Realsource Residential, Inc. 10-Q
Exhibit 10.9
RSBAKKENONE,LLC
to
REALSOURCERESIDENTIAL,INC.
RIGHT OFFIRST REFUSAL & OPTION
Dated:As of June 10, 2014
| Property Location: | 6421 13 Mile Center Road NW | 113, 115, 117, 119, 121, 123 and |
| | Williston, North Dakota | 125 Frontier Avenue |
| | WilliamsCounty | City ofWatford City, North Dakota |
| | | McKenzieCounty |
DOCUMENTPREPAREDBYANDWHENRECORDED,RETURNTO:
MichaelBest &Friedrich LLP6995
Union Park Center, Suite 100
Salt Lake City, Utah 84047
Attention: Jason Rogers
RIGHTOFFIRSTREFUSAL &OPTION
FortheOptionFee(ashereafterdefined)andothergoodandvaluableconsideration,RS BakkenOne,LLC,aDelawarelimitedliabilitycompany(the“Grantor”)havinganaddressof2089FortUnionBlvd,SaltLakeCity,UT84121,herebygrantstoRealSourceResidential,Inc., aNevadacorporation(“Grantee”),havinganaddressof2089FortUnionBlvd,SaltLakeCity,UT84121,therightoffirstrefusalandanoptiontopurchasethefollowingpropertyunderthetermsandconditionshereof(collectively,the “Property”):
FeetitletotheparcelofrealpropertylocatedinMcKenzieCounty,NorthDakota, andtheleaseholdinterestintheparcelofrealpropertylocatedinWilliamsCounty,NorthDakotaundertheCrossRoadsLeaseAgreement,datedJanuary1, 2013,betweenBakkenDevelopmentSolutions,LLC,aKentuckylimitedliabilitycompany(“BDS”),astenant,andPilotTravelCentersLLC,aDelawarelimitedliabilitycompany(“Pilot”),aslandlord,asamendedbytheFirstAmendmenttoCrossRoadLeaseAgreement,datedFebruary11,2014,asassignedtoGrantorpursuanttotheAssignmentandAssumption ofLease,datedonoraboutthedatehereof,betweenBDS,asassignor, andGrantor,asassignee,assuchleasewas furtheramended by the SecondAmendment to Cross Road LeaseAgreement, dated on or about the date hereof between Grantor and Pilot and, as such parcelsare described onExhibit“A” hereto;
TOGETHERWITHallofGrantor’sright,titleandinterestinallrights,easements,appurtenances,buildings,improvements,fixturesandhereditamentsupon,underordirectlyorindirectlyassociatedwithorconnectedwithsuchpropertyandsubjecttoall encumbrancesthereon.
Attachment: Exhibit “A”-- Description of Property
1. Option.AtanytimeafterthefirstanniversaryoftheEffectiveDateandpriortothesecondanniversaryoftheEffectiveDate(suchperiod,the“OptionExercisePeriod”)GranteeshallhavetheoptiontopurchasetheProperty(the“OptiontoPurchase”)duringtheOptionExercisePeriodfortheOptionPrice(asdefinedherein)subjecttoallofthetermsprovidedherein.The“OptionPrice”shallbeequaltothefairmarketvalueofthePropertyasdeterminedbyanappraisalbyanappraiseragreeduponbyGrantorandGranteeminus theOptionFee;provided,however,thattheOptionPriceshallbe nolessthan$7,000,000.00andno greaterthan$8,000,000.00. The “Option Fee” shall be $25,000.00.
a. IfGranteeelectstoexercisetheOptiontoPurchaseduringtheOptionExercise Period,GranteeshallnotifyGrantorofGrantee’selectiontoexercisetheOptiontoPurchaseinwritingatGrantor’saddresssetforthabove.ThedatesuchnoticeisdeliveredpersonallytoGrantororsentbyUnitedStatesregisteredorcertifiedmail,postageprepaid,andaddressedtoGrantoratGrantor’saddresssetforthaboveisthe“OptionExerciseDate”.
b. GranteeandGrantorshallusecommerciallyreasonableeffortstoobtaintherequiredconsents(includinganylenders,Grantor’smembersorotherrequiredapprovals,
the“RequiredConsents”)toclosethetransferofthePropertyassoonasreasonablypracticablefollowingtheOptionExerciseDate.Theclosingshallbesubjectto,amongotherthings,thereceiptofallrequiredconsents(suchdate,the“ClosingDate”).
