Document:

Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

WINDSOR GREEN AT ANDOVER

311 AND 319 LOWELL STREET

ANDOVER, MASSACHUSETTS

 

Date:   June 14, 2013

 

 

TABLE OF CONTENTS

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
ARTICLE 1 CERTAIN   DEFINITIONS
    	
1
    
	
 
    	
 
    
	
ARTICLE 2 SALE OF PROPERTY
    	
5
    
	
 
    	
 
    
	
ARTICLE 3 PURCHASE PRICE
    	
5
    
	
 
    	
 
    
	
3.1
    	
Deposit Money
    	
5
    
	
 
    	
 
    	
 
    
	
3.2
    	
Cash at Closing
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 4 TITLE MATTERS
    	
5
    
	
 
    	
 
    
	
4.1
    	
Title Defects
    	
5
    
	
 
    	
 
    	
 
    
	
 
    	
4.1.1
    	
Certain Exceptions to Title
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
4.1.2
    	
Discharge of Title Objections
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
4.2
    	
Title Insurance
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 5 BUYER’S DUE   DILIGENCE/CONDITION OF THE PROPERTY
    	
7
    
	
 
    	
 
    
	
5.1
    	
Buyer’s Inspections and Due Diligence
    	
7
    
	
 
    	
 
    	
 
    
	
5.2
    	
Termination of Agreement During Due Diligence Period
    	
7
    
	
 
    	
 
    	
 
    
	
5.3
    	
Confidentiality
    	
7
    
	
 
    	
 
    	
 
    
	
5.4
    	
Property Sold “As Is”
    	
8
    
	
 
    	
 
    	
 
    
	
5.5
    	
Buyer’s Certificate
    	
9
    
	
 
    	
 
    	
 
    
	
5.6
    	
Survival
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE 6 ADJUSTMENTS AND   PRORATIONS
    	
9
    
	
 
    	
 
    
	
6.1
    	
Lease Rentals and Other Revenues
    	
9
    
	
 
    	
 
    	
 
    
	
 
    	
6.1.1
    	
Definition of “Revenues”
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.1.2
    	
Revenues
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
6.2
    	
Real Estate and Personal Property Taxes and Other Fees and   Assessments
    	
10
    
	
 
    	
 
    	
 
    
	
6.3
    	
Other Property Operating Expenses
    	
10
    
	
 
    	
 
    	
 
    
	
6.4
    	
Tenant Deposits, Fees and Charges
    	
11
    
	
 
    	
 
    	
 
    
	
6.5
    	
Closing Costs
    	
11
    
	
 
    	
 
    	
 
    
	
6.6
    	
Lease Expenses
    	
11
    
	
 
    	
 
    	
 
    
	
6.7
    	
Closing Proration Calculation; Delivery of Operating and   Other Financial Statements
    	
11
    
	
 
    	
 
    	
 
    
	
 
    	
6.7.1
    	
Apportionment of Income and Expense
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.7.2
    	
Reconciliation
    	
12
    

 

i

	
 
    	
 
    	
 
    	
 
    
	
 
    	
6.7.3
    	
Survival
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7 CLOSING
    	
12
    
	
 
    	
 
    
	
7.1
    	
Closing Date
    	
12
    
	
 
    	
 
    	
 
    
	
7.2
    	
Title Transfer and Payment of Purchase Price
    	
12
    
	
 
    	
 
    	
 
    
	
7.3
    	
Seller’s Closing Deliveries
    	
12
    
	
 
    	
 
    	
 
    
	
7.4
    	
Buyer’s Closing Deliveries
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 8 CONDITIONS TO   CLOSING
    	
15
    
	
 
    	
 
    
	
8.1
    	
Conditions to Seller’s Obligations
    	
15
    
	
 
    	
 
    	
 
    
	
8.2
    	
Conditions to Buyer’s Obligations
    	
15
    
	
 
    	
 
    	
 
    
	
8.3
    	
Waiver of Failure of Conditions Precedent
    	
15
    
	
 
    	
 
    	
 
    
	
8.4
    	
Approvals Not a Condition to Buyer’s Performance
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE 9 REPRESENTATIONS   AND WARRANTIES
    	
16
    
	
 
    	
 
    
	
9.1
    	
Buyer’s Representations
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.1.1
    	
Buyer’s Authorization
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.1.2
    	
Buyer’s Financial Condition
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
9.2
    	
Seller’s Representations
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.1
    	
Seller’s Authorization
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.2
    	
Litigation
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.3
    	
Contracts
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.4
    	
Leases
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.5
    	
Violations
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.6
    	
Personal Property
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.7
    	
Pending Condemnation
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.2.8
    	
Executive Order 13224
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
9.3
    	
General Provisions
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.1
    	
No Representation as to Leases
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.2
    	
Definition of “Seller’s Knowledge” and “Written Notice” to   Seller
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.3
    	
Seller’s Representations Deemed Modified
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.4
    	
Seller’s Recertification of Seller’s Warranties
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.5
    	
Notice of Breach; Seller’s Right to Cure
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
9.3.6
    	
Survival; Limitation on Seller’s Liability
    	
19
    

 

ii

	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 10 COVENANTS
    	
20
    
	
 
    	
 
    
	
10.1
    	
Buyer’s Covenants
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.1.1
    	
Buyer’s Indemnity; Delivery of Reports
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
10.2
    	
Seller’s Covenants
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.2.1
    	
Contracts
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.2.2
    	
Maintenance of Property
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.2.3
    	
Termination of Management Agreement
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.2.4
    	
Leasing
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.2.5
    	
Lease Enforcement
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
10.3
    	
Mutual Covenants
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.3.1
    	
Confidentiality
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.3.2
    	
Publicity
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.3.3
    	
Broker
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
10.3.4
    	
Tax Protests; Tax Refunds and Credits
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
10.4
    	
Survival
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 11 DEFAULT
    	
22
    
	
 
    	
 
    
	
11.1
    	
Buyer’s Default
    	
22
    
	
 
    	
 
    	
 
    
	
11.2
    	
Seller’s Default
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE 12   CONDEMNATION/CASUALTY
    	
23
    
	
 
    	
 
    
	
12.1
    	
Condemnation
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
12.1.1
    	
Right to Terminate
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
12.1.2
    	
Assignment of Proceeds
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
12.2
    	
Destruction or Damage
    	
24
    
	
 
    	
 
    	
 
    
	
12.3
    	
Insurance
    	
24
    
	
 
    	
 
    	
 
    
	
12.4
    	
Effect of Termination
    	
24
    
	
 
    	
 
    	
 
    
	
12.5
    	
Waiver
    	
25
    
	
 
    	
 
    	
 
    
	
ARTICLE 13 ESCROW
    	
25
    
	
 
    	
 
    
	
ARTICLE 14 MISCELLANEOUS
    	
26
    
	
 
    	
 
    
	
14.1
    	
Assignment
    	
26
    
	
 
    	
 
    	
 
    
	
14.2
    	
Designation Agreement
    	
26
    
	
 
    	
 
    	
 
    
	
14.3
    	
Survival/Merger
    	
27
    
	
 
    	
 
    	
 
    
	
14.4
    	
Integration; Waiver
    	
27
    
	
 
    	
 
    	
 
    
	
14.5
    	
Governing Law
    	
27
    

 

iii

	
 
    	
 
    	
 
    
	
14.6
    	
Captions Not Binding; Exhibits
    	
27
    
	
 
    	
 
    	
 
    
	
14.7
    	
Binding Effect
    	
27
    
	
 
    	
 
    	
 
    
	
14.8
    	
Severability
    	
27
    
	
 
    	
 
    	
 
    
	
14.9
    	
Notices
    	
27
    
	
 
    	
 
    	
 
    
	
14.10
    	
Counterparts
    	
29
    
	
 
    	
 
    	
 
    
	
14.11
    	
No Recordation
    	
29
    
	
 
    	
 
    	
 
    
	
14.12
    	
Additional Agreements; Further Assurances
    	
29
    
	
 
    	
 
    	
 
    
	
14.13
    	
Construction
    	
29
    
	
 
    	
 
    	
 
    
	
14.14
    	
Business Day
    	
29
    
	
 
    	
 
    	
 
    
	
14.15
    	
Maximum Aggregate Liability
    	
30
    
	
 
    	
 
    	
 
    
	
14.16
    	
JURISDICTION
    	
30
    
	
 
    	
 
    	
 
    
	
14.17
    	
WAIVER OF JURY TRIAL
    	
30
    
	
 
    	
 
    	
 
    
	
14.18
    	
Facsimile Signatures
    	
30
    
	
 
    	
 
    	
 
    
	
14.19
    	
Riders
    	
31
    
	
 
    	
 
    	
 
    
	
14.20
    	
Attorneys’ Fees
    	
31
    
	
 
    	
 
    	
 
    
	
14.21
    	
Windsor
    	
31
    
	
 
    	
 
    	
 
    
	
14.22
    	
Exchange Transaction
    	
31
    

 

iv

 

EXHIBITS

 

	
Schedule 1
    	
Index   of Defined Terms
    
	
Schedule 2
    	
List   of Due Diligence Items
    
	
Exhibit A
    	
Legal   Description
    
	
Exhibit B
    	
List   of Contracts
    
	
Exhibit C
    	
Form of   As-Is Certificate and Agreement
    
	
Exhibit D
    	
Form of   Deed
    
	
Exhibit E
    	
Form of   Bill of Sale
    
	
Exhibit F
    	
Form of   Assignment of Leases
    
	
Exhibit G
    	
Form of   Assignment of Intangible Property
    
	
Exhibit H
    	
Form of   Notice to Tenants
    
	
Exhibit I
    	
Form of   Notice to Vendors
    
	
Exhibit J
    	
Form of   FIRPTA Affidavit
    
	
Exhibit K
    	
Survey
    
	
Exhibit L
    	
Notices   of Litigation, Governmental Violations and Condemnation
    
	
Exhibit M
    	
Confidentiality   Agreement
    
	
Exhibit N
    	
Schedule of   Personal Property
    
	
Exhibit O
    	
List   of Leases
    
	
Exhibit P
    	
Title   Commitment
    

 

v

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT (“Agreement”) is made to be effective as of June 14, 2013, by WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company (formerly known as Criterion Andover Apartments, L.P., a Delaware limited partnership) (“Seller”), and HAMILTON GREEN APARTMENTS, LLC, a Massachusetts limited liability company (“Buyer”).

 

W I T N E S S E T H:

 

In consideration of the mutual covenants and agreements set forth herein the parties hereto do hereby agree as follows:

 

ARTICLE 1

 

CERTAIN DEFINITIONS

 

As used herein, the following terms shall have the following meanings:

 

“Affiliate” shall mean an entity which controls Buyer or is controlled by or under common control with Buyer,

 

“Broker” shall mean Jones Lang LaSalle Americas, Inc.

 

“Buyer’s Representative” shall mean Buyer, its partners, members, shareholders or trustees and any officers, directors, employees, agents and counsel of Buyer, its partners, members, shareholders or trustees.

 

“Closing” shall mean the closing of the Transaction.

 

“Closing Date” shall mean July 15, 2013, or such earlier date on which Seller and Buyer may agree in writing for closing of the Transaction, provided the Buyer shall have the one-time right to extend the Closing Date by not more than ten (10) additional days by delivering written notice of such extension to the Seller not later than 5:00 p.m. E.D.S.T. on Wednesday, July 10, 2013, and by posting an additional $500,000.00 deposit (the “Extension Deposit”) with the Escrow Agent.

 

“Code” shall mean the Internal Revenue Code of 1986, as amended.

 

“Confidentiality Agreement” shall mean that certain Confidentiality Agreement dated March 29, 2013, attached hereto as Exhibit M and incorporated herein by this reference, the terms of which shall continue and be fully applicable during the term of this Agreement and, if longer, the term therein specified.

 

“Contracts” shall mean all service, supply, maintenance and utility agreements, all equipment leases, and all other contracts, subcontracts and agreements relating to the Real Property and the Personal Property, all as described in Exhibit B attached hereto

 

 

and incorporated herein by this reference, and any additional contracts, subcontracts and agreements entered into in accordance with the terms of Section 10.2.1 hereof.

 

“Deemed to Know” (or words of similar import, whether or not such words may be capitalized) shall mean that: Buyer shall be deemed to know:  (a) of the existence of a fact or circumstance, to the extent that such fact or circumstance is disclosed by this Agreement, the Documents, or any studies, tests, reports, or analyses prepared by, for or otherwise obtained by Buyer or Buyer’s Representative in connection with the Property; and (b)  that a representation or warranty of Seller is untrue, inaccurate or incorrect to the extent that this Agreement, the Documents, or any studies, tests, reports or analyses prepared by or for or otherwise obtained by Buyer or Buyer’s Representative in connection with the Property contains information which is inconsistent with such representation or warranty.

 

“Designated Representative” shall mean Christina Reale, Asset Manager and Assistant Vice President.

 

“Documents” shall mean the documents and instruments applicable to the Property or any portion thereof that Seller or any of the other Seller Parties deliver or make available to Buyer prior to Closing or otherwise allow Buyer access to prior to Closing, including, but not limited to, the Title Commitment, the Survey, the Title Documents and the Property Documents, as well as any other documents that are publicly available.

 

“Due Diligence” shall mean examinations, inspections, tests, studies, analyses, appraisals, evaluations and/or investigations with respect to the Property, the Documents, and other information and documents regarding the Property, including, without limitation, examination and review of title matters, applicable land use and zoning Laws and other Laws applicable to the Property, the physical condition of the Property, and the economic status of the Property.

 

“Due Diligence Period” shall mean the period commencing prior to the execution of this Agreement and expiring at 5:00 p.m. E.D.S.T. on June 18, 2013.

 

“Escrow Agent” shall mean Commonwealth Land Title Insurance Company, whose mailing address is 131 Dartmouth Street, Suite 501, Boston, MA 02116, Attention:  William Bonaccorso (617) 912-0956.

 

“Laws” shall mean all municipal, county, state or federal statutes, codes, ordinances, laws, rules or regulations.

 

“Leases” shall mean all shall mean all leases for tenants leasing residential apartment units at the Real Property.

 

“MHPFB” shall mean the Massachusetts Housing Partnership Fund Board.

 

“Other Property Rights” shall mean, collectively, Seller’s interest in and to all of the following, if any, if and to the extent the same are assignable by Seller without any expense or other liability to Seller and are in effect as of the Closing Date:  (a) any rights,

 

2

 

licenses, permits and other written authorizations necessary for the use, operation or ownership of the Real Property, but specifically excluding Seller’s or any affiliate’s right to the name “Windsor”; and (b) guaranties and warranties with respect to any portion of the Property.

 

“Permitted Exceptions” shall mean and include all of the following:  (a) applicable zoning, building and land use Laws, (b) unless Buyer timely objects to any thereof as provided in Section 4.1.1 hereof:  (i) the Title Documents, (ii) facts disclosed in the Survey, and (iii) any matters about which Buyer knows or is Deemed to Know prior to the expiration of the Due Diligence Period; (c) facts that would be disclosed by a physical inspection of the Property; (d) tax liens not yet due and payable; (e) any exceptions to title caused by Buyer, its agents, Representative or employees; (f) such other exceptions to title as the Title Company shall commit to insure over, without any additional cost to Buyer, whether such insurance is made available in consideration of payment, bonding, indemnity by Seller or otherwise; (g) the rights of the tenants under the Leases and (h) any matters deemed to constitute additional Permitted Exceptions under Section 4.1.1 hereof.

 

“Person” shall mean a natural person, partnership, limited partnership, limited liability company, corporation, trust, estate, association, unincorporated association or other entity.

 

“Personal Property” shall mean, collectively, (a) all tangible personal property owned by Seller (excluding any computers, any computer software or programs which either (x) are licensed to Seller or Property Manager, or (y) Seller or Property Manager deem proprietary), located on the Real Property and used in the ownership, operation and maintenance of the Real Property, including, without limitation, those items of tangible personal property listed on Exhibit N attached hereto and incorporated herein by reference, and (b) all non-confidential books, records and files maintained by Seller’s property manager at the Property (excluding any appraisals, budgets, strategic plans for the Property, internal analyses, property condition reports, information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product, and attorney-client privileged documents) relating exclusively to the Property.

 

“Project” shall mean that certain apartment project consisting of 193 apartment units located on the Real Property.

 

“Property” shall mean, collectively:  (a) the Real Property; (b) the Personal Property; (c) Seller’s interest as landlord in all Leases; (d) if and to the extent assignable by Seller without any expense to Seller, the Contracts; and (e) the Other Property Rights.

 

“Property Documents” shall mean, collectively:  (a) the Leases; (b) the Contracts; and (c) any other documents or instruments which constitute or otherwise create any portion of the Property.

 

“Property Manager” shall mean Windsor Property Management Company.

 

3

 

“Real Property” shall mean that certain parcel of real estate legally described in Exhibit A attached hereto and incorporated herein by this reference, together with all buildings, improvements and fixtures located thereon and owned by Seller as of the Closing Date and all rights, privileges and appurtenances pertaining thereto including all of Seller’s right, title and interest in and to all rights-of-way, open or proposed streets, alleys, easements and strips or gores of land adjacent thereto.

 

“Regulatory Agreement” shall mean that certain Chapter 40B Regulatory and Affordable Housing Agreement for Limited Dividend Organizations dated February 14, 2008 by and between Seller and the Massachusetts Housing Partnership Fund Board.

 

“Seller Cure Limit” shall mean the sum of $50,000.00, which sum shall be the aggregate amount available to cure breaches of Seller’s Warranties as provided in Section 9.3.5 and Section 10.2.5 hereof.

 

“Seller Parties” shall mean and include, collectively:  (a) Seller; (b) its counsel; (c) Broker; (d) the Property Manager; (e) any direct or indirect equity owner, officer, shareholder, trustee, director, employee or agent of Seller, Seller’s partners or members, or Seller’s partners’ or members’ partners or members, counsel to any of the foregoing, Broker or Seller’s property manager; (f) any other entity or individual affiliated or related in any way to any of the foregoing; and (g) the Designated Representative.

 

“Seller’s Warranties” shall mean Seller’s representations and warranties set forth in Section 9.2 hereof and in any documents executed by Seller for the benefit of Buyer in connection with Closing.

 

“Survey” shall mean the survey listed and described on Exhibit K attached hereto and incorporated herein by reference.

 

“Tax Year” shall mean the real estate tax year for the Town of Andover, Essex County, Massachusetts.

 

“Title Commitment” shall mean Title Commitment No. 13-7393 from the Title Company dated June 2, 2013, a copy of which is attached hereto as Exhibit P and incorporated herein by reference.

 

“Title Company” shall mean Commonwealth Land Title Insurance Company, whose mailing address is 131 Dartmouth Street, Suite 501, 1400, Boston, MA 02116, Attention:  William Bonaccorso (617) 912-0956, williamb@bonaccorsolaw.com

 

“Title Documents” shall mean all recorded documents referred to on Schedule B of the Title Commitment as exceptions to coverage and any other recorded documents relating to the Real Property that have been made available to Buyer.

 

“Transaction” shall mean the purchase and sale transaction contemplated by this Agreement.

 

4

 

ARTICLE 2

 

SALE OF PROPERTY

 

Seller agrees to sell, transfer and assign, and Buyer agrees to purchase, accept and assume, subject to the Permitted Exceptions and the terms and conditions set forth in this Agreement and the Exhibits attached hereto, all of Seller’s right, title and interest in and to the Property.

 

ARTICLE 3

 

PURCHASE PRICE

 

The purchase price (the “Purchase Price”) to be paid by Buyer for the Property is Sixty Two Million Five Hundred Thousand and no/100ths Dollars ($62,500,000.00).  The Purchase Price shall be paid in the following manner:

 

3.1                               Deposit Money.  Upon the full execution and delivery of this Agreement, Buyer shall deposit with Escrow Agent earnest money in the amount of One Million and no/100ths Dollars ($1,000,000.00) (the “Initial Deposit”) in immediately available funds.  If Buyer fails to deposit the Initial Deposit within three (3) days of the full execution and delivery of this Agreement, Seller may elect to terminate this Agreement by delivering written notice thereof to Buyer and neither party shall have any further rights or obligations at law or equity except for those rights and obligations which expressly survive the termination of this Agreement.  If Buyer does not terminate this Agreement pursuant to ARTICLE 5, then Buyer shall deliver to Escrow Agent the additional sum of One Million and no/100ths Dollars ($1,000,000.00) (the “Additional Deposit”) in immediately available funds within three (3) business days after expiration of the Due Diligence Period.  The Initial Deposit and the Additional Deposit, and the Extension Deposit, if applicable, together with all interest earned thereon, are collectively referred to in this Agreement as the “Deposit”.  The Deposit shall be held and delivered by Escrow Agent in accordance with the provisions of ARTICLE 13.  Any interest earned on the Deposit shall be considered a part of the Deposit.  Except as otherwise set forth herein, the Deposit shall be applied against the Purchase Price at Closing.

 

3.2                               Cash at Closing.  On the Closing Date, Buyer shall pay to Seller an amount equal to the Purchase Price, subject  to the prorations and adjustments set forth in ARTICLE 6 or as otherwise provided under this Agreement, plus any other amounts required to be paid by Buyer at Closing, in immediately available funds by wire transfer as more particularly set forth in Section 10.2.

 

ARTICLE 4

 

TITLE MATTERS

 

4.1                               Title Defects.

 

4.1.1                     Certain Exceptions to Title.  Buyer shall have the right to object in writing to any title matters that are not Permitted Exceptions (herein collectively called the

 

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“Other Exceptions”) shown on the Title Commitment, Title Documents and Survey by written notice to Seller given no later than seven (7) business days before the end of the Due Diligence Period, and to any Other Exceptions first appearing on any subsequent update to the Title Commitment, Title Documents or Survey within five (5) business days after Buyer obtains knowledge thereof or is Deemed to Know of their existence, but in any event no later than the Closing Date.  Unless Buyer shall timely object to such Other Exceptions, all such Other Exceptions shall be deemed to constitute additional Permitted Exceptions.  Any Other Exceptions that are timely objected to by Buyer shall be herein collectively called the “Title Objections.”  Seller shall, at Closing, remove or cause to be removed any Title Objections to the extent (and only to the extent) that such Title Objections are (A) mortgage financing documentation, or (B) mechanics’ or materialmen’s liens which relate to work performed by or on behalf of Seller and liens evidencing monetary encumbrances (other than liens for non-delinquent general real estate taxes) which are removable by payment of liquidated and ascertainable amounts (collectively, the “Required Clearance Exceptions”).  In addition, Seller may elect (but shall not be obligated) to remove, or cause to be removed, at its expense, any other Title Objections.  Seller shall be entitled to a reasonable extension of the Closing (not to exceed thirty (30) days) for the purpose of the removal of any Required Clearance Exceptions or other Title Objections, which removal will be deemed effected by the issuance of title insurance eliminating or insuring against the effect of the Title Objections.  To the extent that the same do not constitute Required Clearance Exceptions, Seller shall notify Buyer in writing within three (3) business days after receipt of Buyer’s notice of Title Objections whether Seller elects to remove the same.  If Seller is unable to remove or cause the Title Company to endorse over any Required Clearance Exceptions (after using reasonable efforts as provided in Section 10.2.5) or any Other Objections (as to which Seller has elected to remove or cause the Title Company to endorse over) prior to the Closing, or if Seller elects not to remove or cause the Title Company to endorse over one or more Title Objections, Buyer may elect to either (a) terminate this Agreement in its entirety by notice given to Seller (1) on the Closing Date if Seller is unable to remove or cause the Title Company to endorse over any such Title Objections, or (2) within four (4) business days after notice from Seller of its election not to remove or to cause the Title Company to endorse over any such Title Objections, in either which event the Deposit shall be refunded to Buyer and thereafter, the parties shall have no further rights or obligations hereunder except for obligations which expressly survive the termination of this Agreement, or (b) waive such Title Objections, in which event such Title Objections shall be deemed additional “Permitted Exceptions”, and the Closing shall occur as herein provided without any reduction of or credit against the Purchase Price.

 

4.1.2                     Discharge of Title Objections.  If on the Closing Date there are any Required Clearance Exceptions or any other Title Objections which Seller has elected to pay and discharge, Seller may use any portion of the Purchase Price to satisfy the same, provided Seller shall either:  (a) deliver to Buyer at the Closing instruments in recordable form sufficient to cause such Title Objections to be released of

 

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record, together with the cost of recording or filing such instruments; or (b) cause the Title Company to insure over the same, without any additional cost to Buyer, whether such insurance is made available in consideration of payment, bonding, indemnity of Seller or otherwise.

 

4.2                               Title Insurance.  At Closing and at Buyer’s sole cost and expense, the Title Company shall issue to Buyer an Owner’s Form title insurance policy with extended coverage endorsement over the standard printed exceptions where available, in the form that is customary in the Commonwealth of Massachusetts (collectively, the “Owner’s Title Policy”), in the amount of the Purchase Price, insuring that fee simple title to the Real Property is vested in Buyer, subject to the Permitted Exceptions.  Buyer shall be entitled to request that the Title Company provide coinsurance or reinsurance or such endorsements or amendments to the Owner’s Title Policy and Survey as Buyer may reasonably require, provided that (a) such coinsurance, reinsurance, endorsements or amendments shall be at no cost to, and shall impose no additional liability on, Seller, and (b) Buyer’s obligations under this Agreement shall not be conditioned upon Buyer’s ability to obtain such coinsurance, reinsurance, endorsements or amendments and, if Buyer is unable to obtain such coinsurance, reinsurance, endorsements or amendments, Buyer shall nevertheless be obligated to proceed to close the Transaction without reduction of or set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of any such requirements of Buyer.

 

ARTICLE 5

 

BUYER’S DUE DILIGENCE/CONDITION OF THE PROPERTY

 

5.1                               Buyer’s Inspections and Due Diligence.  Buyer acknowledges that during the Due Diligence Period, Buyer has conducted, and shall continue to conduct, such Due Diligence as Buyer deems necessary or appropriate.  Buyer further acknowledges that on or prior to the date hereof, Buyer has received, or has been provided access to, the items list on Schedule 2, attached hereto.

 

5.2                               Termination of Agreement During Due Diligence Period.  If Buyer is not, in its sole and absolute discretion, satisfied with the results of its Due Diligence during the Due Diligence Period, Buyer may terminate this Agreement in its entirety by written notice to Seller given in accordance with the provisions of Section 14.9 hereof at any time prior to 6:00 p.m. E.D.S.T. on the last day of the Due Diligence Period, and, in the event of such termination, neither Seller nor Buyer shall have any liability hereunder except for those obligations which expressly survive the termination of this Agreement, Buyer shall be entitled to the return of the Deposit.  In the event Buyer fails to terminate this Agreement prior to expiration of the Due Diligence Period, Buyer shall be deemed to have waived its rights to terminate this Agreement in accordance with this ARTICLE 5.

 

5.3                               Confidentiality.  The terms and conditions of that certain Confidentiality Agreement dated March 29, 2013, a copy of which is attached hereto and incorporated into this Agreement.  Such Confidentiality Agreement will survive the termination of this Agreement and shall survive the Closing (and not be merged therein).

 

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5.4                               Property Sold “As Is”.

 

(a)                                 Buyer acknowledges and agrees that (i) the Property is being sold, and Buyer shall accept possession of the Property on the Closing Date, “AS IS, WHERE IS, WITH ALL FAULTS”, with no right of setoff or reduction in the Purchase Price; (ii) except for Seller’s Warranties, none of the Seller Parties have or shall be deemed to have made any verbal or written representations, warranties, promises or guarantees (whether express, implied, statutory or otherwise) to Buyer with respect to the Property, any matter set forth, contained or addressed in the Documents (including, but not limited to, the accuracy and completeness thereof) or the results of Buyer’s Due Diligence; and (iii) Buyer has confirmed independently all information that it considers material to its purchase of the Property or the Transaction.  Buyer specifically acknowledges that, except for Seller’s Warranties, Buyer is not relying on (and Seller and each of the other Seller Parties does hereby disclaim and renounce) any representations or warranties of any kind or nature whatsoever, whether oral or written, express, implied, statutory or otherwise, from Seller or any other Seller Parties, as to any matter whatsoever.  Buyer further acknowledges and agrees that, except for Seller’s Warranties, Seller is not under any duty to make any affirmative disclosures or inquiry regarding any matter which may or may not be known to Seller or any of the other Seller Parties, and Buyer, for itself and for its successors and assigns, hereby expressly waives and releases Seller and each of the other Seller Parties from any such duty that otherwise might exist.

 

(b)                                 Any reports, repairs or work required by Buyer are the sole responsibility of Buyer, and Buyer agrees that there is no obligation on the part of Seller to make any changes, alterations or repairs to the Property or to cure any violations of Law or to comply with the requirements of any insurer.

 

(c)                                  Except as expressly provided hereinbelow in this Subsection (c), Buyer, for Buyer and Buyer’s successors and assigns, hereby releases Seller and each of the other Seller Parties from, and waives all claims and liability against Seller and each of the other Seller Parties for or attributable to, the following:

 

(i)                                     any and all statements or opinions heretofore or hereafter made, or information furnished, by the Seller Parties to Buyer or any of Buyer’s Representative; and

 

(ii)                                  any and all losses, costs, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever attributable to the Property, whether arising or accruing before, on or after the Closing Date and whether attributable to events or circumstances which have heretofore or may hereafter occur, including, without limitation, all losses, costs, claims, liabilities, expenses, demands and obligations with respect to the structural, physical, and environmental condition of the Property;

 

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(iii)                               provided, however, that the release and waiver set forth in this Section 5.4(c) is not intended and shall not be construed to affect or impair any rights or remedies under this Agreement that Buyer may have against Seller as a result of a breach of any of Seller’s Warranties or of any covenant of Seller expressly set forth in this Agreement.

 

(d)                                 Buyer acknowledges and agrees that the provisions of this ARTICLE 5 were a material factor in Seller’s acceptance of the Purchase Price and that while Seller has provided the Documents and cooperated with Buyer, Seller is unwilling to sell the Property unless Seller and the other Seller Parties are expressly released as set forth in Section 5.4(c).

 

5.5                               Buyer’s Certificate.  Buyer shall deliver to Seller, at the Closing, a certificate in the form of Exhibit C attached hereto and incorporated herein by this reference, confirming and certifying Buyer’s acceptance and acknowledgement of all matters set forth in this ARTICLE 5.

 

5.6                               Survival.  Notwithstanding anything to the contrary herein, the provisions of this ARTICLE 5 shall survive the Closing and shall not be merged therein.

 

ARTICLE 6

 

ADJUSTMENTS AND PRORATIONS

 

The following adjustments and prorations shall be made for the Project as of 11:59 p.m. E.D.S.T. on the day before the Closing Date (the “Cut-Off Time”):

 

6.1                               Lease Rentals and Other Revenues.

 

6.1.1                     Definition of “Revenues”.  For purposes of this ARTICLE 6, the term “Revenues” shall mean all rents due from the tenants under the Leases (including without limitation all pass-through payments due from tenants for utilities) and all other revenue derived from the Project (including periodic payments to Seller under telephone and cable provision agreements and the like but excluding any initial inducement payments made to Seller under such agreements).

 

6.1.2                     Revenues.  Seller shall be entitled to all Revenues attributable to any period through the Cut-Off Time.  Buyer shall be entitled to all Revenues attributable to any period after the Cut-Off Time.  Prorations for Revenues shall be calculated and paid at such time as required by Section 6.7 hereof; provided that there shall be no credit to Buyer for Revenues delinquent as of the Cut-Off Time.  After Closing, Buyer shall make a good faith, reasonable effort to collect any Revenues due but not collected as of the Cut-Off Time on Seller’s behalf and, if Buyer so collects such Revenues, Buyer shall tender the same to Seller upon receipt (which obligation of Buyer shall survive the Closing and not be merged therein); provided, however, that all Revenues collected by Buyer after the Cut-Off Time shall first be applied to all amounts due Buyer at the time of collection (i.e., current Revenues and sums due Buyer as the current owner and landlord) with the

 

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balance (if any) payable to Seller, but only to the extent of amounts delinquent and actually due Seller for periods prior to the Cut-Off Time.  Buyer shall not have an exclusive right to collect the sums due Seller under the Leases, and Seller hereby retains its rights to pursue any tenant under the Leases for sums due Seller for periods attributable to Seller’s ownership of the Property, provided, however, that Seller shall not be permitted to commence or pursue any legal proceedings against any tenant seeking eviction of such tenant or the termination of the underlying lease.  Buyer agrees to deliver to Seller, on or before the tenth (10th) day of each calendar month from and after the Closing Date through and including the ninetieth (90th) day following the Closing Date, a written report as to the status of collections from all tenants who were delinquent as of the Closing Date, and if such report is not timely delivered, Buyer shall deliver such report to Seller within five (5) days after Seller’s written request therefor.

 

6.2                               Real Estate and Personal Property Taxes and Other Fees and Assessments.  Real estate taxes (the “Taxes”) for the Property shall be prorated based upon the amounts actually payable during the Tax Year in which Closing occurs.  If the Taxes have not been paid before Closing, Seller shall be charged at Closing an amount equal to that portion of such Taxes which relates to the period before the Cut-Off Time, and Buyer shall pay the Taxes prior to their becoming delinquent.  If the actual amount of the Taxes shall not have been finally determined as of the Closing Date, such apportionment made with respect to Taxes shall be based upon an estimate of the Taxes obtained by Seller from its real estate tax consultant.  To the extent that the actual amount of Taxes differs from the amount apportioned at Closing, the parties shall make all necessary adjustments by appropriate payments between themselves in accordance with Section 6.7 below; provided, however, that Buyer shall be solely responsible for any penalties or interest that may be assessed due to Buyer’s late payment of Taxes.  Seller shall pay all installments of special assessments due and payable on or before the Closing Date, and Buyer shall pay all installments of special assessments due and payable after the Closing Date; provided, however, that Seller shall not be required by the foregoing to pay any installments of special assessments which have not been confirmed or which relate to projects that have not been completed as of the date hereof.

