Document:

Exhibit 10.3
                Extension of Option Agreement

                  HUDSON   VENTURES,  INC.
50 West Liberty Street, Suite 880, Reno, Nevada  89501  PHONE (604)727-4679
___________________________________________________________________________

Glen Macdonald
303-1334 Cardero Street
Vancouver, BC  V6G 2J3

December 31, 2002

ATTENTION:  Glen Macdonald

     RE:  Claims AAV 1-9, Grant #'s YC 19166-19174, Whitehorse Mining
     District, Yukon Territory, Canada (the "Property")

Dear Sir,

Pursuant to an option agreement dated as of January 21, 2002, Glen
Macdonald ("GM") granted to Hudson Ventures, Inc., an option to acquire
an interest in the Property (the "Agreement").  This letter confirms
that in and for the sum of $1000 Cdn., the receipt of which is hereby
acknowledged, GM has agreed to amend the terms of the Agreement by
deleting the reference to "December 31, 2002" in section 2.1(C) and
inserting "December 31, 2003" and further by deleting the reference to
"December 31, 2003" in section 2.1(D) and inserting "December 31, 2004",
and further by deleting the reference to "December 31, 2002 in section
2.1(D) and inserting "December 31, 2003".  The remainder of the
Agreement shall remain in full force and effect.

Yours truly,

HUDSON VENTURES, INC.

Per: /s/ Dana Upton

Dana Neill Upton, President

The above is hereby confirmed and agreed as of the date first above
written.

GLEN MACDONALD

Per: /s/ Glen Macdonald

Glen MacdonaldEXHIBIT 10.4

Yukon
Energy, Mines and Resources
Box 2703, Whitehorse, Yukon YIA 206

Whitehorse Mining Recorder                         PH:(867)456-8823
Room 102 -300 Main Street                          Fax:(867) 536-7842
Whitehorse, Y.T. Y1A 2B5

JuIy 22, 2003

Glen MacDonald
Ste. 905 - 1600 M Beach Ave
Vancouver, B.C.
V6G 1Y7

Dear Sir

                RE:  Relief from Assessment Work
                     Quartz Mining Act

Pursuant to Section 57(1) of the Quartz Mining Act, the Minister for
Energy, Mines and Resources, has granted a one year relief from having
to perform assessment work, or make payment in Lieu, for all quartz
claims in good standing at April 1, 2003, 12:01 am.

If  you  have already applied work this year, or if your mineral  claims
are  in  good  standing beyond this year, the claims will still  benefit
from the relief order by the addition of one year to the expiry date. If
you  have  performed assessment work, and you wish to file it, all  work
must  still be recorded within the normal time frames in accordance with
the  Quartz Mining Act. Claim holders can still perform work this  year,
and the tiling of work will not effect the application of relief.

The  enclosed  list  indicates the new expiry date  for  quartz  mineral
claims held in your name.

Sincerely,

/s/ Glenna Southwick

Glenna Southwick
Mining RecorderEXHIBIT 10.5
Yukon
Energy, Mines and Resources

Watson Lake Mining Distract                       PH:(867)456-8823
Box 2703,                                         Fax: (867) 536-7842
Watson Lake, Yukon YIA 206

JuIy 23, 2003

Glen C. MacDonald
905 - 1600 M Beach Ave
Vancouver, B.C.
V6G 1Y7

                RE:  Relief from Assessment Work
                     Quartz Mining Act

Pursuant to Section 57(1) of the Quartz Mining Act, the Minister for
Energy, Mines and Resources, has granted a one year relief from having
to perform assessment work, or make payment in Lieu, for all quartz
claims in good standing at April 1, 2003, 12:01 am.

If  you  have already applied work this year, or if your mineral  claims
are  in  good  standing beyond this year, the claims will still  benefit
from the relief order by the addition of one year to the expiry date. If
you  have  performed assessment work, and you wish to file it, all  work
must  still be recorded within the normal time frames in accordance with
the  Quartz Mining Act. Claim holders can still perform work this  year,
and the tiling of work will not effect the application of relief.

The  attached  list  indicates the new expiry date  for  quartz  mineral
claims held in your name.

Sincerely,

/s/ Patti L. McLeod

Patti L. McLeod
Mining Recorder

PLMEXHIBIT 10.6

                  HUDSON   VENTURES,  INC.
50 West Liberty Street, Suite 880, Reno, Nevada 89501  PHONE (604) 727-4679
__________________________________________________________________________

Glen Macdonald
303-1334 Cardero Street
Vancouver, BC  V6G 2J3

June 1, 2003

ATTENTION:  Glen Macdonald

RE:  McConnell River Claims B1 - B4, Grant #'s YB 92568 - YB 92571,
Watson Lake Mining District, Yukon Territory, Canada ( the "Property")

Dear Sir,

Pursuant to an option agreement dated as of January 22, 2002, Glen
Macdonald ("GM") granted to Hudson Ventures, Inc., an option to acquire
an interest in the Property (the "Agreement").  This letter confirms
that in and for the sum of $1000 Cdn., the receipt of which is hereby
acknowledged, GM has agreed to amend the terms of the Agreement by
deleting the reference to "June 30, 2003" in section 2.1(B) and
inserting "June 30, 2004." The remainder of the Agreement shall remain
in full force and effect.

Yours truly,

HUDSON VENTURES, INC.

Per:

Dana Neill Upton, President

The above is hereby confirmed and agreed as of the date first above
written.

/s/GLEN MACDONALD
-------------------
Per: Glen MacdonaldExhibit 10.111

 

AGREEMENT
OF PURCHASE AND SALE

 

THIS AGREEMENT OF PURCHASE AND SALE
(“Agreement”) is made this 18th day of April, 2003 by and between LAKESHORE
MARKETPLACE, LLC a Delaware limited liability company, and MONROE
OUTLET CENTER, LLC a Michigan limited liability company
(collectively referred to as “Seller”), and RAMCO-GERSHENSON PROPERTIES, L.P.,
a Delaware limited partnership (“Purchaser”).

 

RECITALS

 

A.            Seller is the fee owner of the Land
and Building (hereinafter defined) comprising the shopping center commonly
referred to as Lakeshore Marketplace, located in the City of Norton Shores,
Muskegon County, Michigan.

 

B.            Seller desires to sell, and
Purchaser desires to purchase, the Real Property, together with all of Seller’s
right, title and interest in and to the Personal Property, the Contracts and
the Leases (all as defined below and collectively referred to herein as the
“Property”), upon and subject to the terms and conditions hereinafter set
forth.

 

AGREEMENTS

 

NOW,
THEREFORE, in consideration of the foregoing premises and the respective
representations, warranties, agreements, covenants and conditions herein
contained, and other good and valuable consideration, Seller and Purchaser
agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

1.1           Definitions.  As used herein, the following terms shall have the respective
meanings indicated below:

 

(a)           Agreement.  This Agreement of Purchase and Sale, including the Exhibits
attached hereto which are incorporated herein and made a part hereof.

 

(b)           Building.  The building or buildings located at the Land and comprising the
shopping center commonly known as Lakeshore Marketplace, located in the City of
Norton Shores, Muskegon County, Michigan.

 

(c)           Closing Date.  On or before fifteen (15) days after the Due Diligence Approval
Date, with Purchaser having the right to accelerate the Closing by written
notice to Seller, with such Closing to take place no sooner than three (3)
business days or later than seven (7) business days after such notice.

 

1

 

(d)           Confidential Materials.  As defined in Section 17.6 hereof.

 

(e)           Contracts.  All written (a) service, maintenance, operating, repair, supply,
purchase, construction or other contracts and commitments (excluding the Leases
and the recorded documents evidencing the Permitted Title Exceptions) in any
way related to the Land or Building (or any part thereof), or pursuant to which
goods, services and supplies are furnished, or persons are employed on a
continuing basis, for the operation, maintenance, repair or construction of the
Land or Building, to the extent any of the foregoing will survive the Closing
Date hereunder; and (b) equipment leases relating to equipment leased by or on
behalf of Seller, located in or upon the Land or Building, to the extent any of
the foregoing will survive the Closing Date. 
A list of the Contracts is attached hereto as Exhibit 1.1(e).

 

(f)            Deed. 
That certain recordable Covenant Deed to be delivered by Seller at
Closing, conveying to Purchaser, or Purchaser’s designee, fee simple title to
the Land and Building, subject only to the Permitted Title Exceptions.

 

(g)           Deposit.  The sum of One Hundred Thousand and 00/100 Dollars ($100,000.00),
which shall be deposited by Purchaser with Escrowee, as escrowee, as described
in Section 7.1 below.

(h)           Development Materials.  As described in Section 10. 1(b) hereof.

 

(i)            Due Diligence Approval Date.  The Due Diligence Approval Date is May 15,
2003.

 

(j)            Due Diligence Materials.  The materials identified on Exhibit 1.1(j)
hereto and the Development Materials defined in Section 10.1(b) below.
Purchaser acknowledges it has received those Due Diligence Materials listed in
Part 1 of Exhibit 1.1(j).  As of the
date hereof, Purchaser has not received the items listed in Part 2 of Exhibit
1.1(j).

 

(k)           Effective Date.  The date when Seller and Purchaser executed
the Letter of Intent attached as Exhibit 1.1(k).  Purchaser and Seller agree that both parties executed the Letter
of Intent March 12, 2003.

 

(l)            Escrowee.  Commonwealth Land Title Insurance Company, whose address is 1050
Wilshire, Suite 310, Troy, MI 48084-1526, attn: Maxine Lievois.

 

(m)          Indemnified Parties.  As defined in Section 10.1(a) hereof.

 

(n)           Inspections.  As defined in Section 10.1(a) hereof.

 

(o)           Intangible Personal Property.  The trade name “Lakeshore Marketplace” and,
to the extent transferable, all logos, designs, trade names, trademarks,
service marks and applicable telephone number(s) and other intellectual
property used by Seller in connection with the ownership and operation of the
Land and Building, together with the goodwill of the business appurtenant
thereto.

 

(p)           Invasive Inspections.  As defined in Section 10.1(a) hereof.

 

(q)           Land. 
The land located in the City of Norton Shores, Muskegon County,
Michigan, legally described in Exhibit 1.1(q) attached hereto.

 

2

 

(r)            Leases.  All leases, tenancies and rental agreements with respect to space
within the Building, and all modifications, extensions, amendments and
guaranties thereof, in effect as of the date hereof or as permitted pursuant to
Section 10.1(c) below.

 

(s)           Licenses.  All licenses, franchises, certifications, authorizations,
certificates of occupancy, approvals and permits issued or approved by any
governmental authority and relating to Seller’s (and not any tenant’s)
operation, ownership and maintenance of the Real Property or Personal Property
or any part thereof, including elevator permits, machinery permits, business
licenses, ingress and egress permits and the like.

 

(t)            Overage Rents.  As defined in Section 6(c) hereof.

 

(u)           Permitted Title Exceptions.  Those exceptions to title to the Property
approved or deemed approved by Purchaser as provided in Article 5 hereof.

 

(v)           Personal Property.  Collectively, the Intangible Personal
Property and the Tangible Personal Property.

 

(w)          Plans. 
As defined in Section 10.1(b) hereof.

 

(x)            Property.  Collectively, the Real Property and Personal Property.

 

(y)           Purchase Price.  Twenty-two Million Seven Hundred Fifty
Thousand and 00/100 Dollars ($22,750,000.00), plus or minus prorations as
described in this Agreement, which sum is the consideration payable by
Purchaser to Seller for the Property as described in Section 3.1 hereof.  The Purchase Price is to be considered as
Twenty Million Two Hundred Fifty Thousand and 00/100 Dollars ($20,250,000.00)
for the developed portion of Lakeshore Marketplace and Personal Property and
Two Million Five Hundred Thousand and 00/100 Dollars ($ 2,500,000.00) for the
four approximately one-acre undeveloped outlots, and the approximately 5.6 acre
expansion parcel, as depicted on Exhibit 1.1(y) hereto.

 

(z)            Purchaser’s Confidentiality Obligations.  As described in Section 17.6 hereof.

