PURCHASE AGREEMENT
THIS PURCHASE
AGREEMENT (this “
Agreement ”) is made and entered into as of the 2
day of May, 2008, by and between (i) DTC PARTNERS, LLC , a
Virginia limited liability company (“ Seller
” ), and (ii) NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION , a District of Columbia cooperative
association (“ Purchaser
”). This Agreement shall be effective on the date
on which the last party (Seller or Purchaser) signs this Agreement
(the “ Effective Date ” ).
RECITALS :
A. Seller
is the owner of approximately 189.51 acres of unimproved land
located near the intersection of Route 7 and Route 28 in Loudoun
County, Virginia comprising a portion of the "Dulles Town Center
Project" and known as Tax Map 80-102A (GPIN No. 029-37-6224) (the
“ Overall Property ”).
B. Seller
desires to sell, and Purchaser desires to purchase either the
Option 1 Parcel (defined below) or the Option 2 Parcel (as defined
below), together with (i) all appurtenances, easements, licenses,
rights-of-way and privileges belonging or appurtenant thereto; and
(ii) all mineral, gas, oil and water rights therein. The
Option 1 Parcel or the Option 2 Parcel, as the case may be, and the
other rights referred to in clauses (i) and (ii) of the preceding
sentence are referred to collectively as the “
Property .”
NOW, THEREFORE,
in consideration of the mutual
promises hereinafter set forth, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree that the above recitals are
hereby incorporated as if set forth at length and further agree as
follows:
1.
Purchase and Sale. Subject
to the terms and conditions of this Agreement, Seller agrees to
sell and convey and Purchaser agrees to purchase the Property on
the Closing Date (defined in Section 11(a)
). If (i) the Board of Supervisors of Loudoun County,
Virginia (the “ Board of Supervisors ”)
approves the Pending Rezoning (defined below) before the Closing
Date, and (ii) the Pending Rezoning, as approved, permits the
elimination prior to Closing of the additional extension of Century
Boulevard described in Section 3A(d) , then the Land
to be purchased and sold as a part of the Property shall consist of
the Option 1 Parcel. Otherwise the Land to be purchased
and sold as part of the Property shall consist of the Option 2
Parcel.
1A .
Defined Terms . For purposes of this
Agreement, the following terms have the respective meanings set
forth below:
Affiliate
: When used with
reference to any Person, any Person that, directly or indirectly
through one or more intermediaries controls, is controlled by, or
is under common control with, the specified Person (the term
"control" for this purpose, shall mean the ability, whether by the
ownership of shares or other equity interests, by contract or
otherwise, to elect a majority of the directors of a corporation,
independently to select the managing partner of a partnership or
the Managing Member of a limited liability company, or otherwise to
have the power independently to remove and then select a
majority of those Persons exercising
governing authority over an entity, and control shall be
conclusively presumed in the case of the direct or indirect
ownership of 50% or more of the equity interests). In
the case of Purchaser, Affiliate shall also mean any member of
Purchaser and any entity, the accounts of which will be or are
consolidated with those of Purchaser in its consolidated financial
statements.
Ancillary
Parcel : The area of the Land identified as
such on Exhibit A (Sheet 2 of 3 and Sheet 3 of
3).
Anticipated Outside Closing
Date : The
four hundred fiftieth (450 th )
calendar day after the Due Diligence Termination Date (or, if the
450 th
calendar day is not a Business Day,
on the first Business Day thereafter), subject to extension on a
day by day basis for any failure by Seller to provide the approvals
contemplated by Section 8 within the time periods in
which Seller is required to provide such approvals.
Approved Concept Development
Plans : As
defined in Section 3A(e) .
Approved Concept Plan and
Proffers : The Concept Plan and those certain
Proffers associated with ZMAP 1990-0014 approved by the Loudoun
County Board of Supervisors on December 17, 1991. Copies
of the approved Concept Plan and approved Proffers are attached as
Exhibit E and Exhibit F , respectively,
to this Agreement.
Business
Day : Any day other than a Saturday, a
Sunday or a day on which banking institutions in New York, New
York, or Washington, D.C., are not open for the normal conduct of
banking business.
Century Boulevard
CPAP : The
construction plans and profiles for the Century Boulevard
Extension.
Century Boulevard Easement
Agreement : As defined in Section
7B(b) .
Century Boulevard
Extension : As defined in Section
3A(c) .
Closing
: As defined in
Section 11(a) .
Closing
Statement : As defined in Section
11(d) .
COE
: The United States Army
Corps of Engineers.
Deed
: The Special Warranty
Deed substantially in the form attached as Exhibit B
to this Agreement.
Deposit
: As defined in
Section 2(b) .
Due Diligence
Period : The period of time beginning on the
Effective Date and ending at midnight on the Due Diligence
Termination Date.
Due Diligence Termination
Date : As
defined in Section 2(b) .
Escrow Agent
: Loudoun Commercial
Title, LLC, 108 South Street SE, Suite G, Leesburg, VA
20175-3732.
Future Building
: The building on the
Option 1 Parcel or the Option 2 Parcel that is identified as
“Future Building” on Exhibit A to this
Agreement and the Approved Concept Development Plans, including the
Pre-Emptive Option Parcel.
Governmental
Authority : The United States of America, the
Commonwealth of Virginia, Loudoun County, and any agency,
department, commission, board, bureau, instrumentality or political
subdivision of any of the foregoing, now existing or hereafter
created, having jurisdiction over the use, development or
improvement of the Land or any part thereof.
Headquarters Building
Parcel : The area of the Land identified as
such on Exhibit A (Sheet 1 of 3).
Land
: The Option 1 Parcel or
the Option 2 Parcel, as applicable, to be included as a part of the
Property.
Legal
Requirements : All laws, statutes, ordinances,
orders, rules, regulations, codes, executive orders and
requirements, of all Governmental Authorities, whether now or
hereafter in force, ordinary and extraordinary, foreseen as well as
unforeseen, to the extent they are applicable to the Land, the use
thereof or the improvements constructed, or to be constructed,
thereon, [and all other covenants, conditions and restrictions of
record affecting the use and occupancy of the Land or any
improvements thereon.]
Non-Pond Concept Development
Plans : As
defined in Section 3A(e) .
Option 1 Parcel
: The parcel of
unimproved real property containing 41.97 acres, more or less, that
is a part of the Overall Property and is described on Sheet 2 of 3
of Exhibit A to this Agreement.
Option 2 Parcel
: The parcel of
unimproved real property containing 42.06 acres, more or less,
which is a part of the Overall Property and is described on Sheet 3
of 3 of Exhibit A to this Agreement.
Overall
Property : As defined in Recital A
.
Pending
Rezoning : As defined in Section
3A(b) , including any Seller-initiated change that does not
impose any additional proffer obligations or other conditions or
development restrictions on the Land, other than those limiting the
Land to development of PD-OP uses under the 1993 Zoning Ordinance
of Loudoun County, Virginia, that include buildings and other
improvements with a maximum gross floor area of 450,000 square
feet.
Person
: An individual,
corporation, trust, association, unincorporated association,
estate, partnership, joint venture, limited liability company or
other legal entity, including a governmental entity.
Phase 1
Building : The building identified as the
"Phase 1 Building" on Sheet 1 of 3 of Exhibit A
.
Pond Concept Development
Plans : As
defined in Section 3A(e) .
Pond Easement
Agreement : As defined in Section
9(i) .
Pre-Emptive Option
Agreement : The Pre-Emptive Option Agreement
substantially in the form attached as Exhibit H to
this Agreement.
Pre-Emptive Option
Parcel . The area of the Land identified as
such on Exhibit A (Sheet 2 of 3 as to the Option 1
Parcel and Sheet 3 of 3 as to the Option 2 Parcel).
Proffer Allocation and
Infrastructure Agreement : An agreement to be signed by Seller
and Purchaser at the Closing, in recordable form, containing the
provisions contemplated by Section 9(j) and any other
provision of this Agreement that, by its terms, is to be included
in the Proffer Allocation and Infrastructure
Agreement. The Proffer Allocation and Infrastructure
Agreement shall be recorded among the applicable Land Records as a
part of the Closing and shall be a covenant running with the
Property and the Overall Property.
Property
: As defined in
Recital B .
Property Owners Association
Covenants : The Property Owner Association
Covenants in the form attached as Exhibit C to this
Agreement, in their present form or as modified or amended by an
agreement between Seller and Purchaser signed and delivered before
the Due Diligence Termination Date.
Purchaser’s Intended
Use : The
development and construction on the Land of office buildings and
related improvements containing 450,000 square feet of gross floor
area as generally set forth on the Approved Concept Development
Plans.
Purchaser’s Surviving
Obligations : As defined in Section
3(c) .
Repurchase Option
Agreement : The Repurchase Option Agreement in
the form attached as Exhibit D to this
Agreement.
Seller’s Closing
Certificate : As defined in Section
11(b)(2) .
Seller’s Retained
Property : The Overall Property less and
except the Property to be sold to Purchaser pursuant to this
Agreement.
SWM/BMP
Facility : As defined in Section
3A(f) .
Wetlands Disturbance
Request : As defined in Section
8(a) .
2.
Purchase Price; Deposit .
(a)
Payment of Purchase Price . The purchase price of
the Property (the “ Purchase Price ”)
shall be (i) FOURTEEN MILLION FOUR HUNDRED THOUSAND AND NO/100
DOLLARS ($14,400,000.00), if the Closing occurs on or before the
Anticipated Outside Closing Date, or (ii) FIFTEEN MILLION ONE
HUNDRED TWENTY THOUSAND AND NO/100 DOLLARS ($15,120,000.00), if the
Closing occurs after the Anticipated Outside Closing
Date. On the Closing Date, and subject to the terms and
conditions of this Agreement, Purchaser shall pay the Purchase
Price, less the Deposit and subject to the adjustments and
prorations pursuant to Section 11(d) , in the manner
provided in Section 11(a) .
(b)
Deposit . Within two (2) Business Days (hereafter
defined) after the Effective Date, Purchaser shall pay the sum of
One Thousand Dollars ($1,000) (the “ Initial
Deposit ” ) by wire transfer of immediately available
funds to the Escrow Agent. Unless this Agreement has
previously been terminated pursuant to Section 3(d) ,
on or before the sixtieth (60 th )
day after the Effective Date (or, if the sixtieth (60
th ) day after the Effective Date is not a Business
Day, on or before the first Business Day thereafter) (the “
Due Diligence Termination Date ”), the
Purchaser shall pay to the Escrow Agent, by wire transfer of
immediately available funds, an additional deposit in the amount of
Nine Hundred Thousand Nine Hundred and Ninety-nine Dollars
($999,000) to be held by the Escrow Agent as an additional good
faith deposit under this Agreement (the “ Additional
Deposit ”). If Purchaser does not pay the
Additional Deposit to the Escrow Agent on or before the Due
Diligence Termination Date, with time being of the essence, this
Agreement shall automatically terminate on the Due Diligence
Termination Date, the Escrow Agent shall promptly pay the Initial
Deposit to Purchaser and neither party shall have any further
liability or obligation to the other party under this Agreement,
except for the Purchaser’s Surviving
Obligations. As used in this Agreement, the term “
Deposit ” means the Initial Deposit and the
Additional Deposit. The Escrow Agent shall invest the
Deposit in one or more federally-insured interest-bearing accounts
as Purchaser may direct and all interest earned thereon shall be
deemed to be part of the Deposit, except as otherwise expressly
provided in this Agreement. The Escrow Agent shall pay
the Deposit to Seller on the Closing Date in accordance with
Section 11(a) or shall pay the Deposit to Seller or
Purchaser in accordance with the other provisions of this
Agreement. After the Due Diligence Termination Date, the
entire Deposit shall be non-refundable to Purchaser except as
otherwise expressly provided in this Agreement.
(c)
Holding of Deposit . The Escrow Agent shall hold
the Deposit, in trust, and shall disburse the Deposit in accordance
with the provisions of this Agreement and the following additional
provisions:
(1) If
this Agreement is terminated pursuant to Section 2(b)
because the Purchaser does not pay the Additional Deposit to the
Escrow Agent on or before the Due Diligence Termination Date, or if
this Agreement is terminated by the Seller or the Purchaser
pursuant to Section 3(d) , Section 3(k) ,
Section 4(b) or Section 4(c) , the Escrow
Agent shall return the Deposit to Purchaser promptly after receipt
of a written demand from Purchaser. For this purposes,
the Escrow Agent shall be fully protected in relying on a written
demand from Purchaser stating that it is entitled to the return of
the Deposit pursuant to Section 2(b) ,
Section 3(d)
, Section 3(k) ,
Section 4(b) or
Section 4(c) , and the Escrow Agent shall
disregard any contrary instructions or demands received by it from
Seller.
(2) Except
as otherwise provided in Section 2(c)(1) , if this
Agreement is terminated in accordance with its terms after the Due
Diligence Termination Date and thereafter either Seller or
Purchaser makes a written demand on the Escrow Agent for payment of
the Deposit, the Escrow Agent shall give written notice of such
demand to the other party. If the Escrow Agent does not
receive a written objection from the other party to the proposed
payment of the Deposit within 10 days after the giving of such
notice, the Escrow Agent shall pay the Deposit to the party making
the demand. If the Escrow Agent receives a written
objection from the other party within the 10-day period, the Escrow
Agent shall continue to hold the Deposit until otherwise directed
by written instructions from Seller and Purchaser or until
otherwise directed by a court of competent jurisdiction.
(3) In
the event of a dispute concerning the disposition of the Deposit,
the Escrow Agent shall have the right at any time to deposit any
cash funds held by it under this Agreement with the clerk of the
court of general jurisdiction of the city or county in which the
Property is located. The Escrow Agent shall give written
notice of such deposit to Seller and Purchaser. Upon
such deposit the Escrow Agent shall be relieved and discharged of
all further obligations and responsibilities hereunder.
(4) The
duties of the Escrow Agent are only as herein specifically provided
and are purely ministerial in nature. The Escrow Agent
shall incur no liability whatsoever except for willful misconduct
or gross negligence, as long as the Escrow Agent has acted in good
faith. Seller and Purchaser each releases the Escrow
Agent from any act done or omitted to be done by the Escrow Agent
in good faith in the performance of its duties
hereunder.
(5) Seller
and Purchaser shall jointly and severally indemnify and hold
harmless the Escrow Agent from and against any loss, damage,
liability or expense incurred by the Escrow Agent not caused by its
willful misconduct or gross negligence, arising out of or in
connection with its entering into this Agreement and the carrying
out of its duties hereunder, including the reasonable costs and
expenses of defending itself against any claim of liability or
participating in any legal proceeding. The Escrow Agent
may consult with counsel of its choice, and shall have full and
complete authorization and protection for any action taken or
suffered by it hereunder in good faith and in accordance with the
opinion of such counsel.
(6) The
Escrow Agent is acting as a stakeholder only with respect to the
monies to be deposited in the escrow. Upon making
delivery of such monies in the manner herein provided, the Escrow
Agent shall have no further liability hereunder.
(7) The
Escrow Agent may resign at will and be discharged from its duties
or obligations hereunder by giving notice in writing of such
resignation specifying a date when such resignation shall take
effect; provided , however , that (i) prior to such
resignation a substitute escrow agent is approved in writing by
Seller and Purchaser, which approval shall not be unreasonably
withheld or delayed, or (ii) the Escrow Agent shall deposit the
Deposit with a court of competent jurisdiction in the city or
county in which the Property is located. After such
resignation, the Escrow Agent shall have no further duties or
liability hereunder.
(8) The
Escrow Agent shall sign a counterpart of this Agreement solely for
the purpose of confirming that the Escrow Agent is holding and will
hold the Deposit in escrow and will disburse the Deposit pursuant
to the provisions of this Agreement.
(d)
Failure to Pay Initial Deposit . If Purchaser
fails to pay the Initial Deposit to the Escrow Agent within the
time required by Section 2(b) , this Agreement shall
automatically terminate and neither party shall have any further
liability or obligation to the other party under this
Agreement.
3. Inspection.
(a)
Purchaser’s Right to Inspect . Purchaser
and its authorized agents shall have the right, at
Purchaser’s risk, cost and expense, to enter the Land at any
time or times before the Closing Date, during normal business hours
and after reasonable advance notice, for purposes of making such
investigations and studies, including appraisals, architectural and
engineering studies, surveys, soil tests, environmental studies,
financial, market analysis, development and economic feasibility
studies, as Purchaser deems necessary or desirable to evaluate the
Property. Purchaser shall provide Seller at least one
Business Day’s notice in writing or by telephone in advance
of its entry upon the Property for purposes other than visual
inspections. No advance notice shall be required for
visual inspections of the Property. Purchaser shall not
make or perform any borings or other physically invasive or
destructive tests without Seller’s prior written consent,
which shall not be unreasonably withheld, delayed or
conditioned. Telephone notices, when permitted, shall be
given to Seller’s representative, Arthur N. Fuccillo, at
(301) 692-2222.
(b)
Purchaser’s Insurance . Purchaser shall not
enter the Land for any purpose other than visual inspections until
Purchaser has delivered to Seller a certificate of insurance
evidencing that Purchaser has obtained a policy of Commercial
General Liability Insurance protecting Purchaser, as named insured,
and Seller, as an additional insured, against liability for bodily
injury, death and property damage occurring in or about the Land,
with such policy to afford protection to the limit of not less than
$3,000,000 combined single limit annual aggregate for bodily
injury, death and property damage. Such certificate
shall also provide that the policy will not be canceled or
terminated, or the limits of liability thereunder reduced, unless
Seller receives at least 20 days advance notice thereof.
