Exhibit 2.2
PUT/CALL AGREEMENT
This PUT/CALL AGREEMENT (this
“Agreement”) is entered into as of July 21, 2005
by and among Cabot Industrial Value Fund Manager, LLC, a
Massachusetts limited liability company (“Cabot GP”),
each of the limited partners of the Partnership listed on
Exhibit A to this Agreement (the “Non-REIT
LPs”) and Dividend Capital Trust Inc., a Maryland corporation
(“DCT”). A list of the defined terms used in this
Agreement and the sections of this Agreement where such terms are
defined is attached to this Agreement as Exhibit B .
Capitalized terms used in this Agreement and not otherwise
defined in this Agreement shall have the meanings ascribed to them
in the Merger Agreement.
RECITALS
WHEREAS, DCT, DCT Acquisition
Corporation, a Maryland corporation and a controlled affiliate of
DCT (“Acquisition Sub”), Capital Industrial Value
Fund, Inc., a Maryland corporation (“REIT LP”) and
Cabot GP have entered into an Agreement and Plan of Merger dated as
of June 17, 2005 (the “Merger Agreement”) whereby
Acquisition Sub will merge with and into REIT LP, with REIT LP
remaining as the surviving corporation controlled by DCT (such
merger transaction is referred to herein as the “Merger
Transaction”).
WHEREAS, contemporaneously with the
closing of the Merger Transaction (the “Closing”), the
Amended and Restated Limited Partnership Agreement of Cabot
Industrial Value Fund, L.P. (the “Partnership”) shall
be amended and restated in the form of the Second Amended and
Restated Limited Partnership Agreement attached as Exhibit M
to the Merger Agreement (as so amended and restated, the
“Partnership Agreement”), Cabot Industrial Value
Fund, Inc., a Maryland corporation which will be beneficially
owned by DCT following the closing of the Merger Transaction, shall
replace Cabot GP as the sole general partner of the Partnership,
with the general partner interest of Cabot GP converted to a
limited partner interest in the Partnership, and the Non-REIT LPs
shall continue to hold limited partnership interests in the
Partnership.
WHEREAS, as contemplated by the
Merger Agreement, the parties are entering into this Agreement to
set forth certain rights and obligations of the parties with
respect to the limited partnership interests in the Partnership
held by Cabot GP and the Non-REIT LPs following the Merger
Transaction.
NOW, THEREFORE, in consideration of
the foregoing recitals and the mutual agreements, covenants and
conditions contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties, the parties hereby agree as set
forth below.
1.
Put Option
.
1.1
At any time
during the period beginning April 1, 2006 through July 1,
2006 (the “Initial Put Period”), each of Cabot GP and
each Non-REIT LP (each an “Interest Holder”) shall have
the irrevocable right and option, by giving DCT a Put Notice (as
described below), to require DCT to purchase all (but not less than
all) of the Interest Holder’s limited partnership interests
in the Partnership for an amount equal to the Interest
Holder’s Initial Put Price (as
defined
below). Beginning on January 1, 2009, at any time during
the month of January in 2009 and in each calendar year
thereafter (the “Subsequent Put Periods”), each
Interest Holder shall have the irrevocable right and option, by
giving DCT a Put Notice, to require DCT to purchase all (but not
less than all) of the Interest Holder’s limited partnership
interests in the Partnership for an amount equal to the Interest
Holder’s Subsequent Put Price (as defined below).
As used herein, “Put Price” shall refer
to either the Initial Put Price or a Subsequent Put Price, as
applicable.
