Document:

exv10w1

 

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT is dated as of October 9, 2003, by and
between INTERNATIONAL PLACE ASSOCIATES II, LTD., a Florida limited partnership
(“IPA II”), INTERNATIONAL PLACE ASSOCIATES III, LTD., a Florida limited
partnership (“IPA III”), INTERNATIONAL PLACE ASSOCIATES IV, LTD., a Florida
limited partnership (“IPA IV”) (each of IPA II, IPA III and IPA IV are
hereinafter sometimes hereinafter referred to as a “Seller” and are sometimes
hereinafter collectively referred to as “Sellers"), and KEYSTONE OPERATING
PARTNERSHIP, L.P., a Delaware limited partnership (“Purchaser").

R E C I T A L S

     WHEREAS, Sellers collectively own fee title to thirteen (13) Parcels (as
hereinafter defined), each of which is improved with an industrial building as
more particularly described herein and which are located in an
industrial/corporate park commonly known as “International Corporate Park”
located in Miami, Florida.

     WHEREAS, the Sellers are Affiliates (as hereinafter defined) and desire to
sell such industrial properties, and all related personal property owned by
Sellers in connection therewith, to Purchaser, and Purchaser desires to
purchase such property, upon the terms and subject to the conditions contained
herein.

     NOW, THEREFORE, in consideration of the mutual covenants, conditions and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

ARTICLE I

Definitions

     1.1 Definitions. For purposes of this Agreement, the following terms
shall have the meanings indicated below:

     “ADA” shall mean the Americans With Disabilities Act, as amended.

     “Adjustable Tenant Charges” shall mean common area maintenance (exterior
and interior) and other operating charges, real estate taxes and assessments,
property insurance charges and HVAC charges to the extent denominated as such
in the Leases.

     “Affiliate” shall mean a Person that directly or indirectly through one or
more intermediaries controls, is controlled by, or is under common control with
the Person specified.

     “Agreement” shall mean this Purchase and Sale Agreement, as amended or
modified from time to time hereafter in accordance with the terms hereof.

     “Applicable Closing Fiscal Period” shall mean, with respect to any item
which is prorated under Article V, the calendar year (or other fiscal period
for which such item is determined or assessed) during which the Closing Date
occurs.

 

 

     “Assumed Contracts” shall have the meaning set forth in Section 4.4.

     “Assumed Liabilities” shall have the meaning set forth in Section 2.3(a).

     “Books and Records” shall mean the following records, books of account and
papers of each Seller relating to the construction, ownership, management and
operations of the Property, namely, architect’s drawings, blue prints and
as-built plans, maintenance logs, copies of warranties and guaranties which are
presently in effect as of the Closing Date, licenses and permits, records and
correspondence relating to insurance claims within the past twelve (12) months,
Operating Budget, paper copies of data and other information relating to the
Property for the previous two (2) calendar years which are available from
personal computers, structural, mechanical, geotechnical or other engineering
studies, soil test reports, Environmental Reports, Underground Storage Tank
reports (if any), appraisals, ADA surveys or reports (if any), OSHA asbestos
surveys (if any), and originals and/or copies of Leases and all Lease
correspondence files, the Operating Agreement and the Contracts and
correspondence related thereto.

     “Casualty” shall mean any damage to or destruction of the Property or any
portion thereof caused by fire or other casualty, whether or not insured.

     “Closing” shall have the meaning set forth in Section 6.1.

     “Closing Date” shall have the meaning set forth in Section 6.1.

     “Closing Documents” shall mean the Seller Closing Documents and Purchaser
Closing Documents, collectively.

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

     “Contracts” shall mean the service, maintenance and other contracts and
concessions that are currently in effect and to which any Seller is a party or
to which any of the Property is subject, respecting the use, maintenance,
development, or operation of the Property or any portion thereof (but excluding
this Agreement, the Leases, the Permitted Exceptions and the Operating
Agreement) which are listed on Schedule 8.1(j), together with any additions
thereto, modifications thereof or substitutions therefor hereafter entered into
in accordance with the provisions of this Agreement.

     “Defect” shall mean any Lien, encumbrance, easement, agreement,
restriction, proceeding, lis pendens, notice, covenant, restriction, ordinance,
code, rule, law, encroachment or other survey defect or exception to title that
in Purchaser’s sole opinion adversely affects the Property.

     “Disapproval Notice” shall have the meaning set forth in Section 3.2.

     “Earnest Money” shall have the meaning set forth in Section 2.2(a).

     “Earnest Money Escrow” shall have the meaning set forth in Section 2.2(a).

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     “Environmental Laws” shall mean all federal, state and local statutes,
ordinances, codes, rules, regulations, guidelines, orders and decrees
regulating, relating to or imposing liability or standards concerning or in
connection with Hazardous Materials, Underground Storage Tanks or the
protection of human health or the environment, as any of the same may be
amended from time to time, including but not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C.
§9601 et. seq., as amended by the Superfund Amendments and Reauthorization Act
or any equivalent state or local laws or ordinances; the Resource Conservation
and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq., as amended by the
Hazardous and Solid Waste Amendments of 1984, or any equivalent state or local
laws or ordinances; the Federal Insecticide, Fungicide, and Rodenticide Act
(“FIFRA”), 7 U.S.C. §136 et. seq. or any equivalent state or local laws or
ordinances; the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et
seq.); the Emergency Planning and Community Right-to-Know Act (“EPCRA”), 42
U.S.C. §11001 et. seq. or any equivalent state or local laws or ordinances; the
Toxic Substance Control Act (“TSCA”), 15 U.S.C. §2601 et. seq. or any
equivalent state or local laws or ordinances; the Atomic Energy Act, 42 U.S.C.
§2011 et. seq., or any equivalent state or local laws or ordinances; the Clean
Water Act (the “Clean Water Act”), 33 U.S.C. §1251 et. seq. or any equivalent
state or local laws or ordinances; the Clean Air Act (the
“Clean Air Act”), 42
U.S.C. §7401 et seq. or any equivalent state or local laws or ordinances; the
Occupational Safety and Health Act, 29 U.S.C. §651 et seq. or any equivalent
state or local laws or ordinances.

     “Environmental Reports” shall mean any the existing environmental reports
(including any and all Phase I and Phase II reports) relating to the Property
which are in Seller’s possession and described on Schedule 8.1(l).

     “Escrow Agent” shall mean Fidelity National Title Insurance Company.

     “Execution Date” shall mean the date of this Agreement, which shall be the
date upon which both parties have duly executed this Agreement.

     “Financial Statements” shall mean the income and expense statements
prepared by Sellers with respect to the Property for calendar year 2002 and the
eight month period ended August 31, 2003, which were delivered to Purchaser
prior to the Execution Date.

     “Fixed and Other Tenant Charges” shall mean Rent other than Adjustable
Tenant Charges.

     “Fixed and Other Tenant Charge Arrearages” shall mean Fixed and Other
Tenant Charges due and payable prior to but unpaid as of the Closing Date.

     “GAAS” shall mean Generally Accepted Auditing Standards as promulgated by
the Auditing Standards Division of the American Institute of Certified Public
Accountants from time to time.

     “Hazardous Materials” shall mean any substance, material, waste, gas or
particulate matter which (i) is now regulated by the United States Government,
the State of Florida, any other state with jurisdiction, or any local
governmental authority, or (ii) the exposure to, or manufacture, possession,
presence, use, generation, storage, transportation, treatment, release,

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 disposal, abatement, cleanup, removal, remediation or handling of is
prohibited, controlled or regulated by any Environmental Law, or (iii) requires
investigation or remediation under any Environmental Law or common law, or (iv)
is toxic, explosive, corrosive, flammable, infectious, radioactive,
carcinogenic, mutagenic or otherwise hazardous, or (v) poses or threatens to
pose a hazard to the health or safety of persons on or about the Property, or
(vi) could or does cause any Seller or Purchaser to be liable for trespass.

     “Improvements” shall mean improvements, structures, fixtures, facilities,
installations, machinery and equipment, in, on, over or under any of the
Parcels, including but not limited to the foundations and footings therefor,
elevators, plumbing, air conditioning, heating, ventilating, mechanical,
electrical and utility systems (except to the extent owned by a utility
company), signs and light fixtures (except to the extent of trade fixtures and
equipment owned by tenants under the Leases), doors, windows, fences, parking
lots, walks and walkways and each and every other type of physical improvement
to the extent owned, in whole or in part, by any Seller, located at, on or
affixed to any of the Parcels, to the full extent such items constitute or are
or can or may be construed as realty under the laws of the State of Florida.
When reference is made herein to a particular Improvement which is located on,
in or under a particular Parcel, the same shall be identified by reference to
such particular Parcel in the manner in which such Parcel is identified
hereunder.

     “Indemnified Party” shall have the meaning set forth in Section 11.3.

     “Indemnified Purchaser Persons” shall have the meaning set forth in
Section 11.1.

     “Indemnified Seller Persons” shall have the meaning set forth in Section
11.2.

     “Indemnifying Party” shall have the meaning set forth in Section 11.3.

     “Inspection Period” shall have the meaning set forth in Section 4.1
hereof.

     “Land” shall mean those certain parcels of real estate described on
Exhibit A, collectively, without distinction among the several Parcels.

     “Leases” shall mean those leases, tenancies, concessions, licenses and
occupancy agreements affecting, encumbering or relating to the Property which
are listed on Schedule 8.1(g), together with any additions thereto,
modifications thereof or substitutions therefor hereafter entered into in
accordance with the provisions of this Agreement.

     “Liens” shall mean any liens, security interests, judgments or charges
that encumber any part of the Land, the Improvements, or the Personalty owned
by Sellers, including, but not limited to, mortgages, deeds of trust,
mechanics, materialmen, judicial, tax or governmental liens, pledges, options,
rights of first offer or first refusal or other similar items.

     “Losses” shall mean with respect to any obligation to indemnify any
Seller, the Indemnified Seller Persons, Purchaser or the Indemnified Purchaser
Persons, any and all claims, actions, suits, demands, losses, damages,
liabilities, obligations, judgments, settlements, awards, penalties, costs or
expenses, including, without limitation, reasonable attorneys’ fees and
expenses.

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     “Operating Agreement” shall mean that certain Declaration of Protective
Covenants and Restrictions for International Corporate Park dated June 28,
1995, Official Record Book 16836, Page 1248, as amended by the documents dated
and recorded as follows: Acknowledgment and Agreement, dated September 18,
1996, recorded September 23, 1996 in Official Records Book 17360, at Page 3978;
Exemption of Property from Declaration of Protective Covenants and Restrictions
dated July 1, 1997, recorded July 7, 1997 in Official Records Book 17703, at
Page 2515; First Supplement to Declaration of Protective Covenants and
Restrictions, dated February 21, 1997, recorded February 24, 1997, in Official
Records Book 17538, at Page 824; Second Supplement and Amendment to Declaration
of Protective Covenants and Restrictions, dated July 2, 1997, recorded July 2,
1997 in Official Records Book 17698, at Page 3823; Supplement and Amendment to
Declaration of Protective Covenants and Restrictions, dated August 8, 1997,
recorded on August 20, 1997 in Official Records Book 17759, at Page 1053;
Amended and Restated Second Supplement and Amendment, dated August 13, 1997,
recorded on August 20, 1997, in Official Records Book 17759, at Page 1223; and
Second Supplement and Amendment to Declaration of Protective Covenants and
Restrictions, dated November 24, 1997, recorded on December 3, 1997 in Official
Records Book 17888, at Page 3574.

     “Operating Budget” shall mean the prospective operating budget for the
Property for calendar year 2004 prepared by Sellers in the ordinary course of
Sellers’ business.

     “Parcel” shall mean each of the separate parcels of Real Property
described on Exhibit A hereto individually and not collectively. When
reference is made herein to a particular Parcel, such Parcel shall be
identified in the manner in which it is identified on Exhibit A attached
hereto.

     “Party” shall mean a party to a Contract (or the successor or assignee
thereof) or a Tenant under a Lease, in each case other than a Seller.

     “Permits” shall mean all licenses, permits, applications, authorizations,
certificates of occupancy, governmental approvals and other similar
entitlements in effect and relating to the Property and the operation thereof.

     “Permitted Exceptions” shall have the meaning set forth in Section 3.2.

     “Person” shall mean any individual, corporation, partnership, limited
liability company, governmental unit or agency, trust, estate or other entity
of any type.

     “Personalty” shall mean all of the tangible personal property, owned by
any Seller and located in or upon or used in connection with the operation and
maintenance of the Property, including without limitation fixtures; machinery;
equipment, including without limitation dock levelers and fire extinguishers;
building supplies and materials; consumables, if any; inventories; all
assignable licenses, permits and certificates of occupancy; all assignable
guarantees or warranties (including performance bonds obtained by, or for the
benefit of, any Seller, pertaining to the ownership, construction or
development of the Real Property or any part thereof); and the Books and
Records. Personalty shall not include personal items belonging to Tenants of
Sellers, the rights of each Seller in and to the Leases, the Contracts, the
Operating Agreement and the

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 cash and the cash accounts of Sellers (including any cash or cash accounts
constituting the Security Deposits).

     “Property” shall mean (a) the Real Property, (b) the Personalty, (c) the
rights and interests of each Seller in, to and under all Leases, (d) the rights
and interests of each Seller as an owner in, to and under the Operating
Agreement applicable to the Property, but not the rights of the Seller as
Declarant, (e) the rights and interests of each Seller in, to and under the
Contracts to the extent assignable, (f) the rights and interests of each Seller
in, to and under any Permits to the extent assignable, (g) any warranties or
guaranties relating to the Property to the extent assignable, (h) any rights to
or under real estate tax or other refunds, (i) claims, rights, choses-in-action
and other intangibles relating to the foregoing, choate and inchoate, known or
unknown, including, without limitation, claims against insurers for any insured
loss occurring prior to the Closing Date, except to the extent Purchaser has
received proration credit therefor, (j) utility and other deposits, (k) prepaid
expenses and other items for which Seller is given proration credit, and (l)
rights, if any, of Seller to use the name “International Corporate Park” with
respect to the Real Property.

     “Purchaser Closing Documents” shall have the meaning set forth in Section
6.3.

     “Purchase Price” shall have the meaning set forth in Section 2.2.

     “Real Property” shall mean the Land and the Improvements, together with
all of the estate, right, title and interest of any Seller therein, and in and
to (a) any land lying in the beds of any streets, roads or avenues, open or
proposed, public or private, in front of or adjoining the Land to the center
lines thereof, and in and to any awards to be made in lieu thereof and in and
to any unpaid awards for damage to the foregoing by reason of the change of
grade of any such streets, roads or avenues; (b) all easements, rights,
licenses, privileges, rights-of-way, strips and gores, hereditaments and such
other real property rights and interests appurtenant to the foregoing; and (c)
rights and interests of Seller in, to and under the Operating Agreement which
are appurtenant to and run with Seller’s ownership of the Land and
Improvements, but not rights as a Declarant.

     “Rental Taxes” shall have the meaning set forth in Section 10.5.

     “Rent Roll” shall have the meaning set forth in Section 8.1(e).

     “Rents” shall mean base rent, fixed rent, minimum rent, additional rent,
common area maintenance charges, insurance charges, rubbish removal charges,
sprinkler charges, water charges, utility charges, HVAC charges, amounts
payable with respect to real estate and other taxes, and other amounts payable
by any Party under the Leases.

     “Security Deposits” shall have the meaning set forth in Section 7.8.

     “Seller Closing Documents” shall have the meaning set forth in Section
6.2.

     “Seller’s Liabilities” shall have the meaning set forth in Section 2.3(b).

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     “Substantial Casualty” or “Substantial Taking” shall mean a Casualty or
Taking, as the case may be, where:

          (a) In the case of a Casualty, the cost to repair the damage in
Purchaser’s reasonable opinion is in excess of $500,000 whether or not the loss
is covered by insurance; or

          (b) in the case of a Taking, a taking with respect to a portion of any
Parcel or the Improvements thereon or both which when so taken would, in the
reasonable opinion of Purchaser, leave remaining a balance of the said Parcel
or Improvements or both, which, due either to the area taken or the location of
the part taken would not, under applicable zoning laws, building regulations
and economic conditions then prevailing or otherwise, readily accommodate a new
or restructured building or buildings of a type and size generally similar to
the building or buildings existing on the date hereof, or would result in
inadequate parking or lack of reasonable access to public roads.

     “Survey” shall mean an ALTA survey of a parcel of Real Property prepared
by a surveyor licensed or registered in the State of Florida, including any
existing surveys delivered by Sellers to Purchaser, and any update or new
Survey prepared on behalf of Purchaser.

     “Taking” shall mean a taking of all or any portion of the Real Property in
condemnation or by exercise of the power of eminent domain or by an agreement
in lieu thereof.

     “Tenant Estoppel” shall have the meaning set forth in Section 10.3.

     “Tenants” shall mean tenants, concessionaires, licensees and/or occupants
under the Leases.

     “Tenant Services” shall mean all services supplied by or on behalf of
Sellers to Tenants for which Tenants are separately charged, other than
services in the nature of common area maintenance.

     “Third Party Claim” shall have the meaning set forth in Section 11.3.

     “Third Party Consents” shall have the meaning set forth in Section 10.4.

     “Title Commitment” shall mean each commitment for title insurance issued
by the Title Company to Purchaser providing for the issuance at the Closing to
Purchaser of the Title Policy, which commitment must disclose the applicable
Seller as the owner of fee simple interest in its separate Parcels and shall
disclose and shall have attached to it copies of all documents underlying all
exceptions to title and all encumbrances on and other matters of record
affecting the Real Property, and which commitment shall include forms of all
endorsements to be a part of the Title Policy.

     “Title Company” shall mean Fidelity National Title Insurance Company.

     “Title Policy” shall mean, to the extent available in the State of Florida
an ALTA Form 1992 Owner’s Policy of Title Insurance issued by the Title
Company, dated the date and time of Closing and with policy coverage in the
amount of the Purchase Price, insuring Purchaser as

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 owner of good, marketable and indefeasible fee title to such Real
Property, subject only to the Permitted Exceptions to the extent available, and
affirmatively insuring as a part of Schedule A to such Title Policy Purchaser’s
rights under the Operating Agreement and any appurtenant easements that benefit
the Real Property and containing the following endorsements: an extended
coverage endorsement over the general exceptions contained in the policy, an
endorsement insuring the accuracy of the Survey, an endorsement insuring legal
access to the Real Property from each of the streets bordering on the Real
Property and/or the industrial park governed by the Operating Agreement, and
insuring that all such streets are dedicated public streets, a contiguity
endorsement, and any other endorsements requested by Purchaser.

     “Transactions” shall mean the transactions contemplated by this Agreement.

     “Underground Storage Tanks” shall mean Underground Storage Tanks as
defined in Section 9001 of RCRA and as used herein, such term shall also
include (i) any farm or residential tank of 1,100 gallons or less capacity used
for storing motor fuel for noncommercial purposes, (ii) any tank used for
storing heating oil for consumption on the premises where stored, (iii) any
septic tank and (iv) any pipes connected to any of the items described in
clauses (i) through (iii).

     “Utility Deposits” shall have the meaning set forth in Section 7.7.

