Exhibit 10.1
AGREEMENT FOR SALE OF MEMBERSHIP
INTERESTS
THIS AGREEMENT FOR SALE OF
MEMBERSHIP INTERESTS is
made as of this 22nd day of March, 2005 (this
“Agreement”), by and between WHITEHALL V-S REAL
ESTATE LIMITED PARTNERSHIP (“Whitehall”), a
Delaware limited partnership, BRIDGE STREET REAL ESTATE FUND
1996, L.P. (“Bridge”), a Delaware limited
partnership, STONE STREET GMH-S CORP. (“Stone
Street”), a Delaware corporation, STONE STREET REAL ESTATE
FUND 1996, L.P. , a Delaware limited partnership (“Stone
Street Fund”, together with Whitehall, Bridge, and Stone
Street, sometimes collectively hereinafter referred to as
“Whitehall Sellers”), GH COLLEGE PARK, INC. , a
Pennsylvania corporation (“College Park”), GARY M.
HOLLOWAY, SR. (“Holloway”) , BRUCE F.
ROBINSON (“Robinson”), FRANK TROPEA
(“Tropea”), JOSEPH M. COYLE (“J.
Coyle”), MICHAEL MAYOCK (“Mayock”),
LOUIS BATTAGLIESE (“Battagliese”), ROBERT
DIGIUSEPPE (“DiGiuseppe”), DENISE HUBLEY
(“Hubley”), DAVID FORREST
(“Forrest”), MICHAEL MAHER (“Maher”)
and CATHY COYLE (“C. Coyle”; together with
Holloway, Robinson, Tropea, J. Coyle, Mayock, Battagliese,
DiGiuseppe, Hubley, Forrest and Maher, collectively hereinafter
referred to as “GMH Partners”; together with College
Park, collectively hereinafter referred to as “GMH
Sellers”) (Whitehall Sellers and GMH Sellers sometimes
collectively hereinafter referred to as, “Seller”), and
STATE COLLEGE INTERMEDIATE, LLC , a Delaware limited
liability company and GMH COMMUNITIES, LP , a Delaware
limited partnership (collectively,
“Purchaser”).
WHEREAS , the Whitehall Sellers and GMH Sellers are all
of the members of WHGMH REALTY, L.L.C., a Delaware limited
liability company (the “LLC”), which LLC was
formed
pursuant to that certain Limited Liability
Company Agreement of WHGMH Realty, L.L.C., dated December 19,
1995, as amended by that certain Amendment to Limited Liability
Company Agreement of WHGMH Realty, L.L.C. dated of even date
herewith, as amended (the “LLC Agreement”);
WHEREAS , the parties have agreed to enter into a
transaction pursuant to which Purchaser will acquire Seller’s
entire membership interests in the LLC (the “LLC
Interests”);
WHEREAS , the parties hereto desire to enter into this
Agreement in order to memorialize the transaction described
above.
NOW, THEREFORE, in consideration of
the mutual promises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound,
agree as follows:
ARTICLE 1
SALE OF THE
PROPERTY
1.1
Property to be Sold and
Conveyed . Subject
to the terms, conditions and covenants of this Agreement, each of
the GMH Sellers and Whitehall Sellers agrees to sell, transfer and
assign to Purchaser, and Purchaser agrees to purchase from Seller,
as a several but not joint obligation, their respective Membership
Interests which Seller owns, which Membership Interests shall be
allocated amongst Purchaser in the manner designated by
Purchaser. The LLC is the current owner of fee simple title
to that certain 196 unit apartment project, known as State College
Park Apartments located in State College, Pennsylvania, being more
particularly described in Exhibit “A” (the
“Property”).
