Contribution Agreement, dated effective as of May 16, 2019, by and between Postal Realty Trust, Inc. and Postal Realty LP

Contract Categories: Business Finance - Contribution Agreements

Exhibit 10.3




This Contribution Agreement (“Agreement”), effective as of May 16, 2019 (the “Effective Date”), is made and entered into by and between Postal Realty Trust, Inc., a Maryland corporation (the “Contributor”), and Postal Realty LP, a Delaware limited partnership (“Transferee”).




WHEREAS, the Contributor is the legal, record and beneficial owner of (i) equity interests (the “Property Entity Interests”) in the entities (the “Property Entities”) described on Schedule A-1 hereto, which Property Entities are the direct or indirect owners of the real properties described on Schedule A-1 hereto (the “Indirect Properties”), and (ii) undivided real property interests (the “Direct Property Interests”) in the real properties described on Schedule A-2 hereto (the “Direct Properties”). The Property Entity Interests, the Direct Property Interests, the Indirect Properties and the Direct Properties collectively are referred to herein as the “Contributed Property”; and


WHEREAS, in consideration for Contributor’s contribution, assignment and transfer of the Contributed Property to Transferee, Transferee shall assume the existing indebtedness encumbering the Contributed Property and desires to issue and deliver common units of limited partnership interests of Transferee in the amount described in Schedule B (the “OP Unit Consideration”) to the Contributor; and


WHEREAS, the Contributor now desires to contribute, assign and transfer the Contributed Property to Transferee; and


WHEREAS, Transferee desires to acquire and assume the Contributed Property from the Contributor, and issue and deliver to the Contributor the OP Unit Consideration, on the terms and conditions hereinafter set forth.




NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:


1. Sale, Contribution and Assignment of Contributed Property. The Contributor hereby contributes, assigns and transfers the Contributed Property to Transferee, and Transferee hereby accepts transfer of and assumes the Contributed Property from the Contributor, pursuant to the terms and conditions set forth in this Agreement. For the avoidance of doubt, beneficial ownership of the Contributed Property shall be contributed, assigned and transferred (the “Contribution”) on the Effective Date.


2. Consideration. In consideration for Contributor’s contribution, assignment and transfer of the Contributed Property to Transferee, Transferee hereby issues and delivers to the Contributor, and the Contributor hereby accepts transfer of, the OP Unit Consideration.





3. Representations. Each party hereto hereby represents and warrants that, with respect to itself, each and every one of the following statements is true, correct and complete in every material respect as of the date of this Agreement:


(a) Such party is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation or incorporation, and has full right, power and authority to enter into this Agreement and to assume and perform all of its obligations under this Agreement. The execution and delivery of this Agreement and the performance by such party of its obligations under this Agreement require no further action or approval of its members, of its board of managers, its board of directors or of any other individuals, entities or governing bodies in order to constitute this Agreement as a binding and enforceable obligation of such party.


(b) Neither the entry into nor the performance of, or compliance with, this Agreement by such party has resulted, or will result, in any violation of, or default under, or has resulted, or will result, in the acceleration of, any obligation under any existing articles of incorporation, bylaws, operating agreements, organizational documents, mortgages, indentures, lien agreements, notes, contracts, permits, judgments, decrees, orders, restrictive covenants, statutes, rules or regulations applicable to such party. With regard to the representations and warranties of Contributor only, Contributor has clear title to the Contributed Property.


(c) No authorization, consent, approval, permit or license of, or filing with, any governmental or public body or authority, or any other person or entity is required to authorize, or is required in connection with, the execution, delivery and performance of this Agreement or the agreements contemplated hereby on the part of such party.


4. Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto and may not be modified or amended except by instrument in writing signed by the parties hereto.


5. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of [Delaware].


6. Severability. If any term, covenant or condition of this Agreement shall to any extent be deemed invalid or unenforceable, then the remainder of this Agreement, and the application of such term, covenant or condition, shall not be affected thereby, and shall be valid and enforceable to the fullest extent permitted by law.


