Document:

Exhibit 10.1

 

VALLEY  RANCH  BUSINESS  PARK  LEASE

 

ARTICLE 1.  PARTIES.  This Lease made this 4th day of February, 2014, by and between McMullen SPE, LLC, the Lessor (hereinafter designated as the “Landlord”), and Esperion Therapeutics, Inc., the Lessee (hereinafter designated as the “Tenant”).

 

W I T N E S S E T H :

 

ARTICLE 2.  DESCRIPTION OF PREMISES.  Landlord, for and in consideration of the rents to be paid and the covenants and agreements to be performed by Tenant, does hereby lease to Tenant premises (“Leased Premises” or “Premises”) situated in the Township of Pittsfield, Washtenaw County, Michigan, more particularly described as:

 

7,941 rentable square feet of space located in the Valley Ranch Business Park and situated at 3891 Ranchero Drive, Suite 150, Ann Arbor, Michigan, 48108 (hereinafter together with all adjacent land and real property “Building”), said Leased Premises being more particularly described as the premises shown in Exhibit “A-1” attached hereto and incorporated herein by reference and specifically made a part hereof, together with the right to use the Common Areas and facilities in common with Landlord and other tenants of the Building.  Throughout the Term of the Lease, Tenant shall be permitted to use and access the Common Areas.  As used herein, the term “Common Areas,” shall mean and include (but is not limited to): all parking areas; driveways, roadways and access roads; truckways; pedestrian sidewalks; landscaped and/or planted areas, planter boxes, and retaining walls, public restrooms, if any, exterior lighting facilities and all other areas and improvements which may be provided by Landlord for the general convenience of, or use in common by the tenants or occupants of the Building and their employees, customers and invitees.

 

ARTICLE 3.  TERM.  The term of this Lease shall be for a period of sixty three (63) months, (“Term”) commencing on the “Commencement Date” which shall be the later of: (a) the date that Landlord shall tender the Leased Premises to the Tenant with the Delivery Conditions satisfied, following ten (10) business days prior notice of such date; or (b) April 1, 2014.  The term of this Lease shall end sixty three (63) months after the Commencement Date.  If the Commencement Date is other than the first day of a month, then the term of Lease shall be extended by the number of days remaining in the month that the lease is commenced so that the termination date of the lease is the last day of a month.  As used herein, the “Delivery Conditions” shall mean that the Leased Premises are: (a) in broom clean condition and free of all debris, (b) in compliance with all laws, ordinances, administrative rules and regulations, building codes, fire codes and insurance underwriter requirements (collectively, “Laws”), (c) in good operating and physical condition and otherwise ready for Tenant to commence use of the Leased Premises, and (d) with the Landlord’s Work Substantially Completed (as defined in the attached Work Letter).  Landlord acknowledges that timely satisfaction of the Delivery Conditions is important to Tenant’s business operations and that as a material inducement for Tenant entering into this Lease the Landlord covenants to timely complete the Delivery Conditions.  If the Landlord’s failure to satisfy the Delivery Conditions continues for more than sixty (60) days after April 1, 2014 and such failure is not caused by action or inaction of Tenant, then in addition to Tenant’s other rights and remedies, Tenant shall receive one (1) day of free rent for each day which Landlord fails to satisfy the Delivery Conditions past May 31, 2014.

 

 

Within thirty days after written request by either party, the parties shall execute a Commencement Date Agreement setting forth the Commencement and Expiration Dates of Lease and such other information as either Landlord or the mortgagee of the Building shall reasonably request.

 

ARTICLE 4.  RENT.  Tenant shall and hereby agrees to pay Landlord as base rent for the Leased Premises, the following:

 

	
Months of
   Lease Term
    	
 
    	
Monthly
   Installment of Rent
    	
 
    	
Annual Rental Rate per
    Rentable Square Foot
    
	
Months 1-3:
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
0.00
    
	
Months 4-15:
    	
 
    	
$
    	
7,941.00
    	
 
    	
$
    	
12.00
    
	
Months 16-27:
    	
 
    	
$
    	
8,179.23
    	
 
    	
$
    	
12.36
    
	
Months 28-39:
    	
 
    	
$
    	
8,424.61
    	
 
    	
$
    	
12.73
    
	
Months 40-51:
    	
 
    	
$
    	
8,677.35
    	
 
    	
$
    	
13.11
    
	
Months 52-63:
    	
 
    	
$
    	
8,937.67
    	
 
    	
$
    	
13.51
    

 

Tenant shall pay Operating Expenses, Taxes and Insurance as described in Article 5 of Lease during the full term of Lease.

 

Except as otherwise provided in this Lease to the contrary, rent is payable without any prior demand therefore and without any reduction or setoff whatsoever in lawful money of the United States, on the first (1st) day of each and every calendar month during the term of this Lease, at the office of the Landlord, or at such other place as Landlord may designate in writing from time to time; provided, however, that if the Lease shall commence on a day other than the first (1st) day of a calendar month, then the rental for such month shall be prorated daily based on a thirty (30) day calendar month.

 

ARTICLE 5.  OPERATING EXPENSES, TAXES AND INSURANCE

 

(a)  Tenant shall pay as additional rent, in the manner hereinafter provided, Tenant’s proportionate share of all Operating Expenses, Taxes, and Insurance (collectively, the “Additional Rent”).

 

(b)  As used in this Article:

 

1.  “Proportionate Share” means a fraction, the numerator of which shall be the number of leaseable square feet of floor area in the Leased Premises, and the denominator of which shall be the net leaseable floor area of the Building, as defined in Section 39 of this Lease.  The parties hereby agree that the Proportionate Share is 26.8%.

 

2.  “Operating Expenses” means, except as otherwise excluded herein, all expenses incurred by the Landlord for the operation and maintenance of the Building and surrounding property of the Landlord, excluding those charges expressly made payable by the Tenant under this Lease, and real estate and personal property taxes and assessments and insurance defined separately hereunder. Such expenses shall include, by way of illustration and not limitation, utilities and lighting (if separately metered to the Leased Premises, then with respect to fuel or electric only as the same pertains to Common Areas); common area maintenance; parking lot maintenance, repair and lighting; snow and trash removal; maintenance and repair of all private drives, landscaping, walkways, easements and facilities located therein, associated with Building; maintenance and repair of all roofing, plumbing and electrical systems; supplies, reasonable wages and benefits of employees used in the management, operating or maintenance of the Building and governmental charges (other than deductions from

 

 

wages) with respect thereto; water and sewer charges (except to the extent separately metered to Tenants).  Notwithstanding the foregoing, any management fee charged included in Operating Expenses shall not exceed 3% of total base rent for the Building on an annual basis.  If and to the extent any improvement or replacement completed by Landlord constitutes a capital expenditure under GAAP and is permitted to be included in Operating Expenses, only an amortized portion of such expense shall be included in Operating Expenses during any year or term with such amortized amount being determined based on the reasonable useful life of such item, as determined in accordance with GAAP.  For utility meters used in common with other tenants and/or common space, Landlord shall allocate a pro rata share of such meters to Tenant based on a reasonable estimation of Tenant usage of meters and pass-through only that pro-rata share to Tenant.

 

3.  “Taxes” shall mean real estate property taxes, personal property taxes and assessments attributable to Building.

 

4. “Insurance” shall mean all premium payments made for all insurance coverage not expressly made payable by the Tenant under this Lease, which coverage was acquired by the Landlord in the reasonable exercise of Landlord’s business judgment or required by the Building’s mortgagee(s), and shall include, without limitation, casualty, public liability and property damage, worker’s compensation and rental insurance.

 

(c)  Operating Expenses, Taxes and Insurance and the cost to Landlord of providing repair and maintenance to Leased Premises are to be estimated and paid on the first (1st) day of each month during the lease term in the same manner and place as minimum rent.  If the Commencement Date occurs on a day other than the first (1st) day of a calendar month, then the amount for such month shall be prorated based on a thirty (30) day calendar month and be paid on the Commencement Date.  The estimated amount paid shall be periodically adjusted up or down based on Landlord’s reasonable estimation of future expenses.  Actual expenses incurred by Landlord for Operating Expenses, Taxes and Insurance shall be reconciled by Landlord not less than annually with Landlord submitting such reconciliation to Tenant within ninety (90) days after the end of each calendar year, along with any supporting documentation which Tenant shall reasonably request.  Should the reconciliation show that the actual amount of Tenant’s Proportionate Share of Operating Expenses, Taxes and Insurance were greater than the amount paid by Tenant, then Tenant shall reimburse Landlord for the difference.  If Tenant’s Proportionate Share of Operating Expenses, Taxes and Insurance were less than the amount paid by Tenant, then Landlord shall promptly reimburse Tenant within ten (10) days.  Tenant’s payment for Taxes shall be calculated as one-twelfth of its portion of the annual real estate bill attributable to Building and payment for Insurance shall be calculated as one-twelfth of its portion of the annual premium cost for the required coverages.  In the event Tenant disputes Landlord’s determination of Operating Expenses, Taxes or Insurance, Tenant, an employee of Tenant or an accountant shall have the right after reasonable notice and at reasonable times to inspect Landlord’s accounting records at Landlord’s management office.  Both Tenant’s and Landlord’s obligation hereunder shall survive the expiration or termination of lease.

 

ARTICLE 6.  UTILITIES.

 

(a)  The Tenant shall pay, Tenant’s Proportionate Share of the cost of the water, sewer and Common Area electricity charges for the Building.  Tenant shall pay said share as additional rent in the manner provided in Article 5 hereof.  Landlord has or will install separate meters for electricity and natural gas service to the Leased Premises.  Tenant shall pay directly to the utility provider for the electricity and natural gas used by Tenant

 

 

in the Leased Premises. For natural gas or electric meters used in common with other tenants and/or common space Landlord shall allocate a pro rata share of such meter to Tenant based on a reasonable estimation of usage and pass-through only that pro rata share to Tenant.  If, and to the extent the Leased Premises are separately metered with the utility service provided in Tenant’s name, Tenant shall not cause or allow the termination of any natural gas or electrical service to the Leased Premises during the term hereof.

 

(b)  Electricity shall be provided to the Tenant for lighting and business office equipment, including personal computers, computer servers, copiers and refrigerator.

 

(c)  Tenant shall not use electric current which exceeds the capacity of the electric system of the Building or Leased Premises, notwithstanding any consent by the Landlord to the use of any electrical devices on the Leased Premises or elsewhere in the Building by Tenant.  Any addition to the electrical system of the Building made necessary by the electric consumption on the Leased Premises or elsewhere in the Building by the Tenant shall be made by the Landlord at Tenant’s expense.

 

(d)  Landlord reserves the right, without liability to Tenant or affecting Lease, to reasonably interrupt without undue discomfort heating, air conditioning, electrical and plumbing service to Leased Premises for repairs, replacements, alteration, during emergencies, and when prevented from supplying the same by strike, shortage or governmental regulation.

 

ARTICLE 7.  USE OF THE LEASED PREMISES.

 

(a)  The Tenant shall use the Leased Premises only as an office for general business purposes, including any ancillary or related uses.

 

(b)  Subject to Landlord’s representation and warranty that the Leased Premises are in full compliance with all Laws as of the Commencement Date, Tenant shall, at its own expense, comply with all Laws affecting the Leased Premises hereby leased and the cleanliness, safety, occupation and use of same.

 

(c)  So long as Landlord’s insurance policy contains commercially reasonable rules and restrictions, the Tenant shall not do or permit anything to be done on the Leased Premises or keep anything therein which would invalidate the Landlord’s casualty or liability insurance on the Building, and the Tenant shall pay the Landlord as additional rent, upon written notice, the amount of any increase in the Landlord’s insurance premiums caused by things done on or kept in the Leased Premises by Tenant.

 

(d)  Landlord shall cause the Building and Leased Premises, at its sole cost and expense and without reimbursement as part of the Operating Expenses, to comply with all future changes in existing Laws and Laws which are enacted after the date of this Lease.

 

(e)  Landlord, at its sole cost, rather than Tenant shall be responsible for the environmental condition of the Building and Leased Premises existing as of the Commencement Date.  Landlord hereby agrees to defend, indemnify and save harmless Tenant from all claims, costs, damages, demands, expenses, fines, judgments, liabilities and losses (including reasonable attorneys’ fees) which arise from or in connection with hazardous materials (including asbestos) located on the Leased Premises or Building as of the Commencement Date or any violation of environmental laws occurring prior to the Commencement Date.

 

 

(f)  Landlord shall provide the following services to the Leased Premises at all times unless otherwise specified: (i) ventilation, air conditioning and heating for normal office purposes, in reasonable amounts and at temperatures sufficient for Tenant’s use and occupancy but at least sufficient to maintain the temperature between 69 and 75 degrees Fahrenheit; (ii) electric for lighting and operation of Tenant’s equipment and trade fixtures in an amount not less than 5 watts per square foot (exclusive of lighting); (iii) water/sewer service for drinking, lavatory and toilet purposes from the regular Building supply; (iv) fire suppression as required by law; and (v) bulb replacement.

 

(g)  Throughout the Term of the Lease, Tenant shall be permitted to use, free of charge, thirty two (32) parking spaces in the parking lot adjacent to the Building and as necessary, in neighboring lot located at 3923 Ranchero Drive.

 

(h)  With respect to Tenant’s telecommunications facilities and services, Tenant shall select the providers and make arrangements directly with all providers of Tenant’s telecommunications facilities and services (hereinafter individually and collectively referred to as “Tenant’s Telecommunications Service Provider”) and pay for services provided by it to Tenant pursuant to a separate agreement between Tenant and Tenant’s Telecommunications Service Provider.  Tenant and Tenant’s Telecommunications Service Provider shall have use of telephone/data closets, risers, shafts, conduits or other facilities in and on the Building, to bring such telecommunications services to the desired portions of the Leased Premises.

 

(i)  Tenant shall have the right, subject to Landlord’s reasonable approval regarding location, which shall not be unreasonably withheld, delayed or conditioned, to use a portion of the roof of the Building for satellite, antennae, and/or supplemental HVAC equipment. Such rights shall be at no cost to Tenant.

 

(j)  Letter dated August 5, 2013 from Hobbs + Black Architects addressed to Jeff Loveland is attached as Exhibit D.

 

ARTICLE 8.  REPAIRS BY LANDLORD.  Landlord shall make all necessary repairs and replacements to the Building and to the surrounding property, common areas, and systems located therein so and to maintain the same in a first class condition and as may be necessary to cause the Building to comply with all existing and newly enacted Laws, together with all repairs to Leased Premises; provided, however, that the cost of such repairs and replacements shall be governed by the provisions of Article 5 hereof to the extent provided therein.  Notwithstanding the foregoing, the cost of replacement of the roof, walls, foundation, parking lot, structural components of Building, as well as the HVAC system and other Building systems (including any major components thereof) shall be completed at Landlord’s sole cost and expense and without reimbursement by Tenant as part of Operating Expenses.  Landlord shall have reasonable opportunity to obtain the necessary materials and workmen to complete said repairs.  Except to the extent Tenant’s use and occupancy of the Leased Premises are materially affected due to the negligence of Landlord, its employees, agents or contractors, there shall be no allowance to Tenant or any diminution in rent and no liability on the part of Landlord by reason of inconvenience, annoyance, or injury to business arising from repairs in or to any portion of the Building or the Leased Premises by Landlord.  Landlord shall use its best efforts to minimize the effect of the exercise of its rights hereunder upon Tenant’s use of the Leased Premises.

 

ARTICLE 9.  REPAIRS BY TENANT.  Subject to the waiver of subrogation contained in Article 41, all damage or injury to the Premises and/or the Building or its fixtures and

 

 

equipment caused by or resulting from the willful omission or negligence of Tenant, Tenant’s servants, employees, contractors, agents, visitors or licensees shall be repaired or replaced by Landlord at Tenant’s expense, payable within thirty (30) days after rendition of a bill therefore. Tenant shall, at the termination of Lease, surrender Leased Premises (together with all alterations, repairs and improvements thereon) to Landlord in the same condition as they were at the commencement of Lease, subject to: (i) reasonable wear and tear, (ii) damages caused by casualty or condemnation; (iii) such matters as Landlord is required to repair or restore under this Lease, (iv) latent defects in the Leased Premises, (v) any Cosmetic Alterations or alterations made with Landlord’s consent (unless Landlord, at the time it gives such consent, expressly requires in writing removal or restoration of such alterations), (vi) any partitions, flooring, floor covering, pipes, wires, cabling, ducts or conduits installed by Tenant provided these are cut off or capped in accordance with all applicable codes; and (vii) any repairs or replacements required due to any changes to any existing (or newly enacted) law, ordinance, administrative regulation, building or fire code which are enacted after the Commencement Date.

 

ARTICLE 10. REPAIRS TO LEASED PREMISES.  Except to the extent such repairs or replacements are the Landlord’s obligation under this Lease, should Landlord incur repair and maintenance costs for Leased Premises with respect to repairs that Tenant has requested that the Landlord complete, then Tenant shall reimburse Landlord for the reasonable out of pocket costs incurred by Landlord.  Landlord, at Landlord’s election, may include such costs in computing the amounts due pursuant to Article 5(c) of Lease.

 

ARTICLE 11.  ALTERATIONS.  Except for Cosmetic Alterations, Tenant agrees that the Leased Premises shall not be altered, improved or changed without prior written consent of Landlord which consent shall not be unreasonably withheld, delayed or conditioned.  All alterations, improvements and changes, except movable office furniture installed at the expense of the Tenant shall, unless otherwise provided by written agreement, be the property of Landlord and remain upon and be surrendered with the Leased Premises; provided, however, that Landlord, as a condition of its approval of such alteration, may designate, at the time such alteration is approved, that such alterations, must be removed by Tenant at the expiration of this Lease, and Tenant shall promptly remove the same and repair any damage to the Leased Premises caused by such removal.  All damage or injury done to the Leased Premises by the Tenant, or by any person who may be in or upon the Leased Premises with the consent, invitation or license of Tenant (excluding Landlord, its employees, agents or contractors), shall be paid for by Tenant.  Tenant shall not permit or suffer any lien to attach to the Building or any part thereof, and indemnify and save harmless Landlord against the same.  If any lien shall attach to the Building or is claimed, Landlord shall have the right to require Tenant to furnish a bond or other indemnity satisfactory to Landlord.  Tenant shall have the right to perform, without Landlord’s consent, any alteration, addition, or improvement that satisfies all of the following criteria (a “Cosmetic Alteration”): (1) is not visible from the exterior of the Premises or Building; (2) will not affect the systems or structure of the Building; (3) costs less than $5,000.00 in the aggregate during any twelve (12) month period of the Term, and (4) does not require work to be performed inside the walls or above the ceiling of the Premises (except for installation of computer or telecommunications wiring).  In addition, Landlord acknowledges and agrees that Tenant, at its sole cost and expense, shall be permitted to plant flowers around the perimeter of the Building, provided that Tenant shall be responsible for selection and upkeep of such plants to Landlord’s standards and approval.

 

ARTICLE 12.  CONDEMNATION.  In the event of the taking or condemnation for any reason by any public or quasi-public authority, entity or corporation having the power of eminent domain, the following shall apply:

 

 

(a)  If all the Building or Leased Premises is taken or condemned, the Lease shall terminate effective as of the date of taking.

 

(b)  If a portion of the Building or Leased Premises is taken or condemned and the remainder of either is, in Landlord’s opinion, not economically usable, Landlord shall notify Tenant of the termination of the Lease effective as of the date of taking.

 

(c)  If a portion of the Leased Premises is taken or condemned and the remainder is economically usable by Tenant, this Lease shall terminate as to the portion taken effective as of the date of taking and continue as to the remainder.  Landlord shall, to the extent reasonable using the award from such condemnation proceedings, repair and restore the remainder to its condition as of the date of taking.  Tenant’s base rent hereunder shall be reduced by the ratio of the area taken to the area of the Leased Premises prior to the taking.  Any prepaid rent shall be applied against subsequent rental due.

 

(d)  A voluntary sale or transfer in lieu of but under the threat of condemnation shall be considered a taking or condemnation.

 

(e)  Landlord shall be entitled to all compensation paid as a result of such taking or condemnation and Tenant shall have no claim against Landlord or the condemning authority for any part thereof except that Tenant may pursue a claim against the condemning authority for loss of business, cost of relocation or cost of removal of Tenant’s trade fixtures, furniture and equipment only if such claim does not diminish or adversely affect the compensation to be paid to Landlord.

 

ARTICLE 13.  DAMAGE BY FIRE AND OTHER CASUALTY.

