PRUDENTIAL ASSET PURCHASE AGREEMENT
This
PRUDENTIAL ASSET PURCHASE AGREEMENT is entered into as of this 3rd
day of October, 2005 among PRENTISS PROPERTIES ACQUISITION
PARTNERS, L.P., a Delaware limited partnership (“Company
L.P.”), PRENTISS PROPERTIES REAL ESTATE FUND I, L.P., a
Delaware limited partnership ("Other Seller" and, collectively with
Company L.P., "Seller") and THE PRUDENTIAL INSURANCE COMPANY OF
AMERICA, a New Jersey corporation (together with its successors and
assigns, “Prudential”).
RECITALS
Reference
is made to the Agreement and Plan of Merger dated as of the date
hereof by and among Brandywine Realty Trust, Brandywine Operating
Partnership, L.P., Brandywine Cognac I, LLC, Brandywine Cognac II,
LLC, Prentiss Properties Trust and Company L.P. (as it may be
amended, the “Merger Agreement”) and the Master
Agreement dated as of the date hereof between Brandywine Operating
Partnership, L.P. and Prudential (the “Master
Agreement”). This Agreement is referred to in the Merger
Agreement as the “Prudential Asset Purchase Agreement”
and is being delivered in connection with the Merger Agreement and
the Master Agreement, in each case subject to the terms and
conditions hereof.
In
consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
mutually acknowledged, the parties hereto hereby agree as
follows:
Section
1. Capitalized Terms
. Capitalized terms used in this
Agreement without definition shall have the respective meaning
given them in the Merger Agreement.
Section
2. Effectiveness of this
Agreement . Notwithstanding
anything to the contrary, including, without limitation, the
execution and delivery of this Agreement as of the date hereof,
this Agreement shall not become effective unless and until the
following conditions (the “Effectiveness Conditions”)
are satisfied: (i) the Final Condition Satisfaction Date occurs,
and (ii) each of Company L.P. and Brandywine Operating Partnership,
L.P. delivers to Prudential a certification, in form and substance
reasonably satisfactory to Prudential, that confirms that all
conditions to such party’s and its affiliates’
obligations to effect the REIT Merger and the OP Merger have been
irrevocably satisfied or waived in writing. Upon the occurrence of
the Effectiveness Conditions, this Agreement shall become fully
effective as if executed and delivered as of such date.
Section
3. Capitalized Terms
. Listed on Exhibit A hereto
are certain properties (collectively, the “Fee Owned
Properties”), which are owned by the entities listed on
Exhibit A as the owners thereof (each, a “Property
Owner”). Listed on Exhibit B hereto is a property
commonly known as High Bluff Ridge located in Del Mar, California
(the “Joint Venture Owned Property”) owned by the
entity listed thereon as the owner thereof (the “Joint
Venture Property Owner”). The Fee Owned Properties and all of
the right, title and interest of the Company or its Affiliate (the
“Joint Venture Interest Owner”) in the Joint Venture
Owned Property (the “Joint Venture Interest”) shall be
conveyed to one (1) or more entities designated by Prudential (each
such entity, a “Transferee”) in accordance with the
terms of this Agreement. The Fee Owned Properties, the identity of
which may change as described in Section 5 of this Agreement, are
more particularly described below and are referred to in this
Agreement with the following and with the Joint Venture Interest,
collectively, as the “Specified Assets”:
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(a)
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All of that land more
particularly described on Exhibit C and all improvements
located thereon (the “Real Property”);
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(b)
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All right, title and interest,
if any, of the applicable Property Owner, in and to any land lying
in the bed of any street, road or access way, opened or proposed,
in front of, at a side of or otherwise adjoining the Real
Property;
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(c)
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All right, title and interest
of the applicable Property Owner, reversionary or otherwise, in and
to all easements in, upon or benefiting the Real Property and all
other rights and appurtenances belonging or in any wise pertaining
thereto;
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(d)
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Any condemnation award to be
made after the date of this Agreement for any claim of condemnation
hereafter occurring, in connection with the Real Property and/or
the other interests described in the foregoing subparagraphs
10.01(a) through (c), of this Section 3, and in and to any award
for damage hereafter occurring to the Real Property and/or such
interests;
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(e)
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All right, title and interest
of the applicable Property Owner in and to any permits, approvals,
agreements, rights and entitlements pertaining to the Real
Property, in each of the foregoing cases to the extent
assignable;
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(f)
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All right, title and interest
of the applicable Property Owner in and to all air rights, water
rights and mineral rights with respect to the Real Property or
appurtenant to the Real Property;
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(g)
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Any and all rights to the
present or future use of wastewater, drainage, water or other
utility facilities that pertain to or benefit the Real Property,
including, without limitation, all reservations, credits,
commitments or letters covering any such use in the
future;
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(h)
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All right, title and interest
of the applicable Owner in and to any and all reversionary rights
attributable to the Real Property;
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(i)
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All right, title and interest
of the applicable Property Owner in and to all consents,
authorizations, variances or waivers, licenses, credits, permits
and approvals from any governmental or quasi-governmental agency,
department, board, commission, bureau or other entity or
instrumentality with respect to the Real Property, in each of the
foregoing cases to the extent assignable; and
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(j)
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All right, title and interest
of the applicable Property Owner in and to all contracts,
agreements, plans, specifications, site plans, construction
drawings, schematics and renderings, studies, reports, documents,
materials and information, and any other tangible or intangible
property, rights and benefits relating to the Real Property, in
each of the following cases to the extent assignable.