 

6.3                               Other Property Operating Expenses.  Operating expenses for the Property (including without limitation license and permit fees for assignable or transferable licenses and permits, if any) shall be prorated as of the Cut-Off Time.  Seller shall pay all utility charges and other operating expenses attributable to the Property prior to the Cut-Off Time (except for those utility charges and operating expenses payable directly by tenants to the providers thereof), and Buyer shall pay all utility charges and other operating expenses attributable to the Property after the Cut-Off Time.  Prorations for all items of Property operating expenses shall be calculated and paid at such time as required by Section 6.7.  Following the Closing Date, and pending final settlement pursuant to Section 6.7, (i) Buyer shall pay when due all invoices issued for Property operating expenses (except for invoices entirely attributable to the period prior to the Cut-Off Time, which shall be forwarded to Seller for payment), subject to final settlement pursuant to Section 6.7, and (ii) Seller and Buyer shall cooperate with each other to effect the transfer of Property owner responsibilities under the Contracts, utility accounts and applicable

 

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licenses and permits.  Seller shall not assign to Buyer any deposits which Seller has made with any utility services or companies servicing the Property,  all of which, together with any amounts on deposit with governmental authorities in connection with development of or improvements to the Property, which shall remain the property of the Seller.  Buyer shall arrange with such services and companies to have accounts opened in Buyer’s name beginning at the Cut-Off Time.

 

6.4                               Tenant Deposits, Fees and Charges.  At Closing, Seller shall give Buyer a credit against the Purchase Price in the aggregate amount of all cash security deposits then held by Seller under Leases less any administrative or similar charges to which Seller may be entitled under applicable Law. Seller shall not assign to Buyer and shall retain all non-refundable deposits, fees, or charges made by tenants under Leases, including without limitation, move-in fees, cleaning fees, redecorating fees, administrative fees, amenity fees, laundry revenue and pet fees, and there shall be no proration of such items.

 

6.5                               Closing Costs.  Except as expressly provided to the contrary in this Section 6.5, Buyer shall pay all its costs and expenses associated with the Transaction, including, without limitation:  (a) all premiums and charges of the Title Company for insurance, coinsurance or reinsurance for the Owner’s Title Policy or any lender’s title policy or any endorsements to the Owner’s Title Policy or any lender’s title policy; (b) revisions to the Survey required by the Buyer; (c) recording and filing charges in connection with any loan placed on the Property by Buyer; (d) one/half (1⁄2) of all closing or escrow charges charged by Escrow Agent; (e) all costs of Buyer’s Due Diligence, including fees due its consultants and attorneys; (f) all lenders’ fees and charges related to any financing to be obtained by Buyer; (g) any brokerage commission due Buyer’s broker; and (h) all fees due its attorneys.  Seller shall pay:  (i) documentary transfer tax stamps; (j) all fees due its attorneys; (k) the commission due Broker; (l) all costs incurred in connection with causing the Title Company to remove any Required Clearance Exceptions or to remove any other Title Objections to the extent Seller elects to remove any such matter; and (m) one/half (1⁄2) of all closing or escrow charges charged by Escrow Agent.  The obligations of the parties under this Section 6.5 shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement.

 

6.6                               Lease Expenses.  Seller shall retain responsibility for and shall pay when and as due all lease or apartment finder fees and commissions payable with respect to Leases to tenants whose move-in date occurred on or before the Closing Date.  Buyer shall be responsible for and shall pay when and as due all lease or apartment finder fees and commissions payable with respect to Leases to tenants whose move-in date occurred after the Closing Date.  A list of the fore-going charges fees and commissions will be reviewed and allocated by the parties as a Closing proration.

 

6.7                               Closing Proration Calculation; Delivery of Operating and Other Financial Statements.

 

6.7.1                     Apportionment of Income and Expense.  At Closing, notwithstanding anything to the contrary that may be contained in this Agreement, apportionment of the items of income and expense described in Section 6.1 and Section 6.3, shall be made solely as described in this Section 6.7.  Within ninety (90) days following the

 

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Closing Date, the parties shall calculate the actual amounts of income and expense described in Section 6.1 and Section 6.3 attributable to the month in which Closing occurs and shall make a final adjustment of the estimated proration made at Closing.  Any sum that may be owed by one party to the other party as a result of such adjustment shall be paid by the owing party to the other party within thirty (30) days after such final adjustment is made.

 

6.7.2                     Reconciliation.  To account for any adjustments made at Closing pursuant to this ARTICLE 6 that prove to be incorrect (whether as a result of an error in calculation or a lack of complete and accurate information as of the time of initial adjustment), the parties shall make a final proration one hundred eighty (180) days following the Closing Date, and the party in whose favor any net error was made, shall pay to the other party the sum necessary to correct such error within thirty (30) days after expiration of such one hundred eighty (180) day period (except in the case of real estate property taxes, in which case, such final proration and payment shall be made within thirty (30) days after receipt of the final tax bill for Proratable Taxes or the disposition of any appeal thereof).

 

6.7.3                     Survival.  The provisions of this Section 6.7 shall survive the Closing and not be merged therein.

 

ARTICLE 7

 

CLOSING

 

Buyer and Seller hereby agree that the Transaction shall be consummated as follows:

 

7.1                               Closing Date.  Subject to Seller’s right to extend the Closing as provided in this Agreement, Closing shall occur on the Closing Date and shall be through escrow.  Time is of the essence with respect to the Closing Date.

 

7.2                               Title Transfer and Payment of Purchase Price.  Provided all conditions precedent to Seller’s obligations hereunder have been satisfied, Seller agrees to convey the Property to Buyer against payment of the Purchase Price as set forth below.  Provided all conditions precedent to Buyer’s obligations hereunder have been satisfied, Buyer agrees to pay the amount specified in ARTICLE 3 by wire transfer of immediately available funds to the account or accounts designated by Seller for payment of the Purchase Price no later than 1:00 p.m. E.D.S.T., as confirmed by transmittal to Seller of the Federal Reserve Wire Reference Number for the transfer.

 

7.3                               Seller’s Closing Deliveries.  At Closing, Seller shall deliver or cause to be delivered the following:

 

(a)                                 Deed.  A quitclaim deed for the Project substantially in the form of Exhibit D attached hereto and incorporated herein by this reference (the “Deed”) executed and acknowledged by Seller.

 

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(b)                                 Bill of Sale.  A bill of sale for the Project in the form of Exhibit E attached hereto and incorporated herein by this reference (the “Bill of Sale”) executed by Seller.

 

(c)                                  Assignment of Leases.  An assignment and assumption of Leases for the Project, in the form of Exhibit F attached hereto and incorporated herein by this reference (the “Assignment of Leases”) executed by Seller.

 

(d)                                 Assignment of Intangible Property.  An assignment and assumption of the Contracts and the Other Property Rights for the Project (to the extent the same are not transferred by the Deed, Bill of Sale or Assignment of Leases) in the form of Exhibit G attached hereto and incorporated herein by this reference (the “Assignment of Intangible Property”) executed by Seller.

 

(e)                                  Notice to Tenants.  A single form letter for the Project in the form of Exhibit H attached hereto and incorporated herein by this reference, executed by Seller, duplicate copies of which shall be delivered by Seller on the day of Closing to each tenant under the Leases.

 

(f)                                   Notice to Vendors.  A single form letter for the Project in the form of Exhibit I attached hereto and incorporated herein by this reference, executed by Seller, duplicate copies of which shall be sent by Seller on or prior to Closing to each contractor under the Contracts.

 

(g)                                  Non-Foreign Status Affidavit.  A non-foreign status affidavit for the Project in the form of Exhibit J attached hereto and incorporated herein by this reference, as required by Section 1445 of the Code, executed by Seller.

 

(h)                                 Evidence of Authority.  Documentation to establish, to the Title Company’s reasonable satisfaction, the due authorization of Seller’s execution of all documents contemplated by this Agreement.

 

(i)                                     Other Documents.  A closing statement executed by Seller and such other documents as may be reasonably required by the Title Company or as may be agreed upon by Seller and Buyer to consummate the Transaction.

 

(j)                                    Keys and Original Documents.  Keys, fob passes or codes to all locks and security features on the Real Property in Seller’s or Property Manager’s possession and originals or, if originals are not available, copies, of all of the Property Documents, to the extent not previously delivered to Buyer.

 

(k)                                 Consent of the MHPFB.  Written consent to the sale of the Property from the MHPFB as required in Section 10(a) of the Regulatory Agreement.

 

(l)                                     Easement Estoppel.  In addition, Seller shall undertake commercially-reasonable efforts to obtain an estoppel from the Lot 2 Owner described in Section 17 of that Restatement of Declaration and Grant of Easements, Rights and Restrictions dated April 28, 2005, recorded at the Massachusetts Essex County Registry of Deeds in Book 9483, Page 11.

 

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The items to be delivered by Seller in accordance with the terms of Section 7.3(a) through (k) shall be delivered to Escrow Agent no later than 5:00 p.m. E.D.S.T. on the last business day prior to the Closing Date, and the items to be delivered by Seller in accordance with the terms of Section 7.3(j) shall be delivered outside of escrow and shall be deemed delivered if the same are located at the Property on the Closing Date.

 

7.4                               Buyer’s Closing Deliveries.  At the Closing, Buyer shall deliver or cause to be delivered the following:

 

(a)                                 Purchase Price.  The Purchase Price, as adjusted for apportionments and other adjustments required under this Agreement, plus any other amounts required to be paid by Buyer at Closing.

 

(b)                                 Assignment of Leases.  The Assignment of Leases executed by Buyer.

 

(c)                                  Assignment of Intangible Property.  The Assignment of Intangible Property executed by Buyer.

 

(d)                                 Buyer’s As-Is Certificate.  The certificate of Buyer required under ARTICLE 5 hereof, as set forth in Exhibit C attached hereto and incorporated herein.

 

(e)                                  Evidence of Authority.  Documentation to establish, to the Title Company’s reasonable satisfaction, the due authorization of Buyer’s acquisition of the Property and execution of all documents contemplated by this Agreement.

 

(f)                                   Buyer’s Assumption of Obligations and Duties Under the Regulatory Agreement.  A written statement from the Buyer required under Section 10(a) of the Regulatory Agreement that the Buyer will assume Seller’s obligations and duties under the Regulatory Agreement.

 

(g)                                  Other Documents.  A closing statement executed by Buyer and such other documents as may be reasonably required by the Title Company or may be agreed upon by Seller and Buyer to consummate the Transaction.

 

The Purchase Price shall be paid in accordance with the terms of Section 7.2 hereof, and the items to be delivered by Buyer in accordance with the terms of Sections 7.4(b) — (f) shall be delivered to Escrow Agent no later than 5:00 p.m. E.D.S.T. on the last business day prior to the Closing Date.

 

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ARTICLE 8

 

CONDITIONS TO CLOSING

 

8.1                               Conditions to Seller’s Obligations.  Seller’s obligation to close the Transaction is conditioned on all of the following, any or all of which may be waived by Seller by an express written waiver, at its sole option:

 

(a)                                 Representations True.  All representations and warranties made by Buyer in this Agreement shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date except to the extent that they expressly relate to an earlier date;

 

(b)                                 Buyer’s Financial Condition.  No petition shall have been filed by or against Buyer or an Affiliate under the Federal Bankruptcy Code or any similar state or federal Law, whether now or hereafter existing; and

 

(c)                                  Buyer’s Deliveries Complete.  Buyer shall have delivered the funds required hereunder and all of the documents to be executed by Buyer set forth in Section 7.4 and shall have performed all other covenants, undertakings and obligations, and complied with all conditions required by this Agreement, to be performed or complied with by Buyer at or prior to the Closing.

 

8.2                               Conditions to Buyer’s Obligations.  Buyer’s obligation to close the Transaction is conditioned on all of the following, any or all of which may be waived by Buyer by an express written waiver, at its sole option:

 

(a)                                 Representations True.  Subject to the provisions of Section 9.3, all representations and warranties made by Seller in this Agreement, as the same may be amended or modified as provided in Section 9.3, shall be true and correct in all material respects on and as of the Closing Date, as if made on and as of such date except to the extent that they expressly relate to an earlier date;

 

(b)                                 Title Conditions Satisfied.  At the time of the Closing, title to the Property shall be as required by ARTICLE 4 of this Agreement; and

 

(c)                                  Seller’s Deliveries Complete.  Seller shall have delivered all of the documents to be executed by Seller and other items required pursuant to Section 7.3 and shall have performed all other covenants, undertakings and obligations, and complied with all conditions required by this Agreement, to be performed or complied with by Seller at or prior to the Closing.

 

8.3                               Waiver of Failure of Conditions Precedent.  At any time or times on or before the date specified for the satisfaction of any condition, Seller or Buyer may elect in writing to waive the benefit of any such condition set forth in Section 8.1 or Section 8.2, respectively.  By closing the Transaction, Buyer shall be conclusively deemed to have waived the benefit of any remaining unfulfilled conditions set forth in Section 8.2.  In the event any of the conditions set forth in Section 8.1 or Section 8.2 are neither waived nor 

 

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fulfilled, Seller or Buyer (as appropriate) may exercise such rights and remedies, if any, that such party may have pursuant to the terms of ARTICLE 11 hereof.

 

8.4                               Approvals Not a Condition to Buyer’s Performance.  Subject to Buyer’s right to terminate this Agreement prior to the expiration of the Due Diligence Period in accordance with the terms of ARTICLE 5 hereof, Buyer acknowledges and agrees that its obligation to perform under this Agreement is not contingent upon Buyer’s ability to obtain any (a) governmental or quasi-governmental approval of changes or modifications in use or zoning, or (b) modification of any existing land use restriction, or (c) consents to assignments of any service contracts, or (d) endorsements to the Owner’s Title Policy, or (e) financing for acquisition of the Property.  Notwithstanding the foregoing, delivery of the MHPFB consent listed in Section 7.3(k) is a condition to Buyer’s performance.

 

ARTICLE 9

 

REPRESENTATIONS AND WARRANTIES

 

9.1                               Buyer’s Representations.  Buyer represents and warrants to, and covenants with, Seller as follows:

 

9.1.1                     Buyer’s Authorization.  Buyer (a) was formed or organized and is validly existing and in good standing under the laws of its state of formation or organization and, prior to Closing, the state in which the Property is located, (b) is authorized to consummate the Transaction and fulfill all of its obligations hereunder and under all documents contemplated hereunder to be executed by Buyer, and (c) has all necessary power to execute and deliver this Agreement and all documents contemplated hereunder to be executed by Buyer, and to perform all of its obligations hereunder and thereunder.  This Agreement and all documents contemplated hereunder to be executed by Buyer have been duly authorized by all requisite partnership, corporate or other required action on the part of Buyer and are the valid and legally binding obligation of Buyer, enforceable in accordance with their respective terms.  Neither the execution and delivery of this Agreement and all documents contemplated hereunder to be executed by Buyer, nor the performance of the obligations of Buyer hereunder or thereunder, will result in the violation of any Law or any provision of the organizational documents of Buyer or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Buyer is bound.

 

9.1.2                     Buyer’s Financial Condition.  No petition has been filed by or against Buyer or an Affiliate under the Federal Bankruptcy Code or any similar state or federal Law.

 

9.2                               Seller’s Representations.  Seller represents and warrants to Buyer as follows:

 

9.2.1                     Seller’s Authorization.  Seller (a) was formed and is validly existing and in good standing under the laws of its state of formation and the state in which the Property is located, (b) is authorized to consummate the Transaction and fulfill all of its obligations hereunder and under all documents contemplated hereunder to 

 

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be executed by Seller, and (c) has all necessary power to execute and deliver this Agreement and all documents contemplated hereunder to be executed by Seller, and to perform all of its obligations hereunder and thereunder.  This Agreement and all documents contemplated hereunder to be executed by Seller have been duly authorized by all requisite partnership, corporate or other required action on the part of Seller and are the valid and legally binding obligation of Seller, enforceable in accordance with their respective terms.  Neither the execution and delivery of this Agreement and all documents contemplated hereunder to be executed by Seller, nor the performance of the obligations of Seller hereunder or thereunder, will result in the violation of any Law or any provision of the organizational documents of Seller or will conflict with any order or decree of any court or governmental instrumentality of any nature by which Seller is bound.

 

9.2.2                     Litigation.  Except as listed in Exhibit L attached hereto and incorporated herein by this reference, Seller has not received any written notice of any current or pending litigation against Seller which would, in the reasonable judgment of Seller, if determined adversely to Seller, materially and adversely affect Buyer or the Property following the Closing.

 

9.2.3                     Contracts.  As of the date of this Agreement, Seller has not entered into any contracts or agreements for services (including equipment leases) to or for the Property which will be binding upon Buyer after the Closing, other than the Contracts listed in Exhibit B attached hereto.

 

9.2.4                     Leases.  As of the date of this Agreement, Seller has not entered into any Leases other than the Leases listed on Exhibit O attached hereto.  The rent roll set forth in Exhibit O is true, accurate and complete in all material respects.

 

9.2.5                     Violations.  Except for violations cured or remedied on or before the date hereof and except as listed in Exhibit L attached hereto, as of the date of this Agreement, Seller has not received any written notice from any governmental authority of any violation of any Law or change in zoning applicable to the Property.

 

9.2.6                     Personal Property.  The Personal Property is free and clear of liens, security interests and other encumbrances (except for any Personal Property subject to equipment leases that are listed on Exhibit B).

 

9.2.7                     Pending Condemnation.  Except as listed in Exhibit L, Seller has not been served with legal process in connection with any pending condemnation proceeding with respect to the Property.

 

9.2.8                     Executive Order 13224.  Neither Buyer, nor any assignee of Buyer, nor any Person holding any legal or beneficial interest whatsoever in Buyer, or in any assignee of Buyer, is included in, owned by, controlled by, acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the Persons referred to or described in 

 

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Executive Order 13224 — Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended.

 

9.3                               General Provisions.

 

9.3.1                     No Representation as to Leases.  Seller does not represent or warrant that any particular Lease or Leases will be in force or effect on the Closing Date or that the tenants will have performed their obligations thereunder, and none of the foregoing shall be conditions precedent to Buyer’s obligations hereunder.

 

9.3.2                     Definition of “Seller’s Knowledge” and “Written Notice” to Seller.  All references in this Agreement to “Seller’s knowledge” or words of similar import shall refer only to the conscious actual knowledge of the Designated Representative and shall not be construed to refer to the knowledge of any other member, officer, director, shareholder, employee, agent, property manager or representative of Seller, its partners or members (including, without limitation, Seller’s counsel and Broker), or of any affiliate of any of the foregoing, or to impose or have imposed upon the Designated Representative any duty to investigate the matters to which such knowledge, or the absence thereof, pertains, including without limitation the Documents or the contents of files maintained by the Designated Representative.  There shall be no personal liability on the part of the Designated Representative arising out of any representations or warranties made herein.  All references herein to “written notice” having been given to Seller shall include only those notices received at the Property by Seller’s property manager.

 

9.3.3                     Seller’s Representations Deemed Modified.  To the extent that Buyer knows or is Deemed to Know prior to the expiration of the Due Diligence Period that Seller’s representations and warranties are inaccurate, untrue or incorrect in any way, such representations and warranties shall be deemed modified to reflect Buyer’s knowledge or deemed knowledge, as the case may be.

 

9.3.4                     Seller’s Recertification of Seller’s Warranties.  At Closing, Seller shall remake Seller’s Warranties as of the date of Closing (with such modifications as may be required to reflect any changes in the matters represented by Seller), which remade Seller’s Warranties shall be subject to Section 9.3.1, Section 9.3.2 and Section 9.3.3.

 

9.3.5                     Notice of Breach; Seller’s Right to Cure.  If after the expiration of the Due Diligence Period but prior to the Closing, Buyer or any Buyer’s Representative obtains actual knowledge that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, Buyer shall give Seller written notice thereof within five (5) business days of obtaining such knowledge (but, in any event, prior to the Closing).  If at or prior to the Closing, Seller obtains actual knowledge that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, Seller shall give Buyer written notice thereof within five 

 

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(5) business days of obtaining such knowledge (but, in any event, prior to the Closing).  In either such event, Seller shall have the right (but not the obligation except to the extent required by Section 10.2.5 hereof) to cure such misrepresentation or breach and shall be entitled to a reasonable extension of the Closing (not to exceed sixty (60) days) for the purpose of such cure.  Subject to performance of Seller’s obligations set forth in Section 10.2.5 hereto, if Seller is unable or unwilling to so cure any misrepresentation or breach of warranty, then Buyer, as its sole remedy for any and all such materially untrue, inaccurate or incorrect representations or warranties, shall elect either:  (a) to waive such misrepresentations or breaches of representations and warranties and consummate the Transaction without any reduction of or credit against the Purchase Price; or (b) to terminate this Agreement in its entirety by written notice given to Seller on the Closing Date, in which event this Agreement shall be terminated, the Deposit shall be returned to Buyer and, thereafter, neither party shall have any further rights or obligations hereunder except as provided in any section hereof that by its terms expressly provides that it survives any termination of this Agreement.  If any such representation or warranty is untrue, inaccurate or incorrect but is not untrue, inaccurate or incorrect in any material respect, Buyer shall be deemed to waive such misrepresentation or breach of warranty and Buyer shall be required to consummate the Transaction without any reduction of or credit against the Purchase Price.  The untruth, inaccuracy or incorrectness of a representation or warranty shall be deemed material only if Buyer’s aggregate damages resulting from the untruth, inaccuracy or incorrectness of any of the representations or warranties exceed, or are reasonably estimated to exceed, Twenty-five Thousand Dollars ($25,000.00) (the “Materiality Threshold”).

 

9.3.6                     Survival; Limitation on Seller’s Liability.  The representations and warranties made by Seller in Section 9.2 shall survive the Closing and not be merged therein for a period of one-hundred and eighty (180) days (the “Claims Survival Period”), and Seller shall only be liable to Buyer hereunder for a breach of a representation and warranty made herein or in any of the documents executed by Seller at the Closing with respect to which a claim is made by Buyer against Seller on or before the expiration of the Claims Survival Period.  Anything in this Agreement to the contrary notwithstanding, the Maximum Aggregate Liability of Seller for Seller’s breaches of representations and warranties herein or in any documents executed by Seller at Closing shall be limited to Two Hundred Thousand Dollars ($200,000.00) as set forth in Section 14.15 hereof.  Notwithstanding the foregoing, however, if the Closing occurs, Buyer hereby expressly waives, relinquishes and releases any right or remedy available to it at law, in equity, under this Agreement or otherwise to make a claim against Seller for damages that Buyer may incur, or to rescind this Agreement and the Transaction, as the result of any of Seller’s representations or warranties being untrue, inaccurate or incorrect if (a) Buyer knew or is Deemed to Know that such representation or warranty was untrue, inaccurate or incorrect at the time of the Closing, or (b) Buyer’s damages as a result of such representations or warranties being untrue, inaccurate or incorrect are less than, or are reasonably estimated to 

 

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aggregate less than, the Materiality Threshold of Twenty-Five Thousand Dollars ($25,000.00).

 

ARTICLE 10

 

COVENANTS

 

10.1                        Buyer’s Covenants.  Buyer hereby covenants as follows:

 

10.1.1              Buyer’s Indemnity; Delivery of Reports.  Buyer hereby agrees to indemnify, defend, and hold Seller and each of the other Seller Parties free and harmless from and against any and all Losses arising out of or resulting from the breach by Buyer of the terms of the Access Agreement, which indemnity shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement.  Buyer shall deliver promptly to Seller, at Seller’s request, copies of all third-party reports commissioned by or on behalf of Buyer evidencing the results of its Due Diligence.

 

10.1.2              Buyer shall use its best efforts to obtain any consents or approvals it is required to obtain from the MHPFB in this Agreement and shall use its best efforts to assist Seller in obtaining any similar consents and approvals required to be obtained by Seller hereunder.

 

10.2                        Seller’s Covenants.  Seller hereby covenants as follows:

 

10.2.1              Contracts.  Without Buyer’s prior consent, which consent shall not be unreasonably withheld, between the expiration of the Due Diligence Period and the Closing Date, Seller shall not extend, renew, replace or modify any Contract unless such contract (as so extended, renewed, replaced or modified) is terminable by the owner of the Property without penalty on not more than thirty (30) days’ advance notice, or is entered into in the ordinary course of business, in accordance with past practices, and is for a term of less than one (1) year.  In any event, Seller shall assign to Buyer at Closing all of Seller’s rights under (i) an existing service contract with Otis Elevator Company and (ii) those of the Contracts that Buyer notifies Seller in writing on or before expiration of the Due Diligence Period that Buyer wishes to have assigned to it, unless Seller is relieved of any obligation to make such assignment by a provision hereof; and Seller shall cause to be cancelled at Closing all other Contracts.

 

10.2.2              Maintenance of Property.  Except to the extent Seller is relieved of such obligations by ARTICLE 12 hereof, between the expiration of the Due Diligence Period and the Closing Date, Seller shall maintain and keep the Property in a manner consistent with Seller’s past practices with respect to the Property.

 

10.2.3              Termination of Management Agreement.  As of the Closing Date, Seller shall terminate and satisfy all obligations of Owner under Seller’s property management agreement.  Seller and Property Manager shall have the right to remove all furniture, equipment, supplies and other tangible Personal Property 

 

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from the office maintained by Property Manager, together with all of their proprietary software and licensed software from computers at the Property.

 

10.2.4              Leasing.  Pending Closing, Seller may continue to lease vacant residential units at the Property in accordance with Seller’s business judgment, including, without limitation, adjustment of lease offering terms to respond to market conditions.

 

10.2.5              Lease Enforcement.  Seller shall have the right, but not the obligation, to enforce the rights and remedies of the landlord under any Lease by summary proceedings or otherwise (including, without limitation, the right to remove any tenant), and to apply all or any portion of any security deposits then held by Seller toward any loss or damage incurred by Seller by reasons of any defaults by tenants, and the exercise of any such rights or remedies shall not affect the obligations of Buyer under this Agreement in any manner or entitle Buyer to a reduction in, or credit or allowance against, the Purchase Price or give rise to any other claim on the part of Buyer.

 

10.2.6              Seller shall use its best efforts to assist Buyer in obtaining any consents or approvals Buyer is required to obtain from the MHPFB in this Agreement.

 

10.3                        Mutual Covenants.

 

10.3.1              Confidentiality.  The Access Agreement is hereby incorporated in this Agreement by reference and Seller and Buyer agree to continue to be bound by the terms thereof binding on such parties.

 

10.3.2              Publicity.  Seller and Buyer each hereby covenant that:  (a) prior to Closing, neither Seller nor Buyer, nor any of their respective Representatives, consultants or affiliates shall issue any Release (as hereinafter defined) with respect to the Transaction without the prior consent of the other, except to the extent required by applicable Law, and (b) after the Closing, any Release issued by either Seller or Buyer, or any of their respective Representative, consultants or affiliates that provides more information than would be available in the public records as a result of the Closing shall be subject to the review and approval of both parties (which approval shall not be unreasonably withheld).  If either Seller or Buyer is required by applicable Law to issue a Release, such party shall, at least two (2) business days prior to the issuance of the same, deliver a copy of the proposed Release to the other party for its review.  As used herein, the term “Release” shall mean any press release or public statement with respect to the Transaction or this Agreement.

 

10.3.3              Broker.  Seller and Buyer expressly acknowledge that Broker has acted as Seller’s exclusive broker with respect to the Transaction and with respect to this Agreement and that Seller shall pay any brokerage commission due to Broker in accordance with the separate agreement between Seller and Broker.  Seller agrees to hold Buyer harmless and indemnify Buyer from and against any and all Losses suffered or incurred by Buyer as a result of any claims by any party claiming to 

 

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have represented Seller as broker in connection with the Transaction.  Buyer agrees to hold Seller harmless and indemnify Seller from and against any and all Losses suffered or incurred by Seller as a result of any claims by any party (other than Broker) claiming to have represented Buyer as broker in connection with the Transaction.

 

10.3.4              Tax Protests; Tax Refunds and Credits.  Seller shall have the right to continue and to control the progress of and to make all decisions with respect to any contest of Taxes and real estate taxes for the Property for all prior Tax Years.  Buyer shall have the right to control the progress of and to make all decisions with respect to any tax contest of the real estate taxes and personal property taxes for the Property due and payable in all Tax Years after the Tax Year in which the Closing occurs.  Either Seller or Buyer may require a contest of the Taxes, but Seller shall control any such process as above provided.  All real estate tax refunds and credits received after Closing with respect to the Property shall be applied in the following order of priority:  first, to pay the costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with obtaining such tax refund or credit; and second, apportioned between Buyer and Seller as follows:

 

(a)                                 with respect to any refunds or credits attributable to the Taxes, such refunds and credits shall be apportioned between Buyer and Seller in proportion to the number of days in such Tax Year that each party owned the Property (with title to the Property being deemed to have passed as of the Cut-Off Time);

 

(b)                                 with respect to any refunds or credits attributable to real estate taxes assessed for any Tax Year prior to the Tax Year in which the Closing occurs, Seller shall be entitled to the entire refunds and credits; and

 

(c)                                  with respect to any refunds or credits attributable to real estate taxes assessed for any Tax Year after the Tax Year in which the Closing occurs, Buyer shall be entitled to the entire refunds and credits.

 

10.4                        Survival.  The provisions of this ARTICLE 10 shall survive the Closing (and not be merged therein) or earlier termination of this Agreement.

 

ARTICLE 11

 

DEFAULT

 

11.1                        Buyer’s Default.  If, on or before the Closing Date, (i) Buyer is in default of any of its obligations hereunder, or (ii) the Closing otherwise fails to occur by reason of Buyer’s failure or refusal to perform its obligations hereunder, then Seller may elect, as its sole and exclusive remedy, either to:  (a) terminate this Agreement in its entirety by written notice to Buyer; or (b) waive the condition and proceed to close the Transaction.  If this Agreement is so terminated, then Seller shall be entitled to retain the Deposit as 

 

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liquidated damages, and thereafter neither party to this Agreement shall have any further rights or obligations hereunder other than any arising under any section or provision herein that expressly provides that it survives the termination of this Agreement.

 

11.2                        Seller’s Default.  If, on or before the Closing Date, (i) Seller is in default of any of its obligations hereunder, or (ii)  the Closing otherwise fails to occur by reason of Seller’s failure or refusal to perform its obligations hereunder in a prompt and timely manner, then Buyer may elect, as its sole and exclusive remedy, to:  (a) terminate this Agreement in its entirety by written notice to Seller, promptly after which the Deposit shall be returned to Buyer, and thereafter neither party to this Agreement shall have any further rights or obligations hereunder other than any arising under any section or provision herein that expressly provides that it survives the termination of this Agreement; or (b) waive the condition and proceed to close the Transaction; or (c) seek specific performance of this Agreement by Seller, Buyer specifically acknowledging that Buyer shall have no right to damages pursuant to this Section 11.2 or otherwise under this Agreement.  As a condition precedent to exercise by Buyer of any right Buyer may have to bring an action for specific performance hereunder, Buyer must commence such an action within thirty (30) days after the occurrence of Seller’s default.  Buyer agrees that its failure timely to commence such an action for specific performance within such thirty (30) day period shall be deemed a waiver by Buyer of its right to commence an action for specific performance. Seller and Buyer expressly acknowledge that a breach of any of Seller’s Warranties arising prior to the Closing Date shall not constitute a “default”  for purposes of this Section 11.2 and that any such breach shall be modified by Section 9.3.3,  as applicable,  and subject to Section 9.3.5 above.

 

ARTICLE 12

 

CONDEMNATION/CASUALTY

 

12.1                        Condemnation.

 

12.1.1              Right to Terminate.  If, prior to the Closing Date, all or any significant portion (as hereinafter defined) of the Project is taken by eminent domain (or is the subject of a pending taking in which Seller has been served with legal process, but which has not yet been consummated), Seller shall notify Buyer in writing of such fact promptly after obtaining knowledge thereof, and, thereafter, either Buyer or Seller shall have the right to terminate this Agreement in its entirety by giving written notice to the other no later than ten (10) days after the giving of Seller’s notice, and the Closing Date shall be extended, if necessary, to provide sufficient time for Buyer or Seller to make such election.  The failure by Buyer and Seller to so elect in writing to terminate this Agreement within such ten (10) day period shall be deemed an election not to terminate this Agreement.  For purposes hereof, a “significant portion” of the Project shall mean any interest in the Project except a de minimis interest the taking of which has no material effect on the use or operation of such Project.

 

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12.1.2              Assignment of Proceeds.  If (a) neither Seller nor Buyer elects to terminate this Agreement as aforesaid if all or any significant portion of the Property is taken, or (b) a portion of the Property not constituting a significant portion of the Property is taken or becomes subject to a pending taking by eminent domain, there shall be no abatement of the Purchase Price; provided, however, that, at the Closing, Seller shall pay to Buyer the amount of any award for or other proceeds on account of such taking which have been actually paid to Seller prior to the Closing Date as a result of such taking (less all costs and expenses, including attorneys’ fees and costs, incurred by Seller as of the Closing Date in obtaining payment of such award or proceeds) and, to the extent such award or proceeds have not been paid, Seller shall assign to Buyer at the Closing (without recourse to Seller) the rights of Seller to, and Buyer shall be entitled to receive and retain, all awards for the taking of the Property or such portion thereof.