1.2
On the date of
sale designated in a Put Notice, the applicable Interest Holder
shall (a) sell, assign, convey, transfer and deliver to DCT
all of its limited partnership interests in the Partnership free
and clear of all pledges, security interests, adverse claims,
liens, restrictions and encumbrances (other than those set forth in
the Partnership Agreement, as then in effect) against payment
therefor of such Interest Holder’s Initial Put Price or
Subsequent Put Price, as applicable, (b) withdraw as a partner
of the Partnership and (c) execute and deliver all
instruments, agreements and other documents reasonably necessary to
effect the foregoing, including, without limitation, (x) a
certificate by such Interest Holder as of such date that the
representations and warranties in Section 7 with respect to
such Interest Holder and such limited partnership interest are true
and correct as of such date, (y) if such Interest Holder is not an
individual, a certificate by the secretary or other appropriate
Person of such Interest Holder as of such date as to (i) the
incumbency of its officers or other signatories,
(ii) authorizations relating to this Agreement, and
(iii) the organizational documents of such Interest Holder and
(z) if such Interest Holder is registered entity, a certificate of
good standing as of a recent date from the secretary of state of
its state of organization. DCT shall make payment in cash by
wire transfer of same day funds of the Initial Put Price or
Subsequent Put Price, as applicable, with respect to such Interest
Holder to the Interest Holders’ Representative (as defined
below) for distribution to such Interest Holder subject, however,
to adjustment as provided in Section 3 and 4. Upon
payment of an Interest Holder’s Initial Put Price or
Subsequent Put Price, as applicable, to the Interest Holders’
Representative, such Interest Holder shall cease to be, and shall
have no further rights or obligations as, a limited partner of the
Partnership, except the right to receive the Initial Put Price or
Subsequent Put Price, as applicable, obligations of Cabot GP to pay
the remaining balance owed under the “CSFB Agreement”
pursuant to Section 6.5 of the Partnership Agreement, and
confidentiality obligations pursuant to Section 12.12 of the
Partnership Agreement. If DCT GP requests, DCT shall set off
against the Initial Put Price or Subsequent Put Price, as
applicable, any amounts owed by such Interest Holder pursuant to
Section 6.5 of the Partnership Agreement subject, however, to
the right of the Interest Holders’ Representative to
reasonably approve the amount of such set off.
1.3
The Put Notice
shall designate the date of sale, which date shall be not less than
ten (10) Business Days and not more than fifteen
(15)
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Business Days
after DCT’s receipt of such Put Notice. The Put Notice
shall be delivered to DCT at the address provided in
Section 10.
1.4
The Initial Put
Price for each Interest Holder is the difference between
(a) the product of (i) Two Hundred Seventy Nine Million
Thirty Thousand Two Hundred and Fifty Dollars ($279,030,250.00),
multiplied by (ii) the Put/Call Payment Percentage for such
Interest Holder set forth in Exhibit A , minus
(b) the product of (i) $20,736,918.94, multiplied by
(ii) such Interest Holder’s Adjustment Pro Rata
Percentage. The Subsequent Put Price for each Interest Holder
shall equal the fair market value of the limited partnership
interest in the Partnership held by such Interest Holder as
determined pursuant to Section 6. Notwithstanding
anything to the contrary contained in this Agreement, there shall
be no adjustment to the Subsequent Put Price pursuant to Sections 3
or 4 of this Agreement.
1.5
Notwithstanding
the foregoing, DCT shall not be under any obligation to purchase an
Interest Holder’s limited partnership interest pursuant to a
Put Notice if any of the representations or warranties in
Section 7 of this Agreement with respect to such Interest
Holder or such limited partnership interest is in default in any
material respect.
2.
Call Option
2.1
At any time
during the period beginning April 1, 2007 through July 1,
2007 (the “Initial Call Period”), DCT shall have the
irrevocable right and option, by giving the Interest Holders’
Representative a Call Notice (as described below), to purchase all
(but not less than all) of the limited partnership interests in the
Partnership of all (but not less than all) of the Interest Holders
for an amount equal to the Interest Holders’ aggregate
Initial Call Prices (as defined below). Beginning on
January 1, 2009, at any time during the month of
January in 2009 and in each calendar year thereafter (the
“Subsequent Call Periods”), DCT shall have the
irrevocable right and option, by giving the Interest Holders’
Representative a Call Notice, to purchase all (but not less than
all) of the limited partnership interests in the Partnership of all
(but not less than all) of the Interest Holders for an amount equal
to the Interest Holders’ aggregate Subsequent Call Prices (as
defined below). As used herein, “Call
Price” shall refer to either the Initial Call Price or a
Subsequent Call Price, as applicable.
