Document:

Exhibit 10.9

 

Staples
Leadership Team

Tax
Services Reimbursement

 

·                  Staples
will reimburse each member of the Staples Leadership Team for up to $5,000 of
tax services from a pre-approved list of approximately ten certified public
accounting firms (not to include Staples’ auditors), with the CEO and Chairman
each eligible to be reimbursed for up to $50,000 of services.

 

·                  The
services will include, but not be limited to, tax preparation and planning
services and estate planning services.

 

·                  The
list of pre-approved C.P.A. firms will be selected by the CFO.

 

·                  The
CFO will ensure adherence to maximum reimbursement levels.

 

·                  At
the first regularly scheduled Compensation Committee meeting after April 15
of each year, the Compensation Committee will receive a report from the CFO on
usage of this benefit (on a tax year basis).

 

·                  In
the event the CEO, upon consultation with the Compensation Committee, decides
it is best to terminate this benefit to the Staples Leadership Team, each
individual who would have otherwise been eligible to receive expense
reimbursement shall instead receive the benefit as additional annual
compensation.Exhibit 10.1

 

[CEPHALON,
INC. LETTERHEAD]

 

August 29,
2008

 

VIA
OVERNIGHT COURIER

 

Takeda
Pharmaceuticals North America, Inc.

1
Takeda Parkway

Deerfield,
IL 60015

Attn:
Dan Orlando, Vice President, Sales

 

	
  Re:

  	
   

  	
  Notice
  of Termination of Co-Promotion Agreement dated as of June 12, 2006 (the
  “Agreement”) by and between Cephalon, Inc. (“Cephalon”) and Takeda
  Pharmaceuticals North America, Inc. (“TPNA”)

  

 

Dear
Mr. Orlando:

 

Cephalon
hereby provides notice of termination of the Agreement pursuant to Section 3.2(a)(iv) of
the Agreement, which provides a termination right for either party if Net Sales
for the second Agreement Year were less than eight hundred fifty million
dollars ($850,000,000).   Accordingly,
the Agreement shall terminate on November 1, 2008.

 

All
capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to them in the Agreement.

 

	
  Sincerely,

  
	
   

  
	
  /s/
  J. Kevin Buchi

  	
   

  
	
   

  
	
  J.
  Kevin Buchi

  
	
  Executive
  Vice President and Chief Financial Officer

  

 

cc:

 

Takeda
Pharmaceuticals North America, Inc.

1
Takeda Parkway

Deerfield,
IL 60015

Attn:
General Counsel

 

Takeda
Pharmaceuticals North America, Inc.

1
Takeda Parkway

Deerfield,
IL 60015

Attn:
Mark Booth, PresidentEXHIBIT
10.1

 

 

CONTRACT
OF SALE

 

Between

 

SID
TOOL CO., INC.

 

Seller

 

AND

 

ESCO
MANAGEMENT CORP.

 

Purchaser

 

 

Dated:  August 27, 2008

 

 

 

TABLE OF
CONTENTS

 

	
  ARTICLE 1

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
             SALE

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
             PURCHASE
  PRICE

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
             LIENS
  AND ENCUMBRANCES

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
             REPRESENTATIONS,
  WARRANTIES AND COVENANTS OF SELLER

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
             “AS
  IS” CONDITION

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
             REPRESENTATIONS
  AND WARRANTIES OF PURCHASER

  	
   

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
             CLOSING

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
             DELIVERIES
  AT CLOSING

  	
   

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
             CLOSING
  ADJUSTMENTS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
             INTENTIONALLY
  OMITTED

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
             BROKERAGE

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
             DEFAULT

  	
   

  	
  8

  

 

i

 

	
  ARTICLE 13

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
             RIGHT
  TO FUTURE PROFIT UPON SALE OF PROPERTY

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
             1031
  EXCHANGE

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
             NOTICES

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
             AMENDMENT

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
             ASSIGNMENT

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
             CONSTRUCTION

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
             RECORDING

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
             GOVERNING
  AUTHORITY/WAIVER OF JURY TRIAL

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
             WAIVER

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
             INVALIDITY

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
             COUNTERPARTS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
             INTENTIONALLY
  OMITTED

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
             MERGER

  	
   

