Document:

Prepared by R.R. Donnelley Financial -- Purchase and Sale Agreement For the Marriott

 EXHIBIT 10(a) 
  
 AGREEMENT OF PURCHASE AND SALE 
  
 THIS AGREEMENT OF PURCHASE AND SALE
(“Agreement”) is made as of June 7, 2002 (“Contract Date”), between (i) HMC Copley LLC, a Delaware limited liability company (“Purchaser”), and (ii) Copley One LLC, a Massachusetts limited liability
company (“Seller”). 
  
 ARTICLE 1.    INTERPRETATION 
  
 1.1    Definitions.    For purposes of this Agreement, the following capitalized
terms shall have the meanings indicated: 
  
 1.1.1    Accounting
Period:    as defined in the Existing Management Agreement. 
  
 1.1.2    Action:    any action, suit, arbitration, governmental investigation or other legal proceeding. 
  
 1.1.3    Apportionment Time:    12:01 a.m. local Boston, Massachusetts time on the Closing Date.

  
 1.1.4    Broker:    Hodges Ward Elliott.

  
 1.1.5    Capex Forecast:    as defined in Section
10.4.4. 
  
 1.1.6    Chilled Water
Agreement:    Marriott Chilled Water Agreement dated as of February 3, 1982 by and between Marriott Urban Boston Venture, as “Consumer”, and UIDC of Massachusetts, Inc., as the “Central Tenant”, as amended
by Amendment to Marriott Water Agreement dated as of February 1, 2002, relating to the supply of chilled water to the Hotel, and by letter agreement dated March 1, 1982. 
  
 1.1.7    Chilled Water Estoppel Certificate:    as defined in Section 5.8.2. 
  
 1.1.8    Closing:    the consummation of the purchase and sale of the Hotel
as contemplated by this Agreement. 
  
 1.1.9    Closing
Date:    the date on which the Closing occurs. 
  
 1.1.10    Code:    the Internal Revenue Code of 1986, as amended. 
  
 1.1.11    Consumables:    all opened and unopened food and alcoholic and non-alcoholic beverages located at the Hotel. 
  
 1.1.12    Contract Date:    as defined in the Preamble. 

 
 1.1.13    Contracts:    all contracts for services, maintenance
or supplies, purchase orders, license agreements, warranties, guaranties, and other contracts or 
 

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agreements to which Seller is a signatory and a party relating to the use, maintenance, operation, protection, promotion, provisioning or equipping of the Hotel, but excluding the
Equipment Leases, the Space Leases, Chilled Water Agreement, the Existing Management Agreement, the Parking Agreements, the Renovation Agreements and the Operating Agreements. 
  
 1.1.14    Damages:    as defined in Section 7.5.1. 
  
 1.1.15    Deposit:    as defined in Section 2.3. 
  
 1.1.16    Due Diligence Period:    as defined in Section 5.1. 
  
 1.1.17    Easement Estoppel Certificate:    as defined in Section 5.9.2.

  
 1.1.18    Easement Agreements:    as defined in
Section 5.9. 
  
 1.1.19    Encumbrance:    any lien,
mortgage, deed of trust, security interest, pledge, charge, option, encroachment, easement, covenant, lease, reservation or restriction of any kind (whether recorded, perfected, choate or inchoate, actual or contingent) affecting title.

  
 1.1.20    Environmental Laws:    all Legal
Requirements relating to the protection of the environment or to human health, or regulating the manufacture, use or disposal of Hazardous Substances. 
  
 1.1.21    Environmental Reports:    as defined in Section 3.13. 
  
 1.1.22    Equipment Leases:    all leases of personal property to which
Seller is a signatory and a party located at, or used in the operation of, the Hotel, excluding any Operating Agreements. 
  
 1.1.23    Escrow Agent:    the Title Company, in its capacity as escrow agent under this Agreement and the Escrow Agreement. 
  
 1.1.24    Escrow Agreement:    the Escrow Agreement of even date herewith
between Seller, Purchaser and Escrow Agent regarding the holding and disbursement of the Deposit. 
  