(c)
Purchaser’s Indemnity . Purchaser shall not
make any physical changes to the Property (other than soil borings
and associated tree clearing as reasonably approved by Seller) and
shall indemnify and hold harmless Seller from and against
(i) all physical damage to the Property caused by
Purchaser’s tests and investigations, (ii) all loss,
liability or damage suffered or incurred by Seller arising out of
or resulting from injury or death to individuals or damage to
personal property caused by the tests and investigations conducted
by, or at the direction of, Purchaser, and (iii) all reasonable
costs and expenses (including reasonable attorneys’ fees and
disbursements) incurred by Seller in connection with any action,
suit, proceeding, demand, assessment or judgment incident to the
foregoing, unless (in each case) such loss, liability or damage
arises out of Seller’s negligence or willful
misconduct. Purchaser’s obligations to indemnify
Seller pursuant to this Section 3(c) and
Purchaser’s obligations to return the Information to Seller
pursuant to Section 3(d) shall survive the
termination of this Agreement and are referred to in this Agreement
as “ Purchaser’s Surviving Obligations
. ”
(d)
Termination by Purchaser . Purchaser may
terminate this Agreement at any time on or before the Due Diligence
Termination Date by giving Seller and the Escrow Agent written
notification (the “ Termination Notice ”
) that Purchaser elects not to consummate the purchase of the
Property in accordance with the terms of this
Agreement. Purchaser shall have the absolute right, in
its sole and absolute discretion, to determine whether to give the
Termination Notice. If the Termination Notice is timely
given on or before the last day of the Due Diligence Period, the
Escrow Agent shall promptly return the Initial Deposit to Purchaser
pursuant to Section 2(c)(1) , and, except for
Purchaser’s Surviving Obligations, no party shall have any
further liability to any other party under this
Agreement. If this Agreement is terminated pursuant to
Section 2(b) , this Section 3(d) ,
Section 3(k) , Section 4(b) or Section
4(c) , Purchaser agrees, within 15 days after the date of
termination, to deliver to Seller copies of all title reports,
title commitments, surveys, written engineering reports and written
environmental reports prepared by third parties for Purchaser
during the period of time in which this Agreement is in effect, and
to return to the Seller all written Information (defined in
Section 3(f) ) previously delivered by Seller to
Purchaser pursuant to this Agreement. All third party
reports and studies shall be delivered to Seller for information
only without any right to rely thereon.
(e)
Additional Information . Within three (3)
Business Days after the Effective Date, Purchaser shall deliver to
Seller a written notice identifying all information Purchaser
desires to receive with respect to the Property, including the
physical, regulatory and title characteristics of the
Property. Within five (5) Business Days after receipt of
Purchaser’s notice, Seller shall either deliver copies of the
information requested by Purchaser, if such information is within
Seller’s possession or control, without representation or
warranty as to the accuracy or completeness of such information, or
if Seller does not have possession or control of some or all of the
information requested by Purchaser, Seller shall inform Purchaser
in writing of that fact within the period of five (5) Business
Days.
(f)
Confidentiality . Prior to the Closing, Purchaser
shall hold all information concerning the Property obtained by
Purchaser from Seller (the “ Information
” ) in
confidence and shall not at any time disclose or permit the
disclosure of the Information to any Person without Seller’s
prior written consent. Purchaser further agrees to use
the Information only for purposes of evaluating the Property in
connection with its purchase of the Property in accordance with the
terms of this Agreement. Notwithstanding the foregoing,
(i) Purchaser may disclose the Information to its legal counsel,
accountants, lenders, existing and prospective investors and other
Persons who need to review the Information in connection with
Purchaser’s purchase of the Property in accordance with the
terms of this Agreement, (ii) the provisions of this Section
3(e) shall not apply to any portions of the
Information that are available from public sources other than
through the actions of Purchaser or its agents, and (iii) Purchaser
may disclose the Information to the extent that such disclosure is
required by law, regulation or court order, but Purchaser first
shall provide written notice thereof to Seller. Before
the Closing Date, neither Seller nor Purchaser shall make any
public announcements concerning the sale of the Property pursuant
to this Agreement without first obtaining the prior written consent
of the other except Purchaser may make general announcements to its
employees and Purchaser may make any disclosures required by
applicable law, court order or Governmental Authority, including,
but not limited to any disclosures required to be made by the
Securities and Exchange Commission as part of any required periodic
filing.
(g)
Purchaser’s Covenant Not to Sue . Except
for claims arising out of Seller’s actual fraud or a breach
of any of the Seller’s covenants, representations or
warranties expressly set forth in this Agreement or any document
executed by or on behalf of Seller at the
Closing, Purchaser, for itself and its agents,
affiliates, successors and assigns, hereby agrees not to assert
against Seller, its agents, affiliates, successors and assigns, any
rights, claims or demands at law or in equity, arising out of the
physical, environmental, economic or legal condition of the
Property, including any claim for indemnification or contribution
arising under (i) any Environmental Law (defined in Section
5(f) ), (ii) any similar federal, state or local statute,
rule or ordinance relating to the liability of property owners for
environmental matters, or (iii) the common law.
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3A.
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Zoning, Development and Related
Matters .
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(a)
Existing Zoning . On the Effective Date, the
Property is zoned PD-OP under the 1972 zoning ordinance Loudoun
County, Virginia. A copy of the approved Concept Plan
and a copy of the approved Proffers are attached Exhibit
E and Exhibit F , respectively, to this
Agreement. Pursuant to the approved Concept Plan the
Property may be developed up to a FAR of 0.4. Seller and
Purchaser agree that the amount of gross floor area to be allocated
to the Property shall consist of 450,000 square feet.
(b) Purchaser
acknowledges that, as of the Effective Date, Seller is pursuing a
rezoning of the Overall Property, as well as other portions of the
property owned by Seller which is known as “Dulles Town
Center,” and that Seller’s pending rezoning application
includes the Land (the " Pending Rezoning
"). Purchaser agrees to cooperate with Seller in
obtaining the Board of Supervisor’s approval of the Pending
Rezoning, provided the Pending Rezoning does not impose any
additional proffer obligations or other conditions or development
restrictions on the Land, other than those limiting the Land to
development of PD-OP uses under the 1993 Zoning Ordinance of
Loudoun
County, Virginia, that include buildings and
other improvements with a maximum gross floor area of 450,000
square feet. Seller agrees that the Pending Rezoning
shall not restrict the ability of Purchaser to develop the Property
for Purchaser's Intended Use. Subject to the
restriction contained in Section 7A(c) , this Agreement
shall not preclude Purchaser from pursuing a subsequent amendment
to the rezoning applicable to the Property, including, but not
limited to increasing the gross floor area or FAR applicable to
such Property, provided such subsequent rezoning does not decrease
the density of development otherwise permitted on the Overall
Property (exclusive of the Property).
(c)
Century Boulevard . Purchaser acknowledges that,
as of the Effective Date, Seller has constructed a portion of a
road known as Century Boulevard, as required by the Approved
Concept Plan and Proffers, that terminates at the location shown on
Exhibit A . Exhibit A also
shows the proposed extension of Century Boulevard across a portion
of the Overall Property and the Land (the “ Century
Boulevard Extension ”). Purchaser agrees,
after the Closing Date, to construct, at its expense, the Century
Boulevard Extension as shown on Sheet 3 of 3 of Exhibit
A as the "Century Boulevard Extension", as provided in
Section 7A(b) . Additionally, if, on the
Closing Date, Purchaser purchases the Option 2 Parcel, Purchaser
shall thereafter diligently and continuously pursue, at its sole
cost and expense, the construction of that portion of the private
access road within the area depicted as Private Road Joint
Maintenance Area on Sheet 3 of 3 of Exhibit A
that is necessary to permit the access to
Seller’s Retained Property as shown on Sheet 3 of 3 of
Exhibit A . Furthermore, at any time after
the Closing Date, Purchaser shall, upon receipt of a written
request from Seller, without consideration, dedicate to public use
the portion of the Option 2 Parcel that is necessary to construct
Future Century Boulevard as shown on Sheet 3 of 3 of Exhibit
A , provided Seller has bonded the
construction of Future Century Boulevard with Loudoun County and
has agreed to construct Future Century Boulevard within twelve (12)
months after the land dedication is completed. Seller
agrees that, at all times during the construction of Future Century
Boulevard, Purchaser shall have reasonable access to the Land and
Seller shall use commercially reasonable efforts to minimize any
disruption to Purchaser, and its operations on its property, during
any such construction. The provisions of this
Section 3A(c) shall be set forth in the Proffer
Allocation and Infrastructure Agreement.
(d)
Elimination of Part of Century Boulevard
. Purchaser also agrees that, as part of the Pending
Rezoning, Seller shall have the right to seek and shall seek, to
eliminate the requirement of the Approved Concept Plan and Proffers
that Century Boulevard be extended by the construction of an
additional road from the terminus of the Century Boulevard
Extension across the Overall Property and Option 1 Parcel and
extending to a bridge over Atlantic Boulevard. The
portion of the Century Boulevard Extension that Seller has the
right to and shall seek to eliminate is described on Sheet 1 of 3
of Exhibit A as "Century Boulevard To Be
Eliminated."
(e)
Concept Development Plan . Before the Effective
Date, Purchaser prepared and submitted to Seller, for its approval,
two (2) concept development plans showing its general concept for
the development of improvements on the Option 1 Parcel (if the
Option 1 Parcel is purchased) and two (2) concept development plans
showing its general concept for the development of improvements on
the Option 2 Parcel (if the
Option 2 Parcel is purchased), including, in
each case, the approximate location and height of the buildings to
be constructed on the Land, the general type of materials
(including color) to be used for the exterior façade of the
first building to be constructed and the approximate location of
entrances to and exits from the Land in relation to the existing
dedicated streets that abut or are adjacent to the Land (the
“ Concept Development Plans
”). Seller has approved such Concept Development
Plans. The Concept Development Plans prepared by
Purchaser and approved by Seller are referred to in this Agreement
as the “ Approved Concept Development Plans
.” The Approved Concept Development Plans are
attached as Exhibit G to this Agreement and
consist of four (4) different site layouts, two (2) covering the
Option 1 Parcel and two (2) covering the Option 2
Parcel. Two (2) of the Approved Concept Development
Plans, provide for a SWM/BMP Facility (the " Pond Concept
Development Plans " ) and the other two (2) concept
development plans do not provide for a SWM/BMP Facility (the "
Non-Pond Concept Development Plans " ). [
Note: The term SWM/BMP Facility is defined in
Section 1A.]
(f)
SWM/BMP Facility . Purchaser shall have the
right, in its sole discretion, to elect to develop and construct
improvements on the Land utilizing either the Pond Concept
Development Plans or the Non-Pond Concept Development
Plans. Purchaser shall deliver notice of its election to
Seller on or before the Due Diligence Termination
Date. If Purchaser fails to deliver notice of its
election to Seller on or before the Due Diligence Termination Date,
Purchaser shall be conclusively deemed to have elected to develop
and construct improvements on the Land utilizing the Non-Pond
Concept Development Plans as part of its initial construction of
the Phase 1 Building. If Purchaser elects (or is deemed
to elect) to develop and construct improvements on the Land
utilizing the Non-Pond Concept Development Plans, then Seller shall
have the right, at Closing, to reserve, for a period of fifty (50)
years from the Closing Date (the “ Pond Construction
Option Period ”), an easement over and across the
Land (either the Option 1 Parcel or the Option 2 Parcel, as the
case may be), in the location generally as shown on Exhibit
G for the purposes of Seller’s future construction of
a storm water management/BMP facility (" SWM/BMP
Facility ") within such easement area, together with the
right to receive reimbursement of a part of its design and
construction costs pursuant to Section 9(j) during
the first fifteen (15) years of the Pond Construction Option Period
(the “Pond Construction Reimbursement
Period”). Purchaser shall also have the right,
within the Pond Construction Option Period, to construct the
SWM/BMP Facility, together with the right to receive reimbursement
for a part of its design and construction costs pursuant to
Section 9(j) during the Pond Construction
Reimbursement Period. The party, i.e., Seller or
Purchaser, who desires to construct the SWM/BMP Facility shall
notify the other party of its intention to do so at least ninety
(90) days before it commences such
construction. Seller’s right to reserve the
easement referred to in this subsection and the parties
reimbursement obligations shall be included in the Proffer
Allocation and Infrastructure Agreement.
(g)
Option 1 Parcel Tree Preservation Area . The
Approved Concept Development Plans for the Option 1 Parcel depict a
“Potential Tree Preservation Area” on the Option 1
Parcel and Seller’s Retained Property. Seller
agrees that, if Purchaser acquires the Option 1 Parcel, Seller will
not remove the mature stand of trees within the
“Potential Tree Preservation
Area” shown on Sheet 1 of 3 of Exhibit A and such area shall
be preserved to protect the view shed from the
Property. The terms of this agreement shall be included
in the Proffer Allocation and Infrastructure Agreement.
(h)
Architectural Review Board Approvals . Seller and
Purchaser acknowledge that the Approved Concept Development Plans
do not include any elevations or materials for the building
designated on Exhibit A and on the Approved Concept
Development Plans as "Future Buildings".
4. Title
and Survey.
(a)
Title Commitment and Survey . Promptly after the
Effective Date, Purchaser, at its expense, shall cause to be
prepared a current, effective commitment for an ALTA policy of
owner’s title insurance (1992 form or equivalent) for the
Property (the “ Title Commitment ”) to be
issued by Commonwealth Land Title Insurance Company, Lawyers Title
Insurance Company, First American Title Insurance Company Chicago
Title Insurance Company or another nationally recognized title
insurance company (the “ Title Company ”
), which names Purchaser as the proposed
insured. Purchaser shall have the option to cause to be
prepared, at its expense, a current ALTA/ACSM
survey of the Property (the
“ Survey ”). Not later than 10
days before the Due Diligence Termination Date (the “
Title Delivery Date ”), Purchaser shall deliver
to Seller a copy of the Title Commitment, accompanied by true,
complete, and legible copies of all documents referred to in
Schedule B to the Title Commitment. Not later than 10
days before the Due Diligence Termination Date (the “
Survey Delivery Date ”), Purchaser shall
deliver to Seller a copy of the Survey, if obtained.
(b)
Purchaser’s Title Objections . If
Purchaser, for any reason whatsoever, objects to the condition of
Seller’s title to the Property, it shall do so by notifying
Seller in writing on or before the Title Delivery Date concurrently
with its delivery to Seller of a copy of the Title
Commitment. If Purchaser does not object to the
condition of Seller’s title to the Property on or before the
Title Delivery Date, Purchaser shall be conclusively deemed to have
accepted the condition of title as set forth in the Title
Commitment and to have approved all exceptions to title described
in Schedule B to the Title Commitment other than the exceptions for
unfiled mechanics’ liens, mortgages and other liens which may
be removed by the payment of money. Within five Business
Days after receipt of Purchaser’s notice of title objections
and a copy of the Title Commitment, Seller shall either agree in
writing to cure such objections or shall notify Purchaser in
writing that Seller is unable or unwilling to do so. In
the event Seller fails to give either notice required by the
preceding sentence, Seller shall be deemed to have agreed to cure
such objections. If Seller timely notifies Purchaser
that it is unable or unwilling to cure the title objections,
Purchaser may terminate this Agreement within five Business Days
thereafter by giving notice of termination to Seller, in which case
this Agreement shall terminate on the date of Purchaser’s
notice, the Escrow Agent shall return the Deposit to Purchaser
pursuant to Section 2(c)(1) and neither party shall
have any further liability or obligation to the other party under
this Agreement except for the Purchaser’s
Surviving
Obligations. If Purchaser does not
terminate this Agreement pursuant to the preceding sentence,
Purchaser shall be conclusively deemed to have waived the title
objections, the title objections shall be deemed to be Permitted
Exceptions (defined in Section 4(e) ) and Purchaser
shall be obligated to purchase the Property in accordance with the
terms of this Agreement without a reduction in the Purchase
Price. If Seller timely notifies Purchaser that it will
cure the title objections or Seller is deemed to have agreed to
cure such title objections, such title objections shall not be
Permitted Exceptions and Seller shall be obligated to cure such
objections on or before the Closing Date. Any new
exceptions to title contained in any update of the Title Commitment
shall not be Permitted Exceptions unless approved in writing by
Purchaser.
(c)
Purchaser’s Survey Objections . If
Purchaser, for any reason whatsoever, objects to any matter
disclosed by the Survey, it shall do so by notifying Seller in
writing on or before the Survey Delivery Date concurrently with its
delivery to Seller of a copy of the Survey. If Purchaser
does not object to a matter disclosed by the Survey on or before
the Survey Delivery Date, Purchaser shall be conclusively deemed to
have accepted the Survey and to have approved all matters disclosed
by the Survey. Within five Business Days after receipt
of Purchaser’s notice of survey objections and a copy of the
Survey, Seller shall either agree in writing to cure such
objections or shall notify Purchaser in writing that Seller is
unable or unwilling to do so. In the event Seller fails
to give either notice required by the preceding sentence, Seller
shall be deemed to have agreed to cure such
objections. If Seller timely notifies Purchaser that it
is unable or unwilling to cure the survey objections, Purchaser may
terminate this Agreement within five Business Days thereafter by
giving notice of termination to Seller, in which case this
Agreement shall terminate on the date of Purchaser’s notice,
the Escrow Agent shall return the Deposit to Purchaser pursuant to
Section 2(c)(1) and neither party shall have any
further liability or obligation to the other party under this
Agreement except for the Purchaser’s Surviving
Obligations. If Purchaser does not terminate this
Agreement pursuant to the preceding sentence, Purchaser shall be
conclusively deemed to have waived the survey objections, such
survey objections shall be deemed to be Permitted Exceptions and
Purchaser shall be obligated to purchase the Property in accordance
with the terms of this Agreement without a reduction in the
Purchase Price. If Seller timely notifies Purchaser that
it will cure the survey objections or Seller is deemed to have
agreed to cure such survey objections, such survey objections shall
not be Permitted Exceptions and Seller shall be obligated to cure
such survey objections on or before the Closing Date.