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ARTICLE 2
CONSIDERATION
2.1
Purchase Price
. Purchaser shall pay to each
of the Whitehall Sellers and GMH Sellers for the sale (in the case
of the Whitehall Sellers) and sale and/or contribution (in the case
of the GMH Sellers) of their respective Membership Interests to
Purchaser for the aggregate price of Nineteen Million Sixty-One
Thousand Seven Hundred Fifty and 00/100 Dollars ($19,061,750.00)
(the “Purchase Price”) which shall be payable to the
Whitehall Sellers in cash and to the GMH Sellers in cash and/or
operating units in GMH Communities, LP, which Purchase Price shall
be adjusted and apportioned as provided herein and allocated
amongst the Seller in accordance with their respective percentage
interests in the LLC as specified in the LLC Agreement (the
“Percentage Interests”), as set forth on
Schedule 2 attached hereto and made a part hereof.
2.2
Payment of the Purchase
Price . The
Purchase Price shall be paid as follows:
(a) A deposit of TWO HUNDRED
THOUSAND DOLLARS ($200,000.00) (the “Deposit”) shall be
paid by Purchaser to Commonwealth Land Title Insurance Company,
1700 Market Street, Suite 2110, Philadelphia, Pennsylvania
19103, Attention: Celeste Heuberger, as escrow agent (the
“Escrow Agent”), within five (5) business days
after the Effective Date (as defined herein), which at
Purchaser’s option may be by certified or bank
cashier’s check or by wire transfer. For purposes of
this Agreement, “Effective Date” shall mean the date on
which Purchaser and all of the Whitehall Sellers and GMH Sellers
have executed this Agreement. The Deposit shall remain applicable
to the Purchase Price and shall become non-refundable to Purchaser
except as may otherwise be provided in accordance with the terms
and provisions hereof. The Deposit shall be held in escrow until
the Closing (defined below), at which time the Deposit shall be
allocated amongst the Whitehall Sellers and GMH Sellers in
accordance with their Percentage Interests, as a credit against the
Purchase Price, or may be sooner released in
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accordance with the terms hereof.
Escrow Agent shall be authorized, at Purchaser’s option, to
invest the Deposit in an interest-bearing account in the name of
Escrow Agent in such commercial bank as it deems appropriate. All
interest or other earnings on the Deposit shall become a part of
the Deposit and be disbursed to the party entitled to the Deposit
pursuant to the terms and provisions hereof, and
(b)
The balance of the Purchase Price
shall be paid by Purchaser to the Whitehall Sellers, in cash, and
GMH Sellers, in cash and/or operating units, in accordance with
their Percentage Interests by wire transfer funds, or issuance of
operating units, at Closing, to such account or accounts as
directed by the Whitehall Sellers and GMH Sellers, as applicable,
in writing.
ARTICLE 3
CLOSING
3.1
Closing . The parties agree that the closing of
the purchase and sale of the Membership Interests (the
“Closing”) shall take place on or prior to fifteen (15)
days following the expiration of the Due Diligence Period, TIME
BEING OF THE ESSENCE, or such sooner date on which the parties may
agree (such date, as the same may be changed or extended, being
referred to herein as the “Closing Date”). The Closing
shall take place through an escrow closing with the Escrow
Agent.
3.2
Apportionments; LLC
Allocations .
(a)
At the Closing, the following items
shall be apportioned as of the Closing Date:
(i)
Real estate taxes and assessments,
if any, for the current calendar year; provided, however, that if
the amount of such taxes and assessments for such year is
not
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known at the time of Closing, such
apportionment shall be based upon the most current assessment of
the Property and the tax rate for the previous calendar year.