 

(aa)         Purchaser’s Indemnity.  As described in Section 10.1(a) hereof.

 

(bb)         Purchaser’s Representatives.  As defined in Section 10.1(a) hereof.

 

(cc)         Real Property.  The Land and the Building, together with all
right, title and interest of Seller in and to all improvements thereon or therein
(including all replacements or additions thereof between the date hereof and
the Closing Date); all right, title and interest of Seller in and to all
systems, facilities, fixtures, machinery, equipment and conduits to provide
fire protection, security, heat, exhaust, ventilation, air-conditioning,
electrical power, light, plumbing, refrigeration, gas, sewer, water and any
other utility services to the Land or Building; all right, title and interest
of Seller in and to all easements and appurtenances inuring to the benefit of
the Land; and all right, title and interest of 
Seller in and to any streets, alleys, passages and other rights-of-way
included therein or adjacent thereto (before or after the vacation thereof) to
the extent inuring to the benefit of the owner of the Land and Building.

 

3

 

(dd)         Seller’s Broker.   As defined in Article 8 hereof.

 

(ee)         Survey.  Current as-built survey(s) of the Land, prepared by a surveyor
licensed by the State of Michigan and certified to Seller, Purchaser and the
Title Insurer, to be prepared in accordance with the current Minimum Standard
Detail Requirements for Land Title Surveys adopted by the American Land Title
Association and American Congress on Surveying and Mapping, setting forth the
legal description of the Land and showing the Building, all other structures
and improvements, paved areas and parking spaces, and all recorded easements
encumbering the Land.

 

(ff)           Tangible Personal Property.  Any and all tools, machinery, equipment,
fixtures, furnishings, signs, supplies and other tangible personal property
situated in or upon the Real Property or any part thereof to the extent owned
by Seller, and all replacements thereto between the date hereof and the Closing
Date, including those items listed on Exhibit 1.1(ff) attached hereto.

 

(gg)         Title Commitment.  A title insurance commitment for the current
form of ALTA Owner’s Title Insurance Policy covering the Land and Building
issued by the Title Insurer in favor of Purchaser in the amount of the Purchase
Price, showing Seller as the fee simple owner of the Land and Building,
excluding all standard and general exceptions.

 

(hh)         Title Insurer.  Commonwealth Land Title Insurance Company.

 

(ii)           Title Policy.  An ALTA Form Owner’s Title Insurance Policy for the Land and
Building, issued by the Title Insurer pursuant to the Title Commitment, subject
only to the Permitted Exceptions, and deleting all standard and general
exceptions.

 

ARTICLE 2

 

PURCHASE AND SALE

 

2.1           Purchase and Sale.  Subject to the conditions and on the terms
contained in this Agreement:

 

(a)           Purchaser agrees to purchase and
acquire from Seller, and Seller agrees to sell and transfer to Purchaser, the
Land and Building by the Deed, subject to the Greenwich Mortgage (as
hereinafter defined).

 

(b)           Purchaser agrees to purchase and
acquire from Seller, and Seller agrees to sell, assign, convey and transfer to
Purchaser, all of Seller’s right, title and interest in and to (1) the
Contracts (but only to the extent freely assignable), (2) the Leases, (3) the
Licenses and (4) the Intangible Personal Property.

 

(c)           Purchaser agrees to purchase and
acquire from Seller, and Seller agrees to sell, convey and transfer to
Purchaser, any and all of Seller’s right, title and interest in (i) the
Tangible Personal Property identified on Exhibit 1.1(ff) by good and sufficient
warranty bill of sale and (ii) all other Tangible Personal Property without
warranty, but in both cases subject to the Greenwich Mortgage.

 

4

 

ARTICLE 3

 

DEPOSIT AND PURCHASE
PRICE

 

3.1           Deposit; Payment of Purchase Price.  Purchaser agrees to pay to Seller, and
Seller agrees to accept payment of the Purchase Price as follows:

 

(a)           The Deposit (and interest thereon net
of investment charges, if any) shall be (i) paid to Seller and applied against
the Purchase Price at Closing or (ii) disbursed in accordance with the terms
hereof if Closing does not occur as contemplated hereby.

 

(b)           At Closing, Purchaser shall pay to
Seller the balance of the Purchase Price (after deduction of the (i) Deposit,
including net interest thereon, paid to Seller and applied against the Purchase
Price as above provided and (ii) the principal balance of the Greenwich
Mortgage to be assumed by Purchaser in accordance with Section 13.2), plus or
minus prorations or adjustments as hereinafter provided, in cash or by wire
transfer of collected federal funds.

 

ARTICLE 4

 

SURVEY

 

4.1   Survey.  As soon as reasonably possible, and in any event within five (5)
days after the Effective Date, Seller shall at Seller’s expense deliver or
cause to be delivered to Purchaser four (4) copies of the Survey. If the Survey
discloses any encroachments onto the Land from any adjacent property,
encroachments by or from the Land onto any adjacent property, violations of or
encroachments upon any recorded building lines, restrictions or easements
affecting the Land, or matters indicating possible rights of third parties
(other than tenants under existing Leases, or parties to recorded easements or
other operating agreements) or other matters to which Purchaser objects,
Purchaser shall give Seller notice of such objection within five (5) days
following the receipt of the Survey and the Title Commitment.  Seller shall, within three (3) days after
receipt of Purchaser’s objections to the Survey, provide Purchaser with a
written response identifying any objections which Seller will not cure.  If Seller provides such timely written notice
that it will not have any such objections removed from the Survey,  or insured over, Purchaser may elect, on or
before the later of the Due Diligence Approval Date, or two (2) business days
after the date on which Seller timely provides, if it so elects, a response to
Purchaser’s Survey objections as hereinabove provided, and as its sole and
exclusive remedy, to either (i) terminate this Agreement, in which event the
Deposit together with net interest thereon shall promptly be returned to
Purchaser, all obligations of the parties hereunder shall terminate (other than
Purchaser’s Indemnity and Purchaser’s Confidentiality Obligations, which shall
expressly survive such termination), and this Agreement shall otherwise have no
further force or effect, or (ii) accept the Property subject to such encroachments,
violations, unpermitted exceptions or other matters which Seller has not agreed
to cure, all of which shall thereafter be deemed Permitted Title Exceptions for
purposes hereof. Purchaser’s failure to make either election shall be deemed an
election under clause (i) above. 
Seller’s failure to provide timely written notice identifying any items
it will not cure shall be deemed an election not to cure such objections.

 

5

 

ARTICLE 5

 

TITLE

 

5.1           Title. 
No later than five (5) days following the Effective Date, Seller shall
obtain and deliver the Title Commitment to Purchaser, at Seller’s sole cost and
expense, including a copy of all recorded documents raised as an exception
therein.  If the Title Commitment raises
any title exceptions (other than rights of tenants under existing Leases) to
which Purchaser objects, Purchaser shall give Seller notice of such objection
within five (5) days following Purchaser’s receipt of the Title Commitment and
the Survey, and Seller shall thereafter have the right (without obligation) to
have such unpermitted exceptions so objected to by Purchaser removed (in a
manner reasonably acceptable to Purchaser) from the Title Commitment or insured
over (in a manner reasonably acceptable to Purchaser) by the Title Insurer and
to provide evidence thereof to Purchaser. 
Seller shall, within three (3) days after receipt of Purchaser’s
objections, provide Purchaser with a written response identifying any
objections which Seller will not cure. 
If Seller provides timely written notice that it will not have any such
objections removed or insured over, Purchaser may elect, on or before the Due
Diligence Approval Date, and as its sole and exclusive remedy, to either (i)
terminate the Agreement, in which event the Deposit with net interest thereon
shall promptly be returned to Purchaser, all obligations of the parties
hereunder shall terminate (other than Purchaser’s Indemnity and Purchaser’s
Confidentiality Obligations, which shall expressly survive such termination),
and this Agreement shall otherwise have no further force or effect, or (ii)
accept the Property, subject to such unpermitted exceptions raised in said
Title Commitment which Seller has not agreed to cure, all of which shall
thereafter be deemed Permitted Title Exceptions for purposes hereof.  Purchaser’s failure to make either election
on or before the Due Diligence Approval Date shall be deemed an election under
clause (i) above. Seller’s failure to timely provide written notice identifying
any items it will not cure shall be deemed an election not to cure such
objections.  Notwithstanding the
aforesaid, no liens which may be “insured over” or removed as a title exception
pursuant to bonding over, furnishing of appropriate indemnities, or other
action by Seller, or which may be discharged by payment or bonding over or
appropriate indemnities to the Title Insurer of $250,000.00 or less in the
aggregate (without reference, however, to the Greenwich Mortgage or to liens
for special assessments referenced in Section 12.1(i), which shall not be
discharged, or the Beal Bank, SSB lien, which Seller shall cause to be
discharged regardless of, and shall not be included in, the $250,000.00
aggregate limit) shall be Permitted Title Exceptions, and all such liens shall
be discharged by Seller and removed as title exceptions by or before the
Closing Date.  On the Closing Date,
Seller shall, at Seller’s sole cost and expense (except for the sharing of
Closing charges as provided in Section 14.6 below and except as otherwise
provided in Section 6.3 below), cause the Title Insurer to issue the Title
Policy (or an unconditional commitment to issue such Title Policy), to
Purchaser pursuant to and in accordance with the Title Commitment, insuring fee
simple title to the Land and Building (and any rights in any appurtenant
easements) as of the date and time of recording of the Deed, in each case
subject only to the Permitted Title Exceptions and such other title exceptions
as Purchaser may approve.  Purchaser
shall have the right, at any time prior to Closing, to cause the Title Insurer
to issue (herein, the “Purchaser Endorsements”), at Purchaser’s sole cost and
expense and without obligation on the part of Seller to obtain any such
endorsements as Purchaser shall deem necessary (provided that any endorsements
provided by Seller in order to resolve unpermitted title exceptions shall be
obtained at Seller’s expense and shall not be Purchaser Endorsements).  Purchaser’s ability or inability to obtain any
such Purchaser Endorsements shall not constitute a condition precedent to
Purchaser’s obligations hereunder nor shall any failure to so obtain any such
Purchaser Endorsements be deemed a default of Seller hereunder.

 

6

 

ARTICLE 6

 

POSSESSION,
PRORATIONS AND CLOSING COSTS

 

6.1           Possession.  Possession of the Property shall be delivered to Purchaser on the
Closing Date, subject to the rights of tenants in possession under the Leases
and the rights of other parties under Permitted Title Exceptions.

 

6.2           Prorations.  All prorations shall be calculated on the basis of Seller owning
the Property before the Closing Date and Purchaser owning the Property on and
after the Closing Date.

 

(a)           Taxes. General real estate taxes and
annual installments of special assessments affecting the Property shall be
prorated on a calendar year basis as of the Closing Date on the basis of 100%
of the most recent ascertainable amounts of each such item and the net credit
to Seller or Purchaser (as the case may be) shall be applied as an adjustment
to or against the Purchase Price on the Closing Date.  Any such taxes prorated on an estimated basis on the Closing Date
shall be reprorated by the parties when and as the actual amount of such item
becomes known.  Further, in the event of
any abatement, refund or reduction of taxes for which Seller has given a
proration credit to Purchaser hereunder, the parties shall reprorate the
affected portions of taxes based upon the final determination of said taxes,
taking into account the foregoing abatement, refund or reduction.  Any adjustment due to reproration shall be
effected in cash not later than ten (10) days following final determination of
the amount of such item and demand by the party to whom payment is due.