  	
  13

  

 

ii

 

	
  ARTICLE 26

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  FURTHER
  ASSURANCES

  	
   

  	
  13

  

 

TABLE OF EXHIBITS

 

	
   

  	
  EXHIBIT

  	
   

  	
  DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A

  	
   

  	
  Legal Description

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B

  	
   

  	
  Form of Deed

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C

  	
   

  	
  Assignment and Assumption of Lease

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D

  	
   

  	
  Bill of Sale and General Assignment

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E

  	
   

  	
  Permitted Encumbrances

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F

  	
   

  	
  The Lease

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  G

  	
   

  	
  Form of Tenant Estoppel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  H

  	
   

  	
  Form of Tenant Notice

  

 

iii

 

This CONTRACT OF SALE (this “Contract”), made as of this 27th
day of August, 2008, by and between Sid Tool Co., Inc, a corporation created
pursuant to the laws of the State of New York, having offices at 75 Maxess
Road, Melville, New York 11747,  (hereinafter
referred to as the “Seller”), and Esco Management Corp.,  a corporation  created pursuant to the laws of the State of New York having an address at c/o
JFI, 152 West 57th Street, 56th Floor, New York, New
York  10019 (hereinafter referred to as
the “Purchaser”).

 

W I T N E
S S E T H :

 

WHEREAS,
Seller is the owner of a fifty percent (50%) undivided interest in that certain
plot, piece or parcel of land, situate, lying and being in the County of
Nassau, State of New York known as 171 Ames Court, Plainview, New York and as
more specifically identified as that certain parcel of land located in Land and
Tax Map as Section 13, Block 98 and Lot 39 as more specifically set forth
in Exhibit “A” annexed hereto (the “Land”) and the buildings and other
improvements built on or attached to the Land (the “Improvements”,
together with the Land being collectively referred to herein as the “Property”);

 

WHEREAS,
Purchaser is the owner of the remaining fifty percent (50%) undivided interest
in the Property;

 

WHEREAS,
Purchaser desires to purchase and Seller desires to convey to Purchaser Seller’s
entire interest in the Premises (as hereinafter defined), subject to and in
accordance with the terms, conditions and provisions of this Contract;

 

NOW,
THEREFORE, in consideration of the premises and of the
mutual covenants and agreements hereinafter set forth, and subject to the terms
and conditions hereof, Seller and Purchaser hereby covenant and agree as
follows:

 

ARTICLE 1

SALE

 

1.01                                     Seller
agrees to sell, and Purchaser agrees to purchase the items set forth below upon
the terms and conditions set forth herein:

 

(a)                        Seller’s fifty (50%) percent
undivided interest in the Property;

 

(b)                       all
right, title and interest of Seller in and to any land lying in the bed of any
highway, street, road or avenue;

 

(c)                        all
right, title, and interest of Seller in and to all easements, tenements,
hereditaments, privileges, development rights and appurtenances in any way
belonging to the Property;

 

 

(d)        all
right, title and interest of Seller in and to any award made or to be made in
lieu thereof and in and to any unpaid award for damage to the Land by reason of
change of grade of any street; and

 

(e)         all
right, title and interest of Seller, if any, in and to all money, letters of
credit, bonds, certificates of deposit, negotiable instruments and other
security deposited by the tenants or occupants under the leases affecting the
Property to secure performance of tenant’s obligations thereunder.

 

(f)         all
right, title and interest of Seller in and to permits, licenses, variances (if
any, including any and all presently pending applications therefor), and
governmental approvals and consents affecting the Premises, if any, issued to
Seller or assigned to Seller by its predecessors in interest as fee owner of
the Premises, as holder, claimant, licensee, permittee, successor in interest,
applicant and/or owner of the Premises, by any and all federal, state, county,
municipal and local governments, and all departments, commissions, boards,
bureaus and offices thereof, having or claiming jurisdiction over the Premises,
whether or not the same may presently be in full force and effect.

 

(g)        all
right, title and interest of Seller in and to unexpired warranties and
guaranties, including all warranties under a construction or vendor contract,
affecting the Premises.