 1.1.25    Existing Lender:    Metropolitan Life Insurance Company, a New York corporation. 
  
 1.1.26    Existing Loan:    the loan with the approximate current principal balance of $97,000,000.00 made by
Existing Lender to Seller. 
  
 1.1.27    Existing Loan
Documents:    the documents that evidence and/or secure the Existing Loan, and any agreements between Seller (or its affiliates) and Existing Lender that relate to the Existing Loan and/or the Hotel. 
 

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 1.1.28    Existing
Manager:    Marriott Hotel Services, Inc., a Delaware corporation. 
  
 1.1.29    Existing Management Agreement:    the Management Agreement dated as of April 14, 1981, between Seller, successor to Marriott Urban Boston Venture, as “Owner,” and
Existing Manager, successor to Marriott Corporation, as amended by First Amendment to Management Agreement dated as of February 22, 1982, and instruments dated May 16, 1984, May 17, 1984 and May 15, 1987. 
  
 1.1.30    Existing Mortgage:    the Leasehold Mortgage, Security Agreement
and Fixture Financing Statement executed by Seller, as mortgagor, in favor of Existing Lender, as mortgagee, dated as of June 6, 1996, and recorded in the Suffolk Registry of Deeds, encumbering the Hotel and securing the obligations of Seller under
the Existing Loan. 
  
 1.1.31    Expendables:    all
china, glassware, linens, silverware, kitchen and bar small goods, paper goods, guest supplies, cleaning supplies, operating supplies, laundry supplies, other supplies not held for resale, printing, stationery, uniforms, fuel, brochures and other
promotional material, whether in use or held in reserve storage for future use. 
  
 1.1.32    FF&E Reserve:    the Equipment Reserve described in Section 8.02A of the Existing Management Agreement. 
  
 1.1.33    Fiscal Year:    as defined in the Existing Management Agreement. 
  
 1.1.34    Furnishings:    all furniture, fixtures, equipment and other
items of tangible personal property, whether in use or held in reserve storage for future use, including: floor coverings, pictures, beds, mattresses, bedspreads, pillows, radios, television sets, and other furniture; all specialized hotel
equipment, including all equipment used in the operation of kitchens and dining rooms, cleaning equipment, laundry equipment, office equipment, appliances, computers and machines, health club equipment, and special lighting and other equipment of a
like nature, but excluding the Consumables, Expendables and Miscellaneous Hotel Assets. 
  
 1.1.35    Hazardous Substance:    any pollutant, contaminant or any toxic, radioactive or otherwise hazardous substance, including petroleum, its derivatives, byproducts and other
hydrocarbons, and asbestos, in each case as regulated under Environmental Laws. 
  
 1.1.36    Hotel:    collectively, the following: (i) all right, title and interest of Seller under the Lease, the Chilled Water Agreement and the Easement Agreements, (ii) the
Improvements, (iii) the Furnishings, Consumables, Expendables, Miscellaneous Hotel Assets, assignable Permits and Intellectual Property, (iv) all right, title and interest of Seller in, to and under the Contracts, the Equipment Leases, the Space
Leases, the Parking Agreements, the Renovation Agreements, and the Existing Management Agreement, and (v) all right, title and interest of Seller in, to and under the Operating Agreements. 
 

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 1.1.37    Improvements:    the buildings, structures (surface and sub-surface), installations and other improvements, including such fixtures and appurtenances as shall constitute real
property, located on the Land. 
  
 1.1.38    Intellectual
Property:    collectively, (1) all trademarks, service marks, trade dress, logos and trade names used in connection with the Hotel, together with all translations, adaptations, derivations, and combinations thereof and
including all goodwill associated therewith, and all trademarks or business or corporate names confusingly similar thereto in relation to any goods or services, and all applications, registrations, and renewals in connection therewith, (ii) all
copyrightable works, all copyrights, and applications, registrations, and renewals in connection therewith, used in connection with the Hotel, all trade secrets and business information relating to the Hotel (including ideas, research and
development, know-how, formulas, compositions, marketing processes and techniques, technical data, designs, drawings, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), and (iv) all software
used in connection with the operation of the Hotel (including data, passwords, source codes and related documentation), excluding all such property as may be owned by Existing Manager in accordance with the Existing Management Agreement.