 

Notwithstanding
the foregoing, in order to take into account the various methods by which
tenants are required to reimburse the landlord for real estate taxes or
assessments, the parties have agreed to the following terms (which assume that
Closing will occur prior to the date by which the July 1, 2003 tax bill, if
unpaid, would be delinquent, that such bill will not be paid before the latest
possible date prior to delinquency, and that it will be paid by Purchaser):

 

(i)            With respect to amounts payable by
Barnes & Noble, Petco, Pier One, T.J. Maxx, Toys “R” Us or Hooters, or any
other Tenant which pays lump sum reimbursements of real estate taxes or
assessments pursuant to specific invoicing for such amounts:  (-a-) Seller shall be entitled to retain all
reimbursements made with respect to real estate taxes or assessments set forth
in the December 1, 2002 tax bill or any prior tax bill; (-b-) Purchaser
shall be entitled to retain all reimbursements made with respect to the July 1,
2003 tax bill and all subsequent tax bills; and (-c-) real estate taxes with
assessments affecting the portion of the Property relating to such Tenants
shall not be prorated;

 

(ii)           With respect to arrangements wherein
Tenants pay monthly installments on account of anticipated future real property
tax bills, subject to year-end reconciliation, (-a-) Seller shall be entitled
to retain all such installments which were paid in anticipation of the December
1, 2002 tax bill or any prior tax bill, (-b-) Purchaser shall be entitled to
retain (or to be given credit by Seller for) all such installments which have
been or will be paid in anticipation of the July 1, 2003 or later tax bills,
including, without limitation, all monthly installments of such amounts payable
by Tenant on or after January 1, 2003; and (-c-) real estate taxes with
assessments affecting the portion of the Property relating to such Tenants
shall not be prorated

 

(iii)          With respect to (-a-) real estate
taxes and assessments pertaining to that portion of the Real Property
comprising the four undeveloped out lots and the expansion parcel, and (-b-)
those portions of the total real estate taxes and assessments levied against
the Building but not reimbursable by Tenants because of vacancy, or not fully
reimbursable by Tenants under the specific terms of their leases,

 

7

 

such amounts shall be prorated
between Seller and Purchaser pursuant to the calendar year method set forth in
the first full subparagraph of this Section 6.2(a) and appropriate credits
given.

 

In the event
any Tenants are delinquent as of the Closing with respect to any tax
reimbursement obligations to be prorated or otherwise allocated in accordance
with this Section 6.2(a), collections and payments as between Seller and
Purchaser with respect to such delinquencies shall be governed by the terms of
Section 6.2(j) below.

 

(b)           Fixed, Minimum and Base Rents.  Subject to Section 6.2(j) of this Agreement,
(i) Seller shall be entitled to fixed, minimum and base rents which are due or
past due, prorated to the Closing Date regardless of when such payments are
actually made, and (ii) Purchaser shall be entitled to all fixed, minimum and
base rents accruing and prorated on or after the Closing Date.

 

(c)           Overage Rents.  Subject to Section 6.2(j) of this Agreement,
Seller shall be entitled to all Overage Rents which are due or past due or not
yet due but accrued under the terms of the Leases, prorated to the Closing
Date, regardless of when such payments are actually made.  “Overage Rents” to be prorated hereunder
shall include, but not be limited to, percentage rents, consumer price index
escalation payments and other similar rental payments in excess of fixed,
minimum and base rents under the Leases, whether finally determined before or
after the expiration of the fiscal years under various Leases. Overage Rents
shall be separately prorated under each Lease on the basis of the fiscal year
set forth in each Lease for the payment of Overage Rents.  The foregoing notwithstanding, Overage Rents
shall not be credited at Closing, but shall instead be adjusted and paid,
subject to collection from tenants, at the year-end adjustment.  Any interim Overage Rent payments made before
the Closing Date shall be retained by Seller until year-end adjustment and
determination of each party’s allocable share thereof.  Any amounts received by Purchaser on or
after the Closing Date as interim payments of overage rents shall be retained
by Purchaser until year-end adjustment and determination of Seller’s allocable
share thereof.  Upon final determination
of Overage Rents owed by a tenant under its Lease for the fiscal year under
that Lease in which the Closing Date occurs, Seller and Purchaser shall adjust
between themselves amounts owed for such fiscal year on account of Overage
Rents, and Seller’s allocable share of such Overage Rents shall be equal to an
amount determined by multiplying total Overage Rents owed by the fraction whose
numerator is the number of days in such fiscal year until the Closing Date, and
whose denominator is the total number of days in such fiscal year.  At the end of the fiscal year for each Lease
for which Overage Rents are due from a tenant, Purchaser shall promptly bill
the amounts due, if necessary. To the extent received by Purchaser under the
applicable Lease, Purchaser shall furnish Seller with financial statements
indicating the sales and Overage Rent figures for each tenant for all relevant
periods.  Within fifteen (15) days after
collection, Purchaser shall remit to Seller its allocable share, less interim
payments previously retained by Seller, if any; provided, however, in no event
shall Purchaser be obligated to remit any amounts payable to Seller as provided
in this sentence unless actually collected from the applicable tenants. If
Seller has retained amounts in excess of its allocable share, Seller shall,
within fifteen (15) days after notice from Purchaser of the excess owed
Purchaser, remit such excess to Purchaser. 
Any Overage Rents with respect to Leases terminated before the Closing
Date shall belong entirely to Seller, and Purchaser shall remit to Seller all
payments made to Purchaser on or after the Closing Date on account of such
Overage Rents.  Any Overage Rents with
respect to Leases commencing on or after the Closing Date shall belong entirely
to Purchaser.

 

(d)           Common Area Maintenance Charges, Taxes and Similar
Expenses.  To the extent
tenants under Leases pay monthly estimates of common area maintenance charges,
insurance charges,

 

8

 

taxes and similar expenses or
other amounts, including administrative fees and other fees and expenses which
are allowed by the Leases to be included as such expenses (collectively,
“Charges”) with an adjustment at the end of each fiscal year applicable to
Charges, they shall be prorated in accordance with this Section 6.2(d).  Until the adjustment described in this
section is made, any amounts received by Seller as interim payments of Charges
before the Closing Date shall be retained by Seller.  Any amounts received by Purchaser as interim payments of Charges
after the Closing Date shall be retained by Purchaser until year-end adjustment
and determination of Seller’s allocable share thereof except to the extent
provided in Section 6.2(j) below. 
Within ninety (90) days after the conclusion of the calendar year,
Purchaser shall prepare the reconciliation and Tenant statements of Charges for
the calendar year (2003), Seller’s allocable share of actual Charges for Leases
in effect as of the Closing Date shall be determined by multiplying the total
payments due from tenants for such fiscal year (the sum of estimated payments
plus or minus year-end adjustments) by a fraction, the numerator of which is
Seller’s actual expenditures for providing common area maintenance services,
insurance, taxes or other services which are the basis of the Charges accruing
until the Closing Date (or that portion of the fiscal year prior to Closing
Date in which the Lease is in effect), and the denominator of which is the
total cost of providing such services or paying such taxes or other items for
the entire year (or that portion of the year in which the Lease is in
effect).  If any Lease provides for the
adjustment of Charges on the basis of a period other than the calendar year, a
reasonable method of calculating the adjustment for that tenant will be
determined so that all adjustments can be made at the same time.  If, on the basis of amounts actually
incurred and the estimated payments received by Seller on or before the Closing
Date, Seller has retained amounts in excess of its allocable share, it shall,
within fifteen (15) days after notice from Purchaser of the excess owed
Purchaser, remit such excess to Purchaser. 
If, on the basis of the foregoing amounts, Seller has retained less than
its allocable share, Purchaser shall, within fifteen (15) days after notice
from Seller of the amount owed Seller, remit such amount to Seller; provided,
however, that in no event shall Purchaser be obligated to credit or otherwise
remit such deficient amount to Seller unless actually collected from the
applicable tenants.  Seller’s and
Purchaser’s calculations shall, in all events, be approved by the other party
prior to remitting any statements to tenants of the Property.  Notwithstanding the aforesaid, with regard
to any Tenant payments in respect of real estate taxes or assessments, the
terms of Section 6.2(a) above shall govern to the extent inconsistent with any
of the provisions of this Section 6.2(d).

 

(e)           Marketing Expenses.  With respect to any Leases which require the
tenants thereunder to make payments to the marketing fund, such payments shall
be prorated between Purchaser and Seller in accordance with this Section
6.2(e).  The total of all such payments
collected by Seller prior to the Closing Date shall be compared to the total of
all marketing expenses theretofore incurred and paid by Seller (or for which
Seller is otherwise entitled to reimbursement, including administrative fees and
other fees and expenses) in the current fiscal year through the Closing
Date.  To the extent that the aggregate
amount of such payments received by Seller exceeds the aggregate amount of such
expenses incurred and paid by Seller, Purchaser shall receive a credit for such
excess. To the extent such expenses exceed the amount of such payments, Seller
shall receive a credit for such excess.

 

(f)            Prepaid Rents and Security
Deposits.  All prepaid
rents of all tenants under Leases not theretofore applied by Seller, with
interest thereon to the extent any interest is required to be paid to such
tenants under the terms of their Leases, shall be prorated as of the end of the
Closing Date.  Purchaser shall receive a
credit at Closing for 100% of the security deposits and related interests held
by Seller under the Leases as of the Closing Date.  Seller shall not apply any security deposits held thereby as of
the date of this Agreement to any delinquent amounts owing by tenants, unless
the applicable Lease expires or the applicable tenant vacates its premises.

 

9

 

(g)           Contracts.  Purchaser shall be entitled to a credit for sums that are due (or
accrued) and unpaid as of the end of the Closing Date under any Contracts, and Seller
shall be entitled to a credit to the extent that sums have been paid under any
Contracts for services to be performed or goods to be delivered after the
Closing Date. Seller shall be responsible for payment of any base wages
(excluding accrued vacation, sick days and other benefits), and taxes
applicable to such wages owing to or in respect of employees of Seller
performing services at the Property for any period prior to and including the
Closing Date.  Purchaser is under no
obligation to retain or hire any such employees.

 

(h)           Other Items of Expense or Receipt.  All other customarily prorated items of
expense or receipt shall be prorated between the parties hereto as of the end
of the Closing Date as is customary for similar commercial real estate transactions
in the Muskegon, Michigan area.  Except
with respect to items prorated pursuant to the provisions of Sections 6.2(a)
through (g), Seller shall be responsible for payment of any and all bills or
charges incurred prior to the Closing Date for work, services, supplies or
materials delivered or performed prior to the Closing Date, and Purchaser shall
be responsible for payment of any and all bills or charges (i) incurred on or
after the Closing Date for work, services, supplies or materials delivered or
performed on or after the Closing Date or (ii) for which it received a
proration credit.  Purchaser shall not
purchase, nor shall there be any proration credit given for, any of Seller’s
receivables arising from the operation of the Property.

 

(i)            Payment of Prorations.  Prorations for all items specified in this
Article 6 shall be determined (including by reasonable estimation) on the
Closing Date and reflected in an adjustment in the Purchase Price on the
Closing Date, except for proration items relating to later collections or which
cannot be reasonably estimated at closing. 
In all cases, prorations shall be reconciled, as appropriate, with
end-of-year actual figures, and mutual payments made pursuant to such
reconciliation.

 

(j)            Collections and Application of Payments after Closing.  From and after Closing, all rent collections
by either Purchaser or Seller shall be first applied to current monthly
charges, with the balance, if any, to be applied to arrears for months
following Closing and then for arrears in months prior to Closing.  After the Closing, Seller shall retain the
right to collect any pre-Closing rent delinquencies and shall be permitted to
pursue such amounts directly from the tenants; provided, however, that in the
event Seller institutes any action or proceeding to collect any delinquent rent
after Closing, it shall not seek any remedies which would cause eviction of the
tenant or otherwise interfere with a tenant’s possessory rights, or seek to
terminate any lease; and provided, further, however, Purchaser shall promptly
remit to Seller any rent delinquencies which come into the possession of
Purchaser after Closing to which Seller is entitled.  Notwithstanding the aforesaid, if any tenant specifically
earmarks portions of any payments for reimbursement to Seller of overdue common
area maintenance charges, taxes, insurance premiums or other reimbursable
expenses due Seller for periods predating the Closing, such earmarked funds
shall be paid to Seller regardless of any other priority herein.  With respect to previously unpaid amounts
owed by tenants who are no longer tenants of the Property as of the Closing
Date, Seller shall retain all rights relating thereto.