 

(h)        all
right, title and interest of Seller in and to any insurance proceeds, claims
for insurance proceeds or condemnation awards arising as a result of any
casualty, damage to, or condemnation of the Premises that occurs or is
commenced, in the case of a condemnation action, after the date hereof.

 

                                                Items
(a) through (h) shall hereinafter collectively be referred to as the “Premises.”

 

ARTICLE 2

PURCHASE
PRICE

 

2.01            The
purchase price (the “Purchase Price”) shall be One Million Eight Hundred Six
Thousand Two Hundred and Fifty and 00/100 ($1,806,250.00) Dollars, which shall
be paid on the Closing Date (as said term is defined in Article 7 of this
Contract) to Seller, or Seller’s designee, by wire transfer to such bank as
Seller or its designee shall designate.

 

ARTICLE 3

LIENS AND ENCUMBRANCES

 

3.01            Possession
of the Premises shall be deemed given by Seller to Purchaser at the completion
of Closing by delivery of the Deed in the form of Exhibit “B” annexed
hereto (the “Deed”).  The Deed will be
subject only to the exceptions set forth on Exhibit “E” attached hereto
and made a part hereof (the “Permitted Encumbrances”).

 

2

 

3.02            The
acceptance of the Deed for the Premises by Purchaser shall be deemed to be full
performance and discharge of every covenant and obligation on the part of
Seller to be performed pursuant to the provisions of this Contract, except for
those specifically stated to survive Closing, and no obligation or covenant of
the parties shall survive Closing, except those specifically stated in this
Contract to survive Closing.

 

ARTICLE 4

REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLER

 

4.01            Seller
represents, warrants and covenants that:

 

(a)        Seller
is a corporation, duly organized, validly existing and in good standing under
the laws of the State of New York.

 

(b)        Seller
is the owner of a fifty (50%) percent undivided interest in the Property, and
has complete and unrestricted power and authority to execute, deliver and
perform this Contract and all documents, certificates, agreements, instruments
and writings it is required to deliver under this Contract (collectively, the “Seller Closing Documents”), and to
perform, carry out and consummate the transactions contemplated to be
consummated by this Contract, including the power and authority to sell,
transfer and convey Seller’s interest in the Premises.

 

(c)        The
execution, delivery and performance of this Contract and the other Seller
Closing Documents have been duly authorized by all necessary action of Seller,
including any required approval of the shareholders and directors of Seller.

 

(d)        The
execution and delivery of this Contract and the consummation of the
transactions contemplated hereby do not and will not (i) violate or
conflict with any judgment, decree or order of any court applicable to or
affecting Seller, (ii) breach the provisions of or constitute a default
under any contract or any instrument or obligation to which Seller is a party
or by which Seller is bound, or (iii) violate or conflict with any law or
governmental regulation applicable to Seller;

 

(e)        This
Contract constitutes the legal, valid, and binding obligation of Seller
enforceable in accordance with its terms; and all documents and instruments
executed by Seller in connection with this Contract shall be a valid and
binding obligation of Seller enforceable in accordance with their terms;

 

(f)         Seller’s
interest in the Premises will be delivered to Purchaser in its “as is”
condition as of the Closing Date, except as specifically provided herein.

 

(g)        Seller
has not entered into any other agreement to sell its interest in the Premises
which remains in effect.  No other person
or entity has any option or right to purchase the Premises.

 

3

 

(h)        Seller
has not entered into any leases, licenses or occupancy agreements affecting all
or any portion of the Property other than the lease described in Exhibit “F”
(the “Lease”).  A true, correct, and
complete copy of the Lease has been delivered by Seller to Purchaser.  The Lease is in full force and effect and has
not been amended or modified except as set forth on Exhibit “F”
hereto.  Seller has not received notice from the tenant under the Lease (the “Tenant”)
of any currently uncured default under the Lease and to the best of Seller’s
knowledge there is no event which has occurred which, with the giving of notice
or the passage of time, or both, would constitute a default or event of default
under the Lease by the landlord thereunder. 
Seller has not delivered any notice of default to the Tenant, and to
Seller’s knowledge there is no event which has occurred which, with the giving
of notice or the passage of time, or both, would constitute a default or event
of default under the Lease by the Tenant. 
The Tenant has not made rental payments in respect of the Lease more
than one (1) month in advance.  No
brokerage commissions or fees are or will become payable by the landlord under
the Lease in connection with the Lease, including the exercise of any renewal
options thereunder;

 

(i)         Seller
has not received notice from the Tenant stating that there are any repairs
needed to be made to the Improvements for which the landlord under the Lease is
responsible and which repair has not been performed.

