Exhibit 10.1.1

 

FIFTH AMENDMENT TO AGREEMENT FOR PURCHASE

 

AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS

 

This Fifth Amendment to Agreement for Purchase and Sale of Real Property and
Joint Escrow Instructions (the “Amendment”) is dated and is executed on June 22,
2005, by and between AP/APH PALM SPRINGS, L.P. a Delaware limited partnership
(“SELLER”) and HIGHLAND HOSPITALITY, L.P. a Delaware limited partnership
(“BUYER”).

 

A. SELLER and BUYER have entered into that certain Agreement for Purchase and
Sale of Real Property and Joint Escrow Instructions with an effective date of
May 16, 2005, that certain Amendment to Agreement for Purchase and Sale of Real
Property and Joint Escrow Instructions dated June 14, 2005, that certain Second
Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow
Instructions dated June 17, 2005, that certain Third Amendment to Agreement for
Purchase and Sale of Real Property and Joint Escrow Instructions dated June 20,
2005 and that certain Fourth Amendment to Agreement for Purchase and Sale of
Real Property and Joint Escrow Instructions dated June 21, 2005 (collectively,
the “Agreement”).

 

B. The parties desire to further amend the Agreement.

 

C. Unless otherwise defined herein, all defined terms used herein shall have the
same meaning as in the Agreement and all Section references shall be to Sections
in the Agreement.

 

Now, therefore, for and in consideration of the mutual covenants contained
herein, the parties agree as follows:

 

1. Section 3.1; Purchase Price. In Section 3.1, the words “Fifty-Eight Million
Dollars ($58,000.000)” are hereby deleted and replaced in their entirety with
the words “Fifty-Seven Million Dollars ($57,000,000)”.

 

2. Section 1.49; Last Closing Date. The “Last Closing Date” in Section 1.49 is
hereby amended and restated in its entirety as follows:

 

“Last Closing Date” means the later of (i) July 12, 2005 or (ii) two (2)
business days immediately following satisfaction or waiver of the Conditions to
Closing set forth in Sections 9.1 and 9.2.”

 

3. Section 7.1. Section 7.1 is hereby deleted and replaced in its entirety with
the following:

 

“Hotel Management Agreement. The Hotel Management Agreement shall be terminated
effective as of the Closing Date. Seller shall remain responsible for all
amounts due under the Hotel Management Agreement prior to the Closing and shall
hold harmless, indemnify and defend Buyer and its subsidiaries and affiliates
from and against any claims or liability therefor. Buyer shall be responsible
for,

 

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shall assume liability and obligations under, and shall hold harmless,
indemnify, defend and protect Seller and its subsidiaries and affiliates from
and against, any claims, liabilities, losses, expenses and fees (including
reasonable attorneys’ fees), arising, all or in part, from termination of the
Hotel Management Agreement and/or termination of any Hotel Employees in
connection with termination of the Hotel Management Agreement, including without
limitation (i) arising from the Worker Adjustment and Retraining Notification
Act of 1988 and the California WARN Act (Sections 1400-1408 of the California
Labor Code) (collectively, the “WARN Act”), (ii) fees owed to the Hotel Manager
in connection with termination of the Hotel Management Agreement, and (iii)
severance or other payments to Hotel Employees (provided, however, Buyer shall
not be responsible for accrued vacation pay to Hotel Employees through the
Closing Date, and Seller shall pay such amounts, or reimburse Hotel Manager such
amounts, at Closing).”

 

4. Notwithstanding anything to the contrary in the Agreement or otherwise, BUYER
shall be responsible to pay to the Franchisor any fees owed to the Franchisor in
connection with the transfer of the franchise underlying the Franchise
Agreement.

 

5. Section 7.4. Section 7.4 is hereby deleted and replaced in its entirety with
the following:

 

“Estoppel Certificates; Consents. Seller shall use all commercially reasonable
efforts to obtain prior to the Approval Date, but shall not be required to pay
any money to any third party in connection therewith, the following: (A) a
consent to assignment from the Master Lessor in the form attached hereto as
Exhibit N (the “Master Lease Consent”), (B) an estoppel certificate from the
Master Lessor in the form attached hereto as Exhibit O (the “Master Lessor
Estoppel Certificate”), (C) an estoppel certificate from the Ground Sublessor in
the form attached hereto as Exhibit P (the “Ground Sublessor Estoppel
Certificate”), (D) a consent to assignment from the Ground Sublessor in the form
attached hereto as Exhibit D (the “Ground Sublease Consent”), (E) a consent to
assignment, in such form as Buyer and Seller may reasonably require, from the
Franchisor under the Franchise Agreement (the “Franchise Agreement Consent”),
(F) a Tenant Estoppel Certificate from the tenant under each Lease, in such form
as the Buyer may reasonably request (and Seller shall continue to use
commercially reasonable efforts to obtain such Tenant Estoppel Certificates
through the Closing Date) and (G) an estoppel certificate, comfort letter and/or
consent to assignment (if required) from the non-assigning party under each
other Assumed Contract, in such form as Buyer may reasonably require. Upon
receipt of each such certificate and consent, Seller shall promptly deliver the
same to Buyer. Without limiting Buyer ‘s obligations pursuant to Sections 7.1
and 7.2 above, Buyer shall cooperate in good faith with the Master Lessor, the
Ground Sublessor, and the Franchisor with respect to requests made by the Master
Lessor, Ground Sublessor or Franchisor in connection with Seller’s efforts to
obtain the Master Lease Consent, the Master Lessor Estoppel Certificate, the
Ground Sublessor Estoppel Certificate, the Ground Sublease Consent and the
Franchise Agreement Consent, including, without limitation, paying any
reasonable

