Document:

Exhibit 10.11

 

4770 Regent Blvd., Irving, TX

 

PURCHASE
AND SALE AGREEMENT

 

by and between

 

HUB
PROPERTIES TRUST,

 

as Seller,

 

and

 

SENIOR
HOUSING PROPERTIES TRUST,

 

as Purchaser

 

 

May 5, 2008

 

 

TABLE
OF CONTENTS

 

	
  SECTION 1. 

  	
  DEFINITIONS.

  	
  1

  
	
  1.1

  	
  “Agreement”

  	
  1

  
	
  1.2

  	
  “Business Day”

  	
  1

  
	
  1.3

  	
  “Closing”

  	
  1

  
	
  1.4

  	
  “Closing Date”

  	
  1

  
	
  1.5

  	
  “Existing Survey”

  	
  1

  
	
  1.6

  	
  “Existing Title
  Policy”

  	
  2

  
	
  1.7

  	
  “Improvements”

  	
  2

  
	
  1.8

  	
  “Land”

  	
  2

  
	
  1.9

  	
  “Leases”

  	
  2

  
	
  1.10

  	
  “Other Property”

  	
  2

  
	
  1.11

  	
  “Permitted
  Exceptions”

  	
  2

  
	
  1.12

  	
  “Property”

  	
  2

  
	
  1.13

  	
  “Purchase Price”

  	
  2

  
	
  1.14

  	
  “Purchaser”

  	
  3

  
	
  1.15

  	
  “Rent Roll”

  	
  3

  
	
  1.16

  	
  “Seller”

  	
  3

  
	
  1.17

  	
  “Title Company”

  	
  3

  
	
  1.18

  	
  “Update”

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 2. 

  	
  PURCHASE AND SALE;
  CLOSING.

  	
  3

  
	
  2.1

  	
  Purchase and Sale.

  	
  3

  
	
  2.2

  	
  Closing.

  	
  3

  
	
  2.3

  	
  Purchase Price.

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3. 

  	
  TITLE, DILIGENCE
  MATERIALS, ETC.

  	
  4

  
	
  3.1

  	
  Title.

  	
  4

  
	
  3.2

  	
  No Other Diligence.

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 4. 

  	
  CONDITIONS TO THE
  PURCHASER’S OBLIGATION TO CLOSE.

  	
  5

  
	
  4.1

  	
  Closing Documents.

  	
  5

  
	
  4.2

  	
  Financing.

  	
  6

  
	
  4.3

  	
  Title Policy.

  	
  6

  
	
  4.4

  	
  Environmental
  Reliance Letters.

  	
  6

  
	
  4.5

  	
  Condition of Property.

  	
  7

  
	
  4.6

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 5. 

  	
  CONDITIONS TO
  SELLER’S OBLIGATION TO CLOSE.

  	
  7

  
	
  5.1

  	
  Purchase Price.

  	
  7

  
	
  5.2

  	
  Closing Documents.

  	
  7

  
	
  5.3

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REPRESENTATIONS AND
  WARRANTIES OF SELLER.

  	
  7

  
	
  6.1

  	
  Status and Authority
  of the Seller, Etc.

  	
  7

  
	
  6.2

  	
  Action of the
  Seller, Etc.

  	
  7

  
	
  6.3

  	
  No Violations of
  Agreements.

  	
  8

  
	
  6.4

  	
  Litigation.

  	
  8

  
	
  6.5

  	
  Existing Leases,
  Etc.

  	
  8

  
	
  6.6

  	
  Agreements, Etc.

  	
  9

  
	
  6.7

  	
  Not a Foreign
  Person.

  	
  10

  

 

2

 

	
  SECTION 7. 

  	
  REPRESENTATIONS AND
  WARRANTIES OF PURCHASER.

  	
  11

  
	
  7.1

  	
  Status and
  Authority of the Purchaser.

  	
  11

  
	
  7.2

  	
  Action of the
  Purchaser.

  	
  11

  
	
  7.3

  	
  No Violations of
  Agreements.

  	
  11

  
	
  7.4

  	
  Litigation.

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 8. 

  	
  COVENANTS OF THE
  SELLER.

  	
  12

  
	
  8.1

  	
  Approval of
  Agreements.

  	
  12

  
	
  8.2

  	
  Operation of
  Property.

  	
  12

  
	
  8.3

  	
  Compliance with
  Laws, Etc.

  	
  12

  
	
  8.4

  	
  Compliance with
  Agreements.

  	
  12

  
	
  8.5

  	
  Notice of Material
  Changes or Untrue Representations.

  	
  12

  
	
  8.6

  	
  Insurance.

  	
  13

  
	
  8.7

  	
  Approval of 2009
  Capital Expenditure Budget.

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 9. 

  	
  APPORTIONMENTS.

  	
  13

  
	
  9.1

  	
  Real Property
  Apportionments.

  	
  13

  
	
  9.2

  	
  Closing Costs.

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 10. 

  	
  DAMAGE TO OR
  CONDEMNATION OF PROPERTY.

  	
  16

  
	
  10.1

  	
  Casualty.

  	
  16

  
	
  10.2

  	
  Condemnation.

  	
  16

  
	
  10.3

  	
  Survival.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 11. 

  	
  DEFAULT.

  	
  17

  
	
  11.1

  	
  Default by the
  Seller.

  	
  17

  
	
  11.2

  	
  Default by the
  Purchaser.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 12. 

  	
  MISCELLANEOUS.

  	
  17

  
	
  12.1

  	
  Allocation of
  Liability.

  	
  17

  
	
  12.2

  	
  Brokers.

  	
  18

  
	
  12.3

  	
  Publicity.

  	
  18

  
	
  12.4

  	
  Notices.

  	
  18

  
	
  12.5

  	
  Waivers, Etc.

  	
  20

  
	
  12.6

  	
  Assignment;
  Successors and Assigns.

  	
  20

  
	
  12.7

  	
  Severability.

  	
  20

  
	
  12.8

  	
  Counterparts, Etc.

  	
  21

  
	
  12.9

  	
  Performance on
  Business Days.

  	
  21

  
	
  12.10

  	
  Attorneys’ Fees.

  	
  21

  
	
  12.11

  	
  Section and
  Other Headings.

  	
  21

  
	
  12.12

  	
  Time of Essence.

  	
  21

  
	
  12.13

  	
  Governing Law.

  	
  22

  
	
  12.14

  	
  Arbitration.

  	
  22

  
	
  12.15

  	
  Like Kind Exchange.

  	
  23

  
	
  12.16

  	
  Recording.

  	
  23

  
	
  12.17

  	
  Non-liability of
  Trustees of Seller.

  	
  23

  
	
  12.18

  	
  Non-liability of
  Trustees of Purchaser.

  	
  24

  
	
  12.19

  	
  Waiver and Further
  Assurances.

  	
  24

  
	
  12.20

  	
  State Specific
  Provisions.

  	
  24

  

 

3

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT is made as
of May 5, 2008, by and between HUB
PROPERTIES TRUST, a Maryland real estate investment trust (the “Seller”),
and SENIOR HOUSING PROPERTIES TRUST,
a Maryland real estate investment trust (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Seller is the owner of the Property
(this and other capitalized terms used and not otherwise defined herein shall
have the meanings given such terms in Section 1); and

 

WHEREAS, the Seller
wishes to sell to the Purchaser, and the Purchaser desires to purchase from the
Seller, the Property, subject to and upon the terms and conditions hereinafter
set forth;

 

NOW, THEREFORE, in
consideration of the mutual covenants herein contained and other good and
valuable consideration, the mutual receipt and legal sufficiency of which are
hereby acknowledged, the Seller and the Purchaser hereby agree as follows:

 

SECTION 1.                          DEFINITIONS.

 

Capitalized terms used in this Agreement shall have the meanings set
forth below or in the section of this Agreement referred to below:

 

1.1                               “Agreement”  shall mean this Purchase and Sale Agreement,
together with any exhibits and schedules attached hereto, as it and they may be
amended from time to time as herein provided.

 

1.2                               “Business Day”  shall mean any day other than a Saturday,
Sunday or any other day on which banking institutions in The Commonwealth of
Massachusetts are authorized by law or executive action to close.

 

1.3                               “Closing”  shall have the meaning given such term in Section 2.2.

 

1.4                               “Closing Date”  shall have the meaning given such term in Section 2.2.

 

1.5                               “Existing Survey”  shall mean
the existing ALTA survey of the Property.

 

 

1.6                               “Existing Title Policy”  shall mean,
the existing title insurance policy for the Property.

 

1.7                               “Improvements”  shall mean, the Seller’s
entire right, title and interest in and to the existing office buildings,
fixtures and other structures and improvements situated on, or affixed to, the
Land.

 

1.8                               “Land” 
shall mean, the Seller’s entire right, title and interest in and to (a) the
parcel(s) of land described in Schedule A hereto, together with (b) all
easements, rights of way, privileges, licenses and appurtenances which the
Seller may own with respect thereto.

 

1.9                               “Leases” 
shall mean the leases identified in the Rent Roll and any other leases
hereafter entered into in accordance with the terms of this Agreement.

 

1.10                         “Other Property”  shall
mean the Seller’s entire right, title and interest in and to (a) all
fixtures, machinery, systems, equipment and items of personal property owned by
the Seller and attached or appurtenant to, located on and used in connection
with the ownership, use, operation or maintenance of the Land or Improvements,
if any, and (b) all intangible property owned by the Seller arising from
or used in connection with the ownership, use, operation or maintenance of the
Land or Improvements, if any.

 

1.11                         “Permitted Exceptions”  shall mean, collectively, (a) liens for
taxes, assessments and governmental charges not yet due and payable or due and
payable but not yet delinquent; (b) the Leases; (c) the exceptions to
title set forth in the Existing Title Policy; (d) all matters shown on the
Existing Survey, and (e) such other nonmonetary encumbrances with respect
to the Property as may be shown on the Update which are not objected to by the
Purchaser (or which are objected to, and subsequently waived, by the Purchaser)
in accordance with Section 3.1.

 

1.12                         “Property”  shall mean,
collectively, all of the Land, the Improvements and the Other Property.

 

1.13                         “Purchase Price”  shall mean Eighteen Million Seven Hundred
Thirteen Thousand Two Hundred Fifty-Five Dollars ($18,713,255).

 

2

 

1.14                         “Purchaser”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.15                         “Rent Roll”  shall mean Schedule B to this
Agreement.

 

1.16                         “Seller” 
shall have the meaning given such term in the preambles to this
Agreement, together with any permitted successors and assigns.

 

1.17                         “Title Company”  shall mean Lawyers Title Insurance
Corporation.

 

1.18                         “Update”  shall have
the meaning given such term in Section 3.1.

 

SECTION 2.                          PURCHASE AND SALE; CLOSING.

 

2.1                               Purchase and Sale. 
In consideration of the payment of the Purchase Price by the Purchaser
to the Seller and for other good and valuable consideration, the Seller hereby
agrees to sell to the Purchaser, and the Purchaser hereby agrees to purchase
from the Seller, the Property for the Purchase Price, subject to and in
accordance with the terms and conditions of this Agreement.

 

2.2                               Closing.  The purchase and sale of the Property shall
be consummated at a closing (the “Closing”) to be held at the offices of
Sullivan & Worcester LLP, One Post Office Square, Boston,
Massachusetts, or at such other location as the Seller and the Purchaser may
agree, at 10:00 a.m., local time, on March 30, 2009, as the same may
be accelerated pursuant to this Section 2.2 (the “Closing Date”).

 

Notwithstanding
the foregoing, either party may accelerate the Closing Date by giving not less
than ten (10) Business Days prior written notice (an “Acceleration
Notice”) to the other, in which event the Closing Date shall be the date
set forth in such Acceleration Notice unless the party receiving the
Acceleration Notice gives written notice objecting to the accelerated date set
forth in the Acceleration Notice (a “Rejection Notice”) to the other
within five (5) Business Days after its receipt of the Acceleration
Notice, in which event, the Closing Date shall not be accelerated but shall
occur as set forth in the preceding paragraph; provided, however,
that the Seller shall have the right to give a Rejection Notice only if the
acceleration of the Closing Date will adversely effect the Seller’s ability to
conclude a like kind exchange pursuant to Section 12.15, and the 

 

3

 

Purchaser shall have the right to give a Rejection Notice only if the
Purchaser is unable to satisfy the condition in Section 4.2 prior
to such accelerated Closing Date.

 

2.3                               Purchase Price.

 

(a)                                At Closing,
the Purchaser shall pay the Purchase Price to the Seller, subject to the
following adjustments:

 

(i)                                     There shall
be added to, or deducted from, the Purchase Price such amounts as may be
required by  Article 9.

 

(b)                                 The Purchase
Price, as adjusted as provided herein, shall be payable by wire transfer of
immediately available funds on the Closing Date to an account or accounts to be
designated by the Seller.

 

SECTION 3.                                              TITLE, DILIGENCE MATERIALS, ETC.

 

3.1                               Title. 
Prior to the execution of this Agreement, the Seller has delivered the
Existing Title Policy and the Existing Survey to the Purchaser.