     1.2 References. All references in this Agreement to particular sections
or articles shall, unless expressly otherwise provided, or unless the context
otherwise requires, be deemed to refer to the specific sections or articles in
this Agreement, and any references to “Exhibit” shall, unless otherwise
specified, refer to one of the exhibits annexed hereto and, by such reference,
be made a part hereof. The words “herein”,
“hereof”, “hereunder”,
“hereinafter”, “hereinabove” and other words of similar import refer to this
Agreement as a whole and not to any particular section, subsection or article
hereof.

ARTICLE II

Sale and Purchase

     2.1 Purchase and Sale Contract. Upon the terms and subject to the
conditions contained herein, at the Closing, Sellers shall sell, assign,
transfer and convey to Purchaser, and Purchaser shall purchase from Sellers,
all of Sellers’ right, title and interest in and to the Property, free and
clear of all Liens other than the Permitted Exceptions.

     2.2 Purchase Price. The purchase price for the Property (the “Purchase
Price”) shall be One Hundred Fourteen Million Three Hundred Ninety-One Thousand
and No/100 Dollars ($114,391,000) payable as follows:

          (a) Prior to the Execution Date, Purchaser deposited with Escrow Agent the
sum of Two Hundred Thousand and No/100 Dollars ($200,000) (the “Initial
Deposit”). Upon the expiration of the Inspection Period (as hereinafter
defined), and so long as Purchaser shall not exercise its right to terminate
this Agreement as set forth in Section 4.3 hereof, Purchaser shall deposit with
Escrow Agent the additional sum of One Million Eight Hundred Thousand and
No/100 Dollars ($1,800,000) (the “Additional Deposit”). Escrow Agent shall
hold the Initial Deposit and Additional Deposit (any such deposits actually
made by Purchaser pursuant to this

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Agreement from time to time being hereinafter referred to as the “Earnest
Money") as an earnest money deposit pursuant to the terms of Exhibit B attached
hereto and made a part hereof (the “Earnest Money Escrow"). All funds
deposited in the Earnest Money Escrow shall be invested in interest-bearing or
money-market accounts. Upon and subject to the occurrence of the Closing, all
funds, including any accrued interest, on deposit in the Earnest Money Escrow
shall be applied by Escrow Agent in partial payment of the Purchase Price.

          (b) Purchaser shall assume the outstanding principal balance (plus all
accrued but unpaid interest thereon to the extent any such unpaid interest and
principal is not then delinquent under the terms of the Assumed Loan Documents)
existing on the Closing Date of the mortgage indebtedness of Sellers as more
particularly described on Schedule 2.2(b) hereof (the “Assumed Debt").

          (c) The balance of the Purchase Price, less the Earnest Money and less the
outstanding principal balance of the Assumed Debt as of the Closing Date, plus
or minus the net applicable prorations described below, shall be deposited by
Purchaser in escrow in immediate, same-day federal funds (all or any part of
which may be the proceeds of a loan) wired for credit into such account as
Escrow Agent may designate on the Closing Date.

          (d) The Purchase Price was determined by multiplying the rentable square
feet of building space in each Parcel by Sixty-Six Dollars ($66.00) per
rentable square foot. In the event that any Parcel or Parcels are eliminated
from the purchase for any reason permitted hereunder, the Purchase Price will
be adjusted by reducing the same by the number of rentable square feet in each
such parcel by Sixty-Six Dollars ($66.00) per square foot excepting only that
should the Perrier Building Parcel be eliminated, then the Purchase Price will
be reduced by One Hundred Dollars ($100.00) per square foot for such Parcel.
In the event that the Perrier Building is eliminated, then the remaining
balance of the Purchase Price will be applied on a proportionate rentable
square foot basis among the remaining Parcels.

     2.3 Assumption of Liabilities.

          (a) At the Closing, Purchaser shall assume (i) the liabilities and
obligations of Sellers arising from and after the Closing Date under or in
respect of the Leases (including any obligation to refund any Security
Deposits), the Operating Agreement, the Assumed Contracts (with the liability
of Purchaser being limited to the same extent, if any, as Sellers’ liability is
limited thereunder), and Assumed Debt but only to the extent such liabilities
and obligations do not arise out of any transaction, event, circumstance,
action, failure to act or occurrence of any sort or type which occurred,
existed or was taken prior to the Closing Date and (ii) other liabilities and
obligations herein described to the extent Purchaser has received proration
credit therefor or is expressly obligated to pay under the terms of this
Agreement. All of the obligations to be assumed by Purchaser pursuant to this
Section 2.3(a) are hereinafter referred to as the “Assumed Liabilities”.

          (b) Except as otherwise herein expressly provided, Purchaser is not
assuming and shall not by virtue of the consummation of the Transactions be
deemed to have assumed any liabilities or obligations which are not Assumed
Liabilities (collectively, “Sellers’ Liabilities”). Without limiting the
foregoing, Sellers’ Liabilities shall include (i) all federal, state and local

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taxes of whatever kind and nature assessed against, incurred by or due
from Sellers or the Property (other than real estate taxes and assessments on
real property for which Purchaser has received credit under Article V) for
periods prior to closing, (ii) liabilities relating to any employees, employee
benefit plans or collective bargaining agreements of Sellers, including without
limitation compliance with all applicable laws, rules and regulations in
connection with employment, benefits and labor issues, severance obligations,
and liabilities or expenses relating to the claims disclosed by Sellers in
pursuant to the terms of this Agreement, and (iii) liabilities with respect to
any litigation, proceedings or claims against Sellers or the Property, whether
or not then pending or threatened and whether or not then known.

ARTICLE III

Title Insurance and Survey

     3.1 Delivery of Title Commitment, Lien Searches and Survey. As promptly
as practicable, after the Execution Date, Purchaser shall cause the Title
Company to deliver a Title Commitment governing the Property to Purchaser. The
cost of the Title Commitments (to the extent not subsumed within the cost of
the title premiums to be charged in connection with the issuance of the Title
Policy) shall be reimbursed to Purchaser by Seller; provided, however, in no
event shall Seller be obligated to pay any title premiums. Within three (3)
days after the Execution Date, Sellers, at Sellers’ sole cost and expense,
shall deliver all existing Surveys in Seller’s possession to Purchaser not
previously delivered.

     3.2 Title and Survey Defects. If the Title Commitment or the Surveys, or
any update of the Title Commitment or the Surveys, at any time discloses
exceptions to title or any Defects which Purchaser disapproves in its sole
discretion (other than the Assumed Debt, Leases or the Operating Agreement),
Purchaser shall so notify Sellers in writing (a “Disapproval Notice”) on or
before the end of the Inspection Period; provided, however, in the event any
update received after the end of the Inspection Period reflects a Defect, then
Purchaser’s additional notice shall be delivered within five (5) days of
Purchaser’s receipt of such update. With respect to any Defects noted in a
Disapproval Notice, Sellers (a) shall cause any such Defects which are monetary
liens of a fixed and ascertainable amount that may be removed solely by the
payment of money, including without limitation, judgment and mechanics’ liens
(“Monetary Defects"), to be removed at or prior to the Closing and shall
deposit with the Title Company releases or other appropriate instruments, in
recordable form, sufficient to cause the removal of such items from the title,
and (b) shall notify Purchaser in writing within five (5) business days after
receipt of the Disapproval Notice whether Sellers will cause all or any of such
other Defects to be removed or cured at or prior to Closing, and Sellers shall
be deemed to have elected to remove or cure all other Defects by Closing if
Sellers do not notify Purchaser to the contrary in writing within such five (5)
business day period. If Sellers elect not to remove or cure all Defects,
Purchaser may elect, in its sole discretion, (i) subject to satisfaction of the
other conditions to Closing, to close the purchase of the Property, take title
subject to the Defect noted in the Disapproval Notice that Sellers elect not to
remove or cure and deduct from the Purchase Price all costs incurred (or to be
incurred) by Purchaser in connection with its cure or removal of each such
Defect, provided, however, in the case of any Defects other than Monetary
Defects, Purchaser’s right to deduct any such costs against Purchase Price
shall be limited to $150,000.00 in the aggregate (the “Non-Monetary Defect
Cap"), or (ii) to terminate this Agreement, in which event the Earnest Money
and all interest accrued thereon shall be immediately returned to

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 Purchaser. If Sellers elect to cure or remove any Defect, then Sellers
thereafter shall be obligated to do so as long as this Agreement is in effect.
Sellers shall have ten (10) days to remove or cure any Defect that it has
elected to remove or cure (or is deemed to have elected to remove or cure).
The Closing Date shall be extended as necessary to permit the parties to
exercise their respective rights and obligations pursuant to this Section 3.2.
The Assumed Debt, Leases, the Operating Agreement, the lien for real estate
taxes which are not yet due and payable and any other exceptions to title or
Defects for which Purchaser does not serve a Disapproval Notice or which
Purchaser elects to take subject to as described in clause (i) above are
hereinafter collectively referred to as “Permitted Exceptions".
Notwithstanding anything contained herein to the contrary, Purchaser and Seller
acknowledge that (x) the existing Surveys to be delivered by Seller to
Purchaser in accordance with this Agreement may reflect certain minor
encroachments (“Minor Encroachments") which exist as of the Execution Date, (y)
that as of the date hereof, Seller has notified Purchaser that in the event
Purchaser objects to any such Minor Encroachments as a Defect pursuant to this
Section 3.2 Seller shall not elect to remove or cure any such Minor
Encroachments, and (z) Purchaser shall have the right to terminate this
Agreement without providing a Disapproval Notice with respect to such Minor
Encroachments.

     3.3 Purchaser’s Options Upon Failure to Cure. If any Defect that Sellers
have elected or are required to remove or cure (or are deemed to have elected
to remove or cure) has not been removed or cured to Purchaser’s reasonable
satisfaction at least five (5) business days prior to Closing (as may be
extended pursuant to Section 3.2 hereof), or provision for its removal or cure
by Closing has not been made to Purchaser’s reasonable satisfaction, Purchaser
may elect, in its sole discretion: (a) subject to satisfaction of the other
conditions to Closing, to close the purchase of the Property, and take title
subject to any Defects that have not been cured or removed at or before Closing
(provided that such election shall not release Sellers from their obligation to
cure or remove Defects after the Closing, which obligation shall survive the
Closing and such Defect shall not constitute a Permitted Exception); (b)
subject to satisfaction of the other conditions to Closing, to close the
purchase of the Property, cure or remove the Defects that have not been cured
or removed by Seller, and deduct from the Purchase Price all costs incurred (or
to be incurred) by Purchaser in connection with its cure or removal of any
Defect that Sellers were obligated to cure or remove; provided, however, with
respect to any Defects other than Monetary Defects, Seller’s right to deduct
any such costs shall be subject to the Non-Monetary Defect Cap; or (c) to
terminate this Agreement, in which event the Earnest Money and all interest
accrued thereon shall be immediately returned to Purchaser.

ARTICLE IV

Access and Certain Rights of Early Termination

     4.1 Inspection Period. Prior to the Execution Date, Purchaser shall have
until November 3, 2003 (the “Inspection Period”) to inspect the Property,
conduct Purchaser’s due diligence and review of the Property, the Financial
Statements and the Books and Records, and to perform such tests, surveys,
engineering studies, analyses, inspections and examinations as Purchaser, in
Purchaser’s sole and absolute discretion determines to be necessary.

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     4.2 Inspection of the Property.

          (a) Sellers and Keystone Property Trust, an Affiliate of Purchaser, are
parties to that certain letter of intent dated as of October 1, 2003 relating
to the sale and purchase of the Property. Under the terms of such letter,
Sellers agreed to deliver certain due diligence materials more particularly
described therein (the “Inspection Materials") within five (5) days of such
letter. To the extent in Sellers’ possession and not previously delivered,
Sellers agree to deliver all such Inspection Materials not later than five (5)
days after the date of this Agreement, and to promptly deliver to Purchaser any
additional Inspection Materials which first become available after the date of
this Agreement.

          (b) From and after the Execution Date, Sellers shall give Purchaser and
its representatives and consultants access to and the right to inspect, test,
survey and analyze the Property (including without limitation for purposes of
conducting environmental testing). From and after the Execution Date until
Closing and upon request by Purchaser, Sellers promptly shall provide Purchaser
with access to and copies of the Books and Records and such other material
information and data with respect to the Property which is in Sellers’
possession, including without limitation copies of Leases, the Operating
Agreement and the Contracts and such financial and other information as
Purchaser reasonably requests. Subject to the provisions of Section 10.7
hereof, Purchaser may contact Parties as Purchaser deems appropriate in
connection with its due diligence examination; provided, however, Purchaser
agrees not to contact any Tenants until after the expiration of the Inspection
Period. In connection with Purchaser’s performance of any such inspections and
tests, Purchaser agrees to use reasonable efforts to minimize any disruption to
any tenant’s use and enjoyment of the Property.

          (c) Purchaser shall indemnify, defend and hold Seller harmless, from and
against any Loss caused by the exercise by Purchaser of its rights of access
and inspection pursuant to the provisions of this Section 4.1, provided,
however, Purchaser shall not be liable for its discovery of any condition
existing as of the Execution Date. The indemnification obligations of
Purchaser under this Section 4.2(c) shall survive the Closing and/or
termination of this Agreement.

     4.3 Termination. If Purchaser, in its sole and absolute discretion,
determines that the results of its due diligence examination, including without
limitation the results of any legal, factual, physical or other inquiry or
investigation as to the physical condition, the suitability for intended use,
or any other matter related to the Property, are not satisfactory in any
respect, Purchaser may terminate this Agreement upon written notice given to
Sellers on or before the expiration of the Inspection Period. In the event of
termination of this Agreement pursuant to the terms of this Section, the
Earnest Money and all interest accrued thereon shall be immediately returned to
Purchaser. Purchaser’s failure to deliver any such written notice of its
intention to terminate shall be deemed Purchaser’s election not to terminate
this Agreement in accordance with this Section 4.3. The parties hereto
acknowledge that Purchaser may expend material sums of money in reliance on
Sellers’ obligations under this Agreement in connection with negotiating and
executing this Agreement and conducting inspections and investigations pursuant
to this Article IV, that Purchaser would not have entered into this Agreement
without the availability of the termination right contained herein and that,
accordingly, adequate consideration exists for Seller’s obligations hereunder
before the expiration of the Inspection Period. In the event of

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 such termination, this Agreement shall be null and void and all parties
shall be released from all further rights and obligations under this Agreement
(other than any right or obligation that expressly survives the termination of
this Agreement). Notwithstanding anything to the contrary contained herein, as
of the date hereof, Purchaser shall not be deemed to have approved any
documents, materials or other information which have been furnished to
Purchaser or its representatives prior to the date hereof or which are listed,
described, set forth or referred to on the Schedules hereof. Purchaser may
determine in its sole and absolute discretion the scope and nature of its due
diligence examination.

     4.4 Assumed Contracts. Provided that Purchaser has not elected to
terminate this Agreement in accordance with the provisions of Section 4.3, then
on or before expiration of the Inspection Period Purchaser shall notify Sellers
in writing of any of the Contracts that Purchaser will not assume at Closing.
Within five (5) days of receipt of such notice, but in no event prior to the
expiration of the Inspection Period, Seller shall provide written notice of
termination to all Parties under such identified Contracts and take such other
actions as reasonably required to cause the termination of such identified
Contracts. Any and all termination costs and expenses shall be paid by Seller.
Purchaser shall pay costs after closing for services rendered after the
Closing to the effective cancellation date. All Contracts not so identified to
Sellers shall be assumed by Purchaser at the Closing (the “Assumed Contracts”).

     4.5 AS IS/WHERE IS SALE.

          (a) PURCHASER ACKNOWLEDGES AND AGREES THAT PRIOR TO CLOSING PURCHASER WILL
HAVE MADE A COMPREHENSIVE INDEPENDENT INVESTIGATION AND EXAMINATION OF THE
PROPERTY AND ALL CONDITIONS ASSOCIATED THEREWITH IN ORDER TO BECOME FULLY
FAMILIAR WITH THE PHYSICAL CONDITION THEREOF AND WILL PRIOR TO CLOSING HAVE
REVIEWED THE LEASES, THE CONTRACTS, THE OPERATING AGREEMENT, SURVEYS AND THE
TITLE COMMITMENT.

          (b) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, IT IS UNDERSTOOD AND
AGREED THAT SELLERS ARE NOT MAKING AND HAVE NOT AT ANY TIME MADE ANY WARRANTIES
OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT
TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR
REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, TITLE (OTHER THAN SELLERS’ WARRANTIES OF TITLE TO BE SET FORTH IN THE
SPECIAL WARRANTY DEEDS) ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR
ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS,
VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH
GOVERNMENTAL LAWS, OR ANY OTHER MATTER OR THING WHATSOEVER REGARDING THE
PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL
AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE
IS, WITH ALL FAULTS,” EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS
AGREEMENT AND/OR IN THE SELLER CLOSING DOCUMENTS. PURCHASER HAS NOT RELIED AND
WILL NOT RELY ON, AND SELLER IS NOT

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LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES,
OR REPRESENTATIONS PERTAINING TO THE PROPERTY MADE OR FURNISHED BY SELLER, OR
ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER,
TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS
SUCH WARRANTY, GUARANTY OR REPRESENTATION IS SPECIFICALLY SET FORTH IN THIS
AGREEMENT. SELLER MAKES NO REPRESENTATIONS AND WARRANTIES WITH RESPECT TO
EITHER THE QUALITY OR QUANTITY OF ANY CONSUMABLES AND INVENTORIES CONSTITUTING
A PART OF THE PERSONALTY.

ARTICLE V

Costs and Expenses

     5.1 Title, Survey Costs and Transfer Taxes. Title and Survey costs shall
be paid as follows:

          (a) Sellers shall pay the cost of obtaining the Title Commitment
(including any chain of title searches but not any title premiums) and, subject
to the terms of this Agreement, the cost of recording any documents required to
release, cure or remove Defects;

          (b) Sellers shall pay the cost of furnishing the existing Surveys,
however, Purchaser shall bear the cost to update such Surveys or to modify such
Surveys;

          (c) Purchaser shall pay the cost of recording any other documents;

          (d) Sellers shall be solely responsible for the payment of any real
property transfer taxes, gains taxes levied or imposed upon Sellers or the
Property (but not increases in real estate tax assessments if any resulting
from this transaction), as a result of the transfers to Purchaser, sales taxes
levied or imposed upon Sellers or the Property as a result of the transfers to
Purchaser, documentary stamps and other taxes, fees or charges imposed in
connection with the conveyance of the Property or any portion thereof.
Purchaser shall pay any documentary and intangible taxes payable in connection
with Purchaser’s assumption of the Assumed Debt, if any;

          (e) Seller shall pay all filing fees and charges and any personal property
sales taxes in connection with the transfer of the Personalty to Purchaser; and

          (f) Purchaser shall pay any premiums charged in connection with obtaining
the Title Policy, including any endorsement premiums, and any premium
associated with obtaining any title endorsements required as a condition to
Purchaser’s assumption of the Assumed Debt.

     5.2 Escrow Costs. The cost of the escrow created pursuant to the Earnest
Money Escrow and the cost of any escrow created in connection with Closing
including, without limitation, any “New York Style” (i.e., a closing in which
Purchaser shall receive the Title Policy concurrent with its payment of the
Purchase Price) escrow fees, shall be divided equally between Seller and
Purchaser.

