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HomeMy WebLinkAbout1995-045 Purchase Agrmt - ACHAGREEMENT FOR SALE AND PURCHASE OF BUSINESS ASSETS This agreement is made between Valdomar J. Swanson and Janice M. Swanson dba Ashland Physical Therapy Center ("Sellers") and City of Ashland, Oregon, by and through the Ashland Community Hospital Board ("Hospital"). DATE OF AGREEMENT: April 26, 1995 1. ASSETS PURCHASED. Sellers agree to sell to Hospital and Hospital agrees to purchase from Sellers, on the terms and conditions set forth in this agreement, the following assets ("assets"): 1.1. Equipment. All equipment, furniture, and fixtures owned by Sellers, and used in Sellers' business, listed on the attached exhibit marked "Exhibit A" and further referred to in this agreement as the "Equipment." 1.2. Name and goodwill. The assumed business name "Ashland Physical Therapy Center" and the exclusive right to use this name, and the goodwill of Sellers' business. 1.3. Real property. The real property located at 559 Scenic Drive, Ashland, Oregon, described as Map and Tax Lot No. 39-1E-O5DB, Taxlot 2400 in the Jackson County Assessor's Office, together with all improvements situated on it including all built-in appliances, floor coverings, window and door screens, storm doors and windows, irrigation, plumbing, ventilation, cooling .and heating fixtures and equipment, water heaters, attached electric light fixtures, window coverings, awnings, attached television antenna, planted shrubs, plants and trees, and all fixtures. The real property and improvements, together with all other rights, hereditaments, and tenements appurtenant to the real property and improvements, are collectively referred to in this. agreement as the "Property." 2. EXCLUDED ASSETS. Excluded from this sale and purchase are Sellers' accounts receivable, cash, notes receivable, prepaid accounts, deposits, tax refunds, insurance policies, leases and any other assets of Sellers' business not specified in section 1. 3. PURCHASE PRICE FOR ASSETS. The purchase price for the assets shall be $360,00.0 allocated as follows: 3.1. Equipment $ 25,000 3.2. Name and Goodwill 90,000 3.3. Property 245,000 4. PAYMENT OF PURCHASE PRICE FOR ASSETS. The price for the assets shall be paid as follows: PAGE 1-AGREEMENT {p:hospital\swanson.4201 4.1. Down payment. At Closing, there shall be no down payment. 4.2. Balance. The balance of the purchase price shall be paid in equal monthly installments, including interest at the rate of 8% per annum from the Closing Date and shall be paid to Sellers pursuant to the terms of a promissory note with Sellers as payee and Hospital as maker. The first of such installments shall be due on or before one month after the Closing Date, 1995, and each subsequent installment due on or before the same day of each month thereafter until May 2015, when the entire then- remaining balance of the principal and interest shall be due and payable. Such promissory note shall be deemed to be a part of this agreement. Hospital will deliver at Closing a fully executed IRS form 8038-G "Information Return for Tax-Exempt Government Obligations" for filing with the IRS that the interest paid under this agreement qualifies as a tax-exempt government obligation. 4.3. No prepayment privilege. Hospital may make no prepayments under this agreement. 4.4. Trust deed. The promissory note shall be secured by a first trust deed on the Property. 5. TITLE TO REAL PROPERTY. Within 15 days following the signing of this agreement by Sellers, Hospital shall order, at Hospital's expense, a preliminary title report covering the Property. Within 10 days of receiving the title report, Hospital shall give written notice to Sellers of the exceptions that Hospital shall require Sellers to remove of record at or before Closing, not including the title company's standard printed exceptions. If Hospital fails to give Sellers such notice, then Hospital shall be deemed to have approved the Title Report. Sellers shall have 10 days following receipt of the notice to give a written reply to Hospital of those exceptions that Sellers conclude, in good faith, that Sellers cannot or will not remove at or before Closing. Sellers shall not have any obligation to institute litigation or spend any sum of money to cure or remove any exceptions; provided, however, that Sellers shall be obligated to remove, at or before Closing, any exception created or suffered to be created by Sellers that is security for payment of a sum of money (including mortgages, deeds of trust, tax liens, contractor's liens, and judgment liens) and any exception created, or suffered to be created, by Sellers. Sellers agree to remove all exceptions contained in Hospital's notice that are not referenced in Seller's reply. If one or more