 

12.2                        Destruction or Damage.  In the event any portion of the Project is damaged or destroyed by casualty prior to the Closing Date, Seller shall notify Buyer in writing of such fact promptly after obtaining knowledge thereof.  If any such damage or destruction (a) is an insured casualty and (b) would cost less than five percent (5%) of the Purchase Price to repair or restore (a “Non-Material Casualty”), then this Agreement shall remain in full force and effect and Buyer shall acquire the Property upon the terms and conditions set forth herein.  In such event, Buyer shall receive a credit against the Purchase Price equal to the deductible amount applicable under Seller’s casualty policy less all costs and expenses, including attorneys’ fees and costs, incurred by Seller as of the Closing Date in connection with the negotiation and/or settlement of the casualty claim with the insurer (the “Realization Costs”), and Seller shall assign to Buyer all of Seller’s right, title and interest in and to all proceeds of insurance on account of such damage or destruction.  In the event the Project is damaged or destroyed prior to the Closing Date by a casualty that is not a Non-Material Casualty, then, notwithstanding anything to the contrary set forth above in this section, Buyer shall have the right, at its option, to terminate this Agreement in its entirety.  Buyer shall have thirty (30) days after Seller notifies Buyer that a casualty has occurred to make such election by delivery to Seller of a written election notice (the “Election Notice”), and the Closing Date shall be extended, if necessary, to provide sufficient time for Buyer to make such election.  The failure by Buyer to deliver the Election Notice within such thirty (30) day period shall be deemed an election not to terminate this Agreement.  In the event Buyer elects not to terminate this Agreement as set forth above, this Agreement shall remain in full force and effect, Seller shall assign to Buyer all of Seller’s right, title and interest in and to any and all proceeds of insurance on account of such damage or destruction, if any, and, if the casualty was an insured casualty, Buyer shall receive a credit against the Purchase Price equal to the deductible or self-insured amount (less the Realization Costs) under Seller’s casualty insurance policy.

 

12.3                        Insurance.  Seller shall maintain the property insurance coverage currently in effect for the Property through the Closing Date.

 

12.4                        Effect of Termination.  If this Agreement is terminated pursuant to Section 12.1 or Section 12.2, the Deposit, subject to, and except as otherwise provided in Section 3.1 above, shall be returned to Buyer.  Upon such refund, this Agreement shall terminate in

 

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its entirety and neither party to this Agreement shall have any further rights or obligations hereunder other than any arising under any section herein which expressly provides that it shall survive the termination of this Agreement.

 

12.5                        Waiver.  The provisions of this ARTICLE 12 supersede the provisions of any applicable Laws with respect to the subject matter of this ARTICLE 12.

 

ARTICLE 13

 

ESCROW

 

The Deposit and any other sums which the parties agree shall be held in escrow (herein collectively called the “Escrow Deposits”), together with all interest earned thereon, shall be held by the Escrow Agent, in trust, and disposed of only in accordance with the following provisions:

 

(a)                                 The Escrow Agent shall invest the Escrow Deposits in government insured interest-bearing instruments satisfactory to both Buyer and Seller, shall not commingle the Escrow Deposits with any funds of the Escrow Agent or others, and shall promptly provide Buyer and Seller with confirmation of the investments made.

 

(b)                                 If the Closing occurs, the Escrow Agent shall deliver the Escrow Deposits to, or upon the instructions of, Seller on the Closing Date.

 

(c)                                  If for any reason the Closing does not occur, the Escrow Agent shall deliver the Escrow Deposits and all interest earned thereon to Seller or Buyer only upon receipt of a written demand therefor from such party, subject to the following provisions of this ARTICLE 13(c).  If for any reason the Closing does not occur and either party makes a written demand upon the Escrow Agent for payment of the Escrow Deposits and the interest earned thereon, the Escrow Agent shall give written notice to the other party of such demand.  If the Escrow Agent does not receive a written objection from the other party to the proposed payment within ten (10) days after the giving of such notice, the Escrow Agent is hereby authorized to make such payment.  If the Escrow Agent does receive such written objection within such period, the Escrow Agent shall continue to hold such amount until otherwise directed by written instructions signed by Seller and Buyer or a final judgment of a court.

 

(d)                                 The parties acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that the Escrow Agent shall not be deemed to be the agent of either of the parties, and that the Escrow Agent shall not be liable to either of the parties for any action or omission on its part taken or made in good faith, and not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss, cost or expense incurred by Seller or Buyer resulting from the Escrow Agent’s mistake of law respecting the Escrow Agent’s scope or nature of its duties.  Seller and Buyer shall jointly and severally indemnify and hold the Escrow Agent harmless from and against all Losses

 

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incurred in connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or made by the Escrow Agent in bad faith, in disregard of this Agreement or involving negligence on the part of the Escrow Agent.

 

(e)                                  Buyer shall pay any income taxes on any interest earned on the Escrow Deposits.  Buyer represents and warrants to the Escrow Agent that its taxpayer identification number is                     .

 

(f)                                   The Escrow Agent has executed this Agreement in the place indicated on the signature page hereof in order to confirm that the Escrow Agent has received and shall hold the Escrow Deposits and the interest earned thereon, in escrow, and shall disburse the Escrow Deposits, and the interest earned thereon, pursuant to the provisions of this ARTICLE 13.

 

ARTICLE 14

 

MISCELLANEOUS

 

14.1                        Assignment.  Buyer shall not assign this Agreement or its rights hereunder to any individual or entity, except an affiliate of Buyer, without the prior written consent of Seller, which consent Seller may grant or withhold in its sole discretion, and any such assignment shall be null and void ab initio.  In the event of any permitted assignment by Buyer, any assignee shall assume any and all obligations and liabilities of Buyer under this Agreement but, notwithstanding such assumption, Buyer shall continue to be liable hereunder, and Buyer shall provide Seller written notice and a copy of such assignment at least five (5) business days before Closing.

 

14.2                        Designation Agreement.  Section 6045(e) of the Code and the regulations promulgated thereunder (herein collectively called the “Reporting Requirements”) require an information return to be made to the United States Internal Revenue Service, and a statement to be furnished to Seller, in connection with the Transaction.  Escrow Agent (“Agent”) is either:  (x) the person responsible for closing the Transaction (as described in the Reporting Requirements); or (y) the disbursing title or escrow company that is most significant in terms of gross proceeds disbursed in connection with the Transaction (as described in the Reporting Requirements).  Accordingly:

 

(a)                                 Agent is hereby designated as the “Reporting Person” (as defined in the Reporting Requirements) for the Transaction.  Agent shall perform all duties that are required by the Reporting Requirements to be performed by the Reporting Person for the Transaction.

 

(b)                                 Seller and Buyer shall furnish to Agent, in a timely manner, any information requested by Agent and necessary for Agent to perform its duties as Reporting Person for the Transaction.

 

(c)                                  Agent hereby requests Seller to furnish to Agent Seller’s correct taxpayer identification number.  Seller acknowledges that any failure by Seller to provide

 

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Agent with Seller’s correct taxpayer identification number may subject Seller to civil or criminal penalties imposed by law.  Accordingly, Seller hereby certifies to Agent, under penalties of perjury, that Seller’s correct taxpayer identification number is 20-1345501.

 

(d)                                 Each of the parties hereto shall retain this Agreement for a period of four (4) years following the calendar year during which the Closing occurs.

 

14.3                        Survival/Merger.  Except for the provisions of this Agreement which are explicitly stated to survive the Closing, (a) none of the terms of this Agreement shall survive the Closing, and (b) the delivery of the Deed and any other documents and instruments by Seller and the acceptance thereof by Buyer shall effect a merger and be deemed the full performance and discharge of every obligation on the part of Buyer and Seller to be performed hereunder.

 

14.4                        Integration; Waiver.  This Agreement, together with the Exhibits hereto, embodies and constitutes the entire understanding among the parties with respect to the Transaction, and all prior agreements, understandings, representations and statements, oral or written, are merged into this Agreement.  Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by the party against whom the enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument.  No waiver by any party hereto of any failure or refusal by the other party to comply with its obligations hereunder shall be deemed a waiver of any other or subsequent failure or refusal to so comply.

 

14.5                        Governing Law.  This Agreement shall be governed by, and construed in accordance with, the Laws of the Commonwealth of Massachusetts.

 

14.6                        Captions Not Binding; Exhibits.  The captions in this Agreement are inserted for reference only and in no way define, describe or limit the scope or intent of this Agreement or of any of the provisions hereof.  All Exhibits attached hereto shall be incorporated by reference as if set out herein in full.

 

14.7                        Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

14.8                        Severability.  If any term or provision of this Agreement or the application thereof to any Persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

 

14.9                        Notices.  Any notice, request, demand, consent, approval and other communications under this Agreement shall be in writing, and shall be deemed duly given or made at the time and on the date when received by facsimile (provided that the sender of such communication shall send a copy of such communication to the appropriate parties within

 

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one (1) business day of such facsimile) or when personally delivered as shown on a receipt therefor (which shall include delivery by a nationally recognized overnight delivery service) or upon receipt (or refusal of delivery) after being mailed by prepaid certified mail, return receipt requested, to the address for each party set forth below.  Any party, by written notice to the other in the manner herein provided, may designate an address different from that set forth below.

 

IF TO BUYER:

 

Hamilton Green Apartments, LLC

c/o The Hamilton Company Inc.

39 Brighton Avenue

Boston, MA  02134

Attention:  Carl A. Valeri, President

Telephone:  (617) 783-0039

Facsimile:  (617) 783-0568

 

WITH A COPY TO:

 

Saul Ewing LLP

131 Dartmouth Street, Suite 501

Boston, MA  02116

Attn:  Sally E. Michael, Esq.

Telephone:  (617) 723-3300

Facsimile:  (617) 723-4151

 

IF TO SELLER:

 

Windsor Green at Andover LLC

c/o GID

125 High Street, High Street Tower, 27th Floor

Boston, MA  02110

Attention:  Christina Reale, Asset Manager and Assistant Vice President

Telephone:  (617) 854-6652

Facsimile:  (617) 589-9504

 

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WITH A COPY TO:

 

GID

125 High Street

High Street Tower, 27th Floor

Boston, MA  02110

Attention:  Robert S. Farrington, Jr., Esq., Senior Vice President, Legal

Telephone:  (617) 854-6694

Facsimile:  (617) 557-1429

 

IF TO ESCROW AGENT:

 

Commonwealth Land Title Insurance Company

131 Dartmouth Street, Suite 501

Boston, MA  02116

Attention:  William Bonaccorso

Telephone:  (617) 912-0956

Facsimile:  (617) 367-3417

 

14.10                 Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which counterparts taken together shall constitute one and the same agreement.

 

14.11                 No Recordation.  Seller and Buyer each agrees that neither this Agreement nor any memorandum or notice hereof shall be recorded, and Buyer agrees:  (a) not to file any notice of pendency or other instrument (other than a judgment) against the Property or any portion thereof in connection herewith; and (b) to indemnify Seller against all Losses incurred by Seller by reason of the filing by Buyer of such notice of pendency or other instrument.

 

14.12                 Additional Agreements; Further Assurances.  Subject to the terms and conditions herein provided, each of the parties hereto shall execute and deliver such documents as the other party shall reasonably request in order to consummate and make effective the Transaction; provided, however, that the execution and delivery of such documents by such party shall not result in any additional liability or cost to such party.

 

14.13                 Construction.  The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendment hereof or Exhibit hereto.

 

14.14                 Business Day.  As used herein, the term “business day” shall mean any day other than a Saturday, Sunday or any federal or Commonwealth of Massachusetts holiday.  If any period expires on a day which is not a business day or any event or condition is required by the terms of this Agreement to occur or be fulfilled on a day which is not a business

 

29

 

day, such period shall expire or such event or condition shall occur or be fulfilled, as the case may be, on the next succeeding business day.

 

14.15                 Maximum Aggregate Liability.  Prior to Closing, the liabilities of the parties shall be governed by Section 9.3.3,  Section 9.3.5 and ARTICLE 11 hereof, as applicable.  Once Closing has occurred, notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of Seller and the Seller Parties, and the maximum aggregate amount which may be awarded to and collected by Buyer, in connection with the Transaction or the Property, under this Agreement and under any and all documents executed pursuant hereto or in connection herewith (including, without limitation, in connection with the breach of any of Seller’s Warranties or any other representations or covenants under this Agreement made by Seller for which a claim is timely made by Buyer) shall not exceed Two Hundred Thousand Dollars ($200,000.00) in actual damages suffered by Buyer arising directly as a result of such breach by Seller, the parties agreeing that Seller shall have no liability whatsoever for matters waived by Buyer pursuant to Section 9.3.6 hereof or for consequential or punitive damages, and no claim may be made by Buyer unless Buyer’s damages are reasonably estimated to aggregate more than the Materiality Threshold of Twenty-Five Thousand Dollars ($25,000.00).  The provisions of this section shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement.  Any claim by Buyer against Seller as described in this Section 14.15 must be made by notice to Seller given prior to the expiration of the Claims Survival Period.

 

14.16                 JURISDICTION.  WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS RELATING TO THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND SELLER HEREUNDER (“PROCEEDINGS”) EACH PARTY IRREVOCABLY (A) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE COUNTY OF ESSEX, COMMONWEALTH OF MASSACHUSETTS AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS, AND (B) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDINGS BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT SUCH PROCEEDINGS HAVE BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDINGS, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY.

 

14.17                 WAIVER OF JURY TRIAL.  EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND SELLER HEREUNDER.

 

14.18                 Facsimile Signatures.  Signatures to this Agreement transmitted by telecopy shall be valid and effective to bind the party so signing.  Each party agrees to promptly deliver an execution original of this Agreement with its actual signature to the other party, but a

 

30

 

failure to do so shall not affect the enforceability of this Agreement, it being expressly agreed that each party to this Agreement shall be bound by its own telecopied signature and shall accept the telecopied signature of the other party to this Agreement.

 

14.19                 Riders.  Any riders attached to this Agreement are incorporated in this Agreement by reference.

 

14.20                 Attorneys’ Fees.  Should either party employ attorneys to enforce any of the provisions hereof, the party against whom any final judgment is entered agrees to pay the prevailing party all reasonable costs, charges and expenses, including attorneys’ fees and expenses and court costs, expended or incurred in connection therewith.

 

14.21                 Windsor.  There is expressly excluded from the Transaction:  (i) the names “Windsor”, “Windsor Communities” and any variation thereof; (ii) all computers used in connection with the operation of the Property and all computer software; (iii) all operating and marketing materials, records and reports which are proprietary to the operation and management of the Property by Windsor Property Management Company; and (iv) any text, graphics, artwork or photographs of the exterior or interior of the Property located at [www.windsorcommunities/apartments/boston/andover/].  Buyer shall temporarily cover all signage from the Property utilizing or containing the name Windsor within two (2) business days of Closing.  Buyer shall permanently remove all signage from the Property utilizing or containing “Windsor” within thirty (30) days after the Closing Date, failing which Seller may remove all such signage, at Buyer’s expense, upon fifteen (15) days’ prior written notice.  The provisions of this Section 14.21 shall survive the Closing.

 

14.22                 Exchange Transaction.  Buyer and Seller agree to cooperate with each other so that Seller may dispose of the Property and/or Buyer may acquire the Buyer in a transaction intended to qualify in whole or in part as a tax deferred exchange pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended.  Such cooperation shall include, but not be limited to, executing and delivering any and all documents required by the exchange trustee or intermediary; provided, however, that the non-exchanging party shall not be required to incur any additional expense other than to de minimis extent (unless the exchanging party agrees to reimburse the non-exchanging party for same at the Closing) or liability as a result of such cooperation, exchange or assignment.

 

[SIGNATURE PAGE FOLLOWS]

 

31

 

IN WITNESS WHEREOF, each party hereto has caused this Agreement to be duly executed as of the date(s) set forth below to be effective as of the day and year first above written.

 

	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a
    
	
 
    	
Delaware   limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BUYER:
    
	
 
    	
 
    
	
 
    	
HAMILTON   GREEN APARTMENTS, LLC, a 
   Massachusetts limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
NewReal, Inc.,   a Massachusetts corporation,
    
	
 
    	
 
    	
its   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Ronald   Brown
    
	
 
    	
 
    	
Title:
    	
President
    

 

32

 

AGREEMENT OF ESCROW AGENT

 

The undersigned has executed this Agreement solely to confirm its agreement to (a) hold the Escrow Deposits in escrow in accordance with the provisions hereof and (b) comply with the provisions of ARTICLE 13 and Section 14.2.

 

	
 
    	
COMMONWEALTH   LAND TITLE
   INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

33

 

Schedule 1

 

Index of Defined Terms

 

	
Term
    	
 
    	
Reference
    
	
Additional   Deposit
    	
 
    	
3.1
    
	
Agent
    	
 
    	
14.2
    
	
Agreement
    	
 
    	
Introductory   Paragraph
    
	
Assignment   of Intangible Property
    	
 
    	
7.3(d)
    
	
Assignment   of Leases
    	
 
    	
7.3(c)
    
	
Bill   of Sale
    	
 
    	
7.3(b)
    
	
Broker
    	
 
    	
Article 1
    
	
business   day
    	
 
    	
14.14
    
	
Buyer
    	
 
    	
Introductory   Paragraph
    
	
Buyer’s   Representative
    	
 
    	
Article 1
    
	
Buyer’s   Work
    	
 
    	
5.3
    
	
Claims   Survival Period
    	
 
    	
9.3.6
    
	
Closing
    	
 
    	
Article 1
    
	
Closing   Date
    	
 
    	
Article 1
    
	
Code
    	
 
    	
Article 1
    
	
Confidentiality   Agreement
    	
 
    	
Article 1
    
	
Contracts
    	
 
    	
Article 1
    
	
Cut-Off   Time
    	
 
    	
Article 6
    
	
Deed
    	
 
    	
7.3(a)
    
	
Deemed   to Know
    	
 
    	
Article 1
    
	
Deposit
    	
 
    	
3.1
    
	
Designated   Representative
    	
 
    	
Article 1
    
	
Documents
    	
 
    	
Article 1
    
	
Due   Diligence
    	
 
    	
Article 1
    
	
Due   Diligence Period
    	
 
    	
Article 1
    
	
Election   Notice
    	
 
    	
12.2
    
	
Escrow   Agent
    	
 
    	
Article 1
    
	
Escrow   Deposits
    	
 
    	
Article 13
    
	
Governmental   Authority
    	
 
    	
5.3
    
	
Initial   Deposit
    	
 
    	
3.1
    
	
Laws
    	
 
    	
Article 1
    
	
Leases
    	
 
    	
Article 1
    
	
Losses
    	
 
    	
5.3
    
	
Materiality   Threshold
    	
 
    	
9.3.5
    
	
Non-Material   Casualty
    	
 
    	
12.2
    
	
Other   Exceptions
    	
 
    	
4.1.1
    
	
Other   Property Rights
    	
 
    	
Article 1
    
	
Owner’s   Title Policy
    	
 
    	
4.2
    
	
Permitted   Exceptions
    	
 
    	
Article 1
    
	
Person
    	
 
    	
Article 1
    
	
Personal   Property
    	
 
    	
Article 1
    
	
Proceedings
    	
 
    	
14.16
    

 

S1-1

 

	
Term
    	
 
    	
Reference
    
	
Project
    	
 
    	
Article 1
    
	
Property
    	
 
    	
Article 1
    
	
Property   Documents
    	
 
    	
Article 1
    
	
Property   Manager
    	
 
    	
Article 1
    
	
Purchase   Price
    	
 
    	
Article 3
    
	
Real   Property
    	
 
    	
Article 1
    
	
Realization   Costs
    	
 
    	
12.2
    
	
Release
    	
 
    	
10.3.2
    
	
Reporting   Person
    	
 
    	
14.2(a)
    
	
Reporting   Requirements
    	
 
    	
14.2
    
	
Required   Clearance Exceptions
    	
 
    	
4.1.1
    
	
Revenues
    	
 
    	
6.1.1
    
	
Seller
    	
 
    	
Introductory   Paragraph
    
	
Seller   Cure Limit
    	
 
    	
Article 1
    
	
Seller   Parties
    	
 
    	
Article 1
    
	
Seller’s   Knowledge
    	
 
    	
9.3.2
    
	
Seller’s   Warranties
    	
 
    	
Article 1
    
	
significant   portion
    	
 
    	
12.1.1
    
	
Survey
    	
 
    	
Article 1
    
	
Tax   Year
    	
 
    	
Article 1
    
	
Title   Commitment
    	
 
    	
Article 1
    
	
Title   Company
    	
 
    	
Article 1
    
	
Title   Documents
    	
 
    	
Article 1
    
	
Title   Objections
    	
 
    	
4.1.1
    
	
Transaction
    	
 
    	
Article 1
    

 

S1-2

 

Schedule 2

 

List of Due Diligence Items

 

Operating Statements for last 3 years and 2013

 

Rent Roll

 

Current Utility Bills

 

Current Real Estate Tax Bills

 

Staff compensation

 

Existing Title Policy, Property Exceptions and/or Easements

 

Existing Survey and Legal Description

 

Third Party Warranties/Guarantees in Effect

 

Lease Agreement

 

Phase I Environmental Report

 

Site Evaluation Report

 

12 month lease expiration report

 

Windsor Green Regulatory Agreement with MHP

 

2012 Computation of Excess Equity

 

S2-1

 

Exhibit A

 

LEGAL DESCRIPTION

 

Parcel 1 (311 Lowell Street):

 

A certain parcel of land with the buildings and improvements thereon in Andover, Essex County, Massachusetts, and being shown as Lot 2 on a plan entitled “Plan of Land, 307 & 311 Lowell Street, Andover, Massachusetts” by Otte & Dwyer, Inc., Land Surveyors, dated June 21, 2004, recorded with the Essex North Registry of Deeds on June 30, 2004, as Plan No. 14808.

 

Parcel 2 (319 Lowell Street):

 

The land with the buildings thereon situated on Lowell Street in Andover, No. Essex County, Massachusetts and being shown as Lot 3 on a plan of land entitled “Plan of Land in Andover, Mass. as surveyed for John Bolten” drawn by McCracken Bros. Engineers, Methuen, Mass., Scale l” = 20’ dated January 7, 1947 and recorded in No. Essex County Registry of Deeds as Plan #1692, to which plan reference is made for a more particular description of Lot 3 as affected by taking by the Commonwealth of Massachusetts for the relocation of Lowell Street dated December 4, 1956 and recorded in the Registry in Book 856, Page 100 as affected by an entry dated June 25, 1957 and recorded in the Registry in Book 858, Page 84.

 

A-1

 

Exhibit B

 

LIST OF CONTRACTS

 

	
Service
    	
 
    	
Vendor
    
	
 
    	
 
    	
 
    
	
ADMINISTRATIVE   EXPENSES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Equipment   Leasing Expense
    	
 
    	
Pitney   Bowes (postage machine)
    
	
Internet   Services — Office
    	
 
    	
Comcast
    
	
Telephone   — Office, Elevator, Call Boxes, 911
    	
 
    	
Verizon/Sprint
    
	
Telephone   — Fire Alarms
    	
 
    	
N/A
    
	
Telephone   — Answering Service
    	
 
    	
Quick   Phone
    
	
Copy   Machine
    	
 
    	
Canon   Business Solutions
    
	
Otis   Spunkmeyer/Cookies
    	
 
    	
 
    
	
Water   Cooler
    	
 
    	
Poland   Springs
    
	
Alarm   Monitoring — Office
    	
 
    	
ACT
    
	
Alarm   Monitoring — Shop
    	
 
    	
ACT
    
	
Minol/Sub-metering   Company
    	
 
    	
Minol
    
	
Minol/UEM   bill pay Company
    	
 
    	
N/A
    
	
Credit   Retriever/Applicant Credit Check Co.
    	
 
    	
Credit   Retriever
    
	
Collection   Agency
    	
 
    	
FCO
    
	
 
    	
 
    	
 
    
	
MARKETING   EXPENSES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Advertising   — Print Ad
    	
 
    	
Apt   Guide
    
	
Advertising   — Other
    	
 
    	
Classified   Ventures
    
	
Advertising   — Other
    	
 
    	
Move.com
    
	
Advertising   — Other
    	
 
    	
Rent.com
    
	
Advertising   — Other
    	
 
    	
forRent.com
    
	
Advertising   — Other
    	
 
    	
Peoplewithpets.com
    
	
 
    	
 
    	
 
    
	
SERVICE   EXPENSES
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Pest   Contract
    	
 
    	
N/A
    
	
Termite   Contract/Bond
    	
 
    	
N/A
    
	
Trash   Contract
    	
 
    	
EL   Harvey & Sons
    
	
Compactor   Rental Agreement
    	
 
    	
N/A
    
	
Recycling   Contract
    	
 
    	
EL   Harvey & Sons
    
	
Landscaping   Contract
    	
 
    	
Preferred   Landscaping
    
	
Fire   Alarm Monitoring Contract
    	
 
    	
Cintas
    
	
Life   Safety Contract (Fire Sprinkler, Alarms)
    	
 
    	
Cintas
    
	
Painting   Contract
    	
 
    	
N/A
    
	
Cleaning   Service Contract
    	
 
    	
Jani   King
    
	
Elevator   Contract
    	
 
    	
Otis
    
	
HVAC   Contract for Common Areas
    	
 
    	
N/A
    
	
Key   System
    	
 
    	
HandiTrack
    
	
Snow   Removal
    	
 
    	
Preferred   Landscaping
    

 

B-1

 

Exhibit C

 

FORM OF AS-IS CERTIFICATE AND AGREEMENT

 

THIS CERTIFICATE AND AGREEMENT (“Agreement”), is made as of the        day of June, 2013, by HAMILTON GREEN APARTMENTS, LLC, a Massachusetts limited liability company (“Buyer”), to and for the benefit of WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company (“Seller”), and each of the Seller Parties (as defined herein).

 

RECITALS

 

Seller, as seller, and Buyer, as buyer, are parties to a Purchase and Sale Agreement (“Sale Agreement”) dated as of June     , 2013, which provides for the sale of certain real property (the “Property”) located in County of Essex, Commonwealth of Massachusetts, commonly known as Windsor Green at Andover and legally described on Exhibit A attached hereto and incorporated herein by this reference.  Any initially capitalized terms not otherwise defined herein shall have the meaning ascribed to such term in the Sale Agreement; and

 

The Sale Agreement requires, inter alia, that, as a condition precedent to Seller’s obligations under the Sale Agreement, Buyer shall execute and deliver this Agreement to Seller at Closing.

 

NOW, THEREFORE, in consideration of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer hereby certifies and agrees as follows:

 

1.                                      For purposes of this Agreement, the following terms shall have the following meanings:

 

“Buyer’s Representative” shall mean Buyer, its partners and members, and any officers, directors, employees, agents, Representative and attorneys of Buyer, its partners or members.

 

“Deemed to Know” (or words of similar import, whether or not such words may be capitalized) shall have the following meaning:  (a) Buyer shall be “Deemed to Know” of the existence of a fact or circumstance to the extent that such fact or circumstance is disclosed by this Agreement, the Documents, or any studies, tests, reports, or analyses prepared by or for or otherwise obtained by Buyer or Buyer’s Representative; and (b) Buyer shall be “Deemed to Know” that a representation or warranty is untrue, inaccurate or incorrect to the extent that this Agreement, the Documents, or any studies, tests, reports or analyses prepared by or for or otherwise obtained by Buyer or Buyer’s Representative in connection with the Property contains information which is inconsistent with such representation or warranty.

 

“Documents” shall mean the documents and instruments applicable to the Property or any portion thereof that Seller or any of the other Seller Parties deliver or make available to Buyer prior to Closing or otherwise allow Buyer access to

 

C-1

 

prior to Closing, including, but not limited to, the Title Commitment, the Survey, the Title Documents, the Property Documents and the Property Condition Report.

 

“Due Diligence” shall mean examinations, inspections, investigations, tests, studies, analyses, appraisals, evaluations and/or investigations with respect to the Property, the Documents, and other information and documents regarding the Property, including, without limitation, examination and review of title matters, applicable land use and zoning Laws and other Laws applicable to the Property, the physical condition of the Property, and the economic status of the Property.

 

“Property Documents” shall mean, collectively, (a) the Leases, (b) the Contracts, and (c) any other documents or instruments which constitute or otherwise create any portion of the Property.

 

“Seller Parties” shall mean and include, collectively, (a) Seller; (b) its counsel; (c) Broker; (d) Seller’s property manager; (e) any direct or indirect equity owner, officer, director, employee, or agent of Seller, Seller’s partners or members, or Seller’s partners’ or members’ partners or members, counsel to any of the foregoing, Broker or Seller’s property manager; and (f) any other entity or individual affiliated or related in any way to any of the foregoing; and (g) the Designated Representative.

 

“Seller’s Warranties” shall mean Seller’s representations and warranties set forth in Section 9.2 of the Sale Agreement and any documents executed by Seller for the benefit of Buyer in connection with Closing.

 

2.                                      Buyer acknowledges that, prior to the date hereof, (a) Seller has made available to Buyer and otherwise allowed Buyer access to the Property and the Documents; and (b) Buyer has conducted (or has waived its right to conduct) all such Due Diligence as Buyer considers necessary or appropriate.

 

3.                                      Buyer acknowledges and agrees that (a) the Property is being sold, and Buyer accepts possession of the Property on the date hereof, “AS IS, WHERE IS, WITH ALL FAULTS,” with no right of setoff or reduction in the Purchase Price; (b) except for Seller’s Warranties, none of the Seller Parties have or shall be deemed to have made any verbal or written representations, warranties, promises or guarantees (whether express, implied, statutory or otherwise) to Buyer with respect to the Property, any matter set forth, contained or addressed in the Documents (including, but not limited to, the accuracy and completeness thereof) or the results of Buyer’s Due Diligence; and (c) Buyer has confirmed independently all information that it considers material to its purchase of the Property or the Transaction.  Buyer specifically acknowledges that, except for Seller’s Warranties, Buyer is not relying on (and Seller, each of the other Seller Parties does hereby disclaim and renounce) any representations or warranties of any kind or nature whatsoever, whether oral or written, express, implied, statutory or otherwise, from Seller or any other Seller Parties, as to any matter whatsoever.  Buyer further acknowledges and agrees that, except for Seller’s Warranties, neither Seller nor Seller is under any duty to make any affirmative disclosures or inquiry regarding any matter which may or may not be known to Seller or any of the other Seller Parties, and Buyer, for itself and for its successors and

 

C-2

 

assigns, hereby specifically waives and releases Seller and each of the other Seller Parties from any such duty that otherwise might exist.

 

4.                                      Any reports, repairs or work required by Buyer are the sole responsibility of Buyer, and Buyer agrees that there is no obligation on the part of Seller or Seller to make any changes, alterations or repairs to the Property or to cure any violations of Law or to comply with the requirements of any insurer.

 

5.                                      Except as expressly provided hereinbelow in this Section 5, Buyer, for Buyer and Buyer’s successors and assigns, hereby releases Seller and each of the other Seller Parties from, and waives all claims and liability against Seller and each of the other Seller Parties for or attributable to, the following:

 

(a)                                 any and all statements or opinions heretofore or hereafter made, or information furnished, by the Seller Parties to Buyer or any of Buyer’s Representative; and

 

(b)                                 any and all losses, costs, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever attributable to the Property, whether arising or accruing before, on or after the date hereof and whether attributable to events or circumstances which have heretofore or may hereafter occur, including, without limitation, all losses, costs, claims, liabilities, expenses, demands and obligations with respect to the structural, physical, or environmental condition of the Property.

 

The release and waiver set forth in this Section 5 is not intended and shall not be construed to affect or impair any rights or remedies that Buyer may have against Seller under the Sale Agreement as a result of a breach of any of Seller’s Warranties or of any covenant of Seller expressly set forth in the Sale Agreement.

 

6.                                      Buyer acknowledges and agrees that the provisions of this Agreement were a material factor in Seller’s acceptance of the Purchase Price, and while Seller has provided the Documents and cooperated with Buyer, Seller is unwilling to sell the Property unless Seller and the other Seller Parties are expressly released as set forth in Section 5.

 

7.                                      This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

8.                                      If any term or provision of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

 

C-3

 

IN WITNESS WHEREOF, Buyer has executed this Agreement as of the date first set forth hereinabove.

 

	
 
    	
HAMILTON   GREEN APARTMENTS, LLC,
    
	
 
    	
a   Massachusetts limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
NewReal, Inc.,   a Massachusetts corporation
    
	
 
    	
 
    	
its   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

C-4

 

Exhibit D

 

FORM OF DEED

 

WHEN RECORDED RETURN TO:

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company, formerly known as CRITERION ANDOVER APARTMENTS, L.P., a Delaware limited partnership (“Grantor”), whose address is c/o GID, 125 High Street, High Street Tower, 27th Floor, Boston, MA  02110, for consideration paid in the amount of                                                                             and 00/100 ($                                        ) DOLLARS, grants to                                                       , a                                                           (“Grantee”) with its principal office located at                                                                                                     ,

 

with Quitclaim Covenants:

 

the land known and numbered as 311 Lowell Street (“Parcel 1”) and 319 Lowell Street (“Parcel 2”) located in Andover, Massachusetts, more particularly described on Exhibit A attached hereto, together with any improvements thereon (the “Property”),

 

Subject to and with the benefit of all easements, rights of way, encumbrances, liens, covenants, conditions and other matters of record to the extent that the same are now in force and applicable and as more particularly described on Exhibit B attached hereto.

 

Parcel 1 is subject to a non-disturbance zone in which no alteration of land or vegetation may occur.  The non-disturbance zone is shown on the plan entitled “Plan of Non-Disturbance Zone to Wetlands Per Order of Conditions No. 090-0853, 307 & 311 Lowell Street, Andover, Massachusetts,” dated March 24, 2005, prepared by H.W. Moore Associates, Inc., recorded with the Essex North Registry of Deeds (the “Registry”) as Plan # 15047, and as described in the Order of conditions recorded in the Registry at Book 9304, Page 216.  In accordance with said Order of Conditions, this language shall be incorporated in full into all future deeds, easements, mortgages, leases, licenses, occupancy agreements or any other instrument of transfer, whereby an interest in and/or a right to use the property or a portion thereof is conveyed.

