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EXHIBIT
10.2
CONTRIBUTION
AGREEMENT
BY AND
AMONG
PRIP 6700,
LLC,
a Delaware limited
liability company,
JTL PROPERTIES,
LLC,
a Missouri limited
liability company.
AND
PARK HILL PARTNERS I,
LLC,
a Missouri limited
liability company
As of April 7,
2008
TABLE OF
CONTENTS
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ARTICLE 1 CONTRIBUTION AND ISSUANCE
OF MEMBERSHIP INTEREST
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1 |
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1.1
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Agreement to Contribute in Exchange for
Membership Interest
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1 |
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1.2
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Company Property
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1 |
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1.3
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Property Defined
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2 |
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1.4
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Title to the Property
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2 |
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1.5
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Use of Contribution
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3 |
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1.6
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Payment of Contribution
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3 |
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ARTICLE 2 CLOSING
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3 |
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2.1
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Time and Place
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3 |
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2.2
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JTL’s Obligations at
Closing
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3 |
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2.3
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Paladin’s Obligations at
Closing
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4 |
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2.4
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Company Income and Expenses
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4 |
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2.5
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Closing Costs
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5 |
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4.8
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Certain Tax Definitions
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5 |
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ARTICLE 3 REPRESENTATIONS, WARRANTIES
AND COVENANTS
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6 |
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3.1
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Representations and Warranties of JTL
Primarily Relating to the Membership Interest and the
Company
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6 |
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3.2
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Representations and Warranties of JTL
Primarily Relating to the Property
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10 |
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3.3
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Survival of JTL’s Representations
and Warranties
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13 |
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3.4
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Representations and Warranties of
Paladin
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13 |
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3.5
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Survival of Paladin’s
Representations and Warranties
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13 |
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3.6
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Indemnification by JTL
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14 |
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ARTICLE 4 COMMISSIONS
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14 |
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4.1
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Representation and Indemnity
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14 |
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4.2
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Survival
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15 |
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ARTICLE 5
MISCELLANEOUS
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15 |
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5.1
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Assignment
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15 |
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5.2
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Notices
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15 |
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5.3
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Modifications
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16 |
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5.4
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Calculation of Time Periods
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16 |
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5.5
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Successors and Assigns
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16 |
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5.6
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Entire Agreement
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16 |
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5.7
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Further Assurances
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17 |
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5.8
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Counterparts
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17 |
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5.9
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Severability
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17 |
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5.10
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Applicable Law
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17 |
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5.11
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No Third Party Beneficiary
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17 |
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5.12
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Exhibits and Schedule
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17 |
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5.13
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Captions
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18 |
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5.14
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Construction
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18 |
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5.15
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Survival
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18 |
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5.16
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Time of Essence
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18 |
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CONTRIBUTION
AGREEMENT
THIS CONTRIBUTION AGREEMENT
(this “ Agreement ”) is made as of April 7,
2008 (the “ Effective Date ”), by and among
PRIP 6700, LLC , a Delaware limited liability company
(“ Paladin ”), JTL PROPERTIES, LLC, a
Missouri limited liability company (“ JTL ”),
and PARK HILL PARTNERS I, LLC, a Missouri limited liability
company (the “ Company ”).
WITNESSETH:
ARTICLE 1
CONTRIBUTION AND ISSUANCE
OF MEMBERSHIP INTEREST
1.1 Agreement to
Contribute in Exchange for Membership Interest . Subject to
the terms and conditions hereinafter set forth, Paladin agrees to
contribute to the Company in cash on the Closing Date the sum of
One Million Fifty Thousand and No/100 Dollars
($1,050,000.00) (the “ Contribution ”), in
exchange for a 49% membership interest in the Company as set forth
in the Restated Operating Agreement (as hereinafter defined)
(collectively, the “ Membership Interest
”).
