ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENTAssignment and Assumption Agreement |
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Search Assignment and Assumption Agreement by:
ASSIGNMENT AND ASSUMPTION
OF
PURCHASE AND SALE AGREEMENT
THIS
ASSIGNMENT made and
entered into this 2nd
day of
March, 2006,
by and between AEI FUND MANAGEMENT,
INC., a
Minnesota corporation, ("Assignor") and AEI NET LEASE INCOME
&
GROWTH FUND
XIX LIMITED PARTNERSHIP, a Minnesota limited
partnership, and AEI NET LEASE INCOME & GROWTH FUND XX
LIMITED
PARTNERSHIP, a
Minnesota limited partnership (as tenants in
common, together collectively referred to as "Assignee");
WITNESSETH, that:
WHEREAS,
on the 31st day of January, 2006, Assignor
entered into
a Purchase and Sale
Agreement (as
subsequently
amended, hereinafter together collectively referred to as
the
"Agreement") for that certain property located at 1740 N. Belt
Line Road, Mesquite,
TX (the "Property") with VR Partners I,
L.P., a Texas limited
partnership, as Seller; and
WHEREAS,
Assignor desires to
assign to AEI
Net Lease
Income &
Growth Fund XIX
Limited Partnership,
an undivided
fifty percent (50.0%) interest as a tenant in common, and
AEI
Net Lease Income & Growth Fund XX Limited
Partnership,
an
undivided fifty
percent (50.0%) interest as a tenant in
common, all of its rights, title and interest in, to and under
the Agreement as hereinafter provided;
NOW,
THEREFORE, for One Dollar ($1.00) and other good and
valuable
consideration,
receipt of
which
is hereby
acknowledged, it
is hereby agreed between the parties as
follows:
1.
Assignor
assigns all of its rights, title and
interest in, to and
under the Agreement to Assignee, to
have
and to hold the same unto the Assignee, its
successors and assigns;
2.
Assignee hereby
assumes all rights, promises,
covenants, conditions and obligations under the Agreement
to
be performed by the Assignor thereunder, and agrees to
be
bound for all of the obligations of Assignor under the
Agreement.
All other terms and
conditions of the Agreement shall remain
unchanged and continue in full force and effect.
ASSIGNOR:
AEI FUND MANAGEMENT, INC.,
a Minnesota corporation
By: /s/ Robert P Johnson
Robert P.
Johnson, its President
ASSIGNEE:
AEI NET LEASE INCOME & GROWTH
FUND XIX LIMITED PARTNERSHIP,
a Minnesota limited partnership
By: AEI Fund
Management XIX, Inc.,
a
Minnesota corporation, its General Partner
By: /s/ Robert P Johnson
Robert P. Johnson, its President
AEI NET LEASE INCOME & GROWTH
FUND XX LIMITED PARTNERSHIP,
a Minnesota limited partnership
By: AEI Fund
Management XX, Inc.,
a
Minnesota corporation, its General Partner
By: /s/ Robert P Johnson
Robert P. Johnson, its President
PURCHASE AND SALE AGREEMENT
This
Purchase and Sale Agreement (the "Agreement")
entered into
by and between VR PARTNERS I,
L.P., a Texas
limited partnership
(the "Seller") and AEI
FUND MANAGEMENT,
INC., a Minnesota corporation, or its
assigns (the "Buyer").
The date on which last party hereto executes this Agreement is
hereafter referred to as the "Effective Date".
In
consideration of the mutual covenants set forth herein
and other good and valuable consideration,
the receipt
and
sufficiency of
which are herby mutually acknowledged, the
parties hereto covenant and agree as follows:
1.
Property.
Seller is
the owner of a parcel
of
real property, with
all improvements thereon, known generally
as 1740 N. Beltline
Road, Mesquite, TX., currently leased for
use as a Tractor Supply, such property being more particularly
described on
Exhibit "A" attached
hereto (collectively,
the
"Property"). The
Property includes all of Seller's rights and
interests in and to all buildings and other improvements on or
within the
appurtenant
thereto,
including
easements,
warranties,
guaranties, indemnities, and covenants. Seller
wishes to sell and Buyer wishes to purchase
the Property on
the terms and conditions set forth herein.
2.
Lease.
The Property is
being sold subject to
an
existing Lease of the Property, dated September 16, 1997
(the
"Lease"), by and between Seller, as lessor, and Tractor Supply
Company, as lessee (the "Tenant"). Buyer shall have the right
to review and approve such Lease during the
Due Diligence
Period, in Buyer's sole discretion.
3.
Closing
Date. The closing of
the Buyer's
purchase
of the Property (the "Closing") shall be on February 24, 2006,
or 10 business days from receipt of the
Adverse Change
Due
Diligence Documents, if any should be occasioned as set
forth
below in Article 8.03, whichever is later (the "Closing
Date").
