeter MT, LLC (“Owner Affidavit”).

 

	
  

	
(v)

	
Survey Affidavit executed by Moody National RI Perimeter MT, LLC (“Survey Affidavit”).

 

	
  

	
(vi)

	
Affidavit of Title executed by Moody National RI Perimeter MT, LLC (“Title Affidavit”).

 

	
  

	
(vii)

	
Bill of Sale and General Assignment from Moody National RI Perimeter MT, LLC conveying the personal property related to the Property made out in blank (the “Bill of Sale”).

 

	
  

	
(viii)

	
Assignment of Agreements from Moody National RI Perimeter MT, LLC conveying assignment the operating agreements related to the Property made out in blank (the “Assignment”).

 

	
  

	
(ix)

	

Purchaser affiliate Release of Citi (through the Escrow Date) (to be delivered to Citi).

 

	
  

	
(x)

	

Purchaser affiliate Release of Citi (through the Funding Date) (to be delivered to Citi).

 

	
  

	
(xi)

	
Purchaser affiliate counterparts to the Settlement and Release.

 

(c)           Other Signatories.  Counterparts to the Settlement and Release executed by other parties thereto prior to 4:00 pm EDT on April 30, 2010, shall also be delivered to Escrow Agent.

 

(d)           Escrow.  Upon receipt of the above referenced deliveries, Escrow Agent shall deliver or maintain the Closing Documents as outlined by Citi in the Forbearance Agreement.  In the event of any conflict or ambiguity between the terms of this Agreement and the terms of the Forbearance Agreement, the terms of the Forbearance Agreement shall control.

 

(e)           Third Party Beneficiary.  The parties intend that Citi and its successors and assigns are intended third party beneficiaries of the terms of this Section 5.  The provisions of this Section 5 shall inure for the benefit of Citi, and Citi shall be entitled to rely on all of the provisions contained herein.  Citi shall also have the right to insist upon or to enforce the performance or observance of any of the terms contained in this Section 5.

 

6.           Funding Date.  (a) On or before the Funding Date, Purchaser deposit with the Escrow Agent the sum of TWO MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($2,250,000.00), which amount represents the Purchase Price less the Nonrefundable Deposit, for the benefit of the Sellers.  In addition, Purchaser shall make an additional deposit in the amount of ONE HUNDRED FIFTEEN THOUSAND AND NO/100 DOLLARS ($115,000.00) for the benefit of Citadel Realty Advisors, Inc. (the “Ross Balance”).

 

 

- 4 -

  

(b)           No Restructuring.  In the event that (i) Purchaser fails to make the deposits referenced above on or before the Funding Date or (ii) Citi notifies Escrow Agent that any Forbearance Condition (as defined in the Forbearance Agreement) has not been satisfied on and before the time and date set forth in the Forbearance Agreement, the Escrow Agent shall deliver or maintain the Closing Documents as outlined by Citi in the Forbearance Agreement.  In such event, the Settlement and Release and the Ross/Citadel Letter shall not be released from escrow or delivered to or for the benefit of Citi, and shall be null and void and of no force or effect.

 

(c)           Restructuring.  Upon (x) receipt of the above referenced deposits on or before the Funding Date and (y) Citi’s notification to Escrow Agent that all conditions to the closing of the Restructuring (as defined in the Forbearance Agreement) have been satisfied and that the Restructuring can proceed to closing, Escrow Agent shall arrange fully executed originals of the following Closing Documents (“Funding Documents”), date and complete (as applicable) as specified below.

 

	
  

	
(i)

	
Deed – The Escrow Agent shall complete the Deed to identify "MOODY NATIONAL RI PERIMETER HOLDING, LLC, a Delaware limited liability company" as the Grantee.

 

	
  

	
(ii)

	
FIRPTA.

 

	
  

	
(iii)

	
Consents.

 

	
  

	
(iv)

	
Owner Affidavit.

 

	
  

	
(v)

	
Survey Affidavit.

 

	
  

	
(vi)

	
Title Affidavit.

 

	
  

	
(vii)

	
Bill of Sale - The Escrow Agent shall complete the Bill of Sale to identify "MOODY NATIONAL RI PERIMETER MASTER TENANT, LLC, a Delaware limited liability company, a Delaware limited liability company" as the Purchaser.

 

	
  

	
(viii)

	
Assignment - The Escrow Agent shall complete the Assignment to identify "MOODY NATIONAL RI PERIMETER MASTER TENANT, LLC, a Delaware limited liability company, a Delaware limited liability company" as the Purchaser.