 

(a)  If the Leased Premises or any part thereof shall be damaged by fire or other casualty, subject to the terms hereof, Landlord shall proceed with reasonable diligence to repair or cause to be repaired such damage to the condition in which the Leased Premises were delivered by Landlord to Tenant, and if the Leased Premises, or any part thereof, shall be rendered untenable by reason of such damage, the base rent hereunder, or an amount thereof apportioned according to that area of the Leased Premises so rendered untenable, if less than the entire Leased Premises, shall be abated for the period from the date of such damage to the date when the damage shall have been repaired as aforesaid; provided, however, that if the Landlord or any mortgagee or ground lessor of the Building shall be unable to collect the insurance proceeds (including rent insurance proceeds) applicable to such damage because of some action or inaction on the part of the Tenant, or the employees, licensees or invitees of the Tenant, the consequential damages of Landlord resulting from such delay shall be paid by the Tenant and there shall be no abatement of rent.  The Landlord will not carry insurance of any kind on the Tenant under the provisions of this Lease, nor on any improvement, alteration, or betterment made by Tenant to the Leased Premises, and Landlord shall not be obligated to repair any damage thereto or replace the same.

 

(b)  Notwithstanding Article 13 (a) hereof, in case the Building or the Leased Premises shall be so damaged by such fire or other casualty that substantial alteration or reconstruction of the Building or the Leased Premises shall be required (even though, as to the Building, the Leased Premises shall not have been damaged by the fire or other casualty) then either Landlord or Tenant may, at their option, terminate this Lease and the

 

 

term and estate hereby granted, by notifying the other party in writing of such termination, within sixty (60) days after the date of such damage.

 

(c)  Notwithstanding any term or provision hereof to the contrary, Landlord shall not be liable for any damages to Tenant for delays in commencing or completing repairs to the Leased Premises after fire or other casualty resulting from adjustment of insurance claims, governmental requirements, or any cause beyond Landlord’s reasonable control.  Notwithstanding the foregoing, upon the occurrence of a casualty affecting the Leased Premises, Tenant shall be permitted to terminate the Lease if any of the following conditions exist: (i) such casualty cannot reasonably be repaired within ninety (90) days; (ii) such casualty is not actually repaired within ninety (90) days; or (iii) if any casualty occurs during the last year of the Term.

 

ARTICLE 14.  INDEMNIFICATION;  INSURANCE.  Subject to the waiver of subrogation contained in Article 41, each party agrees to indemnify and hold harmless the other from any liability for damages to any person or property in or on the Leased Premises or to the Leased Premises or the Building as a result of its own negligence, or the negligence of its agents, employees, licensees and invitees.  The Tenant will procure and keep in effect during the term hereof public liability, contractual liability and property damage insurance, naming Landlord as an additional insured, in the sum of Three Hundred Thousand ($300,000.00) Dollars for bodily injury, One Hundred Thousand ($100,000.00) Dollars for property damage liability and a general liability policy with limits of liability of One Million ($1,000,000.00) Dollars for damages resulting from one occurrence, and a like aggregate limit for each annual period of such coverage.  The Tenant shall deliver said policies or certificates of said insurance coverage to the Landlord, and must notify the Landlord within five (5) business days of the termination of said policies.  Upon the Tenant’s failure to maintain such insurance, the Landlord may, at its option, obtain such insurance, and the cost thereof shall be paid as additional rent due and payable when the next installment of annual rent is due.

 

During the Term, Landlord shall maintain the following types of insurance, in the amounts specified below: (i) Commercial General Liability Insurance (which insurance shall not exclude blanket, contractual liability, broad form property damage, personal injury, or fire damage coverage) covering the Common Areas against claims for bodily injury or death and property damage, which insurance shall provide coverage on an occurrence basis with a per occurrence limit of not less than $1,000,000 combined single limit; and $1,000,000 aggregate for the policy period; and (ii) ISO Special Causes of Loss Form Insurance in the amount of the full replacement cost of the Building and other insurable improvements, including, without limitation, the Landlord’s Work.  Landlord’s insurance shall be primary as to any claims or damages within the common areas of the Building.

 

ARTICLE 15.  RULES AND REGULATIONS OF BUILDING.  The Tenant shall comply and cause Tenant’s agents, employees and invitees to comply with all reasonable rules and regulations of the Landlord for the Building and the Landlord’s property surrounding the same, provided the Tenant is given a written copy of such rules and regulations. (See Exhibit C)

 

ARTICLE 16.  GRAPHICS, BUILDING DIRECTORY AND NAME.

 

(a)  Tenant shall be permitted to place its standard signage on the entry door to the Leased Premises.  Tenant shall provide and install all letters or numerals on Building’s standard entrance doors to the Leased Premises; all such letters and numerals shall be in the Building’s standard graphics, or, by written permission from Landlord, may be in the

 

 

Tenant’s standard company logo style.  Landlord shall provide, at its sole cost and expense, signage for Tenant on the monument sign for the Building in the most prominent position available on such monument sign at time of Lease execution. Except for the signage described above, no signs, numerals, letters or other graphics shall be used or permitted on the exterior of, or which may be visible from outside the Leased Premises, unless approved in writing by Landlord, which approval shall not be unreasonably withheld, delayed or conditioned.

 

(b)  Landlord reserves the right to change the name or address of the Building from time to time as Landlord shall deem proper.

 

ARTICLE 17.  PROPERTY LOSS.  Except to the extent caused by the gross negligence or willful misconduct of Landlord, its employees, agents or contractors, Landlord shall not be liable to the Tenant for (i) any loss of property entrusted to employees of the Landlord or its agents or stolen from the Building or the property of the Landlord surrounding the same; (ii) any loss or damage resulting from fire, explosion, loose tiles, steam, gas, electricity, rain, water or leaks from any part of the Building, conduits or appliances therein, the roof, street or sub-surface or dampening, except where Landlord is negligent; or (iii) damage to persons or property resulting from the actions of other tenants of the Building, their agents, employees and invitees.

 

ARTICLE 18.  ASSIGNMENT AND SUBLETTING.  Except for a Permitted Transfer, the Tenant shall not assign this Lease or sublet all or any part of the Leased Premises without the prior written consent of the Landlord, such consent shall not be unreasonably withheld, delayed or conditioned.  This shall not relieve Tenant of liability hereunder.  If the Landlord consents to such an assignment or subletting, the Tenant shall deliver an original executed copy of the assignment or sublease and an executed assumption of the terms of this Lease by the assignee in form satisfactory to the Landlord prior to the assignee or subtenant taking possession.  Consent by the Landlord to any assignment or sublease shall not relieve the Tenant from the obligation to obtain the Landlord’s consent to all future assignments and subleases, and the Landlord may require that it consent to any assignment or sublease by a subtenant as part of the assumption by the subtenant of the terms of this Lease.  As used in this Article, the terms “sublease” and “subtenant” shall mean any sublease affecting the Leased Premises and any tenant under such a sublease, respectively.  Notwithstanding anything contained herein to the contrary, Tenant shall not be required to obtain Landlord’s consent for the following transfers (individually and collectively, “Permitted Transfers”): (i) the assignment of this Lease or sublet of all or any part of the Leased Premises to a parent, subsidiary, affiliate, or successor (by merger, consolidation, transfer of assets, assumption or otherwise) of Tenant; (ii) the assignment of this Lease or sublet of all or any part of the Leased Premises to an entity which purchases substantially all of the interests in or assets of Tenant or an operating division, group, or department of Tenant, or which purchases the majority of Tenant’s business as conducted in the Leased Premises; (iii) the transfer of a majority or controlling interest in Tenant; (iv) the assignment of this Lease or sublet of all or any part of the Leased Premises to an entity or entities created by the division of Tenant using the Leased Premises into one or more separate corporations, partnerships, or other entities; and (v) the assignment of this Lease or sublet of all or any part of the Leased Premises in connection with the public offering of the stock of Tenant, any affiliated or successor entity of Tenant, or any entity created in connection with the “spin-off” of an operating division, group, or department of Tenant.

 

ARTICLE 19.  ACCESS TO THE LEASED PREMISES.  The Landlord shall have access to the Leased Premises:

 

 

(a)  during normal business hours for the purpose of (i) inspecting the Leased Premises; (ii) making repairs, alterations or improvements to the Leased Premises or the utility systems of the Building (the Landlord shall have the right to make repairs, alterations, additions or improvements to the utility systems of the Building within the Leased Premises); (iii) showing the Premises for the purpose of selling or refinancing the Building; and (iv) to perform any obligations of the Tenant under this Lease the Tenant has failed to perform;

 

(b)  for a period of ninety (90) days prior to the expiration of this Lease for the purpose of leasing the Leased Premises; and

 

(c)  at any time during an emergency.

 

Notwithstanding the foregoing, Landlord’s reserved rights and access rights set forth above shall be subject to the following: (a) giving Tenant at least twenty-four (24) hours advance written notice, except in an emergency and (b) Landlord shall not interfere with or disrupt the normal operation of Tenant’s business.

 

ARTICLE 20.  RIGHT TO PERFORM TENANT’S OBLIGATIONS.  If the Tenant shall fail to perform any of Tenant’s obligations under this Lease (other than the payment of money) within thirty (30) days after notice of non-performance from the Landlord or, if such obligation cannot reasonably be performed within thirty (30) days, if the Tenant does not commence performance within such thirty (30) day period and diligently continue performance until completed, the Landlord may perform the Tenant’s obligation.  The Tenant shall pay the Landlord all reasonable out of pocket expenses the Landlord incurs in performance of the Tenant’s obligation upon being given notice thereof, plus interest at the average prime commercial lending rate in the City of Ann Arbor from the date such expense is incurred.  No default of the Tenant resulting in the Landlord’s performance of the Tenant’s obligation shall be deemed cured until the Tenant pays the Landlord the Landlord’s expenses in performing the obligation, plus interest as required in this Article.

 

ARTICLE 21.  RIGHT TO MORTGAGE.  At the option of each mortgagee holding a mortgage now or hereafter covering the Building and each owner of the Building which acquired ownership by the termination of a ground lease, this Lease shall be either subordinate or superior to the lien of such mortgagee or the title of such owner.  The Tenant shall execute and deliver within fourteen (14) days of request, a commercially reasonable form of SNDA.  As used in this Article, the term “mortgage” includes all modifications, renewal and extensions thereof.  Within fourteen (14) days after the date of this Lease, Landlord shall provide Tenant with a commercially reasonable form of SNDA from any party holding a mortgage or other security interest encumbering the Building or any portion thereof.

 

ARTICLE 22. ESTOPPEL CERTIFICATE.  Upon request by the Landlord, the Tenant shall deliver in recordable form a statement to any lender about to make a loan to the Landlord secured by a mortgage covering the Leased Premises, a mortgagee under an existing mortgage covering the Leased Premises, prospective transferee of all or part of the Landlord’s interest in the Leased Premises or to the Landlord certifying but only to the best of Tenant’s knowledge without inquiry or inspection of the Leased Premises, any facts that are then true with respect to this Lease, including without limitation (if such be the case), that this Lease Agreement is in full force and effect, that the Tenant is in possession, that the Tenant has commenced the payment of rent, the date through which

 

 

various rentals and charges have been paid, that there are no defenses or offsets under this Lease claimed by the Tenant, or if there are defenses or offsets, stating what they are, that the Tenant is not in default and that the Tenant has no knowledge of any default by the Landlord or any event which but for the passage of time or giving of notice or both would constitute a default by the Landlord.

 

ARTICLE 23.  QUIET ENJOYMENT.  The Landlord covenants that Tenant, on payment of all the aforesaid installments and performing all the covenants aforesaid shall and may peacefully and quietly have, hold and enjoy the said Leased Premises for the term aforesaid, subject to the terms of this Lease.

 

ARTICLE 24.  HOLDING OVER.  The Tenant shall not acquire any right or interest in the Leased Premises by remaining in possession after termination of this Lease.  During any such period of holding over:  (a) the Tenant shall be a tenant at will, but subject to all the obligations imposed upon Tenant by this Lease, reference to the term of this Lease and the termination of this Lease being deemed to refer to the tenancy at will and its termination, except (b) the annual rent to be paid by Tenant shall be 150% of the rate of the annual rent immediately preceding the termination of this Lease, and (c) no option to renew or extend this Lease shall apply to the period of holding over.  Landlord acknowledges and agrees that during the initial ninety (90) days of any holdover by Tenant, Landlord’s sole and exclusive remedy on account of such holdover shall be the receipt of the increased rental amount described above.

 

ARTICLE 25.  DEFAULT.

 

(a)         The following shall be defaults by the Tenant:

 

(i)  The Tenant shall fail to pay any rental or other sum of money becoming due hereunder and such failure to pay shall continue for more than ten (10) days after written notice from Landlord after the applicable due date or shall continue to use the Leased Premises or the Building in violation of a health ordinance or so as to void the certificate of occupancy or commercially reasonable insurance on the Building and such use continues for more than thirty (30) days after written notice from Landlord or such further reasonable period if Tenant has commenced the cure of such default within such thirty day period;

 

(ii)  The Tenant fails to deliver an Estoppel Certificate or subordination within fourteen (14) days after requested by the Landlord;

 

(iii)  The Tenant shall fail to perform any other covenant of this Lease, which failure continues for more than thirty (30) days after written notice from Landlord or such further reasonable period if Tenant has commenced the cure of such default within such thirty day period;

 

(iv)  The estate of the Tenant created hereby shall be taken in execution or by other process of law;

 

(v)  The Tenant shall be declared insolvent under State insolvency law;

 

(vi)  A receiver shall be appointed for all the property or business of the Tenant;

 

 

(vii)  An assignment shall be made of the Tenant’s property for the benefit of creditors.

 

(b)         In addition to and without limiting any other provision of Lease granting Tenant remedies for a breach by Landlord, if Landlord defaults or fails to perform any of its representations, warranties, covenants or obligations under this Lease and fails to cure such default within a reasonable time after written notice from Tenant specifying the nature of such default, Tenant, at its option, in addition to any other remedies available to Tenant at law or in equity, may (i) proceed in equity or at law to compel Landlord to perform its obligations, and/or (ii) perform or cause the performance of Landlord’s obligations, and any such amount incurred by Tenant shall be payable by Landlord to Tenant within ten (10) days following Tenant’s written demand for payment with interest specified in Article 20 of this Lease and if not so paid, may be offset against and deducted from the Rent and other sums subsequently accruing under this Lease.  For purposes of this Section, a roof leak or other property condition required to be repaired by Landlord that interferes with the Tenant’s business operations, threatens to damage Tenant’s personal property or threatens to injure people shall be deemed an emergency.

 

ARTICLE 26.  REMEDIES.  Upon the Tenant’s default, the Landlord may, in addition to any other right or remedy it may enjoy and in accordance with Michigan law:

 

(a)  Terminate this Lease immediately upon giving of notice to the Tenant.

 

(b)  If default consists in whole or in part of the Tenant’s failure to expend funds, make the necessary expenditures for the account of the Tenant, who shall reimburse the Landlord therefore with interest at the rate specified in Article 20 of this Lease.

 

(c)  Terminate the Tenant’s right to possession of the Leased Premises without terminating the term of this Lease, immediately upon the giving of notice to the Tenant.

 

Upon termination of this Lease for any reason or by any means, or upon termination of the Tenant’s right of possession as provided above, the Tenant shall promptly surrender possession to the Landlord and vacate the Leased Premises and the Landlord may evict Tenant from the Leased Premises in accordance with applicable law.  If the Landlord elects to terminate the Tenant’s right of possession without terminating the term of this Lease, the Landlord may, at its option, lease or sublet all or any part of the Leased Premises for the account of the Tenant on such terms and conditions and for a term longer or shorter than the unexpired term of this Lease, as the Landlord may elect, and collect from the Tenant any balance remaining due on the rent or other obligations payable by the Tenant under this Lease.  The Tenant shall pay the Landlord upon written demand all expenses of reletting, including without limitation, broker’s fees, attorney’s fees and the cost of Tenant improvements, with interest thereon at the average prime rate in the City of Ann Arbor from the date expended by the Landlord.  Landlord agrees to use commercially reasonable efforts to relet the Leased Premises and mitigate any damages which Landlord may incur due to Tenant’s default under this Lease.

 

If the Landlord terminates this Lease, the Tenant shall pay the Landlord, as its sole and exclusive damages, (i) upon written demand, the expense of reletting with interest as provided for in the previous paragraph, and (ii) as damages, the present discounted value (assuming a 5% discount rate) of the remaining rental payments which would have been paid during the Term to the extent such amount is greater than the fair market rental value of the Leased Premises.

 

 

ARTICLE 27.  SECURITY DEPOSIT.  Upon execution of this Lease, the Tenant shall deposit $7,941.00 with the Landlord as security for the performance by the Tenant of the terms of the Lease.  The Landlord may use, apply or retain (without liability for interest) the whole or any part of the security so deposited to the extent required for the payment of any rent or other sum as to which the Tenant may be in default hereunder or for any sum which the Landlord may expend by reason of the Tenant’s default.  Provided the Tenant shall comply with all the terms of this Lease, such security shall be returned to the Tenant, without interest, unless required by law, upon termination of this Lease and within ten (10) days after surrender of possession of the Leased Premises to the Landlord as required by this Lease and payment of additional rent under Article 5.

 

Tenant hereby agrees not to look to the Mortgagee, as Mortgagee, Mortgagee-in-possession or successor-in-title to the property for accountability for any security deposit required by the Landlord hereunder, unless said sums have actually been received by said Mortgagee as security for the Tenant’s performance of this Lease.

 

ARTICLE 28.  WAIVER.  No waiver of any covenant or condition of this Lease or of the nonperformance of the same for any particular time shall be construed as a waiver of a subsequent breach of the same or another covenant or condition hereof, and the consent or approval of Landlord or Tenant to or of any act requiring consent or approval of the other party shall not be deemed to waive or render unnecessary such party’s consent or approval to or of any subsequent similar acts.

 

ARTICLE 29.  ADDITIONAL RENT.  All payments required to be made by the Tenant under this Lease in addition to the annual rental, including but not limited to those denominated as additional rent, shall be deemed rent, and the Landlord shall have the same rights and remedies with respect to such payments and the failure to pay same as for the payment and failure to pay rent.  If no time for payment of any such amount is specified, it shall be deemed payable within thirty (30) days after written demand therefor by the Landlord.

 

ARTICLE 30.  LANDLORD’S EXPENSES.  If the Tenant shall at any time be in default and the Landlord shall deem it necessary to engage attorneys to enforce the Landlord’s rights hereunder, the determination of such necessity being in the reasonable discretion of the Landlord, the Tenant will reimburse the Landlord for the reasonable expenses incurred thereby, including but not limited to, court costs and reasonable attorney’s fees.

 

ARTICLE 31.  LATE PAYMENTS.  Whenever the Tenant fails to make any payment of annual rent or additional rent hereunder within ten (10) business days after payment is due, the Tenant shall pay to the Landlord, in addition thereto, five (5%) percent thereof as liquidated damages to cover the Landlord’s costs of administration in collecting the payment and the losses incurred by the Landlord in not receiving timely payment.

 

ARTICLE 32.  NOTICES.  Any notice desired or required to be given hereunder shall be in writing and delivered personally, mailed to the recipient at the mailing address set forth below, or in the case of the Tenant, delivered or mailed to the Leased Premises.  Any mailed notice shall be sent registered or certified mail, return receipt requested, and shall be deemed given when posted with sufficient postage prepaid.  Either party may change its mailing address by notice to the other party.  If more than one person or entity

 

 

constitutes the Tenant, notice addressed and/or sent to one such person or entity shall be deemed notice to the Tenant.

 

MAIL NOTICE ADDRESS:

 

	
Landlord:
    	
McMullen SPE, LLC
    
	
 
    	
825 Victors Way, Suite 150
    
	
 
    	
Ann Arbor, MI 48108
    
	
 
    	
 
    
	
Tenant:
    	
Esperion Therapeutics, LLC
    
	
 
    	
Attn: Richard Bartram
    
	
 
    	
3891 Ranchero Drive, Suite 150
    
	
 
    	
Ann Arbor, MI 48108
    

 

ARTICLE 33.  NO BROKER.  The Tenant warrants and represents that no broker, other than Swisher Commercial, was involved on Tenant’s behalf in negotiating or consummating this Lease and agrees to indemnify and hold the Landlord harmless from and against any and all claims for brokerage commissions arising out of any communications or negotiations had by the Tenant with any broker, other than Swisher Commercial, regarding the Leased Premises or any other premises in the Building and/or the consummation of this Lease.  Landlord agrees to pay Swisher Commercial, a market commission pursuant to the terms of a separate agreement.