(d)
Purchaser’s Failure to Obtain Title Commitment or
Survey . If Purchaser fails to deliver a copy of the
Title Commitment to Seller on or before the Title Delivery Date,
Purchaser shall be conclusively deemed to have approved all
exceptions to title to the Property (other than exceptions for
mortgages, mechanics’ liens and other liens which may be
removed by the payment of money) which would have been disclosed by
a title examination of the Property. If Purchaser elects
not to prepare the Survey or fails to deliver a copy of
the Survey to Seller on or before the Survey Delivery Date,
Purchaser shall be conclusively deemed to have approved all matters
that would be disclosed by a survey of the Property prepared in
accordance with the “Minimum Standard Detail Requirements for
ALTA/ACSM Land Title Surveys,” jointly adopted by ALTA,
ACSM
and the National Society of
Professional Engineers in 2005 with the accuracy of an Urban
Survey.
(e)
Permitted Exceptions . For purposes of this
Agreement, the term “ Permitted Exceptions
” shall mean (i) the lien of current real estate taxes not
yet due and payable, (ii) all other exceptions to title that are
approved, or deemed approved, by Purchaser pursuant to
Section 4(b) , (iii) all matters disclosed by a
survey of the Property which are approved, or deemed approved, by
Purchaser pursuant to Section 4(c) , (iv) if
Purchaser does not deliver the Title Commitment to Seller on or
before the Title Delivery Date, all exceptions to title to the
Property (other than exceptions for mortgages, mechanics’
liens and other liens which may be removed by the payment of money)
that would have been disclosed by a title examination of the
Property if the Title Commitment had been obtained, (v) if
Purchaser elects not to prepare the Survey or does not deliver the
Survey to Seller on or before the Survey Delivery Date, all matters
that would have been disclosed by the Survey if it had been
obtained, (vi) all matters, whether or not of record, that arise
out of the actions of Purchaser or its agents, employees or
contractors, and (vii) the Property Owners Association
Covenants.
(f)
Release of Liens . On the Closing Date, Seller
shall release all mortgages, deeds of trust and other liens
securing obligations for the payment of fixed and determinable
amounts of money that encumber the Property (it being agreed that
the Purchase Price shall be applied at settlement for such
purpose). Purchaser acknowledges that the Overall
Property is subject to the lien of the assessment associated with
the Dulles Town Center Community Development Authority ("
CDA "). Within thirty (30) days after the
Effective Date, Seller shall deliver to Purchaser a written
statement from the administrator for the CDA setting forth the
portion of the lien applicable to the Overall Property that would
be allocable to each of the Option 1 Parcel and the Option 2
Parcel, together with the annual installment payable with respect
to such liens and the amount required to prepay and obtain a
release of the assessment lien applicable to each of the Option 1
Parcel and the Option 2 Parcel. Seller and Purchaser
acknowledge that the assessment lien applicable to the Overall
Property is based on the potential for the CDA to issue bonds up to
the aggregate principal amount of FIFTY MILLION AND NO/100 DOLLARS
($50,000,000.00), while the annual installment is based on the
aggregate principal amount of bonds issued and outstanding on the
Effective Date, which is THIRTY-SIX MILLION FIVE HUNDRED SIXTY
THOUSAND AND NO/100 DOLLARS ($36,560,000.00) (the “
Existing Bonds ”). It is anticipated
that during the Due Diligence Period, the Seller and Purchaser will
agree on how the assessment lien will be applied to the Option 1
Parcel and the Option 2 Parcel. However, to the extent
the assessment lien is not prepaid by Purchaser at the Closing,
Seller agrees that Purchaser's maximum liability for the assessment
lien and/or annual installments shall always be based on aggregate
principal amount of the Existing Bonds and the payment schedule
associated with the Existing Bonds. If there is an
increase in the principal amount of or a refinancing or refunding
of the Existing Bonds, Purchaser’s obligations shall be based
on the aggregate principal amount of the Existing Bonds and Seller
shall be responsible for any increase in either the assessment lien
and/or the annual installment associated with any increase in the
aggregate principal amount of, or any refunding or/refinancing of,
the Existing Bonds. If there is a refunding or refinance
of the Existing Bonds (without any
increase in the term of the Existing Bonds) that
reduces the annual installment, Purchaser shall be entitled to the
benefit of such lesser annual installment unless Purchaser has
previously prepaid the assessment lien applicable to the Land
included in the Property. The foregoing provisions shall
be included in the Proffer Allocation and Infrastructure
Agreement.
5.
Representations and Warranties of Seller. Seller
makes the following representations and warranties to Purchaser for
the purpose of inducing Purchaser to execute and deliver this
Agreement and to consummate the transactions contemplated by this
Agreement:
(a)
Organization and Authorization . Seller is a
limited liability company duly formed and validly existing under
the laws of the Commonwealth of Virginia. Seller has the
legal power and authority to own, sell, convey and transfer the
Property. The individual who signs this Agreement on
behalf of Seller has been duly authorized to do so by
Seller.
(b)
No Conflicting Agreements . The execution and
delivery by Seller of, and the performance of and compliance by
Seller with, the terms and provisions of this Agreement, do not (i)
conflict with, or result in a breach of, the terms, conditions or
provisions of, or constitute a default under, Seller’s
Organizational Documents (defined below), or any other agreement or
instrument to which Seller is a party or by which all or any part
of the Property is bound, (ii) violate any restriction,
requirement, covenant or condition to which all or any part of the
Property is bound, (iii) to the knowledge of Seller, constitute a
violation of any applicable code, resolution, law, statute,
regulation, ordinance or rule applicable to Seller or the Property,
(iv) constitute a violation of any judgment, decree or order
applicable to Seller or specifically applicable to the Property, or
(v) require the consent, waiver or approval of any third
party. As used in this Agreement, the term “
Seller’s Organizational Documents ” means
the Articles of Organization and Operating Agreement pursuant to
which Seller is organized.
(c)
Litigation . There are no investigations,
proceedings, actions, suits or claims pending against or, to
Seller’s actual knowledge, threatened, against Seller or the
Property or any part thereof. Seller is not operating
under or subject to, and Seller is not in default with respect to,
any order, writ, injunction or decree that relates to the Property
or any part thereof.
(d)
Condemnation Proceedings . No condemnation or
eminent domain proceedings affecting the Property, or any part
thereof, are pending or, to Seller’s actual knowledge,
threatened.
(e)
Compliance with Laws . Seller has not received
any written notice of any violations of law, statutes, rules,
governmental ordinances, orders or requirements noted or issued by
any governmental authority having jurisdiction over or affecting
the Property which have not been resolved to the satisfaction of
the issuer of the notice, nor does Seller have actual knowledge of
any such violations, other than an unresolved issue involving the
location of a park and ride facility that has been appealed by
Seller to the Loudoun County Board of Supervisors.
(f)
Environmental Conditions . To Seller’s
actual knowledge the Property does not contain, and there is not
located on, in or under any part of the Property, any of the
following: “toxic substances,” “toxic
materials,” “hazardous waste,” “hazardous
substances,” “pollutants,” or
“contaminants” (as those terms are defined in the
Resource, Conservation and Recovery Act of 1976, as amended (42
U.S.C. §6901 et . seq .), the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as
amended (42 U.S.C. §9601 et . seq .), the
Hazardous Materials Transportation Act, as amended (49 U.S.C.
§5101 et . seq .), the Toxic Substances Control
Act of 1976, as amended (15 U.S.C. §2601 et .
seq .), the Clean Air Act, as amended (42 U.S.C. §1251
et . seq .) and any other federal, state or local
law, statute, ordinance, rule, regulation, code, order, approval,
policy and authorization relating to health, safety or the
environment (said laws being hereafter referred to collectively as
“ Environmental Laws ” ); asbestos or
asbestos-containing materials; lead or lead-containing materials;
oils; petroleum-derived compounds; pesticides; or polychlorinated
biphenyls (all of which are hereafter collectively referred to as
“ Hazardous Materials ”). No
part of the Property has been previously used by Seller, or to
Seller’s actual knowledge, by any other Person, for the
storage, manufacture or disposal of Hazardous
Materials. Seller has not received from any governmental
body having authority any written complaint, order, citation or
notice with regard to air emissions, water discharges, noise
emissions and Hazardous Materials, if any, or any other
environmental, health or safety matters affecting the Property or
any part thereof. To Seller’s actual knowledge,
there are no underground storage tanks of any nature located on any
of the Property.
(g)
Bankruptcy . There is no bankruptcy, insolvency,
rearrangement or similar action or proceeding, whether voluntary or
involuntary, pending or, to Seller’s actual knowledge,
threatened against Seller.
(h)
FIRPTA . Seller is a “United States
person” within the meaning of Sections 1445(f)(3) and
7701(a)(30) of the Internal Revenue Code of 1986, as
amended.
(i)
No Binding Agreements . Except for the Permitted
Exceptions, Seller is not a party to, and the Property is not
subject to, any agreements that will be binding on the Property or
Purchaser on or after the Closing Date.
(j)
Zoning . The Property is zoned PD-OP under the
1972 Loudoun County Zoning Ordinance, subject to the Approved
Concept Plan and Proffers (including the existing Special
Exceptions (if any) approved concurrently with such Approved
Concept Plan and Proffers). To the best of
Seller’s actual knowledge, the Property is not subject to any
other development conditions, proffers or restrictions except for
those contained in the Property Owners Association
Covenants.
(k)
Limitations on Seller’s Liability for Representations and
Warranties . Seller’s liability for a
misrepresentation or breach of warranty under this Agreement shall
be subject to the following limitations:
(1) Seller’s
representations and warranties are for the personal benefit of the
Purchaser and no such representation or warranty may be assigned to
or
enforced by any other Person, except any
permitted assignee or any assignee consented to by
Seller.
(2) Whenever
a representation or warranty is made in this Agreement on the basis
of the best knowledge or the actual knowledge of Seller or words of
similar import, or whether Seller has received written notice, such
representation or warranty is made with the exclusion of any facts
disclosed to or otherwise actually known by Purchaser before the
Due Diligence Termination Date, and is made solely on the basis of
the actual, as distinguished from implied, imputed or constructive,
knowledge on the date that such representation or warranty is made
of Arthur N. Fuccillo, whom Seller represents to be the
representative of Seller having responsibility for the management
and sale of the Property and accordingly the individual responsible
for being informed of matters relevant to this Agreement, without
independent investigation or inquiry, and without attribution to
Arthur N. Fuccillo of facts and matters otherwise within the
personal knowledge of any other agent or employees of Seller or any
other Person, and excluding, whether or not actually known by
Arthur N. Fuccillo, any matter actually known to Purchaser or its
agents or employees on the Due Diligence Termination
Date. For purposes of this Section 5(k)(2
) , “actually known by Purchaser” shall mean any
matter (i) disclosed by any written document delivered to or made
available to Purchaser for its review, (ii) disclosed by any
written report prepared for Purchaser by any employee, agent or
independent contractor of Purchaser in connection with
Purchaser’s due diligence or otherwise with respect to its
acquisition of the Property, or (iii) disclosed to any employee,
agent or independent contractor of Purchaser in connection with
Purchaser’s due diligence or otherwise with respect to its
acquisition of the Property, provided that such matter is within
the scope of the duties or responsibilities of such employee, agent
or independent contractor.
(3) If,
before the Closing Date, Purchaser obtains actual knowledge that
any of the Seller’s representations or warranties is
inaccurate and Purchaser nonetheless proceeds with the Closing,
Seller shall not have any liability for any such matter regarding
which Purchaser had actual knowledge before the expiration of the
Closing Date.
(4) The
aggregate liability of Seller for all misrepresentations and
breaches of warranties discovered prior to Closing shall not exceed
$250,000, and shall be further limited to the direct, but not
consequential or punitive, damages resulting from any such
misrepresentations or breaches. The preceding sentence
shall not apply to actual fraud or intentional
misrepresentation.
(5) All
representations and warranties contained in this Agreement shall
survive the Closing, except that each of the representations and
warranties in this Section 5 shall terminate nine (9)
months after the Closing Date unless, within the nine-month period,
Seller receives notice of a breach of such representation or
warranty.
6.
Representations and Warranties of Purchaser . As
a material inducement to Seller to enter into this Agreement and to
sell the Property to Purchaser, Purchaser represents and warrants
to Seller as follows:
(a) Purchaser’s
purchase of the Property is for the development and construction by
Purchaser of certain improvements on the Property for its own use
and use by its Affiliates and not for speculation in landholding or
for resale (except for sales to Affiliates who will purchase for
their own use and not for speculation in landholding or for
resale), except for the Future Building.
(b) Purchaser
is a sophisticated investor with substantial experience in
purchasing unimproved real property similar to the
Property. Purchaser will have the right to examine and
inspect the physical nature and condition of the Property,
including environmental conditions, and agrees to purchase the
Property in its “as is” condition on the Effective
Date, solely in reliance on its own tests, investigations and
studies and not in reliance on any representations or warranties
made by Seller with regard to those matters except as expressly set
forth in this Agreement, the Deed, and the Seller’s Closing
Certificate. Neither Seller nor any other agent,
partner, employee, or representative of Seller has made any
representation or warranty regarding the physical condition of the
Property, or any part thereof, or anything relating to the subject
matter of this Agreement, except as expressly set forth in this
Agreement, the Deed and the Seller’s Closing Certificate, and
Purchaser, in signing and delivering this Agreement, has not and
will not rely upon any statement, information, or representation to
whomsoever made or given, whether to Purchaser or others, and
whether directly or indirectly, verbally or in writing, made by any
Person, except as expressly set forth in this Agreement, the Deed
and Seller’s Closing Certificate.
7.
Additional Obligations of Seller. Seller
covenants and agrees as follows:
(a)
Possession . On the Closing Date, Seller agrees
to give full, complete and actual possession of the Property to
Purchaser, free and clear of all tenancies and other rights of
occupancy in favor of third parties.
(b)
Affirmative Covenants . Between the Effective
Date and the Closing Date, Seller agrees to:
(1) maintain
the Property in its present order and condition and deliver the
Property on the Closing Date in substantially the condition it is
in on the Effective Date;
(2) deliver
to Purchaser, promptly after receipt by Seller, copies of all
notices of violation issued by any board, bureau, commission,
department or body of any municipal, county, state or federal
government unit, or any subdivision thereof, with respect to the
Property received by Seller after the Effective Date;
and
(3) in
the event Seller becomes aware that any representation or warranty
of Seller set forth in Section 5 will not be
true and correct in all material
respects on the Closing Date as if made at and
as of the Closing Date, give prompt written notice thereof to
Purchaser, which notice shall include all appropriate information
related thereto that is in Seller’s possession or
control.
(c)
Negative Covenants . Between the Effective Date
and the Closing Date, Seller agrees that, without Purchaser’s
written consent in each case, it will not do any of the
following:
(1) voluntarily
grant, create, assume or permit to be created any mortgage, lien,
lease, encumbrance, easement, covenant, condition, right-of-way or
restriction upon the Property or voluntarily take or permit any
action adversely affecting the title to the Property as it exists
on the date of this Agreement; or
(2) permit
occupancy of, or enter into any lease for all or any part of the
Land.
(d)
Zoning/Proffers . Seller agrees that Seller shall
be responsible, at its sole cost and expense, for the performance
of any and all of the Proffers included in the Approved Concept
Plan and Proffers, including, but not limited to, any Proffers that
would impact the Purchaser's ability to develop the Property or to
obtain permits for Purchaser’s Intended
Use. Additionally, if the Pending Zoning is approved by
the Board of Supervisors of Loudoun County before the Closing Date,
Seller shall, at its sole cost and expense, be responsible for any
proffers, development conditions or similar requirements associated
with the Pending Rezoning unless otherwise agreed to in writing by
Purchaser and set forth in the Proffer Allocation and
Infrastructure Agreement. Seller and Purchaser
acknowledge that the Pending Rezoning may require the construction
of the SWM/BMP Facility and that the Pending Rezoning and the COE,
as part of its approval of Purchaser’s Wetlands Disturbance
Request, may require the preservation of the mature stand of
quality trees generally in the area depicted on Exhibit
A as "Potential Tree Preservation
Area". Seller shall not be obligated, and shall not
agree, to the designation of the “Potential Tree Preservation
Area” as a tree preservation area unless the Pending
Rezoning, as finally approved by the Board of Supervisors, permits
the portion of Century Boulevard that Seller has the right to and
shall seek to eliminate (as described on Sheet 1 of 3 of
Exhibit A as "Century Boulevard To Be Eliminated.")
is eliminated from the Century Boulevard Extension. If
the Pending Rezoning, as finally approved by the Board of
Supervisors, does not permit such portion of Century Boulevard to
be eliminated, and the Option 2 Parcel is conveyed, Seller
acknowledges that the Future Building may be located in the area
designated as “Potential Tree Preservation
Area.” Seller's agreement with respect to the
performance of the Proffers and/or any proffers, development
conditions or similar requirements associated with the Pending
Rezoning shall be set forth in the Proffer Allocation and
Infrastructure Agreement, which shall be a covenant running with
the land. As part of such Pending Zoning, Purchaser
agrees to commit that its first building will achieve a LEED
certification of silver or better.