The current installment of any general or special assessments
levied or assessed for work completed prior to the Closing shall be
apportioned between Seller and Purchaser as of the Closing Date;
provided, however, that any prior installments of any general and
special assessments due and payable prior to the Closing Date shall
be apportioned to Seller and future installments of any general and
special assessments due and payable following the Closing Date
shall be apportioned to Purchaser;
(ii)
Fuel, water, sewer use and other
municipal utility charges;
(iii)
All rents collected from tenants
under the Leases for the month in which the Closing occurs and
other income shall be prorated as of the Closing Date in accordance
with the terms hereof, and Seller shall retain all rights to rents
allocable to periods prior to the Closing Date. With respect to
such rents for the month in which Closing occurs which are actually
collected by the LLC prior to Closing, the LLC shall pay to
Purchaser, by deduction of the amount due on Purchaser’s
closing statement, the amount of any rents actually collected by
the LLC from tenants under the Leases relative to the period from
and after the Closing Date. Rents received by the LLC after
the Closing Date shall be applied by the LLC first to current rents
and/or uncollected rents due for the period after the Closing Date,
then to pay reasonable costs of collection incurred by the LLC,
then to Seller, to the extent of any uncollected rents for the
period prior to the Closing Date (the “Delinquent
Rents”), then to Purchaser, for future rents due or to become
due under the Leases. The LLC shall use reasonable efforts after
Closing to collect such Delinquent Rents, but nothing herein shall
obligate or require
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the LLC to institute a lawsuit,
evict any tenant, exercise any lease remedies, or otherwise incur
any costs or expenses to recover such amounts;
(iv)
Purchaser shall receive a credit to
the Purchase Price equal to the amount of (A) that portion of
any prepaid rents applicable to the time period after the Closing
actually received by the Partnership, (B) security deposits
and other deposits paid by the tenants under any of the Leases not
applied by the LLC prior to Closing; and (C) all interest
unpaid and owing thereon or required by law to be paid to tenants,
if any; and
(v)
Amounts owing, prepaid or received
by the LLC prior to Closing on all Contracts.
Purchaser, at its sole option, shall
have the exclusive right to file and prosecute an application for a
real estate tax abatement or reduction or any litigation against
the applicable taxing authorities relating to any taxes assessed
against the Property. The GMH Sellers agree to fully
cooperate with Purchaser, at no cost or expense to the GMH Sellers,
with respect to any such application and/or litigation and further
authorize Purchaser to endorse and cash any tax abatement or
reduction check which Purchaser receives or which is issued to
Purchaser and, for such purposes, the GMH Sellers grant to
Purchaser an irrevocable power of attorney coupled with an
interest. The amount of any abatement or reduction actually
obtained, after adjustment of the legal fees, consultant fees and
related costs incurred in obtaining the abatement or reduction,
shall be apportioned between the parties.
In the event any apportionments
pursuant to this Agreement or, subsequent to Closing, are found to
be erroneous, then either party hereto who is entitled to
additional monies shall invoice the other party for such additional
amounts as may be owing, with any substantiation reasonably
requested by the other party, and such amount shall be paid within
twenty (20) days
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from receipt of the invoice and
verification of the same. This obligation shall survive the Closing
until the date of the Final True-Up (as hereinafter defined).
Notwithstanding the foregoing, if current real estate taxes and
assessments, if any, for the current fiscal tax period cannot be
determined at Closing, then such taxes and assessments shall be
adjusted when the actual amount(s) of such taxes and assessments
are known (not later than the date of the Final
True-Up).
Except for liabilities and expenses
prorated and/or expressly assumed in this Agreement, and/or the
Closing Documents, the LLC shall remain obligated for any and all
liabilities and expenses related to the ownership and operation of
the Property accruing prior to the Closing Date in accordance with
the terms and provisions of the Escrow Agreement (as hereinafter
defined) and Purchaser shall be liable for any and all liabilities
and expenses related to the ownership and operation of the Property
accruing from and after the Closing Date.
(b)
All items of income, gain, loss,
deduction and credit for calendar year 2005 in respect of the
Membership Interests shall be allocated between the Whitehall
Sellers and GMH Sellers, on the one hand, and Purchaser, on the
other hand, using the closing of the books method, notwithstanding
anything to the contrary set forth in the LLC Agreement, except
that the Whitehall Sellers and GMH Sellers agree to deposit the sum
of Two Hundred Thousand Dollars ($200,000.00) of the Purchase Price
into escrow with the Title Company (the “Reserve”)
under a mutually satisfactory escrow agreement (the “Escrow
Agreement”), which Reserve shall either be disbursed to
Purchaser, or shall be augmented by Purchaser, in accordance with
the calculation of the Final True-Up which shall take place no
later than 180 days after the Closing Date, at which time the
balance of the Reserve in the escrow account shall be disbursed to
the Whitehall Sellers and GMH Sellers in accordance with their
Percentage Interests. The provisions
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of this paragraph shall survive the execution
and delivery of this Agreement and the Assignment and Assumption
(as hereinafter defined). This Section shall survive
Closing for a period of 180 days. Prior to that date which is
180 days after the Closing, the parties hereto shall conduct a
final accounting of all apportionments and adjustments provided for
herein (the “Final True-Up”).
