Exhibit 10.1
AGREEMENT OF
SALE
THIS AGREEMENT OF
SALE (this “Agreement”), made this 2
nd
day of June, 2008
(the “Effective Date”), by and between MS Plant, LLC, a
California limited liability company (hereinafter called
“Seller”), and Green Mountain Coffee Roasters, Inc., a
Delaware corporation (hereinafter called
“Buyer”).
W I T N E S S E T H
:
For and in consideration of the
mutual undertakings contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby mutually acknowledged, the parties hereto, intending to be
legally bound hereby, agree as follows:
. Property .
(a) Seller hereby agrees to sell and
convey to Buyer who agrees to purchase, all that certain lot, piece
or parcel of ground (the “Land”), together with the
improvements located thereon (the “Improvements”),
situated in KNOXVILLE, TENNESSEE, and known as 3109 Water Plant
Road, consisting of an approximately 334,000 square foot facility
on approximately 31 acres of land, said lot, piece or parcel being
more particularly described on Exhibit “A” attached
hereto and made a part hereof, together with all appurtenances,
easements and other rights and privileges in any way pertaining or
beneficial to the Land or Improvements including all right, title
and interest of the Seller in and to any streets or ways adjoining
the Land (the Land, Improvements and such appurtenances, easements
and privileges being collectively referred to herein as the
“Property”).
(b) The sale set forth in this
Agreement shall also include (i) the furniture, fixtures,
machinery, equipment and systems which are located in or on the
Improvements and listed on the attached Exhibit “B”
(collectively, the “Furniture, Fixtures and
Equipment”); (ii) all certificates, licenses, permits,
authorizations and approvals issued for or with respect to the
Property by governmental and quasi-governmental authorities having
jurisdiction (collectively, the “Licenses, Permits and
Approvals”), to the extent transferable; and (iii) all
contracts and agreements relating to the management, operation,
servicing and/or maintenance of the Property, to the extent Buyer
elects to assume the same as provided herein
(“Contracts”).
. Purchase Price . The total
consideration and purchase price (the “Purchase
Price”), which Buyer agrees to pay to Seller and which Seller
agrees to accept for the Property, is TEN MILLION FIVE HUNDRED
THOUSAND AND 00/100 DOLLARS ($10,500,000.00), payable as
follows:
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Certified check or federally wired funds within
two (2) business days of signing of this Agreement (the
“First Deposit”)
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$
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150,000.00
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Certified check or federally wired funds on the
fifth (5 th
) day following the expiration
of the Due Diligence Period (as hereinafter defined) (the
“Second Deposit”)
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$
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250,000.00
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Cash, certified check or federally wired funds
at Settlement (as hereinafter defined)
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$
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10,100,000.00
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TOTAL
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$
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10,500,000.00
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The First Deposit and the Second
Deposit (collectively, the “Deposits”) shall be paid to
LandAmerica Commercial Services (hereinafter, the
“Agent”) and shall be placed in an interest bearing
escrow account by the Agent according to Buyer’s direction
and the terms of that Escrow Agreement attached hereto as Exhibit
“C”. The Deposits shall be applied to the Purchase
Price at Settlement. All interest accrued on the Deposits will be
paid to Buyer at Settlement or upon the earlier termination of this
Agreement, unless such termination shall be as a result of
Buyer’s default as finally determined by a court of competent
jurisdiction after all appeals, in which event all accrued interest
shall be paid to Seller. In the event the Agent incurs wiring fees,
such fees shall be charged to Buyer. Subject to Section 3(b)
below, the Deposits shall become non-refundable at the expiration
of the Due Diligence Period (hereinafter defined) if this Agreement
has not been terminated prior to that date by the Buyer.
Buyer’s Federal Tax I.D.
Number # 03-0339228
Seller’s Federal Tax I.D.
Number # 20-8874068
. Title .
(a) Buyer’s obligation to
close this transaction shall be conditioned upon, at Settlement,
title to the Property being good and marketable and insurable at
regular rates by a title insurance company selected by Buyer
licensed to do business in the State of Tennessee (the “Title
Company”), free and clear of all liens, encumbrances, and
restrictions other than the following (the “Permitted
Exceptions”): (i) the lien of real estate taxes, water
and sewer charges that are not due and payable on the Settlement
Date, (ii) the standard exclusions, conditions and
stipulations contained in the Title Commitment (as hereinafter
defined) acceptable to Buyer, and (iii) easements, privileges,
licenses or rights of public utility or public service companies
acceptable to Buyer.
(b) If Seller is unable to convey
title in the quality set forth above, Buyer shall have the option
of either (i) taking such title as Seller can give, without
abatement of the Purchase Price, or (ii) being repaid the
Deposits and all other moneys paid on account by Buyer to Seller or
the Agent (together with accrued interest, if any), and Buyer shall
also be reimbursed for any Title Company and surveyor charges
incurred and, if Buyer elects the option in Section 3(b)(ii),
there shall be no further liability or obligation by either of the
parties hereunder and this Agreement shall become null and void and
of no force or effect (except for this Section 3), and all
copies of this Agreement shall be returned to Seller for
cancellation.