 

Within
ten (10) days after the execution hereof, the Purchaser shall order an
update to the Existing Title Policy (an “Update”) from the Title
Company.  The Purchaser shall deliver to
the Seller a copy of the Update promptly upon receipt thereof.  Promptly after receipt of the Update, but, in
any event, prior to the Closing Date, the Purchaser shall give the Seller
written notice of any title exceptions (other than Permitted Exceptions) set
forth on the Update as to which the Purchaser objects.  The Seller shall have the right, but not the
obligation, to attempt to remove, satisfy or otherwise cure any exceptions to
title to which the Purchaser so objects. 
If, for any reason, in its sole discretion, the Seller is unable or
unwilling to take such actions as may be required to cause such exceptions to
be removed from the Update, the Seller shall give the Purchaser notice thereof;
it being understood and agreed that the failure of the Seller to give prompt
notice of objection shall be deemed an election by the Seller not to remedy
such matters.  If the Seller shall be
unable or unwilling to remove any title defects to which the Purchaser has so
objected, the Purchaser may elect (i) to terminate this Agreement or (ii) to
consummate the transactions contemplated hereby, notwithstanding such title
defect, without any abatement or reduction in the Purchase Price on account
thereof (whereupon such objected to exceptions or matters shall be deemed to be

 

4

 

Permitted Exceptions).  The
Purchaser shall make any such election by written notice to the  Seller given on or prior to the fifth (5th)
Business Day after the Seller’s notice of its unwillingness or inability to
cure (or deemed election not to cure) such defect and time shall be of the
essence with respect to the giving of such notice.  Failure of the Purchaser to give such notice
shall be deemed an election by the Purchaser to proceed in accordance with
clause (ii) above.

 

3.2                               No Other Diligence. 
The Purchaser
acknowledges that, except as provided in Section 3.1, (i) the
Purchaser has had the opportunity to fully investigate and inspect the physical
and environmental condition of the Property, and to review and analyze all
title examinations, surveys, environmental assessment reports, building
evaluations, financial data and other investigations and materials pertaining
to the Property which the Purchaser deems necessary to determine the
feasibility of the Property and its decision to acquire the Property, (ii) the
Purchaser shall not be conducting any further title examinations, surveys,
environmental assessments, building evaluations, financial analyses or other
investigations with respect to the Property, and (iii) the Purchaser shall
not have any right to terminate this Agreement as a result of any title
examinations, surveys, environmental assessments, building valuations,
financial analyses or other investigations with respect to the Property.

 

SECTION 4.                          CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE.

 

The obligation of the Purchaser to acquire the Property shall be
subject to the satisfaction of the following conditions precedent on and as of
the Closing Date:

 

4.1                               Closing Documents. 
The Seller shall have delivered, or cause to have been delivered, to the
Purchaser the following:

 

(a)                                A good and
sufficient deed in the form attached as Schedule C hereto, with respect
to the Property, in proper statutory form for recording, duly executed and
acknowledged by the Seller, conveying title to the Property, free from all
liens and encumbrances other than the Permitted Exceptions;

 

(b)                               An
assignment by the Seller and an assumption by the Purchaser, in form and
substance reasonably satisfactory to the Seller and the Purchaser, duly
executed and acknowledged by the Seller and the Purchaser, of all of the Seller’s
right, title and interest in, to and under the Leases and all of the Seller’s 

 

5

 

right, title and interest, if any, in, to and
under all transferable licenses, contracts, permits and agreements affecting
the Property;

 

(c)                                A bill of
sale by the Seller, without warranty of any kind, in form and substance
reasonably satisfactory to the Seller and the Purchaser, with respect to any
personal property owned by the Seller, situated at the Property and used
exclusively by the Seller in connection with the Property (it being understood
and agreed that no portion of the Purchase Price is allocated to personal
property);

 

(d)                               To the
extent the same are in the Seller’s possession, original, fully executed copies
of all material documents and agreements, plans and specifications and
contracts, licenses and permits pertaining to the Property;

 

(e)                                To the
extent the same are in the Seller’s possession, duly executed original copies
of the Leases;

 

(f)                                  A closing
statement showing the Purchase Price, apportionments and fees, and costs and
expenses paid in connection with the Closing; and

 

(g)                               Such other
conveyance documents, certificates, deeds and other instruments as the
Purchaser, the Seller or the Title Company may reasonably require and as are customary
in like transactions in sales of property in similar transactions.

 

4.2                               Financing.  The
Purchaser shall have, in addition to funds available to the Purchaser on date
of this Agreement, secured sufficient additional funds, whether by means of
capital market transactions, bank financings or otherwise, to consummate the
transactions contemplated hereby.

 

4.3                               Title Policy.  The Title
Company shall be prepared to issue, upon payment of the title premium at its
regular rates, a title policy in the amount of the Purchase Price, insuring
title to the Property is vested in the Purchaser or its designee or assignee,
subject only to the Permitted Exceptions, with such endorsements as shall be
reasonably required by the Purchaser.

 

4.4                               Environmental Reliance Letters.  The Purchaser shall have received a reliance letter, authorizing the Purchaser and its designees and
assignees to rely on the most recent environmental assessment report prepared
for the Property, in form and substance reasonably acceptable to the Purchaser.

 

6

 

4.5                               Condition of Property. 
The Property shall be in substantially the same physical
condition as on the date of this Agreement, ordinary wear and tear and, subject
to Section 10.1, casualty excepted.

 

4.6                               Other Conditions. 
All representations and warranties of the Seller herein shall be true,
correct and complete in all material respects on and as of the Closing Date and
the Seller shall have performed in all material respects all covenants and
obligations required to be performed by the Seller on or before the Closing
Date.

 

SECTION 5.                          CONDITIONS TO SELLER’S OBLIGATION TO CLOSE.

 

The obligation of the Seller to convey the Property to the Purchaser is
subject to the satisfaction of the following conditions precedent on and as of
the Closing Date:

 

5.1                               Purchase Price.  The Purchaser shall deliver to the Seller the
Purchase Price payable hereunder, subject to the adjustments set forth in Section 2.3,
together with any closing costs to be paid by the Purchaser under Section 9.2.

 

5.2                               Closing Documents. 
The Purchaser shall have delivered to the Seller duly executed and
acknowledged counterparts of the documents described in Section 4.1,
where applicable.

 

5.3                               Other Conditions.  All representations and warranties of the
Purchaser herein shall be true, correct and complete in all material respects
on and as of the Closing Date and the Purchaser shall have performed in all
material respects all covenants and obligations required to be performed by the
Purchaser on or before the Closing Date.

 

SECTION 6.                          REPRESENTATIONS AND WARRANTIES OF SELLER.

 

To induce the Purchaser to enter into this Agreement, the Seller
represents and warrants to the Purchaser as follows:

 

6.1                               Status and Authority of the Seller, Etc.  The Seller is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

6.2                               Action of the Seller, Etc.  The Seller has taken all necessary action to
authorize the execution, delivery and 

 

7

 

performance of this Agreement, and upon the execution and delivery of
any document to be delivered by the Seller on or prior to the Closing Date,
this Agreement and such document shall constitute the valid and binding
obligation and agreement of the Seller, enforceable against the Seller in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

 

6.3                               No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by the Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon the Property pursuant to the
terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness
or any other agreement or instrument by which the Seller is bound.

 

6.4                               Litigation. 
To the Seller’s actual knowledge, it has not received written notice
that any investigation, action or proceeding is pending or threatened, which (i) questions
the validity of this Agreement or any action taken or to be taken pursuant
hereto, or (ii) involves condemnation or eminent domain proceedings
against the Property or any portion thereof.

 

6.5                               Existing Leases, Etc. 
Subject to Section 8.1, other than the Leases listed in the Rent Roll, the Seller has not entered
into a contract or agreement with respect to the occupancy of the Property that
will be binding on the Purchaser after the Closing.  To the Seller’s actual knowledge: (a) the
copies of the Leases heretofore delivered by the Seller to the Purchaser are
true, correct and complete copies thereof; and (b) such Leases have not
been amended except as evidenced by amendments similarly delivered and
constitute the entire agreement between the Seller and the tenants
thereunder.  Except as otherwise
set forth in the Rent Roll or the Leases: (i) to the Seller’ actual
knowledge, each of its Leases is in full force and effect on the terms set
forth therein; (ii) to the Seller’s actual knowledge, there are no uncured
defaults or circumstances which with the giving of notice, the passage of time
or both would constitute a default thereunder which would have a material adverse
effect on the business or operations of the Property; (iii) to the Seller’s
actual knowledge, each of its tenants is legally required to pay all sums and
perform all material obligations set forth therein without any ongoing
concessions, abatements, offsets, defenses or other basis for 

 

8

 

relief or adjustment; (iv) to the Seller’s actual knowledge, none
of its tenants has asserted in writing or has any defense to, offsets or claims
against, rent payable by it or the performance of its other obligations under
its Lease which would have a material adverse effect on the on-going business
or operations of the Property; (v) the Seller has no outstanding
obligation to provide any of its tenants with an allowance to perform, or to
perform at its own expense, any tenant improvements; (vi) none of its
tenants has prepaid any rent or other charges relating to the post-Closing
period; (vii) to the Seller’s actual knowledge, none of its tenants has
filed a petition in bankruptcy or for the approval of a plan of reorganization
or management under the Federal Bankruptcy Code or under any other similar
state law, or made an admission in writing as to the relief therein provided,
or otherwise become the subject of any proceeding under any federal or state
bankruptcy or insolvency law, or has admitted in writing its inability to pay
its debts as they become due or made an assignment for the benefit of
creditors, or has petitioned for the appointment of or has had appointed a
receiver, trustee or custodian for any of its property, in any case that would
have a material adverse effect on the business or operations of the Property; (viii) to
the Seller’s actual knowledge, none of its tenants has requested in writing a
modification of its Lease, or a release of its obligations under its Lease in
any material respect or has given written notice terminating its Lease, or has
been released of its obligations thereunder in any material respect prior to
the normal expiration of the term thereof, in any case that would have a
material adverse effect on the on-going business or operations of the Property;
(ix) to the Seller’s actual knowledge, except as set forth in the Leases,
no guarantor has been released or discharged, voluntarily or involuntarily, or
by operation of law, from any obligation under or in connection with any of its
Leases or any transaction related thereto; and (x) all brokerage
commissions currently due and payable with respect to each of its Leases have
been paid.  To the Seller’s actual
knowledge, the other information set forth in the Rent Roll is true, correct
and complete in all material respects.

 

6.6                               Agreements, Etc. 
Other than the Leases, the Seller has not entered into any contract or
agreement with respect to the Property which will be binding on the Purchaser
after the Closing other than contracts and agreements being assumed by the
Purchaser or which are terminable upon thirty (30) days notice without payment
of premium or penalty.

 

9

 

6.7                                 Not a Foreign Person.  The Seller is not a “foreign person” within
the meaning of Section 1445 of the United States Revenue Code of 1986, as
amended, and the regulations promulgated thereunder.

 

The representations and warranties made in this Agreement by the Seller
shall be continuing and shall be deemed remade by the Seller as of the Closing
Date, with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Seller shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Purchaser gives the Seller written notice prior to the expiration of said
three hundred sixty (360) day period of such alleged breach with reasonable
detail as to the nature of such breach.

 

Except as otherwise expressly provided in this Agreement or in any
documents to be delivered to the Purchaser at the Closing, the Seller has not
made, and the Purchaser has not relied on, any information, promise,
representation or warranty, express or implied, regarding the Property, whether
made by the Seller, on the Seller’s behalf or otherwise, including, without
limitation, the physical condition of the Property, the financial condition of
the tenants under the Leases, title to or the boundaries of the Property, pest
control matters, soil conditions, the presence, existence or absence of
hazardous wastes, toxic substances or other environmental matters, compliance
with building, health, safety, land use and zoning laws, regulations and
orders, structural and other engineering characteristics, traffic patterns,
market data, economic conditions or projections, and any other information
pertaining to the Property or the market and physical environments in which
they are located.  The Purchaser
acknowledges that (i) the Purchaser has entered into this Agreement with
the intention of relying upon its own investigation or that of third parties
with respect to the physical, environmental, economic and legal condition of
the Property and (ii) the Purchaser is not relying upon any statements,
representations or warranties of any kind, other than those specifically set
forth in this Agreement or in any document to be delivered to the Purchaser at
the Closing, made (or purported to be made) by the Seller or anyone acting or
claiming to act on the Seller’s behalf. 
The Purchaser has inspected the Property and is fully familiar with the
physical condition thereof and shall purchase the Property in its “as is”, “where
is” and “with all faults” condition on the Closing 

 

10

 

Date.  Notwithstanding anything
to the contrary contained herein, in the event that any party hereto has actual
knowledge of the default of any other party (a “Known Default”), but
nonetheless elects to consummate the transactions contemplated hereby and
proceeds to Closing, then the rights and remedies of such non-defaulting party
shall be waived with respect to such Known Default upon the Closing and the
defaulting party shall have no liability with respect thereto.

 

SECTION 7.                          REPRESENTATIONS AND WARRANTIES OF PURCHASER.

 

To induce the Seller to enter into this Agreement, the Purchaser
represents and warrants to the Seller as follows:

 

7.1                               Status and Authority of the Purchaser.  The Purchaser is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

7.2                               Action of the Purchaser. 
The Purchaser has taken all necessary action to authorize the execution,
delivery and performance of this Agreement, and upon the execution and delivery
of any document to be delivered by the Purchaser on or prior to the Closing
Date, this Agreement and such document shall constitute the valid and binding
obligation and agreement of the Purchaser, enforceable against the Purchaser in
accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws of general
application affecting the rights and remedies of creditors.