 

(j)         To
Seller’s knowledge (without any investigation of the same), there are no
defects in the Improvements or repairs that are necessary to maintain the
Improvements in good condition and repair, including, without limitation,
structural repairs to the roof, foundation and load bearing walls.  Seller has not received notice from the
Tenant stating that there are any repairs needed to be made to the Improvements
for which the landlord under the Lease is responsible.

 

(k)        Seller
represents that it has not granted any mortgage lien on the Premises.

 

(l)         Seller
has not received any notice from any governmental authority or third party of
any violation of environmental law or environmental condition that could give
rise to liability with respect to the Premises. 
To Seller’s knowledge (without any investigation of the same), there are
no conditions existing at the Premises that require, or which, with the giving
of notice or the passage of time, or both, will require investigative, remedial
or corrective action, removal, monitoring or closure pursuant to environmental
laws.

 

(m)       Except
for the Lease, Seller has not entered into any service, maintenance, or supply
contracts or other executory contracts affecting the Premises, including,
without limitation, brokerage agreements.

 

All representations and warranties made by
Seller hereunder shall be true as of the date of Closing and shall survive
Closing for a period of twelve (12) months.

 

4

 

ARTICLE 5

“AS IS” CONDITION

 

5.01                                     Purchaser
acknowledges and agrees that, except as specifically provided in this Contract,
neither Seller nor any agent, officer, employee, consultant or other person
representing or purportedly representing Seller has made, and Seller is not
liable for or bound in any manner by, any express or implied warranties,
guaranties, promises, statements, inducements, or representations pertaining to
the physical condition of the Premises, the zoning, the income, state of title,
expenses and operation thereof, the uses which can be made of the same or any
other matter or thing with respect thereto. 
Without limiting the foregoing, except as specifically provided in this
Contract, Seller is not liable for or bound by (and Purchaser has not relied
upon) any verbal or written statements, requests for proposals,
representations, real estate broker “set-ups,” or any other information
concerning the Premises furnished by Seller or any agent, officer, employee,
consultant, real estate broker or other person representing or purportedly
representing Seller.

 

5.02                                     Purchaser
acknowledges and understands that as it is the owner of a fifty (50%) percent
undivided interest in the Premises, Purchaser is purchasing the Premises in its
“AS IS” condition as of the date of Closing except as specifically provided in
this Contract.  At no time shall Seller
be liable for any defects (whether latent or patent) in the Premises nor shall
same give rise to any right of termination of this Contract or any rescission
or payments of any kind after Closing.

 

5.03                                  Except
for a breach of the representations and warranties of Seller set forth in Article 4
hereof which representations and warranties shall survive for a period of
twelve (12) months, Purchaser hereby releases Seller and Seller’s officers,
employees, and agents from any and all claims, demands, causes or actions,
losses, damages, liabilities, costs and expenses (including attorney’s fees,
whether the suit is instituted or not), whether known or unknown, liquidated or
contingent (hereinafter collectively called the “Claims”), arising from or
relating to (i) any defects (patent or latent), errors or omissions in the
design or construction of the Premises, whether same are the result of
negligence or otherwise., or (ii) any other conditions affecting the
Premises (excluding any environmental condition presently at the Premises),
whether the same are a result of negligence or otherwise. Purchaser
acknowledges that Purchaser has been represented by independent legal counsel
of Purchaser’s selection, and Purchaser is granting this release of its own
volition and after consultation with Purchaser’s counsel.