. Representations and
Warranties .
Seller represents, warrants and
covenants to and with the Buyer that: (a) there exists no
notice of an uncorrected deed restriction or violation of the
housing, building safety or fire ordinances which have been
received by Seller; (b) no litigation or governmental
proceeding is pending or, to the best of Seller’s knowledge,
threatened against or involves the Property or Seller which might
adversely affect the Property or the ability of Seller to perform
its obligations under this Agreement; (c) the Property is not
in a designated wet land, floodplain, or flood insurance area;
(d) the Property does not contain any asbestos,
ureaformaldehyde foamed-in-place insulation, polychlorinated
biphenyl or any other hazardous, dangerous or toxic materials or
other substances, the release or disposal of which is regulated by
any law, regulation, code or ordinance, including, without
limitation, the Comprehensive Environmental Response, Compensation
and Liability Act, as amended, and the Property has not been used
for the production,
processing, burial, storage (including inground
storage tanks), disposal or release of hazardous materials;
(e) no assessments for public improvements have been made
against the said Property which remain unpaid, and (f) Seller
has no knowledge of, nor has it received any notification from any
governmental agency or other institution concerning any pending
public improvement or of the proposed exercise of, or offer to
purchase under, the power of eminent domain relative to any part of
the Property or requiring any alteration or other work thereon that
has not been satisfactorily made. The foregoing representations
shall survive the Settlement and the Seller shall indemnify and
hold the Buyer harmless from any breach thereof, including
attorney’s fees and costs, whether such breach is discovered
or asserted before or after the Settlement.
Except as expressly stated in this
Agreement including, without limitation, the representations and
warranties set forth above, the Property is being purchased on an
“AS-IS” and “WHERE-IS” basis and has been
or will be inspected by Buyer or Buyer’s duly authorized
agent.
. Settlement .
(a) Settlement shall be made on or
before fifteen (15) days following the expiration of the Due
Diligence Period (the “Settlement Date”) at 10:00 a.m.
(prevailing time) at the office of the Title Company, unless Seller
and Buyer agree in writing to a different time and place (the
“Settlement”). The date and time of Settlement is
hereby agreed to be of the essence of this Agreement.
(b) Realty taxes, water and sewer
rentals, and any other items or charges which are properly
apportionable under local law or custom shall be apportioned on a
per diem basis pro rata as of the date of Settlement.
(c) State and local realty transfer
taxes, if any, applicable to the sale set forth in this Agreement
shall be equally divided and half of each paid by Seller and
Buyer.
(d) Possession of the Property is to
be delivered by executed Deed (defined below) and keys at the time
of Settlement. Said Deed shall be prepared by Seller or
Seller’s attorney or the Title Company and the acknowledgment
and recording fees paid by Buyer. Except as otherwise set forth in
this Agreement, Buyer and Seller shall each pay one-half of the
Title Company charges and the Agent charges. A survey, if required
or desired, is to be obtained by, and at the sole expense of,
Buyer; provided, however, that if a survey of the Property is
required by the Title Company in order to prepare a legal
description of the Property that will satisfy the requirements of
the recorder of deeds office in and for the county in which the
Property is located, Seller shall pay for the cost of the survey.
Seller shall submit to Buyer a copy of the Deed at least fifteen
(15) days prior to the time fixed for Settlement. Buyer shall
submit to Seller a duplicate copy of the title report issued by the
Title Company insuring the title for Buyer and a copy of the
survey, if ordered, at least fifteen (15) days prior to the
time fixed for Settlement.
(e) Without limitation to other
conditions set forth in this Agreement, and notwithstanding
anything contained herein to the contrary, Buyer’s obligation
to close hereunder is expressly contingent upon the satisfaction,
or the express written waiver, of the following
conditions:
(i) As of the Settlement, title to
the Property shall be as required by Section 3 of this
Agreement;
(ii) All representations and
warranties made by Seller in this Agreement shall be true, complete
and accurate in all material respects as of the Settlement
Date;
(iii) Seller shall have performed,
observed and complied with all agreements, covenants and
obligations to be performed by Seller under this Agreement,
including without limitation, the execution and/or delivery of all
documents required to be executed and/or delivered by or on behalf
of Seller hereunder;
(iv) The entire Property shall be
zoned for industrial uses allowing the construction and operation
of the Improvements which satisfies Buyer’s intended use
thereof;
(v) Buyer shall have obtained all
necessary permits, licenses and approvals for the purchase,
construction and operation of the Improvements which satisfies
Buyer’s intended use thereof;
(vi) [intentionally
deleted]
(vii) Buyer’s satisfaction
with the due diligence investigations contemplated in
Section 20 below;
(viii) Buyer shall have received
financing which is acceptable to Buyer in its
discretion;
(ix) Buyer shall have received tax
abatement, payment-in-lieu and other incentives from applicable
government and quasi-governmental agencies as Buyer shall deem
necessary or desirable in its discretion;
(x) Buyer shall have received
approval to the transactions contemplated in this Agreement from
its Board of Directors;
(xi) Buyer’s satisfaction with
the Deed, Ti