 

	
  

	
(ix)

	
Termination of Master Lease.

 

	
  

	
(x)

	
Termination of Owner Agreement.

 

	
  

	
(xi)

	
Termination of TIC Agreement.

 

	
  

	
(xii)

	
Settlement and Release.

 

(b)           Closing.  Upon (x) receipt and completion of the Funding Documents (as described above) and (y) Citi’s notification to Escrow Agent that all conditions to the closing of the Restructuring have been satisfied and that the Restructuring can proceed to closing, the Escrow Agent shall: (i) prepare and distribute closing statements (in a form as mutually and reasonably agreed upon and signed by or on behalf of Purchaser and Seller, and identifying and reflecting in a manner reasonably acceptable to Seller and Purchaser any 1031 exchange to which an entity included within “Seller” is proposing to effect); (ii) make any disbursements as required under the terms of this Agreement, or as otherwise directed by Seller, in accordance with the settlement statements; (iii) deliver to Purchaser and Seller a complete set of the Funding Documents; (iv) to pay and transfer, by irrevocable wire transfer, (x) the balance of the Purchase Price, in the amount of $2,250,000.00, to Seller’s Account (which is 

 

- 5 -

  

contemplated to be a separate account established for the benefit of Seller at Escrow Agent), and (y) the Ross Balance, in the amount of $115,000, to the following account designated by Citadel Realty Advisors, Inc.: Citadel Realty Advisors, Chase Bank, ABA 021000021, Account # 091091912665 (or such other account as shall be provided to Escrow Agent by Citadel Realty Advisors, Inc.); and (v) deliver to the Title Company an original set of the Deed, the Termination of Master Lease and the Termination of TIC Agreement (collectively, “Recordable Documents”).  Upon receipt of the Recordable Documents, the Title Company will record the Recordable Documents in the real property records of Fulton County, Georgia.  The Title Company will also deliver a final Owner's Policy of Title Insurance, along with a file-stamped copy of the Recordable Documents, to Purchaser upon receipt.  Promptly after the Closing, Escrow Agent and/or Title Company shall deliver fully-executed and filled out copies of the Recordable Documents to Seller and Purchaser.

 

(d)           Third Party Beneficiary.  The parties intend that Citi and its successors and assigns are intended third party beneficiaries of the terms of this Section 6.  The provisions of this Section 6 shall inure for the benefit of Citi, and Citi shall be entitled to rely on all of the provisions contained herein.  Citi shall also have the right to insist upon or to enforce the performance or observance of any of the terms contained in this Section 6.

 

7.           Purchaser's Conditions Precedent.  Purchaser’s obligations hereunder are subject to the timely satisfaction of the following conditions precedent on or before the Closing:

 

(a)           All conditions to the closing of the Restructuring (as defined in the Forbearance Agreement) have been satisfied and that the Restructuring approved by Citi.

 

8.           Closing Agent.  Neither the Escrow Agent or the Title Company (collectively, “Closing Agent”) shall be liable: (a) to any of the parties for any act or omission to act except for its own willful misconduct; (b) for any legal effect, insufficiency, or undesirability or any instrument deposited with or delivered by Closing Agent or exchanged by the parties hereunder, whether or not Closing Agent prepared such instrument; (c) for any loss or impairment of funds that have been deposited in escrow while those funds are in the course of collection, or while those funds are on deposit in a financial institution, if such loss or impairment results from the failure, insolvency or suspension of a financial institution; (d) for the expiration of any time limit or other consequences of delay, unless a properly executed written instruction, accepted by Closing Agent, has instructed Closing Agent to comply with said time limit; (e) for the default, error, action or omission of either party to the escrow.  Closing Agent, in its capacity as escrow agent, shall be entitled to rely on any document or paper received by it, believed by such Escrow Agent, in good faith, to be bona fide and genuine.  In the event of any dispute as to the disposition of any monies held in escrow, or of any documents held in escrow, Closing Agent may, if such Closing Agent so elects, interplead the matter by filing an interpleader action in a court of competent jurisdiction in the county or circuit where the Property is located (to the jurisdiction of which both parties do hereby consent), and pay into the registry of the court such monies held by Closing Agent, or deposit any such documents with respect to which there is a dispute in the registry of such court, whereupon such Closing Agent shall be relieved and released from any further liability as Closing Agent hereunder.  Closing Agent shall not be liable for Closing Agent’s compliance with any legal process, subpoena, writ, order, judgment and decree of any court, whether issued with or without jurisdiction, and whether or not subsequently vacated, modified, set aside or reversed.

