Exhibit 10.22
RIGHT
OF FIRST REFUSAL AGREEMENT
THIS RIGHT OF REFUSAL
AGREEMENT (this “ Agreement ”) is
entered into as of May 5, 2008, by and among (i) the
entities listed as “grantors” on the signature
pages of this Agreement (each a “ Grantor ”
and collectively the “ Grantors ”), and
(ii) Senior Housing Properties Trust, a Maryland real estate
investment trust (“ SNH ”).
WITNESSETH:
WHEREAS,
the Grantors have agreed to grant to SNH a right of first refusal
to purchase certain medical office buildings, clinical laboratory
buildings and biomedical, pharmaceutical and laboratory buildings,
listed on Schedule A hereto and as more particularly
described on Schedules B-1 through B -35 hereto (each
a “ ROFR Property ”, and collectively, the
“ ROFR Properties ”), subject to, and upon, the
terms and conditions of this Agreement;
NOW, THEREFORE ,
for and in consideration of the mutual covenants
contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by each
party hereto, the parties hereto hereby agree as follows:
1.
Right of First Refusal to
Purchase . The Grantors hereby grant to
SNH, subject to the Declaration of Trust of HRPT Properties Trust
(“ HRPT ”) and subject to and in accordance with
the terms and conditions of this Section 1 , the right
of first refusal to purchase the ROFR Properties.
(a)
If a Grantor desires to sell a ROFR Property, or if a Grantor shall
otherwise receive an offer from a party other than SNH, or its
affiliates, for any such sale or transfer which such Grantor
intends to accept, then such Grantor shall, prior to entering into
an agreement with respect to such sale, provide, or shall cause to
be provided, written notice (the “ ROFR Notice
”) to SNH of its intention to effect such a transaction,
which ROFR Notice shall specify the cash purchase price for the
ROFR Property, the terms of payment, the closing date and the other
material business terms of such transaction. SNH shall have fifteen
(15) business days after receipt of the ROFR Notice to notify such
Grantor in writing (the “ ROFR Acceptance Notice
”) of its intent to purchase the ROFR Property on the terms
and conditions set forth in the ROFR Notice. The negotiation and
execution of a mutually acceptable purchase and sale agreement must
occur no more than fifteen (15)
calendar days
after the date on which SNH gave the Grantor the ROFR Acceptance
Notice.
(b)
If SNH fails or elects not to give timely a ROFR Acceptance Notice,
or if a mutually acceptable purchase and sale agreement is not
executed within fifteen (15) calendar days after the date on which
SNH gave the Grantor the ROFR Acceptance Notice, then the Grantor
shall have three hundred sixty-five (365) days from the date
thereof to sell the ROFR Property to any third party (including any
party making the offer set forth in subsection (a) above) for
a purchase price not less than 95% of the cash purchase price
specified in the ROFR Notice. If such sale shall not have occurred
within such three hundred sixty-five (365) day period, then the
sale of the ROFR Property shall once again be subject to the right
of first refusal set forth in this Agreement.
(c)
Excluded Transactions .
The following transactions shall be excluded from
the right of first refusal contained herein:
(i)
A transfer of any ROFR Property to a governmental or
quasi-governmental agency (collectively, the “ Agency
”) as part of a tax reduction or tax abatement program in
which a Grantor leases a ROFR Property back from the Agency;
provided, however, a transfer or assignment of such
Grantor’s interest as tenant in the lease of the ROFR
Property from the Agency shall be subject to the terms and
conditions of this Agreement and the right of first refusal granted
herein;
(ii)
A transfer of a ROFR Property to an entity that is wholly owned,
directly or indirectly, by HRPT so long as such entity continues to
be wholly owned directly or indirectly by HRPT;
(iii)
A sale of a ROFR Property to any tenant or other party having a
right of first refusal or offer to purchase in effect on the date
hereof on the terms and conditions of such right of first refusal
or offer to purchase;
(iv)
A sale of the ROFR Property to the appropriate condemning authority
pursuant to eminent domain or under threat of eminent
domain;
(v)
Any financing, reorganization,
recapitalization,
reclassification,
exchange of shares or spin-offs to HRPT shareholders, in each case
where there is no Change of Control.