4.
Purchase Price.
The purchase price for
the Property
is $2,429,600.00
(the "Purchase
Price"), If all
conditions
precedent to
Buyer's obligations to purchase have been
satisfied, Buyer shall
deposit the Purchase
Price with
the
title company
acceptable to Buyer as described in Article 6
hereof on or before the Closing Date.
Within
three (3) business days of Effective Date of this
Agreement, Buyer will deposit $25,000 (the "Earnest Money") in
an interest
bearing account with
Republic Title
of Texas,
Inc., 2626
Howell Street, 10th
Floor, Dallas, Texas
75201,
Attention: Ms.
Janine Barber (the "Closing Agent"). The
Closing Agent shall provide an insured closing letter for this
transaction for the
benefit of the Buyer issued through its
underwriter, First
American Title Insurance Company (the
"Title Underwriter").
If
for any reason this
Agreement is terminated prior to
the expiration
of the Due Diligence
Period, or the
Adverse
Change Review
Period
if such occurs because of the
unanticipated
occurrence of
Adverse Change Due Diligence
Documents as
defined above, then
the Earnest Money and
any
interest accrued
thereon shall be
immediately
returned to
Buyer. If
the transaction
contemplated hereby
proceeds to
Closing, the Earnest Money shall be paid to Seller at Closing
and Buyer shall receive a credit against the
Purchase Price
payable hereunder
in the amount of the
Earnest Money plus
interest accrued
thereon. If the Buyer does not terminate
this Agreement
as set forth herein, and when allowed in
Articles 6,
7, 8, 12, 16 or 18 hereof, or otherwise as
expressly
allowed
hereunder, the
Earnest Money shall
thereafter be deemed non-refundable, except to the extent
any
of the
contingencies
to Buyer's performance hereunder
(including without
limitation, Seller's
performance of
its
obligations hereunder) shall not be satisfied.
The
balance of the Purchase Price in
cash is to be
deposited by
Buyer into an escrow
account with the
Closing
Agent on or before the Closing Date.
5.
Escrow.
Escrow shall be opened
by Seller with the
Closing Agent upon execution of this Agreement. A copy of this
Agreement will be delivered to the Closing Agent by Seller and
will serve as escrow instructions together with any additional
instructions required
by Seller and/or Buyer or their
respective counsels.
Seller and Buyer agree to cooperate with
the Closing
Agent and sign any additional instructions
reasonably required by the Closing Agent to close escrow.
If
there is any conflict between any other instructions and
this
Agreement, this Agreement shall control.
6.
Title.
Seller shall order
upon the Effective Date of
this Agreement, at its sole expense, a commitment for an Texas
Form T-1 Owner's Policy of Title Insurance (most recent
edition) issued
by the Closing Agent
(the "Title
Company")
through the Title
Underwriter, insuring fee simple title in
the Property,
subject only to such matters as Buyer may
approve and
contain such
endorsements as Buyer
may require
that are available for a property in Texas (the "Title
Commitment"). The
Title Commitment shall show Seller as the
present fee owner of
the Property and show Buyer as the fee
owner to be insured.
All
easements,
restrictions, documents and other items
affecting title shall
be listed in Schedule "B" of the Title
Commitment. Copies of all instruments creating such
exceptions must
be attached to the Title Commitment. The
Title Company
shall also provide to Buyer a current tax
certificate relative to the Property.
Buyer
shall be allowed ten (10) business
days after
receipt of
the Title Commitment
and copies of all underlying
documents, for
examination and the
making of any
objections
thereto, said
objections to be made
in writing or deemed
waived. If any
objections are so made, the Seller shall be
allowed ten (10) business days to cure such objections or in
the alternative
to obtain a commitment
for insurable
title
insuring over Buyer's
objections. If Seller
shall decide to
make no efforts to cure Buyer's
objections, or is unable to
obtain insurable
title within said
ten (10) business day
period, this
Agreement shall be
null and void and of no
further force
and effect (and the Earnest
Money shall be
returned in full to Buyer immediately and neither party
shall
have any further
duties or obligations to the other hereunder
except as expressly provided herein).
The
Buyer shall also have five (5) business
days to
review and approve any easement, lien, hypothecation or
other
encumbrance placed of record affecting the Property after
the
date of the Title
Commitment. If necessary, the Closing Date
shall be extended by the number of days necessary
for the
Buyer to have five (5) business days to review any such items.
Such five (5) business day review period shall commence on the
date the Buyer is provided with a legible copy of the
instrument creating such exception to title.