of the exceptions cannot be removed at or before Closing and Sellers so states in the reply, then Hospital may exercise any of the following rights by giving written notice to Sellers within 15 days of receiving the reply: (1) Hospital may terminate this Agreement, in which event neither party shall have any further liability; (2) Hospital may accept title to the Property subject to any such exceptions; or (3) Hospital may attempt to cure the exceptions or any of them without cost or liability to Sellers (but Sellers shall be obligated to cooperate with such cure efforts and to join in the execution of any curative instruments that will operate to remove such exceptions). Exceptions that are shown on the title report and to which Hospital does not object or PAGE 2-AGREEMENT Ip:hospital\swanso..4201 to which Hospital agrees, in writing, to waive objection, are referred to in this agreement as the "Permitted Exceptions." Sellers shall not cause, permit, or suffer any matter to be recorded with respect to the Property prior to the Closing Date, except any matter that Hospital approves, in writing and at its sole discretion, before recordation. 6. CLOSING 6.1. Closing Date. Closing of the sale and purchase of the Assets shall occur on a date (the "Closing Date") selected by Hospital. Provided, however, that if Closing does not occur on or before May 30, 1995, the Sellers shall have the right to terminate the agreement on written notice to Hospital. Hospital shall give Sellers at least five days written notice of Closing Date. The escrow for the Closing shall be established at the office of Jackson County Title (the "Title Company"), at 370 Lithia Way, Ashland, Oregon. 6.2. Deposit into escrow. On the Closing Date, Sellers and Hospital shall deposit the following documents and funds in escrow, and the title company shall close escrow in accordance with the instructions of Sellers and Hospital. 6.3. Deposit by Sellers. Sellers shall deposit the following: 6.3.1. The conveyance documents described in section 7, duly executed and acknowledged; 6.3.2. A duly executed affidavit, in a form provided by Hospital, certifying that Sellers are not a foreign person, trust, partnership, or corporation in compliance with the requirements of IRC §1445; 6.3.3. Such documents as Hospital or the Title Company may reasonably require to evidence the authority of Sellers to consummate this transaction; and 6.3.4. Such other documents and funds, including (without limitation) escrow instructions, as are required of Sellers to close the sale in accordance with this agreement. 6.4. Delivery by Sellers at Closing. At the Closing, Sellers shall deliver to Hospital the following: 6.4.1. Possession of the assets conveyed pursuant to this agreement. 6.4.2. Keys to all entrance doors to the improvements on the Property and keys to all Equipment, which keys shall be properly tagged for identification. 6.5. Deposit by Hospital. Hospital shall deposit the following: PAGE 3-AGREEMENT (p:hospital\swanson.420) 6.5.1. Such documents as Sellers or the title company may reasonably require to evidence the authority of Hospital to consummate the transaction contemplated by this agreement; and 6.5.2. Such other documents and funds, including (without limitation) escrow instructions, as are required of Hospital to close the sale and purchase of the assets in accordance with this agreement. 6.5.3. Executed promissory note. 6.6. The Sellers shall pay for the standard coverage title insurance policy, one- half of all escrow fees and costs, and the Sellers' share of prorations pursuant to section 11. The Hospital shall pay recording charges, one-half of all escrow fees and costs, and the Hospital's share of prorations pursuant to section 11. The Hospital and the Sellers shall each pay its own legal and professional fees of other consultants incurred by the Hospital and the Sellers, respectively. 6.7. As soon as practicable after Closing, and in any event no later than 10 days after the Closing Date, Sellers shall cause the Title Company to issue its standard form Owners' Title Insurance Policy, with extended coverage, in the amount of $245,000, insuring fee simple title to the Property vested in Hospital, subject only to the Permitted Exceptions. 7. CONVEYANCE. At the Closing, 7.1. Deed. Sellers shall execute, acknowledge, and deliver to Hospital a Statutory Warranty Deed conveying the Property to Hospital, subject only to the Permitted Exceptions. 7.2. Bill of sale. Sellers shall execute a bill of sale, substantially in the form attached as Exhibit B, duly executed and acknowledged by the Sellers in favor of the Hospital, assigning and conveying to the Hospital all of the Sellers' right, title, and interest in and to the Equipment, free and clear of all liens, encumbrances, and adverse claims. 