 

For Grantor’s title, for Parcel 1 see Deed recorded with the Registry in Book 9483, Page 67 and for Parcel 2 see Deed recorded with the Registry in Book 9483, Page 69.

 

D-1

 

IN WITNESS WHEREOF, Grantor has set its hand and seal this                  day of June, 2013.

 

 

	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a 

Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

COMMONWEALTH OF MASSACHUSETTS

 

COUNTY OF                               , ss.

 

On this              day of                               , 2013, before me, the undersigned notary public, personally appeared                                                 .                                              of Windsor Green at Andover LLC, a Delaware limited liability company, proved to me through satisfactory evidence of identification, which was                                                         , to be the person whose name is signed on the preceding or attached document, and acknowledged to me that he signed it voluntarily for its stated purpose as                                         .

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   commission expires:
    

 

D-2

 

EXHIBIT A

 

Parcel 1 (311 Lowell Street):

 

A certain parcel of land with the buildings and improvements thereon in Andover, Essex County, Massachusetts, being shown as Lot 2 on a plan entitled “Plan of Land, 307 & 311 Lowell Street, Andover, Massachusetts” by Otte & Dwyer, Inc., Land Surveyors, dated June 21, 2004, recorded with the Essex North Registry of Deeds on June 30, 2004, as Plan No. 14808.

 

Parcel 2 (319 Lowell Street):

 

The land with the buildings thereon situated on Lowell Street in Andover, No. Essex County, Massachusetts and being shown as Lot 3 on a plan of land entitled “Plan of Land in Andover, Mass. as surveyed for John Bolten” drawn by McCracken Bros. Engineers, Methuen, Mass., Scale l” = 20’ dated January 7, 1947 and recorded in No. Essex County Registry of Deeds as Plan #1692, to which plan reference is made for a more particular description of Lot 3 as affected by taking by the Commonwealth of Massachusetts for the relocation of Lowell Street dated December 4, 1956 and recorded in the Registry in Book 856, Page 100 as affected by an entry dated June 25, 1957 and recorded in the Registry in Book 858, Page 84.

 

D-3

 

EXHIBIT B

 

1.                          Terms and provisions of a lease by and between Windsor Green at Andover LLC, as Lessor, and STC Six Company, as Lessee, dated March 25, 2010, Notice of which is dated December 11, 2009 and recorded in Book 12082, Page 238, as affected by Memorandum of Lease Supplement by and between STC Six Company and Bell Atlantic Mobile of Massachusetts Corporation Ltd., dated October 27, 2010 and recorded in Book 12293, Page 93, as affected by Notice of Lease by and between STC Six Company and New Cingular Wireless PCS, LLC dated October 29, 2010 and recorded in Book 12380, Page 134, as affected by Notice of Site License Acknowledgement recorded in Book 11518, Page 144.

 

2.                          Taking by the Commonwealth of Massachusetts Department of Public Works for the relocation of Lowell Street and for access easement on Parcel 11-R-1 shown on Plan No. 6129 by Order dated November 26, 1969, and recorded in Book 1145, Page 150, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

3.                          Taking by the Commonwealth of Massachusetts Department of Public Works of an easement related to Parcel 11-RS-1 Easement to construct slopes of excavation and/or embankment in Parcel 11-RS-1 shown on Plan No. 6212 by Order dated May 27, 1970, and recorded in Book 1153, Page 684, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

4.                          Rights and easement granted in Reciprocal Easement Agreement between Andover Real Estate Corporation and Rolling Green Motor Inn Corporation dated September 22, 1982, and recorded in Book 1617, Page 187, as affected by Easement Relocation Agreement dated April 28, 2005 and recorded in Book 9483, Page 73, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

5.                          Easement from Dauphin Corporation to Harry Axelrod dated July 15, 1985, and recorded in Book 2005, Page 128, with respect to “Right of Way Easement 66’ Wide” shown on a plan entitled “Plan of Land in Andover, Mass., owned by Rolling Green Motor Inn Corp.” dated May 29, 1985 and recorded as Plan No. 9957 as affected by Declaration and Grant of Easements between Harry Axelrod and Lowell Street Associates Limited Partnership dated May 22, 1991 recorded with the Registry in Book 3274, Page 96, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

6.                          Rights and easement granted in Easement Agreement between Inncorp Development Limited Partnership and David Bruce Maddox, Trustee of Powers Realty Trust, dated September 30, 1988, and recorded in Book 2820, Page 81, as amended by the

 

D-4

 

Amendment to Access Easement Agreements recorded in Book 9483, Page 41, as affected by Confirmation Regarding Easement Agreement, dated May 8, 2007, recorded in Book 10750, Page 111, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

7.                          Rights granted in a Lease dated June 19, 1999, with Sprint Spectrum LP., as Tenant, Notice of which is recorded in Book 5691, Page 307.

 

8.                          Notice of Lease to Andtower, LLC dated April 28, 2005 and recorded in Book 9483, Page 59, as affected by Amendment to Notice of Lease dated April 28, 2005 and recorded in Book 9483, Page 132, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

9.                          Rights and easement granted in Easement to New England Telephone and Telegraph Company dated February 22, 2000, and recorded in Book 5691, Page 313, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

10.                   Rights and easement granted in Easement to Massachusetts Electric Company dated March 21, 2000, and recorded in Book 5708, Page 29, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

11.                   Terms and provisions of Declaration and Grant of Easement, Rights and Restrictions dated June 17, 2003 and recorded with the Registry in Book 7920, Page 113, as amended by Restatement of Declaration and Grant of Easements, Rights and Restrictions dated April 28, 2005 and recorded in Book 9483, Page 11, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

12.                   Grant of Utility Easement and Easement Agreement between Criterion Andover Apartments, L.P. and Yvon Cormier and Denise Enxing, Trustees of CA Investment Trust dated April 28, 2005 and recorded in Book 9483, Page 95, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

13.                    Grant of Easement between Comcast of Massachusetts I, Inc. and Criterion Apartments, LP, dated September 24, 2006, recorded in Book 10382, Page 207.

 

14.                    Easement to Verizon New England Inc., dated March 22, 2006, recorded in Book 10097, Page 46.

 

15.                    Easement to Massachusetts Electric Company, dated September 27, 2005, recorded in Book 9842, Page 154.

 

16.                   Matters disclosed on a survey entitled “ALTA/ACSM Land Title Survey in Andover, Mass.”, prepared by Hayes Engineering, dated September 27, 2007:  Gravel path shown at Northeast corner of Parcel 1 appears to run on and off insured premises and abutter’s premises.

 

D-5

 

17.                   Terms and provision of Chapter 40B Regulatory and Affordable Housing Agreement for Limited Dividend Organizations, between Criterion Andover Apartments LP and Massachusetts Housing Partnership Fund Board, dated February 15, 2008, recorded in Book 11067, Page 28.

 

18.                   Notice of Variance by the Andover Board of Appeals granted to Sprint Spectrum L.P., recorded in Book 5647, Page 199 (Decision No. 2956).

 

19.                   Order of Conditions from the Andover Conservation Commission (DEP File No. 090-0853) issued October 22, 2003 and recorded on January 14, 2005 in Book 9304, Page 216, as affected by a Certificate of Compliance, recorded in Book 10737, Page 79.

 

20.                   Notice of Variance by the Andover Board of Appeals granted to Rolling Green Motor Inn Corp. recorded in Book 1910, Page 234 (Decision No. 1699).

 

21.                   Decision for Comprehensive Permit by the Andover Board of Appeals recorded in Book 8447, Page 238, as affected by Certification of No Appeal recorded in Book 8447, Page 248, as affected by Decision Consenting to Proposed Transfer of Comprehensive Permit Decision No. 3312, Decision No. 3449, dated August 16, 2004 and recorded in Book 9082, Page 177; as affected by Finding of Insubstantial Change dated February 15, 2005 and recorded in Book 9417, Page 39; as affected by Decision to Extend and Determination of Insubstantial Changes, Decision No. 3451, dated August  16, 2004 and recorded in Book 9474, Page 141; as affected by Stipulation of Dismissal with Prejudice recorded in Book 9483, Page 1, as affected by Finding of Insubstantial Change by Town of Andover, (Comprehensive Permit #3312), issued to AND Development, LLC, dated April 25, 2005, recorded in Book 9554, Page 98. Also see Decision in Book 9696, Page 75, as affected by Decision of the Zoning Board of Appeals, Town of Andover, recorded in Book 10832, Page 31.

 

22.                   Notice of Decision by the Andover Zoning Board of Appeals granted to Altiostar Networks, Inc., recorded in Book 13434, Page 307 (Decision No. 4022).

 

23.                   Notice of Decision by the Zoning Board of Appeals of the Town of Andover recorded in Book 11995, Page 294.

 

29.                   Notice of Decision of the Town of Andover Zoning Board of Appeals dated March 3, 2011 and recorded in Book 12467, Page 239.

 

D-6

 

Exhibit E

 

FORM OF BILL OF SALE

 

THIS BILL OF SALE (“Bill of Sale”), is made as of the        day of June, 2013, by and between WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company (“Seller”), and HAMILTON GREEN APARTMENTS, LLC, a Massachusetts limited liability company (“Buyer”).

 

W I T N E S S E T H:

 

WHEREAS, by that certain Purchase and Sale Agreement (“Sale Agreement”) dated as of June     , 2013, by and between Seller and Buyer, Seller agreed to sell to Buyer certain real property, and the improvements located thereon (“Real Property”) as more particularly described in Exhibit A attached hereto and incorporated herein by this reference, together with all improvements located thereon (“Real Property”); and

 

WHEREAS, by deed of even date herewith, Seller conveyed the Real Property to Buyer; and

 

WHEREAS, in connection with the above described conveyance Seller desires to sell, transfer and convey to Buyer certain items of tangible personal property as hereinafter described.

 

NOW, THEREFORE, in consideration of the receipt of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration paid in hand by Buyer to Seller, the receipt and sufficiency of which are hereby acknowledged, Seller has GRANTED, CONVEYED, SOLD, TRANSFERRED, SET OVER and DELIVERED and by these presents does hereby GRANT, SELL, TRANSFER, SET OVER and DELIVER to Buyer, its legal Representative, successors and assigns, all of its right, title and interest in and to (a) all tangible personal property owned by Seller (excluding (i) all furniture, equipment, supplies and other tangible personal property located in the office maintained by Seller’s property manager, and (ii) computer software which either (x) is licensed to Seller or Seller’s property manager, or (y) Seller or Seller’s property manager deems proprietary), located on the Real Property and used in the ownership, operation and maintenance of the Real Property, and (b) all non-confidential books, records and files (excluding any appraisals, budgets, strategic plans for the Real Property, internal analyses, marketing information regarding the marketing of the Property for sale, submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product, and attorney-client privileged documents), relating to the Real Property (herein collectively called the “Personal Property”), to have and to hold, all and singular, the Personal Property unto Buyer forever.

 

This Bill of Sale is made without any covenant, warranty or representation by, or recourse against, Seller except as expressly set forth in the Sale Agreement and the documents executed in connection therewith.

 

If any term or provision of this Bill of Sale or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Bill of Sale

 

E-1

 

or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Bill of Sale shall be valid and enforced to the fullest extent permitted by law.

 

IN WITNESS WHEREOF, the undersigned have executed this Bill of Sale as of the date first set forth hereinabove.

 

 

	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a

Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

E-2

 

Exhibit F

 

FORM OF ASSIGNMENT OF LEASES

 

THIS ASSIGNMENT OF LEASES (“Assignment”), is made as of the        day of June, 2013, by and between WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company (“Assignor”), and HAMILTON GREEN APARTMENTS, LLC, a Massachusetts limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, by Purchase and Sale Agreement (“Sale Agreement”) dated as of June     , 2013, by and between Assignor and Assignee, Assignor agreed to sell to Assignee certain real property, and the improvements located thereon (“Property”) as more particularly described in the Sale Agreement; and

 

WHEREAS, the Sale Agreement provides, inter alia, that Assignor shall assign to Assignee certain leases and Assignee shall assume all of the obligations of Assignor under such leases from and after the date of such assignment, and that Assignor and Assignee shall enter into this Assignment.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows:

 

1.                                      Assignment.  Assignor hereby assigns, sets over and transfers to Assignee all of its right, title and interest in, to and under the leases (“Leases”) with the tenants of the Property identified on Exhibit A attached hereto and incorporated herein by this reference.

 

2.                                      Assumption.  Assignee hereby assumes all liabilities and obligations of Assignor under the Leases arising or accruing after the date hereof.

 

3.                                      Miscellaneous.  This Assignment and the obligations of the parties hereunder shall survive the closing of the transaction referred to in the Sale Agreement and shall not be merged therein, shall be binding upon and inure to the benefit of the parties hereto, their respective legal Representative, successors and assigns, shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts applicable to agreements made and to be wholly performed within said State and may not be modified or amended in any manner other than by a written agreement signed by the party to be charged therewith.

 

4.                                      Severability.  If any term or provision of this Assignment or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Assignment or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Assignment shall be valid and enforced to the fullest extent permitted by law.

 

F-1

 

5.                                      Counterparts.  This Assignment may be executed in counterparts, each of which shall be an original and all of which counterparts taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the undersigned have executed this Assignment as of the date first set forth hereinabove.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a Delaware 

limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
HAMILTON   GREEN APARTMENTS, LLC,
    
	
 
    	
a   Massachusetts limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
NewReal, Inc.,   a Massachusetts corporation
    
	
 
    	
 
    	
its   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
					

 

F-2

 

Exhibit G

 

FORM OF ASSIGNMENT OF INTANGIBLE PROPERTY

 

THIS ASSIGNMENT OF INTANGIBLE PROPERTY (“Assignment”), is made as of the        day of June, 2013, by and between WINDSOR GREEN AT ANDOVER LLC, a Delaware limited liability company (“Assignor”), and HAMILTON GREEN APARTMENTS, LLC, a Massachusetts limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS, by Purchase and Sale Agreement (“Sale Agreement”) dated as of June      , 2013, by and between Assignor and Assignee, Assignor agreed to sell to Assignee certain real property, and the improvements located thereon (“Property”) as more particularly described in the Sale Agreement; and

 

WHEREAS, the Sale Agreement provides, inter alia, that Assignor shall assign to Assignee rights to certain intangible property and that Assignee shall assume all of the obligations of Assignor under such intangible property from and after the date of such assignment, and that Assignor and Assignee shall enter into this Assignment.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree as follows:

 

1.                                      Assignment of Contracts, Licenses and Permits.  Assignor hereby assigns, sets over and transfers to Assignee all of its right, title and interest, if any, in, to and under (if and to the extent assignable by Assignor without expense to Assignor), (a) all service, supply, maintenance and utility agreements, all equipment leases, and all other contracts, subcontracts and agreements relating to the Real Property and the Personal Property, all of which are listed in Exhibit A attached hereto and incorporated herein by this reference (herein collectively called the “Contracts”), (b) to the extent that the same are in effect as of the date hereof, any licenses, permits and other written authorizations necessary for the use, operation or ownership of the Property (excluding Seller’s right to the name “Windsor”) (herein collectively called the “Licenses and Permits”) and (c) any and all warranties and guarantees relating to the Property (“Warranties”).  The foregoing assignment specifically excludes (i) the names “Windsor”, “Windsor Communities” and any variation thereof, (ii) all computers used in connection with the operation of the Property and all computer software, (iii) all operating and marketing materials, records and reports which are proprietary to the operation and management of the Property by Windsor Property Management Company and (iv) any text, graphics, artwork or photographs of the exterior or interior of the Property located at 311 Lowell Street, Andover, Massachusetts [www.windsorcommunities/apartments/boston/andover/].

 

2.                                      Assumption.  Assignee hereby assumes and takes responsibility for all damages, losses, costs, claims, liabilities, expenses, demands, and obligations of any kind or nature whatsoever attributable to the Contracts, the Licenses and Permits and the Warranties arising or accruing after the date hereof.

 

G-1

 

3.                                      Miscellaneous.  This Assignment and the obligations of the parties hereunder shall survive the closing of the transaction referred to in the Sale Agreement and shall not be merged therein, shall be binding upon and inure to the benefit of the parties hereto, their respective legal Representative, successors and assigns, shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts applicable to agreements made and to be wholly performed within said State and may not be modified or amended in any manner other than by a written agreement signed by the party to be charged therewith.

 

4.                                      Severability.  If any term or provision of this Assignment or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Assignment or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Assignment shall be valid and enforced to the fullest extent permitted by law.

 

5.                                      Counterparts.  This Assignment may be executed in counterparts, each of which shall be an original and all of which counterparts taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the undersigned have executed this Assignment as of the date first set forth hereinabove.

 

	
 
    	
ASSIGNOR:
    
	
 
    	
 
    
	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a Delaware 

limited   liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
ASSIGNEE:
    
	
 
    	
 
    
	
 
    	
HAMILTON   GREEN APARTMENTS, LLC,
    
	
 
    	
a   Massachusetts limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
NewReal, Inc.,   a Massachusetts corporation
    
	
 
    	
 
    	
its   Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

G-2

 

Exhibit H

 

FORM OF NOTICE TO TENANTS

 

Date

 

	
Re:
    	
Notice   of Change of Ownership of
    
	
 
    	
Windsor   Green at Andover
    
	
 
    	
311   Lowell Street
    
	
 
    	
Andover,   MA
    

 

Ladies and Gentlemen:

 

You are hereby notified as follows:

 

1.                                      That as of the date hereof, Windsor Green at Andover LLC has transferred, sold, assigned, and conveyed all of its interest in and to the above-described property (the “Property”) to Hamilton Green Apartments, LLC (the “New Owner”).

 

2.                                      Future notices and rental payments with respect to your leased premises at the Property should be made to the New Owner in accordance with your lease terms at the following address:

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

3.                                      Your security deposit, if any, has been transferred to the New Owner and as such the New Owner shall be responsible for holding the same in accordance with the terms of your lease.

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, 

a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

H-1

 

Exhibit I

 

FORM OF NOTICE TO VENDORS

 

Date

 

	
Re:
    	
Notice   of Change of Ownership of
    
	
 
    	
Windsor   Green at Andover
    
	
 
    	
311   and 319 Lowell Street
    
	
 
    	
Andover,   Massachusetts
    

 

Reference is made to an agreement with respect to the furnishing by you of certain services at the captioned property.

 

Effective this date, the new owner of the property is Hamilton Green Apartments, LLC.  You should direct all bills, notices and other communications to                                                                                                                                                            .

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
SELLER
    
	
 
    	
 
    
	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a 

Delaware   limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

I-1

 

Exhibit J

 

FORM OF FIRPTA AFFIDAVIT

 

Section 1445 of the Internal Revenue Code provides that a transferee of a United States 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 holds 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 the transferee that withholding of tax is not required upon the disposition of a United States real property interest by Windsor Green at Andover LLC, a Delaware limited liability company (“Seller”), the undersigned hereby certifies the following on behalf of Seller:

 

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

 

2.                                      Seller is a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations.

 

3.                                      Seller’s U.S. employer tax identification number is 20-1345501; and

 

4.                                      Seller’s office address is 125 High Street, High Street Tower, 27th Floor, Boston, MA  02110.

 

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

 

The undersigned declares that she/he has examined this certification and to the best of her/his knowledge and belief it is true, correct and complete, and she/he further declares that she/he has authority to sign this document on behalf of Seller.

 

Dated:                             , 2013.

 

	
 
    	
WINDSOR   GREEN AT ANDOVER LLC, a
   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

J-1

 

	
COMMONWEALTH   OF MASSACHUSETTS
    	
§
    
	
 
    	
§
    
	
COUNTY   OF SUFFOLK
    	
§
    

 

This instrument was acknowledged before me on                           , 2013 by                                                                           , a                                                                              of Windsor Green at Andover LLC, a Delaware limited liability company, on behalf of said company.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   commission expires:
    

 

P-2

 

Exhibit K

 

SURVEY

 

ALTA/ACSM Land Title Survey in Andover, Mass.

Prepared by Hayes Engineering, Inc. Civil Engineers & Land Surveyors

603 Salem Street Wakefield, Mass. 01880

 

Date: April 8, 2013

 

BUYER ACKNOWLEDGES RECEIPT OF SURVEY

 

K-1

 

Exhibit L

 

NOTICES OF LITIGATION, GOVERNMENTAL VIOLATIONS
 AND CONDEMNATION

 

NONE

 

L-1

 

Exhibit M

 

CONFIDENTIALITY AGREEMENT

 

(Attached)

 

N-1

	
  

  	
  March 29,2013
  William Roberts Christina Reale GID Investment Advisers LLC High Street
  Tower, 27 the Floor 125 High Street Boston, MA 02110 Re: Windsor Green at
  Andover Dear Bill and Christina: Jones Lang LaSalle Americas, Inc., a
  Maryland corporation1 ("Jones Lang LaSalle"), is pleased to confirm
  the agreement (the "Agreement") under which Jones Lang LaSalle has
  been exclusively engaged by Windsor Green at Andover LLC, a Delaware limited
  liability company ("Owner"), to provide the services described
  below in connection with the above-referenced property (the
  "Property"). I. SCOPE OF SERVICES On the terms and subject to the
  conditions described in this letter, Owner hereby engages Jones Lang LaSalle
  as its exclusive and sole agent to arrange a sale or other disposition (the “Transaction”)
  of Owner's interest hi the Property. Jones Lang LaSalle acknowledges that
  Owner's objective is to obtain the best terms suitable for Owner in
  connection with the Transaction; and in order to achieve that objective,
  Jones Lang LaSalle shall perform the following services and responsibilities:
  1. Determination of Marketing Strategy Jones Lang LaSalle will evaluate and
  recommend to Owner the appropriate structure, including pricing, and
  marketing strategy for the Transaction. The primary considerations in
  determining this structure and strategy will be meeting Owner's objective of
  completing the Transaction on the most favorable terms obtainable in a timely
  manner based on a review of the Property and an analysis of comparable transactions.
  The initial listing price of the Property shall be unpriced. At any time
  during the term of this Agreement, Owner reserves the right, in its sole and
  absolute discretion, to: (i) set or adjust the asking price for the Property;
  (ii) modify the marketing plan implemented by Jones Lang LaSalle; or (iii)
  withdraw the Property from the market. 2. Preparation of Marketing
  Presentation Jones Lang LaSalle will prepare a comprehensive marketing
  presentation ("Offering Memorandum") which shall be subject to the
  approval of Owner. This Offering Memorandum will provide detailed information
  necessary for the analysis and evaluation of the Transaction. In addition to
  descriptive material, the Offering Memorandum will contain financial
  projections as well as an explanation of the terms and conditions under which
  a Transaction will be pursued. Jones Lang LaSalle shall conduct Property
  tours and market tours with all prospective purchasers expressing a desire to
  do so. Travis D’ Amato or Mike Coyne shall be present on all Property tours
  with prospective purchasers and Jones Lang LaSalle shall use its best efforts
  to provide at least twenty-four (24) hours' notice to Owner prior to such
  tours. p-2 

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29, 20 13 Page 2 3. Creation and Implementation of
  Marketing Plan During this phase of the engagement, representatives of Jones
  Lang LaSalle will identify qualified parties who are potentially interested
  in the Transaction. Such parties will be selected for their perceived
  interest in the Transaction and financial capability to perform under the
  terms of the Offering Memorandum. Each such party will be required to sign a
  confidentiality agreement in a form approved by Owner and then presented with
  a copy of the Offering Memorandum. Follow-up discussions and on-site property
  tours will be conducted by Jones Lang LaSalle as needed. 4. Preparation of
  Due Diligence Information Jones Lang LaSalle will coordinate the preparation
  of appropriate back-up material, which will be provided to qualified parties
  in addition to the Offering Memorandum in their detailed investigation of the
  Property. This information may include, but not be limited to, such items as
  lease copies, document summaries, tenant-by-tenant computer projections,
  physical property descriptions and site plans to the extent deemed reasonably
  appropriate by Jones Lang LaSalle. 5. Contract Negotiations The status of the
  marketing efforts, discussions, and terms and conditions of any and all
  offers will be systematically communicated to and discussed with Owner. Owner
  shall refer all inquiries regarding the Transaction to Jones Lang LaSalle,
  and Jones Lang LaSalle will assist Owner in conducting all negotiations;
  provided, however, in no event shall Jones Lang LaSalle have the authority to
  make any commitments or representations, enter into any agreements or sign
  any documents on behalf of Owner. All final terms and conditions of the
  Transaction will be subject to approval by Owner in its sole discretion, and
  Owner shall have the sole and absolute discretion to accept or reject any
  offer or to withdraw the Property from the market. 6. Transaction Closing
  During the term of this Agreement, Jones Lang LaSalle shall meet at least
  twice a month with Owner (either by phone or in person) to review the status
  of the market program efforts. Within ten (10) days after the end of each
  calendar month, Jones Lang LaSalle shall also render a written report to
  Owner setting forth in detail: (i) the efforts exercised during the prior
  month; (it) the responses received with respect to such efforts, including
  the names and addresses of prospective purchasers; (iii) any offers made by
  such prospective purchasers; (iv) similar information relating to the
  prospects of any other brokers with whom Jones Lang LaSalle has had contact;
  (v) a list of all prospects to whom Offering materials have been submitted;
  (vi) a list of all prospective purchasers who have toured the Property; and
  (vii) upon Owner's requests, copies of all correspondence with such prospective
  purchasers and brokers. The final phase of Jones Lang LaSalle’s involvement
  will be to assist Owner in the coordination of activities required to
  consummate the Transaction. This will include assistance in the resolution of
  due diligence and business issues and assistance in the satisfaction of
  closing requirements. p-3

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29, 2013 Page 3 Owner acknowledges, however, that Jones
  Lang LaSalle is not an expert in and is not responsible for any legal,
  regulatory, tax, accounting, engineering, environmental or other technical
  matters, all of which shall be solely Owner's responsibility; provided,
  however, Jones Lang LaSalle shall, based on its professional expertise,
  assist Owner in connection with such matters, including giving Owner
  recommendations as to experts to use for such matters and coordinating the
  work of such experts with the other parties working on the Transaction, but
  in no event shall Jones Lang LaSalle have responsibility for the work of such
  experts. II. COOPERATION OF OWNER Promptly after execution of this Agreement,
  Owner shall provide Jones Lang LaSalle with the names of al1 parties, if any,
  with whom Owner has discussed the Transaction prior to the date hereof. Owner
  shall likewise inform Jones Lang LaSalle of the dates and nature of all
  communications by Owner with any prospective parties concerning the
  Transaction after the date hereof and shall refer all inquiries from such
  parties to Jones Lang LaSalle. Owner shall also make available to Jones Lang
  LaSalle such documents, materials and information regarding the Property,
  which, in the reasonable professional judgment of Jones Lang LaSalle, are
  necessary or appropriate for the proper marketing of the Transaction. In
  addition, Owner agrees to review and verify the accuracy of the rent roll for
  the Property, the operating expenses of the Property, and all financial and
  other factual data and other information included in the Offering Memorandum
  or any other materials submitted to or prepared by Jones Lang LaSalle
  regarding the Property; and Jones Lang LaSalle shall have no liability with
  respect to the use of any data or information provided by other parties. III.
  COMPENSATION As compensation for the services to be performed by Jones Lang
  LaSalle under this Agreement, if, as and when the Transaction has closed, the
  deed for the Property has been recorded and the net sales proceeds have been
  received by Owner, Jones Lang LaSalle shall be entitled to be paid a
  transaction fee (the “Transaction Fee") equal to an amount determined in
  accordance with the following schedule: TRANSACTION FEE: 0.5% of the Gross
  Proceeds For purposes of calculating the Transaction Fee payable to Jones
  Lang LaSalle under this Agreement, the term "Gross Proceeds" shall
  mean the total fair market value of the gross consideration (including,
  without limitation, cash, notes, securities, property, obligations or
  mortgages assumed or taken subject to, and any other form of consideration)
  to be received by Owner and/or its investors in connection with the
  Transaction. Gross Proceeds shall include any portion of the purchase price
  placed in escrow or subject to a holdback as part of the Transaction but
  shall not be adjusted by any fees, prorations or closing expenses. The
  Transaction Fee will become due and payable by Owner upon consummation of a
  Transaction, whether or not through the efforts of Jones Lang LaSalle,
  provided Owner has entered into a letter of intent or definitive agreement
  for the Transaction during the term of this Agreement. In addition, if Owner
  enters into a letter of intent or definitive agreement for a Transaction
  within ninety (90) days following the termination of Jones Lang LaSalle's
  engagement under this Agreement with one or more of the prospective parties
  contacted by Jones Lang LaSalle while performing its services under this
  Agreement or one or more of their affiliates and such Transaction
  subsequently closes, Owner shall be obligated to pay Jones Lang LaSalle the
  Transaction Fee determined in accordance with the terms of this Agreement
  upon the consummation of the Transaction. A complete list of such prospective
  parties, along with a brief synopsis of 

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29,2013 Page 4 communications with such parties, shall be
  provided to Owner within fifteen (15) days following the effective date of
  the termination of this Agreement. For purposes of this Agreement, the term
  "Transaction" shall include a direct or indirect transaction with
  respect to the Property or of the interests in any entity holding title to
  the Property, whether accomplished through a sale, merger, consolidation or
  otherwise; any direct or indirect transaction with respect to a partial
  ownership interest in the Property; or any capital investment structured as a
  financing, joint venture or any combination thereof. In no event, however,
  shall a Transaction be deemed to have occurred if the Transaction does not
  close for any reason; and in such case, Jones Lang LaSalle shall not be
  entitled to any Transaction Fee. No Transaction Fee shall be payable to Jones
  Lang LaSalle upon any direct or indirect transfer of the Property to an
  affiliate of Owner. IV. EXPENSES Owner shall reimburse Jones Lang LaSalle for
  all direct and reasonable out-of-pocket third-party costs and expenses
  incurred by Jones Lang LaSalle within the scope of its engagement pursuant to
  this Agreement, including, without limitation, marketing materials, printing
  and production charges, provided that the aggregate amount of such
  out-of-pocket costs and expenses shall not exceed the sum of $7,500.00 during
  the term of this Agreement, without Owner's prior written approval. V.
  TERMINATION The term of Jones Lang LaSalle's engagement by Owner shall begin
  as of the date hereof and shall end on the earlier of: (a) September 1, 2013,
  or the closing of the Transaction; provided, however, Jones Lang LaSalle's
  engagement under this Agreement shall be automatically extended thereafter
  from month to month upon the same terms and conditions until terminated by
  either party upon thirty (30) days' prior written notice to the other party;
  or (b) the date of the closing of the Transaction. Upon termination of this
  Agreement, neither party will have any liability or continuing obligation to
  the other, except that: (i) any provision of this Agreement concerning rights
  or obligations of the parties with respect to representations, reimbursement,
  indemnification, the return or delivery of documents and other property, and
  confidentiality shall survive such termination; (ii) Owner shall remain liable
  for Jones Lang LaSalle's reasonable costs and expenses incurred up to the
  time of such termination; and (iii) Jones Lang LaSalle's right to payment of
  a Transaction Fee, if any, under this Agreement shall survive such
  termination. Notwithstanding anything to the contrary herein, at any time
  prior to the expiration of the term of this Agreement, Owner may terminate
  this Agreement upon written notice to Jones Lang LaSalle in the event of
  Jones Lang LaSalle's negligence in the performance of its responsibilities
  hereunder or upon the breach of any of the terms of this Agreement, which
  termination shall be effective upon Jones Lang LaSalle's receipt of such
  written notice. 