 

 

- 6 -

  

9.           Section 1031 Exchange.  Either party and each entity which is a tenant-in-common of the Property that constitutes part of “Seller” (each, a “TIC Entity”) may consummate the purchase or sale of the Property as part of a so-called like kind exchange (an “Exchange”) pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), provided that (i) the Closing shall not be delayed or affected by reason of an Exchange nor shall the consummation or accomplishment of any Exchange be a condition precedent or condition subsequent to a party’s obligations under this Agreement; (ii) any party desiring an Exchange shall effect its Exchange through an assignment of this Agreement, or its rights under this Agreement, to a qualified intermediary and the other party shall not be required to take an assignment of the purchase agreement for the relinquished or replacement property or be required to acquire or hold title to any real property for purposes of consummating such Exchange; and (iii) the party desiring an Exchange shall pay any additional out-of-pocket costs that would not otherwise have been incurred by Purchaser or Seller after the date hereof had such party not consummated its purchase or sale through an Exchange.  Neither party shall by this agreement or acquiescence to an Exchange desired by the other party (1) have its rights under this Agreement affected or diminished in any manner or (2) be responsible for compliance with or be deemed to have warranted to the other party that such party’s Exchange in fact complies with Section 1031 of the Code.  In connection with such cooperation, Seller agrees, upon request of Purchaser, to “direct deed” for actual interests in the property to a single designee of Purchaser, and Purchaser agrees to enter into an acknowledgement of the assignment of the rights (but not the obligations) of any TIC Entity to a qualified intermediary in customary form to facilitate an Exchange by such TIC Entity.

 

10.           No Representations; No Prorations.

 

(a)           Purchaser acknowledges and agrees that affiliates of Purchaser have controlled the Property prior to the date hereof and have master leased the Property from Seller, and that Purchaser is acquiring the Property “as-is”, “where is” and “with all faults”, and without representation or warranty, except as herein expressly provided to the contrary, and that it shall make no claim against Seller or any of the TIC Entities relating to any fact or condition relating to the Property.  Without limitation, Purchaser accepts, shall be responsible for and shall make no claim against Seller or any TIC Entities with respect to, any environmental condition on or about the Property or hazardous material existing on or about the Property.  Without limiting the foregoing:

 

(b)           Without limiting the foregoing, EXCEPT AS SPECIFICALLY PROVIDED HEREIN TO THE CONTRARY, PURCHASER EXPRESSLY UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT THE CONVEYANCE OF THE PROPERTY SHALL BE MADE BY SELLER TO PURCHASER ON AN “AS IS, WHERE IS” ­BASIS AND WITH ALL FAULTS, AND PURCHASER ACKNOWLEDGES THAT PURCHASER HAS AGREED TO BUY THE PROPERTY IN ITS PRESENT CONDITION AND THAT PURCHASER IS RELYING SOLELY ON ITS OWN EXAMINATION AND INSPECTIONS OF THE PROPERTY AND NOT ON ANY STATEMENTS OR REPRESENTATIONS MADE BY SELLER OR ANY AGENTS OR REPRESENTATIVES OF SELLER, EXCEPT AS OTHERWISE SPECIFICALLY SET FORTH HEREIN.  ADDITIONALLY, PURCHASER HEREBY ACKNOWLEDGES THAT, EXCEPT AS OTHERWISE SPECIFIED HEREIN, SELLER MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING BUT IN NO WAY LIMITED TO, ANY WARRANTY OF CONDITION, HABITABILITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY OR ANY PORTION THEREOF, OR WITH RESPECT TO THE ECONOMICAL, FUNCTIONAL, ENVIRONMENTAL OR PHYSICAL CONDITION, OR ANY OTHER ASPECT, OF THE PROPERTY.  EXCEPT AS SPECIFICALLY PROVIDED HEREIN TO THE CONTRARY, SELLER HEREBY SPECIFICALLY DISCLAIMS ANY WARRANTY, GUARANTY OR REPRESENTATION, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, OR CONCERNING: (i) THE NATURE AND CONDITION OF THE PROPERTY OR ANY PART THEREOF, INCLUDING BUT NOT LIMITED TO ITS WATER, SOIL, OR GEOLOGY, OR THE SUITABILITY THEREOF FOR 

 

- 7 -

  

ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY ELECT TO CONDUCT THEREON, OR ANY IMPROVEMENTS PURCHASER MAY ELECT TO CONSTRUCT THEREON, OR ANY INCOME TO BE DERIVED THEREFROM, OR ANY EXPENSES TO BE INCURRED WITH RESPECT THERETO, OR ANY OBLIGATIONS OR ANY OTHER MATTER OR THING RELATING TO OR AFFECTING THE SAME; (ii) THE ABSENCE OF ASBESTOS OR ANY ENVIRONMENTALLY HAZARDOUS SUBSTANCES ON, IN OR UNDER THE PROPERTY OR ON, IN OR UNDER ANY PROPERTY ADJACENT TO OR ABUTTING THE PROPERTY; (iii) THE MANNER OF CONSTRUCTION OR CONDITION OR STATE OF REPAIR OR LACK OF REPAIR OF ANY IMPROVEMENTS; AND (iv) THE COMPLIANCE OF THE PROPERTY OR THE OPERATION OF THE PROPERTY OR ANY PORTION THEREOF WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY GOVERNMENT OR OTHER BODY; AND (v) THE NATURE OR EXTENT OF ANY EASEMENT, RESTRICTIVE COVENANT, RIGHT-OF-WAY, LEASE, POSSESSION, LIEN, ENCUMBRANCE, LICENSE, RESERVATION, CONDITION OR OTHER SIMILAR MATTER PERTAINING TO THE PROPERTY, OR PORTION THEREOF.

 

(c)           The parties agree that there are no prorations or apportionments hereunder.  Purchaser will be entitled to collect all income relating to the Property and will pay all expenses relating to the Property, including real estate taxes, debt service, sums due under any hotel licensing, franchising or management agreements, sums payable to employees, and contractual obligations of any type or nature that the tenant under the Master Lease or Seller may have been obligated to pay.  Without limitation, Purchaser accepts, shall be responsible for and shall make no claim against Seller or any TIC Entities with respect to, any of the foregoing and, if any claim is made against Seller or any TIC Entities with respect thereto, Purchaser shall indemnify and hold Seller and such TIC Entities harmless from and against such claim and any costs, expenses (including attorneys’ fees and disbursements), liabilities, obligations or damages relating thereto or arising therefrom.

 

(d)           Purchaser and each TIC Entity affiliated with Purchaser each hereby represent and warrant to the other TIC Entities, and the other TIC Entities each hereby severally represent and warrant to Purchaser and each TIC Entity affiliated with Purchaser that it has not dealt with any broker or finder in connection with the transaction which is the subject of this Agreement. Each hereby covenants and agrees to indemnify, defend, save and hold harmless the other parties hereto from and against any and all claims, demands and actions (and all costs, expenses and damages associated therewith, including, reasonable attorneys' fees and expenses arising out of or in connection with any such claim, demand or other action) made or instituted by any broker or any other party seeking a commission or similar compensation, as a result of the transactions contemplated hereby, based upon its own dealings (and not the dealings by the other party hereto).  The fee due Citadel Realty Advisors, Inc. shall not be deemed a violation of this subsection.

 

(e)           The provisions of this Section 10 shall survive the Closing or any earlier termination of this Agreement. 

 

11.           Mutual Release.  For and in consideration of the mutual covenants of the parties set forth in this Agreement, and other good and valuable consideration, the sufficiency of which are hereby acknowledged, Purchaser and Seller have agreed to release each other, and their respective affiliates, from any and all claims, disputes, causes of action or controversies, including, without limitation, any and all claims based upon any violation or alleged violation of any securities laws in connection with the Property, the offer and sale to the Seller of its respective undivided interests in the Property, the Confidential Private Placement Memorandum for Tenant in Common Interests in Residence Inn Perimeter, dated November 15, 2007, any matter arising under or in connection with the purchase and operation of Property, including, without limitation, matters with respect to the Owner Agreement, Management Agreement, the financing of the Property, or any other matter related to the above referenced items (hereinafter collectively the “Released Matters”).

 

 

- 8 -

  

(a)           Each and every Seller on behalf of itself and its affiliates does hereby, for itself and for its executors, administrators, successors, and assigns, release, acquit, and forever discharge each and the Purchaser and its respective affiliates (the “Released Purchaser Parties”) from any and all actions, claims, controversies, suits, damages (whether general, special or punitive), liabilities, demands, obligations, attorneys fees (whether or not litigation is commenced), debts, expenses, fees, costs, demands or causes of action of any kind or character whatsoever, whether at law, equity or otherwise, whether in a judicial, administrative, or other forum or tribunal, that such Seller or its affiliates may have, known or unknown (and, if unknown, regardless of whether such knowledge would have been material to the decision to execute this Agreement), contingent or actual, now existing or that may arise hereafter with regard to the Released Matters or the facts underlying the Released Matters.