7A.
Purchaser’s Post-Closing Obligations .
(a)
Restriction on Resale of Land .
(1) Except
as otherwise provided in the next sentence, Purchaser agrees that,
during the period beginning on the Closing Date and ending on the
tenth (10 th
) anniversary of the Closing Date,
it shall not sell to any Person (other than an Affiliate or Seller)
any part of the Land. This restriction shall not apply
to (i) the sale of the Headquarters Building Parcel after the
construction of the Phase 1 Building has been completed (as
evidenced by the issuance by the applicable Governmental Authority
of a certificate of occupancy), (ii) the sale of the Ancillary
Parcel in conjunction with the sale of the Headquarters Building
Parcel after the completion of construction of the Phase I
Building, or (iii) the sale of the Ancillary Parcel after the
completion of construction of a building thereon (as evidenced by
the issuance by the applicable Governmental Authority of a
certificate of occupancy). Any Affiliate of the
Purchaser who purchases all or any part of the Land from the
Purchaser shall be subject to the same restrictions on sale as the
Purchaser.
(2) After
the tenth (10 th )
anniversary of the Closing Date, Purchaser’s or an
Affiliate’s right to sell any part of the Land upon which a
building has not been constructed shall be subject to
Seller’s rights under the Pre-Emptive Option
Agreement.
(3) The
restrictions described in this Section 7A(a) shall be
included in the Pre-Emptive Option Agreement.
(b)
Construction of Century Boulevard Extension .
(1) Promptly
after the Closing Date, Purchaser shall commence construction of
the Century Boulevard Extension. Purchaser may elect to
construct the Century Boulevard Extension as a public road or a
private road, but in either event the Century Boulevard Extension
shall be constructed in accordance with the Approved Century
Boulevard CPAP as a four lane median divided roadway to public road
standards and in accordance with the same standards of construction
used by Seller in constructing the portion of Century Boulevard
completed before the Effective Date. Purchaser shall
thereafter prosecute the construction of the Century Boulevard
Extension in good faith and with diligence and
continuity.
(2) If
the Century Boulevard Extension is constructed as a private road,
at the Closing Seller and Purchaser shall enter into a reciprocal
easement agreement (the “ Century Boulevard Easement
Agreement ”), in a form to be agreed upon by Seller
and Purchaser, prior to the Due Diligence Termination Date,
granting easements for the use of the Century Boulevard Extension,
establishing maintenance standards, providing for sharing of the
costs of maintaining the Century Boulevard Extension and containing
such other provisions as may be mutually agreed
upon. The formula for sharing maintenance costs shall be
based on the square footage of improvements utilizing
the Century Boulevard
Extension. Additionally, if Purchaser acquires the
Option 2 Parcel, the Century Boulevard Easement Agreement shall
cover (i) that portion of the private road that extends from the
Century Boulevard Extension and provides access to both the Option
2 Parcel and Seller’s Retained Property ( the “Private
Road Joint Maintenance Area,” as shown of Sheet 3 of
Exhibit A ), and shall include provisions
establishing maintenance standards and the sharing of maintenance
costs, and (ii) that portion of the private road that extends from
the Private Road Joint Maintenance Area to Seller’s Retained
Property (the “Seller’s Private Road” as shown on
Sheet 3 of Exhibit A ) , which Seller’s
Private Road shall be constructed and maintained by Seller at its
expense.
(c)
Restrictions on Rezoning of Property . Purchaser
agrees that, during the period beginning on the Closing Date and
ending on the twentieth (20 th )
anniversary of the Closing Date, it will not cause or permit the
Land to be rezoned to permit a density of development greater than
450,000 square feet of office space, unless the increased density
of development is for the purpose of constructing one or more
additional office buildings on the Land that will be occupied
solely by Purchaser or one or more of its
Affiliates. The foregoing restriction shall be included
in the Proffer Allocation and Infrastructure Agreement.
(d)
Survival . Purchaser’s obligations under
this Section 7A shall survive the Closing.
7B.
Post-Closing Property Exchange .
(a) If
(i) the Board of Supervisors does not approve the Pending Rezoning
before the Closing Date, and (ii) within five (5) years after the
Closing Date, the applicable Governmental Authority approves the
Pending Zoning, or another rezoning of the Overall Property, that
permits the elimination of the extension of Century Boulevard
described in Section 3A(d) , Purchaser shall have the
right, by delivering notice to Seller within sixty (60) days after
such approval becomes final (with time being of the essence), to
require Seller to join with Purchaser in effecting the boundary
line adjustment and the exchange transactions described in
Section 7B(b) . Seller agrees to give
Purchaser written notice of the approval of such a rezoning and the
commencement of such sixty (60) day
period. Purchaser’s right to deliver the notice
referred to in this subsection is personal to Purchaser and may not
be transferred or assigned to any other Person.
(b) If
Purchaser timely delivers to Seller the notice referred to in
Section 7B(a) , Purchaser, at its sole cost and
expense, shall promptly cause its civil engineers to prepare a
boundary line adjustment plat that, when approved by the applicable
Governmental Authority, will permit Seller to convey the part of
the Option 1 Parcel not included in the Option 2 Parcel to
Purchaser and will permit Purchaser to convey a part of the Option
2 Parcel to Seller so that, immediately after the exchange,
Purchaser will be the sole owner of the Option 1 Parcel and Seller
will be the Seller owner of the Option 2 Parcel. Seller
shall have the right to approve the boundary line adjustment plat,
but agrees that its approval will not be unreasonably withheld,
delayed or conditioned. Promptly after the boundary line
adjustment plat (in the form approved by Seller) is
approved by the applicable Governmental
Authority, Seller and Purchaser shall complete the exchange by the
delivery of special warranty deeds. Each party shall transfer and
convey to the other party good and marketable title to the land to
be conveyed by it, free and clear of all liens, encumbrances,
easements, rights-of-way, conditions and other matters affecting
title other than those existing on the Closing Date or created on
or after the Closing Date pursuant to this
Agreement. Each party shall pay the Virginia
grantor’s tax with respect to the deed in which it is the
grantor and all other transfer taxes and recording expenses with
respect to the deed in which it is the grantee. The
parties shall not prorate or adjust current real estate taxes with
respect to the land being exchanged.
(c) This
Section 7B shall not apply unless, at the time
Purchaser delivers the notice referred to in Section 7B(a), the
Option 2 Parcel is owned by Purchaser, by an Affiliate of Purchaser
or by Purchaser and one or more of its Affiliates.
8.
Site Plan Approval, Building Permits and Related Matters
. Seller agrees that Purchaser’s obligation to
purchase the Property pursuant to this Agreement shall be subject
to the approval by the applicable Governmental Authorities of the
Century Boulevard CPAP. Accordingly, Seller and
Purchaser have agreed to the following procedures, including
timetable, for obtaining approval of the Century Boulevard CPAP and
certain other governmental approvals.
(a)
Loudoun County and COE Approval of SWM/BMP Facility
. If Purchaser elects to pursue one of the Pond Concept
Development Plans pursuant to Section 3A(f) ,
Purchaser shall promptly prepare a written requested to be
submitted to the Department of Environmental Quality (“
DEQ ”) or the COE, or both, as appropriate, to
permit Purchaser to disturb wetlands to the extent necessary to
permit the construction of the SWM/BMP Facility (the “
Wetlands Disturbance Request ”). The
Wetlands Disturbance Request and the accompanying documentation
shall be prepared by Wetlands Studies and Solutions, Inc. and/or
Dewberry and Davis, LLC, or another firm of wetland consultants
and/or civil engineers selected by Purchaser and approved by
Seller, such approval not to be unreasonably withheld, delayed or
conditioned. The design and location of the SWM/BMP
Facility shall be in substantial conformity with the Approved
Concept Development Plan showing such Facility and shall comply
with all applicable Legal Requirements. Purchaser shall
deliver a copy of its proposed Wetlands Disturbance Request and
accompanying documentation to Seller within ninety (90) days after
the end of the Due Diligence Period so that Seller may determine
whether the design and location of the proposed SWM/BMP Facility
conforms to the Approved Concept Development Plans. The
provisions of Section 8(b)(1) relating to the review,
revision and approval of Purchaser's proposed Site Plan shall apply
to the review, revision and approval of Purchaser’s proposed
Wetlands Disturbance Request. Within 10 Business Days
after approval (or deemed approval) by Seller, Purchaser shall
submit the Wetlands Disturbance Request in the form approved (or
deemed approved) to DEQ or COE, or both, as
applicable. If Purchaser constructs the SWM/BMP
Facility, the cost of designing the SWM/BMP Facility and obtaining
the necessary DEQ/COE and Loudoun County approvals for such
Facility shall be paid 50% by Seller and 50% by Purchaser,
including the costs associated with any required wetlands
mitigation (including purchase of off-site mitigation
credits). The cost of construction of such SWM/BMP
Facility shall be paid as
provided in the Proffer Allocation and
Infrastructure Agreement. This Section
8(a) shall not apply if Purchaser elects to pursue one of
the Non-Pond Concept Plans.
(b)
Preparation and Approval of Site Plan and Century Boulevard
CPAP .
(1) Purchaser
agrees, promptly after the end of the Due Diligence Period, (or
promptly after the approval by DEQ or COE, or both if required, of
Purchaser’s Wetlands Disturbance Request, if later) to
prepare (1) a site plan for the Option 2 Parcel (the “
Site Plan ”), and (ii) the Century Boulevard
CPAP. The Site Plan and Century Boulevard CPAP shall be
prepared by Dewberry & Davis, LLC, or another firm of civil
engineers selected by Purchaser and approved by Seller, such
approval not to be unreasonably withheld, delayed or
conditioned. The Site Plan and Century Boulevard CPAP
shall be prepared in substantial conformity with the Approved
Concept Development Plans that Purchaser elects to pursue, provided
such Site Plan may be limited to the Phase 1 Building and shall
comply with all applicable Legal Requirements. Purchaser
shall deliver a copy of its proposed Site Plan and Century
Boulevard CPAP to Seller on or before the later to occur of (i) 30
Business Days after the end of the Due Diligence Period, or (ii) 60
Business Days after the approval by DEQ or COE, or both, as
applicable, of Purchaser’s Wetlands Disturbance Request), so
that Seller may determine whether the Site Plan and Century
Boulevard CPAP conform to the Approved Concept Development
Plan. If Seller determines that the proposed Site Plan
and Century Boulevard CPAP do not conform to the applicable
Approved Concept Development Plan, Seller shall so notify
Purchaser, specifying in what respects the proposed Site Plan and
Century Boulevard CPAP do not so conform, and Purchaser shall
revise the Site Plan and Century Boulevard CPAP to so conform it
and shall resubmit the revised Site Plan and Century Boulevard CPAP
to Seller for review for that purpose. Purchaser and
Seller shall act in good faith with diligence and continuity in
preparing, reviewing and, if necessary, revising the Site Plan and
Century Boulevard CPAP. The initial review by Seller of
the proposed Site Plan and Century Boulevard CPAP shall be
completed within 10 Business Days after it is submitted by
Purchaser and any subsequent review by Seller of any revisions
thereto shall be completed within 10 Business Days after
Purchaser’s submission of such revision. In case
of resubmissions or revisions, Seller may not disapprove any matter
previously submitted and approved by Seller, except to the extent
that such resubmission or revision affects any matter previously
approved or deemed approved. If Seller does not notify
Purchaser of its determination with the 10-Business Day period,
Seller shall be deemed to have determined that the proposed Site
Plan and Century Boulevard CPAP or any revision thereof conforms to
the Approved Concept Development Plan.
(2) If
Purchaser elects to pursue an Approved Concept Development Plan
that includes the SWM/BMP Facility simultaneously with the
construction of the Phase 1 Building and the DEQ/COE and Loudoun
County have agreed that the SWM/BMP Facility can be installed in
the area generally depicted on the applicable Approved Concept
Development Plan, then the construction of such Facility shall be
pursued simultaneously with the Site Plan either as a part of
the
Site Plan or as a separate construction plan and
profile (the " SWM/BMP CPAP Facility "), and the
review, revision and approval process for the Site Plan set forth
in Section 8(b)(1) above shall apply equally to the
SWM/BMP CPAP Facility if it is pursued as a separate
plan. Regardless of whether the SWM/BMP CPAP Facility is
pursued as a part of the Site Plan or as a separate CPAP, or if
later pursued by Purchaser within the Pond Construction Option
Period, the engineering and design costs of such plan and any
wetlands mitigation costs shall be shared between Seller and
Purchaser with Seller paying 50% and Purchaser paying
50%. The allocation of such costs if such Facility is
pursued as part of the Site Plan shall be determined by the civil
engineer preparing the Site Plan.
(c)
Preparation and Approval of Lot Creation Document
. Concurrently with the preparation of the proposed
Century Boulevard CPAP, Purchaser shall cause its civil engineering
firm to prepare a boundary line adjustment plat, a subdivision
waiver plat or a plat of subdivision (a “ Lot Creation
Document ”) sufficient, in form and substance, to
permit the Option 2 Parcel and the two future Seller parcels as
shown on Exhibit A as “Future Seller
Parcels” to be created as three (3) separate parcels of land
that are legally capable of being conveyed by deed and, if
Purchaser has elected to construct the Century Boulevard Extension
as a public road pursuant to Section 7A(b) , the
dedication of the Century Boulevard Extension as a public
right-of-way in accordance with the all applicable Legal
Requirements, including the Loudoun County subdivision ordinances
and also including any associated on or off-site easements required
for the approval of such plans and the construction of the
improvements shown thereon and on the Approved Concept Development
Plan. The Lot Creation Document shall be prepared in
conformity with the Approved Concept Development Plan selected by
Purchaser and the proposed Site Plan. Purchaser shall
act in good faith with diligence and continuity in preparing and,
if necessary, revising the Lot Creation
Document. Purchaser shall deliver a copy of the proposed
Lot Creation Document to Seller at the same time it delivers a copy
of the proposed Site Plan and Century Boulevard CPAP pursuant to
Section 8(b)(1) so that Seller may determine whether
the proposed Lot Creation Document conforms to the Approved Concept
Development Plan and the proposed Site Plan. The
provisions of Section 8(b)(1) relating to the review,
revision and approval of Purchaser’s proposed Site Plan shall
apply to the review, revision and approval of Purchaser’s
proposed Lot Creation Document.
(d)
Governmental Approvals . Within twenty (20)
Business Days after Seller approves the Purchaser’s proposed
Site Plan, Century Boulevard CPAP, SWM/BMP CPAP Facility, if
applicable, and proposed Lot Creation Document, Purchaser shall
submit the Seller-approved Site Plan, Century Boulevard CPAP,
SWM/BMP CPAP Facility, if applicable, and the Seller-approved Lot
Creation Document to the applicable Governmental Authorities for
their review and approval, and shall thereafter proceed in good
faith with diligence and continuity to obtain from such
Governmental Authorities their approval of the proposed Site Plan,
Century Boulevard CPAP, SWM/BMP CPAP Facility, if applicable, and
the proposed Lot Creation Document. If a public hearing
is held in connection with the proposed Site Plan, Purchaser shall
notify Seller promptly after Purchaser receives notice of the date
of the hearing, and Seller’s representatives shall have the
right to attend, and to present evidence and argument at, the
hearing. If any
Governmental Authority requires Purchaser to
materially modify the Seller-approved Site Plan, Century Boulevard
CPAP, SWM/BMP CPAP Facility, if applicable, or the Seller-approved
Lot Creation Document, or any of them, Purchaser shall submit the
proposed modifications to Seller, identifying modifications from
the previously approved submissions. Purchaser may make
material changes only to the extent that such changes are required
by the Governmental Authority to comply with Legal
Requirements. Each review by Seller pursuant to this
Section 8(d) shall be completed within 10 Business
Days after the date of submission of the proposed modifications of
the Site Plan, Century Boulevard CPAP, SWM/BMP CPAP Facility, if
applicable, or the Lot Creation Document, as the case may
be. If Seller does not notify Purchaser of its
determination within the 10-Business Day period, Seller shall be
deemed to have approved the proposed modification.
(e)
Seller’s Joinder in Site Plan, Century Boulevard CPAP,
SWM/BMP CPAP Facility and Lot Creation Document.
Seller shall join in any required land development
applications and similar applications necessary for Purchaser to
process the Site Plan, the Century Boulevard CPAP, the SWM/BMP CPAP
Facility, if applicable, and the Lot Creation Document.
After the applicable Governmental Authorities have
approved the Site Plan, the Century Boulevard CPAP, the SWM/BMP
CPAP Facility, if applicable, and the Lot Creation Document, or any
of them, Seller shall, to the extent required by Legal
Requirements, sign the Site Plan, Century Boulevard CPAP, SWM/BMP
CPAP Facility, if applicable, and the Lot Creation Document,
including any associated on or off-site easements required for the
approval of such plans and the construction of the improvements
shown thereon and on the Approved Concept Development Plan
in its capacity as the then-owner of the
Property. Purchaser shall, at its cost and expense and
without reimbursement from Seller, cause the Lot Creation Document
to be delivered to the Escrow Agent at Closing for recording among
the Land Records of Loudoun County, Virginia, but the Lot Creation
Document shall not be recorded unless the Closing is consummated
pursuant to the provisions of this Agreement.
