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Exhibit
10.4
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
SALES
AGREEMENT
THIS AGREEMENT is made and
entered into as of February 9, 2008, by and among (*NAME
CONFIDENTIAL*) (“Seller”) and (*NAME CONFIDENTIAL*), a
(*STATE CONFIDENTIAL*) Limited Liability Company
(“Purchaser”) as follows0.
W I T N E S S E T
H:
For and in consideration of
the covenants and agreements contained in this Agreement, it is
hereby covenanted and agreed between the parties hereto as
follows:
1. Subject Property. Upon and
subject to the terms, covenants and conditions herein, Seller
agrees to sell and convey to Purchaser, and Purchaser agrees to buy
from Seller, the following items in subparagraphs (a) through
(f) (collectively, the “Subject
Property”):
(a) The approximately 18,500
square foot building and interior leasehold fixtures/improvements
situated on that tract or parcel of land having a street address of
(*ADDRESS CONFIDENTIAL*) and being more particularly described on
the attached Exhibit “A” (but not the land
thereunder) subject only to the “Permitted
Encumbrances” described on the attached Exhibit
“B” ;
(b) All right, title and
interest of Seller in and to all fixtures, equipment, finishes,
window treatments, carpets, safety equipment, and other tangible
items of personalty, used in the operation of the Subject Property
(collectively, the “FFE”);
(c) All right, title and
interest of Seller in and to (i) the security system, service,
utility, and maintenance leases or contracts and other contracts,
agreements and leases affecting the Subject Property to the extent
said leases, contracts, and agreements are assignable by Seller and
all deposits made pursuant thereto listed on Exhibit
“C” (the “Contracts”) (but excluding
the Ground Lease on the underlying Land which will be executed
between some or all the parties hereto on the date of Closing
hereof) and (ii) the deposits and other payments previously
made under the Contracts, together with the right to receive the
same; all of the foregoing shall be paid in full by Seller at
closing or cancelled by Seller. Purchaser does not assume any
obligations thereunder unless agreed to by Purchaser and except as
disclosed on Exhibit “B” ;
(d) All transferable
consents, authorizations, variances, waivers, licenses, permits and
approvals from any governmental or quasi-governmental agency,
department, board, commission, bureau or other entity of
instrumentality in respect of the Subject Property, including,
without limitation, those with respect to the foundation, roof and
roof equipment use, utilities, building, fire, life, safety,
traffic and zoning
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
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2/9/08
1
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
(collectively, the
“Approvals”) heretofore or hereafter held by or granted
to Seller (but excluding the SOB license or (*NAME
CONFIDENTIAL*) permits held by (*NAME CONFIDENTIAL*)) ;
and
(e) All that the owner has to
the extent that it is available of the books, records, files,
plans, specifications, surveys, environmental studies, roof
equipment, maintenance records (for at least three (3) years),
rental records, including delinquency reports, estoppel letters and
engineering reports (collectively, the “Books”) of
Seller in connection with the operation and maintenance of the
Subject Property.
(f) Notwithstanding anything
above to the contrary, the “Subject Property” includes
the former lease between Seller and (*NAME CONFIDENTIAL*) (which
will be terminated upon Closing of this transaction) but does not
include the lease being entered into on this date between Seller
and Purchaser wherein Purchaser is leasing the underlying Land upon
which the Subject Property is located.
2. Price.
2.1 Purchase
Price.
(a) The purchase price (the
“Purchase Price”) to be paid by Purchaser to Seller for
the Subject Property shall be One Million Seven Hundred Thousand
Dollars ($1,700,000.00) . The Purchase Price shall be paid by
Purchaser to Seller upon the delivery of a Bill of Sale (subject
only to the permitted encumbrances listed on Exhibit
“B” attached hereto and incorporated by reference)
and other instruments and conveyances required hereunder, at
Closing, provided that such amount shall be adjusted by prorations
of items as provided for herein. Except as otherwise provided in
Section 2.2 hereof, payments will be made by wire transfer or
delivery of cashier’s or certified checks drawn on a banking
institution satisfactory to Seller.
2.2 Earnest Money.
Purchaser shall pay to or
deposit with Escrow Agent, within ten (10) days of the full
execution of this Agreement the sum of One Hundred Thousand
($100,000.00) Dollars. The One Hundred Thousand ($100,000.00)
Dollars shall be Earnest Money which Escrow Agent shall pay at
Closing to Purchaser, or shall be paid by Escrow Agent to Seller as
liquidated damages or returned by Escrow Agent to the Purchaser,
according to the terms hereof.
2.3 Within ten (10) days
after the date hereof, Seller will furnish to Purchaser the
following, which shall be and become annexed and attached hereto
and integral parts of this Agreement;
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
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2
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
Schedule
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I |
True and complete copies of all contracts, leases, rent rolls
(in form and containing sufficient detail satisfactory to
Purchaser), delinquency reports, maintenance records, surveys,
environmental reports, warranties, service contracts, engineering
studies and management agreements. |
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II |
List of all existing insurance policies for or covering the
Subject Property, and at Purchaser’s request, copies of the
policies disclosed thereon. |
3. Representations,
Warranties and Certain Covenants.