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29, 2013 Page 5 VL INDEMNIFICATION Owner shall indemnify,
  defend (with attorneys reasonably acceptable to Jones Lang LaSalle) and hold
  harmless Jones Lang LaSalle, each person or entity deemed to control or to be
  controlled by Jones Lang LaSalle, and their respective members, partners,
  shareholders, directors, officers and employees, against and from any and all
  losses, liabilities, and damages (including, without limitation, reasonable
  attorneys' fees) arising in connection with any third-party action, claim,
  proceeding or investigation relating to this engagement, except such as may
  be imposed or incurred by reason of the negligence, willful misconduct or
  fraud of Jones Lang LaSalle (or any of its employees or agents) in the
  performance of Jones Lang LaSalle’s services and responsibilities hereunder and
  provided that Jones Lang LaSalle has acted within the scope of its authority
  described in this Agreement. Jones Lang LaSalle shall indemnify, defend (with
  attorneys reasonably acceptable to Owner) and hold harmless Owner, each
  person or entity deemed to control or to be controlled by Owner, and their
  respective members, partners, shareholders, directors, officers and
  employees, against and from any and all losses, liabilities, and damages
  (including, without limitation, reasonable attorneys’ fees) arising in
  connection with any third-party action, claim, proceeding, or investigation
  relating to this engagement which may be imposed or incurred by reason of the
  negligence, willful misconduct, or fraud of Jones Lang LaSalle (or any of its
  employees or agents). The foregoing indemnification obligations shall survive
  the expiration or early termination of this Agreement. VII. GENERAL
  PROVISIONS 1. Notices. Any notice or other communication required or desired
  to be given to any party under this Agreement shall be in writing and shall
  be either: (a) delivered personally by hand; (b) sent by certified United
  States mail, return receipt requested; (c) sent by a nationally recognized
  overnight courier service; or (d) sent by facsimile, provided a copy of any
  facsimile notice is also sent by one of the other foregoing means. All
  notices to either party shall be delivered to the following address provided
  either party may change such address by delivering notice to the other party
  in accordance with the provisions of this paragraph: Notice to Jones Lang
  LaSalle: Jones Lang LaSalle Americas, Inc. One Post Office Square, 27th Floor
  Boston, MA 02109 Attention: Travis D'Amato Facsimile No.: (312) 938-1593
  Notice to Owner: Windsor Green at Andover LLC 125 High Street, 27"1 Floor
  Boston, MA 02110 Attention: William Roberts Facsimile No.: (617)557-1474 and
  Attention: Christina Reale Facsimile No.: (617)589-9504 

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29, 2013 Page 6 with a copy to: .with a copy lo: Jones
  Lang LaSalle Americas, Inc. GID Investment Advisers LLC 200 East Randolph Dr.
  125 High Street, 27th Floor Chicago, Illinois 60601 Boston, MA 02110
  Attention: General Counsel Attention: Robert S. Farrington, Jr. Facsimile
  No.: (312)228-2277 Facsimile No.: (617)557-1429 All notices shall be deemed
  given upon receipt or upon the date such receipt is refused by the party
  receiving such notice. 2. Confidentiality. Jones Lang LaSalle agrees, for
  itself and all persons retained or employed by Jones Lang LaSalle in
  performing its services, to hold in confidence and not to use or disclose to
  others any confidential or proprietary information of Owner heretofore or
  hereafter disclosed to Jones Lang LaSalle, which may become known to Jones
  Lang LaSalle in me performance of, or as a result of, its services, except
  where Owner specifically authorizes Jones Lang LaSalle to disclose, in
  writing, any of the foregoing to others or such disclosure reasonably results
  from the performance of Jones Lang LaSalle's duties hereunder; provided,
  however, that for purposes of this Agreement, information shall not be deemed
  to be confidential if it is otherwise within the public domain or if Jones
  Lang LaSalle has obtained such information from a source other than Owner or
  its employees or agents. 3. Announcements. Jones Lang LaSalle will not issue
  any press releases or announcements regarding the Transaction without the
  prior approval of Owner as to the contents thereof. 4. Taxes. Owner shall not
  be responsible for any net income, franchise or property tax assessed against
  Jones Lang LaSalle, all of which shall be the responsibility of Jones Lang
  LaSalle. 5. Interest; Litigation Costs. If any payment due hereunder is not
  paid when due, such payment shall bear interest at the rate of one percent
  (1%) per month from the date due to the date paid. In the event there is any
  litigation between Owner and Jones Lang LaSalle with respect to the subject
  matter of this Agreement, the prevailing party shall be entitled to recover
  its reasonable attorneys' fees and disbursements in such litigation from the
  other party. 6. Brokers. Jones Lang LaSalle shall not be required to deal
  with any other brokers or finders unless they are representing another party
  to the Transaction and have agreed to be paid by such other party, and
  neither Owner nor Jones Lang LaSalle shall have any obligations for such
  brokers or finders. Except as set forth in the immediately preceding
  sentence, each party represents and warrants to the other party that it has
  not and will not deal with any other brokers or finders who are or will be
  entitled to any compensation with respect to the Transaction; and each party
  agrees to indemnify the other party for its breach of such representation and
  warranty. 7. Authority; Construction. Owner represents and warrants that it
  is the owner of the Property, that it is duly authorized to enter into this
  Agreement and perform its obligations hereunder and that it is authorized to
  enter into the Transaction in accordance with the terms hereof. Jones Lang
  LaSalle represents and warrants that is duly authorized to enter into this
  Agreement and perform its obligations hereunder. This Agreement is intended
  to create an independent contractor relationship between Jones Lang LaSalle
  and Owner, and nothing herein shall be construed as creating an
  employer/employee or partnership relationship between the parties. p-7

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29,2013 Page 7 8. Financing. In an effort to maximize
  proceeds from a Transaction, Owner recognizes that Jones Lang LaSalle may
  also be contacting lending institutions regarding their potential interest in
  financing the Property; in some cases, potential purchasers may request Jones
  Lang LaSalle's assistance in placing debt on the Property. In such cases,
  Jones Lang LaSalle will notify and obtain consent from Owner. Owner will have
  the right to approve or decline permission. 9. Assignment: Successors.
  Neither party shall assign their rights or obligations under this Agreement,
  in whole or in part, or any payments due or to become due under this
  Agreement without prior written consent of the other party (and any such
  attempted assignment or delegation shall be void); provided, however, either
  party may assign this Agreement to an affiliate or to an entity which
  succeeds to all or substantially all of the business of the assignor, but no
  such assignment shall relieve the assignor of its obligations hereunder.
  Except as described in the preceding sentence, this Agreement shall be
  binding upon, inure to the benefit of, and be enforceable by and against the
  respective successors and assigns of the parties to this Agreement. 10. Dual
  Representation. Owner understands and acknowledges that Jones Lang LaSalle
  may solicit offers for the Property from clients of Jones Lang LaSalle or its
  affiliates and that Jones Lang LaSalle may, in addition to its representation
  of Owner hereunder, represent one or more other prospective parties to the
  Transaction. In addition, Owner understands and acknowledges that Jones Lang
  LaSalle or one of its affiliates may make an offer on behalf of itself for
  the Property. Jones Lang LaSalle shall disclose to Owner any such potential
  relationship and obtain Owner's prior approval thereof, and Jones Lang
  LaSalle shall not be entitled to any compensation from Owner, in addition to
  that set forth above, for representing itself or any other party. 11. Limited
  Liability. Neither party shall be liable to the other for, and each party
  hereby waives any and all rights to claim against the other, any special,
  indirect, incidental, consequential, punitive or exemplary damages in
  connection with this Agreement, including, but not limited to, lost profits,
  even if such party has knowledge of the possibility of such damages; and
  excluding (i) third party claims for bodily injury or property damage, and;
  (ii) claims based on Jones Lang LaSalle's gross negligence or willful
  misconduct, in no event shall Jones Lang LaSalle’ s liability to Owner exceed
  the greater of (i) Two Hundred percent (200%) of fees paid to Jones Lang
  LaSalle pursuant to this Agreement or (ii) $500,000. 12. Counterparts;
  Electronic Copies. This Agreement may be executed in any number of separate
  counterparts and by facsimile signatures, each of which shall together be
  deemed an original, but the several counterparts shall together constitute
  one and the same instrument. In addition, the parties agree that: (i) an
  electronic signature shall be considered an original signature; and (ii) a
  copy of the Agreement shall be considered an original instrument, and each,
  together or separately, shall become binding and enforceable as if original
  and the parties may rely on the same to prove the authenticity of the
  Agreement. 13. Governing Law. This Agreement shall be governed by the law of
  the state where the Property is located, without regard to the conflicts of
  law principles of such state. 14. Waiver of Trial by Jury. EACH PARTY HEREBY
  KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED BY
  APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE
  ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES THAT ANY SUCH DISPUTE
  SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY. 

  

 

	
  

  	
  GID Investment
  Advisers LLC March 29,2013 Page 8 15. Non-Discrimination Owner and Broker
  agree that the Property will be offered in compliance with all applicable anti-discrimination
  laws 16. Press Release. Any advertising, signage or press release regarding
  the marketing of the Property for sale or a consummated transaction is
  prohibited without the prior consent of Owner, which consent may be granted
  or withheld in Owner's sole discretion. 17. Complete Agreement, This document
  (including any exhibits referred to herein and attached hereto, which are
  incorporated herein by reference) contains the entire agreement between the
  parties and supersedes any prior discussions, negotiations, representations,
  or agreements, written or oral, between the parties hereto or any of their
  respective affiliates respecting the subject matter hereof. No alterations,
  additions, or other changes to this Agreement shall be made or binding unless
  made in writing and signed by both parties to this Agreement. If the
  foregoing accurately reflects our agreement, please execute this Agreement
  below and return it to the undersigned JONES LANG LA SALLE AMERICAS,
  INC." By: Title: AGREED and ACCEPTED this 2 day of April -
  ___________.WINDSOR GREEN AT AND OVER LLC By: 1 In Illinois, use Janes Lang
  LaSalle Americas (Illinois), LP., an Illinois limited partnership " In
  Illinois, use Jones Lang LaSnlle Americas (Illinois), L.P., an Illinois
  limited partnership iii In WA and/or OR, use Jones Lang LaSalle Brokerage,
  Inc. R:VAndovertLtstljij Agreement JLL (3-29-13).dDc Senior Vice president
  Tutle: Vice President 

  

 

 

 

Exhibit N

 

SCHEDULE OF PERSONAL PROPERTY

 

(Attached)

 

N-1

 

Exhibit O

 

LIST OF LEASES

 

(Attached)

 

O-1

 

Exhibit P

 

TITLE COMMITMENT

 

FIRST AMERICAN TITLE INSURANCE COMPANY

 

A.L.T.A. COMMITMENT

 

SCHEDULE A

 

	
NUMBER:
    	
13-7393
    	
EFFECTIVE DATE:
    	
June 2,   2013
    
	
 
    	
 
    	
 
    	
 @   8:00 A.M.
    

 

 

1.                                      Policy or Policies to be issued:

 

	
ALTA OWNER’S POLICY 2006
    	
 
    
	
 
    	
 
    
	
OWNER’S:
    	
$To   be determined
    
	
 
    	
 
    
	
Proposed   Insured:
    	
To   be determined
    
	
 
    	
 
    
	
ALTA LOAN POLICY 2006
    	
 
    
	
 
    	
 
    
	
LOAN:
    	
$To   be determined
    
	
 
    	
 
    
	
Proposed   Insured:
    	
To   be determined
    

 

2.                                      The estate or interest in the land described or referred to in this Commitment and covered herein is a fee simple, and title thereto is at the effective date hereof vested in:

 

Windsor Green at Andover LLC

 

3.                                      The land referred to in the Commitment is The property located at 311 & 319 Lowell Street, Andover, Essex County, Massachusetts and more particularly described in Exhibit “A”, attached.

 

NOTE 1:                                                As in hereinafter used, “recorded” shall mean “recorded with the Essex North District Registry of Deeds.”

 

 

	
 
    	
Countersigned:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    

 

P-1

 

SCHEDULE B - Section 1

 

The following requirements to be complied with:

 

1.                                      Instrument(s) creating the estate or interest to be insured must be approved, executed and filed for record:

 

NOTE 2:                                                In the case of corporate signatories, documents must be signed by the President or Vice President and Treasurer or Assistant Treasurer of the respective corporations.  Alternatively, corporate resolutions which authorize the signatories on the documents must be obtained and recorded with a clerk’s certificate of incumbency.

 

2.                                      Payment of the full consideration to, or for the account of, the grantors or mortgagors.

 

3.                                      Receipt of current and accurate instrument survey and Surveyor’s Report form acceptable to the Company in order to modify or delete Items 2 (c) and 2 (d) of Schedule B-Section 2 of the loan policy to be issued.

 

4.                                      Receipt of properly executed Mechanic’s Lien and Parties in Possession Affidavit  in order to modify Items 2 (a) and 2 (b) of Schedule B-Section 2.

 

5.                                      The actual value of the estate or interest to be insured must be disclosed to the Company, and subject to approval by the Company, entered as the amount of the policies to be insured.  Until the amount of the policies to be issued shall be determined, and entered as aforesaid, it is agreed that as between the Company, the applicant for the policies, and every person relying on the policies, the Company cannot be required to approve any such evaluation in excess of $100,000.00 and the total liability of the Company on account of these policies shall not exceed said amount.

 

6.                                      Upon full disclosure to the Company of the nature and scope of this transaction and its review and approval of the closing documents, including all instruments or documents relating to any foreclosure sale commenced within the past year, and further including updated certifications of title, the Company reserves the right to raise such other and further exceptions and requirements as are appropriate.

 

7.                                      Obtain and record discharge, termination or release of the following:

 

a)             Mortgage and Security Agreement from Windsor Green at Andover LLC to Massachusetts Housing Partnership Fund Board in the original principal amount of $15,000,000.00 dated February 15, 2008 and recorded in Book 11067, Page 58.

 

b)             Assignment of Leases, Rents and Contracts from Windsor Green at Andover LLC to Massachusetts Housing Partnership Fund Board dated February 15, 2008 and recorded in Book 11067, Page 72.

 

P-2

 

8.                                      Obtain and record Subordination, Non-Disturbance and Attornment Agreements with respect to Schedule B-Part 2, Exceptions 6, 13 and 14 in order to move to Schedule B-Part 2 of the final loan policy.

 

9.                                      Obtain and record Estoppel Certificate for Easement referenced in Schedule B-Part 1, Exception 17 in order to provide affirmative insurance that said Exception has not been violated and is in full force and effect.

 

10.                               Obtain and record consent and approval from Massachusetts Housing Partnership Fund Board pursuant to the Agreement referenced in Exception 23, to the transfer to be insured hereunder.

 

NOTE 3:  The following items apply to transactions involving limited liability companies:

 

8.                                      Good standing certificate from the Secretary of the Commonwealth of Massachusetts, disclosing names of manager(s) authorized to act on behalf of company, and naming person or entity authorized to act with respect to real estate.

 

9.                                      Documents are to be signed by the manager and/or person or entity authorized to act with respect to real estate AS ON FILE WITH THE MA SECRETARY OF STATE. In the alternative, a Manager’s Certificate is to be recorded authorizing an alternate signatory.

 

P-3

 

SCHEDULE B - Section 2

 

Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company.

 

1.                                      Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

 

2.                                      Any policy issued pursuant hereto will contain the standard exceptions set forth below.  For loan policies see specific requirements set forth in Schedule B - Section 1 hereof.

 

a.                                      Any liability for mechanics’ or materialmen’s liens.

b.                                      Rights or claims of parties in possession not shown by the public records.

c.                                       Encroachments, overlaps, boundary line disputes, and any matters that would be disclosed by an accurate survey and inspection of the premises.

d.                                      Easements, or claims of easements, not shown by the public records.

 

3.                                      The exact acreage or square footage other than stated in the description sheet annexed or the plan(s) therein referred to.

 

4.                                      Any matters that would be disclosed by a current municipal lien certificate.

 

5.                                      Title to and rights of the public and others entitled thereto in and to those portions of the insured premises lying within the bounds of   Lowell Street and the adjoining streets and ways.

 

6.                                      Terms and provisions of a lease by and between Windsor Green at Andover LLC, as Lessor, and STC Six Company, as Lessee, dated March 25, 2010, Notice of which is dated December 11, 2009 and recorded in Book 12082, Page 238, as affected by Memorandum of Lease Supplement by and between STC Six Company and Bell Atlantic Mobile of Massachusetts Corporation Ltd., dated October 27, 2010 and recorded in Book 12293, Page 93, as affected by Notice of Lease by and between STC Six Company and New Cingular Wireless PCS, LLC dated October 29, 2010 and recorded in Book 12380, Page 134, as affected by Notice of Site License Acknowledgement recorded in Book 11518, Page 144.

 

7.                                      Taking by the Commonwealth of Massachusetts Department of Public Works for the relocation of Lowell Street and for access easement on Parcel 11-R-1 shown on Plan No. 6129 by Order dated November 26, 1969, and recorded in Book 1145, Page 150, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

P-4

 

NOTE 4:                                                The Company insures against loss or damage arising out of the enforcement or attempted enforcement of rights of access over that portion of Parcel 11-R-1 not contained within the Right of Way described in the Easement recorded in Book 2820, Page 81 or within the 24’ Wide Access Easement shown on the plan recorded as Plan No. 14483.

 

8.                                      Taking by the Commonwealth of Massachusetts Department of Public Works of an easement related to Parcel 11-RS-1 Easement to construct slopes of excavation and/or embankment in Parcel 11-RS-1 shown on Plan No. 6212 by Order dated May 27, 1970, and recorded in Book 1153, Page 684, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

NOTE 5:                                                The Company insures against loss or damage arising out of the enforcement or attempted enforcement of rights of access over that portion of Parcel 11-R-1 not contained within the Right of Way described in the Easement recorded in Book 2820, Page 81 or within the 24’ Wide Access Easement shown on the plan recorded as Plan No. 14483.

 

NOTE 6:                                                This policy affirmatively insures that an exercise of rights under the Takings referenced in Exceptions 7 and 8 do not adversely affect the use of the buildings located on the Insured Premises.

 

9.                                      Rights and easement granted in Reciprocal Easement Agreement between Andover Real Estate Corporation and Rolling Green Motor Inn Corporation dated September 22, 1982, and recorded in Book 1617, Page 187, as affected by Easement Relocation Agreement dated April 28, 2005 and recorded in Book 9483, Page 73, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

NOTE 7:                                                This policy affirmatively insures that an exercise of rights under the Easement referenced in Exception 9 does not adversely affect the use of the buildings located on the Insured Premises.

 

10.                               Easement from Dauphin Corporation to Harry Axelrod dated July 15, 1985, and recorded in Book 2005, Page 128, with respect to “Right of Way Easement 66’ Wide” shown on a plan entitled “Plan of Land in Andover, Mass., owned by Rolling Green Motor Inn Corp.” dated May 29, 1985 and recorded as Plan No. 9957 as affected by Declaration and Grant of Easements between Harry Axelrod and Lowell Street Associates Limited Partnership dated May 22, 1991 recorded with the Registry in Book 3274, Page 96, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

NOTE 8:                                                This policy affirmatively insures that an exercise of rights under the Easement referenced in Exception 10 does not adversely affect the use of the buildings located on the Insured Premises.

 

P-5

 

11.                               Rights and easement granted in Easement Agreement between Inncorp Development Limited Partnership and David Bruce Maddox, Trustee of Powers Realty Trust, dated September 30, 1988, and recorded in Book 2820, Page 81, as amended by the Amendment to Access Easement Agreements recorded in Book 9483, Page 41, as affected by Confirmation Regarding Easement Agreement, dated May 8, 2007, recorded in Book 10750, Page 111, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

NOTE 9:                                                This policy affirmatively insures that an exercise of rights under the Easement referenced in Exception 11 does not adversely affect the use of the buildings located on the Insured Premises.

 

12.                               Rights granted in a Lease dated June 19, 1999, with Sprint Spectrum LP., as Tenant, Notice of which is recorded in Book 5691, Page 307.

 

13.                               Notice of Lease to Andtower, LLC dated April 28, 2005 and recorded in Book 9483, Page 59, as affected by Amendment to Notice of Lease dated April 28, 2005 and recorded in Book 9483, Page 132, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

NOTE 10:                                         This policy affirmatively insures that an exercise of rights under the tenants under the Notices of Lease referenced in Exceptions 6, 12 and 13 do not adversely affect the use of the buildings located on the Insured Premises.

 

14.                               Rights and easement granted in Easement to New England Telephone and Telegraph Company dated February 22, 2000, and recorded in Book 5691, Page 313, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

15.                               Rights and easement granted in Easement to Massachusetts Electric Company dated March 21, 2000, and recorded in Book 5708, Page 29, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

NOTE 11:                                         This policy affirmatively insures that an exercise of rights under the Easement referenced in Exception 15 does not adversely affect the use of the buildings located on the Insured Premises.

 

16.                               Terms and provisions of Declaration and Grant of Easement, Rights and Restrictions dated June 17, 2003 and recorded with the Registry in Book 7920, Page 113, as amended by Restatement of Declaration and Grant of Easements, Rights and Restrictions dated April 28, 2005 and recorded in Book 9483, Page 11, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

17.                               Grant of Utility Easement and Easement Agreement between Criterion Andover Apartments, L.P. and Yvon Cormier and Denise Enxing, Trustees of CA Investment Trust dated April 28, 2005 and recorded in Book 9483, Page 95, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

P-6

 

NOTE 11:                                         This policy affirmatively insures that an exercise of rights under the Easement referenced in Exception 17 does not adversely affect the use of the buildings located on the Insured Premises.

 

18.                               Grant of Easement between Comcast of Massachusetts I, Inc. and Criterion Apartments, LP, dated September 24, 2006, recorded in Book 10382, Page 207.

 

19.                               Easement to Verizon New England Inc., dated March 22, 2006, recorded in Book 10097, Page 46.

 

20.                               Easement to Massachusetts Electric Company, dated September 27, 2005, recorded in Book 9842, Page 154.

 

21.                               Matters disclosed on a survey entitled “ALTA/ACSM Land Title Survey in Andover, Mass.”, prepared by Hayes Engineering, dated September 27, 2007:  Gravel path shown at Northeast corner of Parcel 1appears to run on and off insured premises and abutter’s premises.

 

22.                               Terms and provision of Chapter 40B Regulatory and Affordable Housing Agreement for Limited Dividend Organizations, between Criterion Andover Apartments LP and Massachusetts Housing Partnership Fund Board, dated February 15, 2008, recorded in Book 11067, Page 28.

 

NOTE 12:                                         Although excluded from coverage under the Policy to be issued, notice is hereby given of the following matters being Items 24-29, which appear of record:

 

23.                               Notice of Variance by the Andover Board of Appeals granted to Sprint Spectrum L.P., recorded in Book 5647, Page 199 (Decision No. 2956).

 

24.                               Order of Conditions from the Andover Conservation Commission (DEP File No. 090-0853) issued October 22, 2003 and recorded on January 14, 2005 in Book 9304, Page 216, as affected by a Certificate of Compliance, recorded in Book 10737, Page 79.

 

25.                               Notice of Variance by the Andover Board of Appeals granted to Rolling Green Motor Inn Corp. recorded in Book 1910, Page 234 (Decision No. 1699).

 

26.                               Decision for Comprehensive Permit by the Andover Board of Appeals recorded in Book 8447, Page 238, as affected by Certification of No Appeal recorded in Book 8447, Page 248, as affected by Decision Consenting to Proposed Transfer of Comprehensive Permit Decision No. 3312, Decision No. 3449, dated August 16, 2004 and recorded in Book 9082, Page 177; as affected by Finding of Insubstantial Change dated February 15, 2005 and recorded in Book 9417, Page 39; as affected by Decision to Extend and Determination of Insubstantial Changes, Decision No. 3451, dated August  16, 2004 and recorded in Book 9474, Page 141; as affected by Stipulation of Dismissal with Prejudice recorded in Book 9483, Page 1, as affected by Finding of Insubstantial Change by Town

 

P-7

 

of Andover, (Comprehensive Permit #3312), issued to AND Development, LLC, dated April 25, 2005, recorded in Book 9554, Page 98. Also see Decision in Book 9696, Page 75, as affected by Decision of the Zoning Board of Appeals, Town of Andover, recorded in Book 10832, Page 31.

 

27.                               Notice of Decision by the Andover Zoning Board of Appeals granted to Altiostar Networks, Inc., recorded in Book 13434, Page 307 (Decision No. 4022).

 

28.                               Notice of Decision by the Zoning Board of Appeals of the Town of Andover recorded in Book 11995, Page 294.

 

29.                               Notice of Decision of the Town of Andover Zoning Board of Appeals dated March 3, 2011 and recorded            in Book 12467, Page 239.

 

P-8

 

EXHIBIT A

 

Real property in the Town of Andover, County of Essex, Commonwealth of Massachusetts, described as follows:

 

Parcel 1(311 Lowell Street)

 

A certain Parcel of land with the buildings and improvements thereon in Andover, Essex County, Massachusetts, and being shown as Lot 2 on a plan entitled “Plan of Land-307-311 Lowell- Street Andover, Mass.”, prepared for Lowell Street Associates Limited Partnership by Otte & Dwyer, Inc. Land Surveyors dated June 21, 2004, recorded with the Essex North Registry of Deeds (“Registry”) as Plan No. 14808 on June 30, 2004, described as follows:

 

Beginning at a point on the northwesterly sideline of said Lowell Street, said point being the Southwesterly most corner of said Lot 2; thence running

 

N 33-29-14 W one hundred eighteen and 00/100 (118.00) feet to a corner; thence turning and running

 

S 52-05-47 W two hundred forty and 72/100 (240.72) feet to a corner; thence turning and running

 

N 33-29-14 W one hundred ninety and 00/100 (190.00) feet to a corner; thence turning and running

 

S 62-29-44 W two hundred forty-nine and 86/100 (249.86) feet to a point; thence

 

S 66-05-13 W thirty-eight and 95/100 (38.95) feet to a point; thence

 

S 60-14-01 W fifteen and 62/100 (15.62) feet to a corner; thence turning and running

 

Northwesterly by a curved line to the right having a radius of 320.00 feet, a distance of seven and 04/100 (7.04) feet; thence

 

N 27-21-52 W four hundred thirty-four and 86/100 (434.86) feet to a point; thence

 

N 18-50-48 W one hundred ten and 67/100 (110.67) feet to a corner; thence turning and running

 

N 64-33-42 E six hundred sixty-five and 69/100 feet (665.69) feet to a corner; thence turning and running

 

S 26-18-33 E one hundred forty-six and 76/100 (146.76) feet to a point; thence

 

Southeasterly by a curved line to the left having a radius of 50.00 feet, a distance of seventy- eight and 54/100 (78.54) feet; thence

 

P-9

 

N 63-41-27 E thirty-six and 78/100 (36.78) feet to a corner; thence turning and running

 

S 34-36-07 E one hundred seventy-six and 83/100 (176.83) feet to a corner; thence turning and running

 

N 54-37-39 E sixty and 54/100 (60.54) feet to a corner; thence turning and running

 

S 34-34-40 E forty-five and 00/100 (45.00) feet to a corner; thence turning and running

 

S 20-40-48 W sixty-two and 81/100 (62.81) feet to a point; thence

 

Southwesterly by a curved line to the right having a radius of 50.00 feet, a distance of forty-four and 95/100 (44.95) feet; thence

 

Southeasterly by a curved line to the left having a radius of 35.00 feet, a distance of seventy-four and 60/ 100 (74.60) feet; thence

 

Southeasterly again, by a curved line to the left having a radius of 122.00 feet, a distance of ninety-seven and 40/100 feet (97.40) feet to a corner; thence turning and running

 

S 50-15-40 E three and 05/100 (3.05) feet to a corner; thence turning and running

 

N 39-44-20 E twenty-seven and 00/100 (27.00) feet to a corner; thence turning and running

 

S 50-15-40  E thirty and 00/100 feet (30.00) feet to a corner; thence turning and running

 

N 39-44-20 E eleven and 21/100 (11.21) feet to a point; thence

 

Southeasterly by a curved line to the right having a radius of 25.00 feet, a distance of forty-one and 79/100 (41.79) feet to a point; thence

 

S 44-29-27 E forty-seven and 73/100 (47.73) feet, to a point on the northwesterly sideline of said Lowell Street; thence turning and running by said sideline on three courses as follows:

 

S 37-46-23 W two hundred six and 73/100 (206.73) feet to a corner; thence turning and running

 

N 52-13-37 W five and 00/100 (5.00) feet to a corner; thence turning and running

 

Southwesterly by a curved line to the right having a radius 1047.44 feet, a distance of one hundred forty-two and 24/100 (142.24) feet to the point of beginning.

 

Together with the benefit of certain rights as provided in the following documents:

 

P-10

 

1.              Declaration and Grant of Easements between Harry Axelrod and Lowell Street Associates Limited Partnership dated May 22, 1991 recorded with the Registry in Book 3274, Page 96 (“1991 Easement Agreement”)

 

2.              Rights and easement granted in Reciprocal Easement Agreement between Andover Real Estate Corporation and Rolling Green Motor Inn Corporation dated September 22, 1982, and recorded with the Registry in Book 1617, Page 187, as affected by Easement Relocation Agreement dated April 28, 2005, and recorded with the Registry in Book 9483, Page 73.

 

3.              Rights and easements granted in a certain Declaration and Grant of Easement, Rights and Restrictions dated June 17, 2003 and recorded with the Registry in Book 7920, Page 113, as affected by Restatement of Declaration and Grant of Easements, Rights and Restrictions dated April 28, 2005 recorded with the Registry in Book 9483, Page 11.

 

Parcel 2 (319 Lowell Street)

 

The land with the buildings thereon situated on Lowell Street in Andover, No. Essex County, Massachusetts and being shown as Lot 3 on a plan of land entitled “Plan of Land in Andover, Mass. as surveyed for John Bolten” drawn by McCracken Bros. Engineers, Methuen, Mass., Scale 1”=20’ dated January 7, 1947 and recorded in No. Essex County Registry of Deeds as Plan

#1692 to which plan reference is made for a more particular description of Lot 3, as affected by Taking by the Commonwealth of Massachusetts for the relocation of Lowell Street dated December 4, 1956 and recorded in the Registry in Book 856, Page 100, as affected by an entry dated June 25, 1957 and recorded in the Registry in Book 858, Page 84, and being more particularly described as follows:

 

Beginning at a point on the northwesterly sideline of said Lowell Street said point being the southwesterly most corner of Lot 2; thence running

 

N 33-29-14 W one hundred eighteen and 00/100 (118.00) feet to a corner; thence turning and running

 

S 52-05-47 W eighty and 24/100 (80.24) feet to a corner; thence turning and running

 

S 33-31-35 E one hundred twenty-six and 06/100 (126.06) feet to a corner; thence turning and running

 

Northeasterly by the sideline of Lowell Street by a curved line to the left having a radius of 1047.44 feet, eighty-one and 19/100 (81.19) feet to the point of beginning.

 

P-11Exhibit 10.2

 

LOAN AGREEMENT

 

for a loan in the amount of

 

$40,000,000.00

 

MADE BY AND BETWEEN

 

HAMILTON GREEN APARTMENTS, LLC

a Massachusetts limited liability company

39 Brighton Avenue

Boston, Massachusetts 02134

 

AND

 

KEYBANK NATIONAL ASSOCIATION,
  a national banking association,
 127 Public Square,
 Cleveland, Ohio 44114

 

Dated as of July 15Ag, 2013

 

KeyCorp Confidential

 

 

TABLE OF CONTENTS

 

	
ARTICLE 1   INCORPORATION OF RECITALS AND EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
INCORPORATION OF RECITALS.
    	
1
    
	
1.2
    	
INCORPORATION OF EXHIBITS.
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 2   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.1
    	
DEFINED TERMS.
    	
1
    
	
2.2
    	
OTHER DEFINITIONAL PROVISIONS.
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 3   BORROWER’S REPRESENTATIONS AND WARRANTIES
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
3.1
    	
REPRESENTATIONS AND WARRANTIES.
    	
7
    
	
3.2
    	
SURVIVAL OF REPRESENTATIONS AND   WARRANTIES.
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 4   LOAN AND LOAN DOCUMENTS
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
4.1
    	
AGREEMENT TO BORROW AND LEND;   LENDER’S OBLIGATION TO DISBURSE.
    	
9
    
	
4.2
    	
LOAN DOCUMENTS.
    	
10
    
	
4.3
    	
TERM OF THE LOAN.
    	
10
    
	
4.4
    	
PREPAYMENTS.
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 5   INTEREST
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
5.1
    	
INTEREST RATE.
    	
11
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 6   COSTS OF MAINTAINING LOAN
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
6.1
    	
INCREASED COSTS AND CAPITAL   ADEQUACY.
    	
12
    
	
6.2
    	
BORROWER WITHHOLDING.
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 7   LOAN EXPENSE AND ADVANCES
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
7.1
    	
LOAN AND ADMINISTRATION EXPENSES.
    	
13
    
	
7.2
    	
ORIGINATION FEE.
    	
14
    
	
7.3
    	
EXIT FEE.
    	
14
    
	
7.4
    	
LENDER’S ATTORNEYS’ FEES AND   DISBURSEMENTS.
    	
14
    
	
7.5
    	
TIME OF PAYMENT OF FEES AND   EXPENSES.
    	
14
    
	
7.6
    	
EXPENSES AND ADVANCES SECURED BY   LOAN DOCUMENTS.
    	
15
    
	
7.7
    	
RIGHT OF LENDER TO MAKE ADVANCES TO   CURE BORROWER’S DEFAULTS.
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 8   REQUIREMENTS PRECEDENT TO THE CLOSING OF THE LOAN
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
8.1
    	
CONDITIONS PRECEDENT.
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 9   [RESERVED]
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 10   [RESERVED]
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 11   OTHER COVENANTS
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
11.1
    	
BORROWER FURTHER COVENANTS AND   AGREES AS FOLLOWS:
    	
17
    
	
11.2
    	
AUTHORIZED REPRESENTATIVE.
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 12
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
CASUALTIES AND   CONDEMNATION
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
12.1
    	
LENDER’S ELECTION TO APPLY PROCEEDS   ON INDEBTEDNESS.
    	
21
    
	
12.2
    	
BORROWER’S OBLIGATION TO REBUILD   AND USE OF PROCEEDS THEREFOR.
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 13   ASSIGNMENTS BY LENDER AND BORROWER
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
13.1
    	
ASSIGNMENTS AND PARTICIPATIONS.
    	
22
    

 

 

	
13.2
    	
PROHIBITION OF ASSIGNMENTS AND   TRANSFERS BY BORROWER.
    	
22
    
	
13.3
    	
PROHIBITION OF TRANSFERS IN   VIOLATION OF ERISA.
    	
23
    
	
13.4
    	
SUCCESSORS AND ASSIGNS.
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 14   TIME OF THE ESSENCE
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
14.1
    	
TIME IS OF THE ESSENCE. BORROWER   AGREES THAT TIME IS OF THE ESSENCE UNDER THIS AGREEMENT.
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 15   EVENTS OF DEFAULT
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 16   LENDER’S REMEDIES IN EVENT OF DEFAULT
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
16.1
    	
REMEDIES CONFERRED UPON LENDER.
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 17   GENERAL PROVISIONS
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
17.1
    	
CAPTIONS.
    	
26
    
	
17.2
    	
MODIFICATION; WAIVER.
    	
26
    
	
17.3
    	
GOVERNING LAW.
    	
26
    
	
17.4
    	
ACQUIESCENCE NOT TO CONSTITUTE   WAIVER OF LENDER’S REQUIREMENTS.
    	
26
    
	
17.5
    	
DISCLAIMER BY LENDER.
    	
26
    
	
17.6
    	
PARTIAL INVALIDITY; SEVERABILITY.
    	