 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

6.01                                     Purchaser
represents and warrants that:

 

(a)                        Purchaser is a corporation
created pursuant to the laws of the State of New York and Purchaser has all
requisite power to own property and to carry on its business as 

 

5

 

presently conducted, and
Purchaser has complete and unrestricted power to execute, deliver and perform
this Contract and the transactions contemplated hereby;

 

(b)                       The execution and delivery of
this Contract and the consummation of the transactions contemplated hereby do
not and will not (i) violate or conflict with any judgment, decree or
order of any court applicable to or affecting Purchaser, (ii) breach the
provisions of or constitute a default under any contract, this Contract, or any
instrument or obligation to which Purchaser is a party or by which Purchaser is
bound, or (iii) violate or conflict with any law or governmental
regulation applicable to Purchaser; and

 

(c)                        This Contract and all other
contracts, documents and instruments executed by Purchaser pursuant hereto are
and will be the valid and binding obligations of Purchaser enforceable in
accordance with their terms.

 

6.02                                     Except
as otherwise indicated, all representations and warranties made by Purchaser
hereunder shall be true as of the Closing Date, and shall survive Closing or the
earlier termination of this Contract for a period of twelve (12) months.

 

ARTICLE 7

CLOSING

 

7.01                                     The Closing (the “Closing”)
shall take place by no later than August 29, 2008 (the “Closing Date”).  The Closing shall be held at the offices of
Seller’s attorneys, Farrell Fritz, P.C., 1320 Rexcorp Plaza, Uniondale, New
York or at such other location which is mutually agreeable to Purchaser and
Seller.

 

ARTICLE 8

DELIVERIES AT CLOSING

 

8.01                                     At Closing, Seller
shall deliver to Purchaser:

 

(a)                        A bargain and sale deed with
covenants against Grantor’s Acts limited to Seller’s fifty (50%) percent
undivided interest in the Premises, in proper statutory form for recording, in
substantially the form set forth in Exhibit “B” which shall be duly
executed and acknowledged by the Seller so as to convey to Purchaser fee simple
title to the Premises, free and clear of all Title Defects except as set forth
herein and subject only to the Permitted Encumbrances;

 

(b)                       New York TP-584 and RP-5217
forms and any other required transfer tax returns duly executed by Seller.

 

(c)                        Assignment and Assumption
Agreement of Lease, assigning all of Seller’s interests in any leases which
affect the Premises, in substantially the form annexed hereto as Exhibit “C”;

 

6

 

(d)                       Bill
of Sale and General Assignment, in substantially the form annexed hereto as Exhibit “D”;

 

(e)                        a non-foreign status affidavit (“FIRPTA”), as
required by Section 1445 of the Internal Revenue Code;

 

(f)                          an estoppel certificate from
the Tenant in substantially the form attached hereto as Exhibit “G” and
made a part hereof;

 

(g)                       a notice (in the form attached
hereto as Exhibit “H” and made a part hereof) to Tenant notifying Tenant
that the Property has been sold and directing Tenant to make all future rental
payments pursuant to the Lease to Purchaser; and

 

(h)                       such other documents which are
required to be delivered by Seller pursuant to this Contract.

 

8.02                                     At
Closing, Purchaser shall:

 

(a)                        pay to Seller or its designee
the Purchase Price;

 

(b)                       execute and deliver the
Assignment and Assumption Agreement of Lease;

 

(c)                        execute and deliver the TP-584
and RP-5217 forms; and any other required tax return;

 

(d)                       execute and deliver a
certification with respect to Purchaser’s obligations as set forth in Article 13,
herein; and

 

(e)                        deliver such other documents
which are required to be delivered by Purchaser under this Contract.

 

ARTICLE 9

CLOSING ADJUSTMENTS

 

9.01                                     On
the Closing Date, there shall be a rent adjustment for the Premises.  The rent shall be adjusted as of 11:59 on the
date preceding the Closing so that Purchaser shall be deemed to own a 100%
interest in the Premises for the entire day on which the Closing occurs.

 

9.02                                     The
parties acknowledge that there will be no closing adjustment for utilities
charges, water or real estate taxes as the same are paid directly by the
Tenant.

 

9.03                                     On
the Closing Date, Seller shall pay, by wire or by certified check, all state,
and local transfer taxes that are due in connection with the transactions
contemplated by this Contract.  The
provisions of this Section 9.03 shall survive the Closing.

 

7

 

ARTICLE 10

 

INTENTIONALLY OMITTED.