2.2
On the date of
sale designated in the Call Notice, each Interest Holder shall
(a) sell, assign, convey, transfer and deliver to DCT all of
its limited partnership interest in the Partnership, free and clear
of all pledges, security interests, adverse claims, liens,
restrictions and encumbrances (other than those set forth in the
Partnership Agreement, as then in effect), against payment therefor
of such Interest Holder’s Initial Call Price or Subsequent
Call Price, as applicable, (b) withdraw as a partner of the
Partnership and (c) execute and deliver all instruments,
agreements and other documents reasonably necessary to effect the
foregoing, including, without limitation, (x) a
certificate
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by such Interest
Holder as of such date that the representations and warranties in
Section 7 with respect to such Interest Holder and such
limited partnership interest are true and correct as of such date,
(y) if such Interest Holder is not an individual, a certificate by
the secretary or other appropriate person of such Interest Holder
as of such date as to (i) the incumbency of its officers or
other signatories, (ii) authorizations relating to this
Agreement, and (iii) the organizational documents of such
Interest Holder and (z) if such Interest Holder is registered
entity, a certificate of good standing as of a recent date from the
secretary of state of its state of organization. DCT shall
make payment in cash by wire transfer of same day funds of the
Initial Call Price or Subsequent Call Price, as applicable, to the
Interest Holders’ Representative (as defined below) for
distribution to the applicable Interest Holder. Upon payment
of the Interest Holder’s Initial Call Price or Subsequent
Call Price, as applicable, to the Interest Holders’
Representative, such Interest Holder shall cease to be, and shall
have no further rights or obligations as, a limited partner of the
Partnership, except the right to receive the Initial Call Price or
Subsequent Call Price, as applicable, obligations of Cabot GP to
pay the remaining balance owed under the “CSFB
Agreement” pursuant to Section 6.5 of the Partnership
Agreement, and confidentiality obligations pursuant to
Section 12.12 of the Partnership Agreement. If DCT GP
requests, DCT shall set off against the Initial Call Price or
Subsequent Call Price, as applicable, any amounts owed by such
Interest Holder pursuant to Section 6.5 of the Partnership
Agreement subject, however, to the right of the Interest
Holders’ Representative to reasonably approve the amount of
such set off.
2.3
The Call Notice
shall designate the date of sale, which date shall be not less than
ten (10) Business Days and not more than fifteen (15) Business
Days after the Interest Holders’ Representative’s
receipt of such Call Notice. The Call Notice shall be
delivered to the Interest Holders’ Representative at the
notice address provided in Section 10.
2.4
The Initial Call
Price for the limited partnership interest of each Interest Holder
shall be equal to the product of (A) the Initial Put Price
(prior to any adjustment pursuant to Sections 3 or 4) multiplied by
(B) one (1) plus the percentage increase, if any, in the
Consumer Price Index – All Urban Consumers, All Items,
published by US Department of Labor, Bureau of Labor
Statistics, for the most recent twelve
month period that is available on April 1, 2007 (the
“Call Adjuster”); provided, that the Call Adjuster
shall in no event be less than 1.025 or greater than 1.035.
The Initial Call Price as so determined shall be subject to
adjustment as provided in Sections 3 and 4. The Subsequent
Call Price for each Interest Holder shall equal the fair market
value of the limited partnership interest in the Partnership held
by such Interest Holder as determined pursuant to
Section 6. Notwithstanding anything to the contrary
contained in this Agreement, there shall be no adjustment to any
Subsequent Call Price pursuant to Sections 3 or 4 of this
Agreement.