1.2 Company
Property . JTL represents and warrants to Paladin that the
Company owns the following:
(a) that certain tract or
parcel of land located in Jackson County, Missouri, and more
particularly described on Schedule1.2(a) , attached hereto
and by this reference made a part hereof (the property described in
this clause (a) being herein referred to as the “
Land ”), together with any rights, easements and
appurtenances pertaining to the Land;
(b) the structures and other
improvements (if any) on the Land (the property described in this
clause (b) being herein referred to as the “
Improvements ”, and the Land and the Improvements
being hereinafter sometimes collectively referred to as the “
Real Property ”);
(c) all of the right, title
and interest in, to and under all tangible personal property upon
the Land or within the Improvements, including specifically,
without limitation, appliances, equipment, furniture, carpeting,
draperies and curtains, tools and supplies, and other items of
tangible personal property owned by the Company and used
exclusively in connection with the ownership, use, maintenance or
operation of the Land and the Improvements, and including those
items of tangible personal property identified on Schedule
1.2(c) , attached hereto and incorporated herein by this
reference, but excluding (i) personal property owned by
tenants under the Leases, (ii) any equipment installed by, or
in connection with, any telecommunication or utility provider and
which is owned by any party other than the Company, and
(iii) any items leased to the Company (the property described
in this clause (c), other than the excluded items, being herein
referred to collectively as the “ Tangible Personal
Property ”).
(d) all of the right, title
and interest as landlord or lessor in, to and under all agreements
listed and described on Schedule1.2(d) (the “ Rent
Roll ”) attached hereto and made a part hereof, pursuant
to which any portion of the Land or Improvements is used or
occupied by anyone other than the Company (the property described
in this clause (d) being herein referred to collectively as
the “ Leases ”);
(e) all right, title and
interest as the owner in, to and under (i) the contracts
listed and described on Schedule 1.2(e) (the “
Service Contracts ”) attached hereto and made a part
hereof, (ii) all existing warranties and guaranties issued to
or inuring to the benefit of the Company in connection with the
Improvements or the Tangible Personal Property, and (iii) all
governmental permits, licenses and approvals, if any, belonging to
or inuring to the benefit of Company and pertaining to the Real
Property or the Tangible Personal Property (the property described
in this clause (e) being sometimes herein referred to
collectively as the “ Intangible Property
”.
1.3 Property
Defined . The Land, the Improvements, the Leases and the
Intangible Property are hereinafter sometimes referred to
collectively as the “ Property .”
1.4 Title to the
Property . At Closing, JTL covenants that the Company shall
hold good, marketable and indefeasible title to the Property
subject only to the following matters (the “ Permitted
Exceptions ”):
(a) the lien of all ad
valorem real estate taxes and assessments not yet due and payable
as of the Closing Date, subject to proration and adjustment as
herein provided;
(b) the rights of tenants, as
tenants only, under the Leases described in the Rent
Roll;
(c) the matters set forth in
Schedule 1.4(a) , attached hereto and by this reference made
a part hereof;
(d) the documents evidencing
and securing the $4,250,000.00 mortgage loan held by the Federal
Home Loan Mortgage Corporation currently encumbering the Property
(the “ Existing Financing ”).
It shall be a condition to
Paladin’s obligation to close this transaction that First
American Title Insurance Title Company (the “ Title
Company ”) shall have issued the Title Policy to the
Company (or unconditionally committed to issue the Title Policy to
the Company upon receipt of the title insurance premium therefor).
“Title Policy” means an extended coverage
American Land Title Association (ALTA) Form 1992 Owner’s
Policy of Title Insurance insuring the Company’s continuing
fee simple title to the Real Property, in the amount of
$5,200,000.00 with the standard exceptions and the creditor’s
rights exclusion deleted, and including the endorsements set forth
in Schedule 1.4(b) , attached hereto and by this reference
made a part hereof.