 

ARTICLE 11

BROKERAGE

 

11.01                               Purchaser and Seller
represent and warrant to each other that it has not dealt with any broker,
finder or like agent in connection with this transaction other than (i) Sutton
and Edwards and (ii) United Realty, Inc. (collectively, the “Brokers”).  Seller shall pay Brokers in accordance with a
separate agreement.  Seller agrees to,
and hereby does, indemnify and save Purchaser (and its respective legal
representatives, heirs, successors and assigns) harmless against and from any
loss, liability or expense, including reasonable attorneys’ fees, arising out
of any claim or claims for commission or other compensation from any broker,
finder or like agent, including the Brokers, claiming to have dealt with Seller
in connection with this Contract or the transaction contemplated hereby.  Purchaser agrees to, and hereby does,
indemnify and save Seller (and its respective legal representatives, heirs,
successors and assigns) harmless against and from any loss, liability or
expense, including reasonable attorneys’ fees, arising out of any claim or
claims for commission or other compensation from any broker, finder or like
agent, other than the Brokers, claiming to have dealt with Purchaser in
connection with this Contract or the transaction contemplated hereby.  This Article 11 shall survive Closing or
termination of this Contract.

 

ARTICLE 12

DEFAULT

 

12.01                               In
the event of a misrepresentation or breach of a warranty, covenant or agreement
which survives the Closing pursuant to this Contract, then the non-breaching
party shall have all rights and remedies available at law or in equity for such
misrepresentation or breach but only during the period that said representation
or warranty survives the Closing, as more specifically set forth in Article 4,
6 and 13 herein.

 

ARTICLE 13

RIGHT TO
FUTURE PROFIT UPON SALE OF PROPERTY

 

13.01                               As
an inducement to Seller to convey the Premises to Purchaser, in addition to the
Purchase Price set forth hereinabove, Purchaser hereby grants to Seller an
interest in Purchaser’s Net Proceeds of the Premises provided that Purchaser
sells the Premises to an unrelated third party within one (1) year from
the date of Closing.

 

8

 

13.02                               Purchaser
hereby acknowledges and agrees that in the event Purchaser executes a contract
to sale for the Premises within one (1) year of the Closing Date,
Purchaser shall notify Seller of said sale, which notice shall include a copy
of the contract of sale executed by Purchaser.  
At the Closing, Purchaser shall deliver to Seller the Seller’s Future
Interest based upon the following calculation:

 

Seller’s
Future Interest = One Half of Purchaser’s Net Proceeds less Seller’s Net
Proceeds

 

13.03                               For
purposes of this Section, the capitalized terms are defined as follows:

 

(i)                                               “Seller’s
Net Proceeds” is defined as the Purchase Price, as set forth herein, less
Seller’s Closing Costs.

 

(ii)                                            “Seller’s
Closing Costs” is defined as the payment of any and all transfer taxes,
brokerage commissions and  attorney fees
and any other directly related expenses paid in connection with the sale of the
Premises.

 

(iii)                                         “Purchaser’s
Closing Costs” is defined as the payment of any and all transfer taxes,
brokerage commissions and attorney fees, all costs of Purchaser’s due diligence
(including, without limitation, environmental reports, survey costs and title
insurance costs) and any other directly related expenses paid in connection
with Purchaser’s purchase of the Premises pursuant to this Contract and the
subsequent sale of the Premises.

 

(iv)                                        “Purchaser’s
Net Proceeds” is defined as the purchase price set forth in the contract of
sale executed by Purchaser subsequent to the Closing, less Purchaser’s Closing
Costs and any capital cost improvements performed by Purchaser subsequent to
its ownership of a 100% interest in the Premises.

 

13.04                               Solely
by way of example, assuming a sale price for the Premises of $4,500,000.00,
Purchaser’s Closing Costs of $200,000.00, capital cost improvements of
$300,000.00, and Seller’s Closing Costs of $100,000.00, the calculation for
Seller’s Future Interest would be as follows:

 

	
  Purchase Price

  	
   

  	
  $

  	
  4,500,000.00

  	
   

  
	
  Purchaser’s Closing Costs

  	
   

  	
  $

  	
  (200,000.00

  	
  )

  
	
  Capital Improvements

  	
   

  	
  $

  	
  (300,000.00

  	
  )

  
	