 

THE SELLER AND ITS AFFILIATES INTEND TO AND DO HEREBY RELEASE ALL CLAIMS OF ANY KIND THAT ANY AND ALL TIC PARTIES AND THEIR RESPECTIVE AFFILIATES HAVE AGAINST EACH OF THE RELEASED PURCHASER PARTIES WITH REGARD TO THE RELEASED MATTERS OR THE FACTS UNDERLYING THE RELEASED MATTERS, INCLUDING, WITHOUT LIMITATION, ANY AND ALL CLAIMS BASED ON ANY AND ALL VIOLATIONS OR ALLEGED VIOLATIONS OF ANY SECURITIES LAWS BY ANY RELEASED PARTIES IN CONNECTION WITH THE OFFER, SALE OR ISSUANCE OF INTERESTS OR THE OFFER AND SALE OF THE PROJECT, AND ANY OTHER RELEASED MATTER (INCLUDING ANY CLAIM BASED ON ANY MISSTATEMENT OF A MATERIAL FACT, OR ANY OMISSION TO STATE A MATERIAL FACT NECESSARY TO MAKE SUCH INFORMATION, IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE, NOT MISLEADING).

 

(b)           The Purchaser on behalf of itself and its affiliates does hereby, for itself and for its executors, administrators, successors, and assigns, release, acquit, and forever discharge each and every Seller and its respective affiliates (the “Released Seller Parties”), from any and all actions, claims, controversies, suits, damages (whether general, special or punitive), liabilities, demands, obligations, attorneys fees (whether or not litigation is commenced), debts, expenses, fees, costs, demands or causes of action of any kind or character whatsoever, whether at law, equity or otherwise, whether in a judicial, administrative, or other forum or tribunal, that such Moody Party or its Affiliates may have, known or unknown (and, if unknown, regardless of whether such knowledge would have been material to the decision to execute this Agreement), contingent or actual, now existing or that may arise hereafter with regard to the Released Matters or the facts underlying the Released Matters.

 

THE MOODY PARTIES AND THEIR AFFILIATES INTEND TO AND DO HEREBY RELEASE ALL CLAIMS OF ANY KIND THAT ANY AND ALL MOODY PARTIES AND THEIR RESPECTIVE AFFILIATES HAVE AGAINST EACH OF THE RELEASED TIC  PARTIES WITH REGARD TO THE RELEASED MATTERS OR THE FACTS UNDERLYING THE RELEASED MATTERS, INCLUDING, WITHOUT LIMITATION, ANY AND ALL CLAIMS BASED ON ANY AND ALL VIOLATIONS OR ALLEGED VIOLATIONS OF ANY SECURITIES LAWS BY ANY RELEASED PARTIES IN CONNECTION WITH THE OFFER, SALE OR ISSUANCE OF INTERESTS OR THE OFFER AND SALE OF THE PROJECT, AND ANY OTHER RELEASED MATTER (INCLUDING ANY CLAIM BASED ON ANY MISSTATEMENT OF A MATERIAL FACT, OR ANY OMISSION TO STATE A MATERIAL FACT NECESSARY TO MAKE SUCH INFORMATION ,IN LIGHT OF THE CIRCUMSTANCES IN WHICH IT WAS MADE, NOT MISLEADING).

 

 

- 9 -

  

(c)           The provisions of this Section 11 shall survive the Closing or any earlier termination of this Agreement. 

 

12.           Notices.  Any notice, demand or other communication (each, a “notice”) that is given or rendered pursuant to this Agreement by either Seller or Developer to the other party, shall be (i) given or rendered, in writing, (ii) addressed to the other party at its required address(es) for notices delivered to it as set forth below, and (iii) either delivered via either (x) hand delivery, or (y) nationally recognized overnight courier service (e.g., Federal Express, Express Mail). Each party may, from time to time, designate an additional or substitute required address(es) for notices delivered to it (provided, that such designation must be made by notice given in accordance with this Section). Any such notice shall be deemed given or rendered, and effective for purposes of this Agreement, as of the date actually delivered to the other party at such address(es) (whether or not the same is then received by other party due to a change of address of which no notice was given, or any rejection or refusal to accept delivery). Notices from either party (to the other) may be given or rendered by its counsel. Subject to the foregoing, the required address(es) of each party for notices delivered to it is (are) as set forth below.