 

7.3                               No Violations of Agreements.  Neither the
execution, delivery or performance of this Agreement by the Purchaser, nor
compliance with the terms and provisions hereof, will result in any breach of
the terms, conditions or provisions of, or conflict with or constitute a
default under, or result in the creation of any lien, charge or encumbrance
upon any property or assets of the Purchaser pursuant to the terms of any
indenture, mortgage, deed of trust, note, evidence of indebtedness or any other
agreement or instrument by which the Purchaser is bound.

 

7.4                               Litigation.  The Purchaser has received no written notice
that any investigation, action or proceeding is pending or threatened which
questions the validity of this Agreement or any action taken or to be taken
pursuant hereto.

 

11

 

The
representations and warranties made in this Agreement by the Purchaser shall be
continuing and shall be deemed remade by the Purchaser as of the Closing Date
with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Purchaser shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Seller gives the Purchaser written notice prior to the expiration of said
three hundred sixty (360) period of such alleged breach with reasonable detail
as to the nature of such breach.

 

SECTION 8.                          COVENANTS OF THE SELLER.

 

The Seller hereby covenants with the Purchaser between the date of this
Agreement and the Closing Date as follows:

 

8.1                               Approval of Agreements. 
Not to enter into, modify, amend or terminate any Lease or any other
material agreement with respect to the Property, which would encumber or be
binding upon the Property from and after the Closing Date, without in each
instance obtaining the prior written consent of the Purchaser.

 

8.2                               Operation of Property. 
To continue to operate the Property consistent with past practices.

 

8.3                               Compliance with Laws, Etc.  To comply in all material respects with (i) all laws, regulations and other requirements
from time to time applicable of every governmental body having jurisdiction of
the Property, or the use or occupancy thereof, and (ii) all
material terms, covenants and conditions of all agreements affecting the
Property.

 

8.4                               Compliance with Agreements.  To comply with each and every material term,
covenant and condition contained in the Leases and any other material document
or agreement affecting the Property and to monitor compliance thereunder
consistent with past practices.

 

8.5                               Notice of Material Changes or Untrue Representations.  Upon learning of any material change in any
condition with respect to the Property or of any event or circumstance which
makes any representation or warranty of the Seller to the Purchaser under this
Agreement untrue or misleading, promptly to notify the Purchaser thereof.

 

12

 

8.6                               Insurance. 
To maintain, or cause to be maintained, all existing property insurance
relating to the Property.

 

8.7                               Approval of 2009 Capital Expenditure Budget.  The Seller shall prepare for the Purchaser’s
review and approval a 2009 capital expenditure budget (the “2009 CapEx
Budget”) (including, without limitation, budgeted items for “building
improvements” and “development and redevelopment”).

 

SECTION 9.                          APPORTIONMENTS.

 

9.1                               Real Property Apportionments.  (a)  The following items shall be
apportioned at the Closing as of the close of business on the day immediately
preceding the Closing Date:

 

(i)                                     annual
rents, operating costs, taxes and other fixed charges payable under the Leases;

 

(ii)                                  percentage
rents and other unfixed charges payable under the Leases;

 

(iii)                               fuel,
electric, water and other utility costs;

 

(iv)                              municipal
assessments and governmental license and permit fees;

 

(v)                                 Real estate
taxes and assessments other than special assessments, based on the rates and
assessed valuation applicable in the fiscal year for which assessed;

 

(vi)                              Water rates
and charges;

 

(vii)                           Sewer and vault taxes and rents; and

 

(viii)                        all other items of income and expense
normally apportioned in sales of property in similar situations in the
jurisdiction where the Property is located.

 

If any
of the foregoing cannot be apportioned at the Closing because of the
unavailability of the amounts which are to be apportioned, such items shall be
apportioned on the basis of a good faith estimate by the parties and reconciled
as soon as practicable after the Closing Date but, in any event, no later than
one (1) year after the Closing Date.

 

(b)                                 If there are
water, gas or electric meters located at the Property, the Seller shall obtain
readings thereof to a date 

 

13

 

not more than thirty (30) days prior to the
Closing Date and the unfixed water rates and charges, sewer taxes and rents and
gas and electricity charges, if any, based thereon for the intervening time
shall be apportioned on the basis of such last readings.  If such readings are not obtainable by the
Closing Date, then, at the Closing, any water rates and charges, sewer taxes
and rents and gas and electricity charges which are based on such readings
shall be prorated based upon the per diem charges obtained by using the most
recent period for which such readings shall then be available.  Upon the taking of subsequent actual
readings, the apportionment of such charges shall be recalculated and the
Seller or the Purchaser, as the case may be, promptly shall make a payment to
the other based upon such recalculations. 
The parties agree to make such final recalculations within sixty (60)
days after the Closing Date.

 

(c)                                  If any
refunds of real property taxes or assessments, water rates and charges or sewer
taxes and rents shall be made after the Closing, the same shall be held in
trust by the Seller or the Purchaser, as the case may be, and shall first be
applied to the unreimbursed costs incurred in obtaining the same, then to any
required refunds to tenants under the Leases, and the balance, if any, shall be
paid to the Seller (for the period prior to the Closing Date) and to the
Purchaser (for the period commencing with the Closing Date).

 

(d)                                 If, on the
Closing Date, the Property shall be or shall have been affected by any special
or general assessment or assessments or real property taxes payable in a lump
sum or which are or may become payable in installments of which the first
installment is then a charge or lien and has become payable, the Seller shall
pay or cause to be paid at the Closing the unpaid installments of such
assessments due and as of the Closing Date.

 

(e)                                  No insurance
policies of the Seller are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made.

 

(f)                                    At the
Closing, the Seller shall transfer to the Purchaser the amount of all unapplied
security deposits held pursuant to the terms of the Leases.

 

(g)                                 Brokerage
commissions, tenant improvement expenses and other amounts payable by the
Seller as landlord under Leases entered into by the Seller after the date
hereof, or in connection with the renewal or extension of any existing Lease,
shall be the responsibility of the Purchaser, and the Purchaser 

 

14

 

shall reimburse the Seller at the Closing for
all such brokerage commissions, tenant improvement expenses and other amounts
paid by the Seller prior to the Closing. 
The Purchaser shall receive a credit at Closing for all unpaid brokerage
commissions, tenant improvement expenses and other amounts payable by the
Seller as landlord under Leases entered into by the Seller prior to the date
hereof.

 

(h)                                 Amounts
payable after the date hereof on account of capital expenditures under the 2008
capital expenditure budget prepared as of March 31, 2008 (the “2008
CapEx Budget”) and the 2009 CapEx Budget (together with the 2008 CapEx
Budget, collectively, the “CapEx Budget”) (including, without
limitation, budgeted items for “building improvements” and “development and
redevelopment”), shall be the responsibility of the Purchaser, and the
Purchaser shall reimburse the Seller at the Closing for all amounts paid by the
Seller prior to the Closing on account of capital expenditures under the CapEx
Budget payable after the date hereof. 
The Purchaser shall receive a credit at Closing for all unpaid amounts
payable on account of capital expenditures under the CapEx Budget prior to the
date hereof.  A copy of the 2008 CapEx
Budget has been previously provided to the Purchaser.

 

(i)                                     If a net
amount is owed by the Seller to the Purchaser pursuant to this Section 9.1,
such amount shall be credited against the Purchase Price.  If a net amount is owed by the Purchaser to
the Seller pursuant to this Section 9.1, such amount shall be added
to the Purchase Price paid to the Seller.

 

(j)                                     If, on the
Closing Date, there are past due rents with respect to any Lease, amounts
received by the Purchaser with respect to such Lease after the Closing Date
shall be applied, first, to rents due or to become due during the
calendar month in which the Closing occurs, and then, to all other rents
due or past due in inverse order to the order in which they became due (i.e.,
first to arrearages most recently occurring, then to older arrearages).  In no event shall the Seller have any right
to take any action to collect any past due rents or other amounts following the
Closing; provided, however, the Purchaser shall use commercially
reasonable efforts to collect such past due rents and other amounts, except
that the Purchaser shall have no obligation to institute any legal action or
proceeding or otherwise enforce any of its rights and remedies under any Lease
in connection with such commercially reasonable efforts.

 

The provisions of this Section 9.1 shall survive the
Closing.

 

15

 

9.2                               Closing Costs.

 

(a)                                The
Purchaser shall pay (i) the costs of closing and diligence in connection
with the transactions contemplated hereby (including, without limitation, all
premiums, charges and fees of the Title Company in connection with the title
examination and insurance policies to be obtained by the Purchaser, including
affirmative endorsements), (ii) all documentary, stamp, sales, intangible
and other transfer taxes and fees incurred in connection with the transactions
contemplated by this Agreement and (iii) all state, city, county,
municipal and other governmental recording and filing fees and charges.

 

(b)                               Each party
shall pay the fees and expenses of its attorneys and other consultants.

 

SECTION 10.                   DAMAGE TO OR CONDEMNATION OF PROPERTY.

 

10.1                         Casualty. 
If, prior to the Closing, the Property is  materially destroyed or damaged by fire or
other casualty, the Seller shall promptly notify the Purchaser of such
fact.  In such event, the Purchaser shall
have the right to terminate this Agreement by giving notice to the Seller not
later than ten (10) days after the giving the Seller’s notice (and, if
necessary, the Closing Date shall be extended until one day after the
expiration of such ten-day period).  If
the Purchaser elects to terminate this Agreement as aforesaid, this Agreement
shall terminate and be of no further force and effect and no party shall have
any liability to the other hereunder.  If
less than a material part of the Property shall be affected by fire or other
casualty or if the Purchaser shall not elect to terminate this Agreement as
aforesaid, there shall be no abatement of the Purchase Price and the Seller
shall assign to the Purchaser at the Closing the rights of the Seller to the
proceeds, if any, under the Seller’s insurance policies covering the Property
with respect to such damage or destruction and there shall be credited against
the Purchase Price the amount of any deductible, any proceeds previously
received by Seller on account thereof and any deficiency in proceeds.

 

10.2                         Condemnation.  If, prior to the Closing, a material part of
the Property (including access or parking thereto), is taken by eminent domain
(or is the subject of a pending taking which has not yet been consummated), the
Seller shall notify the Purchaser of such fact promptly after obtaining
knowledge thereof and the Purchaser shall have the right to terminate this
Agreement by giving notice to the Seller not later than ten (10) 

 

16

 

days after the giving of the Seller’s notice (and, if necessary, the
Closing Date shall be extended until one day after the expiration of such
ten-day period).  If the Purchaser elects
to terminate this Agreement as aforesaid, this Agreement shall terminate and be
of no further force and effect and no party shall have any liability to the
other hereunder.  If less than a material
part of the Property shall be affected or if the Purchaser shall not elect to
terminate this Agreement as aforesaid, the sale of the Property shall be
consummated as herein provided without any adjustment to the Purchase Price
(except to the extent of any condemnation award received by the Seller prior to
the Closing) and the Seller shall assign to the Purchaser at the Closing all of
the Seller’s right, title and interest in and to all awards, if any, for the
taking, and the Purchaser shall be entitled to receive and keep all awards for
the taking of the Property or portion thereof.

 

10.3                         Survival.  The parties’ obligations, if any, under this Section 10
shall survive the Closing.

 

SECTION 11.                   DEFAULT.

 

11.1                         Default by the Seller. 
If the transaction herein contemplated fails to close as a result of the
default of the Seller hereunder, or the Seller having made any representation
or warranty herein which shall be untrue or misleading in any material respect,
or the Seller having failed to perform any of the material covenants and
agreements contained herein to be performed by the Seller, the Purchaser may,
as its sole remedy, either (x) terminate this Agreement or (y) pursue
a suit for specific performance.

 

11.2                         Default by the Purchaser. 
If the transaction herein contemplated fails to close as a result of the
default of the Purchaser hereunder, or the Purchaser having made any
representation or warranty herein which shall be untrue or misleading in any
material respect, or the Purchaser having failed to perform any of the
covenants and agreements contained herein to be performed by it, the Seller may
terminate this Agreement (in which case, the Purchaser shall reimburse the
Seller for all of the fees, charges, disbursements and expenses of the Seller’s
attorneys).

 

SECTION 12.                   MISCELLANEOUS.

 

12.1                         Allocation of Liability.  It is expressly understood and agreed that
the Seller shall be liable to third parties for any and all obligations,
claims, losses, damages, liabilities, 

 

17

 

and expenses to the extent arising out of events, contractual
obligations, acts, or omissions of the Seller that occurred in connection with
the ownership or operation of the Property during the period in which the
Seller owned the Property prior to the Closing and the Purchaser shall be
liable to third parties for any and all obligations, claims, losses, damages,
liabilities and expenses to the extent arising out of events, contractual
obligations, acts, or omissions of the Purchaser that occur in connection with
the ownership or operation of the Property during the period in which the
Purchaser owns the Property after the Closing. 
The provisions of this Section 12.1 shall survive the
Closing.