27
    
	
17.7
    	
DEFINITIONS INCLUDE AMENDMENTS.
    	
27
    
	
17.8
    	
EXECUTION IN COUNTERPARTS.
    	
27
    
	
17.9
    	
ENTIRE AGREEMENT.
    	
27
    
	
17.10
    	
WAIVER OF DAMAGES.
    	
27
    
	
17.11
    	
CLAIMS AGAINST LENDER.
    	
27
    
	
17.12
    	
JURISDICTION.
    	
28
    
	
17.13
    	
SET-OFFS.
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 18   NOTICES
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
ARTICLE 19   WAIVER OF JURY TRIAL
    	
29
    
	
 
    	
 
    	
 
    	
 
    
	
EXHIBITS TO LOAN AGREEMENT
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Exhibit A
    	
Legal   Description of Land
    	
 
    
	
Exhibit B
    	
Permitted   Exceptions
    	
 
    
	
Exhibit C
    	
Title   Requirements
    	
 
    
	
Exhibit D
    	
Form of   Survey Certification
    	
 
    
	
Exhibit E
    	
[Reserved]
    	
 
    
	
Exhibit F
    	
Insurance   Requirements
    	
 
    
					

 

ii

 

LOAN AGREEMENT

“Project located at 311 and 319 Lowell Street, Andover, Massachusetts”

 

THIS LOAN AGREEMENT (“Agreement”) is made as of July       , 2013, by and between HAMILTON GREEN APARTMENTS, LLC (“Borrower”), a Massachusetts limited liability company, and KEYBANK NATIONAL ASSOCIATION, a national banking association, its successors and assigns (“Lender”).

 

W  I  T  N  E  S  S  E  T  H:

 

RECITALS

 

A.                                    Borrower is the owner in fee simple of land, and associated development rights, located at 311 and 319 Lowell Street, in the Town of Andover, County of Essex, Commonwealth of Massachusetts, and legally described in Exhibit A attached hereto (collectively, the “Land”).

 

B.                                    Borrower has applied to Lender for a loan in the amount of FORTY MILLION DOLLARS ($40,000,000.00) (the “Loan”) to reimburse Borrower for certain acquisition costs of the Project, and Lender is willing to make the Loan on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows:

 

ARTICLE 1
  INCORPORATION OF RECITALS AND EXHIBITS

 

1.1                               Incorporation of Recitals.

 

The foregoing preambles and all other recitals set forth herein are made a part hereof by this reference.

 

1.2                               Incorporation of Exhibits.

 

Exhibits A through F, to this Agreement, attached hereto are incorporated in this Agreement and expressly made a part hereof by this reference.

 

ARTICLE 2
  DEFINITIONS

 

2.1                               Defined Terms.

 

The following terms as used herein shall have the following meanings:

 

Adjusted LIBOR Rate: For any LIBOR Rate Interest Period, an interest rate per annum equal to the sum of (a) the rate obtained by dividing (i) the Daily LIBOR Rate for such LIBOR Rate Interest Period by (ii) a percentage equal to one hundred percent (100%) minus the Reserve Percentage for such LIBOR Rate Interest Period and (b) the LIBOR Rate Margin.

 

 

Adjusted Prime Rate: A rate per annum equal to the sum of (a) the Prime Rate Margin and (b) the greater of (i) the Prime Rate or (ii) One Percent (1%) in excess of the Federal Funds Effective Rate, provided, however, that the Adjusted Prime Rate as of a date shall never be less than the Adjusted LIBOR Rate in effect on such date for a LIBOR Interest Period of one (1) Month. Any change in the Adjusted Prime Rate (or the Federal Funds Effective Rate, as applicable) shall be effective immediately from and after such change in the Adjusted Prime Rate.

 

Affiliate:  With respect to a specified person or entity, any individual, partnership, corporation, limited liability company, trust, unincorporated organization, association or other entity which, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with such person or entity, including, without limitation, any general or limited partnership in which such person or entity is a partner.

 

Agreement:  This Loan Agreement.

 

Applicable Rate:  As such term is defined in Section 5.1(a).

 

Appraisal.  An MAI certified appraisal of the Project performed in accordance with FIRREA and Lender’s appraisal requirements by an appraiser selected and retained by Lender.

 

Assignment of Rents: An assignment of leases and rents made by Borrower in favor of Lender assigning all leases, subleases and other agreements relating to the use and occupancy of all or any portion of the Project, and all present and future leases, rents, issues and profits therefrom.

 

Authorized Representative:   Harold Brown.

 

Bankruptcy Code:  Title 11 of the United States Code entitled “Bankruptcy” as now or hereafter in effect, or any successor thereto or any other present or future bankruptcy or insolvency statute.

 

Business Day:  A day of the year on which banks are not required or authorized to close in Cleveland, Ohio.

 

Closing Date or Closing of the Loan: The date the Mortgage has been recorded, all conditions to the disbursements of the proceeds of the Loan have been satisfied and Lender has disbursed proceeds of the Loan to Borrower in accordance with the terms and conditions of this Agreement.

 

Collateral Assignment of Management Agreement:  A collateral assignment and security agreement executed by Borrower in favor of the Lender as security for Borrower’s obligations under the Loan granting a first priority lien on Borrower’s interest in the management agreement for the Project acquired with the Loan.

 

Control:  As such term is used with respect to any person or entity, including the correlative meanings of the terms “controlled by” and “under common control with”, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such person or entity, whether through the ownership of voting securities, by contract or otherwise.

 

Daily LIBOR Rate: The per annum rate calculated by the Lender in good faith on a daily basis, which Lender determines with reference to the rate (rounded upwards to the next higher whole multiple of 1/16th if such rate is not such a multiple) based on the one month London Interbank offered rate for deposits in U.S. Dollars at approximately 11:00 a.m. (London time) on the second LIBOR Business Day preceding the date of the calculation as determined and adjusted from time to time in Lender’s sole discretion.

 

2

 

Debt Service Coverage:  With respect to a particular period, the ratio of (a) the annualized Net Operating Income of the Project to (b) the Total Annual Debt Service.

 

Default or default:  Any event, circumstance or condition, which, if it were to continue uncured, would, with notice or lapse of time or both, constitute an Event of Default hereunder.

 

Default Rate:  A rate per annum equal to three percentage points (300 basis points) in excess of the Applicable Rate, but shall not at any time exceed the highest rate permitted by law.

 

Environmental Indemnity:  An environmental indemnity from the Borrower and Guarantor, jointly and severally, indemnifying Lender with regard to all matters related to Hazardous Material and other environmental matters.

 

Environmental Proceedings:  Any environmental proceedings, whether civil (including actions by private parties), criminal, or administrative proceedings, relating to the Project.

 

Environmental Report:  An environmental report prepared at Borrower’s expense by a qualified environmental consultant approved by Lender, dated not more than three (3) months prior to the Closing Date and addressed to Lender (or subject to separate letter agreement permitting Lender to relay on such environmental report).

 

ERISA:  The Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder from time to time.

 

Event of Default:  As such term is defined in Article 19.

 

Exit Fee:  As such term is defined in Section 7.3.

 

Federal Funds Effective Rate:  Shall mean, for any day, the rate per annum (rounded upward to the nearest on one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate.”

 

FIRREA:  The Financial Institutions Reform, Recovery And Enforcement Act of 1989, as amended from time to time.

 

Governmental Approvals:  Collectively, all consents, licenses, and permits and all other authorizations or approvals required from any Governmental Authority for the operation of the Project.

 

Governmental Authority:  Any federal, state, county or municipal government, or political subdivision thereof, any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality, or public body, or any court, administrative tribunal, or public utility.

 

Gross Revenues:  The current rent roll for the Project, annualized, plus for a trailing twelve (12) month period, all other miscellaneous income derived from owning the Project; provided, however, that in no event shall Gross Revenues for such Project include (i) any loan proceeds; (ii) proceeds or payments under insurance policies (except proceeds of business interruption insurance); (iii) condemnation proceeds; (iv) any security deposits received from a Tenant in such Project, unless and until the same are

 

3

 

applied to rent or other obligations in accordance with such Tenant’s lease; or (v) any other extraordinary items, in Lender’s reasonable discretion.

 

Guarantor: New England Realty Associates, a [Massachusetts limited partnership]

 

Hazardous Material:  Means and includes gasoline, petroleum, asbestos containing materials, explosives, radioactive materials or any hazardous or toxic material, substance or waste which is defined by those or similar terms or is regulated as such under any Law of any Governmental Authority having jurisdiction over the Project or any portion thereof or its use, including: (i) any “hazardous substance” defined as such in (or for purposes of) the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A. § 9601(14) as may be amended from time to time, or any so-called “superfund” or “superlien” Law, including the judicial interpretation thereof; (ii) any “pollutant or contaminant” as defined in 42 U.S.C.A. § 9601(33); (iii) any material now defined as “hazardous waste” pursuant to 40 C.F.R. Part 260; (iv) any petroleum, including crude oil or any fraction thereof; (v) natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel; (vi) any “hazardous chemical” as defined pursuant to 29 C.F.R. Part 1910; and  (vii) any other toxic substance or contaminant that is subject to any other Law or other past or present requirement of any Governmental Authority.  Any reference above to a Law, includes the same as it may be amended from time to time, including the judicial interpretation thereof.

 

Impound Account: As such term is defined in Section 11.1(e).

 

Improvements:  The improvements referred to in Recital A hereto.

 

Including or including:  Including but not limited to.

 

Interest Rate Agreement:  An Interest Rate Protection Product purchased by Borrower from Lender.

 

Interest Rate Protection Product:  An interest rate hedging product, such as a cap or swap.

 

Internal Revenue Code:  The Internal Revenue Code of 1986, as amended from time to time.

 

Land:  As such term is defined in Recital A.

 

Laws:  Collectively, all federal, state and local laws, statutes, codes, ordinances, orders, rules and regulations, including judicial opinions or precedential authority in the applicable jurisdiction.

 

Late Charge:  As such term is defined in Section 4.6.

 

Leases:  The collective reference to all leases, subleases and occupancy agreements affecting the Project or any part thereof now existing or hereafter executed and all amendments, modifications or supplements thereto approved in writing by Lender.

 

Lender:  As defined in the opening paragraph of this Agreement, and including any successor holder of the Loan from time to time.

 

LIBOR Business Day:  A Business Day on which dealings in U.S. dollars are carried on in the London Interbank Market.

 

4

 

LIBOR Rate Interest Period:  With respect to each amount bearing interest at a LIBOR based rate, a period of one LIBOR Business Day, commencing on the date a disbursement of the Loan proceeds is made, continued or converted.

 

LIBOR Rate Margin:  2.25% percent (225 basis points) per annum, subject to increase as set forth in Section 5.1(d).

 

Limited Recourse Guaranty Agreement: A limited recourse guaranty agreement executed by the Guarantor in favor of Lender with respect to the Loan.

 

Loan:  As defined in Recital B.

 

Loan Amount:  The maximum amount of the Loan as set forth in Section 4.1(a) as reduced by principal payments made from time to time.

 

Loan Documents:  The collective reference to this Agreement, the documents and instruments listed in Section 4.2, and all the other documents and instruments entered into from time to time, evidencing or securing the Loan or any obligation of payment thereof or performance of Borrower’s or Guarantor’s obligations in connection with the transaction contemplated hereunder, each as amended.

 

Loan to Value Ratio:  The ratio of the maximum amount of the Loan to value of the Project, as set forth in an Appraisal of the Project

 

Material Adverse Change or material adverse change:  If, in Lender’s reasonable discretion, the business prospects, operations or financial condition of a person, entity or property has changed in a manner which could impair the value of Lender’s security for the Loan, prevent timely repayment of the Loan or otherwise prevent the applicable person or entity from timely performing any of its material obligations under the Loan Documents.

 

Maturity Date:  October 15, 2013.

 

Monthly Excess Cash Flow:  For any month, the amount by which Gross Revenues exceed the sum of (a) actual cash operating expenses and (b) actual debt service on the Loan.

 

Monthly Insurance Impound: As such term is defined in Section 11.1(e).

 

Monthly Tax Impound: As such term is defined in Section 11.1(e).

 

Mortgage:  A mortgage (or deed of trust), assignment of leases and rents, security agreement and fixture filing, executed by Borrower for the benefit of Lender securing this Agreement, the Note, and all obligations of Borrower in connection with the Loan, granting a first priority lien on Borrower’s fee interest in the Project, subject only to the Permitted Exceptions.

 

Net Operating Income:  For any period, Gross Revenues less Operating Expenses.

 

Note:  A promissory note, in the Loan Amount, executed by Borrower and payable to the order of Lender, evidencing the Loan.

 

Operating Expenses:  For a trailing twelve (12) month period as of a particular date of calculation, the actual costs and expenses of owning, operating, managing and maintaining the Project for such period as confirmed by an Appraisal of the Project.  Operating Expenses shall include (a) fixed expenses such as insurance, real estate and other taxes, (b) costs of repairs and maintenance of the Project,

 

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(c) expenses for cleaning, utilities, administration, landscaping and security, (d) an assumed annual replacement reserve charge of $250 per apartment unit in such Project and (e) an annual management fee equal to the lesser of Five Percent (5%) of gross rents from such Project or the actual management fee paid by the Borrower owning such Project, and shall exclude (x) all expenses for capital improvements and replacements, (y) debt service, (z) depreciation or amortization of capital expenditures and other similar non-cash items.  Operating Expenses for such Project during such period incurred by Borrower shall also be determined on a cash basis (except for real and personal property taxes and insurance premiums, which shall be determined on an accrual basis), excepting, however, (i) interest or principal due on the Loan and (ii) capital expenditures.

 

Permitted Exceptions:  Those matters listed on Schedule B to the Title Policy to which title to the Project may be subject to on the Closing Date and thereafter such other title exceptions as Lender may reasonably approve in writing.

 

Prime Rate:  That interest rate established from time to time by Lender as Lender’s prime rate,  whether or not such rate is publicly announced; the Prime Rate may not be the lowest interest rate charged by Lender for commercial or other extensions of credit;

 

Prime Rate Margin:  0% (0 basis points) per annum.

 

Pro-Forma Projection:  A pro forma statement of projected income and expenses of Project.

 

Project:  The collective reference to (i) the Land, together with all buildings, structures and improvements located or to be located thereon, including the Improvements, (ii) all rights, privileges, easements and hereditaments relating or appertaining thereto, and (iii) all personal property, fixtures and equipment required or beneficial for the operation thereof.

 

Required Permits:  Each building permit, environmental permit, utility permit, land use permit, wetland permit and any other permits, approvals or licenses issued by any Governmental authority which are required in connection with the operation of the Project.

 

Reserve Percentage:  For any LIBOR Rate Interest Period, that percentage which is specified three (3) Business Days before the first day of such LIBOR Rate Interest Period by the Board of Governors of the Federal Reserve System (or any successor) or any other governmental or quasi-governmental authority with jurisdiction over Lender for determining the maximum reserve requirement (including, but not limited to, any marginal reserve requirement) for Lender with respect to liabilities constituting of or including (among other liabilities) Eurocurrency liabilities in an amount equal to that portion of the Loan affected by such LIBOR Rate Interest Period and with a maturity equal to such LIBOR Rate Interest Period.

 

Soil Report:  A soil test report prepared by a licensed engineer satisfactory to Lender indicating to the satisfaction of Lender that the soil and subsurface conditions underlying the Project will support the Improvements.

 

State:  The state in which the Land is located.

 

Tenant:  The tenant under a Lease.

 

Title Insurer:  Commonwealth Land Title Insurance Company, or such other title insurance company licensed in the State as may be approved in writing by Lender.

 

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Title Policy:  An ALTA Mortgagee’s Loan Title Insurance Policy with extended coverage issued by the Title Insurer insuring the lien of the Mortgage as a valid first, prior and paramount lien upon the Project  and all appurtenant easements, and subject to no other exceptions other than the Permitted Exceptions and otherwise satisfying the requirements of Exhibit C attached hereto and made a part hereof.

 

Total Annual Debt Service:  With respect to a Project, the aggregate of debt service payments (principal and interest) during a twelve (12) month period under a mortgage style amortization of the original principal amount of such Project Loan, assuming (x) a per annum interest rate equal to 4.5%, and (y) monthly payments of principal and interest based on an amortization period of thirty (30) years.

 

Transfer:  Any sale, transfer, lease (other than a Lease approved by Lender), conveyance, alienation, pledge, assignment, mortgage, encumbrance hypothecation or other disposition of (a) all or any portion of the Project or any portion of any other security for the Loan, (b) all or any portion of the Borrower’s right, title and interest (legal or equitable) in and to the Project or any portion of any other security for the Loan, or (c) any interest in Borrower or any interest in any entity which directly or indirectly holds an interest in, or directly or indirectly controls, Borrower.

 

2.2                               Other Definitional Provisions.

 

All terms defined in this Agreement shall have the same meanings when used in the Note, Mortgage, any other Loan Documents, or any certificate or other document made or delivered pursuant hereto.  The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement.

 

ARTICLE 3
  BORROWER’S REPRESENTATIONS AND WARRANTIES

 

3.1                               Representations and Warranties.

 

To induce Lender to execute this Agreement and perform its obligations hereunder, Borrower hereby represents and warrants to Lender as follows:

 

(a)                                 Borrower has good and marketable fee simple title to the Project, subject only to the Permitted Exceptions.

 

(b)                                 Except as previously disclosed to Lender in writing, no litigation or proceedings are pending, or to the best of Borrower’s knowledge threatened, against Borrower or any Guarantor, which could, if adversely determined, cause a Material Adverse Change with respect to Borrower, any Guarantor or the Project.  There are no pending Environmental Proceedings and Borrower has no knowledge of any threatened Environmental Proceedings or any facts or circumstances which may give rise to any future Environmental Proceedings.

 

(c)                                  Borrower is a duly organized and validly existing limited liability company and has full power and authority to execute, deliver and perform all Loan Documents to which Borrower is a party, and such execution, delivery and performance have been duly authorized by all requisite action on the part of Borrower.

 

(d)                                 No consent, approval or authorization of or declaration, registration or filing with any Governmental Authority or nongovernmental person or entity, including any creditor, partner, or member of Borrower or any Guarantor, is required in connection with the execution, delivery and performance of this Agreement or any of the Loan Documents other than the recordation of the Mortgage, Assignment of Leases and Rents and the filing of UCC-1 Financing Statements, except for such consents, approvals or

 

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authorizations of or declarations or filings with any Governmental Authority or non-governmental person or entity where the failure to so obtain would not have an adverse effect on Borrower or such Guarantor or which have been obtained as of any date on which this representation is made or remade.

 

(e)                                  The execution, delivery and performance of this Agreement, the execution and payment of the Note and the granting of the Mortgage and other security interests under the other Loan Documents have not constituted and will not constitute, upon the giving of notice or lapse of time or both, a breach or default under any other agreement to which Borrower or Guarantor is a party or may be bound or affected, or a violation of any law or court order which may affect the Project, any part thereof, any interest therein, or the use thereof.

 

(f)                                   There is no default under this Agreement or and of the other Loan Documents, nor any condition which, after notice or the passage of time or both, would constitute a default or an Event of Default under said documents.

 

(g)                                  No condemnation of any portion of the Project, (ii) no condemnation or relocation of any roadways abutting the Project materially affecting access to the Project, and (iii) no proceeding to deny access to the Project from any point or planned point of access to the Project, has commenced or, to the best of Borrower’s knowledge, is contemplated by any Governmental Authority.

 

(h)                                 No brokerage fees or commissions are payable by or to any person in connection with this Agreement or the Loan to be disbursed hereunder.

 

(i)                                     All financial statements and other information previously furnished by Borrower or any Guarantor to Lender in connection with the Loan are true, complete and correct and fairly present the financial conditions of the subjects thereof as of the respective dates thereof and do not fail to state any material fact necessary to make such statements or information not misleading, and no Material Adverse Change with respect to Borrower or any Guarantor has occurred since the respective dates of such statements and information.  Neither Borrower nor any Guarantor has any material liability, contingent or otherwise, not disclosed in such financial statements.

 

(j)                                    Except as disclosed by Borrower to Lender, (i) the Project is in a clean, safe and healthful condition, and, except for materials used in the ordinary course of maintenance and operation of the Project, is free of all Hazardous Material and is in compliance with all applicable Laws; (ii) neither Borrower nor, to the best knowledge of Borrower, any other person or entity, has ever caused or permitted any Hazardous Material to be placed, held, located or disposed of on, under, at or in a manner to affect the Project, or any part thereof, and the Project has never been used (whether by Borrower or, to the best knowledge of Borrower, by any other person or entity) for any activities involving, directly or indirectly, the use, generation, treatment, storage, transportation, or disposal of any Hazardous Material; (iii) neither the Project nor Borrower is subject to any existing, pending, or, to the best of Borrower’s knowledge, threatened investigation or inquiry by any Governmental Authority, and the Project is not subject to any remedial obligations under any applicable Laws pertaining to health or the environment; and (iv) there are no underground tanks, vessels, or similar facilities for the storage, containment or accumulation of Hazardous Materials of any sort on, under or affecting the Project.

 

(j)                                    The Project is taxed separately without regard to any other property and for all purposes the Project may be mortgaged, conveyed and otherwise dealt with as an independent parcel.

 

(k)                                 Except for Leases which have been provided to and approved by Lender in writing, Borrower and its agents have not entered into any non-residential Leases, subleases or other arrangements for occupancy of space within the Project.  True, correct and complete copies of all non-residential Leases, as amended, have been delivered to Lender.  All Leases are in full force and effect.  Neither

 

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Borrower nor any Tenant is in default under any Lease and Borrower has disclosed to Lender in writing any material default by the tenant under any non-residential Lease.

 

(l)                                     The Loan is not being made for the purpose of purchasing or carrying “margin stock” within the meaning of Regulation G, T, U or X issued by the Board of Governors of the Federal Reserve System, and Borrower agrees to execute all instruments necessary to comply with all the requirements of Regulation U of the Federal Reserve System.

 

(m)                             Borrower is not a party in interest to any plan defined or regulated under ERISA, and the assets of Borrower are not “plan assets” of any employee benefit plan covered by ERISA or Section 4975 of the Internal Revenue Code.

 

(n)                                 Borrower is not a “foreign person” within the meaning of Section 1445 or 7701 of the Internal Revenue Code.

 

(o)                                 Borrower uses no trade name other than its actual name set forth herein.  The principal place of business of Borrower is as stated in Article 22.

 

(p)                                 Borrower’s place of formation or organization is the Commonwealth of Massachusetts.

 

(q)                                 All statements set forth in the Recitals are true and correct.

 

(r)                                    Neither Borrower nor any Guarantor is (or will be) a person with whom Lender is restricted from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury of the United States of America (including, those Persons named on OFAC’s Specially Designated and Blocked Persons list) or under any 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 governmental action and is not and shall not engage in any dealings or transactions or otherwise be associated with such persons.  In addition, Borrower hereby agrees to provide to the Lender with any additional information that the Lender deems necessary from time to time in order to ensure compliance with all applicable Laws concerning money laundering and similar activities.

 

3.2                               Survival of Representations and Warranties.

 

Borrower agrees that all of the representations and warranties set forth in Section 3.1 and elsewhere in this Agreement are true as of the date hereof, will be true on the Closing Date and, except for matters which have been disclosed by Borrower and approved by Lender in writing, at all times thereafter.

 

ARTICLE 4
  LOAN AND LOAN DOCUMENTS

 

4.1                               Agreement to Borrow and Lend; Lender’s Obligation to Disburse.

 

Subject to the terms, provisions and conditions of this Agreement and the other Loan Documents, Borrower agrees to borrow from Lender and Lender agrees to lend to Borrower the Loan, for the purposes and subject to all of the terms, provisions and conditions contained in this Agreement.  If Lender consists of more than one party, the obligations of each such party with respect to the amount it has agreed to loan to Borrower shall be several (and not joint and several) and shall be limited to its proportionate share of the Loan and of each advance.

 

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(a)                                 The maximum amount of the Loan shall not exceed the lesser of (i) Seventy Percent (70%) of the purchase price for the Project, as confirmed by an Appraisal obtained by Lender (at Borrower’s cost) as set forth herein, (ii) a maximum Loan to Value Ratio for the Project of Seventy Percent (70%) or (iii) such amount as will result in a Debt Service Coverage Ratio for the Project, as set forth in the Pro Forma Projection, of at least, a minimum of 1.20:1.

 

(b)                                 To the extent that Lender may have acquiesced in noncompliance with any requirements precedent to the Closing of the Loan or precedent to any subsequent disbursement of Loan proceeds, such acquiescence shall not constitute a waiver by Lender, and Lender may at any time after such acquiescence require Borrower to comply with all such requirements.

 

4.2                               Loan Documents.

 

Borrower agrees that it will, on or before the Closing Date, execute and deliver or cause to be executed and delivered to Lender the following documents in form and substance acceptable to Lender:

 

(a)                                 The Note.

 

(b)                                 The Mortgage.

 

(c)                                  The Assignment of Rents.

 

(d)                                 The Limited Recourse Guaranty Agreement.

 

(f)                                   The Environmental Indemnity.

 

(g)                                  The Collateral Assignment of Management Agreement.

 

(h)                                 Such UCC financing statements as Lender determines are advisable or necessary to perfect or notify third parties of the security interests intended to be created by the Loan Documents.

 

(i)                                     Such other documents, instruments or certificates as Lender and its counsel may reasonably require, including such documents as Lender in its sole discretion deems necessary or appropriate to effectuate the terms and conditions of this Agreement and the Loan Documents, and to comply with the laws of the State.

 

4.3                               Term of the Loan.

 

All principal, interest and other sums due under the Loan Documents shall be due and payable in full on the Maturity Date without relief from valuation and appraisement laws.

 

4.4                               Prepayments.

 

Borrower shall have the right to make prepayments of the Loan, in whole or in part, without prepayment penalty, upon not less than seven (7) days’ prior written notice to Lender.  No prepayment of all or part of the Loan shall be permitted unless same is made together with the payment of all interest accrued on the Loan through the date of prepayment and attorneys’ fees and disbursements incurred by Lender as a result of the prepayment.

 

4.5.                           Required Principal Payments.

 

All principal shall be paid on or before the Maturity Date.

 

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4.6                               Late Charge.

 

Any and all amounts due hereunder or under the other Loan Documents which remain unpaid more than five (5) days after the date said amount was due and payable shall incur a fee (the “Late Charge” of four percent (4%) of said amount, which payment shall be in addition to all of Lender’s other rights and remedies under the Loan Documents, provided that no Late Charge shall apply to the final payment of principal on the Maturity Date.

 

ARTICLE 5
  INTEREST

 

5.1                               Interest Rate.

 

(a)                                 Provided that no Event of Default exists, the Loan will bear interest at the Applicable Rate, unless the Default Rate is applicable. The Adjusted LIBOR Rate shall be the “Applicable Rate” for the Loan, except that the Adjusted Prime Rate shall be the “Applicable Rate” with respect to portions of the Loan as to which a Daily LIBOR Rate is not available.  All payments (whether of principal or of interest) shall be deemed credited to Borrower’s account only if received by 12:00 noon Cleveland time on a Business Day; otherwise, such payment shall be deemed received on the next Business Day.

 

(b) If Lender determines (which determination shall be conclusive and binding upon Borrower, absent manifest error) (i) that Dollar deposits are not generally available at such time in the London Interbank Market for deposits in Dollars in an amount equal to the Loan, (ii) that the rate at which such deposits are being offered will not adequately and fairly reflect the cost to Lender of maintaining a Daily LIBOR Rate on the Loan or of funding the same for such LIBOR Rate Interest Period due to circumstances affecting the London Interbank Market generally, (iii) that reasonable means do not exist for ascertaining a Daily LIBOR Rate, or (iv) that the Adjusted LIBOR Rate would be in excess of the maximum interest rate which Borrower may by law pay, then, in any such event, Lender shall so notify Borrower and all portions of the Loan bearing interest at the Adjusted LIBOR Rate that are so affected shall, as of the date of such notification with respect to an event described in clause (ii) or (iv) above, or as of the expiration of the applicable LIBOR Rate Interest Period with respect to an event described in clause (i) or (iii)  above, bear interest at the Adjusted Prime Rate until such time as the situations described above are no longer in effect.

 

(c)                                  If the introduction of or any change in any Law or in the interpretation thereof by any Governmental Authority charged with the administration or interpretation thereof, shall make it unlawful for Lender to maintain an Adjusted LIBOR Rate with respect to the Loan or any portion thereof, or to fund the Loan or any portion thereof in United States dollars in the London Interbank market, then (i) Lender shall notify Borrower that Lender is no longer able to maintain the Adjusted LIBOR Rate and (ii) the interest rate for any portion of the Loan for which the Adjusted LIBOR Rate is then applicable shall automatically be converted to the Adjusted Prime Rate.

 

(d)                                 Interest at the Applicable Rate (or Default Rate) shall be calculated for the actual number of days elapsed on the basis of a 360-day year, including the first date of the applicable period to, but not including, the date of repayment.

 

(e)                                  The Loan shall bear interest at the Default Rate at any time at which an Event of Default shall exist.

 

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5.2                               Interest Rate Agreements.

 

(a)                                 Any indebtedness incurred pursuant to an Interest Rate Agreement entered into by Borrower and Lender shall constitute indebtedness evidenced by the Note and secured by the Mortgage and the other Loan Documents to the same extent and effect as if the terms and provisions of such Interest Rate Agreement were set forth herein, whether or not the aggregate of such indebtedness, together with the disbursements made by Lender of the proceeds of the Loan, shall exceed the face amount of the Note.

 

(b)                                 Borrower hereby collaterally assigns to Lender for the benefit of Lender any and all Interest Rate Protection Products purchased or to be purchased by Borrower in connection with the Loan, as additional security for the Loan, and agrees to provide Lender with any additional documentation requested by Lender in order to confirm or perfect such security interest during the term of the Loan.  If Borrower obtains an Interest Rate Protection Product from a party other than Lender, Borrower shall deliver to Lender such third party’s consent to such collateral assignment.  No Interest Rate Protection Product purchased from a third party may be secured by an interest in Borrower or the Project.

 

ARTICLE 6
  COSTS OF MAINTAINING LOAN

 

6.1                               Increased Costs and Capital Adequacy.

 

(a)                                 Borrower recognizes that the cost to Lender of maintaining the Loan or any portion thereof may fluctuate and, Borrower agrees to pay Lender additional amounts to compensate Lender for any increase in its actual costs incurred in maintaining the Loan or any portion thereof outstanding or for the reduction of any amounts received or receivable from Borrower as a result of:

 

(i)                                     any change after the date hereof in any applicable Law, regulation or treaty, or in the interpretation or administration thereof, or by any domestic or foreign court, (A) changing the basis of taxation of payments under this Agreement to Lender (other than taxes imposed on all or any portion of the overall net income or receipts of Lender), or (B) imposing, modifying or applying any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, credit extended by, or any other acquisition of funds for loans by Lender (which includes the Loan or any applicable portion thereof) (provided, however, that Borrower shall not be charged again the Reserve Percentage already accounted for in the definition of the Adjusted LIBOR Rate), or (C) imposing on Lender, or the London interbank market generally, any other condition affecting the Loan, provided that the result of the foregoing is to increase the cost to Lender of maintaining the Loan or any portion thereof or to reduce the amount of any sum received or receivable from Borrower by Lender under the Loan Documents; or

 

(ii)                                  the maintenance by Lender of reserves in accordance with reserve requirements promulgated by the Board of Governors of the Federal Reserve System of the United States with respect to “Eurocurrency Liabilities” of a similar term to that of the applicable portion of the Loan (without duplication for reserves already accounted for in the calculation of a LIBOR Rate pursuant to the terms hereof).

 

(b)         If the application of any Law, rule, regulation or guideline adopted or arising out of the Basle Committee on Banking Regulations and Supervisory Practices entitled “International Convergence of Capital Measurement and Capital Standards”, or the adoption after the date hereof of any other Law, rule, regulation or guideline regarding capital adequacy, or any change after the date hereof in any of the foregoing, or in the interpretation or administration thereof by any domestic or foreign Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or

 

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compliance by Lender, with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has the effect of reducing the rate of return on Lender’s capital to a level below that which Lender would have achieved but for such application, adoption, change or compliance (taking into consideration the policies of Lender with respect to capital adequacy), then, from time to time Borrower shall pay to Lender such additional amounts as will compensate Lender for such reduction with respect to any portion of the Loan outstanding.

 

(c)                                  Any amount payable by Borrower under subsection (a) or subsection (b) of this Section 6.1 shall be paid within five (5) days of receipt by Borrower of a certificate signed by an authorized officer of Lender setting forth the amount due and the basis for the determination of such amount, which statement shall be conclusive and binding upon Borrower, absent manifest error.  Failure on the part of Lender to demand payment from Borrower for any such amount attributable to any particular period shall not constitute a waiver of Lender’s right to demand payment of such amount for any subsequent or prior period.  Lender shall use reasonable efforts to deliver to Borrower prompt notice of any event described in subsection (a) or (b) above, of the amount of the reserve and capital adequacy payments resulting therefrom and the reasons therefor and of the basis of calculation of such amount; provided, however, that any failure by Lender to so notify Borrower shall not affect Borrower’s obligation to pay the reserve and capital adequacy payment resulting therefrom.

 

6.2                               Borrower Withholding.

 

If by reason of a change in any applicable Laws occurring after the date hereof, Borrower is required by Law to make any deduction or withholding in respect of any taxes (other than taxes imposed on or measured by the net income of Lender or any franchise tax imposed on Lender), duties or other charges from any payment due under the Note to the maximum extent permitted by law, the sum due from Borrower in respect of such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, Lender receives and retains a net sum equal to the sum which it would have received had no such deduction or withholding been required to be made.