 

ARTICLE 34.  CAPTIONS.  The captions to the Articles of this Lease are for convenience and reference only and shall not in any way modify or control the meaning of the provisions to which they relate.

 

ARTICLE 35.  ENTIRE AND BINDING AGREEMENT.  This Lease contains all of the agreement between the parties hereto, and it may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest.  The terms, covenants, and conditions contained herein shall inure to the benefit of and be binding upon the Landlord and the Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Lease.

 

ARTICLE 36.  JOINT AND SEVERAL OBLIGATIONS.  If the Tenant or any assignee of the Tenant’s interest is more that one person or entity, their obligations hereunder and under law shall be joint and several.

 

ARTICLE 37.  FORCE MAJEURE.  The commencement of the term hereof and the time within which any of the parties hereto shall be required to perform any acts under this Lease shall be extended to the extent that the performance of such act shall be delayed by acts of God, fire, windstorm, flood, explosion, collapse of structures, riot, war, labor disputes, delays or restrictions by governmental bodies, inability to obtain or use necessary materials, or any cause beyond the reasonable control or such party; provided, however, that the party entitled to such extension hereunder shall give prompt notice to the other party of the occurrence causing such delay and the in absence of prompt notice, such party shall be deemed to have waived the right to thereafter assert force majeure with respect to such event.  After the commencement of the term hereof, the provisions of this Article shall not operate to excuse Tenant from prompt payment of rent or any other payments required by the terms of this Lease.

 

ARTICLE 38.  APPLICABLE LAW.  This Lease should be construed under the laws of the State of Michigan.  If any provision of this Lease, or portion thereof, or the

 

 

application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease shall not be affected thereby and each provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.

 

ARTICLE 39.  NET LEASABLE FLOOR AREA.

 

For purposes of this Lease, the term “net leasable floor area” shall mean the total number of square feet of floor area in the Building, which is 29,678 square feet.

 

ARTICLE 40.  LANDLORD DEFINED.

 

(a)  The term “Landlord” as used in this Lease means only the owner of the Building or the owner of a leasehold interest in the Building or the Building and land thereunder so that in the event of (i) a conveyance of the Building, (ii) a demise of the Building or said land and the Building, or (iii) an assignment of a leasehold interest in the Building or said land and the Building or of this Lease, except an assignment given as security under which title has not yet vested in the secured party by reason of the Landlord’s defaults, (collectively a “Transfer”), the Landlord shall be and hereby is entirely free and relieved of all obligations of the Landlord subsequently accruing other than the return of the Security Deposit until transferred to the new landlord.  Such a Transfer shall not affect the obligations of the Tenant under this Lease.  Upon receipt of a commercially reasonable assignment and assumption agreement, the Tenant shall attorn to the transferee from the date Tenant receives written notice of the Transfer.

 

(b)  Any securities given by the Tenant to the Landlord to secure performance of the Tenant’s obligations hereunder may be assigned and transferred by the Landlord to such successor in interest of the Landlord;  and, upon acknowledgement by such successor of receipt of such security and its express assumption of the obligation to account to the Tenant for such security in accordance with the terms of this Lease, the Landlord shall thereby be discharged of any further obligation relating thereto.

 

(c)  The Landlord’s liability with respect to any of the covenants, conditions or provisions of this Lease shall be limited to Landlord’s interest in the Building, which interest shall include casualty/condemnation proceeds, sale/financing proceeds, and the rents and other revenue generated by the Building.

 

ARTICLE 41.  WAIVER OF SUBROGATION.  Each party hereto does hereby remise, release and discharge the other party hereto and any officer, agent, employee or representative of such part, of and from any liability whatsoever hereafter arising from loss, damage or injury to its property (included the Building) caused by fire or other casualty for which insurance is carried by the injured party at the time of such loss, damage or injury or was required to be carried by such party under the terms of this Lease.

 

ARTICLE 42.  TENANT IMPROVEMENTS.  Landlord shall provide a turnkey build-out, in accordance with the terms of the Work Letter attached hereto as Exhibit “A-2”. Landlord acknowledges and agrees that, as part of the Landlord’s Work, Landlord shall:  (a) provide a picnic table near the entrance to Leased Premises; (b) repair all cracks in the sidewalk surrounding the Building; and (c) remove and replace the dead tree near the Building.

 

 

ARTICLE 43.  OCCUPANCY DATE.  It is anticipated that Landlord will provide occupancy within ninety (90) days of the latter of Lease execution and agreement on space plan and scope of work.

 

ARTICLE 44.  RENT ABATEMENT.  The first three (3) months of said Lease shall be free of base rent.

 

ARTICLE 45.  EARLY ACCESS.  Tenant shall have up to thirty (30) days for set-up time prior to commencement of Lease.  Early access shall be at no charge to Tenant and shall not trigger commencement of Lease.

 

ARTICLE 46.  RIGHT TO RENT.  Tenant shall have the right to rent any vacant and contiguous suite.  Any expansion suite lease terms shall be the same terms and conditions as for the initial premises, as agreed by both Landlord and Tenant.  Rent will begin on expansion suite when the suite is available for occupancy.  Expiration of the expansion suite shall be coterminous with the initial space, but the overall lease must have a minimum of a three (3) year term remaining.  Landlord shall provide a pro rata tenant improvement allowance for each expansion.

 

ARTICLE 47.  LANDLORD CLAIMS.  Any claims by Landlord, including but not limited to Tenant’s obligations, if any, to maintain or repair the Leased Premises or to make improvements or alterations or to remove or restore such items must be represented in writing by Landlord to Tenant within sixty (60) days (which time is of the essence) after expiration or termination of this Lease or shall be deemed irrevocably waived.

 

IN WITNESS WHEREOF, the Landlord and the Tenant have executed this Lease as of the day and year first written above.

 

	
“Landlord”
    	
 
    
	
McMullen SPE, LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
McMullen SPE2, Inc., a Michigan Corporation, Manager
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Thomas B. McMullen
    	
 
    
	
 
    	
Thomas B. McMullen
    	
 
    
	
 
    	
 
    
	
Title:
    	
President
    	
 
    
	
 
    	
 
    
	
Date:
    	
February 4, 2014
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
“Tenant”
    	
 
    
	
Esperion Therapeutics, Inc.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Tim Mayleben
    	
 
    
	
 
    	
Tim Mayleben
    	
 
    
	
 
    	
 
    
	
Title:
    	
President & CEO
    	
 
    
	
 
    	
 
    
	
Date:
    	
February 4, 2014
    	
 
    

 

	
  

  	
  EXHIBIT A-1,
  page 1   B “())’ z 0 I m ::u 0 0 (j)
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  EXHIBIT A-1,
  page 2 The Ponds South - Esperion 12/23/13 Finish Meeting Carpet
  Manufacturer: Interface Style: Exposed Color: 8686 Brick Yard Glass Mosaic
  Tile Manufacturer: Oceanside Style:Blue Color: Oasis Size 3/4” x 3-3/8” Brick
  Source: Virginia Tile Paint Manufacturer: Benjamin Moore Color:Shaker Beige
  HC-45 Manufacturer: Benjamin Moore Color: TBD (to match ICI/Dusty Trail
  A1747) Manufacturer: Benjamin Moore Color: Tropical Oasis CSP-710
  Manufacturer: Benjamin Moore Color:Jojoba AF-460 Manufacturer: Benjamin Moore
  Color: Barrista AF-175 Plastic laminate Manufacturer: Formica Style: Jute
  Gauze 7709-58 Rubber Base Manufacturer: Johnsonite Color: 09 Clay Solid
  Surface (Restroom Counters) Manufacturer:Corian Color: Cottage lane Stone
  (Breakroom Counters) Color: Brisbane Source: Dwyer Marble and Stone

  

 

	
  

  	
  EXHIBIT A-1,
  page 3 VCT Manufacturer: Armstrong Style: Imperial Standard Excelon Color:
  57501Nougat Manufacturer: Armstrong Style: Imperial Standard Excelon Color:
  57506 Colorado Stone Manufacturer: Armstrong Style: Imperial Standard Excelon
  Color: 51885 Granny Smith Manufacturer: Armstrong Style: Imperial Standard
  Excelon Color: 57504 Chocolate Walk Off Carpet Manufacturer: Patcraft Style:
  Walk Right In Color: Chocolate Wood Flooring Manufacturer: Nydree Species:
  Reclaimed Oak Color: Natural Width: 4” Thickness: 3/8” Finish: Urethane
  Finish

  

 

	
  

  	
  Esperion Work
  Letter  Exhibit A-2, page 1

   

   

   

  Space Plans -
  Landlord and Tenant have agreed on attached floor plan and material
  specifications (Exhibit A-1). Hobbs & Black, at Landlord’s cost, will
  provide space planning subject to mutual approval by Landlord and Tenant.
  Construction Drawings - Landlord agrees to provide all materials and labor
  for the turn-key build-out of the Premises pursuant to the attached floor
  plan and specifications, except for items on Exhibit A-2, Page 4 which will
  be paid for by Tenant. Based upon the attached floor plan and specifications,
  Hobbs & Black will provide, at Landlord’s cost, working drawings, subject
  to mutual approval by Landlord and Tenant (as approved the “Plans”). All work
  contemplated by the attached floor plan and specifications and the Plans is
  referred to as the “Landlord’s Work”. The Landlord will complete the
  Landlord’s Work in a good workmanlike manner and in compliance with all
  applicable laws. Work Schedule - Landlord and Tenant will mutually agree to a
  work schedule within five (5) business days of execution of lease. Landlord
  will deliver a timetable of planning and completion of Landlord’s Work.
  Timetable will reflect dates agreed upon in lease article 3. Construction
  Management - Construction Management will be done by McMullen Realty Co.
  Construction Representatives - The landlord acknowledges that Jeff Loveland
  or Donald Elliott will represent the landlord and George Evans will represent
  the tenant. Weekly Construction Review Meetings - It is agreed that weekly
  construction meetings will be held at a time mutually agreed upon by landlord
  and tenant. Change Orders - Changes or additions to the scope of work, after
  the signing of the lease, and approval of the Plans, will be handled by a
  mutually agreed upon change order signed by both parties. Change orders will
  include a 10% overhead fee. Commencement Date and Substantial Completion -
  The Commencement date will be established pursuant to Article 3 of the Lease.
  For purposes of determining

  

 

	
  

  	
  such
  Commencement Date, the Landlord’s Work will be deemed substantially completed
  when (a) all work is completed, other than decoration and minor punch list
  work and adjustments which do not materially interfere with Tenant’s access
  and use of the Premises,and (b) pursuant to final inspection. Tenant shall
  have early access to the Premises ten (10) business days prior to the
  Commencement Date. Tenant Delays - For purposes of this Work Letter
  Agreement, “Tenant Delays” means any delay in construction process caused by
  tenant’s request for materials, finishes, or installation which are not
  readily available or which are incompatible with landlord’s standard
  specifications for tenant improvements for the development, or if any other
  act or failure to act by tenant, tenant’s employees, agents, architects,
  independent contractors, consultants and/or any other person performing or
  required to perform services on behalf of tenant. Landlord Delays - Any
  delays by the landlord or McMullen Realty’s subcontractors caused by lack of
  planning or performance. Force Majeure Delays - For purposes of this Work
  Letter “force majeure delays” means any actual delay in construction of
  Landlord’s Work, which is beyond the reasonable control of landlord or tenant
  as the case may be, as described in Article 37 of the lease. Delivery of
  Possession - As provided for in Article 3 “Term” of the lease. Walk-through
  and Punch List - Landlord agrees to a punch list walk through upon
  “substantial completion” with Hobbs & Black and a Landlord and Tenant
  representative. Landlord agrees to complete list within 30 days thereafter.
  Payments - Landlord shall provide Tenant with an initial construction
  estimate prior to execution of the lease. The Landlord shall pay for the full
  cost of the Landlord’s Work, except that Tenant agrees to contribute
  $59,054.64 as compensation for Tenant’s selection of certain materials above
  the Landlord’s building standard materials (the “Additional Tenant
  Improvements”). Such payments will be due by Tenant to Landlord within 30
  days after the Commencement Date. In the event of any change orders approved
  by the Tenant in writing, the additional cost set forth in such change orders
  will be due within 30 days after the Commencement Date. All other payments
  will be covered by lease article 29. Landlord shall provide a final cost
  accounting of actual construction costs to Tenant within thirty (30) days
  after the Commencement Date.

  

 

	
  

  	
  Tenant
  Responsibilities:•Data and Communication - Services, Installation, and wiring
  •All cost associated with access control/burglar and fire alarm systems •All
  furniture needs including reception area •Server Room fire suppression needs
  •Refrigerator & Microwave Other - HVAC will be retro-fitted to new space
  plan. No new RTU’s or additional stand alone units are provided in this contract.
  Warranty - Landlord hereby warrants the Landlord’s Work for one (1) year
  after full completion against defective, faulty, or improper workmanship and
  /or materials. During such warranty period, Landlord, at its sole cost, shall
  promptly repair any defects in the Landlord’s Work.

  

 

	
  

  	
  EXHIBIT A-2,
  page 4 Client Name: Address: Job: Date: Esperlon- Tl’s 3891 Ranchero Dr
  1/16/2014 Description of Work Cost Comments Raise ceiling incl exterior wall
  work as close to 9’ as possible $7,000.00 Electical work needed for ceiling
  work $5,000.00 Hvac work required to raise ceiling $2,000.00 up_grade ceiling
  tile to Tegular tiles $9,200.00 Upgrade flooring - carpet Squares and wood
  plank $22,637.64 Upgrade break room top to Granite $2,800.00 Includes credit
  for standard top Upgrade to tiled backsplash-break room $756.00 Upgrade bathroom
  tops to corlan with sinks $2,500.00 Includes credit for standard tops Add
  cabinets to bathrooms per plan $1 800.00 Estimated per design $0.00 $0.00 $0.00
  $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
  Overhead $5,361.00 Total: $59,054.64 Client Authorization Date Acceptance by
  McMullen Properties Date Tim Mayleben 2-3-14 Thomas B. McMullen Feb 4, 2014

  

 

	
  

  	
  Exhibit “B”
  Units 20, 21 and 22 Legal Description Land situated in the Township of
  Pittsfield, County of Washtenaw, Michigan and described as follows: Units 20,
  21 and 22, Valley Ranch Business Park, a condominium, according to the Master
  Deed recorded in Liber 2583, Pages 790-848, inclusive, Washtenaw County
  Records, as amended by first Amendment to Master Deed recorded in Liber 2719,
  pages 567 through 577, inclusive, Washtenaw County Records, as amended by any
  amendments thereto, and designated as Washtenaw County Condominium
  Subdivision Plan No. 159, together with rights in general common elements and
  limited common elements as set forth in the above Master Deed and as
  described in Act 59 of the Public Acts of 1978.

  

 

	
  

  	
  EXHIBIT “C”
  RULES AND REGULATIONS Tenant shall comply with, and shall not permit any
  violation of the following Rules and Regulations as the same may be
  reasonably amended by Landlord from time to time: 1. The common or public
  areas of the building and grounds shall not be obstructed or used for any
  purpose other than ingress and egress to and from the Leased Premises.
  Parking areas shall be used only for transient parking by tenants, their
  employees and invitees, and shall not be used to store vehicles or for
  parking large commercial or recreational vehicles. 2. Nothing shall be
  attached to the interior or exterior of the building outside the Leased
  Premises without the prior written consent of the Landlord. Standard building
  blinds shall be used in such windows as shall be designated by Landlord. No
  other blinds, drapes, curtains, shades, screens or other objects shall be
  attached to or hung in, or used in connection with, any window or door of the
  Lease Premises without the prior written consent of Landlord. 3. Except for signage
  permitted under the terms of the Lease, no sign or other representation shall
  be placed outside any part of the Leased Premises, or inside the Leased
  Premises if the same will be visible from outside the Leased Premises,
  without the prior written consent of the Landlord. Landlord will provide
  standard tenant identification in the building directories, if applicable. 4.
  Other than during the ordinary course of business, all deliveries and
  removals of furniture, and large equipment must take place after notice to
  Landlord during such hours and in such manner as Landlord may reasonably
  determine from time to time. Tenant shall be responsible for all damage or
  injury resulting from the delivering or removal of all articles into or out
  of the Leased Premises. 5. No load shall be placed on the floor of the Leased
  Premises in excess of limits which the floor was designed to hold. Tenant’s
  equipment shall be placed and operated only in such locations as shall be
  approved by Landlord. 6. Except in compliance with applicable law, no article
  deemed hazardous on account of fire or having other dangerous properties or
  any explosive shall be brought into the building or Leased Premises. No
  vehicles or animals of any kind shall be brought into the building or within
  the Leased Premises. 7. Other than what is consistent with normal office
  interior decorating or that which would otherwise qualify as a Cosmetic
  Alteration under the terms of the Lease, no marking, painting, drilling,
  boring, cutting or defacing of the Leased Premises or the building will be
  permitted without the prior written consent of Landlord and as it may

  

 

	
  

  	
  direct. Nothing
  shall be attached to the floor by adhesive without the written permission of
  the Landlord. 8. Except for Tenant’s computer and telecommunications wiring,
  no electric or other wires shall be brought into the Leased Premises and the
  electrical system and light fixtures in the building and the Leased Premises
  shall not be disturbed without Landlord’s permission specifying the manner in
  which same may be done. 9. The toilets and other plumbing fixtures shall not
  be used for any purpose other than those for which they are designed, and no
  sweepings, rubbish or other similar substance shall be deposited therein. 10.
  No noise, vibration or odor shall be produced upon or from the Leased
  Premises which is observable outside the Leased Premises. Nothing shall be
  thrown out of the doors or windows or down the passageways. 11. The Leased
  Premises shall not be used, or permitted to be used, for lodging or sleeping
  or for the possession, sale or furnishing of liquor or narcotics. No tenant
  shall engage or pay any employees on the Leased Premises except those
  actually working for such tenant on the Leased Premises. 12. Canvassing,
  soliciting and peddling in the building is prohibited, and each tenant shall
  cooperate to prevent the same. 13. Landlord is not responsible for mail boxes
  or for any damage or delay which may arise from the use thereof. Landlord
  will not be responsible for lost or stolen property except for Landlord’s
  negligence or neglect. 14. Upon closing the Leased Premises at any time, all
  doors shall be locked and all windows shall be closed. No additional locks or
  bolts of any kind shall be placed upon any of the doors or windows nor shall
  any changes be made in existing locks or the mechanisms thereof. Upon the
  termination of occupancy, all keys of offices and restrooms shall be returned
  to Landlord, and in the event of the loss of any keys furnished by Landlord,
  the tenant shall pay to Landlord the cost thereof. Landlord may retain a pass
  key to the Leased Premises and shall be allowed admittance thereto at all
  reasonable times with prior reasonable notice. 15. The requirements of
  tenants will be attended to only upon application at the office of the
  building management. Landlord’s employees shall not perform work outside of
  their regular duties, unless under special instruction from Landlord. 16. In
  the event of any inconsistency between the terms of these Rules and
  Regulations and the terms of the Lease, the terms of the Lease shall control
  and supersede these Rules and Regulations.

  

 

	
  

  	
  HOBBS+ BLACK
  ARCHITECTS August 5, 2013 Jeff Loveland Operations Manager McMullen
  Properties 825 Victors Way, Suite 150 Ann Arbor, Ml48108 RE: 3891 Ranchero
  Drive Dear Jeff: Hobbs+Biack Associates is the Architect of Record for this
  building, and the Interior construction of the tenant suites. We are familiar
  with the building, and have seen no evidence of any structural defects. We
  have reviewed the Phase One Site Assessment dated June 18, 2013 and see no
  evidence of previous or present air, water, or soil contamination or pest
  infestation. Feel free to contact me if you have any questions. Sincerely, Steve
  Dykstra Vice President ,, 1-•. •• •: i. •,.,.,_

  HOBBS+BLACK
  ASSOCIATES INC ARCHITECTS I ENGINEERS I INTERIOR DESIGNERS P.734.663.4189
  F.734.663.1770 100 N. State Street Ann Arbor, Michigan 48104
  www.hobbs•black.com ANN ARBOR 1 LANSING 1 PHOENIX ;, ‘Exhibit 10.1

 

EXECUTION COPY

 

PURCHASE AND SALE AGREEMENT

 

This PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into by UNIVERSITY CUP LLC, a Delaware limited liability company (“Seller”), and CUPS NUMBER ONE (DE) LLC, a Delaware limited liability company (“Purchaser”), as of January 13, 2014 (the “Effective Date”).