  Purchaser’s Net Proceeds

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  

 

	
  Purchase Price for 50% interest in Premises

  	
   

  	
  $

  	
  1,806,250.00

  	
   

  
	
  Seller’s Closing Costs

  	
   

  	
  $

  	
  (100,000.00

  	
  )

  
	
  Seller’s Net Proceeds

  	
   

  	
  $

  	
  1,706,250.00

  	
   

  

 

	
  Purchaser’s Net Proceeds

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  
	
  Less One Half

  	
   

  	
  $

  	
  (2,000,000.00

  	
  )

  
	
  Less Seller’s Net Proceeds

  	
   

  	
  $

  	
  (1,706,250.00

  	
  )

  
	
  Seller’s Future Interest:

  	
   

  	
  $

  	
  293,750.00

  	
   

  

 

9

 

13.05                               This
Article shall survive Closing.

 

ARTICLE 14

1031 EXCHANGE

 

14.01                               Section 1031
Like Kind Exchange.  Each party
hereby agrees to take any and all actions at Closing as are reasonably
necessary to help the other to effectuate a like-kind exchange of the Premises,
including, but not limited to, (i) entering into a like-kind exchange
trust agreement authorized by a “qualified intermediary” acceptable to
Purchaser and Seller to effectuate a like-kind exchange of the Premises, which
agreement shall be in the form and substance sufficient to allow such party’s
exchange of the Premises to qualify as a tax-free exchange, and (ii) paying
to the qualified intermediary the cash at Closing for the Premises in accordance
with the instructions of the intermediary; provided, however, that in no event
shall the non-requesting party be required to take title to any other real
property or to incur any additional expenses or liability in order to
effectuate the like-kind exchange, and the like-kind exchange shall not delay
the Closing Date.  The requesting party,
whether Seller or Purchaser, agrees to indemnify, defend and hold the other
party harmless from and against any and all costs, expenses, claims and other
liabilities of any kind arising with regard to the effectuation of a tax-free
exchange as described herein other than the review of standard like-kind
exchange documents, and this obligation shall survive Closing.  Notwithstanding anything to the contrary
provided herein, the non-requesting party makes no representations or
warranties as to the tax treatment for the transaction contemplated hereby or
the ability of the transaction contemplated to qualify for 1031
like-kind exchange treatment.  In the
event either party desires to effectuate a like-kind exchange as described
herein, such party shall pay any and all costs associated with its respective
1031 transactions.

 

ARTICLE 15

NOTICES

 

15.01                               Any
notice, statement, demand or other communication required or permitted to be
given, rendered or made by either party to the other pursuant to the terms of
this Contract or pursuant to any applicable law or requirement of any public
authority, shall be in writing and shall be deemed to have been properly given,
rendered or made, sent by (a) delivery by hand, or (b) overnight
courier, addressed as appropriate, if to Seller, at the address listed above,
with a copy simultaneously to:

 

10

 

Farrell Fritz, P.C.

1320 Rexcorp Plaza

Uniondale, New York 11556

Attention:  Rochelle Laufer, Esq.

Telephone: 
(516) 227-0645

Facsimile: 
(516) 336-2285

 

and to Purchaser, at the address listed
above, with a copy simultaneously to:

 

Proskauer Rose LLP

1585 Broadway

New York, New York 10036

Attention: 
Wendy J. Schriber, Esq.

Telephone: 
(212) 969.3730

Facsimile: 
(212) 969.2900

 

Any such notice, if (x) delivered by
hand, shall be deemed to have been given, rendered or made when actually
delivered by hand, or, (y) if sent by overnight courier, shall be deemed
given, rendered or made upon actual receipt. 
Either party may, by notice as aforesaid, designate a different address
or addresses for notices, statements, demands or other communications intended
for it.  The attorneys for the respective
parties hereto may transmit or receive any notice hereunder on behalf of their
respective clients.

 

ARTICLE 16

AMENDMENT

 

16.01                     This
Contract may not be changed or terminated orally.  All written amendments hereto shall be
executed by both parties hereto.  All provisions
of this Contract shall apply to and bind the heirs, executors, administrators,
permitted successors and assigns of the respective parties.