3.3
Seller’s
Deliveries . At the
Closing, each of the Whitehall Sellers and GMH Sellers shall
deliver, as a several but not joint and several obligation, the
following to Purchaser (each referred to hereinafter as a
“Closing Document”):
(a)
an agreement of assignment and
assumption of the Membership Interests in the form attached hereto
as Exhibit “B” (the “Assignment and
Assumption”);
(b)
a FIRPTA Affidavit; and
(c)
copies of organizational documents
and other evidence reasonably satisfactory to the Escrow Agent of
the capacity and authority of the persons signing, on behalf of
each of the Whitehall Sellers and GMH Sellers, this Agreement and
all documents delivered pursuant hereto and for the closing of this
transaction.
3.4
Purchaser’s Deliveries and
Closing Conditions . At the Closing, Purchaser shall deliver
to the Whitehall Sellers and GMH Sellers (a) copies of
organizational documents and other evidence reasonably satisfactory
to the Whitehall Sellers and GMH Sellers and the Escrow Agent of
the capacity and authority of the persons signing this Agreement on
behalf of Purchaser and all documents delivered hereto,
(b) the balance of the Purchase Price, as adjusted, and
(c) all other executed documents and instruments reasonably
necessary to close this transaction or otherwise required by this
Agreement. Purchaser’s obligations hereunder are subject to
(i) the representations and warranties of each of the
Whitehall Sellers and the GMH Sellers set forth in
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Section 7.2 hereof being true
and correct as of the Closing Date and (ii) the receipt by
Purchaser, at the Closing, of a bringdown or endorsement to the
existing ALTA Extended Owner’s Policy of Title Insurance (the
“Title Policy”) issued by the Escrow Agent, dated as of
the Closing Date. Purchaser’s obligations hereunder are
also subject to the assignment of the Membership Interests, which
Membership Interests shall be assigned by the Whitehall Sellers and
GMH Sellers to Purchaser “as is”; provided, however,
that the Membership Interests shall be assigned free and clear of
any liens, claims, pledges and encumbrances. The Whitehall
Sellers and GMH Sellers shall not, as a several and not a joint and
several obligation, encumber the Membership Interests without
Purchaser’s prior written consent.
3.5
Closing . Except to the extent provided herein,
each party shall pay its own costs and attorney’s fees
associated with this transaction. Any transfer, conveyance,
documentary and intangible fees and taxes due in connection with
the assignment of the Membership Interests to Purchaser shall be
split equally by Purchaser and the Partnership. Purchaser
shall pay for the costs of the title search and the premium for
issuance of the owner’s and lender’s Title Policy and
any endorsements thereto. Purchaser shall remain solely responsible
for the payment of all costs and fees associated with any and all
updates to the Existing Survey (as hereinafter defined) and any and
all costs and fees incurred by Purchaser in the performance of its
due diligence investigation and studies of the Property. The
reasonable escrow fees of the Escrow Agent, if any, shall be paid
one-half by the LLC and one-half by Purchaser.
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ARTICLE 4
TITLE AND
CONDITION OF PROPERTY
4.1
Title . Purchaser shall have the right to obtain
an update (the “Updated Survey”) to any existing survey
(the “Existing Survey”), at its sole cost and
expense.
4.2
Condition of Property
.