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2.5
Notwithstanding
the foregoing, DCT shall not be under any obligation to purchase an
Interest Holder’s limited partnership interest pursuant to a
Call Notice if any of the representations or warranties in
Section 7 of this Agreement with respect to such Interest
Holder or such limited partnership interest is in default in any
material respect.
3.
Adjustments to Put Price/Call
Price; Other Payments to Interest Holders
3.1
Upon the
determination of the Closing Pro-Rated Adjustment in accordance
with Section 1.8(d) of the Merger Agreement, in the event
the Closing Pro-Rated Adjustment is different from the Estimated
Pro-Rated Adjustment (excluding in such case leasing commissions,
tenant improvement costs and capital improvements required under
leases that are allocated according to Sections 1.8(g)(v) and
1.8(g)(vi) of the Merger Agreement), each Interest
Holder’s Initial Put Price or Initial Call Price, as
applicable, shall be appropriately adjusted by an amount equal to
the difference between such amounts, multiplied by such Interest
Holder’s Adjustment Pro Rata Percentage as set forth on
Exhibit A (with respect to each Interest Holder, the
“Adjustment Pro Rata Percentage”). If pursuant to
Section 1.8(d) of the Merger Agreement there is an
adjustment in favor of the Stockholders under the Merger Agreement,
then the adjustment pursuant to this Section 3.1 shall result
in an increase in each Interest Holder’s Initial Put Price or
Initial Call Price, as applicable, calculated in accordance with
the preceding sentence, and if the adjustment pursuant to
Section 1.8(d) of the Merger Agreement is in favor of the
Buyer under the Merger Agreement, then the adjustment pursuant to
this Section 3.1 shall be in the form of a decrease in each
Interest Holder’s Initial Put Price or Initial Call Price, as
applicable, calculated in accordance with the preceding
sentence. If there is a sale pursuant to a Put Notice or Call
Notice prior to the determination of the Closing Pro-Rated
Adjustment in accordance with Section 1.8(d) of the
Merger Agreement and the Closing Pro-Rated Adjustment is different
from the Estimated Pro-Rated Adjustment when the same is finally
determined, then within three (3) Business Days following such
determination, DCT and the applicable Interest Holder shall
appropriately adjust for such difference either (i) if there
is an adjustment in favor of DCT, by jointly authorizing and
directing the Escrow Agent to pay to DCT within three
(3) Business Days following delivery of such authorization an
amount equal to the product of (A) the difference between such
amounts multiplied by (B) such Interest Holder’s
Adjustment Pro Rata Percentage, and (ii) if there is an
adjustment in favor of the Interest Holder, by DCT paying to the
Interest Holders’ Representative, for payment to such
Interest Holder, the product of (A) the difference between
such amounts, multiplied by (B) such Interest Holder’s
Adjustment Pro Rata Percentage, by wire transfer of immediately
available funds.
3.2
Upon the
determination of the Closing Adjusted Working Capital in accordance
with Section 1.8(c) of the Merger Agreement, (i) in
the event the Closing Adjusted Working Capital minus the Closing
Total Debt, is
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less than the
Estimated Closing Adjusted Working Capital minus the Estimated
Total Debt, each Interest Holder’s Initial Put Price or
Initial Call Price, as applicable, shall be reduced by an amount
equal to the product of (A) the difference between such
amounts, multiplied by (B) the applicable Interest
Holder’s Adjustment Pro Rata Percentage, and (ii) in the
event that the Closing Adjusted Working Capital minus the Closing
Total Debt is greater than the Estimated Closing Adjusted Working
Capital minus the Estimated Total Debt, the applicable Interest
Holder’s Initial Put Price or Initial Call Price, as
applicable, shall be increased by the product of (A) the
difference between such amounts, multiplied by (B) the
Interest Holder’s Adjustment Pro Rata Percentage.