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     5.3 Other Costs. Sellers shall pay any and all costs or expenses in
connection with the termination of any Contracts to be terminated in accordance
with the terms of this Agreement and release of any mortgage indebtedness other
than the Assumed Debt. Except as otherwise set forth hereunder, Purchaser and
Sellers shall each pay their respective legal fees incurred in connection with
the drafting and negotiation of this Agreement and the Closing of the
Transactions.

     5.4 Assumed Debt. Purchaser shall pay any and all reasonable costs
associated with its assumption of the Assumed Debt, including, without
limitation, any assumption fees and any legal fees incurred by the lenders of
such Assumed Debt.

ARTICLE VI

Closing

     6.1 Closing. The closing of the Transactions (the “Closing”) shall take
place at the Miami, Florida office of the Title Company (or such other location
mutually acceptable to the Parties) commencing at 10:00 a.m., Eastern time, on
the date which is fifteen (15) days after the end of the Inspection Period (the
"Closing Date”). At Closing, the Purchase Price, adjusted as provided for
herein, shall be paid to Seller simultaneously with the exchange of the Seller
and Purchaser Closing Documents.

     6.2 Seller Closing Documents. On or prior to the Closing Date, each
Seller shall deliver, or cause to be delivered, to Purchaser the following
documents (collectively, the “Seller Closing Documents”), duly executed by the
applicable Seller (or Sellers) and the other parties thereto (other than
Purchaser) and in form and substance reasonably acceptable to Purchaser:

          (a) Special warranty deed or deeds in proper statutory form for recording,
so as to convey the entire fee simple estate of Seller in the Land and
Improvements and all other items of Real Property to Purchaser.

          (b) Assignment or assignments of all of Seller’s right, title and interest
under the Leases, all of which, to the extent the same relate to Leases or
memoranda thereof which have been recorded in appropriate land records, shall
be in form suitable for recording.

          (c) An assignment, in form suitable for recording, of all of Seller’s
right, title and interest in the Operating Agreement with respect to the
Property which is appurtenant to and running with Seller’s ownership of the
Land and Improvements.

          (d) Assignment of all of Seller’s right, title and interest in and to the
Assumed Contracts, Permits, Utility Deposits and other property owned by Seller
in connection with the Property.

          (e) Bills of Sale sufficient to transfer to Purchaser all of Seller’s
right, title and interest in and to the Personalty.

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          (f) An affidavit of each Seller stating its U.S. taxpayer identification
number and that it is a “United States person”, as defined by Sections
1445(f)(3) and 7701(b) of the Code.

          (g) The Tenant Estoppels.

          (h) An estoppel certificate or other statement in form and substance
satisfactory to Purchaser and the Title Company from the association created
pursuant to the Operating Agreement regarding Seller’s compliance with respect
to each of the Parcels owned by Seller with the terms of the Operating
Agreement, including, without limitation, that all assessments have been paid
in full through the calendar month in which Closing shall occur.

          (i) An updated Rent Roll in accordance with Section 8.1(e).

          (j) Such certificates as Purchaser may reasonably request as to the
authorization on the part of Seller of the execution, delivery and performance
of this Agreement and the authority of the Persons executing and delivering
this Agreement and the Seller Closing Documents on behalf of Seller.

          (k) A written certificate executed on behalf of Seller and addressed to
Purchaser to the effect that all of the representations and warranties of
Seller herein contained in Section 8.1 are true and correct in all material
respects as of the Closing Date (as supplemented in accordance with Section
10.2) with the same force and effect as though remade and repeated in full on
and as of the Closing Date or stating the specific respects, if any, in which
any of the representations and warranties is untrue.

          (l) Written notices (i) to the association established under the Operating
Agreement advising it of the change of ownership; (ii) to the Tenants advising
them of the change of ownership and directing them to pay Rent and other
charges under their respective Leases as directed by Purchaser; and (iii) to
each Party to each of the Assumed Contracts advising of the transfer and
assignment of Seller’s interest in the Assumed Contracts to Purchaser and
directing that future inquiries be made directly to Purchaser.

          (m) Such documents and instruments as shall be reasonably required to
substitute Purchaser for Seller as the plaintiff in legal actions contemplated
by Section 7.8(a).

          (n) Certificates issued by the Florida Secretary of State, dated not more
than fifteen (15) days prior to the Closing Date, certifying the good standing
of Seller through the Closing Date.

          (o) Copies of the Certificates of Limited Partnership of Sellers and any
amendments thereto, certified by the Secretary of State of Florida as of a date
not more than fifteen (15) days prior to the Closing Date, together with a
certificate of the general partner(s) of Seller, to the effect that the
Certificate of Limited Partnership of Seller, as certified by the Secretary of
State aforesaid has not been further amended, revised, restated, cancelled or
rescinded up to and including the Closing Date and that the attached copy of
the partnership agreement of Seller and amendments thereto is true, accurate
and complete.

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          (p) Original, or copies certified by Seller as true and correct, Leases
with respect to Parcels owned by Seller and all Books and Records.

          (q) Keys and combinations to locked compartments within the portions of
the Property owned by Seller.

          (r) An update of Schedule 8.1(f) showing amounts payable as of the Closing
Date.

          (s) The schedules referred to in Sections 7.4(b) and 7.7.

          (t) The Third Party Consents.

          (u) Any and all documents required by any lender in connection with
Purchaser’s assumption of the Assumed Debt in accordance with Section 9.2(g)
hereof.

          (v) Intentionally omitted.

          (w) Written evidence of Seller’s termination of all management agreements
presently in effect with respect to the Property and any Contracts which are
not assigned to Purchaser hereunder.

          (x) The instruments, documents or certificates as are reasonably and
customarily required by the Title Company to be executed or provided by Seller
as a condition to the issuance of the Title Policy at the Closing pursuant to
the Title Commitment, including, without limitation, owner’s affidavits,
mechanics’ lien affidavits and gap undertakings.

          (y) Any instruments, documents or certificates required to be executed by
Seller with respect to any state, county or local transfer, documentary,
intangibles or stamp taxes applicable to the conveyance of the Property
pursuant to this Agreement.

          (z) Such other documents, instruments or agreements which Seller is
required to deliver to Purchaser pursuant to the other provisions of this
Agreement or which Purchaser reasonably may deem necessary or desirable in
order to consummate the Transactions or to better vest in Purchaser title to
the Property; provided, however, that any such other document, instrument or
agreement which Purchaser reasonably deems necessary or desirable shall not
impose upon Seller any obligation or liability other than an obligation or
liability expressly imposed upon Seller pursuant to the terms of this Agreement
or pursuant to the terms of the other Seller Closing Documents specified in
this Section 6.2.

     6.3 Purchaser Closing Documents. On or prior to the Closing Date,
Purchaser shall deliver to Sellers the following documents (herein referred to
collectively as the “Purchaser Closing Documents”), duly executed by an
authorized officer on behalf of Purchaser and the other parties thereto (other
than Seller) and in form and substance reasonably acceptable to Sellers:

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          (a) Counterpart copies of the instruments delivered by Seller and
described in Sections 6.2(b) through (d) above, which shall include Purchaser’s
assumption of the matters set forth in such instruments in accordance with the
terms of this Agreement.

          (b) Such certificates as Seller may reasonably request as to the
authorization of Purchaser of the execution, delivery and performance of this
Agreement and the authority of the Persons executing and delivering this
Agreement and the Purchaser Closing Documents in their capacities as officers
of Purchaser.

          (c) A certificate issued by the Secretary of State of Delaware dated not
earlier than fifteen (15) days prior to the Closing Date certifying the good
standing of Purchaser as of the date of such certificate.

          (d) A written certificate addressed to Seller to the effect that all of
the representations and warranties of Purchaser contained in Section 8.2 are
true and correct in all material respects on and as of the Closing Date (as
supplemented in accordance with Section 10.2) with the same force and effect as
though remade and repeated in full on and as of the Closing Date or stating the
specific respects, if any, in which any of the representations and warranties
is untrue.

          (e) Any instruments, documents or certificates required to be executed by
Purchaser with respect to any state, county or local transfer, documentary,
intangibles or stamp taxes applicable to the conveyance of the Property
pursuant to this Agreement.

          (f) The instruments, documents or certificates as are customarily required
by the Title Company to be executed or provided by Purchaser as a condition to
the issuance of each Title Policy at the Closing pursuant to the Title
Commitment.

          (g) Any and all documents required by any lender in connection with
Purchaser’s assumption of the Assumed Debt in accordance with Section 9.2(g)
hereof.

          (h) Such other documents, instruments or agreements which Purchaser may be
required to deliver to Sellers pursuant to the other provisions of this
Agreement or which Sellers reasonably may deem necessary or desirable to
consummate the Transactions; provided, however, that any such other document,
instrument or agreement which Sellers reasonably deem necessary or desirable
shall not impose upon Purchaser any obligation or liability other than an
obligation or liability expressly imposed upon Purchaser pursuant to the terms
of this Agreement or pursuant to the terms of the other Purchaser Closing
Documents specified in this Section 6.3.

     6.4 Closing Statement. Seller and Purchaser shall jointly execute and
deliver a Closing Statement with respect to the Transactions.

     6.5 Failure of Closing Conditions on Individual Parcels. Notwithstanding
any provision to the contrary set forth elsewhere in this Agreement, if after
the use of best efforts to do so any Seller is unable to satisfy a condition to
Closing relating to one or more individual Parcels, including, without
limitation, delivery of any Tenant Estoppels, the consent of any lender in
connection with the Assumed Debt, Third Party Consents or fee title free and
clear of Defects, then Purchaser shall have the option, as Purchaser’s sole and
exclusive right and remedy

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 either (i) to terminate this Agreement by giving written notice of such
termination to Sellers on or before the Closing, (ii) to complete Closing
without regard to such matter and waive the requirement relating to such
matter, or (iii) to complete the Closing of all portions of the Property other
than the Parcel so affected, in which event the Purchase Price shall be reduced
by the Allocated Purchase Price with respect to such Parcel; provided, however,
in no event shall Purchaser have the right to exercise its right pursuant to
clause (iii) unless Purchaser will complete the Closing of at least eight (8)
Parcels. If Purchaser shall terminate this Agreement pursuant to the
provisions of this Section, this Agreement shall be null and void and no party
shall have any further rights or obligations under this Agreement (other than
any right or obligation that expressly survives the termination of this
Agreement), and the Earnest Money and all interest accrued thereon shall
immediately be returned to Purchaser.

ARTICLE VII

Prorations and Adjustments

     7.1 Prorations. Subject to the other provisions of this Article, the
items pertaining to the Property that are identified in this Article shall be
prorated between the parties on a per diem basis (employing the actual number
of calendar days in the period involved and a 365-day year) so that credits and
charges with respect to such items for all days preceding the Closing Date
shall be allocated to Sellers, and credits and charges with respect to such
items for all days including and after the Closing Date shall be allocated to
Purchaser. Each payment received shall be attributed to the most recent period
for which such a payment is due. The parties shall make final adjusting
payments as provided in Section 7.9 hereof. All prorations not specifically
agreed to herein shall be made in accordance with customary practice in the
county in which the Property is located. This Article VII shall survive the
Closing.

     7.2 Items to be Prorated. The following items shall be prorated between
Purchaser and Sellers as of 11:59 pm on the day immediately preceding the
Closing Date:

          (a) real property taxes and assessments (or installments thereof) based on
the most recent tax bills except those required to be paid directly to the
entity imposing the same by those Tenants who are current in all of their Lease
payment obligations on the Closing Date;

          (b) water rents and charges, if any, except those required to be paid
directly to the entity imposing the same by Tenants (who are current in all of
their Lease payment obligations on the Closing Date);

          (c) sewer taxes and rents, if any, except those required to be paid
directly to the entity imposing the same by Tenants (who are current in all of
their Lease payment obligations on the Closing Date);

          (d) actually accrued interest, if any, required to be paid to a Party on
Security Deposits;

          (e) amounts, if any, payable by Sellers or owed to Seller under the
Operating Agreement;

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          (f) annual permit, license and inspection fees, if any, on the basis of
the fiscal year for which levied, if the rights with respect thereto continue
for the benefit of Purchaser following the Closing;

          (g) fuel oil and liquid propane gas, if any, at the cost per gallon or
cubic foot most recently charged to Sellers with respect to the Property, based
on the supplier’s measurements thereof, plus sales taxes thereon;

          (h) deposits on account with any municipality having jurisdiction over the
Property (other than deposits which are in the nature of security for the
performance of work);

          (i) Purchaser shall receive a credit for any interest payable on the
Assumed Debt which accrued prior to the Closing Date;

          (j) Rents (other than Fixed and Other Tenant Charge Arrearages);

          (k) amounts paid or payable by Sellers under the Contracts to be assumed
by Purchaser;

          (l) The current balance of any reserves deposited by Sellers in connection
with the Assumed Debt; and

          (m) all other items customarily apportioned in connection with the sale of
similar properties similarly located.

     Seller shall cooperate with Purchaser in the transfer of electricity, gas,
water and other utility services from Sellers’ name to the name of Purchaser as
of the Closing Date. The parties shall endeavor to cause all such utility
providers to provide final meter readings as close to the Closing Date as
possible.

     7.3 Installment Payment of Assessments. In furtherance of Section 7.2, if
any real property assessment affects the Property at the Closing and such real
property assessment is payable in installments (whether at the election of any
Seller or otherwise), the installment relating to, or payable over, the
Applicable Closing Fiscal Period shall be apportioned between Sellers and
Purchaser as of 11:59 p.m. on the day immediately preceding the Closing Date,
and the remaining installments shall be the obligation of Purchaser.

     7.4 Adjustable Tenant Charges.

          (a) Notwithstanding anything to the contrary contained herein, no
adjustments or apportionments shall be made with respect to the expense items
listed in Section 7.2 hereof (other than real estate taxes and assessments, as
to which adjustment shall be made as set forth in Section 7.2) for the
Applicable Closing Fiscal Period or any prior fiscal period to the extent such
expense items are payable or reimbursable from funds collected as Adjustable
Tenant Charges. Sellers shall be responsible for the payment of all such
expenses incurred by them, and Purchaser shall be responsible for the payment
of all such expenses incurred by it (including without limitation real estate
taxes and assessments for which Purchaser has received credit under Section
7.2).

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          (b) At the Closing, Sellers shall assign to Purchaser any amounts required
to be paid as Adjustable Tenant Charges by Tenants which were due and payable
on or before, but remain unpaid on, the Closing Date, and there shall be no
adjustment hereunder with respect thereto. At the Closing, Seller shall
deliver to Purchaser a true and correct schedule setting forth in reasonable
detail and certifying the amount of Adjustable Tenant Charges collected and
expenditures for such items of expense (and any credits for real estate taxes)
made by Sellers for the portion of the Applicable Closing Fiscal Period which
precedes the Closing Date and for any prior fiscal period.

          (c) Any amounts collected by Purchaser after the Closing Date which relate
to Adjustable Tenant Charges payable with respect to any fiscal period ending
prior to the Applicable Closing Fiscal Period shall be remitted to Sellers.
Within ninety (90) days following the end of the Applicable Closing Fiscal
Period and from time to time thereafter as amounts are received by Purchaser
from Tenants, the aggregate amount of Adjustable Tenant Charges, if any,
collected and retained by Purchaser and Seller with respect to the Applicable
Closing Fiscal Period shall be apportioned and adjusted such that the total
amount of such Adjustable Tenant Charges received by Purchaser, on the one
hand, and Sellers, on the other hand, shall be in the same proportion as the
amount of the expense items to which such Adjustable Tenant Charges relate
which each has borne (including without limitation real estate taxes or
assessments for which either party has received credit under Section 7.2), and,
to the extent that either shall have received a greater share of the payments
with respect to Adjustable Tenant Charges, such party or parties shall promptly
settle such excess with the other.

     7.5 Fixed and Other Tenant Charge Arrearages. Subject to the provisions
of Section 7.6(c), Fixed and Other Tenant Charge Arrearages (which, for
purposes of this Section 7.5, shall include, without limitation, any real
estate taxes or special assessments or other amounts otherwise required to be
paid by a Tenant directly to the taxing authority but actually paid by Seller
to the taxing authority with respect to the amount of the taxes or special
assessments actually paid), if and when collected, shall be paid to Purchaser
as to Fixed and Other Tenant Charge Arrearages which relate to periods from and
after the Closing Date, and to Seller with respect to all other Fixed and Other
Tenant Charge Arrearages.

     7.6 Application of Rent Receipts. Notwithstanding anything to the
contrary contained herein, in determining the adjustments and apportionments
pursuant to Sections 7.4 and 7.5, the following shall apply:

          (a) Payments of Rents (other than Rents collected pursuant to Section
7.8(b)) shall be deemed to have been made by a Tenant first in payment of Fixed
and Other Tenant Charges (other than charges for Tenant Services), second to
the payment of charges for Tenant Services (and designated as such in the
Lease), third to the payment of Adjustable Tenant Charges, and last to the
payment of all other items of Rent payable by such Party.

          (b) Any amounts collected by Purchaser as Adjustable Tenant Charges,
within each category, shall be deemed to have been paid by the Tenant, first,
on account of amounts then due Purchaser for periods after the Applicable
Closing Fiscal Period, next, on account of amounts then due for the Applicable
Closing Fiscal Period and, next, on account of amounts then due for all fiscal
years prior to the Applicable Closing Fiscal Period.

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          (c) If Purchaser shall receive any Fixed and Other Tenant Charges after
the Closing Date from a Tenant who is delinquent as of the Closing Date in the
payment of Fixed and Other Tenant Charges payable under its Lease, such Fixed
and Other Tenant Charges shall be deemed to have been paid by the Tenant,
first, on account of amounts owing to Purchaser, next, on account of Fixed and
Other Tenant Charge Arrearages due to Sellers (after reduction for amounts
collected pursuant to Section 7.8(b)), and the balance remaining thereafter
shall be retained by Purchaser.

          (d) Notwithstanding anything to the contrary contained in this Section
7.6, a payment of Rent shall be applied to the payment of the item or items of
Rent designated by the party making such payment or to which such payment
otherwise clearly relates in the good faith judgment of Purchaser.

     7.7 Security and Utility Deposits. At the Closing, Sellers shall furnish
Purchaser with a schedule setting forth and certifying, as of the Closing Date,
the unapplied and unreturned portion of any security deposits which have been
deposited with Sellers or their agents by any existing Tenants (the “Security
Deposits”) and the amount of any deposits on account with any utility company
servicing the Property that will continue for the benefit of Purchaser
following Closing (“Utility Deposits”) and the amount of any deposits on
account with any Party to an Assumed Contract (“Contract Deposits"). Purchaser
shall receive a credit against the Purchase Price payable at Closing in the
amount of the Security Deposits, together with all interest, if any, accrued
thereon and required to be paid to Tenants. Purchaser shall reimburse Seller
at Closing for the amount of the Utility Deposits and Contract Deposits.
Notwithstanding the foregoing, the Parties agree that in the event any Party
holding any such Utility Deposit or Contract Deposit refunds such deposits
directly to Seller, such deposit shall remain the property of Seller and
Purchaser agrees to make any replacement Utility Deposits or Contract Deposits
as may be required in connection with establishing the utility or other service
provided by such Parties.