 

RECITALS:

 

A.                                Seller owns a fee simple interest in and to certain real property known as 701 Central Avenue, University Park, Illinois, as more particularly described in Exhibit A attached hereto and made a part hereof (the “Premises”).

 

B.                                 The parties to this Agreement have agreed to the sale and purchase of the Property (as hereinafter defined), of which the Premises are a part, on terms and conditions more particularly set forth in this Agreement.

 

ARTICLE 1
 PURCHASE AND SALE OF PROPERTY.

 

On the terms and conditions stated in this Agreement, Seller hereby agrees to sell to Purchaser, and Purchaser hereby agrees to purchase from Seller, all of Seller’s right, title and interest in and to the following described property (collectively, the “Property”):

 

1.1                            Land.  The Premises, together with all rights and appurtenances pertaining to the Premises, including, without limitation, all of Seller’s right, title and interest in and to (i) all adjacent strips, streets, roads, alleys and rights-of-way, public or private, open or proposed, (ii) all covenants, easements, and privileges pertaining thereto, whether or not of record, and (iii) all access, air, water, riparian, development, utility, and solar rights (collectively, the “Land”).

 

1.2                            Improvements.  The buildings (the “Buildings”) constructed on the Premises, together with all other improvements and structures constructed on the Premises (collectively, the “Improvements”).

 

1.3                            Personal Property.  All of Seller’s right, title and interest in and to (specifically excluding any fixtures or personal property owned by the existing tenant under licenses) the following:  (i) to the extent owned by Seller, all mechanical systems, fixtures, machinery and equipment comprising a part of or attached to or located upon or within the Improvements; (ii) maintenance equipment and tools, if any, owned by Seller and used exclusively in connection with, and located in or at, the Improvements; (iii) site plans, surveys, plans and specifications, manuals and instruction materials, and floor plans in Seller’s possession which relate to the Land or Improvements; (iv) to the extent owned by Seller, all pylons and other signs situated on or at the Land or Improvements; and (v) other tangible personal property owned by Seller and used exclusively in connection with, and located in or on, the Land or Improvements as of the date of Closing (as defined in Section 8.1 below) (collectively, the “Personal Property”).  Notwithstanding anything to the contrary in this Agreement, the Personal Property shall not 

 

 

include any of the following: (i) tax deposits, utility deposits and other deposits held by parties other than Seller, except for any transferable deposits assigned to Purchaser, for which Seller is to be reimbursed as herein provided; and (ii) any rights to any Personal Property described in the preceding sentence, including furniture, that bears the name, logo or marks of Seller or any of its affiliates or identifies that the Property was owned by Seller, including, without limitation, any and all signage, including, without limitation, any free-standing or building fascia sign bearing the name, logo or marks of Seller or its affiliates.

 

1.4                            Lease and Licenses.  Seller’s right, title and interest in (i) the lease with the existing tenant leasing all or any portion of the Improvements (the “Lease”), and (ii) to the extent assignable, Seller’s right, title and interest in all license agreements, occupancy agreements, and other similar agreements with licensees using any portion of the Improvements in effect as of the date of Closing (collectively, the “Licenses”), in each case to the extent the same are in effect as of the Closing Date, a current list of which is attached hereto as Schedule 1.4.

 

1.5                            Security Deposit                                 .  Seller’s right, title and interest in all security deposits, if any,  held by Seller in connection with the Lease and Licenses and not applied pursuant to the terms thereof, a current list of which is attached hereto as Schedule 1.5.

 

1.6                            Permits.  Seller’s right, title and interest in all permits, licenses, certificates of occupancy, entitlements and governmental approvals which relate exclusively to the Land or  Improvements, to the extent assignable (collectively, the “Permits”).

 

1.7                            Intangibles.  Seller’s right, title and interest, if any, in all names, trade names, street numbers, marks, other symbols and general intangibles, which relate exclusively to the Land or the Improvements, to the extent assignable by Seller, other than any of the same that reference University Cup LLC  (collectively, the “Intangibles”).

 

ARTICLE 2
 PURCHASE PRICE AND DEPOSIT.

 

2.1                            Purchase Price.  The aggregate purchase price for the Property (“Purchase Price”) shall be Eighty Million Six Hundred Fifty Thousand Dollars ($80,650,000.00).  The cash due at Closing from Purchaser on account of the Purchase Price shall be subject to adjustment as set forth in this Agreement.  The Purchase Price shall be payable as follows:

 

2.1.1                                        Deposit.  Within one (1) Business Day following the Effective Date and as a condition precedent to this Agreement being effective, Purchaser shall deliver to Chicago Title Insurance Company (the “Escrow Agent”), by federal funds wire transfer, a cash deposit in immediately available funds in the amount of  Two Million Dollars ($2,000,000) (together with any interest accrued thereon, the “Initial Deposit”).  On or before the date (such date, the “Additional Deposit Due Date”) that is the first Business Day following the later of (i) expiration or waiver of the Diligence Period (as defined in Section 4.1), or (ii) the date Purchaser is provided with the executed Required Estoppels for each Lease and the executed and acknowledged subordination, non-disturbance and attornment agreements for each Lease, each in the form attached to the Lease made as of November 3, 

 

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2004, between Commerce Center Park I, LLC, a Delaware limited liability company, as landlord, and Sweetheart Cup Company Inc., as tenant, Purchaser shall deliver to Escrow Agent, by federal funds wire transfer, a cash deposit in immediately available funds in the additional amount of  Two Million Dollars ($2,000,000) (the “Additional Deposit”).  The Initial Deposit and Additional Deposit are collectively referred to herein as the “Deposit”.   If Purchaser shall fail to deposit the full Deposit with Escrow Agent within the time period provided for above, Seller may at any time prior to Escrow Agent’s receipt of the Deposit, terminate this Agreement by written notice to Purchaser and Escrow Agent as its sole and exclusive remedy, in which case this Agreement shall be null and void, and thereafter neither party shall have any further rights or obligations to the other hereunder, except for those which expressly survive the termination of this Agreement.  Prior to Purchaser’s making the Deposit, Seller, Purchaser and Escrow Agent shall enter into an escrow agreement in the form of Exhibit B attached hereto (the “Escrow Agreement”).  Escrow Agent shall hold the Deposit in accordance with this Agreement and the Escrow Agreement and shall disburse the Deposit to Seller at Closing.  The Deposit is non-refundable unless Purchaser terminates this Agreement in accordance with the express provisions of this Agreement.  Within one Business Day of the Additional Deposit Due Date, Purchaser shall enter into a rate lock agreement with its mortgage lender and shall within one Business Day following such entry provide a copy of such rate lock agreement to Seller.

 

2.1.2                The balance of the Purchase Price due from Purchaser at Closing (after crediting the Deposit and after application of prorations and adjustments provided for in this Agreement) shall be paid by Purchaser to Escrow Agent by federal funds wire transfer in immediately available funds no later than 10:00 a.m. (Chicago, Illinois time) on the Closing Date and disbursed to Seller at Closing in accordance with Section 8.3.2 hereof and the Escrow Agreement.

 

ARTICLE 3
 TITLE AND SURVEY.

 

3.1                            State of Title to be Conveyed.  Title to the Property shall be conveyed to Purchaser free from all liens, encumbrances,  encroachments and other exceptions to title except (i) those shown on the Title Commitment or the Survey (as such terms are defined in Section 3.2 below), (ii) the Lease and Licenses, (iii) matters caused by Purchaser or the activities of Purchaser or its agents, employees, consultants, contractors and representatives on the Property, (iv) real estate taxes, sewer rents and taxes, water rates and charges, business improvement district taxes and assessments and any other governmental taxes, charges or assessments levied or assessed against the Property, including any so-called payments in lieu of taxes, in each case which are a lien but not yet due and payable, subject to proration in accordance with Section 8.5.4 below, (v) applicable zoning and building ordinances and land use regulations and any and all other present and future laws, rules, regulations, statutes, ordinances, orders or other legal requirements affecting the Property, and (vi) any additional exceptions to title to which Purchaser has no right to object or that Purchaser has elected to close over as described in Section 3.2 (collectively, the “Permitted Exceptions”).

 

3.2                            Title Commitment and Survey3.2.1  .  Seller has provided to Purchaser a commitment (the “Title Commitment”) for an ALTA Owner’s Title Insurance Policy (the “Title Policy”) 

 

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proposing to insure Purchaser and committing to insure the Land and Improvements in the amount of the Purchase Price, issued by the Chicago office of Chicago Title Insurance Company (the “Title Company”), together with copies of all documents listed in the Title Commitment (collectively, the “Title Documents”).  Seller has also furnished to Purchaser a current plat of survey (the “Survey”) of the Premises.

 

3.2.1                Purchaser shall have until 5:00 p.m., Chicago, Illinois time on January 16, 2014 (the “Diligence Period”) to object to any matter contained in the Title Commitment, the Title Documents or the Survey (the “Title Objections”).  In the event Purchaser shall timely notify Seller of any Title Objections, Seller shall have the right, but not the obligation, except for Monetary Liens (as hereinafter defined) to cure any Title Objection(s) in its sole and absolute discretion.  Within five (5) Business Days after receipt of Purchaser’s notice of Title Objection(s), with the Closing Date automatically extended, if necessary, to allow for such response period, but in no event beyond the Designated Closing Date without Seller’s approval, Seller shall notify Purchaser in writing whether Seller elects to attempt to cure such Title Objection(s).  Failure of Seller to give such notice within said five (5) Business Day period shall be deemed an election by Seller not to cure such Title Objection(s).  If Seller elects or is deemed to have elected not to cure any Title Objection(s) specified in Purchaser’s notice, Purchaser shall have the following options, to be given by written notice to the Seller within two (2) Business Days after Purchaser’s receipt of Seller’s notice electing not to cure such Title Objection(s) (or, if Seller fails to deliver such notice, within two (2) Business Days after the day on which Seller was required to deliver such notice):  (i) to accept a conveyance of the Property subject to the Permitted Exceptions, specifically including any matters objected to by Purchaser which Seller has elected, or is deemed to have elected, not to cure (which such matter(s) shall thereafter be deemed to be a Permitted Exception), without reduction of the Purchase Price, or (ii) to terminate this Agreement by sending written notice thereof to Seller and Escrow Agent, and upon delivery of such notice of termination, this Agreement shall terminate and the Deposit shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except for those matters which expressly survive termination of this Agreement.  In addition, if Seller fails on or prior to Closing to cure or satisfy any Title Objection(s) that Seller has elected to cure or satisfy, then Purchaser may: (a) accept a conveyance of the Property subject to the Permitted Exceptions, specifically including such Title Objection(s) which Seller has failed to cure or satisfy (which such Title Objection(s) shall thereafter be deemed to be a Permitted Exception), without reduction of the Purchase Price, or (b) terminate this Agreement by sending written notice thereof to Seller and Escrow Agent, and upon delivery of such notice of termination, this Agreement shall terminate, the Deposit shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except for those matters which expressly survive termination of this Agreement. Notwithstanding the foregoing, any delinquent real property taxes, any deeds of trust, mortgages and, to the extent arising out of the acts of Seller, any mechanic’s liens (specifically excluding liens created by, through and under the tenant) (collectively, “Monetary Liens”), first discovered or disclosed after the Effective Date shall be automatically deemed unpermitted exceptions and Seller shall cause all such Monetary Liens to be removed from record or bonded over on or before the Closing Date.

 

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ARTICLE 4
 PURCHASER’S DUE DILIGENCE AND ACKNOWLEDGEMENT.

 

4.1                            Purchaser’s Due Diligence.  During the period commencing on the Effective Date and ending on or before the expiration of the Diligence Period, Purchaser shall have the right to perform and conduct such examinations and investigations of the Property as Purchaser may desire, which may include, without limitation, examination of all structural and mechanical aspects thereof, review of the Property Information (as hereinafter defined) and making copies of such Property Information, and determining the compliance of the Property with all applicable laws, rules, codes and regulations.  In connection with such examination, Seller shall continue to make available (at reasonable times and places and/or by providing Purchaser access to an online database) for Purchaser’s review the information described therein (collectively, the “Property Information”).  Purchaser acknowledges receipt of the following due diligence items:  Roof Report; Engineering Report; Phase I; Lease; and Tenant Financials.  Notwithstanding anything herein to the contrary, nothing herein shall authorize or permit Purchaser to conduct any environmental sampling, invasive or destructive tests (including, without limitation, tests for mold or radon, boring, drilling and sampling of soils or water) or subsurface or groundwater testing or air quality testing on or relating to the Property (“Environmental Testing”) without Seller’s prior written consent in each instance, which consent may be withheld or denied for any or no reason.

 

4.1.1                Access.  After the Effective  Date, Seller shall, upon reasonable notice and at reasonable times, make the Property available to Purchaser and its agents, employees, consultants and representatives for such inspections and tests as Purchaser deems appropriate (subject to the last sentence of Section 4.1), at Purchaser’s sole cost and expense.  Purchaser shall provide notice to Seller at least two (2) Business Days prior to any entry onto the Property by Purchaser or Purchaser’s agents, employees, consultants or representatives; in the event that Seller has consented to any Environmental Testing pursuant to the last sentence of Section 4.1 above, Purchaser shall provide notice to Seller at least three (3) Business Days prior to any entry to perform such permitted Environmental Testing.  Seller shall have the right to have a representative present during all or any of Purchaser’s inspections and tests.  Purchaser will use reasonable efforts to minimize interference with Seller’s operations at the Property and the rights of the tenant of the Property, and Purchaser will promptly restore any physical damage caused to the Property by Purchaser’s entry on the Property for inspection purposes at Purchaser’s sole cost and expense, reasonable wear and tear excepted.  Purchaser shall not alter or disturb the Property in any manner and Purchaser shall not permit any mechanics’ liens to be filed against all or any part of the Property.  In the event Purchaser discovers any matter during the course of its investigations and tests which may be reportable under applicable law, Purchaser acknowledges and agrees that it shall not undertake any such reporting (unless required by law), but shall notify Seller immediately of any such discovery.  Seller’s prior written consent shall be required prior to any interviews of the tenant of the Property by Purchaser or its agents, employees, consultants and representatives, and Seller shall have the right to have a representative present during all tenant interviews.

 

4.1.2                Indemnity.  Purchaser hereby agrees to indemnify, defend, and hold harmless Seller, its managers, members, affiliates, and their respective officers, directors, agents, employees, and representatives (collectively, the “Indemnified Parties”) from and against any 

 

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and all liens, claims, or damages of any kind or nature, including any demands, actions or causes of action, assessments, losses, costs, expenses, liabilities, interest and penalties, and reasonable attorneys’ fees suffered, incurred, or sustained by any of the Indemnified Parties caused by the entry on the Property by Purchaser or its agents, employees, consultants or representatives or by Purchaser’s investigations of the Property (“Claims”) unless such Claims arise or are caused by Seller’s gross negligence or willful misconduct.  Purchaser will promptly repair all damage to the Property arising from Purchaser’s inspections or tests, including any damage that may have been caused by Purchaser or its agents, employees, consultants or representatives in the conduct of the review, and shall promptly restore the Property substantially to its condition before such inspections and tests.  Notwithstanding anything set forth herein to the contrary, the indemnification and restoration obligations of Purchaser in this Section 4.1.2 shall survive Closing or the earlier termination, for any reason, of this Agreement.  Purchaser shall provide to Seller prior to its or its agents’, employees’, consultants’ or representatives’ entry on the Property certificates of liability insurance insuring Purchaser and Seller in an amount not less than Two Million Dollars ($2,000,000.00).

 

4.1.3                Termination Rights.

 

4.1.3.1                            If, on or before the Additional Deposit Due Date, Purchaser gives Seller written notification (the “Termination Notice”) that Purchaser elects not to consummate the purchase of all of the Property in accordance with the terms of this Agreement, this Agreement shall terminate, in which event Purchaser shall be entitled to receive the return of the Deposit and neither party shall have any further liabilities or obligations to the other party, except for those expressly stated to survive the termination of this Agreement.  If Purchaser elects not to give the Termination Notice prior to the expiration of the Diligence Period, this Agreement shall remain in full force and effect.

 

4.1.3.2                            If Purchaser determines at any time following the Additional Deposit Due Date, but prior to the Closing, that its prospective mortgage lender is unable or unwilling to close on a mortgage loan to Purchaser to finance the purchase of the Property on terms satisfactory to Purchaser in Purchaser’s sole and absolute discretion, then, upon Purchaser giving Seller written notification (also a “Termination Notice”) that Purchaser elects not to consummate the purchase of all of the Property in accordance with the terms of this Agreement, this Agreement shall terminate, in which event (i) Purchaser shall be entitled to receive the return of the Deposit, less Two Hundred Thousand ($200,000) Dollars, and (ii) Seller shall be entitled to receive $200,000 of the Deposit and neither party shall have any further liabilities or obligations to the other party, except for those expressly stated to survive the termination of this Agreement.

 

4.2                            As Is, Where Is4.2.1        Express Representations.  Except as provided in the express representations and warranties of Seller set forth in Sections 5.1 and 11.1 of this Agreement and except as may be expressly set forth in the documents executed and delivered by Seller at Closing, and subject to the limitations set forth in Sections 5.4 and 10.2 herein (collectively, the “Express Representations”), Seller does not, by the execution and delivery of this Agreement, and Seller shall not, by the execution and delivery of any document or instrument executed and delivered in connection with Closing, make any representation or warranty, express or implied, 

 

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of any kind or nature whatsoever, with respect to the Property, and all such representations and warranties are hereby disclaimed.

 

4.2.1                Disclaimed Matters.  Without limiting the generality of the foregoing, other than the Express Representations, Seller makes, and shall make, no express or implied warranty as to matters of zoning, acreage, construction, development, building square footage or size, tax consequences, physical or environmental condition (including, without limitation, laws, rules, regulations, orders and requirements pertaining to the use, handling, generation, treatment, storage or disposal of any toxic or hazardous waste or toxic, hazardous or regulated substance), valuation, governmental approvals, governmental regulations or any other matter or thing relating to or affecting the Property (collectively, the “Disclaimed Matters”).

 

4.2.2                No person acting on behalf of Seller is authorized to make, and by execution hereof, Purchaser acknowledges that no person has made, any representation, agreement, statement, warranty, guarantee or promise regarding the Property or the transaction contemplated herein or the Disclaimed Matters except for the Express Representations.  No representation, warranty, agreement, statement, guarantee or promise, if any, made by any person acting on behalf of Seller other than the Express Representations will be valid or binding on Seller.