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Section
4 Conveyance of Specified Assets
and Joint Venture Interest; Specified Assets Purchase Price
. On the business day immediately
preceding the Closing Date (such business day, the “Specified
Assets Closing Date”), Company L.P. shall cause to be
conveyed by each Property Owner and the Joint Venture Interest
Owner to the applicable Transferee(s) such Property Owner’s
Specified Asset(s). The closing under this Section 4 (the
“Specified Assets Closing”) shall take place at the
offices of Pepper Hamilton LLP, Philadelphia, Pennsylvania. Each
such conveyance by a Property Owner shall be made by delivery and
recordation of a deed in the applicable form of Exhibit D
hereto (each, a “Deed”) and delivery and recordation,
if applicable, of the other documents and instruments listed in
Section 6 . The conveyance of the Joint Venture Interest by
the Joint Venture Interest Owner shall be made by delivery of an
assignment of interest in the form of Exhibit E hereto (the
“Assignment of Interest”). In exchange for the
conveyance of all of the Specified Assets in accordance with the
terms of this Section, Prudential shall pay or cause to be paid to
Company L.P. the sum of $747,650,417 (the “Specified Assets
Purchase Price”), subject to adjustment as provided in this
Agreement and less the outstanding balance of any indebtedness on
any of the Specified Assets or the Joint Venture Owned Property
that is not repaid in full on or before the Closing Date. The
Specified Assets Purchase Price, as adjusted as provided herein,
shall be paid by wire transfer of immediately available funds
pursuant to wiring instructions provided by Company L.P. to
Prudential in writing not less than two (2) business days prior to
the Specified Assets Closing Date.
Section
5 Change in Specified Assets
. Company L.P. and Other Seller
acknowledge and agree that Prudential has certain rights under the
Master Agreement to modify the list of properties included in
Specified Assets, including, without limitation, to drop or
substitute the Joint Venture Interest from the transactions
contemplated hereby and by the Master Agreement. Company L.P. and
Other Seller further acknowledge and agree that Prudential shall
have the right under this Agreement to modify the list of
properties included in the Specified Assets, including without
limitation, to drop or substitute the Joint Venture Interest if it
does so under the Master Agreement, by delivering written notice
thereof to Company L.P. or Other Seller, as the case may be. Upon
each such modification and substitution, “Specified
Assets” as used in this Agreement shall be deemed to include
the then-current list of Specified Assets, as so modified and
“Joint Venture Interest” shall be dropped from this
Agreement or modified, as the case may be, in accordance with the
terms hereof. Notwithstanding anything to the contrary in this
Agreement, no Seller shall be required to convey any real property
interest in a Specified Asset other than those listed in Exhibit
A and Exhibit B as of the date of this Agreement unless
and until either (a) any tenant or other party having a right to
purchase such property or having another purchase-related right
(such as to approve the property purchaser) has waived such party's
rights, such rights have expired or Seller can otherwise convey the
real property without violating such tenant's or other party's
rights, or (b) Prudential shall have agreed to indemnify Seller for
any loss, cost or damages relating to the applicable matter set
forth in item (a) of this sentence.
Section
6 Delivery of Documents by Company
L.P. On the Specified Assets
Closing Date, Company L.P. and Other Seller shall, notwithstanding
anything to the contrary, deliver or cause to be delivered to
Prudential the following:
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(a)
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The Deeds and the Assignment
of Interest, duly executed and delivered by the applicable Property
Owner or the Joint Venture Interest Owner, as the
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