 

12.2                         Brokers. 
Each of the parties hereto represents to the other parties that it dealt
with no broker, finder or like agent in connection with this Agreement or the
transactions contemplated hereby.  Each
party shall indemnify and hold harmless the other party and its respective
legal representatives, heirs, successors and assigns from and against any loss,
liability or expense, including reasonable attorneys’ fees, charges and
disbursements arising out of any claim or claims for commissions or other
compensation for bringing about this Agreement or the transactions contemplated
hereby made by any other broker, finder or like agent, if such claim or claims
are based in whole or in part on dealings with the indemnifying party.  The provisions of this Section 12.2
shall survive the Closing.

 

12.3                         Publicity. 
The parties agree that, except as otherwise required by law and except
for the exercise of any remedy hereunder, no party shall, with respect to this
Agreement and the transactions contemplated hereby, contact or conduct
negotiations with public officials, make any public pronouncements, issue press
releases or otherwise furnish information regarding this Agreement or the
transactions contemplated to any third party without the consent of the other
party, which consent shall not be unreasonably withheld, conditioned or
delayed.

 

12.4                         Notices.  (a) 
Any and all notices, demands, consents, approvals, offers, elections and other
communications required or permitted under this Agreement shall be deemed
adequately given if in writing and the same shall be delivered either in hand,
by telecopier with confirmed receipt, or by mail or Federal Express or similar
expedited commercial carrier, addressed to the recipient of the notice,
postpaid and registered or certified with return receipt requested (if by

 

18

 

mail),
or with all freight charges prepaid (if by Federal Express or similar carrier).

 

(b)                               All notices
required or permitted to be sent hereunder shall be deemed to have been given
for all purposes of this Agreement upon the date of acknowledged receipt, in
the case of a notice by telecopier, and, in all other cases, upon the date of
receipt or refusal, except that whenever under this Agreement a notice is
either received on a day which is not a Business Day or is required to be
delivered on or before a specific day which is not a Business Day, the day of
receipt or required delivery shall automatically be extended to the next
Business Day.

 

(c)                                All such
notices shall be addressed,

 

if to
the Seller, to:

 

Hub Properties Trust

c/o HRPT Properties Trust

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. John C. Popeo

[Telecopier No. (617) 928-1305]

 

with a
copy to:

 

Skadden, Arps, Slate, Meagher & Flom
LLP

300 South Grand Avenue, 34th Floor

Los Angeles, California 90071

Attn:  Meryl K. Chae, Esq.

[Telecopier No. (213) 621-5035]

 

if to
the Purchaser, to:

 

Senior Housing Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn:  Mr. David J. Hegarty

[Telecopier No. (617) 796-8349]

 

with a
copy to:

 

Sullivan & Worcester LLP

One Post Office Square

Boston, Massachusetts  02109

Attn:  Nancy S. Grodberg, Esq.

[Telecopier No. (617) 338-2880]

 

19

 

(d)                               By notice
given as herein provided, the parties hereto and their respective successor and
assigns shall have the right from time to time and at any time during the term
of this Agreement to change their respective addresses effective upon receipt
by the other parties of such notice and each shall have the right to specify as
its address any other address within the United States of America.

 

12.5                         Waivers, Etc.  Subject to the terms of the last paragraph of
Section 6, any waiver of any term or condition of this Agreement,
or of the breach of any covenant, representation or warranty contained herein,
in any one instance, shall not operate as or be deemed to be or construed as a
further or continuing waiver of any other breach of such term, condition,
covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to
enforce or require performance of any provision hereof operate as a waiver of
or affect in any manner such party’s right at a later time to enforce or
require performance of such provision or any other provision hereof.  This Agreement may not be amended, nor shall
any waiver, change, modification, consent or discharge be effected, except by
an instrument in writing executed by or on behalf of the party against whom
enforcement of any amendment, waiver, change, modification, consent or
discharge is sought.

 

12.6                         Assignment; Successors and Assigns.  Subject to Section 12.15, this
Agreement and all rights and obligations hereunder shall not be assignable,
directly or indirectly, by any party without the written consent of the other,
except that the Purchaser may assign this Agreement to any entity wholly owned,
directly or indirectly, by the Purchaser; provided, however,
that, in the event this Agreement shall be assigned to any one or more entities
wholly owned, directly or indirectly, by the Purchaser, the Purchaser named
herein shall remain liable for the obligations of the “Purchaser”
hereunder.  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective legal representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

12.7                         Severability. 
If any provision of this Agreement shall be held or deemed to be, or
shall in fact be, invalid, inoperative or unenforceable as applied to any
particular case in any jurisdiction or jurisdictions, or in all jurisdictions
or in all cases, because of the conflict of any provision with any 

 

20

 

constitution or statute or rule of public policy or for any other
reason, such circumstance shall not have the effect of rendering the provision
or provisions in question invalid, inoperative or unenforceable in any other jurisdiction
or in any other case or circumstance or of rendering any other provision or
provisions herein contained invalid, inoperative or unenforceable to the extent
that such other provisions are not themselves actually in conflict with such
constitution, statute or rule of public policy, but this Agreement shall
be reformed and construed in any such jurisdiction or case as if such invalid,
inoperative or unenforceable provision had never been contained herein and such
provision reformed so that it would be valid, operative and enforceable to the
maximum extent permitted in such jurisdiction or in such case.

 

12.8                         Counterparts, Etc. 
This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
This Agreement constitutes the entire agreement of the parties hereto
with respect to the subject matter hereof and shall supersede and take the
place of any other instruments purporting to be an agreement of the parties
hereto relating to the subject matter hereof.

 

12.9                         Performance on Business Days.  In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a
Business Day, the time for payment or performance shall automatically be
extended to the first Business Day following such date.

 

12.10                   Attorneys’ Fees. 
If any lawsuit or arbitration or other legal proceeding arises in
connection with the interpretation or enforcement of this Agreement, the
prevailing party therein shall be entitled to receive from the other party the
prevailing party’s costs and expenses, including reasonable attorneys’ fees
incurred in connection therewith, in preparation therefor and on appeal
therefrom, which amounts shall be included in any judgment therein.

 

12.11                   Section and Other Headings.  The headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

 

12.12                   Time of Essence. 
Time shall be of the essence with respect to the performance of each and
every covenant and obligation, and the giving of all notices, under this
Agreement.

 

21

 

12.13                   Governing Law. 
This Agreement shall be interpreted, construed, applied and enforced in
accordance with the laws of The Commonwealth of Massachusetts.

 

12.14                   Arbitration. 
Any party hereto may elect to submit any dispute hereunder that has an
amount in controversy in excess of $250,000 to arbitration hereunder.  Any such arbitration shall be conducted in
Boston, Massachusetts in accordance with the Commercial Arbitration Rules of
the American Arbitration Association then pertaining and the decision of the
arbitrators with respect to such dispute shall be binding, final and conclusive
on the parties.

 

In the
event any party hereto shall elect to submit any such dispute to arbitration
hereunder, the Seller and the Purchaser shall each appoint and pay all fees of
a fit and impartial person as arbitrator with at least ten (10) years’
recent professional experience in the general subject matter of the
dispute.  Notice of such appointment
shall be sent in writing by each party to the other, and the arbitrators so
appointed, in the event of their failure to agree within thirty (30) days after
the appointment of the second arbitrator upon the matter so submitted, shall
appoint a third arbitrator.  If either
the Seller or the Purchaser shall fail to appoint an arbitrator, as aforesaid,
for a period of ten (10) days after written notice from the other party to
make such appointment, then the arbitrator appointed by the party having made
such appointment shall appoint a second arbitrator and the two (2) so
appointed shall, in the event of their failure to agree upon any decision
within thirty (30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the expenses
incident to the proceedings shall be borne equally between the Seller and the
Purchaser, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for by the
parties, shall be paid by the respective party engaging such counsel or calling
or engaging such witnesses.

 

The
decision of the arbitrators shall be rendered within thirty (30) days after
appointment of the third arbitrator. 
Such decision shall be in writing and in duplicate, one 

 

22

 

counterpart thereof to be delivered to the Seller and one to the
Purchaser.  A judgment of a court of
competent jurisdiction may be entered upon the award of the arbitrators in
accordance with the rules and statutes applicable thereto then obtaining.

 

12.15                   Like Kind Exchange.  At either party’s request, the
non-requesting party will take all actions reasonably requested by the
requesting party in order to effectuate all or any part of the transactions
contemplated by this Agreement as a forward or reverse like-kind exchange for
the benefit of the requesting party in accordance with Section 1031 of the
Internal Revenue Code and, in the case of a reverse exchange, Rev. Proc.
2000-37, including executing an instrument acknowledging and consenting to any
assignment by the requesting party of its rights hereunder to a qualified
intermediary or an exchange accommodation titleholder.  In furtherance of the foregoing and notwithstanding
anything contained in this Agreement to the contrary, the requesting party may
assign its rights under this Agreement to a “qualified intermediary” or an “exchange
accommodation titleholder” in order to facilitate, at no cost or expense to the
other, a forward or reverse like-kind exchange under Section 1031 of the
Internal Revenue Code; provided, however, that such assignment
will not relieve the requesting party of any of its obligations hereunder.  The non-requesting party will also agree to
issue all closing documents, including the deed, to the applicable qualified
intermediary or exchange accommodation titleholder if so directed by the
requesting party prior to Closing. 
Notwithstanding the foregoing, in no event shall the non-requesting
party incur or be subject to any liability that is not otherwise provided for
in this Agreement.

 

12.16                   Recording.  This Agreement may not be recorded without
the prior written consent of both parties.

 

12.17                   Non-liability of Trustees of Seller.  The Declaration of Trust of Hub Properties
Trust, a copy of which is duly filed with the Department of Assessments and
Taxation of the State of Maryland, provides that the name “Hub Properties Trust”
refers to the trustees under such Declaration of Trust collectively as trustees,
but not individually or personally, and that no trustee, officer, shareholder,
employee or agent of Hub Properties Trust shall be held to any personal
liability, jointly or severally, for any obligation or, or claim against, Hub
Properties Trust.  All persons dealing
with the Seller, in any way shall look only to the assets of the Seller for the
payment of any sum or the performance of any obligation.

 

23

 

12.18                   Non-liability of Trustees of Purchaser.  The Declaration of Trust of Senior Housing
Properties Trust, a copy of which is duly filed with the Department of
Assessments and Taxation of the State of Maryland, provides that the name “Senior
Housing Properties Trust” refers to the trustees under such Declaration of
Trust collectively as trustees, but not individually or personally, and that no
trustee, officer, shareholder, employee or agent of Senior Housing Properties
Trust shall be held to any personal liability, jointly or severally, for any obligation
or, or claim against, Senior Housing Properties Trust.  All persons dealing with the Purchaser, in
any way shall look only to the assets of the Purchaser for the payment of any
sum or the performance of any obligation.

 

12.19                   Waiver and Further Assurances.  The Purchaser hereby acknowledges that it is
a sophisticated purchaser of real properties and that it is aware of all
disclosures the Seller is or may be required to provide to the Purchaser in
connection with the transactions contemplated hereby pursuant to any law, rule or
regulation (including those of Massachusetts and those of the state in which
the Property is located).   The Purchaser
hereby acknowledges that, prior to the execution of this Agreement, the
Purchaser has had access to all information necessary to acquire the Property
and the Purchaser acknowledges that the Seller has fully and completely
fulfilled any and all disclosure obligations with respect thereto.  The Purchaser hereby fully and completely
discharges the Seller from any further disclosure obligations whatsoever
relating to the Property.  In addition to
the actions recited herein and contemplated to be performed, executed, and/or
delivered by the Seller and the Purchaser, the Seller and the Purchaser agree
to perform, execute and/or deliver or cause to be performed, executed and/or
delivered at the Closing or after the Closing any and all such further acts,
instruments, deeds and assurances as may be reasonably required to establish,
confirm or otherwise evidence the Seller’s satisfaction of any disclosure
obligations or to otherwise consummate the transactions contemplated hereby.

 

12.20                   State Specific Provisions. 
The provisions set forth in Schedule D hereto are
hereby incorporated herein by reference as if fully set forth herein.

 

[Signature page follows.]

 

24

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed as a sealed instrument as of
the date first above written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  HUB PROPERTIES TRUST, a

  
	
   

  	
  Maryland real estate investment trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  SENIOR HOUSING PROPERTIES TRUST, a

  
	
   

  	
  Maryland real estate investment trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Hegarty

  
	
   

  	
   

  	
  David J. Hegarty

  
	
   

  	
   

  	
  President

  

 

25

 

SCHEDULE A

 

Land

 

 

SCHEDULE B

 

Rent Roll

 

 

SCHEDULE C

 

Form of
Deed

 

 

SCHEDULE D

 

State Specific
Provisions

 

Certain Schedules to this
agreement have been omitted. The Company agrees to furnish supplementally
copies of any of the omitted Schedules to the Securities and Exchange
Commission upon request.Exhibit 10.12

 

701
George Washington Highway

Lincoln, RI

 

PURCHASE AND SALE AGREEMENT

 

by and between

 

HUB RI PROPERTIES TRUST,

 

as Seller,

 

and

 

SENIOR HOUSING PROPERTIES TRUST,

 

as Purchaser

 

 

May 5, 2008

 

 

TABLE OF CONTENTS

 

	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  
	
  1.1.

  	
  Agreement

  	
  1

  
	
  1.2.

  	
  Business Day

  	
  1

  
	
  1.3.

  	
  Closing

  	
  1

  
	
  1.4.