     7.8 Collection of Rents.

          (a) Sellers shall have the right to seek collection of any Fixed and Other
Tenant Charge Arrearages owed to it and not collected by or on behalf of it
within six (6) months following the Closing Date; provided, however, that in
seeking to collect any such Fixed and Other Tenant Charge Arrearages, Sellers
shall not be entitled to terminate any Lease or otherwise seek any remedy which
could materially affect or impact the Property or the ownership or operation
thereof other than a money judgment against the delinquent Tenant. Purchaser
shall not be required to join in any such actions or proceedings commenced by
Sellers unless the provisions of any law, rule or regulation at the time in
effect shall require that such actions or proceedings be brought by and/or in
the name of Purchaser, in which event Purchaser shall join and cooperate in
such actions or proceedings or permit the same to be brought by Sellers in
Purchaser’s name but Sellers shall pay all costs and expenses relating thereto,
including without limitation Purchaser’s reasonable legal fees in reviewing
pleadings and other materials filed in connection with such litigation.

          (b) Notwithstanding anything to the contrary contained herein, Purchaser
shall have the right at any time on or after the Closing, and whether or not
its joinder shall be required as a matter of law, to join in, or to be
substituted for any Seller in, any proceedings for the

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eviction of Tenants and/or the collection of Rent which may have been
instituted by any Seller either prior to or after the Closing, if the Tenant in
question is still in possession of the premises covered by its Lease and if, in
connection therewith, Purchaser intends to seek eviction of such Tenant,
cancellation of the Lease or repossession of the premises. If Purchaser joins
in, or is substituted for such Seller as plaintiff in any such litigation,
Purchaser shall, thereafter, assume sole liability for all costs and expenses
of such litigation, including legal fees and expenses, as may thereafter be
incurred (except as provided below) and shall thereafter control all aspects of
such proceedings, except that Purchaser shall not be entitled to waive, reduce
or otherwise compromise any claims for Rent relating to any period prior to
Closing. Such Seller in any event may, at its option, continue to participate
in such litigation. In any event, such Seller shall reimburse Purchaser for a
pro rata portion of its costs and expenses of such collection in proportion to,
but in no event in an amount greater than, the amount, if any, actually
received by such Seller after Closing as a result of such proceedings.

     7.9 Settlement of Adjustments.

          (a) Sellers and Purchaser acknowledge that it may be difficult to
calculate, as of the day immediately preceding the Closing Date, certain of the
adjustments, apportionments and payments to be made pursuant to this Article
VII. Accordingly, Sellers and Purchaser hereby agree that any adjustments,
apportionments and payments otherwise required to be made as of the Closing
Date may to the extent necessary or desirable be estimated by Purchaser and
Sellers based on the most recent available data, and, as soon as practicable
and if necessary from time to time after the Closing Date, additional
adjustments, apportionments and payments shall be made to adjust for any
differences between the actual apportionment or adjustment and the amount
thereof estimated as of the Closing Date. Any errors or omissions in computing
apportionments at the Closing shall be corrected promptly after their
discovery.

          (b) Except for amounts expressly required to be settled by assignment of
accounts or deposits pursuant to the above provisions, net prorations and
adjustments made pursuant to this Article VII as of the Closing Date and
determined as provided in subsection (a) above shall be settled in cash. From
time to time after the Closing as further adjustments are made as herein
provided, settlement thereon between Sellers and Purchaser shall be made in
cash.

          (c) Notwithstanding anything to the contrary contained herein, a final
determination of the amounts owing under this Article VII shall be made as of
the date that is twelve (12) months (or in the case of real estate taxes,
thirty (30) days after the final results of all tax appeals have been
determined) after the Closing Date, and the amounts determined as of such date
to be owing settled in cash no later than ten (10) days thereafter. No further
adjustments or payments shall be required to be made under this Article VII
thereafter (except with respect to legal proceedings for or bankruptcy claims
in respect of the collection of Rent which are pending on such date or legal
proceedings or bankruptcy claims brought by Seller under Section 7.8(b)).

     7.10 Tenant Inducements, Allowances and Pre-Closing Commissions. On or
before the Closing Date, Seller shall pay, or shall provide a credit on the
closing statement to Purchaser equal to, the amount of any and all (i) tenant
inducements, allowances, construction costs and rent abatements incurred with
respect to any lease executed prior to the Closing Date unless such

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 lease has been approved by Purchaser in writing and in connection with
such approval Purchaser has expressly agreed to assume Seller’s obligation for
any such cost or amounts, but any such credit shall not cover inducements,
allowances, construction costs and rent abatements which are used up during
periods occurring prior to closing and (ii) brokerage commissions which first
accrued prior to the Closing Date but which are payable in installments due
after the Closing Date (in which event the balance of such credit, to the
extent credited to Purchaser, will be paid by Purchaser); provided, however,
Seller shall have no obligation to provide any credit with respect to any
obligations which first accrue after the Closing Date.

     7.11 Tax Appeals. The parties acknowledge that Seller have commenced
certain real estate tax appeals with respect to the Property with respect to
both calendar years 2002 and 2003 as identified on Schedule 8.1(q). The
parties agree that any and all refunds received by Seller in connection with
calendar year 2002 shall be the property of Seller, subject to Seller’s
obligation, as landlord under the Leases to reimburse Tenants with respect to
all or portions of such refunds as may be appropriate net of out-of-pocket
expenses. The Parties further agree that any and all refunds (net of any out
of pocket expenses) received by either Seller or Purchaser with respect to
calendar year 2003 shall be prorated between Seller and Purchaser, subject to
the obligations of Seller and Purchaser, each in their capacity as landlord
under the Leases, to reimburse Tenants with respect to all or portions of such
refunds as may be appropriate, net of out-of-pocket expenses.

ARTICLE VIII

Representations and Warranties

     8.1 Seller’s Representations and Warranties. Each Seller represents and
warrants to Purchaser as follows:

          (a) Seller is a limited partnership duly formed, validly existing and in
good standing under the laws of the State of Florida with full power and
authority to execute, deliver and perform this Agreement.

          (b) The execution, delivery and performance of this Agreement by Seller
has been duly and validly authorized by all necessary action on the part of
Seller. This Agreement has been, and the Seller Closing Documents to be
executed by Seller will be, duly executed and delivered by Seller. This
Agreement constitutes, and when so executed and delivered such Seller Closing
Documents will constitute, the legal, valid and binding obligations of Seller,
enforceable against such Seller in accordance with their respective terms.

          (c) None of the execution, delivery or performance of this Agreement by
such Seller does or will, with or without the giving of notice, lapse of time
or both, violate, conflict with, constitute a default, result in a loss of
rights, acceleration of payments due or creation of any Lien upon the Property
or require the approval or waiver of or filing with any Person (including
without limitation any governmental body, agency or instrumentality) under (i)
the organizational documents of Seller or its general partner or, (ii) except
with respect to the terms of the mortgage indebtedness of such Seller (which
mortgage indebtedness will be re-paid in full at Closing except for the Assumed
Debt which shall be assumed by Purchaser in accordance with the terms of this
Agreement), any agreement, instrument or other document to which such Seller

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or its general partner is a party or by which it is bound or (iii) any
judgment, decree, order, statute, injunction, rule, regulation or the like of a
governmental unit applicable to such Seller or its general partner.

          (d) INTENTIONALLY OMITTED.

          (e) Schedule 8.1(e) is a rent roll of the Property of such Seller (the
“Rent Roll”) as of October 1, 2003 showing the identification of each rentable
space in the Parcels owned by such Seller, whether leased or not, and for each
such space, the name of the Tenant, the expiration date of the current term of
the Lease, the minimum or fixed monthly rent payable, space location number,
commencement date, square footage and the unapplied amount of any security
deposit held. Such Seller shall deliver an updated Rent Roll to Purchaser on
November 1, 2003 and on the day which is five (5) days prior to the Closing
Date. All information therein is accurate as of its date. Except as set forth
to the contrary on Schedule 8.1(e), no Tenant has paid any rent in advance
except for the current month.

          (f) Schedule 8.1(f) is a schedule of Fixed and Other Tenant Charge
Arrearages, together with any other delinquencies in Rent, showing amounts
payable as of the Execution Date by each Party, which schedule sets forth
separately and certifies the items of Rents with respect to which each such
Tenant is in arrears, the amount of each item and the period of such arrearage.

          (g) Schedule 8.1(g) contains a complete and correct list of all existing
Leases and modifications thereof and supplements thereto (including, without
limitation, side letters) regardless of whether the terms thereof have
commenced, setting forth with respect to each (i) the date thereof and of each
modification thereof and supplement thereto and (ii) the names of the Parties
thereto (including the name of the current assignee). A true and complete copy
of each Lease, together with each written modification thereof and supplement
thereto, has heretofore been furnished to Purchaser for inspection. Each such
Lease constitutes the entire agreement between Seller and each Party thereto,
and there are no oral promises or agreements amending, modifying or
supplementing the same.

          (A) There are no leases, licenses, occupancy agreements or
other rights of occupancy or use with respect to any portion of the
Property owned by Seller other than the Leases. Each of the Leases
is valid and subsisting and in full force and effect, and no Rents
or other payments or deposits are held by Seller or Seller’s agent,
except the security deposits described on the Rent Roll, Rents
prepaid for the current month, and any Adjustable Tenant Charges
which were collected by Seller, as landlord, prior to Closing which
may be adjusted with the Tenants under such Tenants’ Leases. As of
the Closing Date, no Rents due under, or any other interest in, any
of such Leases will be assigned to any party other than Purchaser,
or otherwise pledged or encumbered in any way other than in
connection with the Assumed Debt.

          (B) No Tenant has made any written claim to Seller or to
Seller’s knowledge has any other claim (i) that Seller has
defaulted in performing any of its obligations under any of the
Leases which has not heretofore been

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          cured, (ii) that any condition exists which with the passage
of time or giving of notice, or both, would constitute any such
default, (iii) that, except for reimbursement of any Adjustable
Tenant Charges, such Tenant is entitled to any reduction in, refund
of, or counterclaim or offset against, or is otherwise disputing
any Rents or other charges paid, payable or to become payable by
such Tenant, or (iv) that such Tenant is entitled to cancel its
Lease or to be relieved of any obligations thereunder.

          (C) No material default exists under any of the Leases on the
part of either Seller, as landlord, or the Tenant thereto.

          (D) There are no rent abatements or other tenant concessions
or inducements, including, without limitation, lease assumptions or
buy-outs, applicable to any of the Leases or any rights to extend
or renew any of such Leases, except as expressly set forth in the
Leases. There are no options or rights to renew in favor of any
Tenant, to extend or terminate the Leases, except as expressly set
forth in the Leases. No Tenant has any rights, options or rights
of first refusal of any kind which are currently in effect, to
purchase or to otherwise acquire the Property or any part thereof
or interest therein, except for the Lease in favor of Harper Group,
Inc. as to which written notice was served to such Tenant prior to
the Execution Date. All of the improvements to be constructed by
the landlord under each of the Leases, or as required under any
collateral agreement, plans or specifications related to the
Leases, have been fully completed and paid for.

          (h) Except as set forth on Schedule 8.1(h), to Seller’s knowledge, there
are no lease brokerage agreements, leasing commission agreements or other
agreements providing for payments of any amounts for leasing activities or
procuring tenants with respect to the Property other than as disclosed in the
Leases and any brokerage agreements disclosed in Schedule 8.1(h). Except with
respect to any commissions payable with respect to Lease renewals arising from
agreements described in Schedule 8.1(h), there are no brokerage commissions
which are payable after Closing with respect to Leases executed prior to
Closing.

          (i) The Operating Agreement constitutes the only master agreement or
operating agreement encumbering the Property. A true and complete copy of the
Operating Agreement has heretofore been furnished to Purchaser, together with
each written modification thereof and supplement thereto (including, without
limitation, side letters).

          (A) No Party under the Operating Agreement, including the
association formed in connection therewith, has made any written
claim or has any other claim, whether or not in writing (A) that
Seller has defaulted in performing any of its obligations under the
Operating Agreement which has not heretofore been cured, and (B)
that any condition exists which with the passage of time or giving
of notice, or both, would constitute any such default.

          (B) All assessments payable under the Operating Agreement are
paid in full through the Closing Date.

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          (C) No party to the Operating Agreement has any rights,
options or rights of first refusal of any kind which are currently
in effect, to purchase or to otherwise acquire the Property or any
part thereof or interest therein. All of the improvements to be
constructed by the developer or owner under the Operating
Agreement, or as required under any collateral agreement, plans or
specifications related to the Operating Agreement, have been fully
completed and paid for.

          (j) Schedule 8.1(j) contains a true and complete list of all Contracts,
including all modifications, amendments and supplements thereto (including,
without limitation, side letters). To each Seller’s knowledge, there have been
no material defaults by any Party to a Contract which have not heretofore been
cured. There has been no material default (without giving effect to any notice
and cure rights) by Seller under any Contract or any claim received by Seller
of any such default by any party thereto, which has not heretofore been cured.
A true and complete copy of each Contract, together with any amendments or
supplements thereto, has been delivered to Purchaser. Such documents
constitute the entire agreement between Seller and each Party to the Contracts
and Seller has not entered into any oral promises or agreements amending or
modifying the same.

          (k) Schedule 8.1(k) contains a list of all Permits currently maintained
with respect to the Property. Seller has not received any notice of violation
from any federal, state or municipal entity that has not been cured or
otherwise resolved to the satisfaction of such governmental entity. To
Seller’s knowledge, the permits and licenses listed on Schedule 8.1(k) are all
of the licenses and permits which are required for the present use of the
Property.

          (l) Except as disclosed in any Environmental Report listed on Schedule
8.1(l) (copies of which were previously delivered by Sellers to Purchaser),and
any environmental reports obtained by Purchaser (copies of which, if any, will
be delivered to Seller prior to Closing) neither Seller nor, to Seller’s
knowledge, any other Person has caused or permitted any Hazardous Material to
be maintained, disposed of, stored, released or generated on, under or at the
Property or any part thereof or any real property adjacent thereto except for
the storage and use of substances in quantities or concentrations in compliance
with applicable laws, including, without limitation, Environmental Laws. To
Seller’s knowledge, Seller is in compliance with, and has heretofore complied
with, all Environmental Laws with respect to the Property and, to Seller’s
knowledge, all other occupants of the Property are and have been in compliance
with the Environmental Laws. Seller has not received any notice from any
governmental unit or other person that it or the Property is not in compliance
with any Environmental Law and there are no administrative, regulatory or
judicial proceedings pending or, to the knowledge of Seller, threatened with
respect to the Property pursuant to, or alleging any violation of, or liability
under any Environmental Law. Except as set forth on Schedule 8.1(l), Seller
has not installed any underground or above ground storage tanks on, under or
about the Property and, to Seller’s knowledge, no such tanks are located on,
under or about the Property. To Seller’s knowledge, there is no facility
located on or at the Property that is subject to the reporting requirements of
Section 312 of the Federal Emergency Planning and Community Right to Know Act
of 1986 and the federal regulations promulgated thereunder (42 U.S.C. §11022).

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          (m) Schedule 2.2(b) is a summary of all Assumed Debt which identifies the
lender, initial principal balance, current outstanding balance, interest rates,
maturity dates and contains a complete and correct list of all existing loan
documents evidencing and securing such Assumed Debt to which Seller is a party
and modifications thereof and supplements thereto. A true and complete copy of
each such document (collectively, the “Assumed Loan Documents”), together with
each written modification thereof and supplement thereto, has heretofore been
furnished to Purchaser for inspection. The Assumed Loan Documents constitute
all of the documents evidencing and securing the Assumed Debt, and there are no
oral promises or agreements amending, modifying or supplementing the same. All
payments required under the Assumed Loan Documents have been paid in full and
there exists no default on the part of Seller thereunder. No lender under the
Assumed Loan Documents has made any written claim or has any other claim,
whether or not in writing (A) that Seller has defaulted in performing any of
its obligations under any of the Assumed Loan Documents which has not
heretofore been cured, and (B) that any condition exists which with the passage
of time or giving of notice, or both, would constitute any such default.

          (n) There is no litigation, including any arbitration, investigation or
other proceeding by or before any court, arbitrator or governmental or
regulatory official, body or authority which is pending or, to Seller’s
knowledge, threatened against Seller relating to the Property or the
Transactions, there are no unsatisfied arbitration awards or judicial orders
against Seller and, to Seller’s knowledge, there is no basis for any such
arbitration, investigation or other proceeding.

          (o) No condemnation proceeding or other proceeding or action in the nature
of eminent domain is pending with respect to all or any part of the Property,
and, to Seller’s knowledge, no condemnation proceeding or other proceeding or
action in the nature of eminent domain is pending with respect to any property
owned by a Party to the Operating Agreement which is the subject of such
Operating Agreement and no Taking is threatened with respect to all or any part
of the Property, or any property owned by a Party to the Operating Agreement
which is the subject of such Operating Agreement.

          (p) Each Parcel is an independent unit which does not now rely on any
facilities located on any property not included in the Property to fulfill any
municipal or governmental requirement or for the furnishing to the Property of
any essential building systems or utilities, including but not limited to,
water, electrical, plumbing, mechanical and heating, ventilating and air
conditioning systems, drainage facilities, catch basins and retention ponds,
sewage treatment facilities and the like, unless recorded easements or other
rights are in effect for the benefit of the Property for the continued use and
benefit thereof, including, without limitation those arising under the
Operating Agreement and other Permitted Exceptions. Except as may be covered
by the Permitted Exceptions (including, without limitation, the Operating
Agreement), no building or other improvement not included in any part of the
Property relies on any part of the Property to fulfill any governmental or
municipal requirement or to provide facilities to such building or improvement
for any essential building systems or utilities, including, without limitation,
electrical, plumbing, mechanical, sewage treatment or heating, ventilating and
air conditioning facilities or services.

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          (q) Copies of current real estate tax bills with respect to the Property
have been delivered to Purchaser. No portion of the Property comprises part of
a tax parcel which includes property other than property comprising all or a
portion of the Property. No application or proceeding is pending with respect
to a reduction or an increase of such taxes, except as set forth on Schedule
8.1(q). Except as may be set forth in any current tax assessment notice
delivered to Purchaser, Seller has no knowledge of any special tax or
assessment to be levied against the Property or any change in the tax
assessment of the Property.

          (r) Seller has not received notice that there is, and to Seller’s
knowledge there does not now exist, any material violation of any restriction,
condition or agreement contained in any easement, restrictive covenant or any
similar instrument or agreement affecting the Property or any portion thereof.
The parties acknowledge that no Minor Encroachment shall be deemed to be a
material violation hereunder.

          (s) Seller has not received (i) any written notice from any governmental
authority having jurisdiction over the Property or from any other Person of,
and to Seller’s knowledge there does not exist, (A) any violation of any law,
ordinance, order or regulation (including the ADA) affecting the Property, or
any portion thereof, which has not heretofore been complied with or (B) any
other obligation to any such governmental authority for the performance of any
capital improvements or other work to be performed by Seller in or about the
Property or donations of monies or land (other than general real property
taxes) which has not been completely performed and paid for and which would
adversely affect the Property; or (ii) any written notice from any insurance
company, insurance rating organization or Board of Fire Underwriters requiring
any alterations, improvements or changes at the Property, or any portion
thereof, which has not heretofore been complied with.