 

(k)           Mortgage. 
Purchaser shall receive a credit at Closing equal to the outstanding
principal (through the Closing Date) on the Greenwich Capital Financial
Products, Inc. (“Greenwich Capital”) first mortgage loan secured by a portion
of the Real Property (the “Greenwich Mortgage”).  Seller shall pay the one percent (1.00%) loan assumption fee due
to Greenwich Capital and all other costs and charges in connection with
effecting such loan assumption transaction other than Purchaser’s legal review
of the

 

10

 

documents.  Seller shall receive a credit at Closing
equal to the amount of funds in escrow inclusive of common area maintenance,
property taxes, insurance, capital improvements, and other funds retained by
Greenwich Capital or its agents at the date of Closing to the extent that such
escrowed funds are readily applicable to Purchaser’s future operating costs or
are otherwise refundable to Purchaser, and do not represent reserves, holdbacks
or escrows for any deferred maintenance or capital improvements which Greenwich
Capital established as a requirement prior to the date of execution of this
Agreement.

 

6.3           Closing Costs.  Seller shall pay all charges customarily
attributable to sellers for comparable transactions in the geographical area of
the Real Property including, without limitation, all title charges and premiums
attributable to an ALTA owner’s title policy with standard exceptions deleted,
any title insurance costs in connection with assumption of the Greenwich
Mortgage, all survey charges and fees for the Survey, all state and county real
property transfer or excise taxes (if any), one-half of the escrow costs (as
described in Section 7.2 below) and one-half of the charges described in
Section 14.6 below.  Purchaser shall pay
all charges customarily attributable to purchasers for comparable transactions
in the geographical area of the Real Property including, without limitation,
all excess title charges and premiums for obtaining the Purchaser Endorsements,
all recordation charges (other than recording of any documents in connection
with the assumption of the Greenwich Mortgage), all personal property sales or
use taxes (if any), all title insurance and money-lender’s escrow charges
incurred in connection with any mortgage loans obtained by Purchaser (other
than the Greenwich Mortgage), one-half of the escrow costs (as described in
Section 7.2 below) and one-half of the charges described in Section 14.6
below.  The parties shall each be solely
responsible for the fees and disbursements of their respective counsel and
other professional advisers.

 

ARTICLE 7

 

DEPOSIT AND CLOSING
ESCROW

 

7.1           Deposit in Escrow.  On or before the last of the dates of
Seller’s and Purchaser’s execution and delivery of this Agreement to Purchaser,
the parties, through their respective attorneys, shall establish an escrow with
the Escrowee, subject to the terms of this Agreement.  Within one (1) business day following the opening of said escrow,
Purchaser shall cause the Deposit in the amount of One  Hundred Thousand and 00/100 Dollars
($100,000.00), to be deposited in escrow. On the Due Diligence Approval Date,
provided Purchaser has not terminated this Agreement, the entire Deposit shall
be deemed earned by Seller and shall be non-refundable, except as otherwise set
forth in this Agreement.  Escrowee shall
be directed by the parties to invest the Deposit in money market accounts
designated by Purchaser and reasonably acceptable to Seller, with interest
thereon being applied on account of the Purchase Price at Closing, or if
Closing does not occur for any reason, then such interest shall be paid to the
party entitled to the Deposit.  The
parties shall promptly and in good faith direct Escrowee to disburse the
Deposit, with interest earned thereon, to the party entitled to the same as set
forth in this Agreement, or as otherwise provided in Section 7.2 below;
provided, however, that no additional instruction, approval or further action
shall be required for the Deposit to be released to Purchaser if this Agreement
is timely terminated by Purchaser pursuant to Sections 4.1 or 13.1 hereof.

 

7.2           Closing Escrow.  On or prior to the Closing Date, the parties
through their respective attorneys, shall establish a deed and money escrow
with the Escrowee through which the transaction contemplated hereby shall be
closed.  Upon opening of said escrow,
the Deposit (plus interest thereon) shall be disbursed from the above-described
escrow with Escrowee and deposited in the deed and money escrow.

 

11

 

Unless otherwise required by
Escrowee, this Agreement shall constitute the escrow instructions for any such
escrows.  The escrow costs and fees for
each of the escrow accounts described in this Article 7 shall be equally
divided between Purchaser and Seller.

 

ARTICLE 8

 

BROKERAGE

 

8.1           Brokerage.  Seller and Purchaser each hereby represents and warrants to the
other that it has not dealt with any broker or finder in respect to the
transaction contemplated hereby (other than Seller, who has engaged May Center
Advisors, Inc. (“Seller’s Broker”) as its adviser.   Seller agrees to pay Seller’s Broker a real estate commission at
Closing.  Seller and Purchaser each
hereby agrees to indemnify the other for any claim for brokerage commission or
finder’s fee asserted by any person, firm or corporation other than Seller’s
Broker claiming to have been engaged by the party making such indemnification.

 

ARTICLE 9

 

CASUALTY AND
CONDEMNATION

 

9.1           Casualty.  If, prior to the Closing Date, the Building shall be destroyed or
damaged in an amount in excess of the Material Damage Amount (defined below),
by fire or other casualty, or if such damage or destruction gives rise to the
right of any tenant of at least 5,000 square feet to terminate its Lease, then
Purchaser may terminate this Agreement, or if the Building shall be destroyed
or damaged in an amount in excess of the Excess Material Damage Amount (defined
below), by fire or other casualty, then Seller may terminate this Agreement,
and in either such event, all documents shall be returned to the respective
parties, the Deposit shall be promptly returned to Purchaser, this Agreement
shall become null and void, and neither party shall have any further rights or
obligations hereunder (subject, however, to survival of Purchaser’s Indemnity
and Purchaser’s Confidentiality Obligations). 
Seller agrees to give Purchaser notice of any Casualty within
seventy-two (72) hours after Seller obtains knowledge of any such event, and
Purchaser or Seller (if and to the extent applicable) may terminate this
Agreement by delivering written notice to the other within five (5) business
days following the delivery of such notice. Failure by Purchaser or Seller (as
applicable) to timely exercise such termination right shall be conclusive
evidence that such right has been waived. 
With respect to any casualty hereunder for which this Agreement is not
terminated, upon the Closing Date Seller shall (i) credit the Purchase Price
with the amount of any deductible under its property insurance policy (or the
estimated cost to repair if less than the deductible) and (ii) assign to
Purchaser the interest of Seller in and to any insurance proceeds with respect
thereto, and Purchaser and Seller may negotiate the commencement of and payment
for repairs in advance of Closing.  For
the purposes hereof, the term “Material Damage Amount” shall mean damage
reasonably determined to be in excess of Two Hundred Thousand and 00/100
Dollars ($200,000.00), and the term “Excess Material Damage Amount” shall mean
damage reasonably determined to be in excess of One Million and 00/100 Dollars
($1,000,000.00).  In the event the
parties hereto are unable to agree upon the dollar amount of the aforesaid
damages within ten (10) days after the date of such fire, vandalism or other
casualty, then the determination of said amount by a licensed architect
selected by Seller and reasonably acceptable to Purchaser shall be binding upon
the parties hereto.  If the Closing Date
is scheduled to occur prior to the last day on which Purchaser is entitled to
elect to terminate this Agreement under this Section 9.1, then Closing shall be
delayed until the last day on which Purchaser is entitled to make such 

 

12

 

election.

 

9.2           Condemnation.  If, prior to the Closing Date, any judicial, administrative or
other proceeding relating to the proposed taking of any portion of the Land or
Building by condemnation or eminent domain or any act in the nature of eminent
domain is instituted, Seller shall furnish Purchaser notification thereof
within seventy-two (72) hours of Seller’s learning of same, and Purchaser shall
have the right, if such proceeding relates to a Substantial Portion (as
hereinafter defined) of the Land or Building, to terminate this Agreement by
giving Seller written notice of such termination within five (5) business days
after receipt of written notification of any such proceeding.  Purchaser’s failure to give such notice in
such time shall be conclusive evidence that such termination right has been
waived and, in such event, Purchaser shall be assigned, at Closing, all of
Seller’s rights to any proceeds or award for such taking.  Should Purchaser elect to terminate this
Agreement due to the institution of such proceeding, all documents shall be
returned to the respective parties, the Deposit shall be promptly returned to
Purchaser, this Agreement shall become null and void, and neither party shall
have any further rights or obligations hereunder (subject, however, to survival
of Purchaser’s Indemnity and Purchaser’s Confidentiality Obligations).  If the proceeding does not involve a
Substantial Portion of the Real Property, Purchaser shall not have the right to
terminate this Agreement but shall be assigned, at Closing, all of Seller’s
rights to the proceeds or award relating thereto, provided that Seller shall
not settle any condemnation claim or accept any award without Purchaser’s
consent, which shall not be unreasonably withheld or delayed.  For the purposes of this paragraph, the
proceeding shall be deemed to involve a “Substantial Portion” of the Land and
Building if the proceeding (i) affects more than the equivalent of Two Hundred
Thousand and 00/100 Dollars ($200,000.00), in value, as reasonably determined
by the parties; (ii) causes a permanent material deprivation of access to the
Land and Building; (iii) involves a taking of parking areas located on the Real
Property such that subsequent to such taking, the Land and Building will be in
violation of municipal zoning codes and ordinances, or in violation of parking
requirements contained in any of the Leases or recorded documents; (iv) gives
rise to the right of a tenant of at least 5,000 square feet to terminate its
Lease; or (v) renders impracticable the development or sale of any of the
undeveloped outlots or the expansion area.

 

ARTICLE 10

 

AFFIRMATIVE COVENANTS
OF SELLER AND PURCHASER

 

10.1         Affirmative Covenants.

 

(a)           Inspections.  From the date hereof to the Closing Date, Seller shall permit
Purchaser and any of its officers, employees, agents, attorneys, accountants,
architects, engineers and consultants as designated by Purchaser (collectively,
“Purchaser’s Representatives”) access to Seller’s books and records relating to
the ownership and operation of the Land and Building and access to and entry
upon the Land and Building, to examine, inspect, measure and test the Land and
Building (herein collectively, the “Inspections”), all for the purpose of
performing its due diligence investigations described in Section 13.1
below.  Prior to conducting any
Inspections, Purchaser shall obtain authorization of Seller or its managing
agent.  No boring, drilling or other
physical intrusion into the structures or ground comprising the Property
(herein, “Invasive Inspections”) shall be made without the prior written consent
of Seller (which consent shall not be unreasonably withheld).  Purchaser shall give not less than
twenty-four (24) hours prior notice to Seller prior to any entry upon the Land
or Building for the purpose of conducting such Inspections, and such entry shall
be scheduled and coordinated with Seller or its managing agent.  At

 

13

 

Seller’s election, a
representative of Seller or its managing agent shall be present during any
entry by any of Purchaser’s Representatives upon the Land or Building for
conducting said Inspections.  Access to
the Land and Building by Purchaser’s Representatives shall be subject (i) to
the requirements of any permits, codes, regulations, rules, laws, statutes,
other requirements of any governmental body, agency or authority having
jurisdiction, (ii) any easements of record, as well as the requirements of
private covenants or restrictions, the existence of which Seller has
specifically and expressly brought to Purchaser’s attention in writing, and
(iii) rights of tenants under Leases. 
Purchaser’s Representatives shall work in harmony with all other
contractors or workmen performing work at or around the Land or Building site.
Further, Purchaser shall use reasonable efforts to insure that neither it nor
any of the other Purchaser’s Representatives shall materially interfere with
the ongoing operations occurring at the Building or adjacent site during the
course of performing any such Inspections. 
Purchaser shall furnish Seller with evidence of such insurance as Seller
may reasonably require Purchaser to carry against liabilities which may arise
in connection with the Inspections. 
Purchaser shall not cause or permit any mechanic’s liens, materialmen’s
liens or other liens to be filed against the Property as a result of the
Inspections. The right of Purchaser or the other Purchaser’s Representatives to
enter upon the Land or Building to perform the Inspections shall be limited to
the period from and after the Effective Date through the Closing Date. Further,
such right to enter upon the Land or Building shall immediately terminate upon
termination of this Agreement for any reason (subject, however, to Purchaser’s
Indemnity, as hereinafter described). 
Seller shall have the right to approve, in advance, any contractors or
consultants performing any Invasive Inspections at the Land or Building, as
well as the scope of any such Invasive Inspections.  Seller shall not unreasonably withhold such approvals, and shall
respond to any request for such approvals within a reasonable time after
receipt of the request and other necessary information.  Purchaser shall promptly repair and/or
restore to substantially the pre-existing condition any damage to the Property
caused by entry upon the Land or Building by Purchaser or the other Purchaser’s
Representatives.  Purchaser shall
indemnify, defend and hold harmless Seller, its officers, directors,
shareholders, partners, tenants, agents and employees (collectively, the
“Indemnified Parties”), from and against any and all actions, losses, costs,
damages, claims, liabilities, and expenses (including court costs and
reasonable attorney’s fees) brought, sought or incurred by or against any of
the Indemnified Parties resulting from, arising out of, or in any way relating
to, entry upon the Land or Building by Purchaser or any of the other
Purchaser’s Representatives (except to the extent that such actions, losses,
costs, damages, claims, liabilities and expenses are caused by the acts,
omissions or negligence of the Indemnified Parties).  The foregoing indemnification and repair/restoration obligations
(herein collectively referred to as “Purchaser’s Indemnity”) shall expressly
survive the Closing or earlier termination of this Agreement for the longest
period allowed by applicable law.

