Appendix D-1 Master Concession Agreement
Total Page:16
File Type:pdf, Size:1020Kb
SUTHERLAND ASBILL & BRENNAN LLP DRAFT DATED: JULY 15, 2014 MASTER CONCESSION AGREEMENT FOR THE LEASING AND DEVELOPMENT OF STUDENT HOUSING (PHASE I) Between THE BOARD OF REGENTS OF THE UNIVERSITY SYSTEM OF GEORGIA and CONCESSIONAIRE a [State] [entity] Dated November [___], 2014 TABLE OF CONTENTS Page ARTICLE I. DEFINITIONS AND INTERPRETATION .........................................................2 Section 1.1 Definitions....................................................................................................2 Section 1.2 General Rules of Construction .....................................................................7 ARTICLE II. TERM ...................................................................................................................8 Section 2.1 Term .............................................................................................................8 Section 2.2 Return of Premises .......................................................................................8 Section 2.3 Early Termination ........................................................................................8 ARTICLE III. CONTINUED OPERATIONS PERIOD; TURNOVER OF THE PROJECTS ...........................................................................................................9 Section 3.1 Continued Operations Period .......................................................................9 Section 3.2 Turnover of Operations ..............................................................................10 Section 3.3 Pre-Concession Leases...............................................................................11 Section 3.4 Financing of New Housing Projects ..........................................................11 Section 3.5 Concessionaire’s Failure to Finance or Fund .............................................11 Section 3.6 Failure of BOR to Defease Existing Housing Bonds.................................12 ARTICLE IV. DESCRIPTION OF THE PHASE I PROJECTS................................................13 Section 4.1 The Structure and Purpose of the Phase I Projects ....................................13 Section 4.2 Operative Agreements ...............................................................................14 Section 4.3 Related Facilities ........................................................................................14 ARTICLE V. PROJECT OPERATION AND MANAGEMENT ............................................15 Section 5.1 Management of the Projects.......................................................................15 Section 5.2 Insurance Requirements .............................................................................17 Section 5.3 Additional Construction Insurance Requirements .....................................19 Section 5.4 Capital Repair and Replacement ................................................................19 Section 5.5 Reporting Provisions ..................................................................................19 Section 5.6 Project Occupancy .....................................................................................21 Section 5.7 Intellectual Property ...................................................................................22 Section 5.8 BOR Reserved Rights ................................................................................23 ARTICLE VI. RENT ..................................................................................................................23 Section 6.1 Prepaid Rent ...............................................................................................23 Section 6.2 Base Rent Commencement Dates ..............................................................24 Section 6.3 Base Rent ...................................................................................................24 Section 6.4 Contingent Rent .........................................................................................25 i Section 6.5 Aggregate Basis .........................................................................................26 Section 6.6 BOR’s Right to Audit ................................................................................26 Section 6.7 Late Payment .............................................................................................26 Section 6.8 Rent Payments ...........................................................................................26 ARTICLE VII. LIENS AND LEASEHOLD MORTGAGES .....................................................27 Section 7.1 Leasehold Mortgages .................................................................................27 Section 7.2 Rights of Approved Mortgagees ................................................................28 Section 7.3 Rights upon Termination ...........................................................................29 ARTICLE VIII. ADDITIONAL PROJECTS................................................................................30 Section 8.1 Rights of First Refusal ...............................................................................30 Section 8.2 Negotiation .................................................................................................32 Section 8.3 Cooperation ................................................................................................32 Section 8.4 Expansion of Phase I ..................................................................................32 ARTICLE IX. GUARANTY ......................................................................................................33 Section 9.1 Performance Guaranty ...............................................................................33 Section 9.2 Guarantor Financial Information ...............................................................33 Section 9.3 Guarantor Financial Covenants ..................................................................33 Section 9.4 Definitions..................................................................................................34 ARTICLE X. INDEMNIFICATION; LIMITATIONS ON LIABILITY .................................35 Section 10.1 Concessionaire’s Indemnification of BOR ................................................35 Section 10.2 No Waiver; Survival ..................................................................................37 Section 10.3 LIMITATIONS ON LIABILITY ..............................................................37 ARTICLE XI. DEFAULT PROVISIONS ..................................................................................37 Section 11.1 Events of Default .......................................................................................37 Section 11.2 Remedies and Termination Rights .............................................................38 Section 11.3 No Limitation of Remedies ........................................................................39 Section 11.4 Dispute Resolution .....................................................................................39 Section 11.5 Limitations on Damages ............................................................................40 ARTICLE XII. ASSIGNMENT AND SUCCESSORS ...............................................................40 Section 12.1 No Assignment by Concessionaire ............................................................40 Section 12.2 Permitted Assignments ..............................................................................41 Section 12.3 Conditions on Assignment .........................................................................42 Section 12.4 Survival of Obligations ..............................................................................43 ii ARTICLE XIII. REPRESENTATIONS AND WARRANTIES...................................................43 Section 13.1 Representations and Warranties of the Concessionaire .............................43 Section 13.2 Representations of the BOR.......................................................................44 ARTICLE XIV. GENERAL PROVISIONS .................................................................................45 Section 14.1 No Joint Venture ........................................................................................45 Section 14.2 No Pledge of Credit ...................................................................................45 Section 14.3 Letter of Credit Requirements ...................................................................46 Section 14.4 Compliance with Law ................................................................................47 Section 14.5 Remedies Cumulative; Failure of BOR to Insist on Compliance ..............47 Section 14.6 Notices .......................................................................................................47 Section 14.7 Headings or Titles ......................................................................................48 Section 14.8 Counterparts ...............................................................................................48 Section 14.9 No Reliance ................................................................................................48 Section 14.10 Entire Agreement .......................................................................................48 Section 14.11 Governing Law; Venue ..............................................................................49 Section 14.12 Severability ................................................................................................49