  	
  Closing Date

  	
  1

  
	
  1.5.

  	
  Existing Survey

  	
  1

  
	
  1.6.

  	
  Existing Title Policy

  	
  2

  
	
  1.7.

  	
  Improvements

  	
  2

  
	
  1.8.

  	
  Land

  	
  2

  
	
  1.9.

  	
  Leases

  	
  2

  
	
  1.10.

  	
  Other Property

  	
  2

  
	
  1.11.

  	
  Permitted Exceptions

  	
  2

  
	
  1.12.

  	
  Property

  	
  2

  
	
  1.13.

  	
  Purchase Price

  	
  2

  
	
  1.14.

  	
  Purchaser

  	
  3

  
	
  1.15.

  	
  Rent Roll

  	
  3

  
	
  1.16.

  	
  Seller

  	
  3

  
	
  1.17.

  	
  Title Company

  	
  3

  
	
  1.18.

  	
  Update

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  PURCHASE AND SALE; CLOSING.

  	
  3

  
	
  2.1.

  	
  Purchase and Sale.

  	
  3

  
	
  2.2.

  	
  Closing.

  	
  3

  
	
  2.3.

  	
  Purchase Price.

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  TITLE, DILIGENCE MATERIALS, ETC.

  	
  4

  
	
  3.1.

  	
  Title.

  	
  4

  
	
  3.2.

  	
  No Other Diligence.

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CONDITIONS TO THE PURCHASER’S OBLIGATION TO CLOSE.

  	
  5

  
	
  4.1.

  	
  Closing Documents.

  	
  5

  
	
  4.2.

  	
  Financing.

  	
  6

  
	
  4.3.

  	
  Title Policy.

  	
  6

  
	
  4.4.

  	
  Environmental Reliance Letters.

  	
  6

  
	
  4.5.

  	
  Condition of Property.

  	
  7

  
	
  4.6.

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  CONDITIONS TO SELLER’S OBLIGATION TO CLOSE.

  	
  7

  
	
  5.1.

  	
  Purchase Price.

  	
  7

  
	
  5.2.

  	
  Closing Documents.

  	
  7

  
	
  5.3.

  	
  Other Conditions.

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  REPRESENTATIONS AND WARRANTIES OF SELLER.

  	
  7

  
	
  6.1.

  	
  Status and Authority of the
  Seller, Etc.

  	
  7

  
	
  6.2.

  	
  Action of the Seller, Etc.

  	
  8

  
	
  6.3.

  	
  No Violations of Agreements.

  	
  8

  
	
  6.4.

  	
  Litigation.

  	
  8

  
	
  6.5.

  	
  Existing Leases, Etc.

  	
  8

  
	
  6.6.

  	
  Agreements, Etc.

  	
  9

  
	
  6.7.

  	
  Not a Foreign Person.

  	
  10

  

 

i

 

	
  SECTION 7.

  	
  REPRESENTATIONS AND WARRANTIES OF PURCHASER.

  	
  11

  
	
  7.1.

  	
  Status and Authority of the
  Purchaser.

  	
  11

  
	
  7.2.

  	
  Action of the Purchaser.

  	
  11

  
	
  7.3.

  	
  No Violations of Agreements.

  	
  11

  
	
  7.4.

  	
  Litigation.

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  COVENANTS OF THE SELLER.

  	
  12

  
	
  8.1.

  	
  Approval of Agreements.

  	
  12

  
	
  8.2.

  	
  Operation of Property.

  	
  12

  
	
  8.3.

  	
  Compliance with Laws, Etc.

  	
  12

  
	
  8.4.

  	
  Compliance with Agreements.

  	
  12

  
	
  8.5.

  	
  Notice of Material Changes or
  Untrue Representations.

  	
  12

  
	
  8.6.

  	
  Insurance.

  	
  13

  
	
  8.7.

  	
  Approval of 2009 Capital Expenditure
  Budget.

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  APPORTIONMENTS.

  	
  13

  
	
  9.1.

  	
  Real Property Apportionments.

  	
  13

  
	
  9.2.

  	
  Closing Costs.

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  DAMAGE TO OR CONDEMNATION OF PROPERTY.

  	
  16

  
	
  10.1.

  	
  Casualty.

  	
  16

  
	
  10.2.

  	
  Condemnation.

  	
  17

  
	
  10.3.

  	
  Survival.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  DEFAULT.

  	
  17

  
	
  11.1.

  	
  Default by the Seller.

  	
  17

  
	
  11.2.

  	
  Default by the Purchaser.

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  MISCELLANEOUS.

  	
  18

  
	
  12.1.

  	
  Allocation of Liability.

  	
  18

  
	
  12.2.

  	
  Brokers.

  	
  18

  
	
  12.3.

  	
  Publicity.

  	
  18

  
	
  12.4.

  	
  Notices.

  	
  19

  
	
  12.5.

  	
  Waivers, Etc.

  	
  20

  
	
  12.6.

  	
  Assignment; Successors and
  Assigns.

  	
  20

  
	
  12.7.

  	
  Severability.

  	
  21

  
	
  12.8.

  	
  Counterparts, Etc.

  	
  21

  
	
  12.9.

  	
  Performance on Business Days.

  	
  21

  
	
  12.10.

  	
  Attorneys’ Fees.

  	
  21

  
	
  12.11.

  	
  Section and Other Headings.

  	
  22

  
	
  12.12.

  	
  Time of Essence.

  	
  22

  
	
  12.13.

  	
  Governing Law.

  	
  22

  
	
  12.14.

  	
  Arbitration.

  	
  22

  
	
  12.15.

  	
  Like Kind Exchange.

  	
  23

  
	
  12.16.

  	
  Recording.

  	
  24

  
	
  12.17.

  	
  Non-liability of Trustees of
  Seller.

  	
  24

  
	
  12.18.

  	
  Non-liability of Trustees of
  Purchaser.

  	
  24

  
	
  12.19.

  	
  Waiver and Further Assurances.

  	
  24

  

 

ii

 

PURCHASE AND SALE AGREEMENT

 

THIS PURCHASE AND SALE AGREEMENT is made as of
May 5, 2008, by and between HUB RI
PROPERTIES TRUST, a Maryland real estate investment trust (the “Seller”),
and SENIOR HOUSING PROPERTIES TRUST, a
Maryland real estate investment trust (the “Purchaser”).

 

WITNESSETH:

 

WHEREAS, the Seller is the owner of the
Property (this and other capitalized terms used and not otherwise defined
herein shall have the meanings given such terms in Section 1); and

 

WHEREAS, the Seller wishes to sell to the
Purchaser, and the Purchaser desires to purchase from the Seller, the Property,
subject to and upon the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in consideration of the mutual
covenants herein contained and other good and valuable consideration, the
mutual receipt and legal sufficiency of which are hereby acknowledged, the
Seller and the Purchaser hereby agree as follows:

 

SECTION 1.                          DEFINITIONS.

 

Capitalized
terms used in this Agreement shall have the meanings set forth below or in the
section of this Agreement referred to below:

 

1.1.                              “Agreement”  shall mean this Purchase and Sale Agreement,
together with any exhibits and schedules attached hereto, as it and they may be
amended from time to time as herein provided.

 

1.2.                              “Business Day”  shall mean any day other than a Saturday,
Sunday or any other day on which banking institutions in The Commonwealth of
Massachusetts are authorized by law or executive action to close.

 

1.3.                              “Closing”  shall have the meaning given such term in Section 2.2.

 

1.4.                              “Closing Date”  shall have the meaning given such term in Section 2.2.

 

1.5.                              “Existing Survey”  shall mean the existing ALTA
survey of the Property.

 

 

1.6.                              “Existing Title Policy”  shall mean, the
existing title insurance policy for the Property.

 

1.7.                              “Improvements”  shall mean, the Seller’s entire
right, title and interest in and to the existing office buildings, fixtures and
other structures and improvements situated on, or affixed to, the Land.

 

1.8.                              “Land”  shall mean, the Seller’s entire right, title
and interest in and to (a) the parcel(s) of land described in Schedule
A hereto, together with (b) all easements, rights of way, privileges,
licenses and appurtenances which the Seller may own with respect thereto.

 

1.9.                              “Leases”  shall mean the leases identified in the Rent
Roll and any other leases hereafter entered into in accordance with the terms
of this Agreement.

 

1.10.                        “Other Property”  shall mean the Seller’s entire
right, title and interest in and to (a) all fixtures, machinery, systems,
equipment and items of personal property owned by the Seller and attached or
appurtenant to, located on and used in connection with the ownership, use,
operation or maintenance of the Land or Improvements, if any, and (b) all
intangible property owned by the Seller arising from or used in connection with
the ownership, use, operation or maintenance of the Land or Improvements, if
any.

 

1.11.                        “Permitted Exceptions”  shall mean, collectively, (a) liens for
taxes, assessments and governmental charges not yet due and payable or due and
payable but not yet delinquent; (b) the Leases; (c) the exceptions to
title set forth in the Existing Title Policy; (d) all matters shown on the
Existing Survey, and (e) such other nonmonetary encumbrances with respect
to the Property as may be shown on the Update which are not objected to by the
Purchaser (or which are objected to, and subsequently waived, by the Purchaser)
in accordance with Section 3.1.

 

1.12.                        “Property”  shall mean, collectively, all of the Land,
the Improvements and the Other Property.

 

1.13.                        “Purchase Price”  shall mean Twelve Million Three Hundred
Thirty-Six Thousand Four Hundred Forty-One Dollars ($12,336,441).

 

2

 

1.14.                        “Purchaser”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.15.                        “Rent Roll”  shall mean Schedule B to this
Agreement.

 

1.16.                        “Seller”  shall have the meaning given such term in the
preambles to this Agreement, together with any permitted successors and
assigns.

 

1.17.                        “Title Company”  shall mean Lawyers Title Insurance
Corporation.

 

1.18.                        “Update”  shall have the meaning given such
term in Section 3.1.

 

SECTION 2.                          PURCHASE AND SALE; CLOSING.

 

2.1.                              Purchase and Sale.  In consideration of the payment of the
Purchase Price by the Purchaser to the Seller and for other good and valuable
consideration, the Seller hereby agrees to sell to the Purchaser, and the
Purchaser hereby agrees to purchase from the Seller, the Property for the
Purchase Price, subject to and in accordance with the terms and conditions of
this Agreement.

 

2.2.                              Closing.  The purchase and sale of the Property shall
be consummated at a closing (the “Closing”) to be held at the offices of
Sullivan & Worcester LLP, One Post Office Square, Boston,
Massachusetts, or at such other location as the Seller and the Purchaser may
agree, at 10:00 a.m., local time, on March 20, 2009, as the same may
be accelerated pursuant to this Section 2.2 (the “Closing Date”).

 

Notwithstanding
the foregoing, either party may accelerate the Closing Date by giving not less
than ten (10) Business Days prior written notice (an “Acceleration
Notice”) to the other, in which event the Closing Date shall be the date
set forth in such Acceleration Notice unless the party receiving the
Acceleration Notice gives written notice objecting to the accelerated date set
forth in the Acceleration Notice (a “Rejection Notice”) to the other
within five (5) Business Days after its receipt of the Acceleration
Notice, in which event, the Closing Date shall not be accelerated but shall
occur as set forth in the preceding paragraph; provided, however,
that the Seller shall have the right to give a Rejection Notice only if the
acceleration of the Closing Date will adversely effect the Seller’s ability to 

 

3

 

conclude a like kind exchange
pursuant to Section 12.15, and the Purchaser shall have the right
to give a Rejection Notice only if the Purchaser is unable to satisfy the
condition in Section 4.2 prior to such accelerated Closing Date.

 

2.3.                              Purchase
Price.

 

(a)                                  At
Closing, the Purchaser shall pay the Purchase Price to the Seller, subject to
the following adjustments:

 

(i)                                                   There
shall be added to, or deducted from, the Purchase Price such amounts as may be
required by  Article 9.

 

(b)                                 The Purchase Price, as
adjusted as provided herein, shall be payable by wire transfer of immediately
available funds on the Closing Date to an account or accounts to be designated
by the Seller.

 

SECTION 3.                                              TITLE, DILIGENCE MATERIALS, ETC.

 

3.1.                              Title.  Prior to the execution of this Agreement, the
Seller has delivered the Existing Title Policy and the Existing Survey to the
Purchaser.

 

Within ten (10) days
after the execution hereof, the Purchaser shall order an update to the Existing
Title Policy (an “Update”) from the Title Company.  The Purchaser shall deliver to the Seller a
copy of the Update promptly upon receipt thereof.  Promptly after receipt of the Update, but, in
any event, prior to the Closing Date, the Purchaser shall give the Seller
written notice of any title exceptions (other than Permitted Exceptions) set
forth on the Update as to which the Purchaser objects.  The Seller shall have the right, but not the
obligation, to attempt to remove, satisfy or otherwise cure any exceptions to
title to which the Purchaser so objects. 
If, for any reason, in its sole discretion, the Seller is unable or
unwilling to take such actions as may be required to cause such exceptions to
be removed from the Update, the Seller shall give the Purchaser notice thereof;
it being understood and agreed that the failure of the Seller to give prompt
notice of objection shall be deemed an election by the Seller not to remedy
such matters.  If the Seller shall be
unable or unwilling to remove any title defects to which the Purchaser has so
objected, the Purchaser may elect (i) to terminate this Agreement or (ii) to
consummate the transactions contemplated hereby, notwithstanding such title
defect, without any abatement or reduction in the Purchase Price on account
thereof (whereupon 

 

4

 

such objected to exceptions or
matters shall be deemed to be Permitted Exceptions).  The Purchaser shall make any such election by
written notice to the  Seller given on or
prior to the fifth (5th) Business Day after the Seller’s notice of
its unwillingness or inability to cure (or deemed election not to cure) such
defect and time shall be of the essence with respect to the giving of such
notice.  Failure of the Purchaser to give
such notice shall be deemed an election by the Purchaser to proceed in
accordance with clause (ii) above.