 

(b)           Development Materials.  From the date hereof to the Closing Date,
Seller shall make available to Purchaser the following items (the “Development
Materials”) concerning the Real Property for Purchaser’s inspection and
copying, but only to the extent such items are in the actual possession of
Seller or its managing agent (provided, however, that Seller’s obligation to
make available to Purchaser the Leases, Contracts and Licenses shall not be
conditioned upon such items being in the actual possession of Seller or its
managing agent):

 

(i)            Plans and
specifications, including mechanical and electrical plans and specifications
and architectural floor plans for the Building, parking lot and other
improvements situated on the Real Property (collectively, the “Plans”);

 

(ii)           the Leases, Contracts and Licenses;

 

14

 

(iii)          Soils reports and
environmental reports prepared for Seller and relating to the Real Property;

 

(iv)          Written notices (if
any) from the City of Norton Shores, County of Muskegon, State of Michigan or
United States environmental protection agency pertaining to current violations
of the Real Property with applicable environmental laws; and

 

(v)           Existing title
insurance policy and survey covering the Land and Building.

 

(c)           Leasing of Vacant Space.  Seller expressly reserves the right to
continue to show and take offers to lease all vacant space within the
Building.  If Seller desires to enter
into any such lease of vacant space, Seller shall submit to Purchaser a deal
sheet describing the terms of any proposed lease, as well as the form of lease
which Seller proposes to use, and all construction obligations, tenant
improvement costs and allowances and leasing commissions.  Purchaser shall thereafter have four (4)
business days after receipt of such information in each case to provide its
written approval or disapproval thereof. 
Purchaser shall be deemed to have consented to any such proposed lease
if it fails to respond to Seller’s request for such consent within four (4)
business days after such request and receipt of the aforedescribed lease
information.  Until the Due Diligence
Approval Date, Purchaser’s approval shall not be unreasonably withheld.  From and after the Due Diligence Approval
Date if Purchaser has not terminated this Agreement, Purchaser’s approval of an
proposed lease may be given or withheld in Purchaser’s sole discretion.  If Purchaser approves such lease proposal,
then Seller shall have the right to enter into a lease on materially the same
economic terms and conditions as set forth in the deal sheet previously
furnished to Purchaser.  In the event
any such proposed lease includes landlord construction obligations, tenant
improvement allowances and/or lease commissions, such costs shall be prorated
between Seller and Purchaser based upon the parties’ respective days of
beneficial ownership of the Building during the scheduled term of the lease
(excluding periods prior to rental commencement under such lease), with Seller
receiving a proration credit at Closing in an amount equal to the total of such
costs incurred by Seller multiplied by a fraction, the numerator of which is
the number of days from and after the Closing Date and through the balance of
the scheduled term of such lease, and the denominator of which is the total
number of days from and after the date of rental commencement under such lease
and through the balance of the scheduled term of such new lease.  Seller shall be responsible for all tenant
fit-up landlord is obligated to pay as of Effective Date costs and leasing
commissions relating to the Leases with Hobby Lobby and American Dollar and
agreed by Seller any time prior to the Closing Date.  Any such costs to be incurred after the Closing Date shall be
Purchaser’s sole obligation.  To the
extent Seller procures a tenant or user for the Land or Building, it shall be
compensated an amount equal to (a) five percent (5%) of the gross rental
revenue for the first five (5) years of the term (or of the actual number of
years of the term, if less), of any lease for vacant in-line space or (b) six
percent (6%) of gross rental revenue for ground leases of undeveloped land at
the Property (out lots or the expansion parcel) for the first five (5) years of
the term of such lease, and three percent (3%) of the gross rental revenue for
the next five (5) years of the term of such lease (or of the actual number of
years of the term of such lease, if less), which transaction is executed not
later than six (6) months after the Closing Date.  One half of the compensation for such services shall be paid at
commencement of payment of rent by the tenant, and one-half 180 days
thereafter.

 

(d)           Contracts.  If, after the Effective Date, Seller desires to enter into any
new Contract, Seller shall submit to Purchaser the form of such new Contract.
Purchaser shall thereafter have four (4)

 

15

 

business days after receipt of
such proposed new Contract in each case to provide its written approval or
disapproval thereof. Until the Due Diligence Approval Date, Purchaser’s
approval shall not be unreasonably withheld. 
From and after the Due Diligence Approval Date if Purchaser has not
terminated this Agreement, Purchaser’s approval of an proposed Contract may be
given or withheld in Purchaser’s sole discretion. Purchaser shall be deemed to
have consented to any such proposed new Contract if it fails to respond to
Seller’s request for such consent within the aforementioned four (4) business
days.  If Purchaser approves (or is
deemed to have approved) the proposed new Contract, then Seller shall have the
right to enter into the new Contract on materially the same terms and
conditions as set forth in the form previously furnished to Purchaser.

 

(e)           Insurance.  Seller hereby covenants and agrees that, from the Effective Date
to the Closing Date, it shall cause to be maintained in full force and effect
comparable liability, casualty and other insurance as Seller currently has in
effect upon and in respect to the Property.

 

(f)            Rent Roll.  Seller has provided to Purchaser a certified rent roll, which
rent roll is attached as Exhibit 10.1(f) hereto.

 

(g)           Lease Modifications.  Seller will not enter into any amendment to
or modification of any of the Leases prior to the Closing Date which will
reduce, forgive, or postpone or anticipate any rents or which would otherwise
materially affect the value of the Property without Purchaser’s reasonable
consent, which consent may be conditioned upon a proposal for a reduction in
the Purchase Price consistent with the resulting reduction in income or value
of the Property.

 

(h)           Estoppels.  Seller shall request and use reasonable efforts to obtain and
deliver to Purchaser at least five (5) business days prior to the Due Diligence
Approval Date (the “Estoppel Delivery Date”) an estoppel letter dated not
earlier than April 15, 2003 from each tenant or occupant of the Property in the
form attached hereto as Exhibit “10.1(h)”, except that the estoppel letter from
any tenant (as hereinafter defined) may be in such form as mandated or
authorized by such tenant’s Lease.

 

In the event
that Purchaser has not received an estoppel letter from each Significant Tenant
and from non-Significant Tenants occupying in the aggregate 90% of all space in
the Property occupied in the aggregate by all non-Significant Tenants hereunder
in a form reasonably acceptable to Purchaser by the Estoppel Delivery Date,
Purchaser shall have the right to terminate this transaction, in which event Purchaser
shall receive a refund of the Deposit, and neither Seller nor Purchaser shall
have any further obligations or liabilities hereunder except as otherwise
provided in this Agreement. 
“Significant Tenants” are those Tenants that occupy at least 5,000 or
more square feet of leasable space at the Property.

 

Notwithstanding
the foregoing, if (i) Seller is unable to obtain all of the required estoppel
letters by the Estoppel Delivery Date, or (ii) any estoppel letters submitted
to Purchaser on or prior to the Estoppel Delivery Date are unsatisfactory to
Purchaser in form or content, Seller shall, in either case, have an additional
twenty (20) day period after the Estoppel Delivery Date or (if later) after
Purchaser provides notice of such dissatisfaction, to obtain the required
numbers of, or satisfactorily revised, estoppel letters.  In connection with any extension under this
Section 10.1(h) to meet the estoppel letter requirements, the Due Diligence
Approval Date shall be automatically extended twenty (20) days.

 

16

 

ARTICLE 11

 

PURCHASER’S
REPRESENTATIONS AND WARRANTIES

 

11.1         Purchaser’s representations and warranties.  Purchaser represents and, warrants with
Seller the following as of the date hereof and also as of the Closing Date,
which representations and warranties shall survive the Closing for a period of
one (one) year, and upon which Seller does and shall continue to rely:

 

(a)           That Purchaser is a limited
partnership duly organized and validly existing under the laws of the State of
Delaware and has all requisite power and authority to enter into this Agreement
and incur its obligations hereunder. 
The execution and delivery of this Agreement and the performance of
Purchaser’s obligations under this Agreement have been duly authorized, and the
individual executing this Agreement on behalf of Purchaser has full authority
to do so.

 

(b)           That this Agreement constitutes the
legal, valid and binding obligation of Purchaser, enforceable against Purchaser
in accordance with its terms, and the execution and performance of this
Agreement does not and will not conflict with, or cause a default under, (i)
any agreement to which Purchaser is a party or by which Purchaser is bound or
(ii) any statute, law, decree, regulation or order of any governmental
authority applicable to Purchaser.

 

11.2         Indemnity.  Subject to Section 17.3, Purchaser shall indemnify, defend and
hold Seller harmless from and against any and all material loss, cost,
liability or expense suffered by any of them as a result of a breach of any of
the foregoing warranties and all other representations and warranties set forth
in this Agreement.

 

ARTICLE 12

 

SELLER’S
REPRESENTATIONS AND WARRANTIES 

 

12.1         Seller’s representations and warranties.  Seller represents and warrants to Purchaser
the following as of the date hereof and also as of the Closing Date, which
representations and warranties shall survive the Closing for a period of one
(1) years, and upon each of which Purchaser does and shall continue to rely:

 

(a)           That each entity comprising Seller is
a validly existing limited liability company, in good standing under the laws
of Delaware as of the Effective Date and through and including the Closing
Date, except to the extent which may necessitate Seller’s exercise of its
special termination right in Section 13.3 below, Seller has all requisite
right, power and authority to enter in and consummate this Agreement and incur
its obligations hereunder, that the execution and delivery of this Agreement and
performance of Seller’s obligations hereunder have been duly authorized, that
there are no additional approvals or consents required, and that the
individuals executing the Agreement on behalf of Seller have full authority to
do so.

 

(b)           That Seller has not received any
notice, nor does it have any knowledge of any violation by Seller of any law,
zoning ordinances or building rules or regulations affecting the Property nor
has Seller received any notice of, nor has Seller any knowledge of or
information as to any existing or threatened condemnation or other legal action
by a governmental body involving the Property.

 

17

 

(c)           That Seller has not contracted for
any services or employment and has made no commitments or obligations therefor
which will bind Purchaser as a successor in interest with respect to the
Property except as provided in the Contracts.

 

(d)           That to Seller’s knowledge Seller
presently has, and on the Closing Date will have, all current licenses required
to be held by Seller to operate the Property as a commercial retail shopping
center required by all or any governmental authorities asserting jurisdiction
over the Property.  Such licenses are
and shall on the Closing Date be in good standing, are free from violations,
and freely transferable to Purchaser to the extent permitted by law.