 

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termination, transfer or review fee that is payable to the Master Lessor, Ground
Sublessor and/or Franchisor under the Master Lease, Ground Sublease and/or
Franchise Agreement, respectively. If Seller is unable to obtain the Franchise
Agreement Consent or the estoppel certificates as provided in (E) through (G)
above prior to the Approval Date, and Buyer ultimately elects not to terminate
this Agreement pursuant to Section 4.8 above, then the delivery of such items
shall not be a condition to Closing.”

 

6. Exhibit D. Exhibit D to the Agreement is hereby replaced with Exhibit D to
this Amendment.

 

7. Exhibit N. Exhibit N to this Amendment is added as Exhibit N to the
Agreement.

 

8. Exhibit O. Exhibit O to this Amendment is added as Exhibit O to the
Agreement.

 

9. Exhibit P. Exhibit P to this Amendment is added as Exhibit P to the
Agreement.

 

10. Section 9.1.4. Section 9.1.4 is hereby deleted and replaced in its entirety
with the following:

 

“Estoppel Certificate and Consent to Assignment from Master Lessor and Ground
Sublessor. Seller’s delivery to Buyer, without any material modifications, of
the Master Lease Consent, the Master Lessor Estoppel Certificate, the Ground
Sublessor Estoppel Certificate, and the Ground Sublease Consent, each executed
by the Master Lessor and Ground Sublessor, respectively.”

 

11. Section 9.1.5. Section 9.1.5 is hereby deleted in its entirety.

 

12. Sections 9.1 and 9.2. In the last full paragraphs of Sections 9.1 and 9.2,
the words “the Last Closing Date”, each time they appear, are deleted and
replaced in their entirety with the words “July 12, 2005”.

 

13. Section 3.2. In accordance with the provisions of Section 3.2, the SELLER
and BUYER hereby agree that the portion of the Purchase Price allocated to the
FF&E is Two Million Six Hundred Thousand Dollars ($2,600,000).

 

14. Section 4.8. BUYER hereby acknowledges that the Approval Date has expired
pursuant to Section 4.8.

 

15. Section 12.2.1. Section 12.2.1 is hereby deleted in its entirety.

 

16. Section 9.2.4. A new Section 9.2.4 is added as follows:

 

“Termination of Hotel Management Agreement. Execution of a commercially
reasonable termination of the Hotel Management Agreement.”

 

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17. New Section 9.1.5. A new Section 9.1.5 is added as follows:

 

“Seller executing a termination of the Hotel Management Agreement.”

 

18. Master Equipment Lease. BUYER shall be responsible, and shall use its
commercially reasonable efforts, to obtain the lessor’s consent to assume that
certain Master Equipment Lease dated June 3, 2003 by and between GMAC Commercial
Mortgage Corporation, predecessor to Bankers Banc, as lessor, and SELLER, as
lessee. Provided, however, that obtaining such consent shall not be a condition
to BUYER’s obligation to close. If BUYER is unable to, or elects not to, obtain
such consent, BUYER shall pay off the outstanding balance pursuant to such
lease.

 

19. No Modification. Except as provided herein, the Agreement is unmodified and
in full force and effect. In the event of any conflict between the Agreement and
this Amendment, the provisions of this Amendment shall control.

 

20. Counterparts. This Amendment may be executed in two or more counterparts,
each of which shall be deemed an original, but taken together shall constitute
one and the same document, and shall become effective when executed by all of
the undersigned persons and entities.

 

IN WITNESS WHEREOF, this Amendment is executed by the parties as of the date
first above written.

 

SELLER

 

AP/APH PALM SPRINGS, L.P., a Delaware

limited partnership

  

BUYER

 

HIGHLAND HOSPITALITY, L.P., a Delaware

limited partnership

By:   

AP/APMC GP, Inc., a Delaware corporation,

its general partner

   By:  

HHC GP Corporation, a Maryland corporation,

its general partner

     By:  

/s/ Stuart Koenig

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       By:  

/s/ Tracy M.J. Colden

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     Name:   Stuart Koenig        Name:   Tracy M. J. Colden      Its:   VP     
  Title:   Executive Vice President

 

 

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Exhibit D

 

(Ground Sublease Consent)

 

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Exhibit N

 

(Master Lease Consent)

 

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Exhibit O

 

(Master Lessor Estoppel Certificate)

 

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Exhibit P

 

(Ground Sublessor Estoppel Certificate)

 

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