 

ARTICLE 17

ASSIGNMENT

 

17.01                     Purchaser
may not assign its rights and obligations under this Contract without the prior
written consent of the Seller, which consent may be granted or withheld in
Seller’s sole discretion.

 

ARTICLE 18

CONSTRUCTION

 

18.01                     All terms and words used in this
Contract, regardless of number and gender, shall be construed to include any other
number, or any other gender, as the context or sense of this 

 

11

 

Contract or any other section
or clause herein may require, as if such words had been fully and properly
written in the required number and gender.

 

18.02                     Should
any of the provisions of this Contract require interpretation, it is agreed
that the Court interpreting or construing this Contract shall not apply a
presumption that the terms of any provision shall be more strictly construed against
one party by reason of the rule of construction that a document is to be
construed more strictly against the party who itself or through its agent
prepared such document, it being agreed that both parties and their respective
agents have participated in the preparation of this Contract.  Each party hereto hereby acknowledges and
agrees that it has consulted legal counsel in connection with the negotiation
of this Contract and that it has bargaining power equal to that of the other
party hereto in connection with the negotiation and execution of this Contract.

 

ARTICLE 19

RECORDING

 

19.01                     The
parties agree that neither this Contract nor any memorandum or notice hereof
shall be recorded or filed.  If Purchaser
records or files or attempts to record or file this Contract or a notice or
memorandum hereof, Purchaser shall be deemed to have defaulted in its
obligations hereunder, in which event Seller may, at its sole option, declare
this Contract terminated.

 

ARTICLE 20

GOVERNING
AUTHORITY/WAIVER OF JURY TRIAL

 

20.01                     Each
party hereto waives trial by jury in any action, proceeding or counterclaim
brought by any of them against any other party hereto with respect to any
matter arising out of or in any way connected with this Contract, the
transactions contemplated or the relationship of the parties to each other.

 

20.02                     This
Contract shall be deemed to have been made in, and shall be governed by and
construed in accordance with the laws of, the State of New York.

 

ARTICLE 21

WAIVER

 

21.01                     The
waiver of a breach of any term of condition of this Contract shall not be
deemed to constitute a waiver of any other or subsequent breach of the same or
any other term or condition hereof.

 

12

 

ARTICLE 22

INVALIDITY

 

22.01                     The invalidity of any term or
provision of this Contract shall not be deemed to affect the validity of the
remainder of this Contract or of any other term or provision thereof.

 

ARTICLE 23

COUNTERPARTS

 

23.01                     This Contract may be executed in
one or more counterparts, each of which shall be deemed to be an original and
all of them together shall constitute one and the same instrument.  Fax signatures of PDF signatures provided by
email shall be deemed originals for all purposes.

 

ARTICLE 24

 

INTENTIONALLY
OMITTED.

 

ARTICLE 25

MERGER

 

25.01                     It
is understood and agreed that all understandings and Contracts heretofore had
between the parties hereto are merged in this Contract, which fully and
completely expresses their agreement, and that the same is entered into after
full investigation, neither party relying upon any other statement or
representation made by the other not embodied in this Contract.  Purchaser expressly agrees that there are no
verbal or written statements or representations pertaining to the Premises
furnished by any agent, employee, servant or any other person acting on Seller’s
behalf which are not contained in this Contract and for which Seller is liable
or bound.

 

ARTICLE 26

FURTHER
ASSURANCES

 

26.01                     Seller and Purchaser shall
do, execute, acknowledge and deliver such further acts and instruments as may
be reasonably required by the other party in connection with the transaction
contemplated hereunder.  Without limiting
the generality of the foregoing, Seller and Purchaser shall each cooperate with
the other after the Closing in accomplishing the transfer to Purchaser of the
various items that comprise the Premises.  The
provisions of this Section 26.01 shall survive the Closing.

 

13

 

IN WITNESS WHEREOF, the parties hereto have
hereunto set their hands the day and year first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  SID TOOL CO., INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Shelley M. Boxer

  
	
   

  	
  Name: Shelley M. Boxer

  
	
   

  	
  Title: V.P. Finance

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  ESCO MANAGEMENT CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Robert Small

  
	
   

  	
  Name: J. Robert Small

  
	
   

  	
  Title: Secretary

  

 

14

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