8. POSSESSION. Hospital shall be entitled to exclusive possession of the assets on and after the Closing Date. 9. VOLUNTARY SALE. Sellers expressly acknowledge that the Hospital is acquiring this property voluntarily from Sellers and not under its right of condemnation nor threat of condemnation. Sellers also expressly state that Sellers' sale of the Assets is voluntary and Sellers are willing sellers. 10. RISK OF LOSS. The risk of loss, damage, or destruction to any of the property conveyed to Hospital under this agreement shall be borne by Sellers to the time of Closing. In the event of such loss, damage, or destruction, Sellers, to the extent PAGE 4-AGREEMENT reasonable, Sellers shall replace the lost property or repair or cause to be repaired the damaged property to its condition prior to the damage. If replacement, repairs, or restorations are not completed prior to Closing, then the purchase price shall be adjusted by an amount agreed upon by Hospital and Sellers. If Hospital and Sellers are unable to agree, then Hospital, at its sole option and notwithstanding any other provision of this agreement, upon notice to Sellers, may rescind this agreement and declare it to be of no further force and effect, in which event there shall be no closing of this agreement and all the terms and provisions of this agreement shall be deemed null and void. 11. ADJUSTMENTS AND PRORATIONS. Expenses, including but not limited to utilities, personal property taxes and real property taxes shall be prorated between Sellers and Hospital as of the close of business on the Closing Date, with the prorated amounts paid by the respective parties on the date of Closing. 12. AGREEMENTS CONCERNING BUSINESS AFTER CLOSING After Closing and until the debt evidenced by this agreement is paid, Hospital covenants and agrees as follows: 12.1. Taxes. Except for amounts being contested in good faith, Hospital will pay, before delinquency, all taxes, license fees, and assessments and all taxes, liens, assessments, and charges relative to Hospital's conduct of the business. 13. SELLERS' REPRESENTATIONS AND WARRANTIES. Sellers warrant to Hospital as of the date of this agreement and will warrant as of the Closing Date as follows: 13.1. Title to assets. Except as described in this agreement, Sellers hold good and marketable title to the assets, free and clear of restrictions on or conditions to transfer or assignment, and free and clear of liens, pledges, charges, or encumbrances. 13.2. Transfer not subject to encumbrances or third-party approval. The execution and delivery of this agreement by Sellers, and the consummation of the contemplated transactions, will not result in the creation or imposition of any valid lien, charge, or encumbrance on any of the assets, and will not require the authorization, consent, or approval of any third party, including any governmental subdivision of regulatory agency. 13.'3. Compliance with codes and regulations. Except as disclosed on Exhibit C, Sellers have no knowledge that any real property improvements violate any material provisions of any applicable building codes, fire regulations, building restrictions, or other ordinances, orders or regulations. 13.4. Litigation. Sellers have no knowledge of any claim, litigation, proceeding, or investigation pending or threatened against Sellers that might result in any material PAGE 5-AGREEMENT (p:hospital\swanso..420) adverse change in the business or condition of the assets being conveyed under this agreement. 13.5. Accuracy of representations and warranties. None of the representations or warranties of Sellers contains any untrue statement of a material fact or omission necessary in order to make statements in this agreement not misleading. Sellers know of no fact that has resulted or that in the reasonable judgment of Sellers will result in a material change in the business, operations, or assets of Sellers that has not been set forth in this agreement or otherwise disclosed by Hospital. 13.6. Site Conditions. For purposes of this subsection, the phrase "Hazardous Substances" has the same meaning as is designated in ORS 465.200(9). Sellers warrant, represent, and covenant as follows: 13.6.1. To the knowledge of Sellers, except as set forth on Exhibit C, there are no Hazardous Substances in, upon, or buried on or beneath the Property and no Hazardous Substances have been emitted or released from the Property in violation of any environmental laws of the federal or state government; 13.6.2. Sellers have not brought onto, stored on, buried, used on, emitted or released from, or allowed to be brought onto, stored on, buried, used on, or emitted or released from, the Property any Hazardous Substances in violation of any environmental laws of the federal or state government; and 13.6.3. To the knowledge of Sellers,. except as set forth on Exhibit C, no underground storage tanks are located on the Property, including (without limitation) any storage tanks that contain, or previously contained, any Hazardous Substances, and Seller agrees not to cause or permit any such tanks to be installed in the Property before Closing or after Closing while Seller is in possession. 