 

3.2.                              No Other Diligence.  The Purchaser acknowledges that, except
as provided in Section 3.1, (i) the Purchaser has had the
opportunity to fully investigate and inspect the physical and environmental
condition of the Property, and to review and analyze all title examinations,
surveys, environmental assessment reports, building evaluations, financial data
and other investigations and materials pertaining to the Property which the
Purchaser deems necessary to determine the feasibility of the Property and its
decision to acquire the Property, (ii) the Purchaser shall not be
conducting any further title examinations, surveys, environmental assessments,
building evaluations, financial analyses or other investigations with respect
to the Property, and (iii) the Purchaser shall not have any right to
terminate this Agreement as a result of any title examinations, surveys,
environmental assessments, building valuations, financial analyses or other
investigations with respect to the Property.

 

SECTION 4.                          CONDITIONS TO THE PURCHASER’S OBLIGATION TO
CLOSE.

 

The obligation
of the Purchaser to acquire the Property shall be subject to the satisfaction
of the following conditions precedent on and as of the Closing Date:

 

4.1.                              Closing Documents.  The Seller shall have delivered, or cause to
have been delivered, to the Purchaser the following:

 

(a)                                  A
good and sufficient deed in the form attached as Schedule C hereto, with
respect to the Property, in proper statutory form for recording, duly executed
and acknowledged by the Seller, conveying title to the Property, free from all
liens and encumbrances other than the Permitted Exceptions;

 

(b)                                 An
assignment by the Seller and an assumption by the Purchaser, in form and
substance reasonably satisfactory to the Seller and the Purchaser, duly
executed and acknowledged by the Seller and the Purchaser, of all of the Seller’s
right, title 

 

5

 

and interest in, to and under
the Leases and all of the Seller’s right, title and interest, if any, in, to
and under all transferable licenses, contracts, permits and agreements affecting
the Property;

 

(c)                                  A bill of sale by the
Seller, without warranty of any kind, in form and substance reasonably
satisfactory to the Seller and the Purchaser, with respect to any personal
property owned by the Seller, situated at the Property and used exclusively by
the Seller in connection with the Property (it being understood and agreed that
no portion of the Purchase Price is allocated to personal property);

 

(d)                                 To
the extent the same are in the Seller’s possession, original, fully executed
copies of all material documents and agreements, plans and specifications and
contracts, licenses and permits pertaining to the Property;

 

(e)                                  To
the extent the same are in the Seller’s possession, duly executed original
copies of the Leases;

 

(f)                                    A
closing statement showing the Purchase Price, apportionments and fees, and
costs and expenses paid in connection with the Closing; and

 

(g)                                 Such
other conveyance documents, certificates, deeds and other instruments as the
Purchaser, the Seller or the Title Company may reasonably require and as are
customary in like transactions in sales of property in similar transactions.

 

4.2.                              Financing.  The Purchaser shall have, in addition to
funds available to the Purchaser on date of this Agreement, secured sufficient
additional funds, whether by means of capital market transactions, bank
financings or otherwise, to consummate the transactions contemplated hereby.

 

4.3.                              Title Policy.  The Title Company shall be prepared to
issue, upon payment of the title premium at its regular rates, a title policy
in the amount of the Purchase Price, insuring title to the Property is vested
in the Purchaser or its designee or assignee, subject only to the Permitted
Exceptions, with such endorsements as shall be reasonably required by the
Purchaser.

 

4.4.                              Environmental Reliance Letters.  The Purchaser shall have received a reliance letter, authorizing the Purchaser and
its designees and assignees to rely on the most recent 

 

6

 

environmental
assessment report prepared for the Property, in form and substance reasonably
acceptable to the Purchaser.

 

4.5.                              Condition of Property.  The Property shall be in substantially
the same physical condition as on the date of this Agreement, ordinary wear and
tear and, subject to Section 10.1, casualty excepted.

 

4.6.                              Other Conditions.  All representations and warranties of the
Seller herein shall be true, correct and complete in all material respects on
and as of the Closing Date and the Seller shall have performed in all material
respects all covenants and obligations required to be performed by the Seller
on or before the Closing Date.

 

SECTION 5.                          CONDITIONS TO SELLER’S OBLIGATION TO CLOSE.

 

The obligation
of the Seller to convey the Property to the Purchaser is subject to the
satisfaction of the following conditions precedent on and as of the Closing
Date:

 

5.1.                              Purchase Price.  The Purchaser shall deliver to the Seller the
Purchase Price payable hereunder, subject to the adjustments set forth in Section 2.3,
together with any closing costs to be paid by the Purchaser under Section 9.2.

 

5.2.                              Closing
Documents.  The Purchaser
shall have delivered to the Seller duly executed and acknowledged counterparts
of the documents described in Section 4.1, where applicable.

 

5.3.                              Other Conditions.  All representations and warranties of the
Purchaser herein shall be true, correct and complete in all material respects
on and as of the Closing Date and the Purchaser shall have performed in all
material respects all covenants and obligations required to be performed by the
Purchaser on or before the Closing Date.

 

SECTION 6.                          REPRESENTATIONS AND WARRANTIES OF SELLER.

 

To induce the
Purchaser to enter into this Agreement, the Seller represents and warrants to
the Purchaser as follows:

 

6.1.                              Status and Authority of the Seller, Etc.  The Seller is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to 

 

7

 

enter into and perform its
obligations under this Agreement and to consummate the transactions
contemplated hereby.

 

6.2.                              Action of the Seller, Etc.  The Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon
the execution and delivery of any document to be delivered by the Seller on or
prior to the Closing Date, this Agreement and such document shall constitute
the valid and binding obligation and agreement of the Seller, enforceable
against the Seller in accordance with its terms, except as enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws of general application affecting the rights and remedies of creditors.

 

6.3.                              No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by the Seller, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon the Property pursuant to the
terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness
or any other agreement or instrument by which the Seller is bound.

 

6.4.                              Litigation.  To the Seller’s actual knowledge, it has not
received written notice that any investigation, action or proceeding is pending
or threatened, which (i) questions the validity of this Agreement or any
action taken or to be taken pursuant hereto, or (ii) involves condemnation
or eminent domain proceedings against the Property or any portion thereof.

 

6.5.                              Existing Leases, Etc.  Subject to Section 8.1, other
than the Leases listed in the Rent Roll, the Seller has not entered into a
contract or agreement with respect to the occupancy of the Property that will
be binding on the Purchaser after the Closing. 
To the Seller’s actual knowledge: (a) the copies of the Leases
heretofore delivered by the Seller to the Purchaser are true, correct and
complete copies thereof; and (b) such Leases have not been amended except
as evidenced by amendments similarly delivered and constitute the entire
agreement between the Seller and the tenants thereunder.  Except as otherwise set forth in the Rent
Roll or the Leases: (i) to the Seller’ actual knowledge, each of its
Leases is in full force and effect on the terms set forth therein; (ii) to
the Seller’s actual knowledge, there are no uncured defaults or circumstances
which with the giving of notice, the passage of time or both would constitute a
default thereunder which would

 

8

 

have a material adverse effect
on the business or operations of the Property; (iii) to the Seller’s
actual knowledge, each of its tenants is legally required to pay all sums and
perform all material obligations set forth therein without any ongoing concessions,
abatements, offsets, defenses or other basis for relief or adjustment; (iv) to
the Seller’s actual knowledge, none of its tenants has asserted in writing or
has any defense to, offsets or claims against, rent payable by it or the
performance of its other obligations under its Lease which would have a
material adverse effect on the on-going business or operations of the Property;
(v) the Seller has no outstanding obligation to provide any of its tenants
with an allowance to perform, or to perform at its own expense, any tenant
improvements; (vi) none of its tenants has prepaid any rent or other
charges relating to the post-Closing period; (vii) to the Seller’s actual
knowledge, none of its tenants has filed a petition in bankruptcy or for the
approval of a plan of reorganization or management under the Federal Bankruptcy
Code or under any other similar state law, or made an admission in writing as
to the relief therein provided, or otherwise become the subject of any
proceeding under any federal or state bankruptcy or insolvency law, or has
admitted in writing its inability to pay its debts as they become due or made
an assignment for the benefit of creditors, or has petitioned for the
appointment of or has had appointed a receiver, trustee or custodian for any of
its property, in any case that would have a material adverse effect on the
business or operations of the Property; (viii) to the Seller’s actual
knowledge, none of its tenants has requested in writing a modification of its
Lease, or a release of its obligations under its Lease in any material respect
or has given written notice terminating its Lease, or has been released of its
obligations thereunder in any material respect prior to the normal expiration
of the term thereof, in any case that would have a material adverse effect on
the on-going business or operations of the Property; (ix) to the Seller’s
actual knowledge, except as set forth in the Leases, no guarantor has been
released or discharged, voluntarily or involuntarily, or by operation of law,
from any obligation under or in connection with any of its Leases or any
transaction related thereto; and (x) all brokerage commissions currently
due and payable with respect to each of its Leases have been paid.  To the Seller’s actual knowledge, the other
information set forth in the Rent Roll is true, correct and complete in all
material respects.

 

6.6.                              Agreements, Etc.  Other than the Leases, the Seller has not
entered into any contract or agreement with respect to 

 

9

 

the Property which will be
binding on the Purchaser after the Closing other than contracts and agreements
being assumed by the Purchaser or which are terminable upon thirty (30) days
notice without payment of premium or penalty.

 

6.7.                              Not a Foreign Person.  The Seller is not a “foreign person” within
the meaning of Section 1445 of the United States Revenue Code of 1986, as
amended, and the regulations promulgated thereunder.

 

The
representations and warranties made in this Agreement by the Seller shall be
continuing and shall be deemed remade by the Seller as of the Closing Date,
with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Seller shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Purchaser gives the Seller written notice prior to the expiration of said
three hundred sixty (360) day period of such alleged breach with reasonable
detail as to the nature of such breach.

 

Except as
otherwise expressly provided in this Agreement or in any documents to be
delivered to the Purchaser at the Closing, the Seller has not made, and the
Purchaser has not relied on, any information, promise, representation or
warranty, express or implied, regarding the Property, whether made by the
Seller, on the Seller’s behalf or otherwise, including, without limitation, the
physical condition of the Property, the financial condition of the tenants
under the Leases, title to or the boundaries of the Property, pest control
matters, soil conditions, the presence, existence or absence of hazardous
wastes, toxic substances or other environmental matters, compliance with
building, health, safety, land use and zoning laws, regulations and orders,
structural and other engineering characteristics, traffic patterns, market
data, economic conditions or projections, and any other information pertaining
to the Property or the market and physical environments in which they are
located.  The Purchaser acknowledges that
(i) the Purchaser has entered into this Agreement with the intention of
relying upon its own investigation or that of third parties with respect to the
physical, environmental, economic and legal condition of the Property and (ii) the
Purchaser is not relying upon any statements, representations or warranties of
any kind, other than those specifically set forth in this Agreement or in any
document to be delivered to the Purchaser at the Closing, made (or purported to
be made) by the Seller or anyone acting or 

 

10

 

claiming to act on the Seller’s
behalf.  The Purchaser has inspected the
Property and is fully familiar with the physical condition thereof and shall
purchase the Property in its “as is”, “where is” and “with all faults”
condition on the Closing Date. 
Notwithstanding anything to the contrary contained herein, in the event
that any party hereto has actual knowledge of the default of any other party (a
“Known Default”), but nonetheless elects to consummate the transactions
contemplated hereby and proceeds to Closing, then the rights and remedies of
such non-defaulting party shall be waived with respect to such Known Default
upon the Closing and the defaulting party shall have no liability with respect
thereto.

 

SECTION 7.                            REPRESENTATIONS
AND WARRANTIES OF PURCHASER.

 

To induce the
Seller to enter into this Agreement, the Purchaser represents and warrants to
the Seller as follows:

 

7.1.                              Status and Authority of the Purchaser.  The Purchaser is duly organized, validly
existing and in good standing under the laws of its state of organization or
formation, and has all requisite power and authority under its charter
documents to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby.

 

7.2.                              Action of the Purchaser.  The Purchaser has taken all necessary
action to authorize the execution, delivery and performance of this Agreement,
and upon the execution and delivery of any document to be delivered by the
Purchaser on or prior to the Closing Date, this Agreement and such document
shall constitute the valid and binding obligation and agreement of the
Purchaser, enforceable against the Purchaser in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws of general application affecting the
rights and remedies of creditors.