(f)
Preparation of Plans and Specifications . Within
20 Business Days after the applicable Governmental Authorities have
approved the Site Plan, the Century Boulevard CPAP, the SWM/BMP
CPAP Facility, if applicable, and the Lot Creation Document,
Purchaser shall prepare plans, specifications and working drawings
(collectively, the “ Building Plans ”)
for the Phase 1 Building. The Building Plans shall be
prepared by Kishimoto Gordon or another firm of architects selected
by Purchaser and approved by Seller. The Building Plans
are sometimes referred to in this Agreement as the “
Construction Plans .” The
Construction Plans shall be prepared in conformity with the
Approved Concept Development Plan and the approved Site Plan, shall
comply with all applicable Legal Requirements and shall be in
sufficient detail to qualify for submission to the applicable
Governmental Authorities for a building
permit. Purchaser shall deliver a copy of its proposed
Construction Plans to Seller within 20 Business Days after the date
on which the Site Plan is approved by the applicable Governmental
Authorities so that Seller may determine whether the Construction
Plans conform to the Approved Concept Development
Plan. Seller shall not unreasonably withhold, delay or
condition its approval of the Purchaser’s proposed
Construction Plans, provided they are
prepared in conformity with the Approved Concept
Development Plan and otherwise comply with the requirements of this
Section 8(f) . If Seller determines that
the proposed Construction Plans do not conform to the Approved
Concept Development Plan or the other requirements of this
Section 8(f) , Seller shall so notify Purchaser,
specifying in what respects the proposed Construction Plans do not
so conform, and Purchaser shall revise the Construction Plans to so
conform it and shall resubmit the revised Constructions Plans to
Seller for review for that purpose. Purchaser and Seller
shall act in good faith with diligence and continuity in preparing,
reviewing and, if necessary, revising the Construction
Plans. The initial review by Seller of the proposed
Construction Plans shall be completed within 10 Business Days after
they are submitted by Purchaser and any subsequent review by Seller
of any revisions thereto shall be completed within 10 Business Days
after Purchaser’s submission of such revision. In
case of resubmissions or revisions, Seller may not disapprove any
matter previously submitted and approved by Seller, except to the
extent that such resubmission or revision affects any matter
previously approved or deemed approved. If Seller does
not notify Purchaser of its determination within 10-Business Day
period, as the case may be, Seller shall be deemed to have
determined that the proposed Construction Plans or any revision
thereof conform to the Approved Concept Development
Plan.
(g)
Compliance with Legal Requirements . Purchaser is
responsible for ensuring that the Site Plan, the Century Boulevard
CPAP, the SWM/BMP CPAP Facility, if applicable, the Lot Creation
Document and the Construction Plans comply with all applicable
Legal Requirements. Seller’s determination that
the Site Plan, the Lot Creation Document and the Construction
Plans, or any of them, meet the standards for conformity required
by Section 8(a) , Section 8(b) , Section
8(c) and Section 8(f) shall not be, nor be
construed as being, nor be relied upon as, a determination that the
Site Plan, the Century Boulevard CPAP, the SWM/BMP CPAP Facility,
if applicable, the Lot Creation Document or the Construction Plans
comply with Legal Requirements.
(h)
Filing for Building Permit . Within 10 Business
Days after Seller approves the Purchaser’s Construction
Plans, Purchaser shall submit the Seller-approved Construction
Plans to the applicable Governmental Authorities for their review
and approval and shall apply for all permits required to permit
Purchaser to commence construction of the improvements described in
the Seller-approved Constructions Plans (collectively, the “
Building Permit ”). Purchaser shall
thereafter proceed in good faith with diligence and continuity to
obtain from such Governmental Authorities their approval of the
proposed Construction Plans and the issuance of the Building
Permit. Seller, as the record owner of the Land and the
portion of the Overall Property on which the Century Boulevard
Extension is located shall join with Purchaser in signing
applications for the Building Permit to the extent such joinder is
required by law.
(i)
Costs and Expenses . Purchaser, at its own
expense and without reimbursement from Seller, will pay all fees
and reimbursable expenses of its architects and civil engineers and
all other costs and expenses of preparing the Site Plan, the
Century Boulevard CPAP, the Lot Creation Document, the Construction
Plans and obtaining the applicable Governmental Authorities’
approval of those documents and the issuance of the Building
Permit. The cost of preparing the SWM/BMP CPAP Facility,
if
applicable, shall be shared between Seller and
Purchaser as provided for in Section
8(a) hereof, with Seller to reimburse to Purchaser its
pro rata share of such costs within thirty (30) days of its receipt
of invoice therefor, including any supporting invoices from the
applicable civil engineer or other consultant.
(j)
Seller’s Termination Rights . This
Agreement may be terminated by Seller by giving written notice to
Purchaser and the Escrow Agent if:
(1) Purchaser
fails to comply with the time requirements set forth in
Section 8 hereof, provided such failure continues for
more than thirty (30) days following Seller's notice to Purchaser
of such failure, subject to force majeure.
(2) Purchaser
does not consummate the purchase of the Property on or before the
earlier to occur of (i) September 30, 2009, or (ii) 540 days after
the Due Diligence Termination Date.
(k)
Effect of Seller’s Termination . If Seller
terminates this Agreement pursuant to Section 8(j) ,
this Agreement shall become null and void, no party shall have any
further liability or obligation to any other party under this
Agreement, except for Purchaser’s Surviving Obligations and
the Escrow Agent shall pay $250,000 of the Deposit to Seller and
the Escrow Agent shall pay the balance of the Deposit to
Purchaser. Seller’s sole and exclusive remedy for
Purchaser’s failure to perform its obligations under this
Section 8 shall be to receive the $250,000 of the
Deposit as liquidated damages.
9.
Conditions Precedent to Purchaser’s
Obligations. The obligations of Purchaser to
purchase the Property from Seller and to perform the other
covenants and obligations to be performed by it on the Closing Date
shall be subject to the following conditions (all or any of which
may be waived in writing, in whole or in part, by
Purchaser):
(a)
Representations and Warranties True . The
representations and warranties made by Seller in Section
5 shall be true and correct in all material respects on and
as of the Closing Date with the same force and effect as if such
representations had been made on and as of the Closing
Date. The Seller’s Closing Certificate shall not
disclose that any of Seller’s representations and warranties
in Section 5 is untrue or incorrect in any
material respect as of the date of such certificate as if such
representations and warranties were made on and as of the date of
such certificate.
(b)
Seller’s Performance . Seller shall have
performed all covenants and agreements required by this Agreement
to be performed by it on or before the Closing Date.
(c)
Title to Property . On the Closing Date, (i)
Seller’s title to the Property shall be marketable, good of
record and in fact, and free and clear of all mortgages, liens,
encumbrances, easements, leases, conditions and other matters
affecting title other than only the Permitted Exceptions, and (ii)
the Title Company shall be unconditionally obligated and prepared,
subject to the payment of the applicable title insurance premium
and other related charges, to issue to Purchaser an ALTA extended
coverage owner’s title insurance policy (1992 form) for the
Property in compliance with the Title Commitment
(including such endorsements as Purchaser may
reasonably require), together with such reinsurance and direct
access agreements as may be reasonably required by
Purchaser.
(d)
Zoning . There shall have been no change in the
zoning classification or the zoning ordinances or regulations
affecting the Land from those existing as of the Due Diligence
Termination Date which would preclude or impair the continuing use
of the Property for purposes contemplated by the Approved Concept
Development Plan.
(e)
No Violations . All written notices of violations
of governmental orders or requirements noted or issued by any
applicable Governmental Authority, and any action by any
Governmental Authority in court against or affecting the Property,
which would have an adverse impact on Seller's ability to convey
the Property to Purchaser or on Purchaser's ability to acquire the
Property and develop the same as contemplated by the Approved
Concept Development Plan shall have been complied with by Seller or
the Property shall no longer be subject thereto, except to the
extent such matter results for the actions of Purchaser on the
Property.
(f)
No Tenants or Occupants . On the Closing Date,
the Land shall be free of all tenants and lessees and no Person
(other than Purchaser) shall have any right or option to purchase
all or any portion of the Land from Seller.
(g)
No Physical Change . Between the Effective Date
and the Closing Date there shall not have occurred any material
change in the physical condition of the Property, except for
changes, if any, caused by Purchaser's studies and
tests.
(h)
Site Plan, Century Boulevard CPAP, SWM/BMP CPAP Facility (if
applicable), Lot Creation Documents, Construction Plans and
Building Permit . On or before the Closing Date, the
applicable Governmental Authorities shall have approved the Site
Plan, the Century Boulevard CPAP, the SWM/BMP CPAP Facility (if
applicable) and the Lot Creation Documents (including any
dedication to public use of the Century Boulevard Extension, if
applicable), and all on and off-site easements for the development
of the Property provided for in or needed for the development
contemplated by the Approved Concept Development Plan shall have
been recorded.
(i)
Seller’s Reserved Easement for Future Construction of
SWM/BMP Facility . If Purchaser elects pursuant to
Section 3A(f) to develop and construct improvements
on the Land utilizing the Non-Pond Concept Development Plans, on or
before the Due Diligence Termination Date Seller and Purchaser
shall have agreed on the form and substance of an easement
agreement pursuant to which Seller will reserve, at the Closing, an
easement over and across the Land for purposes of its future
construction of the SWM/BMP Facility during the Pond Construction
Option Period, including the general parameters of and the physical
appearance of any storm water pond to be constructed at a later
date, the spillway and surrounding landscaping, Purchaser’s
right, if any, to make aesthetic upgrades to such Facility and the
monetary contribution to be made by Purchaser to Seller for the
cost of any such upgrades requested by Purchaser (the “
Pond Easement Agreement ”). If the
Purchaser elects to develop and construct improvements on the Land
utilizing the Pond Concept Development Plans, the Pond
Easement Agreement shall grant Seller the non
exclusive right in common with Purchaser to utilize the SWM/BMP
Facility to satisfy Seller’s and Purchaser’s stormwater
management and BMP requirements for the Property, the Overall
Property and Dulles Town Center project generally including
granting easements to the applicable Government Authority and
upgrading/retrofitting such facility, provided Purchaser restores
such facility and any associated landscaping to the quality that
existed prior to such disturbance.
(j)
Contribution for Cost of Construction of SWM/BMP Facility
. On or before the Due Diligence Termination Date,
Seller and Purchaser shall have agreed, in writing, on the amount
and timing of a reasonable contribution to be made by Seller or
Purchaser, as applicable, toward the cost of the SWM/BMP
Facility. If Purchaser constructs the SWM/BMP Facility
during the Pond Construction Reimbursement Period, Seller shall
make a contribution to the costs of designing and constructing such
Facility with the general parameters of Seller’s contribution
being the amount such Facility would have cost Seller to design and
construct if Seller were to construct such Facility solely to
accommodate Seller’s Retained Property or other property
within the larger Dulles Town Center project, whether or not owned
by Seller, but excluding (i) the property to be acquired by
Purchaser, and (ii) any property of Seller that will not utilize
such Facility to satisfy its stormwater management or BMP
requirements. If Seller constructs the SWM/BMP Facility
during the Pond Construction Reimbursement Period, Purchaser shall
make a contribution to the costs of designing and constructing such
Facility with the general parameters of Purchaser’s
contribution being the amount such Facility would have cost
Purchaser if Purchaser were to design and construct such Facility
solely to accommodate the undeveloped areas on the Property that is
subject to future development by Purchaser. For purposes
of this pro ration, it shall be a rebuttable presumption that any
development by Purchaser prior to Seller’s construction of
the SWM/BMP Facility would have provided its own stormwater
management and BMP facilities. It is anticipated that
the timing of the payment to be made by Seller or Purchaser, as
applicable would be when Seller or Purchaser, as applicable would
have otherwise been required to develop the SWM/BMP Facility, but
at a minimum on a site plan by site plan basis as development
occurs that will drain into such SWM/BMP Facility. Such
agreement shall also establish prorata contributions for the
maintenance of such facility. Seller’s and
Purchaser’s agreement relating to the matters referred to in
Section 9(i) and Section 9(j) will be
included in the Proffer Allocation and Infrastructure
Agreement.
(k)
Proffer Allocation and Infrastructure Agreement
. On or before the Due Diligence Termination Date,
Seller and Purchaser shall have agreed on the form and substance of
the Proffer Allocation and Infrastructure Agreement.
(l)
Architectural Review Board Approval . On or
before the Effective Date, the architectural review board under the
Property Owners Association Covenants shall have approved the
elevations for, and the exterior materials to be used in the
construction of, Purchaser’s Phase 1 Building as shown on the
Approved Concept Development Plan, Exhibit A and
Exhibit G. The standard for such review
and approval shall be that such building and exterior materials
shall be consistent in terms of quality with the other office
buildings developed by Seller (or its Affiliates) within the Dulles
Town Center Project
and is otherwise compatible with development
within the office portion Dulles Town Center
project. Compatible does not necessarily mean that such
building design will be similar in style to Seller's other
buildings within the project and both Seller and Purchaser
understand that architectural design should evolve over
time. Seller’s execution hereof confirms that the
ARB has given the approval contemplated above. Seller
hereby represents that the architectural review board under the
Property Owner’s Association Covenants has approved the
elevations for, and the exterior materials to be used in the
construction of, Purchaser’s Phase 1 Building as shown on the
Approved Concept Development Plan, Exhibit A and
Exhibit G .
(m)
Century Boulevard Easement Agreement . On or
before the Due Diligence Termination Date, Seller and Purchaser
shall have agreed on the form and substance of the Century
Boulevard Easement Agreement.
10.
Conditions Precedent to Seller’s
Obligations. The obligations of Seller to sell the
Property to Purchaser and to perform the other covenants and
obligations to be performed by it on the Closing Date shall be
subject to the condition (which may be waived in writing, in whole
or in part, by Seller):
(a)
Purchaser’s Performance . The Purchaser
shall have performed all covenants and agreements required by this
Agreement to be performed by it on or before the Closing
Date.
(b)
Notice to Proceed . On the Closing Date,
Purchaser shall deliver to Seller a copy of a Notice to Proceed
issued by Purchaser to its general contractor authorizing such
general contractor to commence construction of the Century
Boulevard Extension, immediately after the Closing, and Purchaser
shall issue and deliver to Seller a Notice to Proceed for the
construction of an office building containing at least 120,000
square feet of gross floor area ninety (90) days following building
permit.
(c)
Pond Easement Agreement . On or before the
expiration of the Due Diligence Termination Date, Seller and
Purchaser shall have agreed on the form and substance of the Pond
Easement Agreement.
(d)
Proffer Allocation and Infrastructure Agreement
. On or before the Due Diligence Termination Date,
Seller and Purchaser shall have agreed on the form and substance of
the Proffer Allocation and Infrastructure Agreement.
(e)
Century Boulevard Easement Agreement . On or
before the Due Diligence Termination Date, Seller and Purchaser
shall have agreed on the form and substance of the Century
Boulevard Easement Agreement.
(f)
Contribution for Cost of Construction of SWM/BMP Facility
. On or before the Due Diligence Termination Date,
Seller and Purchaser shall have agreed, in writing, on the amount
and timing of a reasonable contribution to be made by Seller to
Purchaser, or by Purchaser to Seller, toward the cost of the
SWM/BMP Facility. The requirements for, and the general
parameters of, the Seller’s or the Purchaser’s
contribution is described in Section 9(j)
.
11. Closing.
(a)
Closing Date and Escrow . The closing of the
purchase and sale of the Property (the “ Closing
” ) shall occur on the latest to occur of (i) the
20 th
day after the date on which the
applicable Governmental Authorities approve the Century Boulevard
CPAP (or, if the 20 th day is not a Business Day, on the first Business
Day thereafter), (ii) the 20 th day after the date on which the applicable
Governmental Authorities approve the Lot Creation Document (or, if
the 20 th
day is not a Business Day, on the
first Business Day thereafter), or (iii) January 9, 2009, with time
being of the essence,. Seller and Purchaser may, by
mutual agreement, agree to hold the Closing at an earlier
date. The Closing shall be held at the office of the
Escrow Agent, or at any other location in Fairfax or Loudoun
County, Virginia, approved by Seller and Purchaser. The
date on which the Closing occurs is referred to in this Agreement
as the “ Closing Date .” On or
before Noon, local time, on the Closing Date, Purchaser shall cause
to be deposited with the Escrow Agent immediately available funds
in an amount equal to the sum of the Purchase Price and the costs,
expenses, prorations and adjustments payable by Purchaser under
this Agreement, reduced by (x) the amount of the Deposit, and (y)
the net amount of the prorations and adjustments for which
Purchaser receives credit, if any, on the Closing Statement
(defined in Section 11(d) ). If (1) Seller
and Purchaser have each notified the Escrow Agent that all
conditions precedent to the other party’s performance have
been satisfied or waived (other than the respective covenants and
obligations of Seller and Purchaser to be performed on the Closing
Date), (2) the Escrow Agent has received the funds from Purchaser
in accordance with the preceding sentence, (3) the Escrow Agent has
received the documents and instruments to be delivered by Seller
pursuant to Section 11(b) , and (4) the Escrow Agent
has received the documents and instruments to be delivered by
Purchaser pursuant to Section 11(c) , then the Escrow
Agent shall, not later than 3:00 p.m., local time, on the Closing
Date, (i) record the Lot Creation Document, the Deed, the
Repurchase Option Agreement, the Pond Easement Agreement, the
Century Boulevard Easement Agreement (if applicable), the Proffer
Allocation and Infrastructure Agreement and the Pre-Emptive Option
Agreement, in that order, in the applicable land records, (ii)
disburse to Seller an amount equal to the Purchase Price, reduced
by the Deposit and the costs, expenses, prorations and adjustments
payable by Seller under this Agreement and increased by the amount
of the prorations and adjustments for which Seller receives credit
on the Closing Statement, (iii) deliver to Purchaser the documents
and instruments referred to in Section 11(b) and all
other documents and instruments received by it which, in accordance
with the terms of this Agreement, are to be delivered by Seller to
Purchaser on the Closing Date, (iv) deliver to Seller the documents
and instruments referred to in Section 11(c) and all
other documents and instruments received by it which, in accordance
with the terms of this Agreement, are to be delivered by Purchaser
to Seller on the Closing Date, and (v) make the other disbursements
and deliveries required by the Closing Statement. On the
Closing Date, immediately after receiving confirmation that the
Deed has been recorded, the Escrow Agent shall disburse the Deposit
to Seller.