13.?. Breach of Agreements. Neither the execution of this Agreement, nor the execution, delivery, or recordation of any document or agreement referenced in this agreement constitutes or will constitute a default under any other agreement or contract that r. elates to the Assets or to which Sellers are parties. 14. REPRESENTATIONS OF HOSPITAL. Hospital represents and warrants as follows: 14.1. Authorization. The execution, delivery, and performance of this agreement have been, or will soon be, duly authorized and approved by the Ashland City Council, and this agreement, upon approval of the city council, constitutes a valid and binding agreement of Hospital in accordance with its terms. Hospital shall deliver to Sellers, on or before the Closing Date, a certified copy of resolution of the Ashland City Council authorizing the execution and delivery and performance of this agreement. PAGE 6-AGREEMENT (p:hospital\swanso..420) 14.2. Accuracy of representations and warranties. None of the representations or warranties of Hospital contain or will contain any untrue statement of a material fact or omission or will omit or misstate a material fact necessary in order to make statements in this agreement not misleading. 15. COVENANTS OF SELLERS. 15.1. Sellers' operation of business prior to Closing. Sellers agree that between the date of this agreement and the Closing Date, Sellers will: 15.1.1. Not assign, sell, lease, or otherwise transfer or dispose of any of the assets of Sellers which are to be transferred under this agreement. 15.1.2. Maintain the assets in their present condition, reasonable wear and tear and ordinary usage excepted. 15.2. Access to premises and information. At reasonable times prior to the Closing Date, Sellers will provide Hospital and its representatives with reasonable access during business hours to the assets, titles, contracts, and records of Sellers and furnish such additional information concerning Sellers' business as Hospital from time to time may reasonably request. 15.3. Conditions and best efforts. Sellers will use their best efforts to effectuate the transactions contemplated by this agreement and to fulfill all the conditions of the obligations of Sellers under this agreement, and will do all acts and things as may be required to carry out their respective obligations under this agreement and to consummate and complete this agreement. 16. COVENANT OF HOSPITAL. Hospital will use its best efforts to effectuate the transactions contemplated by this agreement and to fulfill all the conditions of the obligations of Hospital under this agreement, and will do all acts and things as may be required .to carry out Hospital's obligations under this agreement and to consummate and complete this agreement. 17. CONDITIONS PRECEDENT TO HOSPITAL'S OBLIGATIONS. The obligation of Hospital to purchase the assets is subject to the fulfillment, prior to or at the Closing Date, of each of the following conditions, any one or portion of which may be waived in writing by Hospital: 17'.1. All representations and warranties made in this agreement by Sellers shall be true as of the Closing Date as fully as though such representations and warranties had been made on and as of the Closing Date, and, as of the Closing Date, Sellers shall not have violated or shall not have failed to perform in accordance with any covenant contained in this agreement. 17.2. There shall have been no material adverse change in the manner of operation of Sellers' business prior to the Closing Date. PAGE 7-AGREEMENT Ip:hospital\swanson.420) 17.3. At the Closing Date no suit, action, or other proceeding shall have been threatened or instituted to restrain, enjoin, or otherwise prevent the consummation of this agreement or the contemplated transactions. 17.4. The Ashland City Council shall have approved this agreement. 17.5. On the Closing Date, the title company shall be ready, willing, and able to issue, and shall agree to issue to Hospital upon recordation of the Sellers' deed mentioned below, the title insurance policy required by section 6.7. 17.6. On or before the Closing Date, Sellers shall have performed all of the covenants, conditions, agreements, and promises to be performed by it under this Agreement. 17.7. On or before the Closing Date, Hospital shall not have determined, on the basis of such examination of the property as it deems necessary to determine that the representations made by Sellers regarding Hazardous Substances in section 13.6 are inaccurate. 