 

7.3.                              No Violations of Agreements.  Neither the execution, delivery or
performance of this Agreement by the Purchaser, nor compliance with the terms
and provisions hereof, will result in any breach of the terms, conditions or
provisions of, or conflict with or constitute a default under, or result in the
creation of any lien, charge or encumbrance upon any property or assets of the
Purchaser pursuant to the terms of any indenture, mortgage, deed of trust,
note, evidence of indebtedness or any other agreement or instrument by which
the Purchaser is bound.

 

11

 

7.4.                              Litigation.  The Purchaser has received no written notice
that any investigation, action or proceeding is pending or threatened which
questions the validity of this Agreement or any action taken or to be taken
pursuant hereto.

 

The
representations and warranties made in this Agreement by the Purchaser shall be
continuing and shall be deemed remade by the Purchaser as of the Closing Date
with the same force and effect as if made on, and as of, such date.  All representations and warranties made in
this Agreement by the Purchaser shall survive the Closing for a period of three
hundred sixty (360) days, and upon expiration shall be of no further force or
effect except to the extent that with respect to any particular alleged breach,
the Seller gives the Purchaser written notice prior to the expiration of said
three hundred sixty (360) period of such alleged breach with reasonable detail
as to the nature of such breach.

 

SECTION 8.                            COVENANTS
OF THE SELLER.

 

The Seller
hereby covenants with the Purchaser between the date of this Agreement and the
Closing Date as follows:

 

8.1.                              Approval of Agreements.  Not to enter into, modify, amend or terminate
any Lease or any other material agreement with respect to the Property, which
would encumber or be binding upon the Property from and after the Closing Date,
without in each instance obtaining the prior written consent of the Purchaser.

 

8.2.                              Operation of Property.  To continue to operate the Property consistent
with past practices.

 

8.3.                              Compliance with Laws, Etc.  To comply in all material respects with (i) all laws, regulations and other requirements
from time to time applicable of every governmental body having jurisdiction of
the Property, or the use or occupancy thereof, and (ii) all
material terms, covenants and conditions of all agreements affecting the
Property.

 

8.4.                              Compliance with Agreements.  To comply with each and every material term,
covenant and condition contained in the Leases and any other material document
or agreement affecting the Property and to monitor compliance thereunder
consistent with past practices.

 

8.5.                              Notice of Material Changes or Untrue
Representations.  Upon learning
of any material change in any 

 

12

 

condition with respect to the
Property or of any event or circumstance which makes any representation or
warranty of the Seller to the Purchaser under this Agreement untrue or
misleading, promptly to notify the Purchaser thereof.

 

8.6.                              Insurance.  To maintain, or cause to be maintained, all
existing property insurance relating to the Property.

 

8.7.                              Approval of 2009 Capital Expenditure Budget.
 The Seller shall prepare for the
Purchaser’s review and approval a 2009 capital expenditure budget (the “2009
CapEx Budget”) (including, without limitation, budgeted items for “building
improvements” and “development and redevelopment”).

 

SECTION 9.                            APPORTIONMENTS.

 

9.1.                              Real Property Apportionments.  (a)  The following items shall be
apportioned at the Closing as of the close of business on the day immediately
preceding the Closing Date:

 

(i)                                     annual rents,
operating costs, taxes and other fixed charges payable under the Leases;

 

(ii)                                  percentage rents and
other unfixed charges payable under the Leases;

 

(iii)                               fuel, electric, water
and other utility costs;

 

(iv)                              municipal assessments and
governmental license and permit fees;

 

(v)                                 Real estate taxes and
assessments other than special assessments, based on the rates and assessed
valuation applicable in the fiscal year for which assessed;

 

(vi)                              Water rates and charges;

 

(vii)                           Sewer and vault taxes and
rents; and

 

(viii)                        all other items of income and
expense normally apportioned in sales of property in similar situations in the
jurisdiction where the Property is located.

 

If any of the
foregoing cannot be apportioned at the Closing because of the unavailability of
the amounts which are to be apportioned, such items shall be apportioned on the
basis of a good faith estimate by the parties and reconciled as soon 

 

13

 

as practicable after the
Closing Date but, in any event, no later than one (1) year after the
Closing Date.

 

(b)                                 If
there are water, gas or electric meters located at the Property, the Seller
shall obtain readings thereof to a date not more than thirty (30) days prior to
the Closing Date and the unfixed water rates and charges, sewer taxes and rents
and gas and electricity charges, if any, based thereon for the intervening time
shall be apportioned on the basis of such last readings.  If such readings are not obtainable by the
Closing Date, then, at the Closing, any water rates and charges, sewer taxes
and rents and gas and electricity charges which are based on such readings
shall be prorated based upon the per diem charges obtained by using the most
recent period for which such readings shall then be available.  Upon the taking of subsequent actual
readings, the apportionment of such charges shall be recalculated and the
Seller or the Purchaser, as the case may be, promptly shall make a payment to
the other based upon such recalculations. 
The parties agree to make such final recalculations within sixty (60)
days after the Closing Date.

 

(c)                                  If
any refunds of real property taxes or assessments, water rates and charges or
sewer taxes and rents shall be made after the Closing, the same shall be held
in trust by the Seller or the Purchaser, as the case may be, and shall first be
applied to the unreimbursed costs incurred in obtaining the same, then to any
required refunds to tenants under the Leases, and the balance, if any, shall be
paid to the Seller (for the period prior to the Closing Date) and to the
Purchaser (for the period commencing with the Closing Date).

 

(d)                                 If,
on the Closing Date, the Property shall be or shall have been affected by any
special or general assessment or assessments or real property taxes payable in
a lump sum or which are or may become payable in installments of which the
first installment is then a charge or lien and has become payable, the Seller
shall pay or cause to be paid at the Closing the unpaid installments of such
assessments due and as of the Closing Date.

 

(e)                                  No
insurance policies of the Seller are to be transferred to the Purchaser, and no
apportionment of the premiums therefor shall be made.

 

(f)                                    At
the Closing, the Seller shall transfer to the Purchaser the amount of all
unapplied security deposits held pursuant to the terms of the Leases.

 

14

 

(g)                                 Brokerage
commissions, tenant improvement expenses and other amounts payable by the
Seller as landlord under Leases entered into by the Seller after the date
hereof, or in connection with the renewal or extension of any existing Lease,
shall be the responsibility of the Purchaser, and the Purchaser shall reimburse
the Seller at the Closing for all such brokerage commissions, tenant
improvement expenses and other amounts paid by the Seller prior to the Closing.  The Purchaser shall receive a credit at
Closing for all unpaid brokerage commissions, tenant improvement expenses and
other amounts payable by the Seller as landlord under Leases entered into by
the Seller prior to the date hereof.

 

(h)                                 Amounts
payable after the date hereof on account of capital expenditures under the 2008
capital expenditure budget prepared as of March 31, 2008 (the “2008
CapEx Budget”) and the 2009 CapEx Budget (together with the 2008 CapEx
Budget, collectively, the “CapEx Budget”) (including, without
limitation, budgeted items for “building improvements” and “development and
redevelopment”), shall be the responsibility of the Purchaser, and the
Purchaser shall reimburse the Seller at the Closing for all amounts paid by the
Seller prior to the Closing on account of capital expenditures under the CapEx
Budget payable after the date hereof. 
The Purchaser shall receive a credit at Closing for all unpaid amounts
payable on account of capital expenditures under the CapEx Budget prior to the
date hereof.  A copy of the 2008 CapEx
Budget has been previously provided to the Purchaser.

 

(i)                                     If
a net amount is owed by the Seller to the Purchaser pursuant to this Section 9.1,
such amount shall be credited against the Purchase Price.  If a net amount is owed by the Purchaser to
the Seller pursuant to this Section 9.1, such amount shall be added
to the Purchase Price paid to the Seller.

 

(j)                                     If,
on the Closing Date, there are past due rents with respect to any Lease,
amounts received by the Purchaser with respect to such Lease after the Closing
Date shall be applied, first, to rents due or to become due during the
calendar month in which the Closing occurs, and then, to all other rents
due or past due in inverse order to the order in which they became due (i.e.,
first to arrearages most recently occurring, then to older arrearages).  In no event shall the Seller have any right
to take any action to collect any past due rents or other amounts following the
Closing; provided, however, the Purchaser shall use commercially
reasonable efforts to collect such past due rents and other amounts, except
that the Purchaser shall have no obligation to institute any legal action or
proceeding 

 

15

 

or otherwise enforce any of its
rights and remedies under any Lease in connection with such commercially
reasonable efforts.

 

The provisions
of this Section 9.1 shall survive the Closing.

 

9.2.                              Closing Costs.

 

(a)                                  The
Purchaser shall pay (i) the costs of closing and diligence in connection
with the transactions contemplated hereby (including, without limitation, all
premiums, charges and fees of the Title Company in connection with the title
examination and insurance policies to be obtained by the Purchaser, including
affirmative endorsements), (ii) all documentary, stamp, sales, intangible
and other transfer taxes and fees incurred in connection with the transactions
contemplated by this Agreement, and (iii) all state, city, county,
municipal and other governmental recording and filing fees and charges.

 

(b)                                 Each
party shall pay the fees and expenses of its attorneys and other consultants.

 

SECTION 10.                     DAMAGE
TO OR CONDEMNATION OF PROPERTY.

 

10.1.                        Casualty.  If, prior to the Closing, the Property is  materially destroyed or damaged by fire or
other casualty, the Seller shall promptly notify the Purchaser of such
fact.  In such event, the Purchaser shall
have the right to terminate this Agreement by giving notice to the Seller not
later than ten (10) days after the giving the Seller’s notice (and, if
necessary, the Closing Date shall be extended until one day after the
expiration of such ten-day period).  If
the Purchaser elects to terminate this Agreement as aforesaid, this Agreement
shall terminate and be of no further force and effect and no party shall have
any liability to the other hereunder.  If
less than a material part of the Property shall be affected by fire or other
casualty or if the Purchaser shall not elect to terminate this Agreement as
aforesaid, there shall be no abatement of the Purchase Price and the Seller
shall assign to the Purchaser at the Closing the rights of the Seller to the
proceeds, if any, under the Seller’s insurance policies covering the Property
with respect to such damage or destruction and there shall be credited against
the Purchase Price the amount of any deductible, any proceeds previously
received by Seller on account thereof and any deficiency in proceeds.

 

16

 

10.2.                        Condemnation.  If, prior to the Closing, a material part of
the Property (including access or parking thereto), is taken by eminent domain
(or is the subject of a pending taking which has not yet been consummated), the
Seller shall notify the Purchaser of such fact promptly after obtaining
knowledge thereof and the Purchaser shall have the right to terminate this
Agreement by giving notice to the Seller not later than ten (10) days
after the giving of the Seller’s notice (and, if necessary, the Closing Date
shall be extended until one day after the expiration of such ten-day
period).  If the Purchaser elects to
terminate this Agreement as aforesaid, this Agreement shall terminate and be of
no further force and effect and no party shall have any liability to the other
hereunder.  If less than a material part
of the Property shall be affected or if the Purchaser shall not elect to
terminate this Agreement as aforesaid, the sale of the Property shall be
consummated as herein provided without any adjustment to the Purchase Price
(except to the extent of any condemnation award received by the Seller prior to
the Closing) and the Seller shall assign to the Purchaser at the Closing all of
the Seller’s right, title and interest in and to all awards, if any, for the
taking, and the Purchaser shall be entitled to receive and keep all awards for
the taking of the Property or portion thereof.

 

10.3.                        Survival.  The parties’ obligations, if any, under this Section 10
shall survive the Closing.

 

SECTION 11.                     DEFAULT.

 

11.1.                        Default by the Seller.  If the transaction herein contemplated fails
to close as a result of the default of the Seller hereunder, or the Seller
having made any representation or warranty herein which shall be untrue or
misleading in any material respect, or the Seller having failed to perform any
of the material covenants and agreements contained herein to be performed by
the Seller, the Purchaser may, as its sole remedy, either (x) terminate
this Agreement or (y) pursue a suit for specific performance.

 

11.2.                        Default by the Purchaser.  If the transaction herein contemplated fails
to close as a result of the default of the Purchaser hereunder, or the
Purchaser having made any representation or warranty herein which shall be
untrue or misleading in any material respect, or the Purchaser having failed to
perform any of the covenants and agreements contained herein to be performed by
it, the Seller may terminate this Agreement (in which case, the Purchaser shall
reimburse the 

 

17

 

Seller for all of the fees,
charges, disbursements and expenses of the Seller’s attorneys).

 

SECTION 12.                     MISCELLANEOUS.

 

12.1.                        Allocation of Liability.  It is expressly understood and agreed that
the Seller shall be liable to third parties for any and all obligations,
claims, losses, damages, liabilities, and expenses to the extent arising out of
events, contractual obligations, acts, or omissions of the Seller that occurred
in connection with the ownership or operation of the Property during the period
in which the Seller owned the Property prior to the Closing and the Purchaser
shall be liable to third parties for any and all obligations, claims, losses,
damages, liabilities and expenses to the extent arising out of events,
contractual obligations, acts, or omissions of the Purchaser that occur in
connection with the ownership or operation of the Property during the period in
which the Purchaser owns the Property after the Closing.  The provisions of this Section 12.1
shall survive the Closing.