          (t) Except for any Third Party Consents or any lender consent in
connection with Purchaser’s assumption of the Assumed Debt, no approval,
consent, waiver, filing, registration or qualification with any third party,
including, but not limited to, any governmental bodies, agencies or
instrumentalities is required to be made, obtained or given for the execution,
delivery and performance of this Agreement or any of the Seller Closing
Documents by Seller.

          (u) Schedule 8.1(u) contains a true and accurate list of all Seller’s
policies of insurance with respect to the Property (copies of which Seller has
previously delivered to Purchaser), which policies are and will be kept in full
force to and including the Closing Date. All premiums for such insurance have
been paid in full. To Seller’s knowledge, Seller has not performed, permitted
or suffered any act or omission which would cause the insurance coverage
provided in said policies to be reduced, cancelled, denied or disputed and
Seller has not received (and has no knowledge of) any notice or request from
any insurance company or Board of Fire Underwriters (or organization exercising
functions similar thereto) canceling or threatening to cancel any of said
policies or denying or disputing coverage thereunder.

          (v) To Seller’s knowledge, none of the Tenants now occupying any of the
Property or having a current Lease affecting the Property is the subject of any
bankruptcy, reorganization, insolvency or similar proceedings.

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          (w) The Financial Statements are accurate and fairly present the financial
condition and results of operations of Seller as of the dates thereof and for
the periods referred to therein. The copy of the Operating Budget delivered by
Seller is a true and correct copy of the budget and is the only budget prepared
in connection with the Property. Such budget is Seller’s reasonable estimate
of the projected revenues and expenses of the Property and may vary from actual
results.

          (x) Seller has no employees at the Property. There are no collective
bargaining or union agreements with respect to the employees at Property.
Seller does not maintain or sponsor any employee benefit plan, including,
without limitation, any plans subject to the Employer Retirement Income
Security Act of 1974, as amended. There are no pending claims or, to Seller’s
knowledge, any threatened claim against Seller by any employee or former
employee whose employment related to the Property.

          (y) Seller has timely filed all tax returns with respect to Seller’s
obligation to pay Rental Tax (as hereinafter defined).

          (z) All of the documents and Books and Records that have been delivered or
made available to Purchaser by or on behalf of such Seller (including the
Inspection Materials), are true, correct and complete copies and have not been
modified or amended, except as specifically noted therein. All information set
forth in the exhibits and schedules to this Agreement is true, correct and
complete in all material respects. Seller does not have any actual knowledge
of any significant adverse fact or condition relating to the Property, which
has not been specifically disclosed in writing by Seller to Purchaser.

          (aa) Seller is not the subject of any bankruptcy, reorganization,
insolvency or similar proceedings, nor has Seller received any written notice
or threat regarding the filing of any involuntary petition for bankruptcy,
reorganization, insolvency or similar proceedings against Seller.

          (bb) Any liability or obligation secured by a mortgage, or other liens
against any Parcel other than the Assumed Debt, is payable at the Closing and
Seller agrees to pay the same at or prior to the Closing.

     8.2 Purchaser Representations and Warranties. Purchaser represents and
warrants to Seller as follows:

          (a) Purchaser is a limited partnership duly organized, validly existing
and in good standing under the laws of the State of Delaware with full right,
power and authority to execute, deliver and perform this Agreement.

          (b) The execution, delivery and performance by Purchaser of this Agreement
have been duly and validly authorized by all requisite action on the part of
Purchaser. This Agreement has been, and the Purchaser Closing Documents will
be, duly executed and delivered by Purchaser. This Agreement constitutes, and
when so executed and delivered the Purchaser Closing Documents will constitute,
the legal, valid and binding obligations of Purchaser, enforceable against it
in accordance with their terms.

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          (c) None of the execution, delivery or performance of this Agreement or
the Purchaser Closing Documents by Purchaser does or will, with or without the
giving of notice, lapse of time or both, violate, conflict with, constitute a
default or result in a loss of rights under or require the approval or waiver
of or filing with any Person (including without limitation any governmental
body, agency or instrumentality) under (i) the organizational documents of
Purchaser or its general partner, (ii) any material agreement, instrument or
other document to which Purchaser is a party or by which Purchaser or its
general partner is bound or (iii) any judgment, decree, order, statute,
injunction, rule, regulation or the like of a governmental unit applicable to
Purchaser or its general partner.

          (d) Purchaser is not the subject of any bankruptcy, reorganization,
insolvency or similar proceedings, nor has Purchaser received any written
notice or threat regarding the filing of any involuntary petition for
bankruptcy, reorganization, insolvency or similar proceedings against
Purchaser.

     8.3 Survival of Representations and Warranties. The representations and
warranties of the parties set forth in Sections 8.1 and 8.2 shall survive
Closing, except as follows:

          (a) Seller’s representations and warranties set forth in Sections 8.1(e),
(f), (g), (i), (j), (k), (l), (m), (n), (o), (q), (r), (s), (t), (v), (x), (y),
(z) and (aa) shall survive Closing for a period of twelve (12) months.

          (b) Seller’s representations and warranties set forth in Section 8.1(h),
shall expire twelve (12) months after the date of each lease renewal, lease
extension or other event which results in the landlord’s obligation under the
Lease to pay any brokerage or other commission thereunder.

          (c) Seller’s representations and warranties set forth in Section 8.1(p),
(u), (w) and (bb) shall not survive Closing.

          (d) Notwithstanding anything contained in Sections 8.3(a) and (b) above,
Seller shall have no liability for Seller’s breach of any representation or
warranty referenced herein in the event Purchaser fails to deliver written
notice of such breach to Seller prior to the expiration date of such
representation and warranty as referenced in such Sections 8.3(a) and (b).

          (e) In addition to any other limitation on the Seller’s representations
and warranties in this Agreement, and notwithstanding anything to the contrary
herein contained, Seller shall have no liability hereunder to the Purchaser
with respect to any representation or warranty of the Seller hereunder to the
extent, but only to the extent, that the representation or warranty of Seller
has been confirmed or verified, without except or qualification, by any
estoppel certificate or other instrument executed and delivered at or in
connection with the closing by a third party as required or contemplated
herein, i.e., a tenant or lender estoppel or other instrument by and/or between
the Purchaser, a tenant and/or a lender.

          (f) Purchaser acknowledges that in the event (i) any Environmental Report
delivered by Seller or environmental report obtained by Purchaser discloses any
matter which requires environmental remediation, and (ii) Purchaser closes on
the acquisition of the Parcel so affected,

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then Seller shall have no obligation either to perform the remediation
disclosed in such reports or reimburse Purchaser for the cost of such
remediation and if such remediation is actually required, it shall be a
Purchaser obligation.

ARTICLE IX

Conditions to Closing

     9.1 Conditions to Seller’s Obligations. Seller’s obligation to close is
subject to satisfaction of each of the following conditions (any of which may
be waived in writing by Seller in its sole discretion):

          (a) Compliance with Agreement. On the Closing Date, all of the covenants
and agreements to be complied with or performed by Purchaser under this
Agreement on or before the Closing shall have been complied with or performed
in all material respects.

          (b) Accuracy of Representations and Warranties. The representations and
warranties made by Purchaser in this Agreement (without regard to the
materiality qualifications contained therein and supplementation in accordance
with Section 10.2) shall be true and complete in all material respects on and
as of the Closing Date.

     9.2 Conditions to Purchaser’s Obligations. Purchaser’s obligation to
close is subject to satisfaction of each of the following conditions (any of
which may be waived by Purchaser in its sole discretion):

          (a) Compliance with Agreement. On the Closing Date, all of the covenants
and agreements to be complied with or performed by Seller under this Agreement
on or before the Closing shall have been complied with or performed in all
material respects.

          (b) Accuracy of Representation and Warranties. The representations and
warranties made by Seller in this Agreement (without regard to the materiality
qualifications contained therein and supplementation in accordance with Section
10.2) shall be true and complete in all material respects on and as of the
Closing Date.

          (c) Tenant Estoppels Obtained. The Tenant Estoppels shall have been
obtained in accordance with Section 10.3.

          (d) Third Party Consents and Releases/Directions Obtained. The Third
Party Consents and the Releases/Directions shall have been obtained.

          (e) Issuance of Title Policy. The Title Company shall have issued, or be
irrevocably committed to issue, the Title Policy.

          (f) No Litigation. At Closing, there is no litigation, including any
arbitration, investigation or other proceeding, pending by or before any court,
arbitrator or governmental or regulatory official, body or authority nor any
decree, order or injunction issued by any such court, arbitrator or
governmental or regulatory official, body or authority and remaining in effect
which does or is likely to prevent or hinder the timely consummation of the
Closing or materially adversely affect the Property.

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          (g) Assumed Debt. Purchaser shall have received, in form and substance
satisfactory to Purchaser (i) an estoppel certificate from each lender with
respect to all Assumed Debt, and (ii) a consent to the transfer of the Property
and the assumption of the Assumed Debt executed by each such lender. The
parties hereby acknowledge and agree that Sellers shall have no obligation to
incur any cost in connection with any such lender’s consent to such assumption;
provided, however, Sellers acknowledge that Sellers may be required after
Closing to continue to be liable for matters which first arise prior to the
Closing Date pursuant to the terms of any environmental indemnities or any
carve-outs or exceptions to the non-recourse provisions set forth in the
Assumed Loan Documents (the “Non-Recourse Carve-Outs”). Purchaser acknowledges
that it may be a condition to Purchaser’s assumption of the Assumed Debt that
Purchaser may be liable for any matters which first arise from and after the
Closing Date pursuant to the terms of any environmental indemnities or the
Non-Recourse Carve-Outs.

ARTICLE X

Additional Covenants

     10.1 Conduct of Business Pending Closing. From the date hereof until the
Closing, Sellers shall (a) pay its debts with respect to the Property (or in
good faith contest the same) and perform its obligations as they become due
including, without limitation the Assumed Debt; (b) maintain the Property in
the same manner and condition that exists on the date hereof, as such condition
shall be altered by reason of Casualty, Taking and/or normal wear and tear; (c)
without the express written consent of Purchaser, not (i) enter into any new or
additional Lease, or extend, renew or modify, consent to any assignment of or
sublease in respect of, or waive any right under any Lease, other than renewals
or extensions resulting from the exercise by a Tenant of a currently existing
renewal or extension option, (ii) cancel or terminate any Lease or take any
action to enforce any Lease which would have the effect of canceling or
terminating the same, (iii) enter into a reciprocal easement or similar
agreement or amend or modify, consent to the assignment of or waive any
material right under the Operating Agreement, (iv) make any alterations to the
Property or enter into any new contracts or extend or renew or cancel any
Contract relating to capital expenditures, (v) enter into any other new
contracts or extend, renew or cancel, consent to the assignment of or waive any
material right under any other Contract, (d) not sell, transfer, exchange,
further encumber or grant interests (including easements) in the Property or
any part thereof or engage in negotiations or discussions with, or otherwise
solicit or assist, any third party relating to the acquisition by such third
party of the Property or the equity interests in Seller or any part thereof,
and (e) not otherwise take any action which could or would render inaccurate
any of the representations or warranties made by Seller in this Agreement; and
(f) otherwise operate the Property in the ordinary course consistent with
current practice. Seller agrees that in the event of a breach of Item 10.1(d)
hereof, Seller shall reimburse Purchaser for all actual third party
out-of-pocket costs due diligence costs and expenses incurred by Purchaser in
connection with its underwriting and investigation of the Property if Purchaser
as a result does not purchase all or part of the Property.

     10.2 Supplemental Disclosure. From the date hereof through Closing, each
of Seller and Purchaser shall have the continuing obligation to promptly
supplement or amend the Schedules with respect to the representations and
warranties made by it to reflect any matter hereafter arising or discovered
which, if existing or known at the date hereof, would have been required to be
set forth herein or described thereon. Without limiting the foregoing, if any

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 Leases or Contracts, or amendments thereto, are hereafter entered into in
accordance with the terms of this Agreement, Seller shall give Purchaser prompt
written notice thereof and the appropriate exhibits or schedules hereto shall
be updated and amended accordingly.

     10.3 Tenant Estoppel Certificates. Prior to the Closing Date, Seller
shall furnish to Purchaser, an estoppel certificate (dated not more than
fifteen (15) days prior to Closing) completed by each Tenant on the form
attached hereto and incorporated herein as Exhibit C (the “Tenant Estoppels”),
or such other form as may be expressly required under the terms of any Tenant’s
Lease. Seller shall use its best efforts to obtain and deliver the Tenant
Estoppels. Tenant Estoppels shall only be acceptable and delivered in
satisfaction of this Section 10.3 if there has been no material deviation, in
Purchaser’s sole judgment, from the applicable form required hereunder and the
information set forth in each such Tenant Estoppel is consistent with the
information provided to Purchaser in connection with Purchaser’s inspection of
the Property. Sellers shall have no obligation to solicit any such Tenant
Estoppels until after the expiration of the Inspection Period. Notwithstanding
the foregoing, it shall be a condition to Closing that (i) Seller obtain Tenant
Estoppels which satisfy the provisions of this Section 10.3 from Tenants which
in the aggregate occupy at least ninety percent (90%) of the rentable area of
all Improvements constituting the Property excluding rentable area in Building
4 leased to Eagle, and (ii) Seller deliver to Purchaser an estoppel certificate
executed by Seller (the “Seller Estoppels”) with respect to each Lease for
which an acceptable Tenant Estoppel is not received, which Seller Estoppels
shall be in form and substance similar to the form of Tenant Estoppel attached
hereto as Exhibit C. Seller shall continue to use reasonable efforts after
Closing to deliver any missing Tenant Estoppel for which Seller delivered a
Seller Estoppel hereunder. In the event Seller fails to deliver one or more
Tenant Estoppels, Purchaser shall have the right to extend the Closing in
accordance with this Section 10.3 in order to permit Seller to obtain and
deliver such Tenant Estoppels, but in no event beyond December 15, 2003.

     10.4 Consents/Waivers.

          (a) Seller covenants and agrees that in the event (i) any Tenant has a
right of first refusal, right of first offer or other consent rights with
respect to the transfer of any portion of the Property or the assignment of
such Tenant’s Lease to Purchaser in accordance with this Agreement, (ii) the
holder of any mortgage encumbering any portion of the Property (other than
holder of mortgages securing the Assumed Debt) has any right to approve the
terms and conditions upon which Seller shall transfer any portion of the
Property or with respect to the release of such mortgage and other liens
encumbering the Property, (iii) constituent partners of any Seller have consent
rights, approval rights, rights of first refusal, rights of first offer or any
buy/sell rights with respect to any Seller’s sale of the Property to Purchaser
as set forth in this Agreement, (iv) any Party to an Assumed Contract has a
right to approve the assignment of such Assumed Contract to Purchaser as set
forth hereunder, or (v) any Party to the Operating Agreement, including, any
association formed in connection therewith, or any other Person shall have any
right to approve the sale of the Property or shall have a right of first
refusal, right of first offer or other consent right, then Seller agrees, at
its sole cost and expense, to obtain from each such Tenant, mortgage holder,
constituent partner or Party (each such party being hereinafter referred to as
a “Consenting Third Party") either (a) a waiver of the rights of such
Consenting Third Party, or (b) a written consent to the sale, transfer or
assignment of the

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Property, Lease, Contract or other interest of such Consenting Third Party
with respect to the Property (each a “Third Party Consent”).

          (b) Notwithstanding the foregoing, in the event Seller fails to obtain
prior to Closing any Third Party Consent such that Seller is unable to sell,
assign, transfer or convey any portion of the Property, then Purchaser shall
have the right, in its sole discretion, to either (i) terminate this Agreement
in which event Escrow Agent shall return the Earnest Money (including any
interest thereon) to Purchaser, or (ii) consummate the Closing of Purchaser’s
acquisition of all portions of the Property except for the Property for which
Seller failed to obtain the Third Party Consent, in which event the Purchase
Price shall be reduced by the Allocated Purchase Price with respect to such
Property. In the event Purchaser shall elect to terminate this Agreement in
accordance with clause (i) above, Sellers shall reimburse Purchaser for all
out-of-pocket costs and expenses incurred by Purchaser as of the date of such
termination in connection with Purchaser’s due diligence, underwriting and
negotiation of this Agreement and the Transactions, including without
limitation, legal fees and expenses and the cost of any other third party
consultant; provided, however, in no event shall such reimbursement obligation
exceed the sum of $265,000 but in no event shall Seller have any obligation to
reimburse Purchaser in the event Purchaser shall close on its acquisition of
one or more Parcels.

     10.5 Rental Taxes. Sellers shall be responsible for payment of all
rental, transaction privilege, business privilege, and similar taxes, imposed
by any state or local taxing authority (“Rental Taxes”) upon Sellers’ receipt
of Rents prior to Closing. Purchaser shall be responsible for payment of all
Rental Taxes based on Rents which it receives after Closing. The amount of
Rental Taxes paid by the party receiving the Rents shall be deducted therefrom
in determining amounts to be prorated or adjusted under Article VII hereof.
Seller covenants and agrees to timely file any and all Rental Tax returns as
may be required with respect to any period occurring prior to or through the
calendar month in which Closing occurs. The Parties agree to execute any and
all documentation required by the State of Florida as necessary to evidence the
change in ownership of the Property and that Purchaser shall be the new tax
payer with respect to any Rental Taxes payable in connection with the Property.

     10.6 Record Retention. After the Closing, Seller shall provide Purchaser
with reasonable access to the Books and Records and, at Purchaser’s cost,
copies of all or any portion thereof. Seller either shall retain the Books and
Records until the third anniversary of the date hereof or notify Purchaser of
its desire to dispose of the Books and Records and turn them over to Purchaser
if Purchaser so requests.

     10.7 Publicity. In no event shall either Seller or Purchaser issue any
press release or otherwise disclose any non-public information regarding this
Agreement or the Transactions unless the other party has consented thereto in
writing (and Seller and Purchaser agree not unreasonably to withhold or delay
such consent) and to the form and substance of any such statement or
disclosure; provided, however, that nothing herein shall be deemed to limit or
impair in any way any party’s ability to disclose the details of or information
concerning this Agreement, the Transactions or the Property to such party’s
attorneys, accountants or other advisors or to the extent such party reasonably
deems necessary or desirable pursuant to any court or governmental order,
applicable securities or other laws or regulations or financial reporting
requirements, to obtain the Third Party Consents, Tenant Estoppels or financing
for the

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 acquisition of the Property and to assess the Property in connection with
Purchaser’s due diligence examination. Further, either party may disclose any
information regarding this Agreement or the Transactions to its constituent
partners, members or shareholders, as the case may be (and to counsel for such
constituent partners, members and shareholders) and as otherwise necessary to
comply with the terms of this Agreement. If for any reason this Transaction is
not consummated, Purchaser will promptly return to Seller all originals and
copies of documents, reports and financial and other information relating to
the Property and to Seller which Seller has furnished to Purchaser.

     10.8 Assistance Following Closing. From and after the Closing, Seller
shall provide reasonable assistance to Purchaser in connection with the
preparation of financial statements and bills and the adjustment of losses and
claims and the enforcement or settlement of any such claims.