(a)
PURCHASER ACKNOWLEDGES AND AGREES
THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER
SELLER, NOR ANY AGENT OR REPRESENTATIVE OF SELLER HAS MADE, AND
SELLER IS NOT LIABLE OR RESPONSIBLE FOR OR BOUND IN ANY MANNER BY,
ANY EXPRESS OR IMPLIED REPRESENTATIONS, WARRANTIES, COVENANTS,
AGREEMENTS, OBLIGATIONS, GUARANTEES, STATEMENT, INFORMATION OR
INDUCEMENTS PERTAINING TO THE PROPERTY OR ANY PART THEREOF,
TITLE TO THE PROPERTY, THE PHYSICAL CONDITION THEREOF, THE
ENVIRONMENTAL CONDITION THEREOF, THE FITNESS AND QUALITY THEREOF,
THE INCOME EXPENSES OR OPERATION THEREOF, AND THE VALUE AND
PROFITABILITY THEREOF, THE USES WHICH CAN BE MADE THEREOF, CURRENT
AND FUTURE ZONING, THE SUITABILITY OF THE PROPERTY OR ANY PORTION
THEREOF FOR RENOVATION OR CONSTRUCTION, OR ANY OTHER MATTER OR
THING WHATSOEVER WITH RESPECT THERETO. EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT, PURCHASER FOREVER RELEASES AND DISCHARGES
SELLER FROM ANY AND ALL OBLIGATIONS WITH RESPECT TO THE FOREGOING,
INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS OR OTHER
LIABILITIES WHATSOEVER WITH RESPECT THERETO. EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT, PURCHASER ACKNOWLEDGES, AGREES,
REPRESENTS AND WARRANTS THAT PURCHASER IS NOT RELYING
UPON
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ANY REPRESENTATION OR WARRANTY OF
ANY SELLER PARTY (AS HEREINAFTER DEFINED), NOR ANY BROKER OR
REPRESENTATIVE OF SELLER, WHETHER IMPLIED, PRESUMED OR EXPRESSLY
PROVIDED AT LAW OR OTHERWISE, AND THAT IT HAS HAD SUCH ACCESS TO
THE PROPERTY AND TO INFORMATION AND DATA RELATING TO ALL OF SAME AS
PURCHASER HAS CONSIDERED NECESSARY, PRUDENT, APPROPRIATE OR
DESIRABLE FOR THE PURPOSES OF THIS TRANSACTION. WITHOUT LIMITING
THE FOREGOING, PURCHASER ACKNOWLEDGES AND AGREES THE PURCHASER IS
PURCHASING THE MEMBERSHIP INTERESTS “AS-IS”, EXCEPT AS
OTHERWISE SET FORTH HEREIN. PURCHASER FURTHER ACKNOWLEDGES
AND AGREES THAT SELLER IS UNDER NO DUTY TO MAKE ANY INQUIRY
REGARDING ANY MATTER THAT MAY OR MAY NOT BE KNOWN TO ANY
SELLER PARTY OR ANY BROKER OF SELLER. THIS SECTION SHALL
SURVIVE THE CLOSING, OR, IF THE CLOSING DOES NOT OCCUR, SHALL
SURVIVE THE TERMINATION OF THIS AGREEMENT.
(b)
Without limiting the terms and
conditions of Article 4.2(a) above, none of the Whitehall
Sellers or the GMH Sellers warrant that the Property complies with
any current municipal, county, state or federal law, ordinance,
regulation or building code. Purchaser assumes all responsibility
to review with such appropriate governmental and quasi-governmental
authorities as Purchaser deems necessary. The provisions of this
paragraph shall survive Closing. As used in this Agreement,
“Purchaser Party” or “Purchaser Parties”
shall mean Purchaser, any permitted assignee of Purchaser, and any
partner or member in, or, as applicable, any shareholder or
director of Purchaser, or any permitted assignee of Purchaser, as
well as the officers, employees, attorneys, and agents of Purchaser
or any permitted assignee of Purchaser. As used
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in this Agreement, “Seller Party” or
“Seller Parties” shall mean each of the Whitehall
Sellers and GMH Sellers, and any partner or member in, or, as
applicable, any shareholder or director of each of the Whitehall
Sellers and GMH Sellers, as well as the officers, employees,
attorneys, and agents of each of the Whitehall Sellers and GMH
Sellers.