 

(e)           That the Rent Roll attached hereto as
Exhibit 10.1(f) is a true and correct list of all of the Leases presently in
force and affecting the Property and truly and accurately, and without omitting
any information the omission of which would be misleading, sets forth the
information contained therein; that there are no Leases or occupancy agreements
currently in effect which affect the Property other than those listed on
Exhibit 10.1(f) (together with any additional Leases approved by Purchaser);
that no amendment, modification, or supplement of any kind of said Leases
exists other than as specified thereon; that, except as may be shown on Exhibit
10.1(f) as updated to reflect events occurring between the Effective Date and
the Closing, all rental and other payments due under the Leases as of the date
hereof have been paid in full; that Seller has paid in full all expenses
connected with the execution and delivery of the Leases, including all tenant
allowances; and that except as may be indicated on Exhibit 10.1(f), no tenants
of the Property are entitled to any monetary concessions, rebates, allowances,
or free rent for any period after the Closing Date.

 

(f)            That Seller has received no notice
of any building violation; that to Seller’s knowledge the parking servicing the
Property (all of which is located upon the Land) complies with the requirements
of all Leases and with all applicable statutes, ordinances, rules, and
regulations; and that to Seller’s knowledge all improvements and all parts
thereof are materially in conformity with all applicable governmental and other
legal requirements including health, fire, and building codes.

 

(g)           That no rents or other deposits are
or will on the Closing Date be held by Seller except security deposits and
prepaid rents for the current month; and that there are no commissions or other
fees payable to any person, entity or agent on the rentals collected or to be
collected under the Leases except as disclosed on the Rent Roll.

 

(h)           To Seller’s knowledge, except as may
be disclosed in any environmental reports delivered by Seller to Purchaser, the
Property has not been used for the purpose of disposal of, refining,
generating, manufacturing, producing, storing, handling, treating,
transferring, releasing, processing or transporting any hazardous waste or
hazardous substance, as such terms are defined in the Resource Conservation and
Recovery Act of 1976, 42 USC 6901 et seq., as amended, the Compensation and
Liability Act of 1980, 42 USC 9601 et seq., or the Superfund Amendments and
Reauthorization Act, Public Law 99-499.

 

(i)            That there are no existing, pending
or, to Seller’s knowledge, threatened, public improvements in, about or outside
the Property which have resulted in or might result in the imposition of any
assessment, lien or charge against the Property, or special assessments or
similar charges against the Property except for liens for the special
assessments identified on Exhibit 12.1(i) hereto.

 

18

 

(j)            That except as set forth in this
Agreement, no person or other entity has any right or option to acquire, lease,
use or occupy all or any portion of the Property other than as provided for in
the Leases and in the materials listed in Exhibit 1.1(j).

 

(k)           That there is no material action,
suit or proceeding pending or, to the best of Seller’s actual knowledge,
threatened against Seller as owner of the Property or affecting the Property,
or arising out of the ownership, management or operation of the Property, this
Agreement or the transactions contemplated hereby.

 

(l)            That Seller is not a “foreign
person” as defined in Section 1445(f)(3) of the Internal Revenue Code (“Code”).

 

(m)          That Seller has no employees at the
Property and is not a party to any collective bargaining agreement.

 

(n)           That neither Seller nor any of its
affiliates as described in Sections 414(b), (c) and (m) of the IRS Code
(“Affiliates”) has incurred any liability which could subject Purchaser or any
asset to be acquired by Purchaser pursuant to this Agreement to any lien or
material liability under Section 302(f), 4062, 4063, 4064, 4201 or 4301(b) of
the Employee Retirement Income Security Act of 1974, as amended, or Section
401(a)(29) or 412 of the Code.

 

(o)           That, to Seller’s knowledge, the
Greenwich Mortgage is in good standing and without defect or default
thereunder, and is fully paid to the last applicable due date.

 

(p)           Seller’s “knowledge”, “receipt of by
Seller” and similar phrases as used in this Article VI mean and refer to the
actual knowledge of: (i) Tom Rumptz and (ii) Terri Springstead, and shall not
include the knowledge of any other person or entity.  Seller represents and warrants that the aforesaid persons
comprise those representatives of Seller best situated to have knowledge of the
subject matter of Seller’s warranties as set forth in this Article 12.

 

12.3.        Acknowledgment and disclaimer.  IT IS ACKNOWLEDGED THAT PURCHASER HAS HAD OR
SHALL HEREAFTER HAVE AMPLE OPPORTUNITY TO INVESTIGATE ALL ASPECTS OF THE
PROPERTY AND TO OBTAIN KNOWLEDGE OF ALL ATTRIBUTES CONCERNING SUCH
PROPERTY.  PURCHASER ACKNOWLEDGES AND
AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 12, THE PROPERTY
SHALL BE CONVEYED TO PURCHASER ON AN “AS-IS, WHERE-IS” BASIS WITHOUT ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, EITHER ORAL OR
WRITTEN, MADE BY SELLER OR ANY AGENT OR REPRESENTATIVE OF SELLER WITH RESPECT
TO THE PROPERTY, INCLUDING WITHOUT LIMITATION, WITH RESPECT TO THE PHYSICAL OR
STRUCTURAL CONDITION OF THE PROPERTY, THE PROPERTY’S COMPLIANCE WITH THE
AMERICANS WITH DISABILITIES ACT, OR WITH RESPECT TO THE EXISTENCE OR ABSENCE OF
TOXIC OR HAZARDOUS MATERIALS, SUBSTANCES OR WASTES, ASBESTOS OR ASBESTOS
CONTAINING MATERIALS, OR STORAGE TANKS IN, ON, UNDER, ABOUT OR AFFECTING THE
PROPERTY AND THAT SELLER HAS MADE AND HEREBY MAKES NO WARRANTY OR
REPRESENTATION WHATSOEVER AND HEREBY DISCLAIMS ANY IMPLIED WARRANTY REGARDING
THE FITNESS FOR A PARTICULAR PURPOSE, QUALITY OR MERCHANTABILITY OF THE LAND,
THE IMPROVEMENTS, THE PERSONAL PROPERTY OR

 

19

 

ANY PORTION THEREOF.  PURCHASER REPRESENTS AND WARRANTS TO SELLER
THAT (A) PURCHASER IS NOT IN A SIGNIFICANTLY DISPARATE BARGAINING POSITION; (B)
PURCHASER IS REPRESENTED BY LEGAL COUNSEL IN CONNECTION WITH THE SALE
CONTEMPLATED BY THIS AGREEMENT; (C) PURCHASER IS KNOWLEDGEABLE AND EXPERIENCED
IN THE PURCHASE, OWNERSHIP AND SALE OF COMMERCIAL REAL ESTATE AND IS FULLY ABLE
TO EVALUATE THE MERITS AND RISKS OF THIS TRANSACTION; AND (D) PURCHASER HAS
CONDUCTED (OR WILL HEREAFTER CONDUCT) OR HAD THE OPPORTUNITY TO CONDUCT
(OR  WILL HEREAFTER HAVE THE OPPORTUNITY
TO CONDUCT) ITS OWN INSPECTION AND INVESTIGATION OF THE PROPERTY.

 

12.4         Indemnity.  Subject to Section 17.3, Seller shall indemnify, defend and hold
Purchaser harmless from and against any and all material loss, cost, liability
or expense suffered by any of them as a result of a breach of any of the foregoing
warranties and all other representations and warranties set forth in this
Agreement.

 

12.5         Exception Matter.  As used herein, the term “Exception Matter”
shall refer to a matter disclosed to Purchaser in writing or discovered by
Purchaser before the Closing Date that would make a representation or warranty
of Seller contained in this Article 12 untrue or incorrect and of which Seller
had no knowledge prior to the date of execution of this Agreement, including,
without limitation, matters disclosed in writing to Purchaser by Seller.  Purchaser shall promptly notify Seller in
writing of any Exception Matter of which Purchaser obtains knowledge before the
Closing Date (other than any Exception Matter disclosed in writing to Purchaser
by Seller).  If Purchaser obtains
knowledge of any Exception Matter before the Closing Date but nonetheless
elects to proceed with the acquisition of the Property, Purchaser shall
consummate the acquisition of the Property subject to such Exception Matter,
and Seller shall have no liability with respect to such Exception Matter,
notwithstanding and contrary representation or warranty contained in this
Agreement.

 

ARTICLE 13

 

CONDITIONS PRECEDENT
AND TERMINATION

 

13.1         General Feasibility.  The obligation of Purchaser to close the
transaction contemplated hereby is subject to Purchaser’s review and approval,
at its sole cost and expense, on or before the Due Diligence Approval Date, of
the Due Diligence Materials, and of the results of the Inspections.  If, for any reason, Purchaser, in its sole
discretion, is not satisfied with any of the foregoing, then Purchaser may, at
its option, on or before the expiration of the Due Diligence Approval Date in
the manner hereinafter described, elect to terminate this Agreement, in which
event the Deposit and all net interest earned thereon shall promptly be
returned to Purchaser, this Agreement shall become null and void and neither
party shall have any further rights and obligations hereunder (subject,
however, to survival of Purchaser’s Indemnity and Purchaser’s Confidentiality
Obligations).  Purchaser’s failure to
give Seller written notice of termination on or before the Due Diligence
Approval Date shall be deemed to be Purchaser’s election to proceed with the
acquisition of the Property in accordance with this Agreement and any deposits
shall become nonrefundable, but remain applicable to the Purchase Price.  Absent such election or deemed election to
terminate this condition shall be deemed satisfied, and the parties shall
thereafter proceed to close the transaction contemplated by this Agreement as
otherwise provided herein.

 

20

 

13.2         Mortgage
Assumption.  The
obligation of Seller and Purchaser to close the transaction contemplated hereby
is subject to Seller’s and Purchaser’s receipt of consent from Greenwich
Capital to the assumption of the Greenwich Mortgage by Purchaser pursuant to
the terms of the Greenwich Mortgage loan documents existing as of the date of
execution hereof, and the release of the Seller from any and all liability in
connection therewith.  Seller and
Purchaser agree to use reasonable efforts to obtain such consent, provided that
Seller shall not be required to make any payment to  Greenwich Capital as a condition to obtaining such consent,
exclusive of the payment by Seller to Greenwich Capital of the  assumption fee provided for in the Greenwich
Mortgage and the other loan documents evidencing the loan secured by such
mortgage and ancillary closing costs and charges required to be paid or
reimbursed to Greenwich Capital and any recording costs.  In the event Seller and Purchaser are unable
to obtain such consent to be deposited in escrow with Escrowee prior to the
Closing Date, the Closing shall be extended for up to an additional sixty (60)
days.  If Seller and Purchaser remain
unable to obtain such consent to be deposited in escrow with Escrowee prior to
the extended Closing Date, this Agreement shall terminate, in which event the Deposit,
together with all net interest earned thereon, shall promptly be returned to
Purchaser, this Agreement shall become null and void, and neither party shall
have any further rights and obligations hereunder (subject, however to survival
of Purchaser’s Indemnity and Purchaser’s Confidentiality Obligations).

 

13.3         Seller’s Special Termination Right.  In the event that on or before the end of
the Due Diligence Approval Date, Horizon Group Properties, Inc., a Maryland
corporation, together with its subsidiaries (which include Seller and are collectively
referred to herein as the “Company”) receives an offer to purchase either (a)
substantially all of the properties owned by the Company (calculated on the
basis of the aggregate value of such properties or the basis of number of
individual properties to be purchased), or (b) substantially all of the net
equity value of the Company, Seller may provide Purchaser written notice to
terminate the Purchase Agreement, provided that Seller shall pay Purchaser a
termination fee of $250,000.00, as its sole obligation for compensating
Purchaser for any and all cost and expense which Purchaser incurs in performing
its evaluation of the Property.

 

13.4         Beal Bank, SSB Lien.    Seller has disclosed that the undeveloped
out lots and the expansion parcel referred to in Section 1.1(y) above are
encumbered by a mortgage lien in favor of Beal Bank, SSB (the “Beal Bank
Lien”).  Seller is required by this
Agreement to cause the Property to be conveyed to Purchaser free and clear of the
Beal Bank Lien.  Notwithstanding the aforesaid,
if during the fifteen (15) day period from and after the date of execution of
this Agreement Seller determines in good faith that it would not be possible on
a commercially reasonable basis to obtain the release of such lien, Seller
shall have the option to terminate this Agreement without further liability or
obligation to Purchaser, in which case the Deposit shall be returned to
Purchaser.