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1.5 Use of
Contribution . The Contribution shall be paid, used and
allocated as follows: (i) Fifty Thousand Dollars ($50,000.00)
shall be retained by the Company to be used for the certain capital
improvements and repairs to the Property that have previously been
agreed upon by JTL and Paladin; (ii) an additional Fifty
Thousand Dollars ($50,000.00) be used to fund the closing costs of
the Company contemplated by Section 2.5(a) and any additional
closing cost for the transaction contemplated by this Agreement and
agreed to in writing by Paladin, with any surplus to be retained by
the Company for working capital needs, and (iii) the remaining
Nine Hundred Fifty Thousand Dollars ($950,000.00) shall be
distributed to JTL.
1.6 Payment of
Contribution . The Contribution shall be payable in full at
Closing in cash by wire transfer of immediately available federal
funds to the proper bank account of the Company designated in
writing to Paladin prior to the Closing.
ARTICLE 2
CLOSING
2.1 Time and
Place . The consummation of the transaction contemplated
hereby (“ Closing ”) shall be held on or before
April 7, 2008 at such place and time as JTL and Paladin shall
mutually approve in writing. The date on which the Closing is
scheduled to occur hereunder (or, if earlier, the date on which
Closing occurs) is sometimes referred to herein as the
“Closing Date ”.
2.2 JTL’s
Obligations at Closing . At Closing, JTL shall:
(a) deliver to Paladin such
duly executed instruments of redemption as Paladin shall reasonably
request to evidence the redemption by the Company of membership
interests of JTL and the Dino Agnos Trust (the “ Existing
Members ”) in the Company equal to the Membership
Interest;
(b) execute and deliver to
Paladin an Amended and Restated Operating Agreement of Park Hill
Partners I, LLC (the “ Restated Operating Agreement
”) in the form attached hereto as Schedule 2.2(b)
;
(c) deliver to Paladin
written resignation from any manager or officer of the Company
other than JTL as the manager of the Company;
(d) execute and deliver to
Paladin a closing statement, prepared by JTL and approved by
Paladin, consistent with the terms of this Agreement;
(e) execute and deliver to
Paladin such evidence as Paladin’s counsel and/or the Title
Company may reasonably require as to the authority of the person or
persons executing documents on behalf of the Existing Members
;
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(f) cause its counsel to
issue an opinion in form and substance satisfactory to Paladin and
its counsel that the execution, delivery and consummation of the
transaction contemplated by this Agreement and the issuance to
Paladin of the Membership Interest by the Company will not result
in a breach or violation of the provisions of the Existing
Financing.
(g) execute and deliver or
cause to be executed and delivered to the Title Company a title
insurance affidavit, in form and content reasonably satisfactory to
Paladin and the Title Company and sufficient for the Title Company
to issue the Title Policy, which title insurance affidavit shall
include, without limitation, all matters necessary to cause the
Title Company to issue a non-imputation endorsement and a Fairway
endorsement in form and substance satisfactory to Paladin in its
sole discretion.
2.3
Paladin’s Obligations at Closing . At Closing,
Paladin shall:
(a) deliver to the Company
the full amount of the Contribution in immediately available
federal funds wire transferred to an account designated in writing
as set forth in Section 1.6;
(b) execute and deliver to
JTL such evidence as JTL’s counsel and/or the Title Company
may reasonably require as to the authority of the person or persons
executing documents on behalf of Paladin;
(c) execute and deliver to
JTL a closing statement, prepared by JTL and approved by Paladin,
consistent with the terms of this Agreement; and
(d) execute and deliver the
Restated Operating Agreement.
2.4 Company
Income and Expenses . Except as otherwise expressly
provided in this Agreement, it is the intent of JTL and Paladin
that all items of income and expense attributable to the Company
prior to April 1, 2008 (the “ Cut-Off Date
”) inure to the Existing Members and that all items of income
and expense attributable to the Company on and after the Closing
Date inure to the members under the Restated Operating Agreement.
JTL and Paladin agree to make any financial adjustments between
themselves after the Closing so as to give effect to such intent.
In furtherance of such intent the following provisions shall
apply:
(a) JTL shall cause the
Company to pay in full prior to the Closing all leasing commissions
and locators’ and finders’ fees, if any, due to leasing
or other agents (pursuant to a contractual arrangement with the
Company) for each Lease entered into by the Company prior to the
Closing Date promptly when due. Trade payables in the nature of
open accounts payable to trade vendors or suppliers and all other
accounts payable which have accrued prior to the Closing Date shall
be the obligation of the Existing Members.