3.3
If as of the date
of sale of limited partnership interests in the Partnership
pursuant to a Put Notice or Call Notice, the Partnership has
undistributed Operating Cash Flow or undistributed Net Capital
Proceeds (each as defined in the Partnership Agreement),
undistributed proceeds from the sale of the Helen Street Property
or the Baltimore Property or from a final judgment in or settlement
of the litigation involving the Helen Street Rent Escrow and/or the
Helen Street Improvements Escrow (as each such terms are defined in
the Partnership Agreement), or undistributed collected rent from
the tenant of the Baltimore Property for the period prior to
June 1, 2006, then the applicable Interest Holder’s
Initial Put Price or Initial Call Price, as applicable, shall be
increased by an amount equal to the product of (A) the
aggregate amount of such undistributed Operating Cash Flow, Net
Capital Proceeds, proceeds from the sale of such Helen Street
Property or Baltimore Property or from such final judgment or
settlement or such undistributed collected rent, multiplied by
(B) in the case of undistributed Operating Cash Flow or
undistributed Net Capital Proceeds, the Percentage (as defined in
the Partnership Agreement) of the applicable Interest Holder, and
in the case of undistributed proceeds from the sale of such Helen
Street Property or Baltimore Property, from a final judgment in or
settlement of the litigation involving the Helen Street Rent Escrow
and/or the Helen Street Improvements Escrow or such undistributed
collected rent, the amount of such proceeds or rent that would be
distributed to such Interest Holder if 100% of such proceeds were
distributed pursuant to Sections 6.3 and 6.4 of the Partnership
Agreement. If, as of the date of any sale pursuant to a Put
Notice or Call Notice, the Partnership has entered into a binding
contract for the sale of the Helen Street Property or Baltimore
Property that, if and when consummated, would give rise to a
distribution requirement to the applicable Interest Holder pursuant
to Section 6.3 or 6.4 of the Partnership Agreement, but has
not closed on such sale then, upon the consummation of such sale,
DCT shall pay to the Interest Holders’ Representative for
distribution to the applicable Interest Holder the amount that
would have been distributed to such Interest Holder pursuant to
Section 6.3 or 6.4 of the Partnership Agreement if such
Interest Holder had still been a partner in the Partnership and
100% of such proceeds from such sale were distributed at such
time. In addition to the foregoing:
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a)
If following any sale pursuant to a
Put Notice or Call Notice but prior to that date which is three
(3) years after the date of this Agreement, the Partnership
receives a final judgment in or settlement of the litigation
involving the Helen Street Rent Escrow and/or the Helen Street
Improvements Escrow or collects rent from the tenant at the
Baltimore Property for the period prior to June 1, 2006, then
DCT shall promptly pay to the Interest Holders’
Representative for distribution to the applicable Interest Holder
the amount of the proceeds from such judgment or settlement or such
collected rent that would have been paid to such Interest Holder
pursuant to Section 6.3 or Section 6.4 of the Partnership
Agreement if such Interest Holder had still been a partner in the
Partnership and 100% of such proceeds were distributed at such
time; and
(b)
if following any sale pursuant to
any Put Notice or Call Notice but prior to that date which is
twelve (12) months after the date of this Agreement there is a sale
of the Baltimore Property that would have resulted in a
distribution to the applicable Interest Holder pursuant to
Section 6.4 of the Partnership Agreement if such Interest
Holder had continued to be a limited partner in the Partnership,
then DCT shall promptly pay to the Interest Holders’
Representative for distribution to such Interest Holder an amount
equal to the distribution that such Interest Holder would have
received pursuant to Section 6.4 of the Partnership Agreement
if such Interest Holder had still been a partner in the Partnership
and 100% of such proceeds were distributed at such time.
3.4
If there is a
sale of any Seller Property (including, without limitation, the
Baltimore Property and the Helen Street Property), then each
Interest Holder’s Initial Put Price or Initial Call Price, as
applicable, shall be decreased to the extent that the proceeds
distributed to such Interest Holder from such sale pursuant to the
Partnership Agreement exceed such Interest Holder’s share of
the excess of such proceeds over the value allocated to such Seller
Property by Buyer in good faith in connection with the Merger
Agreement (which allocations Buyer has provided to Seller prior to
the date of this Agreement.)