The
Seller agrees to inform the Buyer of any item
executed by the Seller placed of record affecting the Property
after the date of the Title Commitment. If any objections are
so made, the Seller shall be allowed five (5) business days to
cure such objections or in the alternative to obtain a
commitment for
insurable
title insuring over Buyer's
objections. If Seller
shall decide to make no efforts to cure
Buyer's objections,
or is unable to obtain
insurable title
within said five (5) business day period, this Agreement shall
be null and void and
of no further force and effect (and the
Earnest Money shall be
returned in full to Buyer immediately
and neither party shall have any further duties or obligations
to the other hereunder except as expressly provided herein).
7.
Site
Inspection.
As a condition precedent to
Buyer's obligations hereunder, the Property shall be inspected
and approved
by Buyer, in Buyer's sole discretion. Said
inspection shall be completed within the Due Diligence Period,
and Buyer shall
provide Seller with its written notice of any
disapproval of
the Property at the expiration
of the Due
Diligence Period.
8.
Due Diligence
and Due Diligence Periods.
8.01
Due Diligence Documents and Due
Diligence Period.
Buyer shall
have until the end of the fifteenth (15th)
business day
after the delivery of the last of the Due
Diligence Documents,
as described
below, or receipt from
Seller of written
notice that it has provided all of the Due
Diligence Documents in
its possession or
control (the
"Due
Diligence Period")
to conduct all of
its inspections, due
diligence and review
to satisfy itself regarding each item,
the Property and this
transaction. The Buyer
shall indemnify
Seller and
hold Seller harmless from all
costs, expenses,
claims, damages
and liabilities arising, directly or
indirectly, from
any tests, investigations or studies
conducted by Buyer or its agents, representatives or employees
on the Property. Such indemnity shall
expressly survive
the
Closing or any earlier termination of this Agreement. Further,
all such inspections
or tests shall be conducted by Buyer in
accordance with the requirements of the Lease and in a manner
reasonably calculated
to minimize any interference with the
Tenant's conduct of
business at the Property. The following
Due Diligence
Documents are to be
delivered by Seller at
Seller's expense (unless specifically designated herein to
be
obtained by
Buyer), and such
documents to be of
current or
recent date
and certified to Buyer, or otherwise
the most
recent of such item in Seller's possession:
a)
A copy of
Seller's existing Owner's Title Policy for the
Property (with the coverage amount redacted);
b)
An updated
as-built ALTA survey (the "Survey"), certified
to Buyer and Title Company, and in substantial accordance with
the requirements set forth in Exhibit "B" attached hereto.
At
Closing, or upon any earlier termination of the Agreement as
provided herein, the Buyer shall reimburse Seller for all
costs of obtaining the Survey in excess of $1,500;
c)
A complete copy
of the Lease, and any amendments thereto,
including but not limited to amendments, assignments and/or
letter agreements, and any current estoppel currently in
Seller's possession;
d)
The most recent
Phase I environmental report covering the
Property, if any, in Seller's possession;
e)
If
in Seller's possession, a copy of the
Tenant's
existing insurance policies or insurance certificate for the
Property;
f)
If
in Seller's possession, any zoning
information
concerning the current zoning of the Property;
g)
A
copy of the soils
report, if any, if in Seller's
possession;
h)
If in Seller's
possession, a copy of the Certificate of
Occupancy from the governing municipality and, if in Seller's
possession, Certificate of Substantial Completion executed by
the project architect and/or general contractor for the
improvements on the Property;
i)
A
copy of the existing final building
plans and
specifications for the improvements and a copy of any roof or
other structural warranties for the improvements given
following completion thereof, if in Seller's possession;
j)
A copy of the
most recent real estate tax statement for
the Property;
k)
A rent
accounting for the last twelve (12) months showing
when Seller received each check from Tenant; and
l)
Proposed Special
Warranty Deed.
(All
of the above described documents (a) through (l) are
hereinafter collectively the "Due Diligence Documents").
After
receipt and review of
the Due Diligence Documents
or after Buyer's
inspection of the Property, Buyer may cancel
this Agreement
for any reason, in its sole
discretion,
by
delivering a cancellation notice, return receipt requested, to
Seller and Closing
Agent on or before the expiration of the
Due Diligence Period
and the Earnest Money shall be returned
in full to Buyer
immediately and neither party shall have any
further duties or
obligations to the other hereunder, except
as expressly
provided herein.
Such notice shall
be deemed
effective upon receipt by Seller.
If
notice of termination is not given on or
before the
expiration of the Due Diligence Period, all such matters shall
be deemed acceptable
and all such conditions satisfied and/or
waived and the right
to termination under Article 8.01 shall
be extinguished and
the Earnest Money shall be non-refundable
to Buyer and Closing
Agent shall release the Earnest Money to
Seller, except in the
event: of Seller's default; based upon
receipt of
materially adverse
information as set
forth in
Article 8.03;
or except as otherwise set forth
herein, in
which case the Earnest
Money shall be retained by the Closing
Agent pending
receipt of
instructions for
the disposition
thereof executed by Buyer and Seller.
8.02
Form