7. Further Acts and Assurances. The Contributor and Transferee each covenant that they will take all necessary action to confirm the transactions contemplated hereby, including securing any necessary records of transfer and executing and delivering (or cause to be executed and delivered) all such agreements, instruments, certificates and other documents, and shall take (or cause to be taken) and do (or cause to be done) all things necessary, proper or advisable to consummate and make effective this Agreement.


8. Tax Treatment. The parties to this Agreement intend that, for United States federal income tax purposes, the contribution and assignment of the Contributed Property shall be treated as a tax-deferred contribution under Internal Revenue Code section 721 by the Contributor to Transferee.


[Signatures on following page]





IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written.


  By: /s/ Andrew Spodek
  Name: Andrew Spodek
  Title: Chief Executive Officer


  By: Postal Realty Trust, Inc.
    its general partner


  By: /s/ Andrew Spodek
  Name: Andrew Spodek
  Title: Chief Executive Officer



[Signature page to Postal Realty Trust, Inc. Contribution Agreement]





Schedule A-1


Property Entities

Seller’s Percentage Interest and Indirect Property


Seller’s Percentage Interest/Sold Entity   Indirect Property
100% Gary Glen Park Realty, LLC   Peru, IN
    Gary, IN
    Deville, LA
    Scotland, SD
100% interest in Hiler Buffalo, LLC   Glasgow, VA
    Chicago, IL
    Chester, WV
    Flora, IN
    Edina, MO
    Dobson, NC
    Chicago, IL
    Buffalo, NY
100% interest in PPP Assets, LLC   Spring Grove, PA
    Brockway, PA
    Knox, PA
    Frackville, PA
    Girardville, PA
    New Philadelphia, PA
    Orwigsburg, PA
    Ringtown, PA
    Shoemakersville, PA
    Tower City, PA
    Williamstown, PA
    Leola, PA
    Castleton on Hudson, NY
100% interest in Asset 20024, LLC   Sundown, TX
    Byron, MI
    Barton, VT
    Enosburg Falls, VT
    Fairlee, VT
    Groton, VT
    Hartford, VT
    Marlborough, NH
    Port Henry, NY
    Sheffield, VT
    South Royalton, VT
    Indian Rocks Beach, FL


Schedule A-1



    Abington, MA
    East Liverpool, OH
    Poseyville, IN
    Wadesville, IN
    Edgewood, IA
    Pelahatchie, MS
    Kimball, NE
    Winamac, IN
    Ralls, TX
15% interest in Harbor Station LLC   Milwaukee, WI
100% interest in A&J Assets LLC   El Paso, TX
    El Paso, TX
    Stinnett, TX
    Fabius, NY
    Pompey, NY
    Mount Vernon, IL
    Deltaville, VA
    Memphis, TN
    Memphis, TN
100% interest in UPH Merger Sub LLC   Adrian, PA – MPO
    Akron, MI - MPO
    Albany, LA - MPO
    Amelia, LA - MPO
    Amoret, MO - MPO
    Arcadia, OK - MPO
    Archer, IA - MPO
    Barton City, MI - MPO
    Basalt, ID - MPO
    Beach, ND - MPO
    Blanco, OK - MPO
    Blandon, PA - MPO


Schedule A-1



    Boswell, PA - MPO
    Briscoe, TX - MPO
    Brownfield, PA - MPO
    Camp Crook, SD - MPO
    Caney, OK - MPO
    Carencro, LA - MPO
    Castlewood, SD - MPO
    Cedarville, AR - MPO
    Chalk Hill, PA - MPO
    Clancy, MT - MPO
    Cochranville, PA - MPO
    Cortland, NE - MPO
    De Witt, MO - MPO
    Dewar, OK - MPO
    Dracut, MA - MPO
    Dunlap, TN - MPO
    Eagle, WI - MPO
    Eden Valley, MN - MPO
    Exline, IA - MPO
    Falcon, MO - MPO
    Flippin, AR - MPO
    Folsom, LA - MPO
    Fountain, MI - MPO
    Foyil, OK - MPO
    Fruitland, ID - MPO