17.8. Hospital shall have physically inspected the property for those disclosures made on Exhibit C. Hospital shall have until the Closing Date to complete its physical inspection of the Property. Hospital and its agents shall have full access to the Property for the purpose of conducting these inspections. If Hospital is not satisfied, in its sole discretion, with the result of the inspections, Hospital may terminate this agreement by written notice to Sellers given at any time before the Closing Date. 18. CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS. The obligation of Sellers to consummate this transaction are subject to the fulfillment, prior to or at the Closing Date, of the following condition, any portion of which may be waived in writing by Sellers: All representations and warranties made in this agreement by Hospital shall be true as of the Closing Date as fully as though such representations and warranties had been made on and as of the Closing Date, and Hospital shall not have violated or shall not have failed to perform in accordance with any covenant contained in this agreement. 19. HOSPITAL'S ACCEPTANCE. Hospital represents and acknowledges that it has entered into this agreement on the basis of its own examination, personal knowledge, and opinion of the value of the business. Hospital has not relied on any representations made by Sellers other than those specified in this agreement. Hospital further Acknowledges that Sellers have made no agreement or promise to repair or improve any of the real property improvements, Equipment, or other personal property being sold to Hospital under this agreement, and that Hospital takes all such property in the condition existing on the date of this agreement, except as otherwise provided in this agreement. PAGE 8-AGREEMENT (p:hospital\swanson.4201 20. INDEMNIFICATION AND SURVIVAL. 20.1. All representations and warranties made in this agreement shall survive the Closing of this agreement, except that any party to whom a representation or warranty has been made in this agreement shall be deemed to have waived any misrepresentation or breach of representation or warranty of which such party had knowledge prior to Closing. Any party learning of a misrepresentation or breach of representation or warranty under this agreement shall immediately give written notice thereof to all other parties to this agreement. The representations and warranties in this agreement shall terminate two years from the Closing Date, and such representations or warranties shall thereafter be without force or effect, except any claim with respect to which notice has been given to the party to be charged prior to such expiration date. 20.2. Sellers agrees to defend, indemnify and hold Hospital, its successors, and assigns harmless from and against: 20.2.1. Any and all claims, liabilities, and obligations of every kind and description, contingent or otherwise, arising out of or related to the operation of Sellers' business prior to the close of business on the day before the Closing Date, except for claims, liabilities, and obligations of Sellers expressly assumed by Hospital under this agreement or caused by the negligent act or omission of Hospital. 20.2.2. Any and all damage or deficiency resulting from any material misrepresentation, breach of warranty or covenant, or nonfulfillment of any agreement on the part of Sellers under this agreement. 20.3. Sellers' indemnity obligations under section 20.2 shall be subject to the following: 20.3.1. If any claim is asserted against Hospital that would give rise to a claim by Hospital against Sellers for indemnification under the provisions of this paragraph, then Hospital shall promptly give written notice to Sellers concerning such claim and Sellers shall, at no expense to Hospital, defend the claim. 20.3.2. Sellers shall not be required to indemnify Hospital for an amount that exceeds the total purchase price paid by Hospital under section 3 of this agreement. 20.4. Hospital's indemnification. Hospital agrees to defend, indemnify and hold Sellers from and against: 20.4.1. Any and all claims, liabilities, and obligations of every kind and description, contingent or otherwise, arising out of or related to the operation of the business following Closing or arising out of Hospital's failure to perform obligations of Sellers assumed by Hospital pursuant to this agreement, except PAGE 9-AGREEMENT [p:hospital\swanson.420) for claims, liabilities, and obligations of Hospital caused by the negligent act or omission of Sellers. 20.4.2. Any and all damage or deficiency resulting from any material misrepresentation, breach of warranty or covenant, or nonfulfillment of any agreement on the part of Hospital under this agreement. 