 

	
  

	
If to Seller:

	
David Gluck

	
  

	
825 Longridge Road

	
  

	
Oakland, California 94610

 

	
  

	
with a copy to:

	
Morrison & Foerster LLP

	
  

	
1290 Avenue of the Americas

	
  

	
New York, New York 10104

	
  

	
Attn::  Andrew J. Weiner, Esq.

 

	
  

	
If to Purchaser:

	
Moody National RI Perimeter Holding, LLC

	
  

	
Attention:  Brett C. Moody

	
  

	
6363 Woodway, Suite 110

	
  

	
Houston, Texas 77057

 

	
  

	
with a copy to:

	
Moody National RI Perimeter Holding, LLC

	
  

	
Attention:  Amanda Chivers

	
  

	
6363 Woodway, Suite 110

	
  

	
Houston, Texas 77057

 

13.           Miscellaneous.  This Agreement constitutes the entire agreement between the parties hereto with respect to the transactions contemplated hereby and supersedes all prior discussions, understandings, agreements and negotiations between the parties hereto.  This Agreement may be modified only by a written instrument duly executed by the parties hereto (except as provided above with respect to an Extension Notice).  This Agreement and all documents referred to herein shall be governed by and construed and interpreted in accordance with the laws of the state in which the Property is located without regard to its principle of conflicts of law.  To facilitate execution, this Agreement may be executed in as many counterparts as may be required.  It shall not be necessary that the signature on behalf of both parties hereto appear on each counterpart hereof.  All counterparts hereto shall collectively constitute a single agreement.  Executed copies of this Agreement may be delivered by holographic originals, as well as by telefacsimile or electronic (e.g., pdf) means, each of which shall be effective to constitute delivery, and shall have the same valid and binding effect as original signatures.  No member or manager of any TIC Entity shall have any personal liability hereunder.

 

 

[SIGNATURE PAGE TO FOLLOW]

 

 

- 10 -

  

SCHEDULE I

TIC RI Perimeter 1, LLC, a Delaware limited liability company

TIC RI Perimeter 2, LLC, a Delaware limited liability company

TIC RI Perimeter 3, LLC, a Delaware limited liability company

TIC RI Perimeter 4, LLC, a Delaware limited liability company

TIC RI Perimeter 5, LLC, a Delaware limited liability company

TIC RI Perimeter 6, LLC, a Delaware limited liability company

TIC RI Perimeter 7, LLC, a Delaware limited liability company

TIC RI Perimeter 8, LLC, a Delaware limited liability company

TIC RI Perimeter 9, LLC, a Delaware limited liability company

TIC RI Perimeter 10, LLC, a Delaware limited liability company

TIC RI Perimeter 11, LLC, a Delaware limited liability company

TIC RI Perimeter 12, LLC, a Delaware limited liability company

TIC RI Perimeter 13, LLC, a Delaware limited liability company

TIC RI Perimeter 14, LLC, a Delaware limited liability company

TIC RI Perimeter 16, LLC, a Delaware limited liability company

TIC RI Perimeter 17, LLC, a Delaware limited liability company

TIC RI Perimeter 18, LLC, a Delaware limited liability company

TIC RI Perimeter 19, LLC, a Delaware limited liability company

TIC RI Perimeter 20, LLC, a Delaware limited liability company

TIC RI Perimeter 21, LLC, a Delaware limited liability company

TIC RI Perimeter 22, LLC, a Delaware limited liability company

TIC RI Perimeter 23, LLC, a Delaware limited liability company

TIC RI Perimeter 24, LLC, a Delaware limited liability company

TIC RI Perimeter 25, LLC, a Delaware limited liability company

TIC RI Perimeter 26, LLC, a Delaware limited liability company

TIC RI Perimeter 27, LLC, a Delaware limited liability company

Moody National RI Perimeter H, LLC, a Delaware limited liability company

 

  

  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in their names by their respective duly authorized representatives.