 

ARTICLE 7
  LOAN EXPENSE AND ADVANCES

 

7.1                               Loan and Administration Expenses.

 

Borrower unconditionally agrees to pay all expenses of the Loan, including all amounts payable pursuant to Sections 7.2, 7.3 and 7.4 and any and all other fees owing to Lender pursuant to the Loan Documents or any separate fee agreement, and also including, without limiting the generality of the foregoing, all recording, filing and registration fees and charges, mortgage or documentary taxes, all insurance premiums, title insurance premiums and other charges of the Title Insurer, printing and photocopying expenses, survey fees and charges, cost of certified copies of instruments, cost of premiums on surety company bonds and the Title Policy, charges of the Title Insurer or other escrowee for administering disbursements, all appraisal fees, insurance consultant’s fees, environmental consultant’s fees, travel related expenses and all costs and expenses incurred by Lender in connection with the determination of whether or not Borrower has performed the obligations undertaken by Borrower hereunder or has satisfied any conditions precedent to the obligations of Lender hereunder and, if any default or Event of Default occurs hereunder or under any of the Loan Documents or if the Loan or Note or any portion thereof is not paid in full when and as due, all costs and expenses of Lender (including, without limitation, court costs and counsel’s fees and disbursements and fees and costs of paralegals) incurred in attempting to enforce payment of the Loan and expenses of Lender incurred (including court costs and counsel’s fees and disbursements and fees and costs of paralegals) in attempting to realize,

 

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while a default or Event of Default exists, on any security or incurred in connection with the sale or disposition (or preparation for sale or disposition) of any security for the Loan.  Borrower agrees to pay all brokerage, finder or similar fees or commissions payable in connection with the transactions contemplated hereby and shall indemnify and hold Lender harmless against all claims, liabilities, costs and expenses (including attorneys’ fees and expenses) incurred in relation to any claim by broker, finder or similar person.  Lender shall have the right to obtain from time to time  title updates of such Project twice a year or upon an Event of Default.  Borrower shall cooperate with Lender in this regard and Borrower shall pay for the title updates.

 

7.2                               Origination Fee.

 

Borrower shall pay to Lender on or before the Closing Date an origination fee in an amount equal to twenty-five (25) basis points of the amount of the Loan. Such fee, once paid by Borrower to the Lender, shall be fully earned and non-refundable.  Notwithstanding the foregoing, in the event that the Loan is repaid prior to the Maturity Date through a capital markets or balance sheet refinance with, or a permanent loan with or arranged by, Lender or an Affiliate of Lender, such origination fee shall be returned to Borrower by Lender.

 

7.3                               Exit Fee.

 

Upon the full or partial repayment of the Loan (whether at the Maturity Date therefor or at any other date) other than as a result of any monthly payments of principal required pursuant to Section 4.5 hereof, Borrower will pay to Lender an exit fee equal to (x) twenty-five (25) basis points of the amount of the Loan if repayment is made through a capital markets refinance with a lender other than Lender and (y) fifty (50) basis points of the amount of the Loan if repayment is made through a balance sheet refinance other than Lender (such fee, the “Exit Fee”) unless (i) the Loan is repaid with a permanent loan from Lender or an Affiliate of Lender, (ii) the Loan is repaid with a permanent loan arranged by Lender or an Affiliate of Lender through another investor or lender (including, but not limited to, Fannie Mae, Freddie Mac, HUD or GinnieMae) or (iii) the Loan is repaid as a result of the sale of the Project to an unrelated third party.  The Exit Fee payable shall be deemed to be earned upon the full or partial repayment of the Loan unless one of the events set forth in subparts (i), (ii) or (iii) of this Section occurs.  Such Exit Fee shall also be payable in the event of the foreclosure of the Mortgage. In no event shall Lender or any Affiliate be obligated to make a permanent loan to Borrower to refinance the Project or place a permanent loan with a third party lender.

 

The obligation to repay the Exit Fee in respect of the Loan is provided for in this Section 7.3 shall survive the repayment of the Loan.

 

7.4                               Lender’s Attorneys’ Fees and Disbursements.

 

Borrower agrees to pay Lender’s attorney fees and disbursements incurred in connection with this Loan, including (i) the preparation of this Agreement, any intercreditor agreements and the other Loan Documents and the preparation of the closing binders, (ii) the disbursement, syndication, amendment, and administration of the Loan and (iii) the enforcement of the terms of this Agreement and the other Loan Documents.

 

7.5                               Time of Payment of Fees and Expenses.

 

Borrower shall pay all expenses and fees incurred as of the Closing Date for the Loan (unless sooner required herein).  At the time of the Closing Date, Lender may pay from the proceeds of the disbursement of the Loan all expenses of the Loan (unless sooner required herein).

 

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7.6                               Expenses and Advances Secured by Loan Documents.

 

Any and all advances or payments made by Lender under this Article 7 from time to time, and any amounts expended by Lender pursuant to Section 20.1(a), shall, as and when advanced or incurred, constitute additional indebtedness evidenced by the Note and secured by the Mortgage and the other Loan Documents.

 

7.7                               Right of Lender to Make Advances to Cure Borrower’s Defaults.

 

In the event that Borrower fails to perform any of Borrower’s covenants, agreements or obligations contained in this Agreement or any of the other Loan Documents (after the expiration of applicable grace periods, except in the event of an emergency or other exigent circumstances), Lender may (but shall not be required to) perform any of such covenants, agreements and obligations, and any amounts expended by Lender in so doing and shall constitute additional indebtedness evidenced by the Note and secured by the Mortgage and the other Loan Documents and shall bear interest at the Default Rate.

 

ARTICLE 8
  REQUIREMENTS PRECEDENT
 TO THE CLOSING OF THE LOAN

 

8.1                               Conditions Precedent.

 

Borrower agrees that Lender’s obligation to open the Loan and thereafter to make further disbursements of proceeds thereof is conditioned upon Borrower’s delivery, performance and satisfaction of the following conditions precedent in form and substance satisfactory to Lender in its reasonable discretion:

 

(a)                                 Equity:  Borrower shall have provided evidence reasonably satisfactory to Lender that Borrower’s cash equity invested in the Project is not less than the difference between the total Project cost and the maximum Loan Amount; provided, however, in no event shall Borrower’s cash equity in the Project be less than $22,000,000.00.

 

(b)                                 Commitment Fee: Borrower shall have paid to Lender the Commitment Fee as set forth in Section 7.2 herein.

 

(c)                                  Required Lease Forms.  Borrower shall have provided to Lender for Lender’s written approval, in Lender’s sole discretion, a copy of Borrower’s standard form of lease for residential tenants.

 

(d)                                 [Intentionally deleted]

 

(e)                                  Title and Other Documents:  Borrower shall have furnished to Lender the Title Policy together with legible copies of all title exception documents cited in the Title Policy and all other legal documents affecting the Project or the use thereof;

 

(f)                                   Survey:  Borrower shall have furnished to Lender an ALTA/ACSM “Class A” Land Title Survey of the Project.  Said survey shall be dated no earlier than ninety (90) days prior to the Closing Date, shall be made (and certified to have been made) as set forth in Exhibit D attached hereto and made a part hereof.  Such survey shall be sufficient to permit issuance of the Title Policy in the form required by this Agreement.  Such survey shall include the legal description of the Land;

 

(g)                                  Insurance Policies:  Borrower shall have furnished to Lender not less than ten (10) days prior to the date of this Agreement policies or binders evidencing that insurance coverages are in effect

 

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with respect to the Project and Borrower, in accordance with the Insurance Requirements attached hereto as Exhibit F, for which the premiums have been fully prepaid with endorsements satisfactory to Lender.

 

(h)                                 No Litigation:  Borrower shall have furnished evidence that no litigation or proceedings shall be pending or threatened which could or might cause a Material Adverse Change with respect to Borrower, any Guarantor or the Project;

 

(i)                                     Utilities:  [Intentionally deleted].

 

(j)                                    Attorney Opinions:  Borrower shall have furnished to Lender an opinion from counsel for Borrower and Guarantor covering due authorization, execution and delivery and enforceability of the Loan Documents and also containing such other legal opinions as Lender shall reasonably require;

 

(k)                                 Appraisal:  Prior to the Closing of the Loan, Lender shall have obtained (at Borrower’s cost) an Appraisal of the Project demonstrating a Loan To Value Ratio of not less than Seventy Percent (70%), which Appraisal shall be satisfactory to Lender in all respects;

 

(l)                                     Searches:  Borrower shall have furnished to Lender current bankruptcy, federal tax lien and judgment searches and searches of all Uniform Commercial Code financing statements filed in each place UCC Financing Statements are to be filed hereunder, demonstrating the absence of adverse claims;

 

(m)                             Financial Statements:  Borrower shall have furnished to Lender current annual financial statements of Borrower, the Guarantor and such other persons or entities connected with the Loan as Lender may request, each in form and substance and certified by such individual as acceptable to Lender.  Borrower and the Guarantor shall provide such other additional financial information Lender reasonably requires;

 

(n)                                 Pro Forma Projection:  Borrower shall have furnished to Lender a Pro Forma Projection covering the succeeding two (2) year period.

 

(o)                                 Management Agreements:  Borrower shall have delivered to Lender executed copies of any leasing, management and development agreements entered into by Borrower in connection with the operation of the Project;

 

(p)                                 Flood Hazard:  Lender has received evidence that the Project is not located in an area designated by the Secretary of Housing and Urban Development as a special flood hazard area, or flood hazard insurance acceptable to Lender in its sole discretion;

 

(q)                                 Zoning:  If the Title Policy does not include a zoning endorsement, Borrower shall have furnished to Lender a legal opinion, zoning letter or other satisfactory evidence as to compliance of the Project with zoning and similar laws;

 

(r)                                    Organizational Documents:  Borrower shall have furnished to Lender proof satisfactory to Lender of authority, formation, organization and good standing in the State of its incorporation or formation  and, if applicable, qualification as a foreign entity in good standing in the state of its incorporation or formation, of all corporate, partnership, trust and limited liability company entities (including Borrower and Guarantor) executing any Loan Documents, whether in their own name or on behalf of another entity.  Borrower shall also provide certified resolutions in form and content satisfactory to Lender, authorizing execution, delivery and performance of the Loan Documents, and such other documentation as Lender may reasonably require to evidence the authority of the persons executing the Loan Documents;

 

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(s)                                   No Default:  There shall be no uncured Default or Event of Default by Borrower hereunder.;

 

(t)                                    Easements:  Borrower shall have furnished Lender all easements reasonably required for the maintenance or operation of the Project and such easements shall be insured by the Title Policy; and

 

(u)                                 Additional Documents:  Borrower shall have furnished to Lender such other materials, documents, papers or requirements regarding the Project, Borrower and any Guarantor as Lender shall reasonably request.

 

(v)                                 Debt Service Coverage Ratio:  Lender shall have received evidence reasonable satisfactory to Lender that the pro forma Debt Service Coverage Ratio for the Project, set forth in the Pro Forma Projection, is a minimum of 1.20:1.

 

(w)                               Property Condition Report: Lender shall have received a property condition report for the Project, which report shall be satisfactory to Lender within it sole discretion.

 

ARTICLE 9
  [RESERVED]

 

ARTICLE 10
  [RESERVED]

 

ARTICLE 11

 

OTHER COVENANTS

 

11.1                        Borrower further covenants and agrees as follows:

 

(a)                                 Mechanics’ Liens and Contest Thereof.  Borrower will not suffer or permit any mechanics’ lien claims to be filed or otherwise asserted against the Project and will promptly discharge the same in case of the filing of any claims for lien or proceedings for the enforcement thereof, provided, however, that Borrower shall have the right to contest in good faith and with reasonable diligence the validity of any such lien or claim provided that Borrower posts a statutory lien bond which removes such lien from title to the Project within thirty (30) days of written notice by Lender to Borrower of the existence of the lien).

 

(b)                                 Settlement of Mechanics’ Lien Claims.  If Borrower shall fail promptly either (i) to discharge any such lien, or (ii) post a statutory lien bond in the manner provided in Section 15.1(e)  Lender may, at its election (but shall not be required to), procure the release and discharge of any such claim and any judgment or decree thereon and, further, may in its sole discretion effect any settlement or compromise of the same, or may furnish such security or indemnity to the Title Insurer, and any amounts so expended by Lender, including premiums paid or security furnished in connection with the issuance of any surety company bonds, shall be deemed to constitute disbursement of the proceeds of the Loan hereunder.  In settling, compromising or discharging any claims for lien, Lender shall not be required to inquire into the validity or amount of any such claim.

 

(c)                                  Renewal of Insurance.  Borrower shall cause insurance policies to be maintained in compliance with Exhibit F at all times, as applicable.  Borrower shall timely pay all premiums on all insurance policies required hereunder, and as and when additional insurance is required, from time to time, and as and when any policies of insurance may expire, furnish to Lender, premiums prepaid,

 

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additional and renewal insurance policies with companies, coverage and in amounts satisfactory to Lender in accordance with Section 8.1(g).

 

(d)                                 Payment of Taxes.  Borrower shall pay all real estate taxes and assessments and charges of every kind upon the Project before the same become delinquent, provided, however, that Borrower shall have the right to pay such tax under protest or to otherwise contest any such tax or assessment, but only if (i) such contest has the effect of preventing the collection of such taxes so contested and also of preventing the sale or forfeiture of the Project or any part thereof or any interest therein, (ii) Borrower has notified Lender of Borrower’s intent to contest such taxes, and (iii) Borrower has deposited security in form and amount satisfactory to Lender, in its sole discretion, and has increased the amount of such security so deposited promptly after Lender’s reasonable request therefor.  If Borrower fails to commence such contest or, having commenced to contest the same, and having deposited such security required by Lender for its full amount, shall thereafter fail to prosecute such contest in good faith or with due diligence, or, upon adverse conclusion of any such contest, shall fail to pay such tax, assessment or charge, Lender may, at its election (but shall not be required to), pay and discharge any such tax, assessment or charge, and any interest or penalty thereon, and any amounts so expended by Lender shall be deemed to constitute disbursements of the Loan proceeds hereunder (even if the total amount of disbursements would exceed the face amount of the Note).  Borrower shall furnish to Lender evidence that taxes are paid at least five (5) days prior to the last date for payment of such taxes and before imposition of any penalty or accrual of interest.

 

(e)                                  Tax and Insurance Escrow Accounts.  Upon request of Lender or upon an Event of Default, Borrower shall establish and maintain at all times until the obligations of Borrower under the Loan Documents have been satisfied an impound account (the “Impound Account”) with Lender for payment of taxes and insurance premiums on the Project and as additional security for the obligations of Borrower under the Loan Documents.  Borrower shall deposit in the Impound Account an amount reasonably determined by Lender to be sufficient (when added to the monthly deposits described herein) to pay the next due installment of real estate taxes and assessments on the Project at least one (1) month prior to the due date or the delinquency date thereof (as Lender shall determine) and the next due annual insurance premiums with respect to the Project at least one (1) month prior to the due date thereof. On January 10, 2011 and on each Payment Date thereafter, Borrower shall pay to Lender, concurrently with the payment due under the Note, deposits in an amount equal to one-twelfth (1/12) of the amount of the annual taxes that will next become due and payable on the Project (the “Monthly Tax Impound”), plus one-twelfth (1/12) of the amount of the annual insurance premiums that will next become due and payable on insurance policies which Borrower is required to maintain hereunder (the “Monthly Insurance Impound”), each as estimated and determined by Lender.  The Monthly Tax Impound and Monthly Insurance Impound, and the payments of interest or principal or both, payable pursuant to the Note, shall be added together and shall be paid as an aggregate sum by Borrower to Lender. If Lender at any time determines that the Monthly Tax Impound or Monthly Insurance Impound is insufficient, Lender may in its reasonable discretion adjust the required monthly payments of such amounts, and Borrower shall be obligated to pay the increased amounts for the Monthly Tax Impound or Monthly Insurance Impound commencing with the next Payment Date under the Note. So long as no Event of Default or Default has occurred and is continuing, all sums in the Impound Account shall be held by Lender in the Impound Account and used to pay taxes and insurance premiums on the Project before the same become delinquent. Borrower shall be responsible for ensuring the receipt by Lender, at least thirty (30) days prior to the respective due date or the delinquency date for payment thereof (as Lender shall determine), of all bills, invoices and statements for all taxes and insurance premiums on the Project to be paid from the Impound Account, and so long as no Event of Default has occurred and is continuing, Lender shall pay the governmental authority or other party entitled thereto directly to the extent funds are available for such purpose in the Impound Account. In making any payment from the Impound Account, Lender shall be entitled to rely on any bill, statement or estimate procured from the appropriate public office or

 

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insurance company or agent without any inquiry into the accuracy of such bill, statement or estimate and without any inquiry into the accuracy, validity, enforceability or contestability of any tax, assessment, valuation, sale, forfeiture, tax lien or title or claim thereof. Lender shall pay no interest on funds contained in the Impound Account to Borrower and any interest or other earnings on funds deposited in the Impound Account shall be solely for the account of Lender. If the total funds in the Impound Account shall exceed the amount of payments actually applied by Lender for the purposes of the Impound Account, such excess maybe credited by Lender on subsequent payments to the Impound Account to be made hereunder or, at the option of Lender, refunded to Borrower. In allocating such excess, Lender may deal with the person shown on the records of Lender to be the owner of the Project. If, however, the Impound Account shall not contain sufficient funds to pay the sums required when the same shall become due and payable, Borrower shall, within ten (10) Business Days after receipt of written notice thereof, deposit with Lender the full amount of any such deficiency. The Impound Account shall not constitute a trust fund and may be commingled with other monies held by Lender.  In the event Borrower does not comply with the foregoing terms, Borrower shall pay to the governmental authority or other party entitled thereto all real estate taxes and assessments and.

 

(f)                                   Personal Property.  All of Borrower’s personal property, fixtures, attachments and equipment delivered upon, attached to or used in connection with the operation of the Project shall always be located at the Project and shall be kept free and clear of all liens, encumbrances and security interests.

 

(g)                                  Leasing Restrictions.  Without the prior written consent of Lender, Borrower and Borrower’s agents shall not (i) enter into any additional non-residential Leases, (ii) modify, amend or terminate any non-residential Lease, or (iii) accept any rental payment in advance of its due date.  Borrower shall provide Lender with a copy of all non-residential Leases no less than ten (10) days prior to execution of such Leases.  Borrower shall provide Lender with a copy of the fully executed original of all non-residential Leases promptly following their execution.  Borrower will not enter into any residential Leases for a term of more than one year and all such residential Leases shall be on a form approved by Lender without material modification.  At Lender’s request, Borrower shall cause Tenants to execute Subordination, Non-Disturbance and Attornment Agreements reasonable satisfactory to Lender.  Lender reserves the right to subordinate the Mortgage to any Lease.

 

(h)                                 Defaults Under Leases.  Borrower will not suffer or permit any breach or default to occur in any of Borrower’s obligations under any of the Leases nor suffer or permit the same to terminate by reason of any failure of Borrower to meet any requirement of any Lease including those with respect to any time limitation within which any of Borrower’s work is to be done or the space is to be available for occupancy by the lessee.  Borrower shall notify Lender promptly in writing in the event a non-residential Tenant commits a material default under a Lease.

 

(i)                                     Lender’s Attorneys’ Fees for Enforcement of Agreement.  In case of any default or Event of Default hereunder, Borrower (in addition to Lender’s attorneys’ fees, if any, to be paid pursuant to Section 7.3) will pay Lender’s attorneys’ and paralegal fees (including, without limitation, any attorney and paralegal fees and costs incurred in connection with any litigation or bankruptcy or administrative hearing and any appeals therefrom and any post-judgment enforcement action including, without limitation, supplementary proceedings) in connection with the enforcement of this Agreement; without limiting the generality of the foregoing, if at any time or times hereafter Lender employs counsel (whether or not any suit has been or shall be filed and whether or not other legal proceedings have been or shall be instituted) for advice or other representation with respect to the Project, this Agreement, or any of the other Loan Documents, or to protect, collect, lease, sell, take possession of, or liquidate any of the Project, or to attempt to enforce any security interest or lien in any portion of the Project, or to enforce any rights of Lender or Borrower’s obligations hereunder, then in any of such events all of the attorneys’ fees arising

 

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from such services, and any expenses, costs and charges relating thereto (including fees and costs of paralegals), shall constitute an additional liability owing by Borrower to Lender, payable on demand.

 

(j)                                    Appraisals.  Lender shall have the right to obtain a new or updated Appraisal of the Project and Borrower shall cooperate with Lender in connection therewith, for the following reasons: (i) to comply with any applicable law or regulatory requirement or bank policy promulgated to comply therewith, (ii) if an Event of Default has occurred and is continuing.  Borrower shall pay for any such Appraisal upon Lender’s request.

 

(k)                                 Furnishing Information.  Borrower shall deliver or cause to be delivered to Lender within thirty (30) days after the end of each calendar quarter, (i) a rent roll for the Project and (ii) operating statements for the Project.  All such financial statements shall be in a format approved in writing by Lender in Lender’s reasonable sole discretion.  Each financial statement shall be certified as true, complete and correct by its preparer and by Borrower.  Borrower shall during regular business hours permit Lender or any of its agents or representatives to have access to and examine all of its books and records regarding the development and operation of the Project..

 

(l)                                     Sign and Publicity.  [Intentionally omitted].

 

(m)                             Lost Note.  Upon Lender’s furnishing to Borrower an affidavit to such effect, Borrower shall, if the Note is mutilated, destroyed, lost or stolen, deliver to Lender, in substitution therefor, a new note containing the same terms and conditions as the Note.

 

(n)                                 Indemnification.  Borrower shall indemnify Lender, including each party owning an interest in the Loan and their respective officers, directors, employees and consultants (each, an “Indemnified Party”) and defend and hold each Indemnified Party harmless from and against all claims, injury, damage, loss and liability, cost and expense (including attorneys’ fees, costs and expenses) of any and every kind to any persons or property by reason of (i) the operation or maintenance of the Project; (ii) any breach of representation or warranty, default or Event of Default under this Agreement or any other Loan Document or Related Document; or (iii) any other matter arising in connection with the Loan, Borrower, Guarantor or the Project.  No Indemnified Party shall be entitled to be indemnified against its own gross negligence or willful misconduct.  The foregoing indemnification shall survive repayment of the Loan and shall continue to benefit Lender following any assignment of the Loan with respect to matters arising or accruing prior to such assignment.

 

(o)                                 No Additional Debt.  Except for the Loan, Borrower shall neither incur nor guarantee any indebtedness (whether personal or nonrecourse, secured or unsecured) other than customary trade payables paid within sixty (60) days after they are incurred.

 

(p)                                 Compliance With Laws.  Borrower shall comply with all applicable requirements (including applicable Laws) of any Governmental Authority having jurisdiction over Borrower or the Project.

 

(q)                                 Organizational Documents.  Borrower shall not, without the prior written consent of Lender, permit or suffer (i) a material amendment or modification of its organizational documents, (ii) the admission of any new member, partner or shareholder, or (iii) any dissolution or termination of its existence.

 

(r)                                    Furnishing Reports.  Upon Lender’s request, Borrower shall provide Lender with copies of all inspections, reports, test results and other information received by any Borrower, which in any way relate to the Project or any part thereof.

 

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(s)                                   Management Contracts.  Borrower shall not enter into, materially modify or amend, terminate or cancel any management contracts for the Project, without the prior written approval of Lender.

 

(t)                                    Furnishing Notices.  Borrower shall provide Lender with copies of all material notices pertaining to the Project received by Borrower from any Governmental Authority or insurance company within seven (7) days after such notice is received.

 

(u)                                 Alterations.  Without the prior written consent of Lender, Borrower shall not make any material alterations to the Project.

 

(v)                                 Cash Distributions.  Borrower shall not make any distributions to partners, members or shareholders, provided that Borrower may so distribute Monthly Excess Cash Flow not needed to pay Operating Expenses or amount payable under the Loan Documents.

 

(w)                               Tenant Estoppels and Subordination Non-Disturbance and Attornment Agreements.  Within thirty (30) days after the date hereof, Borrower shall use commercially reasonable efforts to provide to Lender, in form and substance satisfactory to Lender within its reasonable discretion, (x) tenant estoppel certificates from the following non-residential tenants of the Project: (i) STC Six Company (“STC”), (ii) Andtower LLC (“Andtower”) and (iii) Sprint Spectrum L.P. and (y) subordination, non-disturbance and attornment agreements from STC and Andtower.  In the event that Borrower is unable to deliver any estoppel or subordination, non-disturbance and attornment agreement as set forth in this subsection (w), Borrower must provide to Lender evidence of its commercially reasonable efforts to obtain same, which evidence shall be satisfactory to Lender within its sole discretion.

 

11.2                        Authorized Representative.

 

Borrower hereby appoints Harold Brown as its Authorized Representative for purposes of dealing with Lender on behalf of Borrower in respect of any and all matters in connection with this Agreement, the other Loan Documents, and the Loan.  The Authorized Representative shall have the power, in his discretion, to give and receive all notices, monies, approvals, and other documents and instruments, and to take any other action on behalf of Borrower.  All actions by the Authorized Representative shall be final and binding on Borrower.  Lender may rely on the authority given to the Authorized Representative until actual receipt by Lender of a duly authorized resolution substituting a different person as the Authorized Representative.  No more than one person shall serve as Authorized Representative at any given time.

 

ARTICLE 12

 

CASUALTIES AND CONDEMNATION

 

12.1                        Lender’s Election to Apply Proceeds on Indebtedness.

 

(a)                                 Subject to the provisions of Section 16.1(b) below, Lender may elect to collect, retain and apply upon the indebtedness of Borrower under this Agreement or any of the other Loan Documents all proceeds of insurance or condemnation (individually and collectively referred to as “Proceeds”) after deduction of all expenses of collection and settlement, including attorneys’ and adjusters’ fees and charges.  Any proceeds remaining after repayment of the indebtedness under the Loan Documents shall be paid by Lender to Borrower.

 

(b)                                 Notwithstanding anything in Section 16.1(a) to the contrary, in the event of any casualty to the Improvements or any condemnation of part of the Project, Lender agrees to make available the Proceeds to restoration of the Improvements if (i) no Event of Default has occurred which remains

 

21

 

outstanding, (ii) all Proceeds are deposited with Lender, (iii) in Lender’s reasonable judgment, the amount of Proceeds available for restoration of the Improvements is sufficient to pay the full and complete costs of such restoration, (iv) no material non-residential Leases in effect at the time of such casualty or condemnation are or will be terminated, (v) if the cost of restoration exceeds ten percent (10%) of the Loan Amount, in Lender’s sole determination after completion of  restoration the Loan Amount will not exceed 70% of the fair market value of the Project, (vi) in Lender’s reasonable determination, the Project can be restored to an architecturally and economically viable project in compliance with applicable Laws, (vii) Guarantor reaffirms the Limited Recourse Guaranty Agreement in writing, and (viii) in Lender’s reasonable determination, such restoration is likely to be completed no later than three  months prior to the Maturity Date.

 

12.2                        Borrower’s Obligation to Rebuild and Use of Proceeds Therefor.

 

In case Lender does not elect to apply or does not have the right to apply the Proceeds to the indebtedness, as provided in Section 16.1 above, Borrower shall:

 

(a)                                 Proceed with diligence to make settlement with insurers or the appropriate Governmental Authorities and cause the Proceeds to be deposited with Lender;

 

(b)                                 In the event of any delay in making settlement with insurers or the appropriate Governmental Authorities or effecting collection of the Proceeds, deposit with Lender the full amount required to complete construction as aforesaid;

 

(c)                                  In the event the Proceeds and the available proceeds of the Loan are insufficient to assure the Lender that the Loan will be In Balance, promptly deposit with Lender any amount necessary to place the Loan In Balance; and

 

(d)                                 Promptly proceed with the assumption of construction of the Improvements, including the repair of all damage resulting from such fire, condemnation or other cause and restoration to its former condition.

 

Any request by Borrower for a disbursement by Lender of Proceeds and funds deposited by Borrower shall be treated by Lender as if such request were for an advance of the Loan hereunder, and the disbursement thereof shall be conditioned upon Borrower’s compliance with and satisfaction of the same conditions precedent as would be applicable under this Agreement for an advance of the Loan.

 

ARTICLE 13
  ASSIGNMENTS BY LENDER AND BORROWER

 

13.1                        Assignments and Participations.

 

Lender may from time to time sell the Loan and the Loan Documents (or any interest therein) and may grant participations in the Loan.  Borrower agrees to cooperate with Lender’s efforts to do any of the foregoing and to execute all documents reasonably required by Lender in connection therewith which do not materially adversely affect Borrower’s rights under the Loan Documents.

 

13.2                        Prohibition of Assignments and Transfers by Borrower.

 

Borrower shall not assign or attempt to assign its rights under this Agreement and any purported assignment shall be void.  Without the prior written consent of Lender, in Lender’s sole discretion,

 

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Borrower shall not suffer or permit (a) any change in the management (whether direct or indirect) of the Project or of Borrower, or (b) any Transfer.  Notwithstanding anything in this Agreement to the contrary, Borrower shall be permitted to Transfer (such Transfer, a “Permitted Transfer”), without the prior written consent of Lender (but Borrower shall provide Lender with written notice of such Transfer prior to such Transfer), direct or indirect ownership interests of any Borrower provided such Transfers do not result in a change in Control.  In connection with any proposed Permitted Transfer, Borrower shall provide Lender with any and all information as Lender shall reasonably require with respect to such Transfer, including, without limitation, any information necessary for Lender to complete Lender’s Patriot Act Customer Identification Process and OFAC Review Process prior to such Permitted Transfer.  In no event shall any Transfer be permitted unless all parties in connection with any proposed Transfer successfully complete Lender’s Patriot Act Customer Identification Process.

 

13.3                        Prohibition of Transfers in Violation of ERISA.

 

In addition to the prohibitions set forth in Section 13.2 above, Borrower shall not assign, sell, pledge, encumber, transfer, hypothecate or otherwise dispose of its interest or rights in this Agreement or in the Project, or attempt to do any of the foregoing or suffer any of the foregoing, nor shall any party owning a direct or indirect interest in Borrower assign, sell, pledge, mortgage, encumber, transfer, hypothecate or otherwise dispose of any of its rights or interest (direct or indirect) in Borrower, attempt to do any of the foregoing or suffer any of the foregoing, if such action would cause the Loan, or the exercise of any of Lender’s rights in connection therewith, to constitute a prohibited transaction under ERISA or the Internal Revenue Code or otherwise result in Lender being deemed in violation of any applicable provision of ERISA.  Borrower agrees to indemnify and hold Lender free and harmless from and against all losses, costs (including attorneys’ fees and expenses), taxes, damages (including consequential damages) and expenses Lender may suffer by reason of the investigation, defense and settlement of claims and in obtaining any prohibited transaction exemption under ERISA necessary or desirable in Lender’s sole judgment or by reason of a breach of the foregoing prohibitions.  The foregoing indemnification shall be a recourse obligation of Borrower and shall survive repayment of the Note, notwithstanding any limitations on recourse contained herein or in any of the Loan Documents.

 

13.4                        Successors and Assigns.

 

Subject to the foregoing restrictions on transfer and assignment contained in this Article 17, this Agreement shall inure to the benefit of and shall be binding on the parties hereto and their respective successors and permitted assigns.

 

ARTICLE 14
  TIME OF THE ESSENCE

 

14.1                        Time is of the Essence.   Borrower agrees that time is of the essence under this Agreement.

 

ARTICLE 15
  EVENTS OF DEFAULT

 

The occurrence of any one or more of the following shall constitute an “Event of Default” as said term is used herein:

 

(a)                                 Failure of Borrower (i) (A) to make any principal payment when due, (B) to pay any interest within five (5) days after the date when due or (C) to observe or perform any of the other covenants or conditions by Borrower to be performed under the terms of this Agreement or any other

 

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Loan Document concerning the payment of money, for a period of ten (10) days after written notice from Lender that the same is due and payable; or (ii) for a period of thirty (30) days after written notice from Lender, to observe or perform any non-monetary covenant or condition contained in this Agreement or any other Loan Documents; provided that if any such failure concerning a non-monetary covenant or condition is susceptible to cure and cannot reasonably be cured within said thirty (30) day period, then Borrower shall have an additional sixty (60) day period to cure such failure and no Event of Default shall be deemed to exist hereunder so long as (Y) Borrower commences such cure within the initial thirty (30) day period and diligently and in good faith pursues such cure to completion within such resulting ninety (90) day period from the date of Lender’s notice, and (Z) the existence of such default will not result in any non-residential Tenant having the right to terminate its Lease due to such default; and provided further that if a different notice or grace period is specified under any other subsection of this Section 19.1 with respect to a particular breach, or if another subsection of this Section 19.1 applies to a particular breach and does not expressly provide for a notice or grace period the specific provision shall control.

 

(b)                                 [Intentionally omitted].

 

(c)                                  [Intentionally omitted].

 

(d)                                 [Intentionally omitted].

 

(e)                                  Any Transfer or other event in violation of Sections 13.2 or 13.3.

 

(f)                                   Any material default by Borrower, as lessor, under the terms of any non-residential Lease following the expiration of any applicable notice and cure period, provided that if the Lease does not provide a notice and cure period, then the notice and cure period provided in (a)(i) above will apply to any such monetary default, and the notice and cure period provided in (a)(ii) will apply to any such non-monetary default (which respective periods shall commence upon written notice of default from Lender or the applicable Tenant, whichever occurs first).

 

(g)                                  If any material warranty, representation, statement, report or certificate made now or hereafter by Borrower or any Guarantor is untrue or incorrect at the time made or delivered, provided that if such breach is reasonably susceptible of cure, then no Event of Default shall exist so long as Borrower cures said breach (i) within the notice and cure period provided in (a)(i) above for a breach that can be cured by the payment of money or (ii) within the notice and cure period provided in (a)(ii) above for any other breach.