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(b) Unpaid and delinquent
rent collected by the Company after the date of Closing shall be
delivered as follows: (a) if the Company collects any unpaid
or delinquent rent for the Property relating to the Cut-Off Date
and any period thereafter, the Company shall distribute any such
rent pursuant to the provisions of the Restated Operating
Agreement, and (b) if the Company collects any unpaid or
delinquent rent from the Property relating to the period prior to
the date of Closing, the Company shall, within fifteen
(15) days after the receipt thereof, deliver to JTL any such
rent which the Existing Members are entitled to hereunder. JTL and
Paladin agree that all rent received by the Company after the
Closing shall be applied first to current rentals and then to
delinquent rentals, if any, in inverse order of maturity. The
Company will make a good faith effort after Closing to collect all
rents in the usual course of the Company’s operation of the
Property, but the Company will not be obligated to institute any
lawsuit or other collection procedures to collect delinquent
rents.
(c) The provisions of this
Section 2.4 shall survive Closing.
2.5 Closing
Costs .
(a) The Company shall pay the
fees of counsel representing JTL and the fees of counsel
representing Paladin in connection with this transaction and the
premium for the Title Policy.
(b) Except as otherwise
provided herein, all other costs and expenses incident to this
transaction and the closing thereof shall be paid by the party
incurring same.
2.6 Certain Tax
Definitions .
(a) For purposes of this
Agreement, the following terms have the following
meanings:
(1) “ Tax
” means any federal, state, local, or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental, natural
resources, customs, duties, capital stock, franchise, profits,
withholding, social security, unemployment, disability, real
property, personal property, sales, use, transfer, registration,
value added, alternative or add-on minimum, estimated, or other tax
of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not, and including any
express or implied obligation of the Company to indemnify or
otherwise assume or succeed to the Tax liability of any other
Person.
(2) “ Tax Return
” means any return, declaration, report, claim for refund,
information return, or other document, including any related or
supporting schedule, statement, information or attachment, and
including any amendment thereof filed or required to be filed in
connection with the determination, assessment or collection of
Taxes of any party or the administration of any laws, regulations
or administrative requirements relating to any Taxes.
(b) The provisions of this
Section 2.6 shall survive Closing
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ARTICLE 3
REPRESENTATIONS,
WARRANTIES AND COVENANTS
3.1
Representations and Warranties of JTL Primarily Relating to
the Membership Interest and the Company . JTL hereby
represents and warrants to, and covenants with, Paladin as of the
Effective Date and as of the Closing Date, that:
(a) Authority of
JTL . Neither the execution and delivery of this Agreement
nor any other documents executed and delivered, or to be executed
and delivered, by JTL in connection with the transactions described
herein, will violate any material agreements, regulations, or laws
to or by which the Company or JTL is bound.
(b) Organization and
Authority of the Company . The Company has been duly
organized and is validly existing and in good standing as a limited
liability company under the laws of the State of Missouri. The
person signing this Agreement on behalf of the Company is
authorized to do so. Neither the execution and delivery of this
Agreement nor any other documents executed and delivered, or to be
executed and delivered, by the Company in connection with the
transactions described herein, will violate (i) any provision
of the Company’s organizational documents; or (ii) any
material agreements, regulations, or laws to or by which the
Company is bound. This Agreement has been duly authorized, executed
and delivered by the Company.
(c) Ownership of
Membership Interest . The Existing Members are the only
member in the Company and collectively own one hundred percent
(100%) of the outstanding membership interests in the Company
free and clear of any and all liens, encumbrances, pledges and
other similar interests. There are no managers or members in the
Company other than the Existing Members. Upon the issuance of the
Membership Interest to Paladin, Paladin shall own the Membership
Interest in the Company free and clear of any and all liens,
encumbrances, pledges or other interests.