     10.9 Further Assurances. Each of Seller and Purchaser agree, at any time
and from time to time after the Closing, to execute, acknowledge where
appropriate and deliver such further instruments and other documents (and to
bear its own costs and expenses incidental thereto) and to take such other
actions as the other of them may reasonably request in order to carry out the
intent and purpose of this Agreement; provided, however, that neither Seller
nor Purchaser shall be obligated, pursuant to this Section 10.9 to incur any
expense of a material nature and/or to incur any material obligations in
addition to those set forth in this Agreement and/or its respective Closing
Documents.

     10.10 Reports. For the period of time commencing on the Execution Date
and continuing through the first anniversary of the Closing Date, and without
limitation of the other document production otherwise required of Sellers
hereunder, Sellers shall, from time to time, upon reasonable advance written
notice from Purchaser, provide to Purchaser and its representatives: (i)
access to all financial and other information pertaining to the period of
Sellers’ ownership and operation of the Property, which information is relevant
and reasonably necessary, in the opinion of Purchaser’s outside, third party
accountants (“Accountants") to enable Purchaser and its Accountants to prepare
financial statements in compliance with any and all of (a) Rule 3-05 or Rule
3-14 of Regulation S-X of the Securities and Exchange Commission (the
"Commission"), as applicable to Purchaser; (b) any other rule issued by the
Commission and applicable to Purchaser; and (c) any registration statement,
report or disclosure statement filed with the Commission by, or on behalf of
Purchaser; and (ii) a representation letter, in form specified by, or otherwise
satisfactory to the Accountants, signed by the individual(s) responsible for
Sellers’ financial reporting, as prescribed by GAAS, which representation
letter may be required by the Accountants in order to render an opinion
concerning Sellers’ financial statements.

     10.11 Reasonable Efforts. Purchaser and Seller shall each use their good
faith efforts to fulfill all covenants and satisfy all conditions to Closing
hereunder; provided, however, the foregoing covenant shall not be deemed to
expand any liability which either party may have hereunder.

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ARTICLE XI

Indemnification

     11.1 Indemnification by Seller. From and after the Closing, Sellers shall
indemnify, defend and hold harmless Purchaser and its trustees, shareholders,
directors, officers, members, partners, employees, representatives and agents,
and their respective successors and assigns (collectively, the “Indemnified
Purchaser Persons”) from and against any Losses (subject to the terms of this
Agreement) incurred or suffered by any Indemnified Purchaser Person that
results from, relates to or arises out of (a) the breach or inaccuracy of any
representation or warranty made by Seller in this Agreement or the Seller
Closing Documents, (b) the breach or non-fulfillment by Sellers of any of the
covenants or agreements of Seller under this Agreement or the Seller Closing
Documents, (c) claims made by any Tenant under the Leases, or by any Party
under the Assumed Contracts, that relate to any actions or events first
occurring, or obligations first accruing, prior to the Closing Date, (d) any
event, occurrence or accident at any time prior to the Closing Date relating to
the Property, or (e) Seller’s Liabilities.

     11.2 Indemnification by Purchaser. From and after the Closing, Purchaser
shall indemnify, defend and hold harmless each Seller and its shareholders,
directors, officers, representatives, members, partners employees and agents,
and their respective successors and assigns (collectively the “Indemnified
Seller Persons”) from and against any Losses (subject to the terms of this
Agreement) incurred or suffered by any Indemnified Seller Person that results
from, relates to or arises out of (a) the breach or inaccuracy of any
representation or warranty made by Purchaser in this Agreement or the Purchaser
Closing Documents, (b) the breach or non-fulfillment by Purchaser of any of the
covenants or agreements of Purchaser under this Agreement or the Purchaser
Closing Documents, (c) claims made by any Tenant under the Leases, or by any
Party under the Assumed Contracts, that relate to any actions or events first
occurring, or obligations first accruing, after the Closing Date, (d) any
event, occurrence or accident at any time after the Closing Date relating to
the Property, or (e) the Assumed Liabilities.

     11.3 Indemnification Procedure.

          (a) The indemnified party (the “Indemnified Party") shall give the
indemnifying party (the “Indemnifying Party") prompt written notice of any
Losses incurred (or likely to be incurred) by the Indemnified Party with
respect to any claim or assertion of claims by a third party (“Third Party
Claim") for which indemnification is available hereunder and the Indemnifying
Party may (i) prior to the commencement of any proceedings in connection with
such Losses, undertake the negotiation of any resolution of the dispute
relating to such Losses, including without limitation any settlement or
release, or (ii) undertake the defense of any proceeding (including any
alternative dispute resolution proceeding) regarding such Losses by selecting
legal counsel who shall be reasonably acceptable to the Indemnified Party.

          (b) Provided the Indemnifying Party shall have undertaken the Indemnified
Party’s defense of a Third Party Claim with legal counsel reasonably acceptable
to the Indemnified Party, and shall have so notified the Indemnified Party, the
Indemnified Party shall be entitled to participate at its own expense in the
aforesaid negotiation or defense of any claim relating to such Losses (subject
to reimbursement to the limited extent provided in

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Section 11.3(e)), but such negotiations or defense shall be controlled by
counsel to the Indemnifying Party.

          (c) The Indemnifying Party shall not be liable for payments relating to
the resolution of any dispute or any settlement of any litigation or proceeding
effected without the written consent of the Indemnifying Party, which consent
shall not be unreasonably withheld. The Indemnifying Party shall not, without
the Indemnified Party’s written consent, resolve any dispute or settle or
compromise any claim regarding Losses from a Third Party Claim or consent to
entry of any judgment which would impose an injunction or other equitable
relief upon the Indemnified Party or which does not include an unconditional
release by the claimant or the plaintiff of the Indemnified Party from all
liability in respect of any such Losses.

          (d) Each party hereto agrees to give the other party prompt notice of any
Losses (or possible Losses) asserted against it which might be Losses for which
indemnity could be sought against the other party, but the failure to give such
notice shall not release the Indemnifying Party of its obligations under this
Section 11.3, except to the extent of the actual harm suffered as a result
thereof.

          (e) In the event the Indemnifying Party fails to timely undertake
negotiation of any dispute or defend, contest or otherwise protect against any
claim or suit with respect to a Third Party Claim, and to so notify the
Indemnified Party, the Indemnified Party may, but will not be obligated to,
defend, contest or otherwise protect against the same, and make any compromise
or settlement thereof and recover the entire costs thereof from the
Indemnifying Party, including reasonable attorneys’ and experts’ fees,
disbursements and all amounts paid as a result of such claim or suit or the
compromise or settlement thereof; provided, however, that if the Indemnifying
Party undertakes negotiation of any dispute and the defense of such matter in
accordance with and subject to the above terms of this Section 11.3, the
Indemnified Party shall not be entitled to recover from the Indemnifying Party
for its costs incurred thereafter in connection therewith other than the
reasonable costs of investigation undertaken by the Indemnified Party and
reasonable costs of providing assistance. The Indemnified Party shall
cooperate and provide such assistance as the Indemnifying Party may reasonably
request in connection with the negotiation of any dispute and the defense of
the matter subject to indemnification and the Indemnifying Party shall
reimburse the Indemnified Party’s reasonable costs incurred thereafter in
connection with such cooperation and assistance.

ARTICLE XII

Defaults and Remedies

          (a) Default by Purchaser. If Purchaser defaults under this Agreement or
breaches any of its obligations hereunder, Seller, as its sole and exclusive
remedy, shall have the right to terminate this Agreement and receive payment of
the Earnest Money as liquidated damages and not as a penalty. No such
termination hereunder shall discharge Purchaser from its indemnification
obligations set forth in Section 4.2(c) hereof.

          (b) Default by Seller. In the event that Seller shall be in default of
any of its obligations hereunder, Purchaser shall be entitled, as its sole
remedy, either (a) to terminate this Agreement and to receive the return of the
Earnest Money, which return shall release Seller from

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any and all liability hereunder, (b) to enforce specific performance of
Seller’s obligation hereunder, including the obligation to convey the Property
to Purchaser, or (c) to exercise such rights and remedies, if any, as are
expressly provided for in this Agreement with respect to the specific breach or
default in question; provided, however, that in the event of a willful default
by Seller, Purchaser shall have the right to bring an action for damages other
than punitive damages.

ARTICLE XIII

Condemnation and Destruction

     13.1 Casualty or Condemnation in General.

          (a) If prior to the Closing Date, any Parcel shall be the subject of a
Taking or Casualty, Sellers shall promptly inform Purchaser of same.

          (b) If prior to the Closing Date any Parcel shall be the subject of a
Substantial Taking or a Substantial Casualty, Purchaser may by written notice
delivered to Seller on or before the Closing Date, elect as its sole remedy on
account thereof, either (i) to terminate this Agreement, and the rights of the
parties hereto, in which event this Agreement (other than any right or
obligation that expressly survives the termination of this Agreement) shall
terminate as of the date of delivery of such notice and the Earnest Money and
all interest accrued thereon shall be immediately delivered to Purchaser; (ii)
to continue this Agreement in effect, in which event Seller (A) shall transfer
and assign to Purchaser, at the Closing, its full right, title and interest in
and to any insurance proceeds (and shall pay in cash to Purchaser all
deductibles owing in respect thereof) or condemnation awards with respect
thereto, and shall cooperate in all reasonable respects with Purchaser, at
Purchaser’s sole cost and expense, in connection with the collection thereof,
to the extent not collected at the Closing, and (B) to the extent any insurance
proceeds or condemnation awards shall have been received by Seller prior to the
Closing, remit to Purchaser the full amount thereof so collected, less, in each
such case, (i) reasonable costs of collection thereof (other than the cost of
deductibles), and (ii) amounts, if any, applied by Seller prior to Closing to
the preservation, repair or restoration of the Property, or (iii) to continue
this Agreement in effect with respect to all Property other than the Parcel
which is the subject of the Substantial Taking or Substantial Casualty, in
which event the Purchase Price shall be reduced by the Allocated Purchase Price
with respect to such Property.

          (c) If prior to the Closing Date, the Property, or any portion thereof, is
(i) the subject of a Taking (other than a Substantial Taking) or (ii) the
subject of a Casualty (other than a Substantial Casualty), this Agreement shall
nevertheless remain in full force and effect with no abatement of the Purchase
Price to be delivered to Seller on account thereof and Purchaser shall
nevertheless acquire the Property or remaining balance thereof pursuant to the
provisions hereof. In such event, any insurance proceeds or condemnation
awards shall be applied and paid in the same manner and subject to the same
provisions set forth above as are applicable in a case of a Substantial
Casualty or a Substantial Taking as to which Purchaser has elected nevertheless
to continue this Agreement in effect.

     13.2 Adjustment of Claims and Condemnation Proceedings. If a Taking or
Casualty shall occur, Sellers shall initiate all actions required to adjust,
compromise and collect the awards payable by the condemning authority or the
proceeds payable under the applicable policy or

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 policies of casualty insurance. Purchaser shall have the right (but not
the obligation) to participate with Sellers in the initiation of all such
actions and, in any event, Seller shall consult with, and keep Purchaser
advised of, Sellers’ progress in connection therewith. Seller shall not agree
to any settlement of the awards or insurance proceeds payable in connection
with any such Taking or Casualty (or enter into any agreement in lieu of a
Taking) without Purchaser’s approval, which approval shall not be unreasonably
withheld or delayed.

ARTICLE XIV

Brokerage Commission

     Sellers, on the one hand, and Purchaser, on the other, represent and
warrant each to the other that they have not dealt with any real estate broker,
sales person or finder in connection with this transaction other than Edward W.
Easton and Edward J. Easton of Easton & Associates (collectively, the
“Brokers") and that no other person initiated or participated in the
negotiation of this Agreement or showed the Property to Purchaser, and to the
knowledge of Sellers and Purchaser, except for Seller’s obligation to pay such
Broker there are no real estate brokerage commissions, finder’s fees, or other
similar fees due any person or entity on account of or as a result of this
transaction, except as set forth herein. Sellers and Purchaser each agree to
indemnify, defend and hold the other harmless from and against any loss, cost,
liability or expense suffered or incurred by the other party as a result of a
claim or claims for brokerage commissions, finder’s fees or other similar fees
from any party or firm that is based on the act or omission of the party in
breach of the above warranty. The representations, warranties and covenants
contained herein shall expressly survive Closing.

ARTICLE XV

Miscellaneous

     15.1 Notices. Notices must be in writing and sent to the party to whom or
to which such notice is being sent, by (a) certified or registered mail,
postage prepaid and return receipt requested, (b) commercial overnight courier
service, (c) delivered by hand with receipt acknowledged in writing or (d)
facsimile, in each case addressed as follows:

          To Purchaser:

Keystone Operating Partnership, L.P.

c/o Keystone Property Trust

200 Four Falls, Suite 208

West Conshohocken, Pennsylvania 19428

Attention: Saul A. Behar, Esq.

Fax No.: (484) 530-0131

- 40 -

 

          with a copy thereof to:

Neal, Gerber & Eisenberg

Two North LaSalle Street

Suite 2200

Chicago, Illinois 60602

Attention: Kenneth Harris, Esq.

Fax No.: (312) 269-1747

          To Any Seller:

International Place Associates II, Ltd.

International Place Associates III, Ltd.

International Place Associates IV, Ltd.

c/o The Easton Group

10165 N.W. 19th Street

Miami, Florida 33172

Attention: Edward W. Easton & Edward J. Easton

Fax No.: (305) 593-5277

          with a copy to:

Peckar & Abramson

One Southeast Third Avenue, Suite 3050

Miami, Florida 33131

Attention: Donald S. Rosenberg, Esq.

Fax No.: (305) 375-0328

All notices (i) shall be deemed to be delivered and effective (A) upon personal
delivery to and receipt by the person to whom delivered (or upon refusal to
accept delivery), or (B) upon receipt or refusal to accept delivery, if
deposited in United States registered or certified mail, return receipt
requested, or (C) upon receipt (or upon refusal to accept delivery) if
deposited with an overnight express courier for next day delivery, or (D) the
date transmitted if sent by facsimile during business hours at the location to
be received (otherwise on the next business day) provided that a confirmation
copy is also deposited in the United States mail and (ii) may be given either
by a party or by such party’s attorneys. The cost of delivery shall be borne
by the party delivering the notice.

     15.2 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and all of which shall
constitute a single document when at least one counterpart has been executed
and delivered by each party hereto.

     15.3 Amendments. Except as otherwise provided herein, this Agreement may
not be changed, modified, supplemented or terminated, except by an instrument
executed by both Seller and Purchaser.

     15.4 Waiver. Each party shall have the right exercisable in its sole and
absolute discretion, but under no circumstances shall be obligated, to waive or
defer compliance by any

- 41 -

 

 other party with its obligations hereunder or to waive satisfaction of any
conditions contained herein for its benefit. No waiver by any party of a
breach of any covenant or a failure to satisfy any condition shall be deemed a
waiver of any other or subsequent breach or failure to satisfy any other
condition. All waivers of any term, breach or condition hereof must be in
writing.

     15.5 Successors and Assigns. Subject to the provisions of Section 15.9,
the terms, covenants, agreements, conditions, representations and warranties
contained in this Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and assigns.

     15.6 Third Party Beneficiaries. The provisions of this Agreement are made
for the benefit of the parties hereto (and the Indemnified Purchaser Persons
and the Indemnified Seller Persons with respect to Sections 11.1 and 11.2), and
their respective successors in interest and assigns and are not intended for,
and may not be enforced by, any other person or entity.

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

     15.8 Governing Law. This Agreement has been made pursuant to and shall be
governed by the laws of the State of Florida (without regard to conflicts of
law rules).

     15.9 Assignment. This Agreement may not be assigned or delegated by any
party without the written consent of the other except that Purchaser may assign
this Agreement to an Affiliate of Purchaser, it being acknowledged and agreed
by Purchaser that no such assignment shall relieve Purchaser of its obligations
under this Agreement.

     15.10 Headings; Exhibits. The headings or captions of the various
Articles and Sections of this Agreement have been inserted solely for purposes
of convenience, are not part of this Agreement and shall not be deemed in any
manner to modify, explain, expand or restrict any of the provisions of this
Agreement.

     15.11 Gender and Number. Words of any gender shall include the other
gender and the neuter. Whenever the singular is used, the same shall include
the plural wherever appropriate, and whenever the plural is used, the same also
shall include the singular where appropriate.

     15.12 Entire Agreement. This Agreement constitutes the entire agreement
among the parties with respect to the subject matter hereof and supersedes any
prior written or oral understandings and/or agreement among them with respect
thereto.

     15.13 Costs of Enforcement. In the event that any action is brought by
any party or parties to this Agreement against any other party or parties to
enforce rights under this Agreement, the prevailing party’s or parties’ costs
in such action, including reasonable attorneys’ fees, shall be paid by the
other party or parties. Any amounts owing hereunder which are not paid when
due shall bear interest at the per annum rate equal to the prime rate of
interest

- 42 -

 

 published in the Wall Street Journal (or similar publication in the event
the Wall Street Journal shall no longer publish a prime rate of interest) plus
four percent.

     15.14 Time of the Essence. Time is of the essence with regard to each
provision of this Agreement. If the final date of any period provided for
herein for the performance of an obligation or for the taking of any action
falls on a Saturday, Sunday or banking holiday, then the time of that period
shall be deemed extended to the next day which is not a Sunday, Saturday or
banking holiday. Each and every day described herein shall be deemed to end at
5:00 p.m. Eastern Time.

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto on the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	SELLERS:
	 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES II, LTD., a Florida limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II LTD.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE DEVELOPMENT II, INC.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Edward W. Easton

Its: President
	 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES III, LTD, a Florida limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II LTD.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE DEVELOPMENT II, INC.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Edward W. Easton

Its: President

- 43 -

 

	 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES IV, LTD., a Florida limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II LTD.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE DEVELOPMENT II, INC.,
its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Edward W. Easton

Its: President
	 	 	 	 	 	 	 	 	 
	 	 	PURCHASER:
	 	 	 	 	 	 	 	 	 
	 	 	KEYSTONE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
	 	 	 	 	 	 	 	 	 
	 	 	By:	 	KEYSTONE PROPERTY TRUST,

a Maryland real estate investment trust,

its general partner
	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Saul A. Behar
	 	 	 	 	 	 	

Saul A. Behar

Its: Senior Vice President

     The undersigned Escrow Agent hereby agrees to hold the Earnest Money in
accordance with the terms of this Agreement.

	 	 	 	 	 	 	 
	 	 	FIDELITY NATIONAL TITLE

INSURANCE COMPANY
	 	 	 	 	 	 	 
	 	 	
By:	 	/s/ Karen L. Mark
	 	 	 	 	

	 	 	 	 	Karen L. Mark
	 	 	 	 	Its:	 	Vice President

- 44 -

 

Exhibit 10.2

FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT

     THIS AMENDMENT is made as of the 31st day of October, 2003 by and between
INTERNATIONAL PLACE ASSOCIATES II, LTD., INTERNATIONAL PLACE ASSOCIATES III,
LTD. and INTERNATIONAL PLACE ASSOCIATES IV, LTD., each a Florida limited
partnership (collectively, “Sellers”) and KEYSTONE OPERATING PARTNERSHIP, L.P.,
a Delaware limited partnership (“Purchaser”).