 

ARTICLE 14

 

CLOSING

 

14.1         Time and Place.  The transaction contemplated hereby shall
close (i.e., meaning that all deliveries described in Sections 14.2, 14.3 and
14.4 must be properly delivered or deposited by such date), on the Closing Date
at the offices of the Escrowee and/or its affiliate branch in Muskegon,
Michigan through an acceptable escrow arrangement or on such other date, time
and place as the parties may mutually agree.

 

21

 

14.2         Seller’s Deliveries.  On or before the Closing Date, Seller shall
deliver or cause to be delivered to Purchaser or to Escrowee the following
Closing documents and other items, each of which shall be in form and substance
reasonably acceptable to counsel for Purchaser:

 

(a)           the Deed;

 

(b)           (1) Seller’s assignment of the
Contracts, (2) Seller’s assignment of the Leases, (3) Seller’s assignment of
the Licenses, and (4) Seller’s assignment of the Intangible Personal Property,
as provided in Section 2.l(b), each of which assignment documents referenced in
this subsection (b) shall contain Seller’s indemnification of Purchaser from
and against all obligations and liabilities of Seller thereunder arising or
accruing prior to the Closing Date (excepting therefrom any obligations for
which Purchaser receives a proration credit at Closing, and any obligations for
which Purchaser expressly assumes liability pursuant to the terms hereof), or
any obligations relating to any tenant to the extent described in Section
6.2(d) above, subject to the provisions of Section 17.3 below.

 

(c)           Seller’s warranty bill of sale as
provided in Section 2.l(c);

 

(d)           Originals (to the extent in Seller’s
possession) or copies of all Contracts, Leases and Licenses relative to the
Real Property or Personal Property (or any portion thereof);

 

(e)           Letters to tenants under the Leases
(in a form reasonably acceptable to Purchaser) advising that the Land and
Building has been sold to Purchaser (or as Purchaser may otherwise designate),
directing payment of rental in accordance with the directions of Purchaser, and
directing tenants to deliver to Purchaser within a reasonable period after the
Closing Date, endorsements of any insurance policies required under the
tenant’s Lease, deleting the interests of Seller with regard to occurrences
thereafter arising and adding the interest of Purchaser as landlord;

 

(f)            All keys held away from the Property
by Seller to the Building;

 

(g)           The Title Policy (or an unconditional
commitment from the Title Insurer to issue same);

 

(h)           Any required state, county and
municipal transfer declarations;

 

(i)            (1) an executed Affidavit in the form
attached hereto as Exhibit 14.2(i); or (2) a qualifying statement from the U.S.
Treasury Department that the transaction is exempt from the withholding tax
requirement imposed by Section 1445A of the Internal Revenue Code and the rules
and regulations promulgated thereunder (“Section 1445A”).  In the event Seller fails to deliver either
the Affidavit or the qualifying statement as aforesaid, Seller agrees that
Purchaser may, at Closing, deduct and withhold from the proceeds that are due
to Seller the amount necessary to comply with the withholding tax requirement
imposed by Section 1445A.  Purchaser
shall deposit the amount so withheld in escrow with the Escrowee pursuant to
terms and conditions acceptable to Seller, Purchaser and the Escrowee, but in
any event, complying with Section 1445A; and

 

(j)            Such other documents, instruments,
certifications and confirmations as may be reasonably required and designated
by the Title Insurer to fully effect and consummate the transactions
contemplated hereby.

 

22

 

14.3         Purchaser’s Deliveries.  On or before the Closing Date, Purchaser
shall deliver or cause to be delivered to Seller or to Escrowee the following
Closing documents and other items, each of which shall be in form and substance
reasonably acceptable to counsel for Seller:

 

(a)           The balance of the Purchase Price
with a credit for the Deposit, the Security Deposit, the assumption of the
Greenwich Mortgage and otherwise as adjusted;

 

(b)           Any required assumption documents in
connection with the Greenwich Mortgage;

 

(c)           Any required state, county and
municipal transfer declarations;

 

(d)           Purchaser’s acceptance of the
assignments described in Section 14.2(b) above and Purchaser’s assumption, in
favor of Seller, of all obligations and liabilities of Seller arising from and
after the Closing Date pursuant to or in connection with the Contracts, Leases,
Licenses and Intangible Personal Property and Purchaser’s indemnification of
Seller and the other Indemnified Parties from and against any such obligations
and liabilities so assumed and arising from and after the Closing Date and all
costs, expenses and claims arising therefrom; and

 

(e)           Such other documents, instruments,
certifications and confirmations as may be reasonably required and designated
by the Title Insurer to fully effect and consummate the transactions
contemplated hereby.

 

14.4         Concurrent Deliveries.  Seller and Purchaser shall jointly deposit
in the Escrow or deliver to each other at or before Closing an agreed closing
and proration statement duly executed by the respective parties.

 

14.5         Concurrent Transactions.  All documents or other deliveries required
to be made by Purchaser or Seller at Closing, and all transactions required to
be consummated concurrently with Closing, shall be deemed to have been
delivered and to have been consummated simultaneously with all other
transactions and all other deliveries, and no transaction shall be deemed to
have been consummated, until all deliveries required by Purchaser and Seller
shall have been made, and all concurrent or other transactions shall have been
consummated.

 

14.6         Concurrent Disbursement of Sale Proceeds.  It is acknowledged and agreed that  the
escrow Closing required hereby shall provide for the concurrent delivery of the
documents of title, transfer of interests, delivery of the Title Policy (or the
Title Insurer’s unconditional commitment to issue the same), payment of the
Purchase Price, and disbursement of the net sale proceeds to or at the
direction of Seller. Without limitation of the foregoing, the Escrowee shall be
directed that the net sale proceeds shall be disbursed to or at the direction
of Seller promptly following the recordation of the Deed (or earlier, if the
Title Insurer is then unconditionally committed to issue the Title Policy and
if the Escrowee so agrees).  Seller and
Purchaser shall each pay 50% of the charges of the Title Insurer for the
Closing described in this Section 14.6.

 

23

 

ARTICLE 15

 

DEFAULT

 

15.1         Seller’s Default; Purchaser’s Remedies.  If Seller is in material default hereunder
and fails to cure such default within three (3) business days after Purchaser
delivers written notice of such default to Seller (herein referred to as a
“Seller default”), and if such Seller default occurs on or before Closing and
Purchaser has notice thereof on or before Closing, then Purchaser shall have
the option, as its sole recourse, to either (i) bring an action, within thirty
(30) days following such Seller default, for the specific performance of this
Agreement (ii) terminate this Agreement, whereupon Purchaser shall receive a
return of the Deposit, together with net interest thereon, and this Agreement
shall thereafter be deemed null and void and neither party shall have any
further rights or obligations hereunder (subject, however, to survival of
Purchaser’s Indemnity and Purchaser’s Confidentiality Obligations), or (iii)
sue for and receive damages, not to exceed $250,000.00.  Purchaser agrees that it will deliver
written notice of a Seller default to Seller within a reasonable time after
Purchaser obtains actual knowledge of such Seller default. Nothing herein shall
be deemed to imply that Seller’s warranty and indemnification obligations under
Section 12 or Seller’s indemnification obligations described in Section 14.2(b)
above shall be subject to any of the limitations on remedies contained in this
Section 15.1.

 

15.2         Purchaser’s Default; Seller’s Remedies.  If Purchaser is in material default
hereunder and fails to cure such default within three (3) business days after
Seller delivers written notice to Purchaser (herein referred to as a “Purchaser
default”), and if such Purchaser default occurs on or before Closing and Seller
has notice thereof on or before Closing, then Seller shall have the right to
terminate this Agreement and receive the Deposit, together with interest
thereon, as Seller’s sole recourse hereunder, and the Agreement shall
thereafter be deemed null and void and neither party shall have any further
rights or obligations hereunder (subject, however, to survival of Purchaser’s
Indemnity and Purchaser’s Confidentiality Obligations).  Notwithstanding the foregoing, Purchaser’s
Indemnity and Purchaser’s Confidentiality Obligations shall not be subject to
any of the limitations described in this Section 15.2.  Seller agrees that it will deliver written
notice of a Purchaser default to Purchaser within a reasonable time after
Seller obtains actual knowledge of such Purchaser default. Nothing herein shall
be deemed to imply that Purchaser’s indemnification obligations described in
Section 11 or Section 14.3(d) above shall be subject to any of the limitations
on remedies contained in this Section 15.2.

 

SELLER AND
PURCHASER HAVE ACKNOWLEDGED THAT THEY HAVE READ AND SPECIFICALLY NEGOTIATED THE
FOREGOING PROVISIONS AND LIMITATIONS ON REMEDIES AFTER CONSULTATION WITH LEGAL
COUNSEL OF THEIR RESPECTIVE CHOICE.

 

ARTICLE 16

 

NOTICES

 

16.1         Notices.  Any notice, demand or other communication which any party may
desire or may be required to give to any other party shall be in writing and
shall be deemed given (i) if and when personally delivered, (ii) on the first
(1st) business day after being sent by a nationally recognized overnight
courier addressed to a party at its address set forth below, (iii) on the
second (2nd) business day after being deposited in United States registered or
certified mail, postage prepaid or (iv) upon delivery if by facsimile
transmission (with a copy along with conformation acknowledgement sent that
same day by a nationally recognized overnight courier), addressed to a party at
its address set forth below, or to such other address as the party to receive
such notice may have designated to all other parties by notice in

 

24

 

accordance herewith:

 

	
  If to
  Seller, to:

  	
   

  	
  c/o Horizon
  Group Properties, Inc.

  
	
   

  	
   

  	
  5000 Hakes
  Drive

  
	
   

  	
   

  	
  Muskegon,
  Michigan 49441

  
	
   

  	
   

  	
  Attention:
  Thomas Rumptz

  
	
   

  	
   

  	
  Fax:  231-798-5100

  
	
   

  	
   

  	
   

  
	
  With copies
  to:

  	
   

  	
  Schiff Hardin
  & Waite

  
	
   

  	
   

  	
  6600 Sears
  Tower

  
	
   

  	
   

  	
  Chicago,
  IL  60606

  
	
   

  	
   

  	
  Attention:
  Steven D. Friedland

  
	
   

  	
   

  	
  Fax:  312-258-5700

  
	
   

  	
   

  	
   

  
	
  If to
  Purchaser, to:

  	
   

  	
  Ramco-Gershenson
  Properties Trust

  
	
   

  	
   

  	
  27600
  Northwestern Highway, Suite 200

  
	
   

  	
   

  	
  Southfield,
  MI  48034

  
	
   

  	
   

  	
  Attention:  Catherine Clark

  
	
   

  	
   

  	
  Fax:  248-386-1570

  
	
   

  	
   

  	
   

  
	
  With copies
  to:

  	
   

  	
  Honigman
  Miller Schwartz and Cohn LLP

  
	
   

  	
   

  	
  2290 First National Building

  
	
   

  	
   

  	
  660 Woodward Avenue

  
	
   

  	
   

  	
  Detroit, Michigan 48226-3583

  
	
   

  	
   

  	
  Attention:  Mitchell R. Meisner

  
	
   

  	
   

  	
  Fax:  313-465-7479

  

 

ARTICLE 17

 

GENERAL

 

17.1         Entire Agreement, Amendments and Waivers.  This Agreement contains the entire agreement
and understanding of the parties in respect to the subject matter hereof, and
the same may not be amended, modified or discharged nor may any of its terms be
waived, except by an instrument in writing signed by the party to be bound
thereby.  The waiver of any term or
provision of this Agreement shall not constitute a waiver of any other term or
provision of this Agreement, nor shall the right to require any enforcement of
any term or provision of this Agreement be permanently waived, if a continuing
breach of any such term or provision arises.

 

17.2         Further Assurances.  The parties each agree to do, execute,
acknowledge and deliver all such further acts, instruments and assurances and
to take all such further action before or after the Closing as shall be
reasonably necessary to perform this Agreement and consummate and effect the
transactions contemplated hereby.