  
 1.1.39    Interim Liquor Agreement:    as defined
in Section 5.13.2. 
  
 1.1.40    L&B:    as
defined in Section 1.1.66. 
  
 1.1.41    Land:    the
land described on Schedule 1.1A. 
  
 1.1.42    Lease:    the Sublease dated as of January 12, 1982, between Lessor, successor to Urban Investment and Development Co., as “Landlord,” and Seller, successor to
Marriott Urban Boston Venture, as “Tenant,” with respect to the Land, as affected or amended by those documents identified on Schedule 1.1B. 
  
 1.1.43    Legal Requirement:    any federal, state, local or municipal constitution, law, ordinance, rule,
order, regulation or statute. 
  
 1.1.44    Lender’s Estoppel
Certificate:    as defined in Section 5.7.2. 
  
 1.1.45    Lessor:    Massachusetts Turnpike Authority. 
  
 1.1.46    Lessor’s Estoppel Certificate:    as defined in Section 5.5.2. 
  
 1.1.47    Liquor License:    the Innholder License for the Hotel, a copy of which is attached as Schedule
1.1C. 
  
 1.1.48    Loan Continuation Documents:    as
defined in Section 5.7.3. 
  
 1.1.49    Manager’s Estoppel
Certificate:    as defined in Section 5.4.2. 
 

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 1.1.50    Miscellaneous Hotel
Assets:    collectively, (i) all general intangibles relating to design, development, operation and use of the Hotel, (ii) all rights and work product under construction, service, consulting, engineering, architectural and
other contracts, including surveys, plans and studies, (iii) receipts, accounting and business records, (iv) books, files and correspondence relating solely to ownership or operation of the Hotel, (v) guest registers, maintenance records, rental and
reservation records, (vi) plans and specifications of any portion of the Improvements, (vii) inventories held for resale, (viii) all phone numbers used in connection with the Hotel, (ix) all deposits, including utility deposits and security
deposits, relating to the Hotel, (x) keys and lock and safe combinations relating to the Hotel, and (xi) all accounts receivable in connection with the Hotel, and accounts, reserves, house banks, petty cash or other cash held by Existing Manager,
and prepaid expenses. 
  
 1.1.51    New Liquor
License:    as defined in Section 5.13.1. 
  
 1.1.52    Objections:    as defined in Section 5.2.3. 
  
 1.1.53    Operating Agreements:    all of the following, to which Existing Manager is a party or a signatory, on its own behalf or on behalf of others: (i) all contracts for
services, maintenance or supplies, purchase orders, license agreements, warranties, guaranties, and other contracts or agreements, relating to the use, maintenance, operation, protection, promotion, provisioning or equipping of the Hotel, (ii) all
leases of personal property located at, or used in the operation of, the Hotel, and (iii) all leases, licenses to occupy space, concession agreements and other agreements for the use or occupancy of space within the Hotel. 
  
 1.1.54    Parking Agreements:    the agreements with respect to the use or
operation of the parking garage facilities located on the Land and on certain property adjoining the Land. 
  
 1.1.55    Parking Estoppel Certificate:    as defined in Section 5.6.2. 
  
 1.1.56    Permits:    all governmental and quasi-governmental licenses, permits, permissions, authorizations, consents, variances, waivers and approvals
used in or relating to the Hotel, excluding the Liquor License. 
  
 1.1.57    Permitted Exceptions:    Encumbrances approved or deemed approved by Purchaser in accordance with Section 5.2. 
  
 1.1.58    Person:    a natural person or any legal, commercial or governmental entity, including a
corporation, general partnership, joint venture, limited partnership, limited liability company, trust, business association, group acting in concert or any person acting in a representative capacity. 
  
 1.1.59    Purchase Price:    as defined in Section 2.2. 

 
 1.1.60    Purchaser:    as defined in the Preamble.

 

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 1.1.61    Renovation:    the existing program for the renovation of the finishes and furnishings of 1147 guest rooms and corridors on guest room floors, but not the lobby, conference
rooms or other public areas of the Hotel. 
  