(b)
Seller’s Deliveries . On the Closing Date,
Seller shall deliver to Purchaser the following documents with
respect to the Property:
(1) the
Lot Creation Document in the form approved by the applicable
Governmental Authorities, signed by Seller, in recordable form (if
not previously recorded);
(2) the
Deed signed by Seller, in recordable form, vesting fee simple title
to the Property in Purchaser;
(3) a
certificate signed by Seller, dated as of the Closing Date (the
“ Seller’s Closing Certificate ”),
certifying to Purchaser that all of Seller’s representations
and warranties in Section 5 are true and correct as
of the date of such certificate as if such representations and
warranties were made on and as of the date of such certificate or,
if and to the extent any of such representations and warranties is
not so true and correct, identifying with reasonable particularity
the nature and extent to which any such representation or warranty
is not so true and correct;
(4) a
certification of Seller’s non-foreign status which complies
with the provisions of Section 1445(b)(2) of the Internal
Revenue Code of 1986, as amended, any regulations promulgated
thereunder, and any revenue procedures or other officially
published announcements of the Internal Revenue Service or the U.S.
Department of the Treasury in connection therewith, signed by
Seller;
(5) the
Closing Statement, signed by Seller;
(6) an
Owner’s Affidavit signed by Seller, addressed to the Title
Company, with respect to the absence of claims which would give
rise to mechanics’ liens, the absence of parties in
possession of the Property and the absence of unrecorded easements
granted by Seller, in the form required by the Title Company to
eliminate the exceptions for those matters from Purchaser’s
title insurance policy;
(7) affidavits
and other instruments, including Seller’s Organizational
Documents, and good standing certificates reasonably requested by
Purchaser and the Title Company, evidencing the power and authority
of Seller to enter into this Agreement and to consummate the
transactions contemplated by this Agreement;
(8) one
counterpart of each of the Repurchase Option Agreement, the Pond
Easement Agreement, the Century Boulevard Easement Agreement, (if
applicable) the Proffer Allocation and Infrastructure Agreement and
the Pre-Emptive Option Agreement signed by the Seller in recordable
form; and
(9) such
other documents as may be required by this Agreement or as may
reasonably be required to carry out the terms and intent of this
Agreement.
(c)
Purchaser’s Deliveries . On the Closing
Date, Purchaser shall pay the Purchase Price pursuant to
Section 11(a) , and shall deliver to Seller the
following documents with respect to the Property:
(1) one
counterpart of each of the Repurchase Option Agreement, the Pond
Easement Agreement, the Century Boulevard Easement Agreement (if
applicable), the Proffer Allocation and Infrastructure Agreement
and the Pre-Emptive Option Agreement signed by the Purchaser in
recordable form; and
(2) the
Closing Statement.
(d)
Apportionments . All real estate taxes (including
assessments made by reason of the fact that the Property is located
in any special taxing district or within a community development
authority) relating to the Property shall be paid or shall be
prorated between Seller and Purchaser as of the Closing
Date. For purposes of this proration, Purchaser shall be
deemed to own the Property and therefore be responsible for the
real estate taxes and assessments for the entire Closing
Date. If the Closing Date shall occur before the tax
rate or assessment is fixed for the tax year in which the Closing
Date occurs, the apportionment of taxes shall be upon the basis of
the tax rate or assessment for the immediately preceding tax year
applied to the latest assessed valuation and Seller and Purchaser
shall readjust real estate taxes promptly after the determination
of the tax rate or assessment for the tax year in which the Closing
Date occurs (with such obligation to survive the
Closing). Any apportionments and prorations which are
not expressly provided for in this Section shall be made in
accordance with the customary practice in Loudoun County,
Virginia. On or before the Closing Date, Seller and
Purchaser shall jointly prepare a schedule showing the Purchase
Price, the Deposit, the adjustments and prorations and the expenses
to be paid by Seller and Purchaser pursuant to this Agreement (the
“ Closing Statement ”). Any
net adjustment in favor of Purchaser shall be credited against the
Purchase Price on the Closing Date. Any net adjustment
in favor of Seller shall be paid in cash or cash equivalent on the
Closing Date by Purchaser to Seller. A copy of the
Closing Statement agreed upon by Seller and Purchaser shall be
signed by Seller and Purchaser and delivered to the Escrow Agent on
the Closing Date.
(e)
Delivery in Escrow . The delivery to the Escrow
Agent of the Purchase Price, the executed Deed and all other
documents, instruments and other payments required to be delivered
or paid by either party to the other by the terms of this Agreement
shall be deemed to be a good and sufficient tender of performance
of the terms hereof. The Escrow Agent shall have the
right, at the Closing, to apply the Purchase Price to pay off and
discharge encumbrances or other obligations affecting the Property
which are not Permitted Exceptions, so that title to the Property
shall be insurable as required by Section 9(c)
.
12.
Expenses. Purchaser shall pay all costs and
expenses associated with its due diligence, inspection and
feasibility review, survey, owner’s title insurance policy
and its own counsel fees. Seller shall pay the Virginia
grantor’s tax imposed in connection with the recording of the
Deed, the Clerk’s fee for recording the Deed and its own
counsel fees. Purchaser shall pay all State and County
transfer taxes imposed in connection with the recording
of the Deed and the Repurchase Option
Agreement. Purchaser and Seller shall each pay one-half
(1/2) of the Escrow Agent’s fee and all other charges and
expenses which arise in connection with the Closing.
13.
Termination .
(a)
Reasons for Termination . This Agreement may be
terminated upon written notice given to the Escrow Agent and the
other party hereto by:
(1) Purchaser
pursuant to Section 13(b) , if any one or more of the
conditions set forth in subsections (a) through (h) of
Section 9 is not satisfied on the Closing Date;
or
(2) Seller
pursuant to Section 13(c) , if any one or more of the
conditions set forth in subsections (a) or (b) of Section
10 is not satisfied on the Closing Date.
Seller’s right to terminate this Agreement
pursuant to this Section is in addition to Seller’s right to
terminate this Agreement pursuant to Section 8(j)
. If Seller terminates this Agreement pursuant to
Section 8(j) , the provisions of that Section
, and not the provisions of Section 13(c) shall
control the disposition of the Deposit.
(b)
Termination by Purchaser . If Purchaser
terminates this Agreement pursuant to Section
13(a)(1) , then this Agreement shall be null and void,
Escrow Agent shall return the Deposit to Purchaser and no party
shall have any further liability or obligation to any other party
under this Agreement, except for Purchaser’s Surviving
Obligations, and except that if Purchaser terminates this Agreement
pursuant to Section 13(a)(1) because of a breach by
Seller of the representations and warranties made by Seller in
Section 5 or the willful failure of Seller to perform
any of the covenants or agreements to be performed by it under this
Agreement, or the failure of Seller to make full settlement when
obligated to do so under this Agreement, Purchaser may sue to
recover its damages arising out of such breach or nonperformance,
but Seller’s liability for damages for a misrepresentation or
warranty discovered prior to Closing shall be subject to the
limitation contained in Section 5(k)(4) .
(c)
Termination by Seller . If Seller terminates this
Agreement pursuant to Section 13(a)(2) , this
Agreement shall become null and void, no party shall have any
further liability or obligation to any other party under this
Agreement, except for Purchaser’s Surviving Obligations, and
the Escrow Agent shall pay the Deposit to
Seller. Seller’s sole and exclusive remedy for
Purchaser’s default shall be to receive the Deposit as
liquidated damages, and in no event and under no circumstances
shall Seller be entitled to receive more than the Deposit as
damages for Purchaser’s default. THE PARTIES AGREE
THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY DIFFICULT AT THE TIME
OF MAKING THIS AGREEMENT TO ESTIMATE THE DAMAGES WHICH SELLER MAY
SUFFER BY REASON OF ANY DEFAULT BY PURCHASER IN THE TIMELY
PERFORMANCE OF ITS OBLIGATION TO PURCHASE THE PROPERTY AS PROVIDED
FOR HEREIN, INCLUDING THE
PERFORMANCE OF ITS OBLIGATIONS UNDER
SECTION 8 . THE PARTIES HERETO FURTHER
AGREE THAT THEIR BEST ESTIMATE, BASED ON ALL RELEVANT FACTS, OF THE
TOTAL DAMAGE AND EXPENSES THAT SELLER WOULD SUFFER IN THE EVENT OF
ANY DEFAULT IN THE TIMELY PERFORMANCE OF PURCHASER’S
OBLIGATION TO PURCHASE THE PROPERTY, IS AND SHALL BE IN AN AMOUNT
EQUAL TO THE DEPOSIT AND ALL INTEREST ACCRUED THEREON. ACCORDINGLY,
SUBJECT TO THE CONDITIONS FOR PURCHASER’S BENEFIT SET FORTH
IN THIS AGREEMENT, IN THE EVENT PURCHASER DEFAULTS IN THE TIMELY
PURCHASE OF THE PROPERTY IN ACCORDANCE WITH THE TERMS OF THIS
AGREEMENT, UNLESS SELLER IS THEN IN DEFAULT HEREUNDER, SELLER SHALL
BE RELEASED FROM ITS OBLIGATION TO SELL THE PROPERTY TO PURCHASER
AND SELLER SHALL BE ENTITLED AS ITS SOLE AND EXCLUSIVE REMEDY TO
RETAIN THE DEPOSIT AND ALL INTEREST ACCRUED
THEREON. SELLER AND PURCHASER HAVE EACH PLACED THEIR
INITIALS IN THE SPACES BELOW TO INDICATE THAT THEY HAVE READ,
UNDERSTAND AND AGREE TO THIS LIQUIDATED DAMAGES
PROVISION.
SELLER
PURCHASER
/s/ ROBERT K.
TANENBAUM
/s/ JOHN T. EVANS
(d)
Purchaser’s Right to Seek Specific Performance
. If Seller defaults in performing any covenants or
agreements to be performed by Seller under this Agreement,
Purchaser shall have the right, instead of terminating this
Agreement pursuant to Section 13(a) , to elect to
permit this Agreement to remain in effect and, in addition to the
remedies set forth in Section 13(b) , to seek
specific performance of Seller’s obligation to sell the
Property to Purchaser, subject to the limitation that no suit for
specific performance may be filed or commenced by Purchaser more
than 180 days after the otherwise required Closing Date.
(e)
Special Termination Provisions .
(1) If
any one or more of the conditions set forth in Section
9(i) , Section 9(j) , Section
9(k) or Section 9(m) is not satisfied on or
before the Due Diligence Termination Date, the Purchaser shall have
the right to terminate this Agreement by giving written notice of
termination to the Seller and the Escrow Agent at any time after
the Due Diligence Termination Date and before the date on which all
of the conditions set forth in Section 9(i) ,
Section 9(j) , Section 9(k) and
Section 9(m) are satisfied.
(2) If
any one or more of the conditions set forth in Section
10(c) , Section 10(d) , Section
10(e) or Section 10(f) is not satisfied on or
before the Due Diligence Termination Date, the Seller shall have
the right to terminate this Agreement by giving written notice of
termination to the Purchaser and the Escrow Agent at any time after
the Due Diligence Termination Date and before
the date on which all of the
conditions set forth in Section 10(c) , Section
10(d) , Section 10(e) and Section
10(f) are satisfied.
(3) If
Purchaser or Seller terminates this Agreement pursuant to
Section 13(e)(1) or Section 13(e)(2) ,
then this Agreement shall be null and void, Escrow Agent shall
return the Deposit to Purchaser and no party shall have any further
liability or obligation to any other party under this Agreement,
except for Purchaser’s Surviving Obligations, provided before
a party can terminate this Agreement pursuant to Section 13(e), the
party desiring to terminate the Agreement shall first deliver to
the other party a form of agreement satisfactory to the delivering
party to satisfy the conditions set forth in sections 9(i), 9(j),
9(k), 9(m), 10(c), 10(d), 10(e) or 10(f) (or for any of such
conditions that remain unsatisfied), including delivering a
certificate that such agreement(s) have been prepared in good faith
based on the terms of this Agreement. If within ten (10)
business days of the receiving party’s receipt of such
agreement(s), it agrees in writing to the form of such
agreement(s), then neither party shall have the ability to
terminate this Agreement based on the condition precedent
applicable to such agreement.
14. [Intentionally
Omitted]
15.
Brokers. Seller and Purchaser mutually represent
and warrant to the other that no agent, broker, or other Person
acting pursuant to express or implied authority of Seller or
Purchaser is entitled to a commission or finder’s fee in
connection with the transactions contemplated by this Agreement or
will be entitled to make any claim against Seller or Purchaser for
a commission or finder’s fee. Seller and Purchaser
shall each indemnify and defend the other against any loss,
liability, damage, costs, claims or expenses, including
attorneys’ fees, arising out of the breach by the
indemnifying party of any representations, warranties or agreements
made by it in this Section . The representations
and obligations under this Section shall survive the Closing
or, if the Closing does not occur, the termination of this
Agreement.
16.
Notices. Each notice, request, demand, consent,
approval or other communication (hereafter in this Section
referred to collectively as “notices” and referred to
singly as a “notice”) which Seller or Purchaser is
required or permitted to give to the other party pursuant to this
Agreement shall be in writing and shall be delivered personally, by
facsimile transmission or by recognized overnight national courier
service (such as Federal Express) (i) if to Seller, to the
attention of Arthur N. Fuccillo, Lerner Enterprises, LLC, 11501
Huff Court, North Bethesda, Maryland 20895-1094, Fax: (301)
770-0144, with a copy to Joel N. Simon, Esq., Special Counsel,
Lerner Enterprises, LLC, 11501 Huff Court, North Bethesda, Maryland
20895-1094 (FAX: (301)881-2932, or (ii) if to Purchaser, Joseph
Siekierski, c/o National Rural Utilities Cooperative Finance
Corporation, 2201 Cooperative Way, Herndon,
Virginia 20171] with copies to Cindy Gugino, Attorney at
law, c/o National Rural Utilities Cooperative Finance Corporation,
2201 Cooperative Way, Herndon, Virginia 20171 and to
Benjamin F. Tompkins, Esquire, c/o Reed Smith, LLP, 3110 Fairview
Park Drive, Suite 1400, Falls Church, Virginia 22042] or
at any other address designated by either party by notice to the
other party pursuant to this Section . Any notice
delivered to a party’s designated address by (a) personal
delivery, (b)
facsimile or (c) recognized overnight
national courier service shall be deemed to have been received by
such party at the time the notice is delivered to such
party’s designated address.
17.
Waiver of Jury Trial. The parties hereto waive
trial by jury in any action, proceeding or counterclaim brought by
any party against any other party on any matter arising out of or
in any way connected with this Agreement.
18.
Benefit and Burden. Subject to the provisions of
Section 23 , this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective
heirs, devisees, personal representatives, successors and
assigns.
19.
Applicable Law. This Agreement shall be governed
by, and construed in accordance with the laws of the Commonwealth
of Virginia (the “ Property Jurisdiction
” ) without application of principles of conflict of
laws. Seller and Purchaser hereby irrevocably submit to
the jurisdiction of any state or federal court sitting in the
Property Jurisdiction, in any action or proceeding arising out of
or relating to this Agreement and hereby irrevocably agree that all
claims in respect of such action or proceeding shall be heard and
determined in a state or federal court sitting in the Property
Jurisdiction.
20.
Entire Agreement. This Agreement contains the
entire agreement between the parties with respect to the purchase
and sale of the Property and is intended by the parties to be an
integration of all prior agreements by the parties regarding the
purchase and sale of the Property. The parties hereto
shall not be bound by any agreements, conditions, representations
or warranties relating to this transaction, oral or written, not
set forth in this Agreement.
21.
Time of the Essence. All times, wherever
specified herein for the performance by Seller or Purchaser of
their respective obligations hereunder, are of the essence of this
Agreement.
22.
Counterparts. This Agreement may be executed in
any number of counterparts, all of which together shall constitute
a single agreement binding on the parties hereto.
23.
Assignment . Except as otherwise provided in the
next sentence, Purchaser may not assign its rights under this
Agreement without Seller’s prior written consent, which may
be given or withheld by Seller in its sole and absolute
discretion. Purchaser shall have the right to assign its
rights under this Agreement, without the prior written consent of
Seller, to an Affiliate of Purchaser, but only if the assignee
assumes all liability and obligations of Purchaser under this
Agreement and Purchaser gives notice of the assignment to Seller at
least ten (10) Business Days before the Closing
Date. Any such assignment shall not release Purchaser
from its obligations under this Agreement.