4.3
Waiver and Release
. Except as set forth in
Section 7.2(A) hereof, without limiting the provisions of
Section 4.2(a) and (b), Purchaser, for itself and any
successors and assigns of Purchaser, waives its right to recover
from, and forever releases and discharges, and covenants not to
sue, any of the Whitehall Sellers or the GMH Sellers,
Seller’s Affiliates or any Seller Parties with respect to any
and all Claims, whether direct or indirect, known or unknown,
foreseen or unforeseen, that may arise on account of or in any way
be connected with the Property including the physical,
environmental or structural condition of the Property or any law or
regulation applicable thereto, including, without limitation, any
Claim or matter relating to the use, presence, discharge or release
of Hazardous Materials on, under, in, above or about the
Property. In connection with this Section 4.3, Purchaser
hereby waives, releases and agrees not to commence any action,
legal proceeding, cause of action or suits in law or equity, of
whatever kind or nature, including, but not limited to, a private
right of action under the federal superfund laws, 42 U.S.C.
Sections 9601 et . seq . or any similar law,
rule or regulation and any action or claim based upon any
common law or case law directly or indirectly, against any of the
Whitehall Sellers or the GMH Sellers, Seller’s Affiliates or
Seller Parties, or their agents in connection with the Claims
described above, except as specifically otherwise provided by
Section 7.2(A) hereof. Purchaser elects to and does
assume all risk for such Claims heretofore and hereafter arising,
whether now known or unknown by Purchaser, except as specifically
otherwise provided by Section 7.2(A) hereof. To the
extent permitted by law, Purchaser hereby
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agrees, represents and warrants that Purchaser
realizes and acknowledges that factual matters now unknown to it
may have given or may hereafter give rise to causes of action,
claims, demands, debts, controversies, damages, costs, losses and
expenses which are presently unknown, unanticipated and
unsuspected, and Purchaser further agrees, represents and warrants
that the waivers and releases herein have been negotiated and
agreed upon in light of that realization and that, except as
specifically otherwise provided by Section 7.2(A) hereof,
Purchaser nevertheless hereby intends to release, discharge and
acquit the Whitehall Sellers and GMH Sellers from any such unknown
causes of action, claims, demands, debts, controversies, damages,
costs, losses and expenses which might in any way be included as a
material portion of the consideration given to such Sellers by
Purchaser in exchange for the Seller’s performance
hereunder. Without limitation of the foregoing, if Purchaser
has actual knowledge of (i) a default in any of the covenants,
agreements or obligations to be performed by any of the Sellers
under this Agreement and/or (ii) any breach of or inaccuracy
in any representation of any Seller made in this Agreement which
would entitle Purchaser to terminate this Agreement, and
nonetheless elects to proceed to Closing, then Purchaser shall be
deemed to have waived any such default and/or breach or inaccuracy
and shall have no Claim against any Seller with respect
thereto.
ARTICLE 5
PRE-CLOSING
DELIVERIES OF SELLER; DUE DILIGENCE
5.1
Deliveries of GMH
Sellers . The GMH
Sellers have provided, or shall provide within five
(5) business days following the Effective Date, to Purchaser,
copies of the Contracts, current rent rolls for the Property, a
copy of the certificate of insurance evidencing the insurance
coverage in place as of the Effective Date and, to the extent in
the possession of the GMH Sellers
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or the Partnership, copies of the
Permits and Reports, the Miscellaneous Agreements and all
documents, records and other information relating to the Property,
including without limitation all of the materials listed in
Schedule 1 to the extent such materials are in the
possession of the GMH Sellers or the LLC (collectively, “
Seller Deliverables ”). The Whitehall Sellers
shall provide to the GMH Sellers or the Purchaser copies of any and
all tax returns of the Partnership, and documentation in support
thereof, which may not have been previously given to the GMH
Sellers.
5.2
No Obligation to
Comply . None of
the Whitehall Sellers or the GMH Sellers shall be obliged to cure
any defects in the Property or violations of law with respect to
the Property, or to make any capital improvements to the Property
or repairs to the Property. Between the Effective Date and
the Closing Date, the GMH Sellers will advise Purchaser of any
written notice GMH Sellers receive after the Effective Date from
any Governmental Authority relating to or in connection with the
Property’s violation of any law or municipal ordinance, order
or requirement.