 1.1.62    Renovation
Agreements:    all contracts and agreements to which Seller is a signatory and a party, for labor to be performed, or services or materials to be provided, in connection with the design, construction or equipping of the
Renovation, including contracts and agreements with Existing Manager or other affiliates of Marriott International, Inc. 
  
 1.1.63    Renovation Budget:    as defined in Section 3.23. 
  
 1.1.64    Rent Letter:    as defined in Section 10.2.1. 
  
 1.1.65    Seller:    as defined in the Preamble. 
  
 1.1.66    Seller’s knowledge, best of Seller’s knowledge and similar phrases:    the actual current
knowledge of David C. Gorst (Seller’s Assistant Vice President) and of Daniel L. Plumlee (President of L&B Realty Advisors, Inc. (“L&B”), Seller’s advisor for the Hotel). There shall be no duty, express or implied,
to investigate, inspect or audit any matter, and there shall be no personal liability of such individual. In no event shall the knowledge of Existing Manager, or any employee of Existing Manager, be imputed to Seller. 
  
 1.1.67    Seller’s Management Agreement Estoppel Certificate:    as
defined in Section 5.4.2. 
  
 1.1.68    Space
Leases:    all leases, licenses to occupy space, concession agreements and other agreements for the use or occupancy of space within the Hotel with respect to which Seller is a signatory and a party, excluding any Operating
Agreements. 
  
 1.1.69    Survey:    as defined in
Section 5.2.2. 
  
 1.1.70    Taxes:    as defined in
Section 5.3.6. 
  
 1.1.71    Term Sheet:    the
non-binding term sheet dated November 13, 2001, between Seller and Existing Manager relating to certain contemplated modifications to the Existing Management Agreement. 
  
 1.1.72    Title Commitment:    as defined in Section 5.2.1. 
  
 1.1.73    Title Documents:    as defined in Section 5.2.1. 

 
 1.1.74    Title Company:    Fidelity National Title Insurance
Company, or such other nationally recognized title insurer selected by Purchaser and approved by Seller. 
  
 1.1.75    Title Objection Date:    as defined in Section 5.2.3. 
 

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 1.1.76    Title
Policy:    a leasehold policy of title insurance issued pursuant to the Title Commitment with liability limits in an aggregate amount of not less than the portion of the Purchase Price allocable to real property in accordance
with Section 2.4 (or, if the parties do not agree on an allocation in accordance with Section 2.4, the portion of the Purchase Price that Purchaser actually allocates to real property for federal income tax purposes), subject only to the Permitted
Exceptions. 
  
 1.1.77    Transaction Documents:    as
defined in Section 2.4. 
  
 1.2    Governing Law.    This Agreement
shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts (without reference to conflicts of laws principles). 
  
 1.3    Captions, Numberings and Headings.    Captions, numberings and headings of Articles, Sections, Schedules and Exhibits in this Agreement are for
convenience of reference only and shall not be considered in the interpretation of this Agreement. References in this Agreement to Articles, Sections, Schedules and Exhibits shall be deemed to be references to such Articles, Sections, Schedules and
Exhibits in this Agreement unless otherwise expressly specified. 
  
 1.4    Including.    The word “including” and variations thereof, when used in this Agreement, shall mean “including without limitation.” 
  
 1.5    Number; Gender.    Whenever required by the context, the singular shall include the
plural, the neuter gender shall include the male gender and female gender, and vice versa. 
  
 1.6    Business Day.    In the event that the date for performance of any obligation under this Agreement falls on other than a business day, then such obligation shall be performed on
the next succeeding business day. 
  
 1.7    Severability.    In the
event that one or more of the provisions of this Agreement shall be held to be illegal, invalid or unenforceable, each such provision shall be deemed severable and the remaining provisions of this Agreement shall continue in full force and effect,
unless this construction would operate as an undue hardship on Seller or Purchaser or would constitute a substantial deviation from the general intent of the parties as reflected in this Agreement. 
  
 1.8    No Oral Modifications or Waivers.    No modification of this Agreement shall be
valid or effective unless the same is in writing and signed by Seller and Purchaser. No purported waiver of any of the provisions of this Agreement shall be valid or effective unless the same is in writing and signed by the party against whom it is
sought to be enforced. 
  