3.5
If DCT is
obligated under the Merger Agreement to make a payment to the
Seller Representative after the date hereof pursuant to
Section 1.14(c) of the Merger Agreement as a result of
its acquisition of the Seattle Property, then the Initial Put Price
or Initial Call Price, as applicable, of each Interest Holder shall
be increased by an amount equal the product of (i) the amount
set forth in clause (A) of the last sentence of such
Section 1.14(c) of the Merger Agreement, multiplied by
(ii) such Interest Holder’s Adjustment Pro Rata
Percentage.
3.6
To the extent
that any lease described in Exhibit K to the Merger
Agreement that was not executed as of the date hereof is
subsequently executed by the applicable tenant and the Partnership
or a subsidiary or other transferee affiliate of DCT on
substantially the same terms as set forth in such
Exhibit K for such lease and the payment of rent under
such lease commenced
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within the number
of months set forth in such Exhibit K for such lease,
then the Initial Put Price or Initial Call Price, as applicable, of
each Interest Holder shall be increased by an amount equal to the
product of (i) the monthly rent shown on such
Exhibit K for such lease multiplied by (ii) the
difference between (x) the number of months set forth for such
lease in such Exhibit K and (y) the number of months
(or portions of months) that have expired since the date hereof
prior to the commencement of payment of rent multiplied by
(iii) such Interest Holder’s Adjustment Pro Rata
Percentage.
3.7
If DCT becomes
obligated under the Merger Agreement to make a payment to the
Seller Representative pursuant to Section 1.8(f) of the
Merger Agreement as a result of the collection of Uncollected
Tenant Payments, then (i) to the extent that an Interest
Holder continues to be a limited partner in the Partnership, such
Interest Holder’s Initial Put Price or Initial Call Price, as
applicable, shall be increased by an amount equal to the product of
(A) such Uncollected Tenant Payments that are collected and
(B) such Interest Holder’s Adjustment Pro Rata
Percentage, and (ii) to the extent that an Interest Holder has
sold its limited partnership interest pursuant to a Put Notice or a
Call Notice, DCT will be obligated to promptly pay to the Interest
Holders’ Representative, for payment to such Interest Holder,
an amount equal to the product of (A) such Uncollected Tenant
Payments that are collected and (B) such Interest
Holder’s Adjustment Pro Rata Percentage.
4.
Put/Call Escrow
Agreement
4.1
Section 9 of
this Agreement provides that DCT is entitled to indemnification
from and against certain Losses (as defined in
Section 9.2). Prior to the sale of a limited partnership
interest of an Interest Holder pursuant to a Put Notice by such
Interest Holder or a Call Notice by DCT, any indemnification
amounts to which DCT is entitled with respect to such Interest
Holder pursuant to Section 9.2 shall be subtracted from the
Initial Put Price or the Initial Call Price.
4.2
If at the time of
a sale of a limited partnership interest of an Interest Holder
pursuant to a Put Notice or a Call Notice there is the possibility
of continuing adjustments to the Initial Put Price or Initial Call
Price, as applicable, pursuant to Section 3.1 and/or
continuing indemnification obligations pursuant to
Section 9.2, the Interest Holders’ Representative and
DCT shall enter into an escrow agreement with the Escrow Agent in
the form attached hereto as Exhibit D (the
“Put/Call Escrow Agreement”) providing for the
formation of an escrow fund.