24.
Risk of Loss. Until Closing and the recordation
of the Deed, risk of loss shall remain with Seller with respect to
any casualty, condemnation or similar matter.
25.
Legal Fees. If either Seller or Purchaser
resorts to litigation or any similar adversarial proceeding to
enforce any provision of this Agreement or by reason of the breach
of this Agreement, the prevailing party in any such action shall be
entitled to receive reasonable attorneys' fees and
costs.
26.
Cooperation in Future Development. Both prior to
and subsequent to Closing, both Seller and Purchaser shall
cooperate with each other in connection with the development of the
Property, as well as the development of the Overall Property and
the balance of the Dulles Town Center Project and agree to, among
other things, grant to each other any necessary easements and make
any required dedications and to join in any applications, including
rezoning applications, that the other party desires in connection
with the development of its parcel, provided any such cooperation
does not have a material adverse impact to the development
permitted on the cooperating parties parcel or increase the cost
thereof, unless the party seeking such cooperation agrees to incur
such additional costs. The provisions of this
cooperation agreement shall be set forth in the Proffer Allocation
and Infrastructure Agreement.
27.
Condemnation . In the event of the institution of
any proceedings by any Governmental Authority which shall relate to
the taking or proposed taking of any portion of the Property (or of
any off site improvements that benefit the Property, including with
respect to access or utilities by eminent domain prior to Closing,
Seller shall promptly notify Purchaser and Purchaser shall
thereafter have the right and option to terminate this Contract by
giving Seller written notice of Purchaser’s election to
terminate within ten (10) Business Days after receipt by Purchaser
of the notice from Seller. Seller hereby agrees to
furnish Purchaser with written notice of a proposed condemnation
within five (5) Business Days after Seller’s receipt of such
notification. Should Purchaser terminate this Contract,
the Deposit held by the Escrow Agent shall immediately be returned
to Purchaser and thereafter the parties hereto shall be released
from their respective obligations and liabilities hereunder, except
for the surviving obligations. Should Purchaser elect
not to terminate, the parties hereto shall proceed to Closing and
Seller shall assign all of its right, title and interest in all
awards in connection with such taking of the Property, to Purchaser
and/or provide Purchaser a credit for proceeds received by
Seller. If Purchaser fails to notify Seller of its
election within the ten (10) business day period, Purchaser will be
deemed to have elected to terminate the Agreement.
IN WITNESS WHEREOF
, the undersigned parties have
executed this Agreement as of the day and year first above
stated.
SELLER
DTC PARTNERS, LLC
By Lerner Enterprises, LLC,
its
Authorized
Member
By: /s/ ROBERT K.
TANENBAUM
Name: Robert K.
Tanenbaum
Title: Manager
Date of Signing: May 2 ,
2008
PURCHASER
NATIONAL RURAL UTILITIES COOPERATIVE
FINANCE CORPORATION
By:
/s/ JOHN T. EVANS
Name: John T.
Evans
Title: Senior Vice
President
Date of Signing: March 31 ,
2008
CONSENT BY ESCROW AGENT
The undersigned hereby agrees to
serve as the Escrow Agent under the foregoing and annexed Purchase
Agreement and to perform all duties and obligations of the Escrow
Agent under the provisions of the Purchase Agreement.
Dated this 2nd day of
May , 2008.
LOUDOUN COMMERCIAL TITLE,
LLC.
EXHIBIT B
AFTER RECORDING,
PLEASE RETURN TO:
Reed Smith LLP
3110 Fairview Park Drive
Suite 1400
Falls Church,
VA 22042
Tax Parcels #
Attn: Benjamin F. Tompkins,
Esquire
Consideration : $________________
SPECIAL WARRANTY DEED
THIS SPECIAL WARRANTY DEED is made as of
____________, 2008, by and between DTC PARTNERS, LLC , a
Virginia limited liability limited partnership (known of record as
Loudoun-LSJJ Partnership , a Maryland general partnership)
having its principal office at 11501 Huff Court, North Bethesda,
Maryland 20895-1094 (" Grantor "), and NATIONAL
RURAL UTILITIES COOPERATIVE FINANCE CORPORATION , a District of
Columbia cooperative association, having its principal
office at 2201 Cooperative Way, Herndon,
VA 20171 (" Grantee ").
WITNESSETH: For Ten Dollars ($10) and
other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Grantor does hereby GRANT,
BARGAIN, SELL and CONVEY, with Special Warranty of Title, unto
Grantee, its successors and assigns, in fee simple, the parcel of
land located in Loudoun County, Virginia, described in
Exhibit A attached hereto and made a part
hereof;
TOGETHER with all buildings, fixtures and
improvements located in and on such parcel of land; and
TOGETHER with all easements, rights-of-way,
appurtenances, licenses and privileges belonging or appurtenant to
such land; and
TOGETHER with all mineral, gas, oil and water
rights, sewer rights, other utility rights and development rights
now or hereafter allocated or allocable to such land;
and
TOGETHER with all right, title and interest of
Grantor in and to any land lying in the bed of any street, road,
avenue or alley, open or closed, adjacent to such land to the
center line thereof.
TO HAVE AND TO HOLD all of the aforesaid
property (the “ Property ”) unto the use
and benefit of Grantee, its successors and assigns, in fee simple,
forever, and Grantor does hereby covenant to warrant specially the
Property and to execute such further assurances of the Property as
may be requisite.
The Property is a part of the same property
acquired by the Grantor by deed recorded among the Land Records of
Loudoun County, Virginia, in Deed Book _____, at page
___.
The Property is conveyed subject only to the
conditions, easements, covenants, conditions, restrictions and
agreements set forth on Exhibit B attached hereto and
made a part hereof, to the extent, but only to the extent, that the
same are valid and subsisting and apply to the Property or any part
thereof.
IN WITNESS WHEREOF, the Grantor has caused this
Deed to be executed on its behalf by its duly authorized General
Partner as of the date first above written.
Grantor
DTC PARTNERS, LLC
(known of record as Loudoun-LSJJ
Partnership).
By Lerner
Enterprises, LLC, a Maryland
limited
liability company, its Authorized
Member
By: _______________________
______________,
Manager
COUNTY
OF )
) ss:
STATE
OF )
The foregoing instrument was acknowledged before
me this _______ day of __________, 200___, by ____________, a
Manager of Lerner Enterprises, LLC, a Member of DTC Partners, LLC
(known of record as Loudoun-LSJJ Partnership).
WITNESS my hand and Notarial Seal.
______________________________
Notary Public
My Commission
expires:
Exhibit A to Deed
[Legal Description]
Exhibit B to Deed
Permitted Exceptions
EXHIBIT C
[Form of Property Owners Association
Covenants]
DECLARATION
FOR
DULLES TOWN CENTER
DECLARATION
FOR
DULLES TOWN CENTER
TABLE OF CONTENTS
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Article
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|
Section
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Page
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|
Number
|
|
Number
|
Number
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1 GENERAL
PROVISIONS
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4
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1.1. Definitions
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4
|
|
1.2. Construction of Association
Documents
|
8
|
|
2 THE
ASSOCIATION
|
9
|
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2.1. Creation
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9
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2.2. Membership
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9
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2.3. Classes
of Members; Voting Rights
|
9
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|
2.4. Board
of Directors
|
10
|
|
3 EASEMENTS
|
10
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|
3.1. Utility and Development
Easements.
|
10
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|
3.2.
Release of Public Improvement Bonds
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10
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|
3.3. Proffered
Community Facilities
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10
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|
3.4. Community Facilities
Easements
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11
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|
3.5. Relocation.
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11
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|
3.6. Terms of Rights and
Easements.
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11
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|
3.7. Easement for Use of Common
Area
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12
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|
3.8. Reserved Common Area and Limited
Common Area
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13
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3.9. Land Submitted by Owners Other
Than the Declarant and Enforcement of
|
|
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Easements
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14
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4 EXPANSION/CONTRACTION
OF THE PROPERTY
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15
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|
4.1. Expansion by the
Declarant
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15
|
|
4.2. Expansion by the
Association
|
15
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|
4.3. Procedure for
Expansion
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15
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|
4.4. Withdrawal/Contraction
|
15
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|
5 SPECIAL
DECLARANT RIGHTS; TRANSFER
|
16
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5.1. Special Declarant
Rights
|
16
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5.2. Transfer of Special Declarant
Rights
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16
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6 COMMON
EXPENSES AND ASSESSMENTS
|
17
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|
6.1. Determination of Common Expenses
and Budget
|
17
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6.2. Purpose and Rate of
Assessment
|
18
|
|
6.4. Individual
Assessment
|
19
|
|
6.5. Liability for
Assessments
|
19
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|
6.6. Statement of Common
Expenses
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19
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|
6.7. Reserves.
|
20
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6.8. Late Fee
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20
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7 OPERATION
OF PROPERTY
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21
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7.1.
Maintenance Responsibilities
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21
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7.2. Lots
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22
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|
7.3. Maintenance
Standards.
|
23
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|
7.4. Disclaimer of
Liability.
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23
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7.5. Services to
Owners
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24
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8 USE,
REZONING AND OPERATION RESTRICTIONS
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24
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8.1. Use
Restrictions.
|
24
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|
8.2. Rezonings and Proffer
Amendments
|
24
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|
8.3. Operational
Restrictions.
|
24
|
|
8.4. Restriction on Further
Subdivision
|
25
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|
8.5. Leasing
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26
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|
8.6. Rules and
Regulations
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26
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|
8.7. Exclusion for the Declarant and
Designees of the Declarant
|
26
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|
9 ARCHITECTURAL
REVIEW
|
26
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|
9.1. Architectural Review
Committee.
|
26
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|
9.2. Initial
Construction
|
28
|
|
9.3. Compensation of the
Architectural Review Committee
|
29
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|
9.4. Additions, Alterations or
Improvements by the Owners
|
29
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10 INSURANCE
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30
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|
11 RECONSTRUCTION
AND REPAIR
|
31
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11.1. Casualty Damage on Common
Area
|
31
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11.2. Casualty Damage on
Lots
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31
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12 COMPLIANCE
AND DEFAULT
|
31
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12.1. Enforcement
Provisions
|
31
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|
12.2. Notice and
Hearing
|
32
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|
12.3. Lien
|
33
|
|
12.4. Subordination and Mortgagee
Protection.
|
33
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|
13 MORTGAGEES
|
34
|
|
13.1. Notice to Board of
Directors
|
34
|
|
13.2. Notices to
Mortgagees
|
34
|
|
13.3. Other Rights of
Mortgagees
|
34
|
|
14 AMENDMENT;
EXTRAORDINARY ACTIONS
|
35
|
|
14.1. Amendment by the
Declarant
|
35
|
|
14.2. Amendment by the
Association.
|
35
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|
14.3. Prerequisites to
Amendment
|
35
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15 TERMINATION
|
36
|
|
15.1. Duration; Termination by the
Association
|
36
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|
15.2. Prerequisites
|
36
|
|
|
|
|
SUBMITTED
LAND
|
EXHIBIT A
|
|
DESCRIPTION OF DULLES TOWN CENTER
COMMUNITY
|
EXHIBIT B
|
|
DESCRIPTION OF INITIAL COMMUNITY
FACILITIES EASEMENT
|
EXHIBIT C
|
DECLARATION
FOR
DULLES TOWN CENTER
THIS DECLARATION is made as of
____________ , 2008 by DTC PARTNERS, L.L.C., a Virginia
limited liability company, formerly Loudoun-LSJJ Partnership, a
Maryland general partnership ("Declarant") ("Landowner/Developer")
DTC NOKES, L.L.C., a Virginia limited liability company, DTC HOTEL
ONE, L.L.C., a Virginia limited liability company, DTC APARTMENTS
WEST, L.L.C., a Virginia limited liability company, 1 DULLES TOWN
CENTER, L.L.C., a Virginia limited liability company; DTC
APARTMENTS SOUTH, L.L.C., a Virginia limited liability company, and
DULLES TOWN CENTER OWNERS ASSOCIATION, a Virginia nonstock
corporation (“Association”)(“Community
Association”).
R E C I T A L S:
R-1. The Declarant and
DTC NOKES, L.L.C., DTC HOTEL ONE, L.L.C., DTC APARTMENTS WEST,
L.L.C., 1 DULLES TOWN CENTER, L.L.C., DTC APARTMENTS
SOUTH, L.L.C. , and DTC PARTNERS, L.L.C. (in its capacity as an
owner) (collectively, the "Owners") own the land designated as
Submitted Land in the legal descriptions attached hereto as Exhibit
A, and desire to subject such land to the covenants, restrictions,
reservations, easements, servitudes, liens and charges, all
as more particularly hereinafter set forth.
R-2. The Declarant and
the Owners deem it desirable and in the best interests of all the
owners of land subject to this Declaration to protect the value and
the desirability of such land by providing for the development of
such land in accordance with a common plan and the maintenance of
certain shared facilities.
R-3. To provide a means
for meeting the purposes and intents set forth in the Proffers (as
defined herein) and herein, the Declarant has caused Dulles Town
Center Owners Association to be incorporated under the laws of the
Commonwealth of Virginia.
NOW, THEREFORE, the Declarant the
Owners and the Association hereby covenant and declare, on behalf
of themselves and their respective successors and assigns, that
from the date this Declaration is recorded, the land designated as
Submitted Land in Exhibit A hereto shall be held, conveyed,
acquired and encumbered subject to the terms and
provisions hereof, all of which shall run with the land
(including all improvements thereon) and bind and inure to the
benefit of all Persons who may now or hereafter own or acquire any
right, title, estate or interest in or to any of such land, or who
may now or hereafter occupy or enter upon any portion thereof,
subject to the right of the Declarant, the Owners or the
Association to amend this Declaration from time to time in
accordance with the provisions for amendment set forth
herein.
P A R T O N E
ARTICLE 1
GENERAL PROVISIONS
Section
1.1. Definitions. Terms used herein without
definition shall have the meanings specified for such terms
in Section 13.1-803 of the Act. Capitalized terms used
herein shall have the meanings specified for such terms
below.
(1) "Act"
means the Virginia Nonstock Corporation Act, Chapter 10 of
Title 13.1 of the Code of Virginia (1950), as amended, supplemented
or replaced from time to time.
(2) "Architectural
Guidelines" means the guidelines established by the Declarant
during the Development Period, or adopted by the Board of Directors
pursuant to Article 9.
(3) "Architectural
Review Committee" means the Committee established pursuant to
Section 9.1.
(4) "Articles
of Incorporation" means the Articles of Incorporation for the
Association filed with the Virginia State Corporation
Commission, as amended from time to time.
(5) "Assessments"
means the sums levied against the Lots as provided in Article
6.
(6) "Association"
or “Community Association” means Dulles Town Center
Owners Association and, with respect to the rights and obligations
of the Association set forth in this Declaration, its successors
and assigns. "Subassociation" means any owners
association or condominium unit owners association subject to this
Declaration and governing some but less than all of the Property
pursuant to covenants recorded among the Land Records.
(7) "Association
Documents" means collectively, the Articles of Incorporation, this
Declaration, any applicable supplementary declaration, and the
Bylaws, all as amended from time to time. Any
exhibit, schedule, certification or amendment to an
Association Document is an integral part of that
document.
(8) "Board
of Directors" or "Board" means the executive and administrative
entity established by Article 5 of the Articles of Incorporation as
the governing body of the Association.
(9) "Bylaws"
means the Bylaws of the Association, as amended from time to
time.
(10) "Common
Area" means, at any given time, all of the Property (excluding
Lots) then owned by the Association. Land within the
Property is not Common Area solely because it is burdened by an
easement for utilities, landscaping, storm water management,
signage or trails or dedicated as a public street or roadway even
though the Association may maintain such areas. Common
Area may include, without limitation, property upon which Community
Facilities serving the Property or the Dulles Town Center Community
are located if such property is owned by the
Association.
(a) "Limited Common Area" means a
portion of the Common Area which has been designated pursuant to
Section 3.8 for the primary or exclusive (if specifically so
designated) use of Owners of one or more but less than all the
Lots.
(b) "Reserved Common Area" means a
portion of the Common Area for which the Board of Directors has
granted a revocable license for exclusive use pursuant to Section
3.8.
(13) "Common
Expenses" or “Community Common Expenses” means all
expenditures made by or on behalf of the Association, together with
all funds determined by the Board of Directors to be reasonably
necessary for the creation and maintenance of reserves pursuant to
the provisions of the Association
Documents. Except when the context clearly
requires otherwise any reference to Common Expenses includes
Limited Common Expenses. "Limited Common Expenses" means
all expenditures made by or on behalf of the Association and
benefiting one or more but fewer than all of the Owners and
assessed against the Lots owned by the Owners benefited pursuant to
Section 6.2(c).
(14) "Community"
or "Dulles Town Center Community" means the Property subject to
this Declaration as well as any other land being (or previously)
developed by the Declarant adjacent to such Property, including
without limitation, the Colonnade at Dulles Town Center residential
community and the Dulles Town Center Mall and surrounding retail
property.