Schedule A-1



    Gallitzin, PA - MPO
    Gillett, TX - MPO
    Glenmora, LA - MPO
    Grand Cane, LA - MPO
    Grantville, KS - MPO
    Guy, TX - MPO
    Hadley, MA - MPO
    Halls, TN - MPO
    Hallsville, TX - MPO
    Hamer, ID - MPO
    Harris, MN - MPO
    Hartland, MI - MPO
    Herminie, PA - MPO
    Hillsdale, OK - MPO
    Hulbert, MI - MPO
    Huntington, MA - MPO
    Iroquois, SD - MPO
    Island Park, ID - MPO
    Jackson Center, PA - MPO
    Julian, PA - MPO
    Kansas, OK - MPO
    Ketchum, OK - MPO
    Knobel, AR - MPO
    Lake Andes, SD - MPO
    Lake Cormorant, MS - MPO


Schedule A-1



    Lake Nebagamon, WI - MPO
    Lake, MI - MPO
    Langley, OK - MPO
    Le Center, MN - MPO
    Liberty, MS - MPO
    Lincoln, AR - MPO
    Luther, OK - MPO
    Maiden Rock, WI - MPO
    Malone, FL - MPO
    Manvel, TX - MPO
    Marietta, IL - MPO
    Marvell, AR - MPO
    Maysville, NC - MPO
    Meeker, OK - MPO
    Midvale, ID - MPO
    Mill Creek, OK - MPO
    Monroe, OK - MPO
    Montello, WI - MPO
    Monterey, LA - MPO
    Monteview, ID - MPO
    Mooringsport, LA - MPO
    Morganton, GA - MPO
    Morrisdale, PA - MPO
    Mount Washington, KY - MPO


Schedule A-1



    New Haven, MI - MPO
    New Salem, PA - MPO
    New Waverly, TX - MPO
    Newcastle, OK - MPO
    Noble, LA - MPO
    Nolensville, TN - MPO
    North Waterboro, ME - MPO
    Oakland, ME - MPO
    Ola, AR - MPO
    Paris, ID - MPO
    Parsons, TN - MPO
    Pewaukee, WI - MPO
    Pilot Knob, MO - MPO
    Plainview, AR - MPO
    Powersville, MO - MPO
    Prue, OK - MPO
    Raymond, SD - MPO
    Richey, MT - MPO
    Ridgetop, TN - MPO
    Rozet, WY - MPO
    Saint Charles, ID - MPO
    Sand Creek, MI - MPO
    Saucier, MS - MPO


Schedule A-1



    Saxton, PA - MPO
    Sheldon, ND - MPO
    Shell, WY - MPO
    Sherburn, MN - MPO
    Shirley, AR - MPO
    Slippery Rock, PA - MPO
    Smokerun, PA - MPO
    Snow Hill, MD - MPO
    Somers, CT - MPO
    Spavinaw, OK - MPO
    Spencer, OK - MPO
    Sprague, NE - MPO
    Storden, MN - MPO
    Strong, AR - MPO
    Stuart, OK - MPO
    Tetonia, ID - MPO
    Towner, ND - MPO
    Trego, MT - MPO
    Troy, TX - MPO
    Turtletown, TN - MPO
    Vici, OK - MPO
    Wadsworth, NV - MPO
    Warden, WA - MPO
    Waskom, TX - MPO
    West, MS - MPO


Schedule A-1



    White, GA - MPO
    Wilmer, AL - MPO
    Wilson, MI - MPO
    Winburne, PA - MPO
    Woodbine, KY - MPO
    Yeagertown, PA - MPO


Schedule A-1



Schedule A-2


Direct Properties

Seller’s Percentage Interest and Property


Seller’s Percentage Interest   Property
100%   Barstow, IL
    Carbon Cliff, IL
    Hillsdale, IL
    Little York, IL
    Lynn Center, IL
    New Windsor, IL
    Rapids City, IL
    Alpha, IL
    Orion, IL
    Seatonville, IL
    Hancock, NY
    Elba, NY
    Tulsa, OK
    Vanndale, AR
    Cadwell, GA
    Colquitt, GA
    Meansville, GA
    Tacoma, WA
    Leslie, MI
    Springport, MI
    Chesaning, MI
    Aurora, CO
    West Sacramento, CA
    Oakdale, PA
    Princess Anne, MD
    Elizabeth, PA