c. ThisoptionisgivenwiththeunderstandingthatGranteeisfamiliarwiththeProperty,hasreviewedcurrenttitlereportsofthePropertyandhasreviewedtheloandocuments(asthesamemaybeamended,increased,renewed,extended,spread,consolidated,severed, restated, or otherwisechangedfromtimetotime,the“LoanDocuments”)encumberingthepropertyissuedbySilverpeakRealEstateFinanceLLC,aDelawarelimited liabilitycompany, datedonoraboutthedatehereof.
2. RightofFirstRefusal.IfatanytimepriortothesecondanniversaryoftheEffectiveDateGrantororGrantor’ssuccessors,asthecasemaybe,receivesanybonafideoffertopurchase(the“Offer toPurchase”)theProperty,whichofferGrantorortheGrantor’ssuccessorsdesirestoaccept,GrantororGrantor’ssuccessorsshallnotifyGranteeinwriting(atGrantee’s addresssetforthabove)ofsuchoffer,andGranteeshallhavethirty(30)businessdaysafterreceipt of such notice withinwhich tonotify Grantor orGrantor’ssuccessorsofGrantee’selectiontopurchasethePropertydescribedinsuchofferonthetermsandconditions setforthin such offer. The noticefrom Grantor orGrantor’ssuccessorstoGrantee shall contain a copy of theOffertoPurchaseasdescribedintheoffer.
a. IfGranteeelectstoexerciseitsrightoffirstrefusal,byprovidingnoticetoGrantororGrantor’ssuccessorswithinthetimeperiodsetforthabove,GranteeandGrantororGrantor’ssuccessorsshallproceedtoclosethetransferoftheProperty(subjecttothereceiptoftheRequiredConsents),ortheportionthereofdescribedintheoffer,inthe timeperiodfortheclosingas setforth intheOffer toPurchase.
b. IntheeventthatGranteefailstoprovideGrantororGrantor’ssuccessorswithnotice within thetime period set forthabove,Grantor or Grantor’ssuccessorsmaytransfertheProperty,ortheportionthereofsetforthintheOffertoPurchase,freeandclearofthetermsofthisAgreementandofanyrightsofGranteesolongastheOptionFeeis repaidtoGranteeattheclosingofsuchsale.
c. AllnoticeshereundershallbeinwritingandshallbeeffectivewhendeliveredpersonallyorwhensentbyUnitedStatesregisteredorcertifiedmail,postageprepaid,andaddressedtothepartiesattheaddressesset forthabove.
3. Subordination.Notwithstandinganythinghereintothecontrary,thisRightofFirstRefusal&Option,andalltermsandprovisionshereof,asthesamemayhereafterbemodified,amendedorextended,(i)shallbe,andshallatalltimesremain,subjectandsubordinatetotheterms,conditionsandprovisionsoftheLoanDocumentsandthelienthereofand (ii)shallautomaticallyterminateupontheforeclosureordeed-in-lieuofforeclosureofthelienscreatedbytheLoanDocuments.
[Signature pagefollows]
Exhibit “A”
DESCRIPTION OF PROPERTY
McKenzieCounty, North Dakota Parcel
Parcel1:
Lot 1, Block 1, The Crossings atWatford City,McKenzieCounty,NorthDakota,asshownonthe Plat recorded asDocument No. 464880
Parcel2:
Togetherwiththebeneficialrighttouse360footby170footprivate storm drainage facilitieseasement as shown in Warranty DeedrecordedOctober17,2012as DocumentNo.441489,McKenzieCounty, North Dakota
Williams County, North DakotaParcel
Parcel1:
UnitsEandF,inLot6,Block3,13MileCenterSubdivisionlocatedinthe SW¼ of Section 12, Township156 North, Range 101 West,5thP.M., Williams County,NorthDakota
Parcel2:
Togetherwiththe beneficial righttouseparkingareaslocatedon Lot 6, Block 3, 13 Mile CenterSubdivisionlocatedintheSW¼ of Section 12,Township 156 North, Range 101 West,5thP.M.,Williams County, NorthDakota