 

17.3         Survival and Benefit.  No representations, warranties, covenants or
indemnities of the parties

 

25

 

contained herein or in any
document delivered by Seller at Closing shall be merged into the Deed, but
shall survive Closing for a period of one (1) year, provided that any claim
asserted by either party against the other with respect thereto shall be deemed
waived unless (i) a written notice is delivered to the other party not later
than one (1) year after the Closing Date, and (ii) a lawsuit is commenced not
later than two (2) months after the delivery of such written notice.  This Agreement shall inure to the benefit of
and be binding upon the respective successors and permitted assigns of the
parties.  Notwithstanding anything
herein to the contrary, the aggregate liability of each party hereunder shall
be limited to $500,000.00.

 

17.4         Interpretation.

 

(a)           The headings and captions herein are
inserted for convenient reference only, and the same shall not limit or
construe the paragraphs or sections to which they apply or otherwise affect the
interpretation thereof.

 

(b)           The terms “hereby”, “hereof”,
“hereto”, “herein”, “hereunder” and any similar terms shall refer to this
Agreement, and the term “hereafter” shall mean after, and the term “heretofore”
shall mean before, the date of this Agreement.

 

(c)           Words of the masculine, feminine or
neuter gender shall mean and include the correlative words of other genders,
and words importing the singular number shall mean and include the plural
number and vice versa.

 

(d)           Words importing persons shall include
firms, associations, partnerships (including limited partnerships), limited
liability companies, trusts, corporations and other legal entities, including
public bodies, as well as natural persons.

 

(e)           The terms “include”, “including” and
similar terms shall be construed as if followed by the phrase “without being
limited to.”

 

(f)            This Agreement and any document or
instrument executed pursuant hereto may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

(g)           Whenever under the terms of this
Agreement the time for performance of a covenant or condition falls upon a
Saturday, Sunday or holiday, such time for performance shall be extended to the
next business day.  Otherwise, all
references herein to “days” shall mean calendar days (unless specifically
provided to be “business” days).

 

(h)           This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Michigan.

 

(i)            Time is of the essence of this
Agreement.

 

(j)            If any provision hereof or the
application of any such provision to any particular person or circumstance is
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect the validity or enforceability of any other provision hereof or the
application of such provision to different person(s) or circumstance(s), as the
case may be.

 

26

 

17.5         Consents and Approvals.  Whenever consents or approvals are required
under the terms of this Agreement, said consents or approvals shall be in
writing.

 

17.6         Confidentiality.  Any and all information regarding the
Property or regarding Seller which is provided to Purchaser by Seller or by its
agents, or any other information obtained by Purchaser regarding the subject
Property or the Seller in the course of Purchaser’s Inspections or other due
diligence investigations hereunder, in each case to the extent not generally
available to the public (herein, the “Confidential Materials”), shall be
maintained by Purchaser and each of Purchaser’s Representatives (as defined in
Section 10.l(a) above) in strict confidence, to be used solely in connection
with evaluating the transaction contemplated hereby, and shall not be disclosed
to third parties without the prior written consent of Seller. Purchaser
acknowledges and agrees that any breach or threatened breach of this
confidentiality provision would cause irreparable harm to Seller which may not
be adequately remedied by monetary damages and that, as a result, Seller may,
in such event, in addition to any other rights or remedies available hereunder
or at law or in equity, seek an injunction enjoining any disclosure of the
Confidential Materials.  This obligation
of confidentiality shall not apply to disclosures compelled by law, any order
of a court of competent jurisdiction or by a lawful, proper subpoena, in which
event Purchaser shall immediately notify Seller of the circumstances purporting
to require such disclosure and shall refrain from such disclosure for the
maximum period of time allowed by law so that Seller may take such actions as
it may deem appropriate to protect the Confidential Materials being sought.  Purchaser shall make all parties having
access to the Confidential Materials aware of their obligation of
confidentiality described in this Section 17.6 and shall bind such parties to
similar obligations of confidentiality. 
The terms of this Section 17.6 shall expressly survive the early
termination of this Agreement for the longest period provided by law.  If this Agreement is terminated for any
reason prior to the Closing of the transaction contemplated hereby, then, upon
the request of Seller, Purchaser shall promptly return to Seller all
Confidential Materials (including all copies thereof) which are in the
possession of Purchaser or any of Purchaser’s Representatives. Purchaser’s
obligations under this Section 17.6 are referred to herein as “Purchaser’s
Confidentiality Obligations”.  Seller
makes no representations or warranties regarding the accuracy or completeness
of any of the Confidential Materials. 
Nothing herein shall, however, limit Purchaser’s ability to share such
Confidential Materials with any lender contemplating financing of Purchaser’s
acquisition or any investor contemplating obtaining an interest in or to the
Property or in and to the company taking an interest in the Property, including
such parties’ advisers and representatives.

 

17.7         Cooperation with a Tax Deferred Exchange.  If Seller desires to effect a tax-deferred
exchange of the Property for other real property of a like kind pursuant to
Section 1031 of the Internal Revenue Code of 1986, as amended, Purchaser hereby
agrees, at no expense or additional risk to Purchaser, to reasonably cooperate
with Seller in Seller’s desire to effect said tax-deferred exchange.  No such exchange shall affect the Closing
Date hereunder.  Seller shall indemnify,
defend and hold Purchaser harmless from and against any and all losses,
damages, liability, costs and expenses imposed or asserted against Purchaser in
connection with any such tax-deferred exchange unless Purchaser defaults under
this Agreement or any other agreement executed and delivered by Purchaser in
connection with any such exchange.

 

17.8         Assignment.  Except as provided in Section 17.7 and this Section 17.8, neither
party shall have the right to assign this Agreement, or any interest herein, to
any other person or entity, without first having obtained the prior written
consent of the non-assigning party (which consent may be withheld at such
non-assigning party’s sole and exclusive discretion).  Further, in the event of any other assignment of this Agreement
or any interest herein which has been consented to by the non-assigning party

 

27

 

hereunder, the assigning party
shall remain responsible for all of its original obligations and liabilities
set forth in this Agreement, and such assignment shall not be deemed to release
the assigning party, in any respect, from any such obligations and
liabilities.  The foregoing
notwithstanding, Purchaser may, without the consent of Seller, assign all of its
rights and obligations under this Agreement to any affiliated entity, including
any entity established by Purchaser for purposes of taking title to the
Property.

 

17.9         Alternative Structure of Sale.  Notwithstanding anything to the contrary
herein, Seller shall have the right to elect to assign to Purchaser all of the
membership interests in Lakeshore Marketplace, LLC (“Lakeshore”) in lieu of a
conveyance of that portion of the Property owned by Lakeshore (the “Lakeshore
Property”).  In the event Seller wishes
to elect to assign such membership interests, Seller shall make its election in
writing to Purchaser not later than April 25, 2003, and, at Closing, Seller
shall assign all of the membership interests in Lakeshore to Purchaser or its
designee(s) in lieu of Seller’s Deed and bill of sale for the Lakeshore
Property.  Notwithstanding the
aforesaid, Seller may only elect and carry out such assignment in lieu of a
deed of the Lakeshore Property if Purchaser’s interests are properly protected
in a manner consistent with the following principles:  (a) 
Purchaser’s tax position shall not be negatively affected by the
alternative structure, nor shall the costs to Purchaser of completing this
transaction be materially greater than by Closing as originally contemplated ;
(b) at least one month prior to the Closing, Seller shall transfer one hundred
percent (100%) of its right, title and interest in and to the Lakeshore
Property to a new Delaware limited liability company (for which partnership tax
treatment has been elected), in which Seller shall hold the membership interest
(“NewLLC”) (all references herein to an assignment of the membership interests
in Lakeshore to Purchaser shall, accordingly, refer to an assignment of the
membership interests in NewLLC); (c) Seller shall work with Greenwich Capital
to assure that such interim restructuring shall not cause a default under the
current loan documents or materially hinder or delay assumption of the
Greenwich Mortgage; (d) Purchaser shall be indemnified and held harmless for a
period of no less than five (5) years following Closing with respect to matters
that reasonably would not have resulted in liability or economic detriment to
Purchaser or its successors or assigns had Purchaser acquired the Lakeshore
Property directly rather than pursuant to an assignment of membership interest;
such areas of protection shall include employee/payroll, pension and related
matters, tax liabilities (including, without limitation, transfer tax), claims
by investors, partners or limited liability company members at any tier of
ownership in Lakeshore or any affiliate, obligations under any Leases or
occupancy agreements prior to Closing, and obligations under any contracts
affecting the Lakeshore Property prior to Closing, except for specific
liabilities, if any, allocated to Purchaser by a separate provision of this
Agreement; (e) Seller shall provided customary and appropriate representations
and warranties tailored to such transaction; and (f) all such obligations of
Seller shall be guaranteed by a surviving principal of Seller with substantial
net worth.  All such representations,
warranties, indemnities and other matters shall be documented in an agreement
to be signed at Closing, and when agreement is reached on specific terms to
satisfy the above conditions, this Agreement shall be amended to incorporate
the more specific language of such agreement.

 

17.10       Attorneys’ Fees.  In any action or proceeding between Seller
and Purchaser regarding enforcement of this Agreement or any other dispute
between the parties arising hereunder, the prevailing party shall be entitled
to recover from the other party the prevailing party’s reasonable costs and
expenses in such action or proceeding, including reasonable attorneys’ fees,
subject, however to the limitation of liability provided for in Section 6.2
above.  The provisions of this Section
17.10 shall survive the Closing of the transaction contemplated by this
Agreement.

 

[Signature Page to
Follow]

 

28

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date and year first
above written.

 

	
  SELLER:

  	
  PURCHASER:

  	
   

  
	
   

  
	
  LAKESHORE MARKETPLACE, LLC

  	
  RAMCO-GERSHENSON PROPERTIES

  
	
  a Delaware
  limited liability company

  	
  LP, a Delaware
  limited partnership

  
	
   

  
	
  By:

  	
  Lakeshore Marketplace Finance

  	
  By:

  	
  Ramco-Gershenson Properties Trust,

  
	
   

  	
  Company, Inc.

  	
   

  	
   

  
	
  a Delaware
  Corporation

  	
  a Maryland
  real estate investment trust,

  
	
  Its:
  managing member

  	
   

  	
  Its:  general partner

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  Dennis E.
  Gershenson

  
	
  Its:

  	
   

  	
   

  	
  Its:

  	
  CEO

  
	
   

  
	
   

  
	
  MONROE OUTLET CENTER, LLC

  
	
  a Michigan
  limited liability company

  
	
   

  
	
  By:

  	
  Horizon Group Properties L. P.,

  
	
   

  	
  a Delaware
  limited partnership,

  
	
  Its:

  	
  managing
  member

  
	
   

  
	
  By:

  	
  Horizon Group Properties, Inc.,

  
	
   

  	
  a Maryland
  corporation,

  
	
  Its:

  	
  general
  partner

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
												

 

29

 

LIST OF EXHIBITS

 

	
  EXHIBIT
  1.1(e)

  	
   

  	
  -

  	
   

  	
  Contracts

  
	
  EXHIBIT
  1.1(j)

  	
   

  	
  -

  	
   

  	
  Due
  Diligence Materials

  
	
  EXHIBIT
  1.1(k)

  	
   

  	
  -

  	
   

  	
  Letter of
  Intent

  
	
  EXHIBIT
  1.1(q)

  	
   

  	
  -

  	
   

  	
  Legal
  Description of the Land

  
	
  EXHIBIT
  1.1(y)

  	
   

  	
  -

  	
   

  	
  Depiction of
  the Property

  
	
  EXHIBIT
  1.1(ff)

  	
   

  	
  -

  	
   

  	
  Tangible
  Personal Property

  
	
  EXHIBIT
  10.1(f)

  	
   

  	
  -

  	
   

  	
  Rent Roll

  
	
  EXHIBIT
  10.1(h)

  	
   

  	
  -

  	
   

  	
  Form of
  Estoppel Letter

  
	
  EXHIBIT
  12.1(i)

  	
   

  	
  -

  	
   

  	
  Special
  Assessments

  
	
  EXHIBIT
  14.2(i)

  	
   

  	
  -

  	
   

  	
  Non-Foreign
  Affidavit

  

 

30

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