(15) "Community
Facilities Easements" means, at any given time, the areas within
each Lot located within twenty-five feet of any lot boundary-line
adjacent to a public right-of-way or within fifteen feet of any lot
boundary-line located adjacent to another Lot or a private street
subject to a Community Facilities Easement pursuant to Section 3.4.
and all other easements granted for the benefit, use and enjoyment
of the Owners within the Dulles Town Center Community for
landscaping, street lights, signage, entry features, pedestrian
ingress and egress and storm water drainage management or use of
amenities or facilities (including Community
Facilities). "Community Facilities" means facilities
serving the Dulles Town Center Community including, without
limitation the storm water management facilities, ponds and
easements areas, landscaping (including associated irrigation
systems, if any), signage, (including entrance features), paths,
trails and sidewalks (including associated lighting or street
furniture), fencing, street lights and private
streets. Community Facilities shall also include,
without limitation, the community pool, pool house, tennis courts,
multi-purpose courts, play areas, trails and associated facilities
and amenities located adjacent to the Colonnade at Dulles Town
Center residential community. Subject to the provisions
of Section 3.3 hereof, Community Facilities shall also include the
clubhouse facility located within the Remington Apartment
community.
(16) "County"
means Loudoun, Virginia. All references to approval by the County
shall mean approval by the appropriate agency of the County, as
determined by the Office of the County Attorney at that
time.
(17) "Declarant"
or “Landowner/Developer” means DTC Partners, L.L.C. a
Virginia limited liability company, successor in interest to
Loudoun-LSJJ Partnership, a Maryland general
partnership. Following recordation of an instrument
assigning to another Person some or all of the rights reserved to
the Declarant under the Association Documents pursuant to Section
5.2, the term "Declarant" shall mean or include that
assignee.
(18) "Declaration",
means this Declaration for Dulles Town Center made by the Declarant
and recorded among the Land Records, and all amendments thereto,
except when the context clearly requires otherwise, all
"Supplementary Declarations."
"Supplementary Declaration"
means any declaration: (i) submitting land to the terms
of the Declaration and subjecting such land to the jurisdiction of
the Association, whether or not such Supplementary Declaration
contains additional provisions reflecting the unique
characteristics of the land being submitted; or (ii)
submitting a portion of the Property to such supplementary
covenants in accordance with the provisions of Article
4. A Supplementary Declaration may be part of a deed of
subdivision.
(19) “Developer
Control Period” means the period ending on the earliest of:
(i) the date the Declarant or related entities no longer own at
least ten percent of the total square footage of the land described
in Exhibit A attached hereto; or (ii) the date that the Declarant
notifies the Association that the Developer Control Period has
ended.
(20) "Development
Period" means the period of time when the Declarant is engaged in
development or sales or activities related thereto, anywhere on the
Property and the Declarant is entitled to exercise certain "Special
Declarant Rights" under the Association
Documents. Special Declarant Rights are described in
Article 5. The Development Period shall end on the
earlier of: (i) the date when all improvements for the
Submitted Land shown on the Development Plan are substantially
completed and all bonds filed by the Declarant and held by a
governmental agency with respect to the Submitted Land have been
released; or (ii) the date the Declarant provides the Association
written notice that the Development Period shall end.
(21) "Development
Plan" means the general development plan or site plan or plans for
the Dulles Town Center Community as approved by resolutions of the
Board of Supervisors of Loudoun County, Virginia and as amended
from time to time, including but not limited to ZMAP 86-53 and ZMAP
1990-0014. Although the Declarant may develop the
Submitted Land substantially in accordance with the Development
Plan and the Proffers, the Declarant reserves the right to modify
the Development Plan and the Proffers, subject only to the
requirements and procedures of the County.
(22) "Land
Records" means the land records of Loudoun County, Virginia, the
jurisdiction in which the Property is located.
(23) "Lot"
means a portion of the Property which is a separate subdivided lot
of record or any other parcel of Submitted Land held in separate
ownership (but not including the land designated as Common Area and
owned by the Association in fee simple, or land dedicated for
public street purposes), together with any improvements now or
hereafter appurtenant thereto. Lot shall also mean any
condominium unit created in accordance with Chapter 4.2 of Title 55
of the Code of Virginia (1950), as amended. The common elements of
any condominium or cooperative are appurtenances to the units and
are part of the Lot.
(a) “Civic
Lot” means a Lot upon which the improvements or
planned improvements are intended for use and occupancy for
primarily a public purpose and owned by a governmental or nonprofit
entity, including without limitation, churches, schools, fire and
rescue stations, police stations, libraries and
parks. If a Civic Lot is no longer used and occupied for
a public purpose, is no longer owned by a governmental or nonprofit
entity or is used for residential or commercial purposes, then such
Lot shall no longer be a Civic Lot and shall be treated as a
Multifamily Residential Lot or a Single Family Residential Lot,
Retail Lot or Commercial Lot, as may be appropriate.
(b) “Commercial
Lot” means a Lot upon which the improvements or
planned improvements are intended for use and occupancy for
primarily nonresidential purposes (other than retail) and, unless
otherwise specified, includes without
limitation Lots containing daycare
facilities, offices, industrial uses, commercial condominium units,
restaurants, hotels, golf courses (if any) or similar
uses
(c) “Multifamily
Residential Lot” means a Lot upon which the improvements or
planned improvements are intended for use and occupancy primarily
as a residence containing more than one dwelling and, unless
otherwise specified includes without limitation Lots containing
rental apartments or elderly congregate care facilities.
(d) “Retail
Lot” means a Lot upon which the improvements or planned
improvements are intended for use and occupancy for primarily
retail uses such as free-standing stores and shopping
centers.
(e) “Single
Family Residential Lot” means a Lot upon which the
improvements or planned improvements are intended for use and
occupancy as a residence containing only one dwelling and, unless
otherwise specified, includes without limitation Lots containing
residential condominium units, residential cooperative units or
semi-detached homes.
(f) "Undeveloped
Lot" means a Lot owned by the Declarant which does not contain a
building for which a certificate of occupancy or similar permit has
been issued.
(24) "Majority
Vote" means a simple majority (more than fifty percent) of the
votes entitled to be cast by Owners present in person or by proxy
at a duly held meeting of the Owners at which a quorum is
present. Any vote of a specified percentage of Owners
means that percentage with respect to the total number of votes
actually cast by Owners present in person or by proxy at a duly
held meeting of the Owners at which a quorum is
present. Any vote by a specified percentage of the Board
of Directors (or committee) means that percentage with respect to
votes entitled to be cast by directors (or committee members)
present at a duly held meeting of the Board (or committee) at which
a quorum is present. Any vote of or approval by a
specified percentage of the Mortgagees means a vote of or approval
(whether actual or presumed) by the Mortgagees calculated based on
the number of votes appertaining to each Lot (or the Owner of such
Lot) on which a Mortgage is held by a Mortgagee.
(25) “Member”
means an Owner or the Subassociation representing such
Owner.
(26) "Mortgagee"
means a lender holding a first mortgage or first deed of trust
("Mortgage") encumbering a Lot which has notified the Board of
Directors of its status in writing pursuant to Section 13.2 and has
requested in writing all rights of a Mortgagee under the
Association Documents. Where the approval of
Mortgagees is required, such approval means: (i) written
approval; (ii) any written waiver of approval rights; or (iii) a
letter stating no objection.
(27) "Officer"
means any person holding office pursuant to Article 6 of the
Bylaws.
(28) "Owner"
means one or more Persons who own a Lot in fee simple, but does not
mean Person having an interest in a Lot solely by virtue of a
contract or as security for an obligation. With
respect to Lots consisting of residential or commercial
condominiums, the Owner of such Lot shall be deemed to be the
condominium unit owners association for the purposes of voting and
approvals.
(29) "Person"
means a natural person, corporation, limited liability company,
partnership, association, trust or other entity capable of holding
title or any combination thereof.
(30) “Proffers"
means the proffers submitted with any zoning or rezoning
application applicable to the Dulles Town Center Community as
approved by the Board of Supervisors of Loudoun County, Virginia,
as amended from time to time. Although the Declarant may to develop
the Community substantially in accordance with the Development Plan
and the Proffers, the Declarant reserves the right to modify the
Development Plan and the Proffers, subject only to the requirements
and procedures of the County.
(31) "Property"
means, at any given time, the Submitted Land subject to this
Declaration, together with all improvements and appurtenances
thereto now or hereafter existing.
(32) "Reserved
Easement Areas" means areas within each Lot located within
twenty-five feet of any lot boundary-line adjacent to a public
right-of-way or within fifteen feet of any lot boundary-line
located adjacent to another Lot or a private street for which the
Declarant has reserved the right to use and grant easements for
development purposes.
(33) "Rules
and Regulations" means the rules and regulations governing
the use, occupancy, operation, Upkeep and physical appearance of
the Common Area and appearance of the Lots adopted from time to
time by the Board of Directors.
(34) "Submitted
Land" means the land designated as such in Exhibit A and all land
which is from time to time submitted to this Declaration,
(including Lots and Common Area).
(35) "Upkeep"
means care, inspection, maintenance, snow and ice removal,
operation, repair, repainting, remodeling, restoration,
improvement, renovation, alteration, replacement and
reconstruction, landscaping, lighting and signage.
Section 1.2. Construction
of Association Documents.
(a) Captions
and Cross-References. The captions are inserted only for
reference, and in no way define, limit or otherwise affect the
scope, meaning or effect of any provision. All
cross-references are to the Declaration unless otherwise
indicated.
(b) Pronouns. The
use of the masculine gender shall be deemed to include the feminine
and neuter genders, and the use of the singular shall be deemed to
include the plural and vice versa, whenever the context so
requires.
(c) Severability. Each
provision of an Association Document is severable from every other
provision, and the invalidity of any one or more provisions
shall not change the meaning of or otherwise affect any other
provision. To the extent that any provision of the
Association Documents is found to be overly broad or unenforceable
and a narrower or partially enforceable construction may be given
to such provision, then the narrower or partially enforceable
construction shall be applied and, to the extent lawful, the
provision shall be enforced.
(d) Interpretation. If
there is any conflict among the Association Documents, this
Declaration, and thereafter the applicable Supplementary
Declaration, shall control, except as to matters of compliance with
the Act, in which case the Articles of Incorporation shall
control. Particular provisions shall control general
provisions, except that a construction consistent with the
Act shall in all cases control over any
construction inconsistent
therewith. The provisions of the Bylaws shall control
over any conflicting provision of any rule, regulation or
other resolution adopted pursuant to any of the Association
Documents. The Association
Documents shall be construed
together. Any requirements as to the content of one
shall be deemed satisfied if the deficiency can be cured by
reference to any of the others. The easements granted and
reservations made herein or in any supplementary declaration shall
not terminate or merge and shall continue to run with the land,
notwithstanding the common law doctrine of merger and the common
ownership of the Property at this time by the Declarant
(e) Governing
Law. This Declaration shall be construed under Virginia
law; excluding its conflicts of law provisions.
(f) Conditions
on Approvals. Whenever the Declarant, the Association or
any Owner needs the approval of another Person under this
Declaration, such approval cannot be conditioned on the payment of
money, either directly or as processing or professional
fee. A Person granting such an approval is entitled,
however, to reimbursement or payment of all costs actually
incurred.
ARTICLE 2
THE ASSOCIATION
Section
2.1. Creation. The
Association is a nonstock corporation organized and existing
under the laws of the Commonwealth of Virginia, charged with the
duties and vested with the powers prescribed by law and set forth
in the Association Documents.
Section
2.2. Membership. Members
of the Association shall at all times be, and be limited to, the
Declarant (during the Development Period) and Persons who
constitute Owners of the Lots. If more than one Person
owns a Lot, then all of the Persons who own such Lot shall
collectively constitute one Owner. Each Person is
entitled to attend all meetings of the
Association. Membership in the Association is mandatory
and automatic with ownership of a Lot.
Section
2.3. Classes
of Members; Voting Rights. The Association shall have
the Classes of Members with the voting rights set forth in Article
4 of the Articles of Incorporation and as follows.
The Class A Members shall be all
Owners of Single Family Residential Lots or the Subassociations
representing such Owners. A Class A Member shall have
one vote for each square foot of land either owned by or governed
by such Member.
The Class B Members shall be the
Owners of Multifamily Residential Lots or the Subassociations
representing such Owners. A Class B Member shall have
one vote for each square foot of land either owned or governed by
such Member.
The Class C Members shall be the
Owners of Commercial Lots or the Subassociations representing such
Owners. A Class C Member shall have one vote for each
square foot of land either owned by or governed by such
Member.
The Class D Members shall be the
Owners of Retail Lots or the Subassociations representing such
Owners. A Class D Member shall have one vote for each
square foot of land either owned by or governed by such
Member.
The Class E Members shall be the
Owners of Civic Lots and shall have no vote.
The Class F Member shall be the
Declarant. During the Developer Control Period, the
Class F Member shall have twice as many votes as the number of
votes held by all other Classes of Members when a vote is
taken. Thereafter, for so long as the Declarant or its
related entities
owns any portion of the land
described on Exhibit A attached hereto, the Declarant shall have
one vote.
Section
2.4. Board
of Directors. Unless otherwise specifically provided in
the Act or the Association Documents, all rights, powers,
easements, obligations and duties of the Association may be
performed by the Board of Directors on behalf of the
Association.
ARTICLE 3
EASEMENTS
Section 3.1. Utility and
Development Easements.
(a) Utility
Easements. The right to use, grant and reserve easements
and licenses in the Common Area and the Reserved Easement Areas is
hereby reserved and/or granted to the Declarant, and the right to
use, grant and reserve easements and licenses in the Reserved
Easement Areas is hereby granted to the Association, for the
purposes of: (i) installation, construction and Upkeep
of equipment used to provide any utilities, including without
limitation water, sewer, drainage, gas, electricity, telephone and
television service, whether public or private; (ii) ingress and
egress to do such installation, construction and Upkeep; or (iii)
storm water management. Any easement or license rights
granted under this section are subject to the limitations of
Section 3.6.
(b) Development
Easements. Subject to Section 3.6, the Declarant
reserves an easement of ingress and egress over and use of any of
the Common Area or the Reserved Easement Areas for: (i) movement
and storage of building materials and equipment; (ii) temporary
slope and construction easements for making improvements (e.g.,
streets and utilities) in the Community.
Section
3.2.
Release of Public Improvement Bonds. The Declarant and
the Association are hereby granted a right to grant, vacate or
terminate easements on the Common Area or the Lots as may be
commonly required by any governmental agency or authority in
connection with the release of bonds held by the County in
connection with the acceptance of streets for public maintenance
with respect to the Community. Any rights granted
hereunder this Section are subject to the limitations in
Section 3.6.
Section
3.3. Proffered
Community Facilities. Pursuant to Proffer
XIII.33.A of the Proffers, as clarified by letter dated August 13,
2004 from the Loudoun County Zoning Administrator, the Declarant
has provided (i) a swimming pool, pool house and tennis courts
adjacent to the Colonnade at Dulles Town Center residential project
(shown as Land Bay P on the Development Plan), but specifically
excluding any facility, building or improvement owned by the
Colonnade Homeowners Association; and (ii) a clubhouse/community
building within the Remington Apartment project (shown as Land Bay
M on the Development Plan). The foregoing amenities
(collectively, the "Proffered Community Facilities") shall be
treated as Community Facilities for all purposes hereunder and as
required by the Proffers, will be available for use by all Owners
as well as residents of the Colonnade at Dulles Town Center
project. The Association may charge a membership fee or
similar user fee to residents or Owners who wish to use the
Proffered Community Facilities. The Association shall be
responsible for Upkeep of the Proffered Community Facilities
referenced in (i) above and the Owner of the Remington Apartment
project shall be responsible for the Upkeep of the Proffered
Community Facilities referenced in (ii) above unless such
responsibility has been assigned to and assumed by the Association
in a subsequent written instrument. The Declarant
reserves the right to reimburse the Owner of the Remington
Apartment project for the reasonable cost of Upkeep of the
Proffered Community Facilities referenced in (ii) above that is
attributable to the use of such
facilities by individuals other than
residents of the Remington Apartment project and any such
reimbursement shall be a Common Expense. The Declarant
reserves the right, in its sole discretion, to designate one or
more facilities in any other portion of the Dulles Town Center
project (each an “Alternate Proffered Facility”) to
satisfy the requirements of Proffer XIII.33.A or any other Proffer
or governmental requirement, and upon such designation, the
Alternate Proffered Facility shall automatically become a Proffered
Community Facility as defined above and shall be treated as a
Community Facility for all purposes under this
Declaration. Further, upon designation of an Alternate
Proffered Facility, the facility or amenity previously designated
as a Proffered Community Facility shall automatically cease to be a
Community Facility for all purposes hereunder.
Section
3.4. Community
Facilities Easements. The Owners hereby grant to the
Declarant and the Declarant hereby reserves to itself and its
successors and assigns easements over, beneath and through the
Common Area and any Lot: (i) within twenty-five feet of
any lot line adjacent to a public right-of-way; (ii) within fifteen
feet of any lot line adjacent to another Lot or a private street;
or (iii) where specifically designated as an easement on any plat
(including that plat attached as Exhibit C) for Community
Facilities, including without limitation for landscaping, signage,
entry features, street lights, paths, recreational facilities,
streets, trails or sidewalks or other facilities benefiting the
Dulles Town Center Community. The Community Facilities
Easements may be used for the purpose of construction,
installation, irrigation and Upkeep of landscaping features,
including without limitation plants, trees and earth berms and
other earth contouring and shall include access as necessary
to perform such tasks. Such easement area shall also be
available for installation, construction and Upkeep of entrance
features, project signage, street lights, street furniture, trails,
paths, recreational facilities, streets, sidewalks, fencing,
associated lighting and irrigation systems and utilities.
The