RECITALS:

     A. Sellers and Purchaser are parties to a certain Purchase and Sale
Agreement dated as of October 9, 2003 (the “Agreement”) with respect to certain
property located in Miami, Florida, as more particularly described in the
Agreement of Sale.

     B. The parties desire to amend the Agreement of Sale on the terms set
forth in this Amendment.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally
bound, the parties agree as follows:

     1. Defined Terms. Capitalized terms which are not otherwise defined in
this Amendment shall have the same meanings ascribed to such terms in the
Agreement of Sale.

     2. Inspection Period. The first sentence of Section 4.1 of the Agreement
of Sale is deleted and is replaced with the following: “Purchaser shall have
until November 11, 2003 (the “Inspection Period”) to inspect the Property,
conduct Purchaser’s due diligence and review of the Property, the Financial
Statements and the Books and Records, and to perform such tests, surveys,
engineering studies, analyses, inspections and examinations as Purchaser, in
Purchaser’s sole and absolute discretion determines to be necessary.”

     3. Closing. The first sentence of Section 6.1 of the Agreement of Sale is
deleted and is replaced with the following: “The closing of the Transactions
(the “Closing”) shall take place in the Miami, Florida office of the Title
Company (or such other location mutually acceptable to the Parties) commencing
at 10:00 a.m., Eastern time, on the sooner of (a) the date on which Purchaser
waives its right to terminate this Agreement under Section 4.3 of this
Agreement or (b) November 11, 2003 (the “Closing
Date”).

     4. Tenant Estoppel Certificates. Section 10.3 of the Agreement of Sale is
deleted and is replaced with the following:

“Prior to the Closing Date, Seller shall furnish to Purchaser an
estoppel certificate (dated not more than fifteen (15) days prior
to Closing) completed by each Tenant on the form attached hereto
and incorporated herein as Exhibit C (the “Tenant Estoppels”), or
such other form as may be expressly permitted under the terms of
any Tenant’s Lease. Seller shall use its best efforts to obtain
and deliver the Tenant Estoppels. Tenant Estoppels shall only be
acceptable and delivered in satisfaction of this Section 10.3 if
there has been no material deviation, in Purchaser’s sole judgment,
from the applicable form required hereunder and the information set
forth in each such Tenant Estoppel is consistent with the
information provided to Purchaser in connection with Purchaser’s
inspection of the Property. Notwithstanding the foregoing, it
shall be a condition to Closing that all of the following
requirements are satisfied: (i) Seller obtains Tenant Estoppels
which satisfy the provisions of this Section 10.3 from at least
five (5) of the following seven (7) tenants at the Property: BAX
Global (Building 1), Expeditors International (Building 6), Federal
Express (Building 13), Weitnauer American (Building 15), Almar
International (Building 16), Arrowmail (Building 17) and Great
Spring Water (Perrier Building); and (ii) Seller obtains Tenant

 

 

Estoppels which satisfy the provisions of this Section 10.3 from
such other Tenants as are necessary to obtain, together with the
Tenant Estoppels identified in clause (i) above, Tenant Estoppels
from Tenants which in the aggregate occupy at least sixty-five
percent (65%) of the rentable area of all improvements constituting
the Property excluding Building 4; and (iii) Seller deliver to
Purchaser an estoppel certificate executed by Seller (the “Seller
Estoppels”) with respect to the balance of the Leases for which an
acceptable Tenant Estoppel is not received, which Seller Estoppels
shall be in form and substance similar to the form of Tenant
Estoppel attached hereto as Exhibit C. Notwithstanding any of the
foregoing to the contrary, in the event Seller fails to satisfy the
requirements set forth in clauses (i) and (ii) above, Purchaser
shall have the right to extend the Closing in order to permit
Seller to satisfy such requirements, but in no event beyond
December 15, 2003. Seller shall continue to use reasonable efforts
after Closing to deliver any missing Tenant Estoppel for which
Seller delivered a Seller Estoppel hereunder. In the event that a
Tenant provides Purchaser with a Tenant Estoppel for which Seller
has given Purchaser a Seller Estoppel, Purchaser shall retain and
rely on such Tenant Estoppel, and the Seller Estoppel given for
such Lease will be of no further force and effect from and after
the date on which such Tenant Estoppel is delivered to Purchaser,
but only to the extent that such Tenant Estoppel confirms the
statements made in such Seller Estoppel.”

     5. No Other Modifications. Except as expressly modified by this
Amendment, the Agreement of Sale is otherwise unmodified and remains in full
force and effect.

          IN WITNESS WHEREOF, intending to be legally bound, the parties have
executed this Agreement as a sealed instrument as of the day and year first
above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	SELLERS:
	 	 	
 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES II, LTD., a

Florida limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II

LTD.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE DEVELOPMENT II, INC.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton

Edward W. Easton

Its: President	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES III, LTD., a

Florida limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II

LTD.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE

DEVELOPMENT II, INC.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton

	 	 

- 2 -

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Edward W. Easton

Its: President	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	INTERNATIONAL PLACE ASSOCIATES IV, LTD., a

Florida limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	INTERNATIONAL PLACE/DEVELOPMENT II

LTD.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	INTERNATIONAL PLACE DEVELOPMENT II, INC.,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	/s/ Edward W. Easton

Edward W. Easton

Its: President	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	PURCHASER:
	 	 	 	 	 	 	 	 	 	 	 
	 	 	KEYSTONE OPERATING PARTNERSHIP, L.P., a

Delaware limited partnership
	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	KEYSTONE PROPERTY TRUST,

a Maryland real estate investment trust,

its general partner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ John B. Begier

John B. Begier

Its: President	 	 

- 3 -exv10w1

 

Exhibit 10.1 Quota Share Reinsurance Contract with Swiss RE America
Corporation effective May 15, 2003 covering policies within the Custom
Harvest Program

 

 

INTERESTS AND LIABILITIES AGREEMENT

Between

PHILADELPHIA INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

PHILADELPHIA INDEMNITY INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

MOBILE USA INSURANCE COMPANY, INC.

Pinellas Park, Florida

LIBERTY AMERICAN INSURANCE COMPANY

Pinellas Park, Florida

And any additional established or acquired by the Company

(hereinafter collectively referred to as the “Company”)

and

SWISS RE AMERICA CORPORATION

(the “Subscribing Reinsurer”)

The Subcribing Reinsurer hereby accepts a 100% share in the interests and
liabilities of the “Reinsurer” as set forth in the attached Contract captioned
above.

This Agreement shall become effective at 12:01 a.m., Eastern Standard Time, May
15, 2003, and shall continue in force until terminated in accordance with the
provisions of the attached Contract.

The Subscribing Reinsurer’s share in the attached Contract shall be separate
and apart from the shares of the other reinsurers, and shall not be joint with
the shares of the other reinsurers, it being understood that the Subscribing
Reinsurer shall in no event participate in the interests and liabilities of the
other reinsurers.

In Witness Whereof, the
Subscribing Reinsurer by its duly authorized
representative has executed this Agreement as of the date undermentioned at:

Calabasas, California, this 3rd day of October in the year 2003

	 	Colleen Heagney, Senior Vice President

SWISS REINSURANCE AMERICA CORPORATION

By: Swiss Re Underwriters Agency Inc., Its authorized agent

 

 

QUOTA SHARE REINSURANCE CONTRACT

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 	

	Article	 	 	 
	 	 	 	 
	 	 	 	 	Preamble
	 	 	3	 
	 	1	 	 	Business Covered
	 	 	3	 
	 	2	 	 	Term
	 	 	4	 
	 	3	 	 	Third Party Rights
	 	 	4	 
	 	4	 	 	Territory
	 	 	4	 
	 	5	 	 	Exclusions
	 	 	5	 
	 	6	 	 	Definitions
	 	 	5	 
	 	7	 	 	Retention and Limit
	 	 	6	 
	 	8	 	 	Extra Contractual Obligations and Excess of Original Policy Limits
Liability
	 	 	7	 
	 	9	 	 	Loss Settlements
	 	 	7	 
	 	10	 	 	Premium
	 	 	8	 
	 	11	 	 	Reports and Remittances
	 	 	8	 
	 	12	 	 	Original Conditions
	 	 	9	 
	 	13	 	 	Currency
	 	 	9	 
	 	14	 	 	Taxes
	 	 	10	 
	 	15	 	 	Access to Records
	 	 	10	 
	 	16	 	 	Indemnification and Errors and Omissions
	 	 	11	 
	 	17	 	 	Insolvency
	 	 	11	 
	 	18	 	 	Service of Suit
	 	 	12	 
	 	19	 	 	Arbitration
	 	 	13	 
	 	20	 	 	Mode of Execution
	 	 	14	 
	 	 	 	 	Company Signing Block
	 	 	15	 
	Attachments
	 	 	 	 	Nuclear Energy Liability Exclusion Endorsement
	 	 	16	 

 1 of 17

 

Casualty Quota Share

Reinsurance Contract

Effective: May 15, 2003

issued to

PHILADELPHIA INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

PHILADELPHIA INDEMNITY INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

MOBILE USA INSURANCE COMPANY, INC.

Pinellas Park, Florida

LIBERTY AMERICAN INSURANCE COMPANY

Pinellas Park, Florida

And any additional established or acquired by the Company

(hereinafter collectively referred to as the “Company”)

and

SWISS RE AMERICA CORPORATION

(the “Subscribing Reinsurer”)

 2 of 17

 

QUOTA SHARE REINSURANCE CONTRACT

(the “Contract”)

issued to

PHILADELPHIA INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

PHILADELPHIA INDEMNITY INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

MOBILE USA INSURANCE COMPANY, INC.

Pinellas Park, Florida

LIBERTY AMERICAN INSURANCE COMPANY

Pinellas Park, Florida

And any additional established or acquired by the Company

(hereinafter collectively referred to as the “Company”)

(the “Company”)

Wherever the word “Company” is used in this Contract, such term shall be held

to include any and/or all of the subsidiary companies which are or may

hereafter come under the management of the Company, provided that notice be

given to the management of the Reinsurers within 45 days of such acquisition,

with full particulars as to how such acquisition is likely to affect this

Contract.

By

THE SUBSCRIBING REINSURER(S) IDENTIFIED

IN THE INTERESTS AND LIABILITIES AGREEMENT(S)

ATTACHED TO AND FORMING PART OF THIS CONTRACT

(the “Reinsurer”)

ARTICLE 1

BUSINESS COVERED

This Contract is to indemnify the Company in respect of the liability that may
accrue to the Company as a result of loss or losses under Policies within the
Custom Harvest Program, including business classified by the Company as Auto
Liability, Automobile Physical Damage, Inland Marine, Comprehensive General
Liability, Cargo and Associated Coverages as defined in the original policies,
written or renewed during the term of this Contract by or on behalf of the
Company, subject to the terms and conditions herein contained.

 3 of 17

 

ARTICLE 2

TERM:

	A.	 	Continuous contract in respect of new and renewal business written on or
after 12:01 a.m., Eastern Standard Time, May 15, 2003. Either party may
terminate this contract at 12:01 a.m., Standard Time, on any May 15, by
giving 90 days prior written notice of cancellation to the other party by
certified mail. Company option to run-off or cut-off Reinsurer’s
liability. Run-off not to exceed 12 months plus odd time. Such run-off
period including odd time shall not exceed 18 months in all. In the event
that any policy is required by statute or departmental regulation or order
to be continued in force, the Reinsurer will continue to remain liable
with respect to each such policy until the Company may legally cancel,
non-renew or otherwise eliminate liability under such policy or policies.
	 
	 	 	Notwithstanding the above, in the event of cancellation by the Reinsurer,
any business quoted by the Company after the notice of cancellation and
prior to the termination date and having an effective date within the
ninety (90) days following the termination date may be bound subject to
the review and approval of the Reinsurer.
	 
	B.	 	In the event the Company is unable or prevented from terminating any
original Policy by reason of regulatory or other legal restrictions this
Contract shall follow such continuing original Policies until the Company
is able to effectively terminate such affected original Policies in
accordance with regulatory requirements, with such time period not to
exceed 24 months.
	 
	C.	 	The Company shall have the sole option of waiving the run-off provision
with 60 days after the termination date. In such event the Reinsurer shall
return to the Company the unearned premium reserve, less applicable ceding
commission, calculated as of the date and time of cancellation, and shall
not be liable as respects losses occurring or Claims Made subsequent to
the date and time of cancellation.

ARTICLE 3

THIRD PARTY RIGHTS

Nothing herein shall in any manner create any obligations or establish any
rights against the Reinsurer in favor of any third party or any persons not
parties to this Contract.

ARTICLE 4

TERRITORY

The territorial limits of the Contract shall be identical with those of the
Company’s Policies.

 4 of 17

 

ARTICLE 5

EXCLUSIONS

	A.	 	This Contract does not apply to and specifically excludes:

	 	1.	 	Any loss or damage, which is occasioned by war, invasion,
hostilities, acts of foreign enemies, civil war, rebellion,
insurrection, military or usurped power, or martial law, or
confiscated by order to any government or public authority.
	 
	 	2.	 	Insolvency Funds.
	 
	 	3.	 	Pollution, except as provided in the Business Automobile
Coverage Part.
	 
	 	4.	 	Assumed reinsurance other than inter-company pooling
arrangements and reinsurance of a fronting company used solely for
the purpose of writing subject business.
	 
	 	5.	 	Any loss or liability occurring to the Company, directly or
indirectly, whether as insurer or reinsurer, from membership in any
Pool, Association or Syndicate.
	 
	 	6.	 	Nuclear exposures, as per the attached “Nuclear Energy
Liability Exclusion Endorsement.”
	 
	 	7.	 	Asbestos Liability.

	B.	 	It is also understood that, if the Company, without the knowledge and
contrary to the instructions of its supervisory underwriting personnel, is
bound on a Risk falling within one of the foregoing exclusions, such Risk
is covered hereunder until said supervisory underwriting personnel
receives knowledge thereof, and pending cancellation of such Risk by the
Company, for a further period of thirty (30) days after receipt of such
knowledge. If such Risk cannot be cancelled due to state regulation, it
shall be covered hereunder to Policy expiration.

ARTICLE 6

DEFINITIONS

	A.	 	The term “Risk” shall mean each original insured on each Policy for each
type of coverage where the original Policy provides a separate limit. The
Company shall be the sole judge as to what constitutes a risk.
	 
	B.	 	This Contract shall follow the definition of “Occurrence”, “Accident”,
and “Incident“contained in the original Policy.
	 
	C.	 	The term “Original Gross Net Written Premium” as used in this Contract
shall mean the Gross Written Premium of the Company for the business
reinsured hereunder, as specified in the Retention and Limit Article, less
returned premium for cancellations and reductions, and less premium for
inuring reinsurance.

 5 of 17

 

	D.	 	The term “Policies” as used herein means each of the Company’s binders,
policies and contracts providing insurance on the lines of business
covered hereunder.
	 
	E.	 	The term “Allocated Loss Adjustment Expense” as used in this Contract
shall mean all expenses incurred by the Company in adjusting, settling and
compromising individual claims, including costs of litigation, interest on
judgments (if any), third party claims, administration costs, all
subrogation, salvage, recovery expense and Declaratory Judgment action
expenses. Declaratory Judgment action expenses shall be deemed to have
been fully incurred on the same date as the underlying loss (if any)
giving rise to the action and shall not exceed an amount equal to the
agreement limit.
	 
	 	 	The term “Unallocated Loss Adjustment Expense” as used in this Contract
shall mean the salaries of employees of the Reassured and normal office
expenses.

ARTICLE 7

RETENTION AND LIMIT

	A.	 	The Company shall cede, and the Reinsurer shall accept as reinsurance, a
100% Quota Share of all business reinsured hereunder of up to $1,000,000
for each and every policy, each and every risk for property business and
each and every coverage part for liability business.
	 
	B.	 	The Company shall retain a 20% participation in the business covered
hereunder net and unreinsured (not to include inter-group pooling or
reinsurance arrangements).
	 
	C.	 	In the event the original Policy provides for expenses in addition to the
Policy limit, the Reinsurer shall be liable for its proportionate share of
expense in addition to their limit of liability under this Contract.
However, if the original Policy limit includes expenses within the Policy
limit, the Reinsurer shall be liable for its proportionate share of those
expenses within their limit of liability under this Contract.
	 
	D.	 	The Reinsurer shall pay its proportionate share of Extra Contractual
Obligations and/or Excess of Original Policy Limits Loss in addition to
their limit of liability under this Contract but limited to one additional
Policy Limit each Risk, each and every Incident, Accident, Occurrence as
original.
	 
	E.	 	The Company and the Reinsurer shall have the joint benefit of facultative
reinsurance purchased by the Company, and the Reinsurer’s proportion of
the cost of such reinsurance shall be deducted from its share of the
premium on the Business Covered hereunder.

 6 of 17

 

ARTICLE 8

EXTRA CONTRACTUAL OBLIGATIONS AND EXCESS OF ORIGINAL POLICY LIMITS LIABILITY

	A.	 	This Contract shall cover Extra Contractual Obligations. “Extra
Contractual Obligations” shall be defined as those Liabilities not covered
under any other provision of this Contract and that arise from the
handling of any claim on business covered hereunder, such liabilities
arising because of, but not limited to, the following: failure by the
Company to settle within the Policy limit, or by reason of alleged or
actual negligence, fraud or bad faith in rejecting an offer of settlement
or in the preparation of the defense or in the trial of any action against
its insured or in the preparation or prosecution of an appeal consequent
upon such action.
	 
	B.	 	This contract shall cover Loss in Excess of Policy Limits. “Loss in
Excess of Policy Limits” shall be defined as loss in excess of the Policy
limit, having been incurred because of, but not limited to, failure by it
to settle within the Policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in
the preparation of the defense or in the trial of any action against its
insured or reinsured or in the preparation or prosecution of an appeal
consequent upon such action.
	 
	C.	 	An Extra Contractual Obligation and/or Loss in Excess of Policy Limits
shall be deemed to have occurred on the same date as the loss covered
under the Company’s Policy, and shall constitute part of the original
loss.
	 
	D.	 	For the purposes of the Loss in Excess of Policy Limits coverage
hereunder, the word “loss” shall mean any amounts for which the Company
would have been contractually liable to pay had it not been for the limit
of the original Policy.
	 
	E.	 	Loss adjustment Expense in respect of Extra Contractual Obligations
and/or Loss in Excess of Policy Limits shall be covered hereunder in the
same manner as other Loss Adjustment Expense.
	 
	F.	 	Notwithstanding anything stated herein, the Contract shall not apply to
any extra contractual obligation incurred by the Company as a result of
any final legal adjudication of fraudulent and/or criminal act(s) by any
officer or director of the Company acting individually, or party involved
in the presentation, or defense of settlement of any claim covered
hereunder.
	 
	G.	 	In no event shall coverage be provided to the extent not permitted under
law.

ARTICLE 9

LOSS SETTLEMENTS

All loss settlements made by the Company shall be binding upon the Reinsurer,
and the Reinsurer agrees to pay or allow, as the case may be, its share of each
such settlement in accordance with this Contract.