 

PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (I) VALUE; (II) THE INCOME TO BE DERIVED FROM THE PROPERTY; (III) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH MAY BE CONDUCTED THEREON, INCLUDING, WITHOUT LIMITATION, THE POSSIBILITIES, IF ANY, FOR FUTURE DEVELOPMENT OF THE PROPERTY; (IV) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (V) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY; (VI) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE INDOOR AND OUTDOOR ENVIRONMENT AIR QUALITY, WATER, SOIL AND GEOLOGY; (VII) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY; (VIII) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY; (IX) COMPLIANCE WITH ANY FEDERAL, STATE, AND LOCAL ENVIRONMENTAL PROTECTION, POLLUTION, HEALTH AND SAFETY OR LAND USE LAWS, RULES, REGULATIONS, ORDINANCES, ORDERS, REQUIREMENTS OR COMMON LAW, INCLUDING, WITHOUT LIMITATION, TITLE III OF THE AMERICANS WITH DISABILITIES ACT OF 1990, AS AMENDED, THE FEDERAL WATER POLLUTION CONTROL ACT, AS AMENDED, THE RESOURCE CONSERVATION AND RECOVERY ACT, AS AMENDED, THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980, AS 

 

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AMENDED, THE SAFE DRINKING WATER ACT, AS AMENDED, THE HAZARDOUS MATERIALS TRANSPORTATION ACT, AS AMENDED, THE OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970, AS AMENDED, THE TOXIC SUBSTANCE CONTROL ACT, AS AMENDED, AND REGULATIONS PROMULGATED UNDER ANY OF THE FOREGOING AND ANALOGOUS STATE STATUTES AND REGULATIONS; (X) THE PRESENCE OR ABSENCE OF HAZARDOUS OR TOXIC MATERIALS, SUBSTANCES OR WASTE AT, ON, UNDER, OR ADJACENT TO THE PROPERTY (SUBSECTIONS IX AND X HEREIN COLLECTIVELY REFERRED TO AS, “ENVIRONMENTAL MATTERS”); (XI) THE CONTENT, COMPLETENESS OR ACCURACY OF THE PROPERTY INFORMATION, THE SURVEY OR THE COMMITMENT; (XII) THE CONFORMITY OF THE IMPROVEMENTS TO ANY PLANS OR SPECIFICATIONS FOR THE PROPERTY INCLUDING ANY PLANS AND SPECIFICATIONS THAT MAY HAVE BEEN OR MAY BE PROVIDED TO PURCHASER; (XIII) THE CONFORMITY OF THE PROPERTY TO PAST, CURRENT OR FUTURE APPLICABLE ZONING OR BUILDING REQUIREMENTS; (XIV) DEFICIENCY OF ANY UNDERSHORING, (XV) DEFICIENCY OF ANY DRAINAGE; (XVI) THE FACT THAT ALL OR A PORTION OF THE PROPERTY MAY BE LOCATED ON OR NEAR AN EARTHQUAKE FAULT LINE; (XVII) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY; OR (XVIII) ANY OTHER MATTER.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT, HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY AND REVIEW INFORMATION AND DOCUMENTATION AFFECTING THE PROPERTY, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND REVIEW OF SUCH INFORMATION AND DOCUMENTATION, AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER, EXCEPT AS EXPRESSLY SET FORTH IN THE EXPRESS REPRESENTATIONS. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION MADE AVAILABLE TO PURCHASER OR PROVIDED OR TO BE PROVIDED BY OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION, EXCEPT AS EXPRESSLY SET FORTH IN THE EXPRESS REPRESENTATIONS.  PURCHASER HEREBY ACKNOWLEDGES AND AGREES THAT PURCHASER SHALL NOT BE ENTITLED TO RELY ON ANY REPORTS OR OTHER PROPERTY INFORMATION SUPPLIED BY SELLER TO PURCHASER, EXCEPT AS SET FORTH IN THE EXPRESS REPRESENTATIONS.   PURCHASER AGREES TO FULLY AND IRREVOCABLY RELEASE SELLER FROM ANY AND ALL CLAIMS THAT PURCHASER MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST SELLER FOR ANY COSTS, LOSS, LIABILITY, DAMAGE, EXPENSE, DEMAND, ACTION OR CAUSE OF ACTION ARISING FROM SUCH INFORMATION OR DOCUMENTATION, EXCEPT TO THE EXTENT ARISING OUT OF A BREACH BY SELLER OF A REPRESENTATION OR WARRANTY (SUBJECT TO THE LIMITATIONS SET FORTH IN SECTIONS 5.4 AND 10.2 HEREIN) MADE IN THE EXPRESS REPRESENTATIONS. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, AGENT, 

 

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EMPLOYEE, SERVANT OR OTHER PERSON TO THE EXTENT NOT EXPRESSLY SET FORTH IN THE EXPRESS REPRESENTATIONS.  PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS IS” CONDITION AND BASIS WITH ALL FAULTS AND DEFECTS, AND THAT SELLER HAS NO OBLIGATIONS TO MAKE REPAIRS, REPLACEMENTS OR IMPROVEMENTS EXCEPT AS MAY OTHERWISE BE EXPRESSLY STATED HEREIN.  PURCHASER REPRESENTS, WARRANTS, AND COVENANTS TO SELLER, WHICH REPRESENTATION, WARRANTY, AND COVENANT TO SELLER SHALL SURVIVE THE CLOSING AND NOT BE MERGED WITH THE DEED, THAT, EXCEPT FOR SELLER’S EXPRESS REPRESENTATIONS, PURCHASER IS RELYING SOLELY UPON PURCHASER’S OWN INVESTIGATION OF THE PROPERTY.

 

BY INITIALING BELOW, PURCHASER ACKNOWLEDGES THAT (i) THIS SECTION 4.2 HAS BEEN READ AND FULLY UNDERSTOOD, (ii) PURCHASER HAS HAD THE OPPORTUNITY TO ASK QUESTIONS OF ITS COUNSEL ABOUT ITS MEANING AND SIGNIFICANCE, AND (iii) PURCHASER HAS ACCEPTED AND AGREED TO THE TERMS SET FORTH IN THIS SECTION 4.2.

 

	
 
    	
 
    	
 
    
	
 
    	
PURCHASER’S INITIALS
    	
 
    

 

4.2.3                Waiver.  Without in any way limiting any provision of this Section 4.2, Purchaser specifically acknowledges and agrees that, except with respect to the Express Representations and the obligations of Seller set forth in Section 6.1 of this Agreement, Purchaser hereby waives, releases and discharges any claim it has, might have had, or may have against Seller with respect to (a) the Disclaimed Matters, (b) subject to Article 9 of this Agreement, the condition of the Property as of the Closing Date, (c) the past, present or future condition or compliance of the Property with regard to any federal, state or local law, statute, ordinance, rule, regulation, order or determination of any governmental authority or agency affecting the Property, including without limitation those pertaining to Environmental Matters, or (d) any other state of facts that exists with respect to the Property or any of the Property Information.

 

ARTICLE 5
 REPRESENTATIONS AND WARRANTIES.

 

5.1                            Seller’s Representations and Warranties.  Seller represents to Purchaser, as of the Effective Date, as follows:

 

5.1.1                Organization.  Seller is duly formed and validly existing under the laws of the jurisdiction of its organization and is qualified to transact business in the jurisdiction where the Property is located.

 

5.1.2                Authority/Consent.  Seller possesses all requisite power and authority, and has taken all actions required by its organizational documents and applicable law, to execute and deliver this Agreement and will, by Closing, have taken all actions required by its 

 

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organizational documents and applicable law to consummate the transactions contemplated by this Agreement.

 

5.1.3                Litigation.  To No action, suit or other proceeding (including, but not limited to, any condemnation action) is pending or, to Seller’s knowledge, has been threatened in writing that concerns or involves the Property which would, if determined adversely to Seller, materially and adversely affect the use or value of the Property or affect Seller’s ability to fulfill its obligations under this Agreement.

 

5.1.4                Bankruptcy.  No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is pending, or, to Seller’s knowledge, has been threatened in writing, against Seller.

 

5.1.5                Contracts.  There are no contracts or agreements to which Seller is a party relating to the Property that are currently in effect.

 

5.1.6                Lease.  To Seller’s knowledge, except for the Lease and Licenses referenced on Schedule 1.4 and leases, licenses, or other occupancy agreements which may be entered into by Seller pursuant to Section 6.1.1 hereof, there are no leases, rental agreements, license agreements or other occupancy agreements currently in effect which will affect the Property after Closing.    To Seller’s knowledge, no default (or facts that with the passage of time or the giving of notice would constitute a default) exists under any Leases and all rent is current.

 

5.1.7                Violations of Law.  To Seller’s knowledge, except as may be included in the Property Information, there exists no material violation of any federal, state, county or municipal laws, ordinances, orders, regulations and requirements affecting the Property or any portion thereof (including the conduct of business operations thereon) which violation remains unresolved and which violation would materially and adversely affect the Property or the operation thereof.

 

5.1.8                Foreign Person.  Seller is not a “foreign person,” “foreign trust” or “foreign corporation” (as those terms are defined in the Internal Revenue Code of 1986, as amended, and related Income Tax Regulations).

 

5.1.9                No Conflicts.  The execution and delivery of this Agreement by Seller and the consummation by Seller of the transactions contemplated hereby will not (i) violate any judgment, order, injunction, or decree to which Seller or the Property is subject, or (ii) conflict with, result in a breach of, or constitute a default under the organizational documents of Seller or any lease, mortgage, loan agreement, covenant, or other agreement or instrument to which Seller is a party or by which Seller or the Property is bound.

 

5.1.10        OFAC.  Neither Seller nor, to Seller’s knowledge, any of its Managers or Members nor any of their respective  employees, officers or directors, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control of the Department of the Treasury (“OFAC”), (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any similar statute, executive order (including the September 24, 2001, Executive Order Blocking Property and 

 

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Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) or other similar governmental action.

 

5.1.11        Documents; Reports.  To Seller’s knowledge, Seller has not modified, altered or removed any financial statements with respect to the Tenant provided by or on behalf of Seller to Purchaser, provided that Purchaser acknowledges that no representation is made by Seller with respect to the accuracy of the complete and unmodified contents of any of the foregoing.

 

5.2                            Purchaser’s Representations and Warranties.  Purchaser represents to Seller, as of the Effective Date, as follows:

 

5.2.1                Organization.  Purchaser is duly formed, validly existing and in good standing under the laws of the jurisdiction of its organization and, as of the Closing Date, will be qualified to transact business in the jurisdiction where the Property is located.

 

5.2.2                Authority/Consent. Purchaser possesses all requisite power and authority, has taken all actions required by its organizational documents and applicable law, and has obtained all necessary consents, to execute and deliver this Agreement and will, by Closing, have taken all actions required by its organizational documents and applicable law to consummate the transactions contemplated in this Agreement.

 

5.2.3                OFAC.  Neither Purchaser nor any of its equity owners, nor to Purchaser’s knowledge any of their respective employees, officers or directors, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of OFAC (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any similar statute, executive order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) or other similar governmental action.

 

5.2.4                No Conflicts.  The execution and delivery of this Agreement by Purchaser and the consummation by Purchaser of the transactions contemplated hereby will not: (i) violate any judgment, order, injunction, or decree to which Purchaser is subject, or (ii) conflict with, result in a breach of, or constitute a default under the organizational documents of Purchaser or any lease, mortgage, loan agreement, covenant, or other agreement or instrument to which Purchaser is a party or by which Purchaser is bound.

 

5.2.5                Bankruptcy.  No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is pending, or, to Purchaser’s knowledge, has been threatened in writing, against Purchaser.

 

5.3                            Knowledge.  For purposes of this Agreement, the phrase “to Seller’s knowledge” means the present, actual knowledge, without independent investigation or inquiry, of Scott M. Stahr (“Seller’s Representative”).  There shall be no personal liability on the part of Seller’s Representative arising out of any representations or warranties made herein or otherwise.

 

5.4                            Survival.  All of the representations and warranties set forth in this Article 5, as modified pursuant to Section 5.3, shall survive the Closing for a period of six (6) months 

 

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(“Survival Period”), subject to the provisions of Article 10 of this Agreement.  Purchaser shall provide Seller with written notice (a “Notice of Breach”) of any alleged breach or failure of any representation or warranty made by Seller and specifying the nature thereof within five (5) Business Days after Purchaser’s discovery of such alleged breach or failure (as defined in Section 3.2.1).  Purchaser shall commence any action, suit, or proceeding with respect to any breach or failure that is the subject of the Notice of Breach, if at all, on or before the expiration of the Survival Period (the “Suit Deadline”).  Seller acknowledges and agrees that the resolution of such action, suit, or proceeding may not occur until after the expiration of the Survival Period and the Survival Period shall be deemed to be tolled with respect to (and only with respect to) any alleged breach or failure of a representation or warranty of which Seller receives a Notice of Breach before the expiration of the Survival Period, provided Purchaser files an action, suit or proceeding with respect thereto prior to the Suit Deadline.  Notwithstanding the foregoing to the contrary, Seller shall have no liability in connection with this Agreement by reason of any inaccuracy of a representation or warranty if, and to the extent that, such inaccuracy is disclosed to Purchaser or otherwise included in the Property Information at the time of the Closing, and Purchaser elects, nevertheless, to consummate the transaction contemplated hereby.

 

ARTICLE 6
 COVENANTS OF SELLER PRIOR TO CLOSING.

 

6.1                            Operation of Property.  From the Effective Date until the Closing, Seller shall operate the Property in accordance with the terms of this Section 6.1.

 

6.1.1                From the Effective Date until the Closing, Seller shall operate the Property in the ordinary course of business and to the standard that Seller has operated the Property to date, but shall not take any of the following actions without the prior written consent of Purchaser, which consent  shall not be unreasonably withheld, delayed or conditioned and which consent shall be deemed granted in the event that Purchaser fails to respond to a written request for its consent within three (3) Business Days:  (a) make or permit to be made any material alterations to or upon the Property (provided, however, Purchaser’s consent shall not be required for repairs or other work of an emergency nature, as required by law, or under any Lease, provided that Seller shall notify Purchaser of such work as soon as practicable), (b) enter into any contracts for the provision of services and/or supplies to the Property which are not terminable without premium or penalty by Purchaser upon no more than thirty (30) days’ prior written notice, or amend or modify any of the Contracts in any material respect, unless such Contract, as amended, may be terminated without premium or penalty by Purchaser upon no more than thirty (30) days’ prior written notice, (c) enter into any leases, licenses, or other occupancy agreements with respect to the Property or any part thereof, or extend (except pursuant to a provision of the existing Lease or License), terminate or cancel (except in the event of a tenant default), or otherwise amend (except pursuant to a provision of the existing Lease or License) the Lease or Licenses,  (d) remove or permit to be removed any Personal Property except as necessary for repairs or replacements of worn out or obsolete items, or (e) grant any easements or title encumbrances that will affect the Property after the Closing Date.

 

6.1.2                Notwithstanding the foregoing, Seller shall have no obligation to Purchaser to make or perform any capital repairs or replacements unless required to do so to meet its obligations as landlord under the Lease or by applicable law.

 

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6.2                            Notices.  Promptly after receipt, Seller shall provide Purchaser with true and complete copies of any written notices that Seller receives from any governmental authority with respect to (i) any special assessments or proposed increases in the valuation of the Property; (ii) any condemnation or eminent domain proceedings affecting the Property or any portion thereof; or (iii) any material violation of any environmental law or any zoning, health, fire, safety or other law, regulation or code applicable to the Property.  In addition, Seller shall deliver or cause to be delivered to Purchaser, promptly upon the giving or receipt thereof by Seller, true and complete copies of any written notices of default given or received by Seller under the Lease or Licenses.

 

6.3                            Litigation.  Seller will advise Purchaser promptly of any litigation, arbitration proceeding or administrative hearing which is instituted after the Effective Date and which concerns or affects the Property or Seller’s ability to fulfill its obligations under this Agreement, other than any such matters that are covered by Seller’s insurance.

 

6.4                            Tenant Estoppel.  Seller shall request from the existing tenant under the Lease an estoppel certificate in substantially the form of Exhibit C-1 attached hereto (which is the form prescribed in the existing tenant’s Lease); Lease (the “Tenant Estoppel”) together with a subordination, non-disturbance and attornment agreement in a form to be provided by Purchaser’s mortgage lender.

 

ARTICLE 7
 CONDITIONS PRECEDENT TO CLOSING.

 

7.1                            Conditions Precedent to Purchaser’s Obligation to Close.  Purchaser’s obligation to purchase the Property is subject to satisfaction on or before the Closing Date of the following conditions, any of which may be waived in writing by Purchaser in Purchaser’s sole and absolute subjective discretion:

 

7.1.1                Tenant Estoppel.  Seller shall have obtained and delivered to Purchaser, on or before the Closing Date, an executed Tenant Estoppels for each Lease from the existing tenant, with such Tenant Estoppels not indicating any material defaults under the applicable Lease or any material inconsistencies with respect to the facts or information set forth in the applicable Lease, except to the extent the same have been disclosed by any of the Seller’s representations and warranties under this Agreement (the “Required Estoppels”), together with the executed and acknowledged subordination, non-disturbance and attornment agreements for each Lease referenced in Section 2.1.1 above.

 

7.1.2                Delivery of Closing Documents.  Seller shall have delivered each of the Closing Documents required to be delivered under Section 8.2.1 of this Agreement.

 

7.1.3                Reliance Letters.  Seller shall have provided Purchaser with reliance letters satisfactory to both Purchaser and its mortgage lender with respect to the environmental report, appraisal and property condition report previously delivered to Purchaser and shall have caused the surveyor to have recertified the survey previously delivered to Purchaser to Purchaser and its mortgage lender (in addition to the originally certified parties).  The cost, if any, of such reliance letters / recertification shall be borne by Purchaser.

 

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7.1.4                Covenants, Representations and Warranties.  Seller shall not be in material breach of any of the covenants, representations and warranties it has made in this Agreement.  In addition, there shall not exist any facts or circumstances that would make any of the Seller’s Express Representations untrue in any material respect as of the Closing Date.

 

7.2                            Conditions Precedent to Seller’s Obligation to Close.  Seller’s obligation to sell the Property is subject to satisfaction, on or before the Closing Date of the following conditions, any of which may be waived in writing by Seller, in Seller’s sole and absolute subjective discretion:

 

7.2.1                Covenants.  Purchaser shall have performed and observed, in all material respects, all covenants of Purchaser under this Agreement.

 

7.2.2                Representations and Warranties.  All representations and warranties of Purchaser set forth in this Agreement shall be true and correct in all material respects as if made on the Closing Date

 

7.2.3                Delivery of Closing Documents and Payment of Purchase Price.  Purchaser shall have delivered each of the Closing Documents required to be delivered under Section 8.3.1 of this Agreement and shall have paid into escrow the balance due of the Purchase Price.

 

7.3                            Failure of a Condition General.  If any condition precedent to Purchaser’s obligation to close the transactions contemplated by this Agreement, as set forth in Section 7.1 of this Agreement, has not been satisfied on or before the Closing Date, then Purchaser shall give notice to Seller of the condition or conditions that Purchaser asserts are not satisfied.  If the conditions specified in such notice are not satisfied within ten (10) Business Days after receipt of such notice (with the Closing Date automatically being extended to accommodate such ten (10) Business Day period, but in no event beyond the Designated Closing Date without Seller’s approval), then Purchaser may terminate this Agreement by written notice to Seller and Escrow Agent, whereupon neither party shall have any further rights or obligations hereunder (other than any obligations of either party that expressly survive termination) and the Deposit shall be returned to Purchaser.  Notwithstanding anything contained herein to the contrary, if any of the conditions precedent to Purchaser’s obligation to close, as set forth in Section 7.1 of this Agreement, are not satisfied within the ten (10) Business Day period specified above and the same are reasonably susceptible of being cured, Seller shall have the right to extend such period in which to satisfy the unsatisfied condition for a period of up to thirty (30) additional days, by giving written notice thereof to the Purchaser and Escrow Agent within the initial ten (10) Business Day period referenced above.  Purchaser shall have the right to waive the unsatisfied condition or conditions by written notice to Seller and Escrow Agent given within five (5) Business Days after expiration of the applicable satisfaction period without satisfaction having occurred, in which event the Closing Date shall be the date that is five (5) Business Days after Seller’s receipt of Purchaser’s waiver notice.  If the Closing Date is extended pursuant to this paragraph, then the Closing Date shall be the date that is the earlier to occur of five (5) Business Days after (a) the date that the unsatisfied condition has been satisfied, or (b) Seller’s receipt of Purchaser’s waiver notice.  It is understood and agreed that the failure of any condition set forth in Section 7.1 hereof that is not reasonably susceptible of being cured within the time 

 

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allotted shall not constitute a default, breach of a covenant, or other failure to perform by Seller hereunder unless such failed condition was caused by Seller’s willful and intentional actions in violation of its covenants set forth in Section 6.1.1 hereof.

 

If any condition precedent to Seller’s obligation to close the transactions contemplated by this Agreement, as set forth in Section 7.2 of this Agreement, has not been satisfied on or before the Closing Date, then Seller shall give notice to Purchaser of the condition or conditions that Seller asserts are not satisfied.  If the conditions specified in such notice are not satisfied within ten (10) Business Days after receipt of such notice (with the Closing Date automatically being extended to accommodate such ten (10) Business Day period, but in no event beyond the Designated Closing Date without Seller’s approval), then Seller may terminate this Agreement by written notice to Purchaser and Escrow Agent, whereupon neither party shall have any further rights or obligations hereunder (other than any obligations of either party that expressly survive termination) and the Deposit shall be paid to Seller.  Seller shall have the right to waive the unsatisfied condition or conditions by written notice to Purchaser and Escrow Agent given within five (5) Business Days after expiration of the satisfaction period without satisfaction having occurred, in which event the Closing Date shall be the date that is five (5) Business Days after Purchaser’s receipt of Seller’s waiver notice.  Notwithstanding the foregoing or anything set forth herein to the contrary, in no event shall the Closing Date be extended with respect to Purchaser’s failure to fund into escrow the balance of the Purchase Price due at Closing as required under this Agreement, unless expressly agreed by Seller in writing in Seller’s sole and absolute discretion.

 

7.3.1                Waiver.  If the transaction contemplated by this Agreement closes, the parties shall be deemed to have waived any and all unmet or unsatisfied conditions subject to the provisions of Sections 5.4 and 10.2 hereof.

 

ARTICLE 8
 CLOSING.