21. DEFAULT. Time is of the essence of this agreement. A default shall occur if: 21.1. Payment: Hospital fails to make any payment within ten working days after it is due. 21.2. Other obligations: Hospital fails to perform any other obligation imposed by this agreement and does not correct or commence correction of such failure within 30 days after receipt of written notice from Sellers specifying the manner in which Hospital is in default. 21.3. Insolvency: Hospital becomes insolvent, a receiver is appointed to take possession of all or a substantial part of Hospital's properties, Hospital makes an assignment for the benefit of creditors or files a voluntary petition in bankruptcy or Hospital is the subject of any involuntary petition in bankruptcy which is not dismissed within 90 days. 22. REMEDIES UPON DEFAULT. 22.1. In the event Sellers breach any term-or provision of this agreement, then Hospital, as its exclusive remedy and in lieu of any other relief, may either (1) terminate this agreement, or (2) tender performance of the obligations of Hospital and specifically enforce all obligations of Sellers. Except as noted in section 22.3 and any specific remedies reserved elsewhere in this agreement, Hospital waives the right to pursue any remedy in law or equity against Sellers other than the remedies specified above, including any action for damages, in the event of a default by Sellers. 22.2. In the event Hospital breaches any term' or provision of this agreement, then Sellers, as their exclusive remedy and in lieu of any other relief, shall be entitled to terminate this agreement by giving Hospital written notice of termination and to retain all payments paid by Hospital, in which event Hospital shall promptly reconvey to Sellers all of the assets including the Equipment (to the extent still possessed by Hospital) and the Property free and clear of liens and encumbrances and in substantially the same or better condition as they were conveyed to Hospital, ordinary wear and tear excepted. Sellers acknowledge (1) the adequacy of this exclusive remedy and (2) that this limitation of remedies is an essential part of this agreement from the perspective of Hospital. Except as noted in section 22.3 and any specific remedies reserved elsewhere in this agreement, Sellers expressly waive the right to pursue any other right or remedy in law or equity other than the remedy specified above, including the right of specific performance and the right to sue for damages, in the event of a default by Hospital. Hospital and Sellers have established the foregoing PAGE 10-AGREEMENT (p:hospital~swanson.420) remedy in favor of Sellers because of the difficulty and inconvenience of ascertaining the actual damages Sellers may suffer as a result of a breach of this agreement by Hospital. 22.3. The limitations on remedies set forth in this section shall not preclude either party from seeking or obtaining injunctive relief or from seeking recovery against the other under any contractual indemnity set forth in this agreement or for causing physical damage or injury to persons or property. 22.4. Hospital shall not be deemed in default for failure to perform the terms, covenants, and conditions of this agreement, until notice of the default has been given to Hospital and Hospital has failed to remedy the default within five days after the notice in the case of failure to make a payment when due and 30 days in the case of any other default. 23. BULK SALES LAW. Hospital waives compliance by Sellers with the Oregon Bulk Transfer Act, ORS Chapter 76. In the event any creditor of Sellers claims the benefit of the Bulk Transfer Law as against Hospital or any of the assets being conveyed to Hospital under this agreement, Sellers shall immediately pay or otherwise satisfy such claim or undertake its defense. Sellers shall indemnify and hold Hospital harmless from and against any and all loss, expense, or damage resulting from the failure to comply with the Bulk Transfer Law. If Sellers fail to comply with the provisions of this section and Hospital is required to pay any creditor of Sellers in order to protect' the property purchased under this agreement from claims or liens of Sellers' creditors, except those assumed by Hospital, then Hospital may offset the amount it pays against the balance due Sellers under this agreement. 24. ATTORNEY FEES In case litigation is instituted arising directly or indirectly out of this agreement, the losing party shall pay to the prevailing party his reasonable attorney's fees, both at trial and on any appeal. 