 1.9    Exhibits.    All Schedules and
Exhibits referenced in this Agreement are incorporated by this reference as if fully set forth in this Agreement, and all references to this Agreement shall be deemed to include all such incorporated Schedules and Exhibits. 
 

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 1.10    Integration.    This
Agreement and all Schedules and Exhibits appended to this Agreement, and the documents and agreements referenced in this Agreement contain the entire understanding between Seller and Purchaser with respect to the sale of the Hotel, and are intended
to be a full integration of all prior or contemporaneous agreements, conditions, understandings or undertakings between Seller and Purchaser with respect thereto. There are no promises, agreements, conditions, undertakings, understandings,
warranties or representations, whether oral, written, express or implied, between Seller and Purchaser with respect to the sale of the Hotel other than as are expressly set forth in this Agreement and the Schedules and Exhibits appended to this
Agreement, and the documents and agreements referenced in this Agreement. 
  
 1.11    No
Construction Against Drafter.    This Agreement has been negotiated and prepared by Seller and Purchaser and their respective attorneys and, should any provision of this Agreement require judicial interpretation, the court
interpreting or construing such provision shall not apply the rule of construction that a document is to be construed more strictly against one party. 
  
 ARTICLE 2.     SALE OF HOTEL 
  
 2.1    Sale and Purchase of Hotel.    Subject to and in accordance with the terms of this Agreement, Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, the Hotel.

  
 2.2    Purchase Price.    The purchase price (“Purchase
Price”) for the sale and purchase of the Hotel shall be Two Hundred Fourteen Million One Hundred NinetyThree Thousand Seven Hundred Fifty Dollars ($214,193,750.00), subject to adjustment pursuant to Article 10. The Purchase Price shall be
payable as follows: 
  
 2.2.1    Purchaser shall purchase the Hotel subject to
the outstanding principal balance of the Existing Loan on the Closing Date; and 
  
 2.2.2 Purchaser
shall pay to Seller at Closing, in immediately available funds, an amount equal to the excess of the Purchase Price (as adjusted pursuant to Article 10) over the outstanding principal balance of the Existing Loan as of the Closing Date.

  
 2.3    Deposit.    Simultaneously with the execution and delivery
of this Agreement by both Seller and Purchaser, Purchaser shall deposit into escrow with Escrow Agent immediately available funds in the amount of Five Million Dollars ($5,000,000.00) (such sum, together with any interest thereon, the
“Deposit”). The Deposit shall be held, in accordance with the terms of the Escrow Agreement, in an interest-bearing account, and deposited in such investments as may be directed by Purchaser and approved by Seller. All interest on the
Deposit shall be part of the Deposit. At the Closing, the Deposit shall be paid to Seller and credited against the portion of the Purchase Price that is payable pursuant to Section 2.2.2. 
  
 2.4    Condition of Hotel.    Purchaser acknowledges for Purchaser and its successors and assignees: (i) that, assuming
Purchaser does not terminate this Agreement 
 