3.1 Of Seller. To induce the
Purchaser to enter into this Agreement, Seller makes the following
representations, warranties and covenants, each of which is
material to and is relied upon by Purchaser, and each of which
shall be effective and true on or prior to the approval of this
Agreement and at closing.
(a) Seller has the right,
power and authority to sell the Subject Property to Purchaser in
accordance with the terms and conditions hereof, and to execute,
deliver and perform its obligations under this Agreement and all
other instruments, conveyances, or to be executed and delivered, by
Seller in connection with the transactions contemplated herein.
This Agreement and all other documents executed and delivered, or
to be executed and delivered, by Seller in connection with the
transactions contemplated herein, have been, or at the appropriate
time will be, duly executed and upon delivery will constitute, the
legal, valid and binding obligations of Seller, enforceable in
accordance with their respective terms and provisions, subject,
however, to the effect of any bankruptcy, reorganization,
moratorium, insolvency or other laws affecting the rights of
creditors generally. Seller has taken all action, corporate or
otherwise, required to authorize its execution, delivery and
performance of this Agreement and such other documents. There are,
to the best of Seller’s knowledge, no claims, defenses,
personal or otherwise, or offsets whatsoever to the validity or
enforceability with respect to Seller of this Agreement or any
other documents executed and delivered, or to be executed and
delivered, by Seller in connection with the transactions
contemplated herein nor, to the best of Seller’s knowledge,
is there any basis for any such claim, defense or offset known to
Seller.
(b) To the best of
Seller’s knowledge neither the execution nor delivery of this
Agreement nor the consummation of the transactions contemplated
herein will conflict with, or result in a breach of, the terms,
conditions or provisions of, or constitute a default under, any
agreement, contract, or instrument to which Seller is a party;
and
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
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2/9/08
3
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
(c) The Subject Property
including all the leasehold estate, personalty, contract rights,
leases, and the like which are to be transferred to the Purchaser
hereunder, constitute all of the property and property rights
located on or used in connection with the operation of the Subject
Property; and
(d) To the best of
Seller’s knowledge at Closing, all of the equipment, personal
property and the like shall be in substantially the same working
order as on the date hereof, reasonable wear and tear excepted, and
the Personalty, including equipment, heating and air conditioning
systems and the like, shall be in good operating condition and
state of repair at closing, except for such defects as shall be
disclosed in writing to Purchaser at or before the Closing;
and
(e) Seller has good and
marketable title to the Subject Property and such assets at closing
shall be free and clear of all liens, encumbrances, equities,
restrictions, leases, claims of mechanics and materialmen, special
assessments, liabilities and claims of every kind and nature
whatsoever, except as disclosed on Exhibit “D”
(those matters disclosed thereon being referred to as “All
Encumbrances”) and the lease referenced in paragraph 1(f).
Within fifteen (15) days following the execution of this
Agreement, Seller shall deliver to Purchaser, at Seller’s
expense, a survey showing improvements in place and the location
and book and page number of all easements; and
(f) To the best of
Seller’s knowledge all leases, contracts and other agreements
to be transferred to Purchaser hereunder are valid, subsisting and
in full force and effect without any change or modification not
herein reflected in writing, and there exists no default (nor any
state of facts which with or without the giving or notice and/or
lapse of time would constitute a default) on the part of the Seller
under any thereof. Seller has obtained or will obtain prior to the
Closing all necessary consents for the assignment of said
agreements to Purchaser hereunder or for their termination as the
case may be; and
(g) To the best of
Seller’s knowledge the present use by Seller of the Subject
Property to be conveyed pursuant hereto to the Purchaser does not
violate any applicable zoning ordinance, or any health, fire or
other statutes, codes, or ordinances or any regulations issued
pursuant thereto and in conveyance to and use of the initial
Subject Property shall not constitute a violation of such, and, to
the best of Seller’s knowledge, the Subject Property complies
with all applicable State and Federal laws; and
(h) Up to and including the
date of Closing hereunder, Seller shall maintain the Subject
Property in its present state ordinary wear and tear excepted. At
the date of Closing, the Subject Property shall be in good, fully
rentable condition or if not in such condition at closing, Seller
shall be responsible for placing in good, fully rentable condition
within a reasonable time after closing; and
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
MAG - V. 8 FINAL
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4
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
(i) Except for replacements
and changes made or occurring in the ordinary course of
Seller’s business, all of the tangible assets to be conveyed
pursuant hereto will, as of the Closing Date, be in substantially
the same conditions, ordinary wear and tear excepted, as on the
date of this Agreement, and Seller shall maintain and continue to
maintain insurance with respect therein in such types and amounts
as have heretofore been maintained; and
(j) Neither Seller nor the
Subject Property are subject to a management agreement which
affects or restricts the sale of the Subject Property or the
management thereof by Purchaser or Purchaser’s successors or
assigns; and
(k) To the best of
Seller’s knowledge the Subject Property did lie in a flood
zone or in a 100 year flood plain but upon information and belief
was removed from same by past owners; and
(l) To the best of
Seller’s knowledge the Subject Property is free from
infestation and from damage by termites and other insects and shall
be so free at Closing; Seller agrees to provide Purchaser with a
written report from a licensed and bonded pest control company
showing that the Subject Property is free of all termite and insect
infestation, dry rot and fungus; and
(m) Except as disclosed in
Exhibit “E” , Seller , to the best of
Seller’s knowledge, is not aware of any condemnation, zoning,
environmental, or other land use regulation proceeding, either
instituted or threatened, which would affect the use, occupancy, or
operation of the Subject Property, nor has Seller received notice
of any special assessment affecting any of the Subject Property;
and
(n) Seller is not a party,
either as defendant or plaintiff, to any litigation or
administrative proceeding nor is any legal action pending or
threatened regarding the Subject Property or Seller’s use
thereof, which would adversely affect the Subject Property or
Seller’s authority to perform its obligation under this
Agreement, and there are no contingent liabilities of which Seller
is aware, except as disclosed on Exhibit “F” ;
and
(o) To the best of
Seller’s knowledge there are no material, latent physical
defects in the Subject Property, all of the Subject Property is in
good repair, except as disclosed on Exhibit “G”
; and
(p) There are no material,
adverse facts concerning the Subject Property of which Seller is
aware which have not been disclosed to Purchaser; and
(q) These representations and
warranties are made at the time Seller executes this Agreement and
are also made at and as of Closing; and
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
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5
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
(r) Intentionally
omitted.