25. ENTIRE AGREEMENT It is understood and agreed by and between the parties that this document constitutes and incorporates the entire agreement of the parties, and that no promises, agreements, understandings, covenants or representations have been made by either party to the other, except as expressly set forth herein. 26. BINDING ON SUCCESSORS AND ASSIGNS. Hospital shall not have the right to assign or transfer this agreement or any rights or obligations in this agreement without .the prior written consent of Sellers, which consent shall not be unreasonably withheld. Subject to the foregoing, this agreement shall inure to the benefit of and be binding upon the parties, their heirs, successors and assigns. 27. STATUTORY DISCLAIMER. THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS, WHICH, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE. BEFORE SIGNING OR ACCEPTING PAGE 11-AGREEMENT Ip:hospital\swanson.420) THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND EXISTENCE OF FIRE PROTECTION FOR STRUCTURES. Hospital: .,~...--~ BY Bo;rd~Secrela~'~ -~~~ PAGE 12-AGREEMENT (p:hospital\swanson.4201 INVENTORY LIST: 1 each; Chattanooga "Adapta" electric high-low treatment table. 2 each; Wood treatment tables with 2 pillows, towels, gowns, and step stools. 2 each; Body cushions for prone positioning. 2 each; Padded corner chairs 1 each; Medcsonolator, ultrasound, and low volt stimulation. 1 each; Richmar HV II, ultrasound, high volt electric stimu- lation. 1 each; Chattanooga Intelect 700c, ultrasound, high volt electric stimulation each includes accessories. 4 each; Bean bags for patient positioning, 14"x50" mirror, 26"x66" mirror. 1 each; Stethoscope. 2 each; Electric moist heat hot pads. 1 each; Trampoline 1 each; CMC Shuttle 2000 1 each; Fitron cycle; Ergometer 1 each; Stair stepper DP 1 each; Nordic Trac pro ski machine. 1 each; Lifestyler 3000 auto incline treadmill. 1 each; Hydra-Fitness "total power" 1 each; Wall-Chair mount tru-trac Model #TTT-92 1 each; Arcon strength testing, back and hand, with computer and program. Includes operational manual, circuit breaker, and cabinet, grip strength testing ergome ter. 4 each; Blue office chairs-adjustable height on castors. 1 each; Chattanooga heavy traction unit. Model # Tx-1. 1 each; Saunders cervical traction unit, attachment to model Tx-1. 1 each; Adjustable leg stool for model Tx-1. 1 each; Infra red lamp. 1 each; Pelvic Tx belts. 1 each; Adjustable stool. 1 each; Micro therm cabinet. 3 each; 90/90 traction includes cushions/frames, for home use. 1 each; HydroTub, and wooden captains chair. 1 each; Gravitrac board with belts. 6 pairs of crutches. 1 each; Lofstraud crutches 7 each; Waiting room chairs. 1 each; Standard wheelchair, no foot rest. OFFICE: 3 each; Double drawer files 1 each; Brother typewriter and typing table. 1 cach; Panasonic/Samcung oomputcr, printcr, monitor, koy~ board. 1 each; Radioshack answering machine. 1 each; Metal office chair. KITCHEN: 1 each; Mira copier. 1 each; Small hand/foot whirlpool. 1 each; High chair for whirlpool. 1 each; Low chair LAUNDRY: 1 each; Jacuzzi home whirlpool. 1 each; Washing machine 1 each; Dryer each; Siemens neodynator electric each; NK table. each; Walker with crutch arms. Stimulator. 94/19/95 16:34 9503 488 5311 CITY HALL-LEGAL ~ ASHLAND HOSPITAL ~015/016 EXHIBIT B BILL Of SALE Valdomar J. Swanson and Janice M. Swanson dba Ashland Physical Therapy Center ("Sellers") grant, sell, transfer and deliver to the City of Ashland, Oregon, by and through its Ashland Community Hospital Board ("Hospital"), the equipment listed on the attached Exhibit A. Consideration for this transfer is $ .2~- ~ ~ Hospital shall have all rights and title to the equipment in itself, its executors and assigns. Sellers are the lawful owners of the equipment and the equipment is free from all encumbrances. Sellers have the right to transfer the equipment and will warrantland defend the right against the lawful claims and demands of all persons. Dated'~.~/--~'~ PAGE 14-AGREEMENT EXHIBIT C Disclosures Under Section 13.1 The Property is subject to a deed of trust in favor of the State of Oregon, represented and acting by the Director of Veterans' Affairs, securing an obligation of $26,000, which deed of trust will be paid off and released on the closing date. 2. Disclosure Under Section 13.3 The roof of the building located on the property has had [leaks] [needs repair work] on the east part of it, and the building might not satisfy building codes until such repair work has been done. 3. Disclosure Under Section 13.6.1 There is asbestos located on the property at basement or heat ducts to prevent heat loss. 4. Disclosure Under Section 13.6.3 There is an oil underground storage tank located on the S.E. corner on the property, which may contain, or may have previously contained, hazardous substances. {p:hospital~swan-agr.exh) PAGE 15-AGREEMENT Ip:hospital\swanson.420)