2.
Change of Control
. For the purposes of this Agreement, a direct or
indirect Change of Control shall be deemed a sale. HRPT shall give
SNH prompt written notice of the occurrence of any Change of
Control with respect to any Grantor. In such event, subject to the
provisions of the Declaration of Trust of HRPT, SNH shall have the
option, exercisable by written notice to HRPT within sixty (60)
days after HRPT’s notice to SNH regarding such Change of
Control, to purchase any or all of the ROFR Properties owned by the
Grantor to which such Change of Control applies (or any Subsidiary
of such Grantor), for a purchase price equal to, with respect to
each such ROFR Property, the Change of Control Purchase
Price.
As used in this
Agreement:
(i)
“ Affiliated Person
” shall mean, with respect to any
Person, (a) in the case of any such Person which is a
partnership, any partner in such partnership, (b) in the case
of any such Person which is a limited liability company, any member
of such company, (c) any other Person which is a Parent, a
Subsidiary, or a Subsidiary of a Parent with respect to such Person
or to one or more of the Persons referred to in the preceding
clauses (a) and (b), (d) any other Person who is an
officer, director, trustee or employee of, or partner in or member
of, such Person or any Person referred to in the preceding clauses
(a), (b) and (c), and (e) any other Person who is a
member of the Immediate Family of such Person or of any Person
referred to in the preceding clauses (a) through
(d).
(ii)
“ Capitalization
Value ” shall mean, with
respect to any ROFR Property, the Net Operating Income of such ROFR
Property divided by the greater of (a) treasuries plus 350
basis points and (b) nine percent (9%).
(iii)
“ Change of Control
” shall mean, with respect to any
Grantor, (a) the acquisition by any Person, or two or more
Persons acting in concert, of beneficial ownership (within the
meaning of Rule 13d-3 of the SEC) of 9.8% or more in violation
of the Declaration of Trust of HRPT, or rights, options or warrants
to acquire 9.8% or more, of the outstanding shares of voting stock
or other voting interests of a Grantor or its direct or indirect
Parent in violation of the Declaration of Trust of HRPT, as the
case may be, or the power to direct the management and policies of
a Grantor or its direct or indirect
Parent,
directly or indirectly, (b) the merger or consolidation of a
Grantor or its direct or indirect Parent with or into any other
Person (other than the merger or consolidation of any Person into a
Grantor or direct or indirect Parent that does not result in a
Change of Control of a Grantor or direct or indirect Parent under
clauses (a), (c) or (d) of this definition), (c) any
one or more sales or conveyances to any Person of all or any
material portion of the assets (including capital stock or other
equity interests) or business of HRPT, or (d) the cessation,
for any reason, of the individuals who at the beginning of any
twenty-four (24) consecutive month period (commencing on the date
of this Agreement) constituted the board of directors of a Grantor
or its direct or indirect Parent (together with any new directors
whose election by such board or whose nomination for election by
the shareholders of a Grantor or its direct or indirect Parent, as
the case may be, was approved by a vote of a majority of the
directors then still in office who were either directors at the
beginning of any such period or whose election or nomination for
election was previously so approved) to constitute a majority of
the board of directors of a Grantor or its direct or indirect
Parent then in office.
(iv)
“ Change of Control Purchase
Price ” shall mean, with
respect to any ROFR Property which is less than fifty percent (50%)
leased, the Fair Market Value of such ROFR Property and, with
respect to any ROFR Property which is fifty percent (50%) or more
leased, the lesser of (x) the Fair Market Value of such ROFR
Property and (y) the Capitalization Value of such ROFR
Property.
(v)
“ Entity ”
shall mean any corporation, general or
limited partnership, limited liability company or partnership,
stock company or association, joint venture, association, company,
trust, bank, trust company, land trust, business trust, real estate
investment trust, cooperative, any government or agency, authority
or political subdivision thereof or any other entity.
(vi)
“ Fair Market Value
” shall mean, wit
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