 

	  	  	
PURCHASER:

	  	  	  
	  	  	
MOODY NATIONAL RI PERIMETER HOLDING, LLC

	  	  	  
	  	  	
By:

	

/s/ Brett C. Moody

	  	  	
Name:

	
Brett C. Moody

	  	  	
Title:

	
President

	  	  	  
	  	  	
TIC RI Perimeter 1, LLC, a Delaware limited liability company

	  	  	  
	  	  	
By:

	

/s/ Melvyn L. Stromfeld

	  	  	  	
Melvyn L. Stromfeld, as Trustee of The Stromfeld Living Trust dated June 1, 1988, as amended, its sole member

	  	  	  	  
	  	  	
By:

	

/s/ Betty A. Stromfeld

	  	  	  	
Betty A. Stromfeld, as Trustee of The Stromfeld Living Trust dated June 1, 1988, as amended, its sole member

	  	  	  	  
	  	  	  	  
	  	  	
TIC RI Perimeter 2, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Stephen T. Evans

	  	  	  	
Stephen T. Evans an individual, its sole member

	  	  	  	  
	  	  	  	  
	  	  	
TIC RI Perimeter 3, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ John T. Evans

	  	  	  	
John T. Evans an individual, its sole member

	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 4, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Ben Lomond, Inc., a Utah corporation, its sole member

	  	  	  	  
	  	  	  	
By:

	
/s/ Robert C. Hull

	  	  	  	  	
Robert C. Hull, President

	  	  	  	  	  

	  	  	
TIC RI Perimeter 5, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Ana Chang-Smith

	  	  	  	
Ana Chang-Smith, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 6, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Jack A. Luceti

	  	  	  	
Jack A. Luceti, as Trustee of the Jack A. Luceti – Lorraine Trust dated March 13, 2003, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 7, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Richmond Micro Metals, Inc., a California corporation, its sole member

	  	  	  	  
	  	  	  	
By:

	
/s/ Robert Woodward

	  	  	  	  	
Robert C. Hull, President

	  	  	  	  	  

	  	  	
TIC RI Perimeter 8, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Rainer William Gustin

	  	  	  	
Rainer William Gustin, an individual, its sole member

	  	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 9, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Tyler Cook

	  	  	  	
Tyler Cook, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 10, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Gene Andrew Anderson

	  	  	  	
Gene Andrew Anderson, as Trustee of The Gene and Pauline Anderson Revocable Trust dated January 18, 2007, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Pauline Marie Anderson

	  	  	  	
Pauline Marie Anderson, as Trustee of The Gene and Pauline Anderson Revocable Trust dated January 18, 2007, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 11, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Mark R. Dyson

	  	  	  	
Mark R. Dyson, as Trustee of the Dyson Family Living Trust dated June 29, 2004, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Jennifer Long Dyson

	  	  	  	
Jennifer Long Dyson, as Trustee of the Dyson Family Living Trust dated June 29, 2004, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 12, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Myrtle Park LLC, a California limited liability company, its sole member

	  	  	  	  
	  	  	  	
By:

	
/s/ Anthony John deRuyter

	  	  	  	  	
Anthony John deRuyter, its sole member

	  	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 13, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ David L. Golden

	  	  	  	
David L. Golden, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 14, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Granzyna M. Rygiel

	  	  	  	
Grazyna M. Rygiel, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 16, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Kenneth E. Solie

	  	  	  	
Kenneth E. Solie, as Trustee of the Kenneth E. Solie Revocable Trust under that certain Amendment and Restatement of Trust Agreement dated October 18, 2004, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Jeanette D. Solie

	  	  	  	
Jeanette D. Solie, as Trustee of the Kenneth E. Solie Revocable Trust under that certain Amendment and Restatement of Trust Agreement dated October 18, 2004, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 17, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Edward F. Hannemann

	  	  	  	
Edward F. Hannemann, as Trustee of the Hannemann/Bodel Revocable Trust dated January 4, 2008, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Anne A. Bodel

	  	  	  	
Anne A. Bodel, as Trustee of the Hannemann/Bodel Revocable Trust dated January 4, 2008, its sole member

	  	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 18, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ David Gluck

	  	  	  	
David Gluck, as husband and wife as community property, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Robin Dearborn

	  	  	  	
Robin Dearborn, as husband and wife as community property, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 19, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Frank Stempski

	  	  	  	
Frank Stempski, as Trustee of The Stempski Family Trust dated July 20, 1998, as amended and restated November 1, 2007, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Helen Patricia Stempski

	  	  	  	
Helen Patricia Stempski, as Trustee of The Stempski Family Trust dated July 20, 1998, as amended and restated November 1, 2007, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 20, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Eugene Kieman

	  	  	  	
Eugene Kiernan, an individual, its sole member

	  	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 21, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Kenneth Blackwell

	  	  	  	
Kenneth Blackwell, as Trustee of the Blackwell Revocable Trust dated February 6, 2002, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Shawnee Blackwell