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ARTICLE 10

PREMIUM

	A.	 	The Company shall pay to the Reinsurer its proportionate share of the
Company’s Original Gross Net Written Premiums during the period of this
contract and covered hereunder.
	 
	B.	 	The Reinsurer shall allow the Company a ceding commission of 27% of ceded
Original Gross Net Written Premium. On all return premiums the Company
shall allow a ceding commission to the Reinsurer at the same rate.
	 
	C.	 	Original Gross Net Written Premium shall be for limits ceded hereunder,
less a ceding commission allowance of 27%, which includes original
brokerage or agent’s commission, premium taxes, board and bureau fees,
engineering/loss control and quality assurance expenses, unallocated
claims expenses, corporate overhead and all other production and
underwriting costs, excluding Federal Excise Tax and other reinsurance
expenses.

ARTICLE 11

REPORTS AND REMITTANCES

	A.	 	The Company shall furnish the Reinsurer with monthly reports for ceded
premiums written and ceded losses paid, which shall be settled net by the
Company within 60 days of the close of that month. Notation of the
unearned premium reserve and outstanding loss reserve shall be included
with the monthly report. Amounts due to the Company shall be paid by the
Reinsurer within 30 days of receipt of the report.
	 
	 	 	Monthly reports shall include the following information, and shall be
prepared separately for each Contract year:

	 	1.	 	Ceded Original Gross Net Written Premium, itemized by Policy
including Policy period, limit and named insured;
	 
	 	2.	 	Ceded Unearned Original Gross Net Written Premium – reported
on a quarterly basis;
	 
	 	3.	 	Ceding Commission;
	 
	 	4.	 	Ceded Paid Losses and Loss adjustment Expense itemized by
loss;
	 
	 	5.	 	Ceded Outstanding Losses itemized by loss;

	 	 	If the balance of item 2 less 3 less 4 is owed to the Reinsurer, the
Company shall remit payment with the account. Should the balance be owed
to the Company, the Reinsurer shall pay such amount within 15 days of
receipt of the account.
	 
	 	 	Annually, the Company shall furnish the Reinsurer with such information
as the Reinsurer may require to complete its Annual Convention Statement.

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	B.	 	The Company shall provide individual loss reports as soon as practicable
on all claims where the Company has established gross case reserves,
including those for loss expense, equal to or greater than $100,000.
Furthermore, complete details shall be provided on all claims which meet
any of the following conditions:

	 	 	 	Brain injuries resulting in impairment of physical functions;
	 	 	 	Spinal injuries resulting in partial or total paralysis of upper or lower extremities;
	 	 	 	Amputations or permanent loss of use of upper or lower extremities;
	 	 	 	Severe burn cases;
	 	 	 	Fatalities; and
	 	 	 	Loss of sight or hearing.

	B.	 	Such individual loss reports must include Policy information, limits,
loss date, effective date, insured claimants, injury details, facts,
reserves and plans for disposition. Updates shall be provided as
appropriate, but at least annually.

ARTICLE 12

ORIGINAL CONDITIONS

In determining the liability of the Reinsurer to the Company, this Contract
shall be subject in all respects to all the general and special stipulations,
clauses, waivers, and endorsements of the policies to which this Contract
applies. This Article is incorporated in this Contract solely for the purpose
of determining the liability of the Reinsurer to the Company, and is not
intended under any circumstances, to give a direct right of action against the
Reinsurer to anyone other than the Company except as provided in the Insolvency
Article. In the event the terms of a subject policy are modified by judgment or
settlement, or amended by an legislative, regulatory, or judicial body, the
Reinsurer’s liability shall follow the policy language as modified or amended,
it being the intent of this Contract that the Reinsurer shall follow the
fortunes of the Company on the policies to which this Contract applies.

ARTICLE 13

CURRENCY

	A.	 	Where the word “Dollars” and/or the sign “$” appear in this Contract,
they shall mean United States Dollars.
	 
	B.	 	For purposes of this Contract, where the Company receives premiums or
pays losses in currencies other than United States Dollars, such premiums
or losses shall be converted into United States Dollars at the actual
rates of exchange at which these premiums or losses are entered in the
Company’s books.

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ARTICLE 14

TAXES

	A.	 	In consideration of the terms under which the Contract is issued, the
Company undertakes not to claim any deduction of the premium hereon when
making Canadian tax returns or when making tax returns, other than Income
or Profits Tax returns, to any state or territory of the United States of
America or to the District of Columbia.

	B.	1.	 	 Federal Excise Tax applies only to those Subscribing Reinsurers,
excepting Underwriters at Lloyd’s, London and other Subscribing Reinsurers
exempt from the Federal Excise Tax, who are domiciled outside the United
States of America.
	 
	 	2.	 	The Reinsurer has agreed to allow for the purpose of paying
the Federal Excise Tax 1% of the premium payable hereon to the
extent such premium is subject to Federal Excise Tax.
	 
	 	3.	 	In the event of any return of premium becoming due hereunder,
the Reinsurer shall deduct 1% from the amount of the return, and the
Company or its agent should take steps to recover the Tax from the
U.S. Government.

ARTICLE 15

ACCESS TO RECORDS

The Reinsurer or its duly authorized representatives shall have the right to
visit the offices of the Company to inspect, examine, audit, and verify any of
the policy, accounting or claim files (“Records”) relating to business
reinsured under this Contract during regular business hours after giving five
working days prior notice. This right shall be exercisable during the term of
this Contract or after the expiration of this Contract. Notwithstanding the
above, the Reinsurer shall not have any right of access to the Records of the
Company if it is not current in all undisputed payments due the Company and the
Company shall have no right to reimbursement under this Contract if it fails or
refuses to provide the access required by this Article other than by reason of
the Reinsurers’ failure to pay. The Reinsurer shall keep confidential all
information and reports derived from the Records of the Company to which it has
received access and shall not publish or communicate that information or
report(s) to any other person or reinsurers without the Company’s express prior
written consent, except under the following circumstances: when required by
retrocessionaires; when the Reinsurer is subject to a lawful subpoena or other
duly issued order of a court or other regulatory or governmental authority,
after giving notice to the Company and allowing the Company to take appropriate
protective measures; or when required by auditors, legal counsel, and/or
arbitrators involved in any arbitration procedures under this Contract.

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ARTICLE 16

INDEMNIFICATION AND ERRORS AND OMISSIONS

	A.	 	The Reinsurer is reinsuring, to the amount herein provided, the
obligations of the Company under any original insurance. The Company shall
be the sole judge as to:

	 	1.	 	what shall constitute a claim or loss covered under any
original insurance or reinsurance written by the Company;
	 
	 	2.	 	the Company’s liability thereunder;
	 
	 	3.	 	the amount or amounts that it shall be proper for the Company
to pay thereunder.

	B.	 	The Reinsurer shall be bound by the judgment of the Company as to the
obligation(s) and liability(ies) of the Company under any original
insurance subject to the terms and conditions of this Contract.
	 
	C.	 	Any inadvertent error, omission or delay in complying with the terms and
conditions of this Contract shall not be held to relieve either party
hereto from any liability that would attach to it hereunder if such error,
omission or delay has not been made, provided such error, omission or
delay is rectified immediately upon discovery.

ARTICLE 17

INSOLVENCY

	A.	 	In the event of the insolvency of the Company, this reinsurance shall be
payable directly to the Company, or to its liquidator, receiver,
conservator or statutory successor on the basis of the liability of the
Company without diminution because of the insolvency of the Company or
because the liquidator, receiver, conservator or statutory successor of
the Company has failed to pay all or a portion of any claim. It is agreed,
however, that the liquidator, receiver, conservator or statutory successor
of the Company shall give written notice to the Reinsurer of the pendency
of a claim against the Company indicating the policy or bond reinsured,
which claim would involve a possible liability on the part of the
Reinsurer within a reasonable time after such claim is filed in the
conservation or liquidation proceeding or in the receivership, and that
during the pendency of such claim, the Reinsurer may investigate such
claim and interpose, at their own expense, in the proceeding where such
claim is to be adjudicated any defense of defenses that they may deem
available to the Company or its liquidator, receiver, conservator or
statutory successor. The expense thus incurred by the Reinsurer shall be
chargeable, subject to the approval of the court, against the Company as
part of the expense of conservation or liquidation to the extent of a pro
rata share of the benefit which may accrue to the Company solely as a
result of the defense undertaken by the Reinsurer.
	 
	B.	 	Where two or more Reinsurers are involved in the same claim and a
majority in interest elect to interpose defense to such claim, the expense
shall be apportioned in accordance with the terms of the reinsurance
Contract as though such expense had been incurred by the Company.

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	C.	 	As to all reinsurance made, ceded, renewed or otherwise becoming
effective under this Contract, the reinsurance shall be payable as set
forth above by the Reinsurer to the Company or to its liquidator,
receiver, conservator or statutory successor, (except as provided by
Sections 4118(a)(1)(A) and 1114(c) of the New York Insurance Law) or
except (1) where the Contract specifically provides another payee in the
event of the insolvency of the Company, or (2) where the Reinsurer, with
the consent of the direct insured or insureds, have assumed such policy
obligations of the Company as direct obligations of the Reinsurer to the
payees under such policies and in substitution for the obligations of the
Company to such payees. Then, and in that event only, the Company, with
the prior approval of the certificate of assumption on New York risks by
the Superintendent of Insurance of the State of New York, is entirely
released from its obligation and the Reinsurer pays any loss directly to
payees under such policy.

ARTICLE 18

SERVICE OF SUIT

	A.	 	This article applies only to those Reinsurers not domiciled in the United
States of America, and/or not authorized in any state, territory and/or
district of the United States of America where authorization is required
by insurance regulatory authorities.
	 
	B.	 	In the event of the failure of a Reinsurer to pay any amount claimed to
be due under this Contract, the Reinsurer, at the request of the Company,
shall submit to the jurisdiction of any court of competent jurisdiction
within the United States of America and shall comply with all requirements
necessary to give such court jurisdiction; and all matters arising
hereunder shall be determined in accordance with the law and practice of
such court. Nothing in this clause constitutes or should be understood to
constitute a waiver of the Reinsurer’s rights to commence an action in any
court of competent jurisdiction in the United States of America, to remove
an action to a United States District Court, or to seek a transfer of a
case to another court as permitted by the laws of the United States of
America or of any state in the United States of America.
	 
	C.	 	Service of process is such suit may be made upon Messrs. Mendes and
Mount, 750 Seventh Avenue, New York, New York 10019-6829 (hereinafter,
“agent for service of process”), and in any suit instituted against the
Reinsurer(s) upon this Contract, the Reinsurer(s) shall abide by the final
decision of such court or of any appellate court in the event of an
appeal.
	 
	D.	 	The above named are authorized and directed to accept service of process
on behalf of the Reinsurer(s) in any such suit and/or upon the request of
the Company to give a written undertaking to the Company that the agent
for service of process shall enter a general appearance on behalf of the
Reinsurer(s) in the event such a suit shall be instituted.

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	E.	 	Further, pursuant to any statute of any state, territory or district of
the United States of America that makes provision therefor, the
Reinsurer(s) hereby designate the Superintendent, Commissioner or Director
of Insurance or other officer specified for that purpose in the statute,
or his successor or successors in office, as its true and lawful attorney
upon whom may be served any lawful process in any action, suit or
proceeding instituted by or on behalf of the Company or any beneficiary
hereunder arising our of this Contract and hereby designates the agent for
service of process as the firm to whom the said officer is authorized to
mail such process or a true copy thereof.

ARTICLE 19

ARBITRATION

	A.	 	Any dispute arising out of the interpretation, performance or breach of
this Contract, including the formation or validity thereof, shall be
submitted for decision to a panel of three arbitrators. Notice requesting
arbitration shall be in writing and sent certified or registered mail,
return receipt requested.
	 
	B.	 	One arbitrator shall be chosen by each party and the two arbitrators
shall then choose an impartial third arbitrator who shall preside at the
hearing. If either party fails to appoint its arbitrator within 30 days
after being requested to do so by the other party, the latter, after 10
days prior notice by certified or registered mail or its intention to do
so, may appoint the second arbitrator.
	 
	C.	 	If the two arbitrators do not agree on a third arbitrator with 60 days of
their appointment, the third arbitrator shall be chosen in accordance with
the procedures of the AIDA Reinsurance and Insurance Arbitration Society –
U.S. (ARIAS) in effect on the date of selection, for selecting the third
arbitrator. The arbitrators shall be persons knowledgeable about insurance
and reinsurance who have no personal or financial interest in the result
of the arbitration. If an arbitrator dies, becomes disabled or otherwise
can no longer serve, a substitute arbitrator shall be selected using the
same method used in selecting the departed arbitrator and the proceeding
shall continue.
	 
	D.	 	Within 30 days after all arbitrators have been appointed, the panel shall
meet and determine timely periods for briefs, discovery procedures and
schedules of hearings.
	 
	E.	 	The panel shall be relieved of all judicial formality and shall not be
bound by the strict rules of procedure and evidence. The arbitration shall
take place in New York, New York, or at such other place as the parties
shall agree. The decision of any two arbitrators shall be in writing and
shall be final and binding. The panel is empowered to grant interim relief
as it may deem appropriate.
	 
	F.	 	The panel shall interpret this Contract as an honorable engagement rather
than as merely a legal obligation and shall make its decision considering
the custom and practice of the applicable insurance and reinsurance
business as promptly as possible after the hearings. Judgment upon an
award may be entered in any court having jurisdiction thereof.

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	G.	 	Each party shall bear the expense of its own arbitrator and shall jointly
and equally bear with the other party the cost of the third arbitrator.
The remaining costs of the arbitration shall be allocated by the panel.
The panel may, at its discretion, award such further costs and expenses as
it considers appropriate, including, but not limited to attorneys’ fees,
to the extent permitted by law.

ARTICLE 20

MODE OF EXECUTION

	A.	 	This Contract may be executed by:

	 	1.	 	An original written ink signature of paper documents.
	 
	 	2.	 	An exchange of facsimile copies showing the original written
ink signature of paper documents.
	 
	 	3.	 	Electronic signature technology employing computer software
and a digital signature or digitizer pen pad to capture a person’s
handwritten signature in such a manner that the signature is unique
to the person signing, is under the sole control of the person
signing, is capable of verification to authenticate the signature
and is linked to the document signed in such a manner that if the
data is changed, such signature is invalidated.

	B.	 	The use of any one or a combination of these methods of execution shall
constitute a legally binding and valid signing of the Contract. This
Contract may be executed in one or more counterparts, each of which, when
duly executed, shall be deemed an original.

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IN WITNESS WHEREOF, the Company has caused this Contract to be executed by its
duly authorized representative(s) this 4th day of November in the year of 2003.

PHILADELPHIA INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

PHILADELPHIA INDEMNITY INSURANCE COMPANY

Bala Cynwyd, Pennsylvania

MOBILE USA INSURANCE COMPANY, INC.

Pinellas Park, Florida

LIBERTY AMERICAN INSURANCE COMPANY

Pinellas Park, Florida

And any additional company established or acquired by the Company

Christopher J. Maguire

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NUCLEAR ENERGY LIABILITY EXCLUSION ENDORSEMENT

(Broad Form)

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

	H.	 	This insurance does not apply to, and we have no obligation to pay for,
investigate, settle or defend, any claim or “suit” for:

	 	A.	 	“Bodily injury” or “property damage” under any Liability Coverage:
	 

	 	(1)	 	With respect to which an “insured” under the policy
is also an “insured” under a nuclear energy liability policy
issued by Nuclear Energy Liability Insurance Association, Mutual
Atomic Energy Liability Underwriters, Nuclear Insurance
Association of Canada or any of their successors, or would be an
“insured” under any such policy but for its termination upon
exhaustion of its limit of liability; or
	 
	 	(2)	 	Resulting from the “hazardous properties” of “nuclear
material” and with respect to which (a) any person or
organization is required to maintain financial protection
pursuant to the Atomic Energy Act of 1954, or any law amendatory
thereof, or (b) the “insured” is, or had this policy not been
issued would be, entitled to indemnity from the United States of
America, or any agency thereof, with any person or organization.

	 	B.	 	“Bodily injury” or “property damage”, under any Liability
Coverage, resulting from “hazardous properties” of “nuclear
material”, if:

	 	(1)	 	The “nuclear material” (a) is at any “nuclear
facility” owned by, or operated by or on behalf of, an “insured”
or (b) has been discharged or dispersed therefrom;
	 
	 	(2)	 	The “nuclear material” is contained in “spent fuel”
or “waste” at any time possessed, handled, used, processed,
stored, transported or disposed of, by or on behalf of an
“insured”, or
	 
	 	(3)	 	The “bodily injury” or “property damage” arises out
of the furnishing by an “insured” of services, materials, parts
or equipment in connection with the planning, construction,
maintenance, operation or use of any “nuclear facility”, but if
such facility is located within the United States of America,
its territories or possessions or Canada, the Exclusion (3)
applies only to “property damage” to such “nuclear facility” and
any property thereat.

Includes Copyright material from Insurance Services Office With Its Permission.

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As used in the endorsement:

	 	 	“Hazardous properties” includes radioactive, toxic or explosive
properties.
	 
	 	 	“Nuclear material” means “source material”, “Special nuclear material” or
“by-product material”.
	 
	 	 	“Source material”, “special nuclear material”, and “by-product material”
have the meanings given them in the Atomic Energy Act of 1954 or in any
law amendatory thereof.
	 
	 	 	“Spent fuel” means any fuel element or fuel component, solid or liquid,
which has been used or exposed to radiation in a “nuclear reactor”.
	 
	 	 	“Waste” means any waste material (a) containing “by-product material”
other than the tailings or wastes produced by the extraction or
concentration of uranium or thorium from any ore processed primarily for
its “source material” content, and (b) resulting from the operation by
any person or organization of any “nuclear facility” included under the
first two paragraphs of the definition of “nuclear facility”.
	 
	 	 	“Nuclear facility” means:

	 	(a)	 	Any “nuclear reactor”;
	 
	 	(b)	 	Any equipment or device designed or used for (1)
separating the isotopes of uranium or plutonium, (2) processing
or utilizing “spent fuel”, or (3) handling, processing or
packaging “waste”;
	 
	 	(c)	 	Any equipment or device used for the processing,
fabricating or alloying of “special nuclear material” if at any
time the total amount of such material in the custody of the
“insured” at the premises where such equipment or device is
located consists of or contains more than 25 grams of plutonium
or uranium 233 or any combination thereof, or more than 250
grams of uranium 235;
	 
	 	(d)	 	Any structure, basin, excavation, premises or place
prepared or used for the storage or disposal of “waste”;

	 	 	And includes the site on which any of the foregoing is located, all
operations conducted on such site and all premises used for such
operations.
	 
	 	 	“Nuclear reactor” means any apparatus designed or used to sustain
nuclear fission in a self-supporting chain reaction or to contain a
critical mass of fissionable material.
	 
	 	 	“Property damage” includes all forms of radioactive contamination of
property.
	 
	 	 	All other terms and conditions of this policy shall remain the same.

This endorsement is effective on the inception date of this policy unless
otherwise stated herein.

	 	 	Includes Copyright material from Insurance Services Office With Its Permission.

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