(s) Seller shall retain the
services of an environmental firm acceptable to Purchaser (at
Purchaser’s sole expense) to conduct a Phase I environmental
inspection of the Subject Property. Seller further agrees that this
Agreement shall become null and void if the limited environmental
audit reveals any material environmental problems in the sole
opinion of Purchaser with the Subject Property. Notwithstanding the
foregoing to the contrary, Purchaser shall have thirty
(30) days from the effective date of this Agreement to review
the Phase I environmental inspection of the Subject Property and
exercise its option to terminate this Agreement because of any
material environmental problems with the Subject Property. Seller
shall be entitled to a copy of the environmental report and shall
not be under any obligation to correct any environmental
defects.
3.2 Of Purchaser. To induce
the Seller to enter into this Agreement, Purchaser makes the
following representation, warranties and covenants, each of which
is material to and is relied upon by Seller:
(a) Purchaser has the right,
power and authority to purchase the Subject Property form Seller in
accordance with the terms and conditions hereof, and to execute,
deliver and perform its obligations under this Agreement and all
other instruments, conveyances, or to be executed and delivered, by
Purchaser in connection with the transactions contemplated herein.
This agreement and all other documents executed and delivered, or
to be executed and delivered, by Purchaser in connection with the
transactions contemplated herein, have been or at the appropriate
time will be, duly executed and delivered and constitute or, upon
such execution and delivery will constitute, the legal, valid and
binding obligations of Purchaser, enforceable in accordance with
their respective terms and provisions, subject, however, to the
effect of any bankruptcy, reorganization, moratorium, insolvency,
or other laws affecting the rights of creditors generally.
Purchaser has taken all action, corporate or otherwise, required to
authorize its execution, delivery and performance of this Agreement
and such other documents. There are no claims, defenses personal or
otherwise, or offsets whatsoever to the validity or enforceability
with respect to Purchaser of this Agreement or any other documents
executed and delivered, or to be executed and delivered, by
Purchaser in connection with the transactions contemplated herein,
nor is there any basis for any such claim, defense or offset known
to Purchaser. No consent or approval of any person, firm,
corporation , court trustee, judge, or governmental authority is
required to be obtained by Purchaser in order for Purchaser to
enter into this Agreement or any such other document or to perform
fully all of Purchaser’s obligations under this Agreement
except those that have been obtained and are in full force and
effect; and
(b) To the best of
Purchaser’s knowledge, neither the execution nor delivery of
this Agreement nor the consummation of the transactions
contemplated herein
Kdills/vcg/(*NAME CONFIDENTIAL*)/sales
agreement.doc
MAG - V. 8 FINAL
2/9/08
6
CONFIDENTIAL TREATMENT
REQUESTED
Portions of this exhibits indicated by
“(*[TEXT]*)” have been omitted pursuant to a request
for confidential treatment and such omitted portions have been
filed separately with the Securities and Exchange
Commission.
will conflict with, or result in a
breach of, the terms, conditions or provisions of, or constitute a
default under any agreement or instrument to which Purchaser is a
party; and
(c) Purchaser shall have a
period of thirty (30) days to secure financing acceptable to
Purchaser in an amount not less than $1,360,000.00 on terms
acceptable to Purchaser and if not obtained within said time, this
Agreement at the option of either party may be terminated and
Purchaser’s earnest money shall be refunded. Purchaser shall
use all best efforts to obtain financing.
(d) The Purchaser is a
limited liability company duly organized and in good standing in
their State of incorporation and authorized to enter into this
transaction and to do business in (*STATE CONFIDENTIAL*). Further,
each Purchaser represents that all actions and approval necessary
to enter into and close this transaction has occurred.
4.
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