 

8.1                            Closing Date.  The consummation of the transactions contemplated hereby (the “Closing”) shall be conducted by delivery of documents and funds in escrow to Escrow Agent on February 18, 2014 (the “Designated Closing Date”); TIME BEING OF THE ESSENCE, provided, however, at Purchaser’s election the Designated Closing Date may be changed to an earlier date in order to accommodate Purchaser’s rate lock provided that Purchaser provides Seller at least three (3) Business Days prior notice of such earlier date.  The date that the Closing occurs hereunder, as such date may be extended in accordance with this Agreement, is referred to herein as the “Closing Date”.  Purchaser and Seller agree to finalize and execute all documents necessary for the consummation of the transaction contemplated herein, including, but not limited to, the Settlement Statement (as defined in Section 8.2.1.7), and to deliver all such documents to the Escrow Agent in escrow not later than 5:00 p.m. (Chicago, Illinois time) on the Business Day immediately preceding the Closing Date to ensure the orderly and timely close of escrow and disbursement of all funds necessary for Closing by not later than 1:00 p.m. (Chicago, Illinois time) on the Closing Date.  Notwithstanding the foregoing or anything herein to the contrary, in no event may the Closing Date be extended beyond the Designated Closing Date for any reason, unless pursuant to the exercise of a right of Seller hereunder or otherwise 

 

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with the express written agreement of Seller, in Seller’s sole and absolute discretion, TIME BEING OF THE ESSENCE.

 

8.2                            Seller’s Obligations at the Closing.  At the Closing, Seller will do, or cause to be done, the following:

 

8.2.1                Closing Documents.  Seller shall execute (as applicable), acknowledge (if necessary) and deliver originals of the following documents:

 

8.2.1.1                            Special Warranty Deed substantially in the form of Exhibit D hereto (the “Deed”);

 

8.2.1.2                            Bill of Sale, substantially in the form of Exhibit E hereto;

 

8.2.1.3                            Assignment and Assumption Agreement with respect to the Lease and Licenses, substantially in the form of Exhibit F hereto;

 

8.2.1.4                            Certificate of Non-Foreign Status, substantially in the form of Exhibit G hereto;

 

8.2.1.5                            Letters to the existing tenant under the Lease and each licensee under the Licenses, substantially in the form of Exhibit H hereto, notifying tenants and licensees of the conveyance of the Property to Purchaser and advising them that, following the Closing Date, all future payments of rent are to be made to Purchaser or at Purchaser’s direction;

 

8.2.1.6                            Settlement statement prepared by Escrow Agent showing all of the payments, adjustments and prorations provided for in Section 8.5 of this Agreement or otherwise agreed upon by Seller and Purchaser (the “Settlement Statement”);

 

8.2.1.7                            Such transfer tax forms as may be required as a condition to the recordation of the Deed or as may be required in connection with the transfer of the Property;

 

8.2.1.8                            An Owner’s Affidavit in the form of Exhibit I attached hereto (the “Owner’s Affidavit”).  Seller shall also deliver to the Title Company and Purchaser such evidence as may be reasonably required by the Title Company with respect to the authority of the person(s) executing the Deed and the other documents required to be executed by Seller on behalf of Seller; and

 

8.2.1.9                            The Required Estoppels executed by the Tenant.

 

 

8.2.2                Original Property Information Documents.  To the extend in Seller’s possession, Seller will deliver to Purchaser, or make available to Purchaser at the Property or at the office of Seller’s attorney, originals of the Lease and any Licenses.

 

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8.2.3                Costs.  Seller will pay all costs allocated to Seller pursuant to Section 8.5.1 of this Agreement.

 

8.3                            Purchaser’s Obligations at the Closing.  At the Closing, Purchaser will do, or cause to be done, the following:

 

8.3.1                Closing Documents.  At Closing, Purchaser shall execute, acknowledge (if necessary) and deliver originals of the following documents:

 

8.3.1.1                            Assignment and Assumption Agreement with respect to the Lease and Licenses in the form of Exhibit F-1 hereto;

 

8.3.1.2                            Settlement Statement;

 

8.3.1.3                            Such transfer tax forms as may be required as a condition to the recordation of the Deed or as may be required in connection with the transfer of the Property; and

 

8.3.1.4                            Such evidence as may be reasonably required by the Title Company with respect to the authority of the person(s) executing the documents required to be executed by Purchaser on behalf of Purchaser.

 

8.3.2                Payment of Consideration.  Purchaser shall pay to Escrow Agent a sum equal to the remaining portion of the Purchase Price owed by Purchaser in accordance with Section 2.1.3 of this Agreement.  As part of the Closing under this Agreement, in accordance with this Agreement and the Escrow Agreement, Escrow Agent shall disburse, via federal funds wire transfer of immediately available funds, to an account designated by Seller in a written notice to Escrow Agent delivered prior to the Closing Date, with such notice to contain all information necessary for Escrow Agent to effectuate such transfer, the amount due to Seller as shown on the Settlement Statement.

 

8.3.3                Costs.  Purchaser will pay all costs allocated to Purchaser pursuant to Section 8.5.1 of this Agreement.

 

8.4                            Escrow.  The delivery of the documents and the payment of the sums to be delivered and paid at the Closing shall be accomplished through an escrow with Escrow Agent and in accordance with this Agreement and the Escrow Agreement.

 

8.5                            Costs and Adjustments at Closing.  Seller shall prepare and submit to Purchaser for Purchaser’s review, at least two (2) Business Days prior to the Closing Date, a draft proration statement setting forth the prorations and adjustments contemplated by this Agreement.  Once Seller and Purchaser have agreed on such proration statement, Seller and Purchaser shall submit the same to the Escrow Agent and the Escrow Agent shall prepare the Settlement Statement and submit the same to Seller and Purchaser for their approval on or prior to the Closing Date.

 

8.5.1                Transaction Expenses.   Any closing or escrow fees of Escrow Agent (except for any closing or escrow fees associated with Purchaser’s financing of the purchase of the Property) shall be paid fifty percent (50%) by Seller and fifty percent (50%) by Purchaser.  

 

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Seller shall pay (i) all costs and fees for Seller’s representatives and consultants (except as set forth in this Section 8.5.1 below), (ii) all fees and costs associated with delivering title to the Property in the condition required by Article 3 of this Agreement, (iii) State of Illinois, Will County, and University Park transfer taxes for the Deed, (iv) the cost of the Survey, and (v) all costs and fees for title examination, title insurance and related title company charges (including all such costs and fees associated with the issuance of the Title Commitment and the Title Policy (exclusive of the cost of extended coverage and any endorsements desired by Purchaser)).  Purchaser shall pay (or reimburse Seller for) (i) all costs associated with Purchaser’s due diligence studies and investigations of the Property, (ii) all closing, escrow and other costs associated with Purchaser’s financing of its purchase of the Property, including, without limitation, all recording fees and taxes in connection with any security documents, (iii) all recording fees in connection with this transaction, and (iv) all costs associated with any state and local recordation tax, documentary and other taxes and stamps, and any recording fees or mortgage taxes associated with any new mortgage or deed of trust related to Purchaser’s financing of its purchase of the Property.  Subject to Section 14.13 below, Seller and Purchaser shall each pay its respective attorneys’ fees.

 

8.5.2                Rents.  All rents, percentage rents, common area charges, operating expenses, parking charges and other costs or charges paid by the existing tenant under the Lease and licensees under the Licenses (collectively, “Rents”) shall be prorated as of the Apportionment Time (as defined below), to the extent actually collected by Seller prior to the Closing Date.  Seller shall remit to Purchaser any Rents received by Seller subsequent to Closing which are attributable to periods from and after Closing within two (2) Business Days from Seller’s receipt of such Rents, together with appropriate supporting documentation.  In the event that the scheduled date of Closing is during the last five (5) business days of a calendar month, the Closing shall be adjourned until the Rents for the next calendar month have been paid (and such Rents shall then be correspondingly pro-rated so the Rents for such following calendar month are credited to the Purchaser).  For the avoidance of doubt, as contemplated by the representation set forth in Section 5.1.6, in no event shall Purchaser be required to close if all Rents are not current.  As used herein, the term “Apportionment Time” shall mean 11:59 p.m. Chicago, Illinois time on the date immediately prior to the Closing Date.

 

8.5.3                Real Estate Taxes.  The 2012 real estate taxes due and payable in 2013 have been paid in full.  Under the Lease, the existing tenant is required to pay the 2013 real estate taxes due and payable in 2014 and real estate taxes due and payable in subsequent years.  Tenant pays the taxing authorities directly.  Accordingly, the real estate taxes shall not be prorated at Closing.

 

8.5.4                Utilities.  The existing tenant is responsible for payment of all water, sewer, electric, fuel (if any) and other utility charges.  Accordingly, the utility charges shall not be prorated at Closing.

 

8.5.5                Insurance Policies.  Premiums on insurance policies will not be adjusted.  As of the Closing Date, Seller will terminate its insurance coverage with respect to the Property and Purchaser will affect its own insurance coverage.

 

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8.5.6                Survival.  The provisions of this Section 8.5 shall survive Closing for a period of four (4) months from the Closing Date.

 

ARTICLE 9
 DAMAGE AND CONDEMNATION

 

9.1                            Damage.  If, prior to the Closing, all or any portion of the Property is damaged by fire or any other cause whatsoever, Seller shall promptly give Purchaser written notice of such damage.  Risk of loss for damage to all or any part of the Property by fire or other casualty from the Effective Date through the Closing Date will be on Seller.  Seller covenants and agrees that it shall cause the insurance described in the insurance certificates previously delivered to Purchaser to remain unmodified and in full force and effect through Closing.  Notwithstanding the foregoing, the following provisions set forth the rights and obligations of the parties with respect to any damage to the Property from the Effective Date through the Closing Date.

 

9.1.1                Minor Damage.  If the cost for repairing such damage is equal to or less than Seven Hundred Thousand Dollars ($700,000.00) (as determined by Seller’s independent insurer), then Purchaser shall have the right at Closing to receive a credit for the amount of the deductible plus all insurance proceeds received by Seller prior to the Closing as a result of such loss, or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property.

 

9.1.2                Major Damage.  If the cost for repairing such damage is greater than Seven Hundred Thousand Dollars ($700,000.00) (as determined by Seller’s independent insurer), then Purchaser shall have the option, exercisable by written notice delivered to Seller and Escrow Agent within five (5) Business Days after Seller’s notice of damage to Purchaser, either (i) to receive at the Closing a credit for the amount of the deductible plus all insurance proceeds received by Seller prior to the Closing as a result of such loss, or an assignment of Seller’s rights to such insurance proceeds, and this Agreement shall continue in full force and effect with no reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Property; or (ii) to terminate this Agreement.  If Purchaser elects to terminate this Agreement, the Deposit shall be promptly returned to Purchaser, and thereafter neither party will have any further rights or obligations hereunder, except for any obligations that expressly survive termination.  If Purchaser fails to notify Seller within such five (5) Business Day period of Purchaser’s intention to terminate this Agreement, then Purchaser shall be deemed to have elected option (i), and Purchaser and Seller shall proceed to Closing in accordance with the terms and conditions of this Agreement.

 

9.2                            Condemnation and Eminent Domain.  If any condemnation proceedings are instituted, or notice of intent to condemn is given, with respect to all or any portion of the Property, Seller shall promptly upon obtaining knowledge thereof notify Purchaser thereof (“Taking Notice”).  If the condemnation will not result in a material and adverse effect (as hereinafter defined) on the Property, the parties shall proceed to Closing, in which event Seller shall assign or pay to Purchaser at Closing all of Seller’s right, title, and interest in any award payable on account of the condemnation and/or pay to Purchaser all such awards previously paid.  In the event that such condemnation will result in a material and adverse effect on the 

 

19
 

 

Property, Purchaser shall have the option, which shall be exercised by written notice to Seller and Escrow Agent within five (5) Business Days after its receipt of the Taking Notice, either (i) to terminate this Agreement and receive the prompt return of the Deposit, in which case the parties shall have no further rights or obligations under this Agreement (except for any obligations that expressly survive termination), or (ii) to consummate the purchase of the Property without a reduction of the Purchase Price, in which event Seller shall assign or pay to Purchaser at Closing all of Seller’s right, title, and interest in any award payable on account of the condemnation proceeding and/or pay to Purchaser all such awards previously paid.  For the purposes of this Section 9.2, “material and adverse effect” shall mean any reduction in the amount of the rentable square footage of the Buildings, the reduction of more than ten percent (10%) of the Land, or the permanent, material disruption of access to the Property.  Failure to give notice of Purchaser’s election within such five (5) Business Day period shall be deemed an election by Purchaser to proceed to Closing.

 

ARTICLE 10
 REMEDIES AND ADDITIONAL COVENANT

 

10.1                    Seller Default At or Before Closing.  If Seller fails, in any material respect, to perform any of its obligations or agreements hereunder when performance is required on or prior to the Closing Date, or if any of the Express Representations should be false in any material respect when made and Purchaser shall become aware of same on or prior to the Closing Date and Purchaser shall not have waived its claims with regard to same pursuant to this Agreement, then Purchaser shall give Seller written notice of such breach or default on or prior to the Closing Date and Seller shall have ten (10) Business Days from the date of receipt of such notice to cure such breach or default and the Closing Date shall be extended accordingly (but in no event beyond the Designated Closing Date without Seller’s approval).  If Seller fails to cure such breach or default within such ten (10) Business Day period, then Purchaser, as its sole and exclusive remedy, (i) may terminate this Agreement by notifying Seller and the Escrow Agent thereof, in which event neither party shall have any rights, duties or obligations hereunder other than the obligations and rights set forth herein that expressly survive the termination of this Agreement, and the Escrow Agent shall return the Deposit to Purchaser, (ii) may sue for specific performance of the obligations of Seller hereunder, or (iii) may waive the alleged default and proceed to Closing under this Agreement without adjustment of the Purchase Price, provided, however, if specific performance is not available and Purchaser elects to terminate pursuant to clause (i) above, then, (1) if specific performance is not available because the Seller has conveyed the Premises to another party, then in addition to Purchaser’s right in clause (i) above to have the  Deposit returned to the Purchaser, Purchaser shall be paid by Seller any and all losses and damages (including, but not limited to, the difference between any consideration paid by such other party for the Premises and the Purchaser Price) incurred by Purchaser as a result of Purchaser’s breach, and (2) if specific performance is not available for any other reason, then, in addition to Purchaser’s right in clause (i) above to have the  Deposit returned to the Purchaser, Purchaser shall be paid by Seller the amount of all out-of-pocket costs and expenses Purchaser has incurred in connection with the transaction contemplated herein, capped at $200,000, including, but not limited to all due diligence costs, legal fees, lender fees and deposits.   For the avoidance of doubt, if Purchaser initially elects as its remedy as clause (ii) above, but such remedy is not available, Purchaser may at any time change its election to clause (i) above and be entitled to the additional damages as provided above.

 

20

 

 

10.2                    Seller Breach After Closing.  If any of the Express Representations should be false in any material respect when made or Seller is in breach or default of any covenant, representation or warranty under this Agreement or any document executed and delivered by Seller at Closing, and Purchaser shall first become aware of same after the Closing Date, then Purchaser shall give Seller written notice of such false Express Representation or breach or default prior to the expiration of the Survival Period and Seller shall have fifteen (15) Business Days from the date of receipt of such notice to cure such breach.  If Seller fails to cure such breach within such fifteen (15) Business Day period, and the actual losses or damages sustained as a result of Seller’s false Express Representations or breach or default exceeds $75,000.00, then Purchaser shall have the right to bring an action against Seller for the actual damages suffered by Purchaser due to such false Express Representation or breach or default, provided that, in no event shall Seller be liable to Purchaser for damages under this Section 10.2 in an aggregate amount in excess of $1,000,000.00.

 

10.3                    Purchaser Default.  The parties acknowledge and agree that Seller should be entitled to compensation for any detriment suffered if Purchaser fails to consummate the purchase of the Property if and when required to do so under the terms of this Agreement, but agree that it would be extremely difficult to ascertain the extent of the actual detriment Seller would suffer as a result of such failure.  Consequently, if Purchaser fails to consummate the purchase of the Property on the Closing Date or fails to perform any of its other covenants hereunder in any material respect, or otherwise defaults in its obligations hereunder, then Seller shall be entitled to terminate this Agreement by giving written notice thereof to Purchaser and Escrow Agent prior to or on the Closing Date, in which event the Deposit shall be paid to Seller as fixed, agreed and liquidated damages, and, after the payment of the Deposit to Seller, neither Seller nor Purchaser will have any further rights or obligations under this Agreement, except for any obligations that expressly survive termination.  Notwithstanding the foregoing, the aforementioned liquidated damages shall not apply to the indemnity provisions attributable to Purchaser under this Agreement.

 

10.4                    Delivery of Materials.  Notwithstanding anything contained in this Agreement to the contrary, if this Agreement is terminated for any reason whatsoever, then Purchaser shall promptly deliver to Seller all Property Information provided to Purchaser by Seller, including copies thereof in any form whatsoever (including electronic form) along with any and all test results and studies of the Property performed by or on behalf of Purchaser pursuant to Article 4 of this Agreement, unless otherwise directed by Seller and excluding any confidential or proprietary information or financial modeling or attorney work product.  The obligations of Purchaser under this Section 10.4 shall survive any termination of this Agreement.

 

ARTICLE 11
 BROKERAGE COMMISSION.

 

11.1                    Brokers.  Seller represents and warrants to Purchaser that Seller has not contacted or entered into any agreement with any real estate broker, agent, finder, or similar party in connection with this transaction, except for Avison Young (“Seller’s Broker”) and that Seller has not taken any action which would result in any real estate broker’s or finder’s fees or commissions being due and payable to any party other than Seller’s Broker with respect to the transactions contemplated hereby.  Seller will be solely responsible for the payment of Seller’s 

 

21
 

 

Broker’s commission in accordance with the provisions of a separate agreement between Seller and Seller’s Broker.  Purchaser hereby represents and warrants to Seller that Purchaser has not contracted or entered into any agreement with any real estate broker, agent, finder, or similar party in connection with this transaction and that Purchaser has not taken any action which would result in any real estate brokerage or finder’s fees or commissions being due or payable to any party with respect to the transaction contemplated hereby.

 

11.2                    Indemnity.  Each party hereby indemnifies and agrees to hold the other party harmless from any loss, liability, damage, cost, or expense (including, without limitation, reasonable attorneys’ fees) paid or incurred by the other party by reason of a breach of the representation and warranty made by such party under this Article 11.  Notwithstanding anything to the contrary contained in this Agreement, the indemnities set forth in this Section 11.2 shall survive the Closing or earlier termination of this Agreement.

 

ARTICLE 12
 NOTICES

 

12.1                    Written Notice.  All notices, demands and requests which may be given or which are required to be given by either party to the other party under this Agreement must be in writing.

 

12.2                    Method of Transmittal.  All notices, demands, requests or other communications required or permitted to be given hereunder must be sent (i) by United States certified mail, postage fully prepaid, return receipt requested, (ii) by hand delivery, (iii) by Federal Express or a similar nationally recognized overnight courier service, or (iv) by facsimile or electronic mail.  All such notices, demands, requests or other communications shall be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal, except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of receipt or required delivery shall automatically be extended to the next Business Day.

 

12.3                    Addresses.  The addresses for proper notice under this Agreement are as follows:

 

	
As   to Seller:
    	
University Cup LLC

c/o Fulcrum Asset   Advisors, LLC

8725 West Higgins,   Suite 805

Chicago, IL  60631

Attn:  Scott M. Stahr

Fax:  (312) 589-6329

Email:  sstahr@fulcrumllc.com
    

 

22
 

 

	
With   a copy to:
    	
Jonathan E. Rothschild

Rothschild,   Barry & Myers LLP

55 West Monroe Street

Suite 3900

Chicago, IL 60603

Fax: (312) 372-2350

Email:  rothj@rbmchicago.com
    
	
 
    	
 
    
	
As   to Purchaser:
    	
c/o W.P. Carey Inc.

12221 Merit Drive,   Suite 1030

Three Forest Plaza

Dallas, TX 75251

Attention:  Mr. Gino Sabatini

Fax:  (214) 661-7441

Email:  gsabatini@wpcarey.com
    
	
 
    	
 
    
	
With   a copy to:
    	
Reed Smith LLP

599 Lexington Avenue,   29th Fl.

New York, New York   10020

Attention:  Darren Sharlach, Esq.