4.3
The amount of the
payment to an Interest Holder in connection with a sale of a
limited partnership interest pursuant to a Put Notice or a Call
Notice shall be reduced by an amount equal to the difference
between (A) such Interest Holder’s Adjustment Pro Rata
Percentage of the Put/Call Escrow Amount and (B) the sum of
(x) any indemnification amounts subtracted
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from such
Interest Holder’s Initial Put Price or Initial Call Price, as
applicable, pursuant to Section 4.1 and (y) if there is any
Put/Call Post-Closing Adjustment Escrow Amount, any amounts
subtracted from such Interest Holder’s Initial Put Price or
Initial Call Price, as applicable, pursuant to Sections 3.1 and 3.2
prior to the date of sale of such Interest Holder’s limited
partnership interest pursuant to such Call Notice or Put
Notice. The reduction amount equal to the difference between
(A) and (B) of the foregoing sentence shall be deposited
into escrow pursuant to the Put/Call Escrow Agreement.
4.4
The following
terms as used in Agreement shall have the meanings set forth
below.
4.4.1
The
“Put/Call Post-Closing Adjustment Escrow Amount” for
each Interest Holder shall mean the product of (A) the amount
mutually agreed upon by Buyer and Seller in accordance with
Section 5.12 of the Merger Agreement, multiplied by
(B) such Interest Holder’s Adjustment Pro Rata
Percentage (together with any interest earned on such product while
held in escrow), which, in addition to the Put/Call Indemnification
Escrow Amount, shall secure and serve as the sole and exclusive
remedy for satisfying DCT ‘s rights to payments under
Section 3. Notwithstanding the foregoing, there shall be
no Put/Call Post-Closing Adjustment Escrow Amount if there is no
possibility of continuing adjustments to the Initial Put Price or
Initial Call Price, as applicable, pursuant to
Section 3.1.
4.4.2
The
“Put/Call Indemnification Escrow Amount” for each
Interest Holder shall mean the product of (A) Five Million
Dollars ($5,000,000) multiplied by (B) such Interest
Holder’s Adjustment Pro Rata Percentage (together with any
interest earned on such product while held in escrow), which shall
secure and serve as the sole and exclusive remedy for satisfying
DCT ‘s rights to payments under Section 9.2 of this
Agreement and, in addition to the Put/Call Post-Closing Adjustment
Escrow Amount, for satisfying DCT ‘s rights to payments under
Section 3.
4.4.3
The
“Put/Call Escrow Amount” means, collectively the
Put/Call Post-Closing Adjustment Escrow Amount and the Put/Call
Indemnification Escrow Amount.
5.
Interest Holders’
Representative
5.1
Cabot GP
shall serve as
the representative of the Interest Holders with respect to matters
arising after the date hereof in connection with all matters
arising under or related to this Agreement including, without
limitation, the post-closing adjustments set forth in
Section 3, the indemnification rights and obligations set
forth in Section 9, and matters arising under or relating to
the Put/Call Escrow Agreement (in such capacity, the
“Interest Holders’ Representative”). The
Interest Holders’ Representative shall have all of the rights
and shall perform all of the obligations of the Interest
Holders’ Representative as set forth in the Put/Call Escrow
Agreement and this Agreement. Without limiting the foregoing,
the Interest Holders’ Representative shall have the exclusive
right, power and authority, on behalf of the Interest Holders, (w)
to take any actions the Interest Holders’ Representative may
deem
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necessary or
proper on behalf of the Interest Holders in connection with the
post-closing adjustments pursuant to Section 3, (x) to pursue,
defend, and settle any indemnification claims made pursuant to
Section 9, and to do all things and to take all other actions
the Interest Holders’ Representative may consider necessary
or proper to resolve any indemnification claims, (y) to
consent to the sale of the Helen Street Property without retaining
an interest in the Helen Street Rent Escrow or Helen Street
Improvements Escrow, and (z) give and receive all notices, make all
decisions and take all other actions on behalf of the Interest
Holders in connection with this Agreement.