 

(h)                                 Borrower or any Guarantor shall commence a voluntary case concerning Borrower or such Guarantor under the Bankruptcy Code; or an involuntary proceeding is commenced against Borrower or any Guarantor under the Bankruptcy Code and relief is ordered against Borrower or such Guarantor, or the petition is controverted but not dismissed or stayed within sixty (60) days after the commencement of the case, or a custodian (as defined in the Bankruptcy Code) is appointed for or takes charge of all or substantially all of the property of Borrower or any Guarantor; or the Borrower or any Guarantor commences any other proceedings under any reorganization, arrangement, readjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar Law of any jurisdiction whether now or hereafter in effect relating to the Borrower or any Guarantor; or there is commenced against Borrower or any Guarantor any such proceeding which remains undismissed or unstayed for a period of sixty (60) days; or the Borrower or any Guarantor fails to controvert in a timely manner any such case under the Bankruptcy Code or any such proceeding, or any order of relief or other order approving any such case or proceeding is entered; or the Borrower or any Guarantor by any act or failure to act indicates its consent to, approval of, or acquiescence in any such case or proceeding or the appointment of any custodian or the like of or for it for any substantial part of its property or suffers any such appointment to continue undischarged or unstayed for a period of sixty (60) days.

 

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(i)                                     Borrower or any Guarantor shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver or trustee or liquidator of all of its property or the major part thereof or if all or a substantial part of the assets of Borrower or any Guarantor are attached, seized, subjected to a writ or distress warrant, or are levied upon, or come into the possession of any receiver, trustee, custodian or assignee for the benefit of creditors.

 

(j)                                    If Borrower is enjoined, restrained or in any way prevented by any court order from constructing or operating the Project.

 

(k)                                 [Intentionally omitted]

 

(l)                                 One or more final, unappealable judgments are entered (i) against Borrower in amounts aggregating in excess of $100,000 or (ii) against any Guarantor in amounts aggregating in excess of $500,000, and said judgments are not stayed or bonded over within thirty (30) days after entry.

 

(m)                             If Borrower or any Guarantor shall fail to pay any debt owed by it or is in default under any agreement with Lender or any other party (other than a failure or default for which Borrower’s maximum liability does not exceed $100,000 and Guarantor’s maximum liability does not exceed $500,000) and such failure or default continues after any applicable grace period specified in the instrument or agreement relating thereto.

 

(n)                                 If a Material Adverse Change occurs with respect to Borrower, the Project or Guarantor.

 

(o)                                 The occurrence of any other event or circumstance denominated as an Event of Default in this Agreement or under any of the other Loan Documents and the expiration of any applicable grace or cure periods, if any, specified for such Event of Default herein or therein, as the case may be.

 

ARTICLE 16
  LENDER’S REMEDIES IN EVENT OF DEFAULT

 

16.1                        Remedies Conferred Upon Lender.

 

Upon the occurrence and during the continuance of any Event of Default, Lender may pursue any one or more of the following remedies concurrently or successively, it being the intent hereof that none of such remedies shall be to the exclusion of any other:

 

(a)                                 Take possession of the Project and do anything which is necessary or appropriate in its sole judgment to fulfill the obligations of Borrower under this Agreement and the other Loan Documents, including either the right to avail itself of and procure performance of existing contracts or let any contracts with the same contractors or others.  Without restricting the generality of the foregoing and for the purposes aforesaid, Borrower hereby appoints and constitutes Lender its lawful attorney-in-fact with full power of substitution in the Project to use unadvanced funds remaining under the Note or which may be reserved, escrowed or set aside for any purposes hereunder at any time, or to advance funds in excess of the face amount of the Note, to execute all applications and certificates in the name of Borrower prosecute and defend all actions or proceedings in connection with the Improvements or Project; and in connection therewith, to execute instruments of release and satisfaction; and to do any and every act which the Borrower might do in its own behalf; it being understood and agreed that this power of attorney shall be a power coupled with an interest and cannot be revoked;

 

(b)                                 Withhold further disbursement of the proceeds of the Loan and/or terminate Lender’s obligations to make further disbursements hereunder;

 

25

 

(c)                                  Declare the Note to be immediately due and payable;

 

(d)                                 Use and apply any monies or letters of credit deposited by Borrower with Lender, regardless of the purposes for which the same was deposited, to cure any such default or to apply on account of any indebtedness under this Agreement which is due and owing to Lender; and

 

(e)                                  Exercise or pursue any other remedy or cause of action permitted under this Agreement or any other Loan Documents, or conferred upon Lender by operation of Law.

 

Notwithstanding the foregoing, upon the occurrence of any Event of Default under Section 19.1(h) with respect to Borrower, all amounts evidenced by the Note shall automatically become due and payable, without any presentment, demand, protest or notice of any kind to Borrower.

 

ARTICLE 17
  GENERAL PROVISIONS

 

17.1                        Captions.

 

The captions and headings of various Articles, Sections and subsections of this Agreement and Exhibits pertaining hereto are for convenience only and are not to be considered as defining or limiting in any way the scope or intent of the provisions hereof.

 

17.2                        Modification; Waiver.

 

No modification, waiver, amendment or discharge of this Agreement or any other Loan Document shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment or discharge is sought.

 

17.3                        Governing Law.

 

Irrespective of the place of execution and/or delivery, this Agreement shall be governed by, and shall be construed in accordance with, the laws of the Commonwealth of Massachusetts.

 

17.4                        Acquiescence Not to Constitute Waiver of Lender’s Requirements.

 

Each and every covenant and condition for the benefit of Lender contained in this Agreement may be waived by Lender, provided, however, that to the extent that Lender may have acquiesced in any noncompliance with any conditions precedent to the Closing of the Loan, such acquiescence shall not be deemed to constitute a waiver by Lender of such requirements with respect to any future disbursements of Loan proceeds.

 

17.5                        Disclaimer by Lender.

 

The Loan Documents are made for the sole benefit of Borrower and Lender, and no other person or persons shall have any benefits, rights or remedies under or by reason of the Loan Documents, or by reason of any actions taken by Lender pursuant to the Loan Documents.   Lender shall not be liable for any debts or claims accruing in favor of any such parties against Borrower or others or against the Project.  Lender, by making the Loan or taking any action pursuant to any of the Loan Documents, shall not be deemed a partner or a joint venturer with Borrower or fiduciary of Borrower.  No payment of funds

 

26

 

directly to a contractor or subcontractor or provider of services be deemed to create any third-party beneficiary status or recognition of same by the Lender.

 

17.6                        Partial Invalidity; Severability.

 

If any of the provisions of this Agreement, or the application thereof to any person, party or circumstances, shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such provision or provisions to persons, parties or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and every provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

17.7                        Definitions Include Amendments.

 

Definitions contained in this Agreement which identify documents, including, but not limited to, the Loan Documents, shall be deemed to include all amendments and supplements to such documents from the date hereof, and all future amendments, modifications, and supplements thereto entered into from time to time to satisfy the requirements of this Agreement or otherwise with the consent of Lender.  Reference to this Agreement contained in any of the foregoing documents shall be deemed to include all amendments and supplements to this Agreement.

 

17.8                        Execution in Counterparts.

 

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

17.9                        Entire Agreement.

 

This Agreement, taken together with all of the other Loan Documents and all certificates and other documents delivered by Borrower to Lender, embody the entire agreement and supersede all prior agreements, written or oral, relating to the subject matter hereof.

 

17.10                 Waiver of Damages.

 

In no event shall Lender be liable to Borrower for punitive, exemplary or consequential damages, including, without limitation, lost profits, whatever the nature of a breach by Lender of its obligations under this Agreement or any of the Loan Documents, and Borrower for itself and its Guarantor waive all claims for punitive, exemplary or consequential damages.

 

17.11                 Claims Against Lender.

 

Lender shall not be in default under this Agreement, or under any other Loan Documents, unless a written notice specifically setting forth the claim of Borrower shall have been given to Lender within three (3) months after Borrower first had knowledge of the occurrence of the event which Borrower alleges gave rise to such claim and Lender does not remedy or cure the default, if any there be, promptly thereafter.  Borrower waives any claim, set-off or defense against Lender arising by reason of any alleged default by Lender as to which Borrower does not give such notice timely as aforesaid.  Borrower acknowledges that such waiver is or may be essential to Lender’s ability to enforce its remedies without delay and that such waiver therefore constitutes a substantial part of the bargain between Lender and Borrower with regard to the Loan.  No Guarantor or Tenant is intended to have any rights as a third-party beneficiary of the provisions of this Section 21.11.

 

27

 

17.12                 Jurisdiction.

 

TO THE GREATEST EXTENT PERMITTED BY LAW, BORROWER HEREBY WAIVES ANY AND ALL RIGHTS TO REQUIRE MARSHALLING OF ASSETS BY LENDER.  WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS RELATING TO THIS AGREEMENT (EACH, A “PROCEEDING”), BORROWER IRREVOCABLY (A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS HAVING JURISDICTION IN THE CITY OF BOSTON, COUNTY OF SUFFOLK AND COMMONWEALTH OF MASSACHUSETTS AND (B) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY.  NOTHING IN THIS AGREEMENT SHALL PRECLUDE LENDER FROM BRINGING A PROCEEDING IN ANY OTHER JURISDICTION NOR WILL THE BRINGING OF A PROCEEDING IN ANY ONE OR MORE JURISDICTIONS PRECLUDE THE BRINGING OF A PROCEEDING IN ANY OTHER JURISDICTION.  BORROWER FURTHER AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY PROCEEDING IN ANY MASSACHUSETTS STATE OR UNITED STATES COURT SITTING IN THE CITY OF BOSTON AND COUNTY OF SUFFOLK MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO BORROWER AT THE ADDRESS INDICATED BELOW, AND SERVICE SO MADE SHALL BE COMPLETE UPON RECEIPT; EXCEPT THAT IF BORROWER SHALL REFUSE TO ACCEPT DELIVERY, SERVICE SHALL BE DEEMED COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.

 

17.13                 Set-Offs.

 

After the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably authorizes and directs Lender from time to time to charge Borrower’s accounts and deposits with Lender (or its Affiliates), and to pay over to Lender an amount equal to any amounts from time to time due and payable to Lender hereunder, under the Note or under any other Loan Document.  Borrower hereby grants to Lender a security interest in and to all such accounts and deposits maintained by the Borrower with Lender (or its Affiliates).

 

ARTICLE 18
  NOTICES

 

Any notice, demand, request or other communication which any party hereto may be required or may desire to give hereunder shall be in writing and shall be deemed to have been properly given (a) if hand delivered, when delivered; (b) if mailed by United States Certified Mail (postage prepaid, return receipt requested), three Business Days after mailing (c) if by Federal Express or other reliable overnight courier service, on the next Business Day after delivered to such courier service or (d) if by telecopier on the day of transmission so long as copy is sent on the same day by overnight courier as set forth below:

 

If to Borrower:

 

c/o The Hamilton Company

39 Brighton Avenue

Boston, Massachusetts 02134

 

28

 

Attention:                                         Carl Valeri

Telephone                                       617-783-0039

Facsimile                                             617-783-0568

 

With a copy to:

 

Saul Ewing LLP

131 Dartmouth Street, Suite 501

Boston, MA 02116

Attention:                                         Sally E. Michael, Esq.

Telephone:                                   617.912.0920

Facsimile:                                         617.723.4151

 

If to Lender:

 

KeyBank National Association

66 South Pearl Street

Albany, New York 12207

Attention:                                         Servicing Manager

Telephone                                       518.257.8571

Facsimile                                             518-257-8572

 

With a copy to:

 

KeyBank National Association

225 Franklin Street, 18th Floor

Boston, Massachusetts 02110

Attention:                                         Matthew Purtell

Telephone                                       617.385.6248

Facsimile:                                         617.385.6291

 

And a copy to:

 

Thompson Hine LLP

335 Madison Avenue

New York, New York 10017

Attention:                                         Karen M. Kozlowski, Esq.

Telephone                                       212 908 3937

Facsimile                                             212 344 6101

 

or at such other address as the party to be served with notice may have furnished in writing to the party seeking or desiring to serve notice as a place for the service of notice.

 

ARTICLE 19
  WAIVER OF JURY TRIAL

 

BORROWER AND LENDER EACH WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS OR RELATING THERETO OR ARISING

 

29

 

FROM THE LENDING RELATIONSHIP WHICH IS THE SUBJECT OF THIS AGREEMENT AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

EXECUTED as of the date first set forth above.

 

30

 

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day and year first above written.

 

BORROWER:

 

	
 
    	
HAMILTON   GREEN APARTMENTS, LLC,
    
	
 
    	
a   Massachusetts limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
New   Real, Inc.,
    
	
 
    	
 
    	
a   Massachusetts corporation
    
	
 
    	
 
    	
its   Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Its:   President
    
	
 
    	
 
    	
Print   Name: Ronald Brown
    
	
 
    	
 
    	
Borrower’s   Tax ID No.
    

 

[Borrower signature page.  Lender signature page follows.]

 

31

 

IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day and year first above written.

 

	
LENDER:
    	
KEYBANK   NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
 
    
	
 
    	
Name:   
    	
 
    
	
 
    	
Title:   
    	
 
    

 

32

 

EXHIBIT A

 

Legal Description of Land

 

 

EXHIBIT B

 

Permitted Exceptions

 

1.                                      Liens for taxes and municipal charges which become due and payable subsequent to the date of said policy. Taxes have been paid through June 30, 2013.

 

2.                                      Title to and rights of the public and others entitled thereto in and to those portions of the insured premises lying within the bounds of the adjoining streets and ways.

 

3.                                      Title to and rights of the public and others entitled thereto in and to those portions of the insured premises lying within the bounds of Lowell Street and the adjoining streets and ways. .

 

4.                                      Terms and provisions of a lease by and between Windsor Green at Andover LLC, as Lessor, and STC Six Company, as Lessee, dated March 25, 2010, Notice of which is dated December 11, 2009 and recorded in Book 12082, Page 238, as affected by a Lease Subordination, Non-Disturbance and Attornment Agreement by and among Massachusetts Housing Partnership Fund Board, as Lender, Windsor Green at Andover LLC, as Landlord, and STC Six Company, as Tenant, dated March 23, 2010 and recorded in Book 12082, Page 250, as affected by Memorandum of Lease Supplement by and between STC Six Company and Bell Atlantic Mobile of Massachusetts Corporation Ltd., dated October 27, 2010 and recorded in Book 12293, Page 93, as affected by Notice of Lease by and between STC Six Company and New Cingular Wireless PCS, LLC dated October 29, 2010 and recorded in Book 12380, Page 134, as affected by Notice of Site License Acknowledgement recorded in Book 11518, Page 144.

 

5.                                      Notice of Decision of the Town of Andover Zoning Board of Appeals dated March 3, 2011 and recorded in Book 12467, Page 239.

 

6.                                      Taking by the Commonwealth of Massachusetts Department of Public Works for the relocation of Lowell Street and for access easement on Parcel 11-R-1 shown on Plan No. 6129 by Order dated November 26, 1969, and recorded in Book 1145, Page 150, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

7.                                      Taking by the Commonwealth of Massachusetts Department of Public Works of an easement related to Parcel 11-RS-1 Easement to construct slopes of excavation and/or embankment in Parcel 11-RS-1 shown on Plan No. 6212 by Order dated May 27, 1970, and recorded in Book 1153, Page 684, as affected by Amendment to Access Easement Agreement dated April 28, 2005 and recorded in Book 9483, Page 41, as shown on the Survey entitled “ALTA/ACSM Land Title Survey”, in Andover, Mass., by Hayes Engineering, dated September 27, 2007, (“the Survey”)

 

8.                                      Rights and easement granted in Reciprocal Easement Agreement between Andover Real Estate Corporation and Rolling Green Motor Inn Corporation dated September 22, 1982, and recorded in Book 1617, Page 187, as affected by Easement Relocation Agreement dated April 28, 2005 and recorded in Book 9483, Page 73, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

9.                                      Easement from Dauphin Corporation to Harry Axelrod dated July 15, 1985, and recorded in Book 2005, Page 128, with respect to “Right of Way Easement 66’ Wide” shown on a plan entitled

 

 

“Plan of Land in Andover, Mass., owned by Rolling Green Motor Inn Corp.” dated May 29, 1985 and recorded as Plan No. 9957 as affected by Declaration and Grant of Easements between Harry Axelrod and Lowell Street Associates Limited Partnership dated May 22, 1991 recorded with the Registry in Book 3274, Page 96, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

10.                               Rights and easement granted in Easement Agreement between Inncorp Development Limited Partnership and David Bruce Maddox, Trustee of Powers Realty Trust, dated September 30, 1988, and recorded in Book 2820, Page 81, as amended by the Amendment to Access Easement Agreements recorded in Book 9483, Page 41, as affected by Confirmation Regarding Easement Agreement, dated May 8, 2007, recorded in Book 10750, Page 111, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

11.                               Rights granted in a Lease dated June 19, 1999, with Sprint Spectrum LP., as Tenant, Notice of which is recorded in Book 5691, Page 307, as affected by Notice of Lease dated April 28, 2005 and recorded in Book 9483, Page 59.

 

12.                               Amendment to Notice of Lease dated April 28, 2005 and recorded in Book 9483, Page 132, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

13.                               Rights and easement granted in Easement to New England Telephone and Telegraph Company dated February 22, 2000, and recorded in Book 5691, Page 313, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

14.                               Rights and easement granted in Easement to Massachusetts Electric Company dated March 21, 2000, and recorded in Book 5708, Page 29, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

15.                               Terms and provisions of Declaration and Grant of Easement, Rights and Restrictions dated June 17, 2003 and recorded with the Registry in Book 7920, Page 113, as amended by Restatement of Declaration and Grant of Easements, Rights and Restrictions dated April 28, 2005 and recorded in Book 9483, Page 11, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

16.                               Grant of Utility Easement and Easement Agreement between Criterion Andover Apartments, L.P. and Yvon Cormier and Denise Enxing, Trustees of CA Investment Trust dated April 28, 2005 and recorded in Book 9483, Page 95, as shown on the Survey. (AFFECTS 311 LOWELL STREET ONLY)

 

17.                               Grant of Easement between Comcast of Massachusetts I, Inc. and Criterion Apartments, LP, dated September 24, 2006, recorded in Book 10382, Page 207.

 

18.                               Easement to Verizon New England Inc., dated March 22, 2006, recorded in Book 10097, Page 46.

 

19.                              Easement to Massachusetts Electric Company, dated September 27, 2005, recorded in Book 9842, Page 154.

 

20.                               Survey entitled “ALTA/ACSM Land Title Survey in Andover, Mass.”, prepared by Hayes Engineering, dated April 8, 2013 discloses the following matters:

 

ii

 

a.                                      electric, drain, sewer gas and water lines, drain manholes, catch basins, water gate, manholes, light poles, overhead wires, transformer pads, fire connection, underground detention systems;

 

b.                                      Gravel path shown at Northeast corner of Parcel 1 appears to run on and off insured premises and abutter’s premises.

 

21.                               Terms and provision of Chapter 40B Regulatory and Affordable Housing Agreement for Limited Dividend Organizations, between Criterion Andover Apartments LP and Massachusetts Housing Partnership Fund Board, dated February 15, 2008, recorded in Book 11067, Page 28.

 

22.                               Notice of Variance by the Andover Board of Appeals granted to Sprint Spectrum L.P., recorded in Book 5647, Page 199 (Decision No. 2956).

 

23.                               Order of Conditions from the Andover Conservation Commission (DEP File No. 090-0853) issued October 22, 2003 and recorded on January 14, 2005 in Book 9304, Page 216, as affected by a Certificate of Compliance, recorded in Book 10737, Page 79.

 

24.                               Notice of Variance by the Andover Board of Appeals granted to Rolling Green Motor Inn Corp. recorded in Book 1910, Page 234 (Decision No. 1699).

 

25.                               Decision for Comprehensive Permit by the Andover Board of Appeals recorded in Book 8447, Page 238, as affected by Certification of No Appeal recorded in Book 8447, Page 248, as affected by Decision Consenting to Proposed Transfer of Comprehensive Permit Decision No. 3312, Decision No. 3449, dated August 16, 2004 and recorded in Book 9082, Page 177; as affected by Finding of Insubstantial Change dated February 15, 2005 and recorded in Book 9417, Page 39; as affected by Decision to Extend and Determination of Insubstantial Changes, Decision No. 3451, dated August 16, 2004 and recorded in Book 9474, Page 141; as affected by Stipulation of Dismissal with Prejudice recorded in Book 9483, Page 1, as affected by Finding of Insubstantial Change by Town of Andover, (Comprehensive Permit #3312), issued to AND Development, LLC, dated April 25, 2005, recorded in Book 9554, Page 98. Also see Decision in Book 9696, Page 75, as affected by Decision of the Zoning Board of Appeals, Town of Andover, recorded in Book 10832, Page 31.

 

26.                               Notice of Decision by the Andover Zoning Board of Appeals granted to Altiostar Networks, Inc., recorded in Book 13434, Page 307 (Decision No. 4022).

 

27.                               Notice of Decision by the Zoning Board of Appeals of the Town of Andover recorded in Book 11995

 

iii

 

EXHIBIT C

 

Title Requirements

 

1.                                      Title Insurance Company Requirements. The maximum single risk (i.e., the amount insured under any one policy) by a title insurer may not exceed 25% of that insurer’s surplus and statutory reserves.  Reinsurance must be obtained by closing for any policy exceeding such amount.

 

2.                                      Loan Policy Forms. Standard 1992 or 2006 American Land Title Association (“ALTA”) form of loan title insurance policy, or the 1970 (amended October 17, 1970) ALTA loan form policies must be used.

 

3.                                      Insurance Amount. The amount insured must equal at least the original principal amount of the Loan.

 

4.                                      Named Insured. The named insured under the Title Policy must be substantially the same as the following: “KeyBank National Association, and its respective successors and assigns.”

 

5.                                      Creditors’ Rights. Any “creditors’ rights” exception or other exclusion from coverage for voidable transactions under bankruptcy, fraudulent conveyance, or other debtor protection laws or equitable principles must be removed by either an endorsement or a written waiver and an affirmative creditors’ rights endorsement (ALRA Endorsement 21) must be added.

 

6.                                      Arbitration. In the event that the form policy which is utilized includes a compulsory arbitration provision, the insurer must agree that such compulsory arbitration provisions do not apply to any claims by or on behalf of the insured. Please note that the 1987 and 1992 ALTA form loan policies include such provisions.

 

7.                                      Date of Policy. The effective date of the Title Policy must be as of the date and time of the closing.

 

8.                                      Legal Description. The legal description of the property contained in the Title Policy must conform to (a) the legal description shown on the survey of the property, and (b) the legal description contained in the Mortgage. In any event, the Title Policy must be endorsed to provide that the insured legal description is the same as that shown on the survey.

 

9.                                      Easements. Each Title Policy shall insure, as separate parcels: (a) all appurtenant easements and other estates benefiting the property, and (b) all other rights, title, and interests of the borrower in real property under reciprocal easement agreements, access agreements, operating agreements, and agreements containing covenants, conditions, and restrictions relating to the Project.

 

10.                               Exceptions to Coverage. With respect to the exceptions, the following applies:

 

a)                                     Each Title Policy shall afford the broadest coverage available in the state in which the subject property is located.

 

b)                                     The “standard” exceptions (such as for parties in possession or other matters not shown on public records) must be deleted.

 

 

c)                                      The “standard” exception regarding tenants in possession under residential leases, should also be deleted. For commercial properties, a rent roll should be attached in lieu of the general exception.

 

d)                                     The standard survey exception to the Title Policy must be deleted. Instead, a survey reading reflecting the current survey should be incorporated.

 

e)                                      Any exception for taxes, assessments, or other lienable items must expressly insure that such taxes, assessments, or other items are not yet due and payable.

 

f)                                       Any lien, encumbrance, condition, restriction, or easement of record must be listed in the Title Policy, and the Title Policy must affirmatively insure that the improvements do not encroach upon the insured easements or insure against all loss or damage due to such encroachment

 

g)                                      The Title Policy may not contain any exception for any filed or unfiled mechanics’ or materialmen’s liens.

 

h)                                     In the event that a comprehensive endorsement has been issued and any Schedule B exceptions continue to be excluded from the coverage provided through that endorsement, then a determination must be made whether such exceptions would be acceptable to Bank. In the event that it is determined that such exception is acceptable, a written explanation regarding the acceptability must be submitted as part of the delivery of the loan documents.

 

If Schedule B indicates the presence of any easements that are not located on the survey, the Title Policy must provide affirmative insurance against any loss resulting from the exercise by the holder of such easement of its right to use or maintain that easement. ALTA Form 103.1 or an equivalent endorsement is required for this purpose.

 

11.                               Endorsements. With respect to endorsements, the following applies:

 

a)                                     Each Title Policy must include an acceptable environmental protection lien endorsement on ALTA Form 8.1. Please note that Form 8.1 may take exception for an entire statute which contains one or more specific sections under which environmental protection liens could take priority over the Mortgage; provided, however, that such specific sections under which the lien could arise must also be referenced.

 

b)                                     Each Title Policy must contain an endorsement which provides that the insured legal description is the same as shown on the survey.

 

c)                                      Each Title Policy must contain a comprehensive endorsement (ALTA Form 9) if a lien, encumbrance, condition, restriction, or easement is listed in Schedule B to the title insurance policy.

 

d)                                     Lender may require the following endorsements where applicable and available:

 

	
-access
    	
 
    	
-due   execution
    	
 
    	
-single   tax lot
    
	
-address
    	
 
    	
-first   loss
    	
 
    	
-subdivision
    
	
-assessments
    	
 
    	
-last   dollar
    	
 
    	
-tie   in
    
	
-assignment   of leases and rents
    	
 
    	
-leasehold
    	
 
    	
-usury
    

 

ii

 

	
-assignment   of loan documents
    	
 
    	
-mineral   rights
    	
 
    	
-zoning   (ALTA 3.1 -
    
	
-contiguity
    	
 
    	
-mortgage   tax
    	
 
    	
with parking)
    
	
-doing   business
    	
 
    	
-reverter
    	
 
    	
 
    

 

12.                               Other Coverages. Each Title Policy shall insure the following by endorsement or affirmative insurance to the extent such coverage is not afforded by the ALTA Form 9 or its equivalent in a particular jurisdiction:

 

a)                                     that no conditions, covenants, or restrictions of record affecting the property:

 

(i)                                     have been violated,

(ii)                                  create lien rights which prime the insured mortgage,

(iii)                               contain a right of reverter or forfeiture, a right of reentry, or power of termination, or

(iv)                              if violated in the future would result in the lien created by the insured mortgage or title to the property being lost, forfeited, or subordinated; and

 

b)                                     that except for temporary interference resulting solely from maintenance, repair, replacement, or alteration of lines, facilities, or equipment located in easements and rights of way taken as certain exceptions to each Title Policy, such exceptions do not and shall not prevent the use and operation of the Property or the improvements as used and operated on the effective date of the Title Policy.

 

13.                               Informational Matters.  The Policy must include, as an informational note, the following:

 

a)                                     The recorded plat number together with recording information; and

 

b)                                     The property parcel number or the tax identification number, as applicable.

 

14.                               Delivery of Copies.  Legible copies of all easements, encumbrances, or other restrictions shown as exceptions on the Title Policy must be delivered with the first draft of the title commitment.

 

iii

 

EXHIBIT D

 

Form of Survey Certification

 

To KeyBank National Association,                        and                        (insert Borrower and Title Insurance Company):

 

This is to certify that this map or plat and the survey on which it is based were made in accordance with the “2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys,” jointly established and adopted by ALTA and NSPS, and includes Items [2, 3, 4, 6, 7(a), 7(b), 7(c), 8, 9, 10, 11(a), 13 and 16] of Table A thereof. The field work was completed on                       .  Pursuant to the Accuracy Standards as adopted by ALTA and NSPS and in effect on the date of this certification, undersigned further certifies that in my professional opinion, as a land surveyor registered in the State of                     , the Relative Positional Accuracy of this survey does not exceed that which is specified therein.

 

	
Date of Plat or Map: 
    	
 
    	
 
    	
(signed) 
    
	
 
    	
(seal)
    	
 
    
	
 
    	
 
    	
Registration   No.
    

 

 

EXHIBIT E

 

[Reserved[

 

ii

 

EXHIBIT F

 

Insurance Requirements

 

 

INSURANCE REQUIREMENTS FOR COMMERCIAL REAL ESTATE LOANS

TERM LOAN – Existing or Completed Building – $30-75MM Urban/Dense Suburban 7/11/13

 

	
Named Insured (Borrower):
    	
Hamilton   Green Apartments LLC
    
	
Collateral Property Address:
    	
311   (Buildings 1, 2 & 3) and 319 Lowell Street
    
	
 
    	
Andover, MA 01810
    
	
 
    	
 
    
	
Mortgagee:
    	
 
    	
KeyBank   National Association, its successors and/or assignees, for itself and, when   applicable, as agent for other participating lenders
    
	
Mortgagee   address:
    	
 
    	
KeyBank   Real Estate Capital, Attention: Insurance Dept (Emily / Melissa) 11501 Outlook Street, Suite #300, Overland Park, KS 66211
    
				

 

Deductible under any line of coverage (except flood, quake and named windstorm) must not exceed $25,000.

 

Note:  If transaction includes mezzanine or equity loan, deductible must not exceed $25,000.

 

NOTE:  EVIDENCE OF INSURANCE MUST ADDRESS ALL THESE POINTS

 

PROPERTY

 

	
Required   coverage and conditions:
    	
 
    	
·      “Special   Form” equivalent to ISO standard, or “Risks of loss not otherwise excluded”   for coverage comparable to ISO Special Form, including damage from   windstorm and hail

·      Boiler &   Machinery or Breakdown coverage for buildings with boilers, elevators or   central HVAC (not required for per-unit HVAC)

·      Replacement   cost valuation for building.  Actual   loss sustained for business income.

·      No   coinsurance / coinsurance waived

·      At least 180   days extended period of recovery provision under business income
    
	
 
    	
 
    	
 
    
	
Additional   causes of loss if specified:
    	
 
    	
o Flood –   mandatory at NFIP limits ($250,000 per residential bldg.,

$500,000   per commercial bldg.) if property is in Special Flood Hazard Area

o Additional   or alternative flood limits: $1,000,000

o Earthquake $1,000,000   min.; up to 25% of value if location is high-risk for earthquake

o Terrorism

x Ordinance or   Law:  (A) Loss of value of undamaged   part – within full building limit

(if   sublimit applies, it should be at least 25% of hard cost value);

(B)   Demolition and (C) Increased Cost of Construction: $2,500,000

o Other 
    
	
 
    	
 
    	
 
    
	
Amount   of insurance:
    	
 
    	
Building:    Sufficient to cover insurable value (cost to construct less standard   exclusions such as foundation):  $   42,000,000

Business   interruption:  Sufficient to cover 12   months’ revenue or rental income: $4,500,000
    
	
 
    	
 
    	
 
    
	
Mortgagee   Clause:
    	
 
    	
Mortgagee   identified as above.

Mortgagee   provisions must match standard clause of ISO forms or Lender’s Loss Payable   clause per section D of ISO form CP 12 18 (06-07); INCLUDE COPY WITH   CERTIFICATE
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
Acord   28 Evidence of Property Insurance

·      All   details specified above must be specifically addressed.
    

 

iii

 

	
 
    	
 
    	
·      All deductibles and any sub-limits must be   disclosed.

·      If   program is blanket over other locations as well as loan property, show policy   limits along with values reported to insurer for the subject location.
    

 

iv

 

INSURANCE REQUIREMENTS FOR COMMERCIAL REAL ESTATE LOANS

PERMANENT LOAN

- continued –

 

GENERAL LIABILITY

 

	
Coverage   form:
    	
 
    	
Commercial   General Liability — equivalent to ISO standard occurrence-based form,   including bodily injury, property damage, personal injury, contractual   liability and products/completed operations liability
    
	
 
    	
 
    	
 
    
	
Limit   of liability per occurrence:
    	
 
    	
Not   less than $30,000,000 combining primary and excess
    
	
 
    	
 
    	
 
    
	
Mortgagee   as Additional Insured:
    	
 
    	
Mortgagee   identified on page 1.

Coverage   granted per ISO form CG 20 18 or CG 20 26, or equivalent.

INCLUDE   COPY OF ENDORSEMENT OR POLICY PROVISIONS WITH CERTIFICATE.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
Acord   25 Certificate of Liability Insurance
    

 

BORROWER’S PROPERTY, GENERAL LIABILITY AND UMBRELLA/EXCESS INSURERS MUST HAVE BEST’S RATINGS NOT LESS THAN A:X UNLESS OTHERWISE AGREED TO BY LENDER.

 

OTHER COVERAGES

 

	
Workers’   Compensation:
    	
 
    	
Statutory   benefits for the state where the building is located.  This requirement may be waived if borrowing   entity has no employees and property manager produces evidence of workers’   compensation coverage.
    
	
 
    	
 
    	
 
    
	
Employer’s   Liability:
    	
 
    	
$100,000   per accident for accidental injury; $100,000 per employee and $100,000   aggregate for occupational illness or disease.
    
	
 
    	
 
    	
 
    
	
Business   Auto Liability:
    	
 
    	
Covering   owned, non-owned and hired/rented vehicles
    
	
 
    	
 
    	
 
    
	
Environmental   Liability:
    	
 
    	
o Requirement   applies only if checked.  Form should   cover liability for bodily injury and property damage claims, both on and off   site, arising from existing and newly-discovered conditions, and include   mortgagee as an insured along with borrower.    Full quote and specimen forms must be submitted for lender approval.

 

Required   limit: $N/A
    

 

v

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