Fax:  212-521-5450

Email:  dsharlach@reedsmith.com
    
	
 
    	
 
    
	
As   to Escrow Agent:
    	
Chicago Title Insurance   Company
   10 South LaSalle Street

Suite 3100

Chicago, Illinois   60603
   Attention:  Linda Tyrrell
   Facsimile:  (312) 223-4857
   Email:  linda.tyrrell@ctt.com
    

 

Either party may from time to time by written notice to the other party designate a different address or addresses for notices.  Notices sent to or from an address outside of the continental United States shall be sent only by one of the methods specified in clauses (ii), (iii) or (iv) of this Section 12.3.  Notices given on behalf of a party by its attorneys in the manner provided for in this Article 12 shall be considered validly given.

 

ARTICLE 13
 ASSIGNMENT

 

13.1                    Assignment.  Except for an assignment by Purchaser as permitted pursuant to this Article, neither party shall have the right to assign this Agreement without the prior written consent of the other, which consent may be granted or withheld in the sole and absolute subjective discretion of the party whose consent has been requested; provided, however, that, Purchaser shall have the right to assign its interest in this Agreement and delegate its duties to an 

 

23
 

 

affiliate, so long as such affiliate controls, is controlled by, or is under common control with Purchaser, and provided that (a) such affiliate shall assume, in writing (by execution of an assignment and assumption of this Agreement in form and substance satisfactory to Seller), all of Purchaser’s obligations under this Agreement, and (b) Purchaser shall not be released of any obligations under this Agreement.  If Purchaser so assigns this Agreement to an affiliate, Purchaser shall, at least five (5) Business Days prior to the Designated Closing Date, give the Seller written notice of such assignment (which notice shall include the full legal name and address of the Assignee), together with a copy of the assignment and assumption agreement executed by Purchaser and the assignee.

 

ARTICLE 14
 MISCELLANEOUS

 

14.1                    Entire Agreement.  This Agreement embodies the entire agreement between the parties and cannot be varied except by the written agreement of the parties and supersedes all prior agreements and undertakings.

 

14.2                    Modifications.  This Agreement may not be modified except by the written agreement of the parties.

 

14.3                    Gender and Number.  Words of any gender used in this Agreement will be construed to include any other gender and words in the singular number will be construed to include the plural, and vice versa, unless the context requires otherwise.

 

14.4                    Captions.  The captions used in connection with the Articles, Sections and Subsections of this Agreement are for convenience only and will not be deemed to expand or limit the meaning of the language of this Agreement.

 

14.5                    Successors and Assigns.  This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

14.6                    Controlling Law; Submission to Jurisdiction.  This Agreement will be construed under, governed by and enforced in accordance with the laws of the State of Illinois (without reference to conflicts of laws principles).  Any claim, action, suit, or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought only in state or federal court located in Cook County, Illinois, and each of the parties hereto hereby consents to the jurisdiction of such court (and of the appropriate appellate courts therefrom in any such claim, action, suit, or proceeding) and irrevocably waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any such claim, action, suit, or proceeding in any such court or that any such claim, action, suit, or proceeding that is brought in any such court has been brought in an inconvenient forum.  Subject to applicable law, process in any such claim, action, suit, or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court, and such service shall be made by personal service made on such party or by mail sent to such party at the address set forth in this Agreement.  Personal service may be made on such party’s resident agent.

 

24
 

 

14.7                    Exhibits.  All exhibits, attachments, schedules, annexed instruments and addenda referred to herein will be considered a part hereof for all purposes with the same force and effect as if set forth verbatim herein.

 

14.8                    No Rule of Construction.  Seller and Purchaser have each been represented by counsel in the negotiations and preparation of this Agreement; therefore, this Agreement will be deemed to be drafted by both Seller and Purchaser, and no rule of construction will be invoked respecting the authorship of this Agreement.

 

14.9                    Severability.  In the event that any one or more of the provisions contained in this Agreement (except the provisions relating to Seller’s obligations to convey the Property and Purchaser’s obligation to pay the Purchase Price, the invalidity of either of which shall cause this Agreement to be null and void) are held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provisions hereof, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had not been contained herein; provided, however, that the parties hereto shall endeavor in good faith to rewrite the affected provision to make it (i) valid, and (ii) consistent with the intent of the original provision.

 

14.10            Time of Essence.  Time is important to both Seller and Purchaser in the performance of this Agreement, and both parties have agreed that TIME IS OF THE ESSENCE with respect to any date set out in this Agreement.

 

14.11            Business Days.  “Business Day” means any day on which business is generally transacted by banks in Chicago, Illinois.  If the final date of any period which is set out in any paragraph of this Agreement falls upon a day which is not a Business Day, then, and in such event, the time of such period will be extended to the next Business Day.

 

14.12            No Memorandum.  Purchaser and Seller agree not to record this Agreement or any memorandum hereof.

 

14.13            Attorneys’ Fees and Costs.  In the event either party is required to resort to litigation to enforce its rights under this Agreement, the prevailing party in such litigation will be entitled to collect from the other party all costs, expenses and reasonable attorneys’ fees incurred in connection with such action.

 

14.14            Counterparts and Acceptance of Offer.  This Agreement may be executed in multiple counterparts (which counterparts may be executed by facsimile or PDF), which shall together constitute a single document.  However, this Agreement shall not be effective unless and until all counterpart signatures have been obtained.  An unsigned draft of this Agreement shall not be considered an offer by either party.  Acceptance, for purposes hereof, shall mean that each party is in physical possession of a fully-signed counterpart copy or original of this Agreement.

 

14.15            Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY EITHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP OF SELLER AND 

 

25
 

 

PURCHASER HEREUNDER, SELLER’S OR PURCHASER’S OWNERSHIP OR USE OF THE PROPERTY, AND/OR ANY CLAIMS OF INJURY OR DAMAGE RELATED TO THE PROPERTY.

 

14.16            Confidentiality.  Prior to Closing and in the event the transaction is not consummated for any reason, Purchaser acknowledges and agrees that it will be bound by that certain Confidentiality Agreement dated as of November 19, 2013, from W.P. Carey Inc. in favor of Seller.  Purchaser and Seller, for the benefit of each other, hereby agree that neither of them will release, or cause to be released, to the public any press notices, publicity (oral or written) or advertising promotion relating to, or otherwise publicly announce or disclose, or cause or permit to be publicly announced or disclosed, in any manner whatsoever, (i) the names of Seller and Purchaser respectively, or any of their affiliates or subsidiaries, or (ii) the terms, conditions or substance of this Agreement or the transactions contemplated herein, without first obtaining the consent of the other party hereto.   Notwithstanding any other provision of this Agreement, the provisions of Section 14.16 shall survive the termination of this Agreement, but shall expressly terminate upon the closing of the sale of the Property.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

26
 

 

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

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP LLC, a   Delaware limited
    
	
 
    	
liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:    /s/ Marvin J. Herb
    
	
 
    	
Name: Marvin J. Herb
    
	
 
    	
Title: Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
CUPS NUMBER ONE (DE) LLC,   a Delaware limited liability
   company
    
	
 
    	
 
    
	
 
    	
By: CPA:18 Limited   Partnership, its sole member
    
	
 
    	
 
    
	
 
    	
By: Corporate Property   Associates 18-Global Incorporated, its
   general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:      /s/   Gino Sabatini
    
	
 
    	
Name: Gino Sabatini
    
	
 
    	
Title: Managing   Director
    

 

 

[SIGNATURE PAGE TO PURCHASE AND SALE AGREEMENT]

 

 

SCHEDULES AND EXHIBITS

 

Schedules

 

	
Schedule 1.4
    	
–
    	
Lease and Licenses
    
	
Schedule 1.5
    	
–
    	
Security Deposits
    

 

 

Exhibits

 

	
Exhibit A
    	
–
    	
Legal Description
    
	
Exhibit B
    	
–
    	
Escrow Agreement
    
	
Exhibit C
    	
–
    	
Form of Tenant   Estoppel
    
	
Exhibit D
    	
–
    	
Form of Deed
    
	
Exhibit E
    	
–
    	
Form of Bill of   Sale
    
	
Exhibit F
    	
–
    	
Form of Assignment   and Assumption Agreement for Lease and Licenses
    
	
Exhibit G
    	
–
    	
Form of   Certificate of Non-Foreign Status
    
	
Exhibit H
    	
–
    	
Form of Tenant   Notification Letter
    
	
Exhibit I
    	
–
    	
Form of Owner’s   Affidavit
    

 

 

SCHEDULE 1.4

 

LEASE AND LICENSES

 

 

A.                                Original Lease

 

1.                                    Master Lease Agreement dated April 26, 2002 between COMMERCE CENTER PARK I, LLC, as Landlord, SWEETHEART CUP COMPANY INC., as Tenant, and SWEETHEART HOLDINGS INC., as Guarantor

 

2.                                    Corporate Guaranty of Tenant’s Obligation Under Lease, entered into by SWEETHEART HOLDINGS INC., as Guarantor, for the reliance and benefit of COMMERCE CENTER PARK I, LLC, as Landlord, dated April 26, 2002

 

3.                                    First Amendment To Lease Agreement dated as of November 3, 2004, by and between UNIVERSITY CUP LLC, as Landlord, SWEETHEART CUP COMPANY INC., as Tenant, and SOLO CUP COMPANY, as Guarantor

 

 

B.                                 Expansion Lease

 

1.                                    Master Lease Agreement dated November 3, 2004 between COMMERCE CENTER PARK I, LLC, as Landlord, SWEETHEART CUP COMPANY INC., as Tenant, and SOLO CUP COMPANY, as Guarantor

 

2.                                    Corporate Guaranty of Tenant’s Obligation Under Lease, entered into by SOLO CUP COMPANY, as Guarantor, for the reliance and benefit of COMMERCE CENTER PARK I, LLC, as Landlord, dated November 3, 2004

 

3.                                    First Amendment To Lease dated March 31, 2005, between COMMERCE CENTER PARK I, LLC, as Landlord, SWEETHEART CUP COMPANY INC., as Tenant, and SOLO CUP COMPANY, as Guarantor

 

Schedule 1.4

Page 1
 

 

SCHEDULE 1.5

 

SECURITY DEPOSITS

 

 

None.

 

Schedule 1.5

Page 1
 

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

PARCEL 1:

 

THAT PART OF THE SOUTH 14 ACRES OF THE WEST 1/2 OF THE NORTHWEST 1/4 AND ALSO PART OF THE WEST 1/2 OF THE SOUTHWEST 1/4, ALL IN SECTION 9, TOWNSHIP 34 NORTH, RANGE 13 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS:  COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST 1/4 OF SAID SECTION 9; THENCE NORTH 89 DEGREES 57 MINUTES 07 SECONDS EAST ALONG THE SOUTH LINE OF SAID NORTHWEST 1/4, 40.00 FEET TO THE POINT OF BEGINNING; THENCE NORTH 00 DEGREES 01 MINUTES 58 SECONDS EAST ALONG THE EAST RIGHT OF WAY LINE OF CENTRAL AVENUE, PER DOCUMENT NO. R95-068877, 462.38 FEET, TO A POINT ON THE NORTH LINE OF THE SOUTH 14 ACRES OF THE WEST 1/2 OF THE NORTHWEST 1/4; THENCE NORTH 89 DEGREES 57 MINUTES 07 SECONDS EAST ALONG THE NORTH LINE OF SAID SOUTH 14 ACRES, 1278.75 FEET; THENCE SOUTH 00 DEGREES 00 MINUTES 40 SECONDS EAST ALONG THE EAST LINE OF THE WEST 1/2 OF SAID NORTHWEST 1/4, 462.38 FEET TO THE NORTHEAST CORNER OF THE WEST 1/2 OF SAID SOUTHWEST 1/4; THENCE SOUTH 00 DEGREES 01 MINUTES 29 SECONDS EAST ALONG THE EAST LINE OF THE WEST 1/2 OF SAID SOUTHWEST 1/4 A DISTANCE OF 1406.90 FEET, THENCE NORTH 89 DEGREES 59 MINUTES 59 SECONDS WEST 1279.71 FEET TO A POINT ON THE EAST RIGHT OF WAY LINE OF CENTRAL AVENUE PER DOCUMENT NOS. R95-087160 AND R96-023929; THENCE NORTH 00 DEGREES 00 MINUTES 00 SECONDS WEST ALONG SAID EAST RIGHT OF WAY LINE OF CENTRAL AVENUE A DISTANCE OF 1405.79 FEET TO THE POINT OF BEGINNING, IN

 

WILL COUNTY, ILLINOIS

 

PARCEL 2:

 

THAT PART OF THE WEST HALF OF THE SOUTHWEST 1/4 OF SECTION 9, TOWNSHIP 34 NORTH, RANGE 13 EAST OF THE THIRD PRINCIPAL MERIDIAN, WILL COUNTY, ILLINOIS, DESCRIBED AS FOLLOWS:  COMMENCING AT THE NORTHWEST CORNER OF THE SOUTHWEST 1/4 OF SAID SECTION 9; THENCE NORTH 89 DEGREES 57 MINUTES 07 SECONDS EAST ALONG THE NORTH LINE OF SAID SOUTHWEST 1/4, A DISTANCE OF 40.00 FEET; THENCE SOUTH 00 DEGREES 00 MINUTES 00  SECONDS WEST ALONG THE EAST RIGHT OF WAY LINE OF CENTRAL AVENUE, PER DOCUMENT NUMBER R95-068877, A DISTANCE OF 1405.79 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 89 DEGREES 59 MINUTES 59 SECONDS EAST A DISTANCE OF 1279.71 FEET TO THE EAST LINE OF THE WEST HALF OF SAID SOUTHWEST QUARTER; THENCE SOUTH 00 DEGREES 01 MINUTES 29 SECONDS EAST ALONG SAID EAST LINE A DISTANCE OF 1203.04 FEET TO THE NORTH RIGHT OF WAY LINE OF DRALLE ROAD PER DOCUMENT NUMBER R95-087160 AND R96-023929; THENCE SOUTH 89 DEGREES 49 MINUTES 54 SECONDS WEST ALONG SAID NORTH RIGHT OF WAY LINE A DISTANCE OF 1260.22 FEET; THENCE CONTINUING

 

Exhibit A

Page 1
 

 

ALONG SAID NORTH RIGHT OF WAY LINE, NORTH 45 DEGREES 05 MINUTES 03 SECONDS WEST A DISTANCE OF 28.20 FEET TO THE EAST RIGHT OF WAY LINE OF CENTRAL AVENUE PER DOCUMENT NUMBER R95-087160; THENCE NORTH 00 DEGREES 00 MINUTES 00 SECONDS WEST ALONG SAID EAST RIGHT OF WAY LINE A DISTANCE OF 1186.84 FEET TO THE POINT OF BEGINNING.

 

Exhibit A

Page 2
 

 

EXHIBIT B

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (this “Agreement”), made and entered into this          day of January       , 2014, by and among CUPS NUMBER ONE (DE) LLC, a Delaware limited liability company (“Purchaser”), UNIVERSITY CUP LLC, a Delaware limited liability company (“Seller”), and CHICAGO TITLE INSURANCE COMPANY (“Escrow Agent”).

 

WITNESSETH:

 

WHEREAS, Purchaser and Seller have entered into a certain Purchase and Sale Agreement dated as of January     , 2014 (as may be amended, hereinafter referred to as the “Contract”), which provides that one or more deposits will be delivered to Escrow Agent to be held and applied by said Escrow Agent in accordance with this Agreement.  Capitalized terms used herein but not defined herein shall have the meanings assigned in the Contract.

 

NOW, THEREFORE, in consideration of the agreements set forth in the Contract and the mutual covenants set forth herein, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.                                    Within one (1) Business Day after the Effective Date, Purchaser shall deliver to Escrow Agent, by federal wire transfer, funds in the amount of Two Million Dollars ($2,000,000.00) (the “Initial Deposit”).  On or before the expiration or waiver of the Diligence Period, Purchaser shall deliver to Escrow Agent, by federal funds wire transfer, a cash deposit in immediately available funds in the additional amount of Two Million Dollars ($2,000,000) (the “Additional Deposit”).  The Initial Deposit and Additional Deposit are collectively referred to herein as the “Deposit”.   Escrow Agent hereby agrees to hold, administer, and disburse the Deposit pursuant to this Agreement and the Contract.  Escrow Agent shall invest such Deposit in a segregated, interest-bearing money market account.  In the event any interest or other income shall be earned on such Deposit, such interest or other income become a part of the Deposit and will be the property of the party entitled to the Deposit pursuant to the Contract.  Purchaser’s and Seller’s Federal Identification Numbers are set forth below.  Escrow Agent shall hold and disburse the Deposit, and shall conduct the Closing, and carry out the duties of Escrow Agent, in accordance with this Agreement and as provided in the Contract. The Deposit is non-refundable unless Purchaser terminates this Agreement in accordance with the express provisions of the Agreement.

 

2.                                    At such time as Escrow Agent receives written notice from either Purchaser or Seller, or both, setting forth the identity of the party to whom the Deposit are to be disbursed and further setting forth the specific section or paragraph of such Contract pursuant to which the disbursement of the Deposit is being requested, Escrow Agent shall disburse the Deposit pursuant to such notice; provided, however, that if such notice is given by either Purchaser or Seller but not both, Escrow Agent shall (i) promptly notify the other party (either Purchaser or Seller, as the case may be) that Escrow Agent has received a request for disbursement, and (ii) withhold disbursement of the Deposit for a period of ten (10) days after receipt of such notice of disbursement and if Escrow Agent receives written notice from either Purchaser or Seller within

 

Exhibit B

Page 1
 

 

said ten (10) day period which notice countermands the earlier notice of disbursement, then Escrow Agent shall withhold such disbursement until both Purchaser and Seller can agree upon a disbursement of the Deposit.  Purchaser and Seller each hereby agree to send to the other, pursuant to Paragraph 5 below, a duplicate copy of any written notice sent to Escrow Agent and requesting any such disbursement or countermanding a request for disbursement.

 

3.                                    In performing any of its duties hereunder, Escrow Agent shall not incur any liability to anyone for any damages, losses, or expenses, except for willful default or breach of trust, and it shall accordingly not incur any such liability with respect to (i) any action taken or omitted in good faith upon advice of its legal counsel given with respect to any questions relating to the duties and responsibilities of Escrow Agent under this Agreement, or (ii) any action taken or omitted in reliance upon any instrument, including any written notice or instruction provided for in this Agreement, not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall in good faith believe to be genuine, to have been signed or presented by a proper person or persons, and to conform with the provisions of this Agreement.

 

4.                                    Notwithstanding the provisions of Paragraph 2 above, in the event of a dispute between Purchaser and Seller sufficient, in the sole discretion of Escrow Agent to justify its doing so or in the event that Escrow Agent has not disbursed the Deposit on or before ten (10) days after the Closing Date, Escrow Agent shall be entitled to tender into the registry or custody of any court of competent jurisdiction the Deposit, together with such legal pleadings as it may deem appropriate, and thereupon be discharged from all further duties and liabilities under this Agreement.  Any such legal action may be brought in a federal or district court in the Cook County, Illinois, or, if such courts do not have jurisdiction as to the parties or matters involved then such court as Escrow Agent shall determine to have jurisdiction thereof.

 

5.                                    All notices, demands, requests or other communications required or permitted to be given hereunder must be in writing and must be sent (i) by United States certified mail, postage fully prepaid, return receipt requested, (ii) by hand delivery, (iii) by Federal Express or a similar nationally recognized overnight courier service, or (iv) by facsimile or electronic mail with a confirmation copy delivered by another method set forth in this Section 5.  All such notices, demands, requests or other communications shall be deemed to have been given for all purposes of this Agreement upon the date of receipt or refusal, except that whenever under this Agreement a notice is either received on a day which is not a Business Day or is required to be delivered on or before a specific day which is not a Business Day, the day of receipt or required delivery shall automatically be extended to the next Business Day.  The addresses for proper notice under this Agreement are as follows:

 

	
As   to Seller:
    	
University Cup LLC

c/o Fulcrum Asset   Advisors, LLC

8725 West Higgins,   Suite 805

Chicago, IL  60631

Attn:  Scott M. Stahr

Fax:  (312) 589-6329

Email:  sstahr@fulcrumllc.com
    

 

Exhibit B

Page 2
 

 

	
With   a copy to:
    	
Jonathan E. Rothschild

Rothschild,   Barry & Myers LLP

55 West Monroe Street

Suite 3900

Chicago, IL 60603

Fax: (312) 372-2350

Email:  rothj@rbmchicago.com
    
	
 
    	
 
    
	
As   to Purchaser:
    	
c/o W.P. Carey Inc.

12221 Merit Drive,   Suite 1030

Three Forest Plaza

Dallas, TX 75251

Attention:  Mr. Gino Sabatini

Fax:  (214) 661-7441

Email:  gsabatini@wpcarey.com
    
	
 
    	
 
    
	
With   a copy to:
    	
Reed Smith LLP

599 Lexington Avenue,   29th Fl.

New York, New York   10020

Attention:  Darren Sharlach, Esq.