5.2
All decisions and
actions by the Interest Holders’ Representative pursuant to
its authority granted herein shall be binding upon each Interest
Holder and no Interest Holder shall have any right to object,
dissent, protest or otherwise contest the same. DCT shall be
entitled to deal with and rely conclusively on the Interest
Holders’ Representative as provided herein as if, and with
the same effect as if, the Interest Holders’ Representative
constituted all Interest Holders and DCT shall not be under any
obligation to involve itself with the Interest Holders’
Representative’s performance for the benefit of the Interest
Holders or the Interest Holders’ relationship among
themselves.
5.3
The Interest
Holders’ Representative shall have full power and authority
on behalf of each Interest Holder to take any and all actions,
execute any and all instruments (other than the instruments,
agreements, certificates and documents delivered pursuant to
Sections 1.2, 2.2 and 10.13 of this Agreement, which shall be
executed by the applicable Interest Holder), and execute or waive
any and all rights and obligations of each Interest Holder in
connection with the matters covered by Section 3,
Section 4 and Section 9.2 and all other matters arising
under or relating to this Agreement. The Interest
Holders’ Representative at all times shall be the same Person
as the Seller Representative. No bond shall be required of
the Interest Holders’ Representative, and the Interest
Holders’ Representative shall receive no compensation for its
services in such capacity. Notices or communications to or
from the Interest Holders’ Representative shall constitute
notice to or from each of the Interest Holders. The Interest
Holders’ Representative shall have reasonable access to
information about the Partnership, provided that the Interest
Holders’ Representative shall treat confidentially and not
disclose the Seller Rent Roll and other lease information related
to the Seller Properties to anyone (except on a need to know basis
to individuals who agree to treat such information confidentially
or in connection with any arbitration or other dispute resolution
proceeding).
5.4
DCT shall make
payment of all amounts to be paid to the Interest Holders under
this Agreement to the Interest Holders’ Representative for
distribution to the Interest Holders. DCT’s sole
obligation with respect to the payment of amounts under this
Agreement shall be to pay such amounts to the Interest
Holders’ Representative, and the Interest Holders shall look
solely to the
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Interest
Holders’ Representative for payment thereof following such
payment by DCT.
6.
Determination of Fair Market
Value for Subsequent Put Price . If a Subsequent Put Price or a
Subsequent Call Price is to be determined pursuant to this
Agreement, then DCT and the Interest Holders’ Representative
shall attempt to agree on the fair market value of the applicable
limited partnership interests in the Partnership in connection
therewith. If the Interest Holders’ Representative and
DCT fail to agree on such fair market value within ten
(10) Business Days after a request from the other that they
attempt to agree on such fair market value, such fair market value
shall be determined by a single appraiser satisfactory to both the
Interest Holders’ Representative and DCT, if they are able to
agree to such an appraiser within ten (10) Business Days after
the request of the Interest Holders’ Representative and
DCT. If no single appraiser is so selected, the Interest
Holders’ Representative and DCT shall each appoint an
independent appraiser who has at least ten (10) years’
experience appraising comparable interests in partnerships that own
industrial real estate and who is not then employed or anticipated
to be employed, and who during the last three years has not been
employed, by the party selecting the appraiser or any affiliate
thereof, and in the case of the third appraiser contemplated below,
either such party or any affiliate thereof. The two
appraisers so appointed shall thereafter appoint a third appraiser
within ten (10) Business Days after their appointment who
meets the same qualifications. If they fail to do so, the
Interest Holders’ Representative and DCT may request that the
head of a recognized professional association of real estate
appraisers designate a third appraiser with such
qualifications. The three appraisers so appointed shall
within thirty (30) days thereafter render their judgment as to the
fair market value of the applicable limited partnership
interests. If the Interest Holders’ Representative
fails to select an appraiser within ten (10) Business Days
after the request by DCT that it do so, the fair market value of
the applicable limited partnership interests shall be the fair
market value as determined by an appraiser who meets the
qualifications stated above and who is selected solely by
DCT. If DCT fails to select an appraiser within ten
(10) Business Days after the request by the Interest
Holders’ Representative that it do so, the fair market value
of the applica
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