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in accordance with Section 5.1 at the end of the Due Diligence Period, Purchaser shall be deemed to confirm as of such date that Purchaser has been given a reasonable opportunity to inspect and
investigate the Hotel, and all aspects relating thereto existing as of such date, including all of the physical, environmental and operational aspects of the Hotel, either independently or through agents and experts of Purchaser’s choosing; and
(ii) that Purchaser will acquire the Hotel based upon Purchaser’s own investigation and inspection thereof, subject to any representations and warranties contained in this Agreement. SELLER AND PURCHASER AGREE THAT, EXCEPT AS EXPRESSLY
PROVIDED FOR IN THIS AGREEMENT, AND THE OTHER DOCUMENTS EXECUTED BY SELLER AT CLOSING (COLLECTIVELY, “TRANSACTION DOCUMENTS”), THE HOTEL SHALL BE SOLD AND PURCHASER SHALL ACCEPT POSSESSION OF THE HOTEL ON THE CLOSING DATE “AS
IS,” “WHERE IS,” AND “WITH ALL FAULTS,” WITH NO RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE (EXCEPT AS MAY BE EXPRESSLY PROVIDED HEREUNDER), AND THAT, EXCEPT AS EXPRESSLY PROVIDED IN THE TRANSACTION DOCUMENTS,
SUCH SALE SHALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WARRANTY OF INCOME POTENTIAL, OPERATING EXPENSES, USES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER
DOES HEREBY DISCLAIM AND RENOUNCE ANY SUCH REPRESENTATION OR WARRANTY, EXCEPT AS EXPRESSLY PROVIDED IN THE TRANSACTION DOCUMENTS. PURCHASER SPECIFICALLY ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY PROVIDED FOR IN THE TRANSACTION DOCUMENTS, PURCHASER IS
NOT RELYING AND SHALL NOT RELY ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, FROM SELLER AS TO ANY MATTERS CONCERNING THE HOTEL, INCLUDING: (A) THE CONDITION OR SAFETY OF
THE HOTEL, INCLUDING PLUMBING, SEWER, HEATING AND ELECTRICAL SYSTEMS, ROOFING, AIR CONDITIONING, FOUNDATIONS, SOILS AND GEOLOGY INCLUDING HAZARDOUS MATERIALS, LOT SIZE, OR SUITABILITY OF THE HOTEL FOR A PARTICULAR PURPOSE; (B) WHETHER THE
APPLIANCES, IF ANY, PLUMBING OR UTILITIES AND ANY ASSOCIATED METERS ARE IN WORKING ORDER; (C) THE LIABILITY OR SUITABILITY FOR OCCUPANCY OF ANY STRUCTURE AND THE QUALITY OF ITS CONSTRUCTION; (D) THE FITNESS OF ANY PERSONAL PROPERTY; OR
(E) WHETHER THE IMPROVEMENTS ARE STRUCTURALLY SOUND, IN GOOD CONDITION, OR IN COMPLIANCE WITH APPLICABLE CITY, COUNTY, STATE OR FEDERAL STATUTES, CODES OR ORDINANCES. EXCEPT AS EXPRESSLY PROVIDED IN THE TRANSACTION DOCUMENTS, ANY REPORTS, REPAIRS OR
WORK REQUIRED BY PURCHASER ARE TO BE THE SOLE RESPONSIBILITY OF PURCHASER AND PURCHASER AGREES THAT THERE IS NO OBLIGATION ON THE PART OF SELLER TO MAKE ANY CHANGES, ALTERATIONS OR REPAIRS TO THE HOTEL. THE PROVISIONS OF THIS SECTION 2.4 SHALL
SURVIVE THE CLOSING. 
  
 ARTICLE 3.    SELLER’S REPRESENTATIONS AND WARRANTIES

  
 Seller hereby represents and warrants to Purchaser as follows: 
  
 3.1    Doing Business.    Seller is duly formed, validly existing and in good standing
under the laws of The Commonwealth of Massachusetts, and has full power and authority to conduct the business in which it is now engaged. 
 

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 3.2    Due Authorization.    The
execution, delivery and performance of this Agreement by Seller and the consummation by Seller of the transactions contemplated by this Agreement have been duly and validly authorized by all requisite actions of Seller. Assuming the due execution
and delivery of this Agreement by Purchaser, this Agreement constitutes the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. 
  
 3.3    No Violations.    The execution, delivery and performance of this Agreement by Seller and the consummation by Seller
of the transactions contemplated by this Agreement will not: (i) violate any Legal Requirement or any order of any court or governmental authority that is binding on Seller or, to the best of Seller’s knowledge, the Hotel; or (ii) result in a
breach of or default under (A) any contract or other agreement to which Seller is a party or, to the best of Seller’s knowledge, by which the Hotel is bound (subject to the consent of Existing Lender pursuant to Section 5.7) or (B) any
provision of the organizational documents of Seller. 
  
 3.4    Bankruptcy.    Seller is not the subject debtor under any federal, state or local bankruptcy or insolvency proceeding, or any other proceeding for dissolution, liquidation or
winding up of its assets. 
  
 3.5    Litigation.    To the best of
Seller’s knowledge, there are no Actions pending or threatened against Seller or affecting the Hotel before any court or governmental authority, an adverse determination of which would materially adversely affect (i) the financial condition or
operations of the Hotel, (ii) Seller’s ability to enter into or perform this Agreement, or (iii) Seller’s title to the Hotel. To the best of Seller’s knowledge, Schedule 3.5 sets forth all pending Actions which relate to the
Hotel. 
  