Fax:  212-521-5450

Email:  dsharlach@reedsmith.com
    
	
 
    	
 
    
	
As   to Escrow Agent:
    	
Chicago Title Insurance   Company
   10 South LaSalle Street

Suite 3100

Chicago, Illinois   60603
   Attention:  Linda Tyrrell
   Facsimile:  (312) 223-4857
   Email:  linda.tyrrell@ctt.com
    

 

Either party may from time to time by written notice to the other party designate a different address or addresses for notices.  Notices sent to or from an address outside of the continental United States shall be sent only by one of the methods specified in clauses (ii), (iii) or (iv) of this Section 5.  Notices given on behalf of a party by its attorneys in the manner provided for in this Section 5 shall be considered validly given.

 

6.                                    This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, executors, administrators, personal representatives, successors, and assigns.  Any and all rights granted to any of the parties hereto may be exercised by their agents or personal representatives.

 

Exhibit B

Page 3
 

 

7.                                    Time is of the essence of this Agreement.

 

8.                                    This Agreement is governed by and is to be construed under the laws of the State of Illinois and may be executed in several counterparts, each of which shall be deemed an original, and all such counterparts together shall constitute one and the same instrument.

 

Exhibit B

Page 4
 

 

IN WITNESS WHEREOF, the parties hereto have signed and sealed this Agreement as of the day, month and year first above written.

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP LLC, a   Delaware limited
    
	
 
    	
liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Its:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
CUPS NUMBER ONE (DE)   LLC, a Delaware limited 
   liability company
    
	
 
    	
 
    
	
 
    	
By: CPA:18 Limited   Partnership, its sole member
    
	
 
    	
 
    
	
 
    	
By: Corporate Property   Associates 18-Global Incorporated, 
   its general partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ESCROW AGENT:
    
	
 
    	
 
    
	
 
    	
CHICAGO TITLE INSURANCE   COMPANY
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    

 

Exhibit B

Page 5

 

 

EXHIBIT C

 

FORM OF TENANT ESTOPPEL

 

University Cup LLC (“Landlord”)

c/o Scott M. Stahr

Fulcrum Asset Advisors LLC

8725 West Higgins, Suite 805

Chicago, IL 60631

 

Ladies and Gentlemen:

 

The undersigned as Tenant under that certain Lease (the “Lease”), made as of                         , 2004, between Commerce Center Park I, LLC, a Delaware limited liability company, as Landlord, and the undersigned, as Tenant, for Premises located at University Park, Will, County, Illinois, certifies as follows:

 

1.         Attached hereto as Exhibit A is a true and correct copy of the Lease and all amendments and modifications to the Lease.  The documents contained in Exhibit A represent the entire agreement between the parties as to the Premises.

 

2.         The undersigned has commenced occupancy of the Premises, currently occupies the Premises, and the Rent Commencement Date occurred on                                   .

 

3.         The Lease is in full force and effect and has not been modified, supplemented or amended in any way except as provided in Exhibit A.

 

4.         Tenant has not transferred, assigned, or sublet any portion of the Premises nor entered into any license or concession agreements with respect to the Premises except as follows:

 

5.         Tenant shall not modify the documents contained in Exhibit A or prepay any amounts owing under the Lease to Landlord more than thirty (30) days in advance of the date on which those sums become due under the terms of the Lease without the prior written consent of                                         , Landlord’s mortgagee.

 

6.         Base Rent became payable on                                               .

 

7.         The Lease Term expires on                                                   .

 

8.         All conditions of the Lease that Landlord must performed and that are necessary to the enforceability of the Lease have been satisfied and, to the best knowledge and belief of the undersigned, Landlord is not in default in respect of any of its obligations arising under the terms of the Lease, except as provided in the attached Exhibit B.

 

9.         No rental has been paid more than thirty (30) days in advance of the date on which it became due under the terms of the Lease and no security has been deposited with Landlord except as provided in the Lease.

 

Exhibit C

Page 1
 

 

10.       As of the date of this certificate, there are no existing defenses or offsets that the undersigned has, which preclude Landlord’s enforcement of the Lease, except as provided in Exhibit B.

 

11.       All monthly installments of Base Rent have been paid when due through                                   . The current monthly installment of Base Rent is $                              .

 

The undersigned acknowledges that this certificate may be delivered to Landlord’s prospective mortgagee, a prospective purchaser, or a prospective purchaser’s mortgagee, and acknowledges that it recognizes that, if that delivery occurs, that mortgagee, prospective mortgagee, prospective purchaser or prospective purchaser’s mortgagee will be relying upon the statements contained in this certificate in making the loan or acquiring the Premises, and in accepting an assignment of Landlord’s interest in the Lease as collateral security, and that receipt by it of this certificate is a condition of making of the loan or acquisition of the Premises.

 

The undersigned (i) is not presently engaged in nor does it presently permit, (ii) has not at any time in the past engaged in nor permitted, and (iii) has no knowledge that any third person or entity engaged in or permitted any operations or activities upon, or any use or occupancy of the Premises, or any portion thereof, for the purpose of or in any way involving the handling, manufacturing, treatment, storage, use, transportation, spillage, leakage, dumping, discharge or disposal (whether legal or illegal, accidental or intentional) of any radioactive, toxic or hazardous substances, materials or wastes, or any wastes regulated under any local, state or federal law, except as follows:                                                                                                                            (if none, so state).

 

Executed at                                  on the              day of                                     ,           .

 

	
 
    	
“Tenant”:
    
	
 
    	
 
    
	
 
    	
SWEETHEART CUP   COMPANY INC.,
    
	
 
    	
a Delaware   corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Print Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
						

 

Exhibit C

Page 2
 

 

EXHIBIT D

 

	
 

This Instrument   Prepared By:

 

 

 

After Recording Return   To:

 

 
    	
 
    
	
 
    	
SPACE   ABOVE THIS LINE RESERVED FOR RECORDER’S USE
    

 

SPECIAL WARRANTY DEED

 

 

THE UNDERSIGNED GRANTOR DECLARES:

 

FOR AND IN CONSIDERATION OF TEN AND NO/100 DOLLARS ($10.00) AND OTHER GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, UNIVERSITY CUP LLC, a Delaware limited liability company (“Grantor”), does hereby GRANT, BARGAIN AND SELL to                                                                             , a                                        (“Grantee”), having an address of                                                                        , and its successors and assigns, FOREVER, the real property located in the City of University Park, County of Will, State of Illinois, and more particularly described in Exhibit A attached hereto and made a part hereof (hereinafter referred to as the “Land”), together with, all and singular, adjacent streets, alleys, rights-of-way, rights, benefits, licenses, interests, privileges, easements, tenements, hereditaments and appurtenances on the Land or in anywise appertaining thereto, and the improvements, structures and fixtures located upon the Land, subject to the “Permitted Exceptions” (i.e., those exceptions to title contained in the title insurance policy delivered to Grantee on or about the date of recording of this Special Warranty Deed).

 

AND Grantor, for itself, and its successors and assigns, hereby covenants with Grantee that it has not done or suffered to be done, anything whereby the said real property hereby granted is, or may be, in any manner encumbered or charged, except as herein recited, and that Grantor is lawfully seized of said real property in fee simple, subject, however, to the Permitted Exceptions; that Grantor has good right and lawful authority to sell and convey said real property; and hereby warrants the title to said real property and will WARRANT AND DEFEND the same against the lawful claims of all persons claiming by, through or under Grantor, but not otherwise.

 

	
ADDRESS OF REAL   ESTATE:
    	
 
    	
 
    
	
 
    
	
PERMANENT TAX IDENTIFICATION   NUMBERS:
    	
 
    	
 
    
				

 

 

Exhibit D

Page 1
 

 

IN WITNESS WHEREOF, the undersigned hereby executes this instrument as of the            day of                           , 2014.

 

	
GRANTOR:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
UNIVERSITY CUP   LLC, a Delaware limited
    	
 
    
	
liability   company
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

Exhibit D

Page 2
 

 

	
STATE OF   ILLINOIS
    	
)
    
	
 
    	
)
    
	
COUNTY OF COOK
    	
)
    

 

The foregoing instrument was acknowledged before me this        day of                     , 2014, by                               , the                                  of UNIVERSITY CUP LLC, is personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that he signed and delivered said instrument is his free and voluntary, and as the free and voluntary act of said company, for the uses and purposes therein set forth.

 

Given under my hand and Notarial Seal this            day of                   , 2014.

 

	
 
    	
 
    	
 
    
	
 
    	
Print Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Notary Public
    	
 
    

 

	
My Commission   expires:
    	
 
    	
 
    

 

[Intentionally Left Blank - Signature Page to Follow]

 

Exhibit D

Page 3
 

 

Exhibit A to Special Warranty Deed

 

(Legal Description)

 

Exhibit D

Page 4
 

 

EXHIBIT E

 

FORM OF BILL OF SALE

 

KNOW ALL MEN BY THESE PRESENTS, that UNIVERSITY CUP LLC, a Delaware limited liability company (“Seller”), for and in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby bargain, sell, grant, transfer, assign, and convey to                                       , a                                          (“Purchaser”), its successors and assigns, for its and their own use and benefit, forever, the following personal property presently located on the real estate commonly known as 701 Central Drive, University Park, Illinois (the “Premises”):  (i) to the extent owned by Seller, all mechanical systems, fixtures, machinery and equipment comprising a part of or attached to or located upon or within the Premises, (ii) maintenance equipment and tools, if any, owned by Seller and used exclusively in connection with, and located in or at, the Premises; (iii) site plans, surveys, plans and specification, manuals and instruction materials, and floor plans in Seller’s possession which relate to the Premises; (iv) to the extent owned by Seller, pylons and other signs situated on or at the Premises; and (v) other tangible personal property owned by Seller and used exclusively in connection with, and located in or on, the Premises as of the date hereof (collectively, the “Personal Property”), but excluding (x) tax deposits, utility deposits and other deposits held by parties other than Seller, except for any transferable deposits assigned to Purchaser, for which Seller is to be reimbursed as provided in that certain Purchase and Sale Agreement dated as of January           , 2014, by and between Seller and Purchaser; and (y) any rights to any Personal Property, including furniture, that bears the name, logo or marks of Seller or any of its affiliates or identifies that the Property was owned by Seller, including, without limitation, any and all signage, including, without limitation, any free-standing or building fascia sign bearing the name, logo or marks of Seller or its affiliates.

 

THE PERSONAL PROPERTY IS CONVEYED WITHOUT RECOURSE TO SELLER IN ITS AS IS, WHERE IS CONDITION AND SELLER HEREBY DISCLAIMS, AND PURCHASER HEREBY WAIVES, ANY AND ALL WARRANTIES OF MERCHANTABILITY AND WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE (WHETHER STATUTORY, EXPRESS OR IMPLIED) WITH RESPECT TO THE PERSONAL PROPERTY BEING TRANSFERRED BY THIS INSTRUMENT.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

Exhibit E

Page 1
 

 

IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be executed as of the            day of                       , 2014.

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP   LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title: Manager
    	
 
    
					

 

Exhibit E

Page 2

 

 

EXHIBIT F

 

FORM OF ASSIGNMENT AND ASSUMPTION 
 FOR LEASE AND LICENSES

 

This ASSIGNMENT AND ASSUMPTION OF LEASE AND LICENSES (this “Assignment”) is made this            day of                     , 2014, by and between UNIVERSITY CUP LLC, a Delaware limited liability company (“Assignor”), and                                                          , a                                          (“Assignee”).

 

RECITALS

 

WHEREAS, Assignee and Assignor entered into that certain Purchase and Sale Agreement dated as of January     , 2014 (the “Purchase Contract”), for the purchase and sale of that certain property located at 701 Central Avenue, University Park, Illinois (the “Property”); and

 

WHEREAS, under the terms and conditions of the Purchase Contract, it is contemplated that Assignor and Assignee enter into this Assignment.

 

NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto do hereby agree as follows:

 

AGREEMENTS

 

1.         Assignor hereby transfers and assigns to Assignee all right, title and interest of Assignor, if any, in and to the following described property:

 

(a)        All leases, subleases, licenses and other occupancy agreements relating to or affecting the Property, together with all guarantees of obligations of tenants and other parties under such leases and agreements, said leases and other agreements being more fully described in Exhibit A attached hereto and hereby made a part hereof (collectively, the “Lease and Licenses”); and

 

(b)        The current outstanding balance of all security deposits and prepaid rents, together with all interest accrued thereon if payable under the Lease and Licenses or applicable law, as more fully described on Exhibit B hereto but excluding any non-refundable deposits (collectively, the “Security Deposits”).

 

TO HAVE AND TO HOLD all of the foregoing unto Assignee, its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions and provisions contained herein.

 

2.         Assignee hereby accepts the foregoing assignment of the Lease and Licenses and Security Deposits and does hereby assume all the duties and obligations of Assignor accruing from and after the date hereof under the Lease and Licenses and with respect to the Security Deposits.

 

Exhibit F

Page 1
 

 

3.         Assignor’s liability under this Assignment shall be subject to the limitations set forth in Sections 5.4 and 10.2 of the Purchase Contract.

 

4.         The provisions of Sections 14.2, 14.5, 14.6, 14.8, 14.9, 14.13, 14.14, 14.15, and 14.16 of the Purchase Contract are hereby incorporated herein as though recited herein in their entirety.

 

5.         The obligations of the parties hereunder shall survive the closing of the transactions referred to in the Purchase Contract.

 

6.         This Assignment may be executed in multiple counterparts (which counterparts may be executed by facsimile or PDF) which shall together constitute a single document.  However, this Assignment shall not be effective unless and until all counterpart signatures have been obtained.

 

[Signatures Appear on the Following Page]

 

Exhibit F

Page 2
 

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP LLC, a   Delaware limited liablity company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
 
    	
,
    
	
 
    	
a
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
					

 

Exhibit F

Page 3
 

 

Exhibit A to Assignment and Assumption 
 for Lease and Licenses

 

Lease and Licenses

 

Exhibit F

Page 4
 

 

Exhibit B to Assignment and Assumption 
 for Leases and Licenses

 

Security Deposits

 

 

None.

 

Exhibit F

Page 5
 

 

EXHIBIT G

 

FORM OF CERTIFICATE OF NON-FOREIGN STATUS

 

Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  For U.S. tax purposes (including Section 1445 of the Code), the owner of a disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity.  To inform                                                 , a                                             , that withholding of tax is not required upon the disposition of a U.S. real property interest by UNIVERSITY CUP LLC, a Delaware limited liability company (“Transferor”), the undersigned hereby certifies the following:

 

1.         Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Code and Income Tax Regulations);

 

2.         Transferor’s Tax Identification Number is                                 ; and

 

3.         The mailing address of Transferor is                                                           .

 

The undersigned understands that this certification may be disclosed the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

Exhibit G

Page 1
 

 

Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete.

 

Dated:                                , 2014

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP LLC, a   Delaware limited liability
   company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    

 

Exhibit G

Page 2

 

 

EXHIBIT H

 

FORM OF TENANT NOTIFICATION LETTER

 

[DATE OF SALE CLOSING]

 

HAND DELIVERED

 

TO:                    Tenant at 701 Central Avenue, University Park, IL

 

RE:                    701 Central Avenue, University Park, IL
 Notification Regarding Change of Ownership

 

This letter is to notify you as Tenant at 701 Central Avenue, University Park, Illinois (the “Property”), that the Property has been sold by University Cup LLC (“Seller”), to                                                                         , a                                                        (“Purchaser”).  As of the date hereof, your Lease has been assigned by Seller to Purchaser.  From the date of this letter, any and all unpaid rent as well as all future rent, or any other amounts due under the terms of your Lease, shall be directed as follows:

 

	
TO:
    	
 
    	
 
    
	
ATTN:
    	
 
    	
 
    
	
AT:
    	
 
    	
 
    

 

[PURSUANT TO SEPARATE INSTRUCTIONS TO BE PROVIDED BY PURCHASER]

 

As part of the sale, all refundable tenant deposits, if any, actually held by Seller with respect to the Property have been transferred to, and Seller’s obligations with respect to such deposits have been assumed by, Purchaser as of the date of this letter.  Any and all payments of rent (or other sums due under your Lease) hereafter paid to any party other than Purchaser shall not relieve you of the obligation of making said payment to Purchaser.

 

[Signatures Appear on the Following Page]

 

Exhibit H

Page 1
 

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
UNIVERSITY CUP   LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
 
    	
,
    
	
 
    	
a
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    
							

 

Exhibit H

Page 2
 

 

EXHIBIT I

 

CHICAGO TITLE INSURANCE COMPANY

10 SOUTH LASALLE STREET, CHICAGO, ILLINOIS 60603

 

STATEMENT REQUIRED FOR THE ISSUANCE OF ALTA OWNERS AND LOAN POLICIES

 

	
Commitment No.
    	
Loan No.                          
    

 

Date                                , 2014

 

To the best knowledge and belief of the undersigned, the following is hereby certified with respect to the land described in the above commitment.

 

1.               That, except as noted at the end of this paragraph, within the last six (6) months (a) no labor, service or materials have been furnished to improve the land, or to rehabilitate, repair, refurbish, or remodel the building(s) situated on the land; (b) nor have any goods, chattels, machinery, apparatus or equipment been attached to the building(s) thereon, as fixtures; (c) nor have any contracts been let for the furnishing of labor, service, materials, machinery, apparatus or equipment which are to be completed subsequent to the date hereof; (d) nor have any notices of lien been received, except the following, if any:

NONE                                                                                                                                                                                                                                                       

 

2.               There are no revolving credit mortgages, line of credit mortgages, home equity loan mortgages, or other voluntary liens or mortgages affecting title, other than those shown on Schedule B of the Commitment, except the following, if any:

NONE                                                                                                                                                                                                                                                       

 

3.               That all management fees, if any, are fully paid, except the following:

NONE                                                                                                                                                                                                                                                       

 

4.               That there are no unrecorded security agreements, leases, financing statements, chattel mortgages or conditional sales agreements in respect to any appliances, equipment or chattels that have or are to become attached to the land or any improvements thereon as fixtures, except the following, if any:

NONE                                                                                                                                                                                                                                                       

 

5.               That there are no unrecorded contracts or options to purchase the land, except the following, if any:

NONE                                                                                                                                                                                                                                                       

 

6.               That there are no unrecorded leases, easements or other servitudes to which the land or building, or portions thereof, are subject, except the following, if any:

NONE                                                                                                                                                                                                                                                       

 

7.               That, in the event the undersigned is a mortgagor in a mortgage to be insured under a loan policy to be issued pursuant to the above commitment, the mortgage and the principal obligations it secures are good and valid and free from all defenses; that any person purchasing the mortgage and the obligations it secures, or otherwise acquiring any interest therein, may do so in reliance upon the truth of the matters herein recited; and that this certification is made for the purpose of better enabling the holder or holders, from time to time, of the above mortgage and obligations to sell, pledge or otherwise dispose of the same freely at any time, and to insure the purchasers or pledgees thereof against any defenses thereto by the mortgagor or the mortgagor’s heirs, personal representative or assigns.

NONE                                                                                                                                                                                                                                                       

 

8.               That, I/we am/are the purchaser(s) or mortgagor(s) of land improved with a residential dwelling not exceeding four units, and no current survey or mortgagee's inspection report has been furnished to or is available to me/us, [DELETE STATEMENT IF NOT APPLICABLE.]

 

The undersigned makes the above statement for the purpose of inducing Chicago Title Insurance Company to issue its owners or loan policy pursuant to the above commitment.

 

NOTWITHSTANDING THE FOREGOING, THE LIABILITY OF THE UNDERSIGNED IS LIMITED TO ACTS OF THE UNDERSIGNED.  THIS STATEMENT SHALL AUTOMATICALLY EXPIRE SIX (6) MONTHS FROM THE DATE SET FORTH ABOVE.  SELLER’S LIABILITY FOR ANY CLAIMS ASSERTED WITH RESPECT TO THIS STATEMENT IS CAPPED AT THE AMOUNT OF THE OWNER’S TITLE INSURANCE POLICY.

 

SIGNATURE PAGE FOLLOWS

 

Exhibit I

Page 1
 

 

Seller or Owner

 

UNIVERSITY CUP LLC 

 

	
By:
    	
 
    	
 
    

Name:

Title:

 

Sworn to before me this        day of                     , 2014.

 

	
 
    	
 
    
	
Notary Public
    	
 
    

 

Exhibit I

Page 2

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