 

12.2.                        Brokers.  Each of the parties hereto represents to the
other parties that it dealt with no broker, finder or like agent in connection
with this Agreement or the transactions contemplated hereby.  Each party shall indemnify and hold harmless
the other party and its respective legal representatives, heirs, successors and
assigns from and against any loss, liability or expense, including reasonable
attorneys’ fees, charges and disbursements arising out of any claim or claims
for commissions or other compensation for bringing about this Agreement or the
transactions contemplated hereby made by any other broker, finder or like
agent, if such claim or claims are based in whole or in part on dealings with
the indemnifying party.  The provisions
of this Section 12.2 shall survive the Closing.

 

12.3.                        Publicity.  The parties agree that, except as otherwise
required by law and except for the exercise of any remedy hereunder, no party
shall, with respect to this Agreement and the transactions contemplated hereby,
contact or conduct negotiations with public officials, make any public
pronouncements, issue press releases or otherwise furnish information regarding
this Agreement or the transactions contemplated to any third party without the
consent of the other party, which consent shall not be unreasonably withheld,
conditioned or delayed.

 

18

 

12.4.                        Notices.  (a)  Any and all notices, demands,
consents, approvals, offers, elections and other communications required or
permitted under this Agreement shall be deemed adequately given if in writing
and the same shall be delivered either in hand, by telecopier with confirmed
receipt, or by mail or Federal Express or similar expedited commercial carrier,
addressed to the recipient of the notice, postpaid and registered or certified
with return receipt requested (if by mail), or with all freight charges prepaid
(if by Federal Express or similar carrier).

 

(b)                                 All
notices required or permitted to be sent hereunder shall be deemed to have been
given for all purposes of this Agreement upon the date of acknowledged receipt,
in the case of a notice by telecopier, and, in all other cases, upon the date
of receipt or refusal, except that whenever under this Agreement a notice is
either received on a day which is not a Business Day or is required to be
delivered on or before a specific day which is not a Business Day, the day of
receipt or required delivery shall automatically be extended to the next
Business Day.

 

(c)                                  All
such notices shall be addressed,

 

if to the
Seller, to:

 

Hub RI
Properties Trust

c/o HRPT Properties Trust

400 Centre Street

Newton, Massachusetts  02458

Attn:  Mr. John C. Popeo

[Telecopier No. (617) 928-1305]

 

with a copy
to:

 

Skadden, Arps,
Slate, Meagher & Flom LLP

300 South Grand Avenue, 34th Floor

Los Angeles, California 90071

Attn:  Meryl K. Chae, Esq.

[Telecopier No. (213) 621-5035]

 

19

 

if to the
Purchaser, to:

 

Senior Housing
Properties Trust

400 Centre Street

Newton, Massachusetts 02458

Attn:  Mr. David J. Hegarty

[Telecopier No. (617) 796-8349]

 

with a copy
to:

 

Sullivan &
Worcester LLP

One Post Office Square

Boston, Massachusetts  02109

Attn:  Nancy S. Grodberg, Esq.

[Telecopier No. (617) 338-2880]

 

(d)                                 By
notice given as herein provided, the parties hereto and their respective
successor and assigns shall have the right from time to time and at any time
during the term of this Agreement to change their respective addresses
effective upon receipt by the other parties of such notice and each shall have
the right to specify as its address any other address within the United States
of America.

 

12.5.                        Waivers, Etc.  Subject to the terms of the last paragraph of
Section 6, any waiver of any term or condition of this Agreement,
or of the breach of any covenant, representation or warranty contained herein,
in any one instance, shall not operate as or be deemed to be or construed as a
further or continuing waiver of any other breach of such term, condition,
covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to
enforce or require performance of any provision hereof operate as a waiver of
or affect in any manner such party’s right at a later time to enforce or
require performance of such provision or any other provision hereof.  This Agreement may not be amended, nor shall
any waiver, change, modification, consent or discharge be effected, except by
an instrument in writing executed by or on behalf of the party against whom
enforcement of any amendment, waiver, change, modification, consent or discharge
is sought.

 

12.6.                        Assignment; Successors and Assigns.  Subject to Section 12.15, this
Agreement and all rights and obligations hereunder shall not be assignable,
directly or indirectly, by any party without the written consent of the other,
except that the Purchaser may assign this Agreement to any entity wholly owned,
directly or indirectly, by the Purchaser; provided, 

 

20

 

however,
that, in the event this Agreement shall be assigned to any one or more entities
wholly owned, directly or indirectly, by the Purchaser, the Purchaser named
herein shall remain liable for the obligations of the “Purchaser”
hereunder.  This Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their
respective legal representatives, successors and permitted assigns.  This Agreement is not intended and shall not
be construed to create any rights in or to be enforceable in any part by any
other persons.

 

12.7.                        Severability.  If any provision of this Agreement shall be
held or deemed to be, or shall in fact be, invalid, inoperative or
unenforceable as applied to any particular case in any jurisdiction or
jurisdictions, or in all jurisdictions or in all cases, because of the conflict
of any provision with any constitution or statute or rule of public policy
or for any other reason, such circumstance shall not have the effect of
rendering the provision or provisions in question invalid, inoperative or
unenforceable in any other jurisdiction or in any other case or circumstance or
of rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable to the extent that such other provisions are not
themselves actually in conflict with such constitution, statute or rule of
public policy, but this Agreement shall be reformed and construed in any such
jurisdiction or case as if such invalid, inoperative or unenforceable provision
had never been contained herein and such provision reformed so that it would be
valid, operative and enforceable to the maximum extent permitted in such
jurisdiction or in such case.

 

12.8.                        Counterparts, Etc.  This Agreement may
be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.  This Agreement constitutes
the entire agreement of the parties hereto with respect to the subject matter
hereof and shall supersede and take the place of any other instruments
purporting to be an agreement of the parties hereto relating to the subject
matter hereof.

 

12.9.                        Performance on Business Days.  In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a
Business Day, the time for payment or performance shall automatically be
extended to the first Business Day following such date.

 

12.10.                  Attorneys’ Fees.  If any lawsuit or arbitration or other legal
proceeding arises in connection with the 

 

21

 

interpretation or enforcement
of this Agreement, the prevailing party therein shall be entitled to receive
from the other party the prevailing party’s costs and expenses, including
reasonable attorneys’ fees incurred in connection therewith, in preparation
therefor and on appeal therefrom, which amounts shall be included in any
judgment therein.

 

12.11.                  Section and Other Headings.  The headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

 

12.12.                  Time of Essence.  Time shall be of the essence with respect to
the performance of each and every covenant and obligation, and the giving of
all notices, under this Agreement.

 

12.13.                  Governing Law.  This Agreement shall be interpreted, construed,
applied and enforced in accordance with the laws of The Commonwealth of
Massachusetts.

 

12.14.                  Arbitration.  Any party hereto may elect to submit any
dispute hereunder that has an amount in controversy in excess of $250,000 to
arbitration hereunder.  Any such
arbitration shall be conducted in Boston, Massachusetts in accordance with the
Commercial Arbitration Rules of the American Arbitration Association then
pertaining and the decision of the arbitrators with respect to such dispute
shall be binding, final and conclusive on the parties.

 

In the event
any party hereto shall elect to submit any such dispute to arbitration
hereunder, the Seller and the Purchaser shall each appoint and pay all fees of
a fit and impartial person as arbitrator with at least ten (10) years’
recent professional experience in the general subject matter of the
dispute.  Notice of such appointment
shall be sent in writing by each party to the other, and the arbitrators so
appointed, in the event of their failure to agree within thirty (30) days after
the appointment of the second arbitrator upon the matter so submitted, shall
appoint a third arbitrator.  If either
the Seller or the Purchaser shall fail to appoint an arbitrator, as aforesaid,
for a period of ten (10) days after written notice from the other party to
make such appointment, then the arbitrator appointed by the party having made
such appointment shall appoint a second arbitrator and the two (2) so
appointed shall, in the event of their failure to agree upon any decision within
thirty (30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of 

 

22

 

the second arbitrator, then
such third arbitrator shall be appointed by the American Arbitration
Association from its qualified panel of arbitrators, and shall be a person
having at least ten (10) years’ recent professional experience as to the
subject matter in question.  The fees of
the third arbitrator and the expenses incident to the proceedings shall be
borne equally between the Seller and the Purchaser, unless the arbitrators
decide otherwise.  The fees of respective
counsel engaged by the parties, and the fees of expert witnesses and other
witnesses called for by the parties, shall be paid by the respective party
engaging such counsel or calling or engaging such witnesses.

 

The decision
of the arbitrators shall be rendered within thirty (30) days after appointment
of the third arbitrator.  Such decision
shall be in writing and in duplicate, one counterpart thereof to be delivered
to the Seller and one to the Purchaser. 
A judgment of a court of competent jurisdiction may be entered upon the
award of the arbitrators in accordance with the rules and statutes
applicable thereto then obtaining.

 

12.15.                  Like
Kind Exchange.  At either party’s request, the non-requesting
party will take all actions reasonably requested by the requesting party in
order to effectuate all or any part of the transactions contemplated by this
Agreement as a forward or reverse like-kind exchange for the benefit of the
requesting party in accordance with Section 1031 of the Internal Revenue
Code and, in the case of a reverse exchange, Rev. Proc. 2000-37, including
executing an instrument acknowledging and consenting to any assignment by the
requesting party of its rights hereunder to a qualified intermediary or an
exchange accommodation titleholder.  In
furtherance of the foregoing and notwithstanding anything contained in this
Agreement to the contrary, the requesting party may assign its rights under
this Agreement to a “qualified intermediary” or an “exchange accommodation
titleholder” in order to facilitate, at no cost or expense to the other, a
forward or reverse like-kind exchange under Section 1031 of the Internal
Revenue Code; provided, however, that such assignment will not
relieve the requesting party of any of its obligations hereunder.  The non-requesting party will also agree to
issue all closing documents, including the deed, to the applicable qualified
intermediary or exchange accommodation titleholder if so directed by the
requesting party prior to Closing. 
Notwithstanding the foregoing, in no event shall the non-requesting
party incur or be subject to any liability that is not otherwise provided for
in this Agreement.

 

23

 

12.16.                  Recording.  This Agreement may not be recorded without
the prior written consent of both parties.

 

12.17.                  Non-liability of Trustees of Seller.  The Declaration of Trust of HUB RI Properties
Trust, a copy of which is duly filed with the Department of Assessments and
Taxation of the State of Maryland, provides that the name “Hub RI Properties
Trust” refers to the trustees under such Declaration of Trust collectively as
trustees, but not individually or personally, and that no trustee, officer,
shareholder, employee or agent of Hub RI Properties Trust shall be held to any
personal liability, jointly or severally, for any obligation or, or claim
against, Hub RI Properties Trust.  All
persons dealing with the Seller, in any way shall look only to the assets of
the Seller for the payment of any sum or the performance of any obligation.

 

12.18.                  Non-liability of Trustees of Purchaser.  The Declaration of Trust of Senior Housing
Properties Trust, a copy of which is duly filed with the Department of
Assessments and Taxation of the State of Maryland, provides that the name “Senior
Housing Properties Trust” refers to the trustees under such Declaration of
Trust collectively as trustees, but not individually or personally, and that no
trustee, officer, shareholder, employee or agent of Senior Housing Properties
Trust shall be held to any personal liability, jointly or severally, for any
obligation or, or claim against, Senior Housing Properties Trust.  All persons dealing with the Purchaser, in
any way shall look only to the assets of the Purchaser for the payment of any
sum or the performance of any obligation.

 

12.19.                  Waiver and Further Assurances.  The Purchaser hereby acknowledges that it is
a sophisticated purchaser of real properties and that it is aware of all
disclosures the Seller is or may be required to provide to the Purchaser in
connection with the transactions contemplated hereby pursuant to any law, rule or
regulation (including those of Massachusetts and those of the state in which
the Property is located).   The Purchaser
hereby acknowledges that, prior to the execution of this Agreement, the
Purchaser has had access to all information necessary to acquire the Property
and the Purchaser acknowledges that the Seller has fully and completely
fulfilled any and all disclosure obligations with respect thereto.  The Purchaser hereby fully and completely
discharges the Seller from any further disclosure obligations whatsoever
relating to the Property.  In addition to
the actions recited herein and contemplated to be performed, executed, and/or
delivered by the Seller and the Purchaser, the Seller and the Purchaser agree
to 

 

24

 

perform, execute and/or deliver
or cause to be performed, executed and/or delivered at the Closing or after the
Closing any and all such further acts, instruments, deeds and assurances as may
be reasonably required to establish, confirm or otherwise evidence the Seller’s
satisfaction of any disclosure obligations or to otherwise consummate the
transactions contemplated hereby.

 

[Signature page follows.]

 

25

 

IN WITNESS WHEREOF, the parties have caused
this Agreement to be executed as a sealed instrument as of the date first above
written.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  HUB RI PROPERTIES TRUST, a

  
	
   

  	
  a Maryland real estate investment

  trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  SENIOR
  HOUSING PROPERTIES TRUST,  a

  
	
   

  	
  Maryland real estate investment

  trust

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Hegarty

  
	
   

  	
   

  	
  David J. Hegarty

  
	
   

  	
   

  	
  President

  

 

26

 

SCHEDULE A

 

Land

 

 

SCHEDULE B

 

Rent Roll

 

 

SCHEDULE C

 

Form of Deed

 

Certain Schedules to this
agreement have been omitted. The Company agrees to furnish supplementally
copies of any of the omitted Schedules to the Securities and Exchange
Commission upon request.

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