(d) Authority to
Transfer Membership Interest . JTL has full right and
authority to enter into this Agreement and to cause the Company to
issue the Membership Interest to the Paladin. No documents relating
to the Company or the Membership Interest prohibit or restrict the
Company’s right to issue the Membership Interest to
Paladin.
(e) Membership Interest
Documents and Files . JTL has made and shall make available
to the Paladin for inspection a true, correct and complete copies
of all material documents and reports relating to the Membership
Interest, the Company and the Property. JTL has delivered to
Paladin true correct and complete copies of all documents and other
items set forth on Schedule 3.1(e) .
(f) Assets and
Liabilities . At the time of the Closing, the only material
assets of the Company will be the Property. To JTL’s
knowledge, the Company has no liabilities (contingent or
otherwise), other than as set forth on Schedule 3.1(f) ,
attached hereto and by this reference made a part
hereof.
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(g) Taxes and Tax
Returns . All Tax Returns required to be filed by, on
behalf of or with respect to the income, assets or operations of,
JTL and the Company have been timely filed with the appropriate
taxing authorities in all jurisdictions in which such Tax Returns
are required to be filed, and all such Tax Returns were accurate
and complete in all material respects. As of the date hereof,
(i) all Taxes payable by, on behalf of or with respect to the
income, assets or operations of, JTL and the Company have been
fully and timely paid, and (ii) adequate reserves or accruals
for Taxes have been provided with respect to any period for which
Tax Returns are not yet due and have not yet been filed. Neither
JTL nor the Company has executed or filed with the Internal Revenue
Service or any other taxing authority any agreement, waiver or
other document or arrangement extending or having the effect of
extending the period for assessment or collection of Taxes
(including, but not limited to, any applicable statute of
limitation), and no power of attorney with respect to any Tax
matter is currently in force with respect to JTL or the
Company.
(h) No Defaults
. JTL has performed all obligations required to be performed by it
under the Operating Agreement for Park Hill Partners I, LLC, dated
June 23, 2006 (the “ LLC Agreement ”) and
is not in breach or default of any provisions of the LLC Agreement.
No action or legal proceeding is pending or threatened against the
Company or any of the Existing Members relating to the Membership
Interest or the Company.
(i) Employment
Matters . The Company has no employees and has never had
any employees.
(j) Insurance .
Schedule 4.1(j), attached hereto and by this reference made a
part hereof, lists each insurance policy maintained by the Company
with respect to its properties, assets and business. All of such
insurance policies are in full force and effect, and the Company is
not in default with respect to its obligations under any of such
insurance policies and has not received any notification of
cancellation of any of such insurance policies. Furthermore,
neither JTL nor the Company has received any written notice from
any insurance company or board of fire underwriters of any defect
or inadequacies in or on the Real Property or any part or component
thereof that would materially and adversely affect the insurability
of the Real Property or cause any material increase in the premiums
for insurance on the Real Property, and that have not been cured or
repaired.
(k) No Option or Right
of First Refusal . There exists no option, right of first
refusal, letter of intent, agreement to sell, or other similar
right with respect to the issuance of the Membership
Interest.
(l) Compliance with
Laws . To JTL’s knowledge, (i) the Company is in
compliance in all material respects, and has received no written
notice that it is not in compliance in any material respect, with
any statute, law, ordinance, rule, regulation,
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judgment, order, decree,
governmental permit or other governmental authorization or approval
applicable to it or to the business of the Company, and
(ii) all governmental authorizations or approvals material for
the ownership and operation of the Property have been duly and
lawfully obtained and are in full force and effect. There are no
proceedings pending or, to the knowledge of JTL, overtly threatened
which may result in the revocation, cancellation or suspension, or
any materially adverse modification, of any thereof. Neither the
Company nor JTL has received notice of any alleged violation of any
applicable statute, law, ordinance, rule, regulation, judgment,
order, decree, governmental permit or other governmental
authorization or approval necessary for the conduct of the business
of the Company or for
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