	  	  	  	
Shawnee Blackwell, as Trustee of the Blackwell Revocable Trust dated February 6, 2002, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 22, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Connie H. Wiita

	  	  	  	
Connie H. Wiita, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 23, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Herbert Schreier

	  	  	  	
Herbert Schreier, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 24, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Frank X. Garza

	  	  	  	
Frank X. Garza, as Trustee of The Garza Family Trust dated May 12, 2004, its sole member

	  	  	  	  	  
	  	  	
By:

	
/s/ Yolanda Garza

	  	  	  	
Yolanda Garza, as Trustee of The Garza Family Trust dated May 12, 2004, its sole member

	  	  	  	  	  

 

  

  

	  	  	
TIC RI Perimeter 25, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Bradley C. Palmer

	  	  	  	
Bradley C. Palmer, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 26, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Dee Palmer

	  	  	  	
Dee Palmer, an individual, its sole member

	  	  	  	  	  

	  	  	
TIC RI Perimeter 27, LLC, a Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
/s/ Diane Stoddard

	  	  	  	
Diane Stoddard, an individual, its sole member

	  	  	  	  	  

	  	 	
MOODY NATIONAL RI PERIMETER H, LLC, a Delaware limited liability company

	  	 	  	  
	  	 	
By:

	
Moody Perimeter, LLC, a Delaware limited liability company, its sole member

	  	 	  	  
	  	 	
By:

	
Moody National Realty Company, L.P., a Texas limited partner, its manager

	  	 	  	  
	  	  	
By:

	
Moody Realty Corporation, a Texas corporation, its general partner

	  	 	  	  

	  	  	
By:

	
/s/ Brett C. Moody

	  	  	
Name:

	
Brett C. Moody

	  	  	
Title:

	
President

	  	  	  	  	  

 

  

  

	  	  	
FIRST AMERICAN TITLE INSURANCE COMPANY

	  	  	  
	  	  	
/s/ Jill Siegel

	  	  	
By:

	
Jill Siegel

	  	  	
Title:

	
Counsel

 

  

  

	  	  	
RAMSAY TITLE AGENCY

	  	  	  
	  	  	  
	  	  	  
	  	  	
By:

	 /s/ Darlene J. Palmer
	  	  	
Name:

	Darlene J. Palmer
	  	  	
Title:

	Agency Counsel

 

  

  

EXHIBIT A

Land

ALL THAT TRACT or parcel of land lying and being in Land Lot 36 of the 17th District of Fulton County, Georgia, and being more particularly described as follows:

TO FIND THE TRUE POINT OF BEGINNING, commence at the intersection of the westerly right-of-way line of Barfield Road (having an 85-foot right-of-way) and the northerly right-of-way line of Hammond Drive (having a 100-foot right-of-way), and proceed thence North 05 degrees 19 minutes 26 seconds West, a distance of 359.68 feet to an iron pin and THE TRUE POINT OF BEGINNING; thence running South 83 degrees 31 minutes 01 second West, a distance of 364.97 feet to an iron pin; thence running North 03 degrees 20 minutes 57 seconds West, a distance of 292.65 feet to an iron pin; thence running South 88 degrees 04 minutes 17 seconds West, a distance of 210.81 feet to an iron pin; thence running North 06 degrees 07 minutes 19 seconds West, a distance of 179.21 feet to an iron pin; thence running North 69 degrees 30 minutes 31 seconds East, a distance of 119.81 feet to an iron pin; thence running North 85 degrees 45 minutes 08 seconds East, a distance of 452.19 feet to an iron pin and the west right-of-way line of Barfield Road; thence running South 05 degrees 19 minutes 26 seconds East, along said right-of-way line, a distance of 499.26 feet to an iron pin and the TRUE POINT OF BEGINNING; containing 5.17 acres as shown on Preliminary As-Built Survey of The Residence Inn-Perimeter West for R.F.S. Partnership, L.P. and Chicago Title Insurance Company, made by Ruhling & Shupe Land Surveyors, bearing the seal of Vance W. Ruffling, Georgia Registered Land Surveyor No. 2134, dated December 8, 1989, last revised July 26, 2000.

 

  

  

EXHIBIT B

Purchaser Wire Information

An account at Escrow Agent or elsewhere as designated by Seller prior to Closing.

 

  

  

EXHIBIT C

Wiring Information for Ross Payment and Ross Balance

Payment is to Citadel Realty Advisors, Inc.

Chase Bank

ABA 021000021

Account # 091091912665

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