5.3
Due Diligence
.
(a)
Purchaser, from time to time prior
to Closing, shall have the right to inspect and investigate each
and every aspect of the Property, perform surveys, dig test holes,
make engineering studies, environmental studies and perform
whatever other tests and evaluations of the Property as Purchaser
may elect, all either independently or through agents,
representatives or contractors of Purchaser’s choosing.
Such investigation by Purchaser may include, without limitation:
(i) matters relating to governmental and other legal
requirements with respect to the Property, including without
limitation taxes, assessments, zoning, use permit requirements and
building codes; (ii) compliance with zoning, land use,
building, environmental
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and other statutes, rules, or regulations
applicable to the Property; (iii) the physical condition of
the Property, including, without limitation, the interior, the
exterior, the square footage of the improvements and of each tenant
space therein, the structure, the roof, the paving, the utilities,
and all other physical and functional aspects of the Property; and
(iv) all matters relating to the income and operating or
capital expenses of the Property and all related financial
matters. The GMH Sellers shall freely cooperate with
Purchaser’s due diligence of the Property, and shall provide
Purchaser with all documents, files and data requested by Purchaser
relating to the Property.
(b)
In connection with any entry by
Purchaser or any of its agents, employees or contractors onto the
Property, Purchaser shall give the GMH Sellers reasonable advance
notice of such entry and shall conduct such entry and any
inspections so as to reasonably minimize interference with
Tenants. Purchaser shall maintain, or shall cause its
contractors to maintain, public liability and property damage
insurance insuring Purchaser against any liability arising out of
any entry or inspections of the Property pursuant to the provisions
hereof. Such insurance shall be in the minimum amount of
$1,000,000 combined single limit for injury to or death of one or
more persons in an occurrence. Purchaser shall indemnify and
hold the Partnership, the Whitehall Sellers and the GMH Sellers
harmless from and against any Claims arising out of or relating to
any entry on the Property by Purchaser in the course of performing
any inspections, testings or inquiries.
(c)
At any time prior to the thirtieth
(30th) day following the Effective Date (such period, the “
Due Diligence Period ”), Purchaser may, in its sole
and absolute discretion, and for any or no reason whatsoever,
terminate this Agreement by written notice to the Whitehall Sellers
and the GMH Sellers, whereupon the Deposit shall be returned to
Purchaser on the first
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business day following such termination, by wire
transfer (pursuant to Purchaser’s wiring instructions) of
immediately available funds. The foregoing termination rights
have been granted to Purchaser in consideration of the payment of
Ten Dollars ($10.00) and other independent, valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the
Whitehall Sellers and the GMH Sellers.
(d)
Notwithstanding any provision in
this Agreement to the contrary or unless required by law, Purchaser
shall not, and shall cause all of its agents, contractors or
representatives not to, contact or communicate with any
Governmental Authority regarding any Hazardous Materials (as
hereinafter defined) on the Property, without prior consent of the
Whitehall Sellers and GMH Sellers. The GMH Sellers shall have
the right to have a representative present when Purchaser or any
agent, contractor or representative of Purchaser has, or causes to
be had, any such contact or communication with any Governmental
Authority. The GMH Sellers agree to cooperate in making a
representative available during normal business hours and upon 48
hours’ prior written notice for such purposes. As used
herein, “Governmental Authority” shall mean any
federal, state, county or municipal government, or political
subdivision thereof, any governmental agency, authority, board,
bureau, commission, department, instrumentality, or public body, or
any court or administrative tribunal. As used herein,
“Hazardous Materials” shall mean materials, wastes or
substances that are (a) included within the definition of any
one or more of the terms “hazardous substances,”
“hazardous materials,” “toxic substances,”
“toxic pollutants” and “hazardous waste” in
the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (42 U.S.C. Sections 9601,
et seq .), the Resource Conservation and Recovery Act
of 1976 (42 U.S.C. Section 6901, et seq .), the
Clean Water Act (33 U.S.C. Section 1251, et seq
.), the Safe Drinking Water
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Act