 3.6    Violations of Law.    To the best of Seller’s
knowledge, Seller and Existing Manager have received no written notice from any governmental authority alleging a violation of any Legal Requirement that has not been corrected. 
  
 3.7    Condemnation Actions.    To Seller’s knowledge, there are no pending condemnation actions of any nature with
respect to the Hotel, and Seller has no knowledge of any threatened or contemplated condemnation action. 
  
 3.8    Contracts.    To the best of Seller’s knowledge, all Contracts are listed in Schedule 3.8. To the best of Seller’s knowledge, all such Contracts are in full force
and effect, and there are no defaults or events that with notice or lapse of time or both would constitute a default by any party under any such Contract. Seller has provided to Purchaser correct and complete copies of all such Contracts. To the
best of Seller’s knowledge, there are no amendments, modifications, terminations, side letters, guaranties or other agreements affecting the duties and obligations of the parties to such Contracts, except as listed in Schedule 3.8.

  
 3.9    Equipment Leases.     To the best of Seller’s
knowledge, all Equipment Leases are listed in Schedule 3.9. To the best of Seller’s knowledge, all such Equipment Leases are in full force and effect, and there are no defaults or events that with notice or 
 

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lapse of time or both would constitute a default by any party under any such Equipment Lease. Seller has provided to Purchaser correct and complete copies of all such Equipment Leases. To the
best of Seller’s knowledge, there are no amendments, modifications, terminations, side letters, guaranties or other agreements affecting the duties and obligations of the parties to such Equipment Leases, except as listed in Schedule
3.9. 
  
 3.10    Space Leases.    To the best of Seller’s
knowledge, all Space Leases are listed in Schedule 3.10. To the best of Seller’s knowledge, all such Space Leases are in full force and effect, and there are no defaults or events that with notice or lapse of time or both
would constitute a default by any party under any such Space Lease. Seller has provided to Purchaser correct and complete copies of all such Space Leases. To the best of Seller’s knowledge, there are no amendments, modifications, terminations,
side letters, guaranties or other agreements affecting the duties and obligations of the parties to such Space Leases, except as listed in Schedule 3.10. All brokerage commissions, finder’s fees and similar compensation in connection
with the procurement of all such Space Leases have been paid in full. 
  
 3.11    Management
Agreement.    There are no management, franchise, license or similar agreements to which Seller or any affiliate of Seller is a party with Existing Manager or any other affiliate of Marriott International, Inc. relating to
the Hotel other than the Existing Management Agreement. To the best of Seller’s knowledge, the Existing Management Agreement is in full force and effect, and (except as described in the Term Sheet) there are no defaults or events that with
notice or lapse of time or both would constitute a default by any party under the Existing Management Agreement. Seller has provided to Purchaser correct and complete copies of the Existing Management Agreement and the Term Sheet. There are no
amendments, modifications, terminations, side letters, guaranties or other agreements affecting the duties and obligations of the parties to the Existing Management Agreement, except as described in Schedule 3.11. 
  
 3.12    Parking Agreements.    To the best of Seller’s knowledge, all Parking
Agreements, if any, to which Seller is a party are listed in Schedule 3.12. To the best of Seller’s knowledge, all such Parking Agreements to which Seller is a party are in full force and effect, and there are no defaults or events that
with notice or lapse of time or both would constitute a default by any party under any such Parking Agreements. Seller has provided to Purchaser correct and complete copies of all such Parking Agreements to which Seller is a party. To the best of
Seller’s knowledge, except as listed in Schedule 3.12, there are no amendments, modifications, terminations, side letters, guaranties or other agreements affecting the duties and obligations of the parties to such Parking Agreements to
which Seller is a party. To the best of Seller’s knowledge, the Parking Agreement listed on Schedule 3.12 as the “Valet Parking Agreement” is the only Parking Agreement to which Existing Manager is a party. To the best of
Seller’s knowledge, such Valet Parking Agreement is in full force and effect, and there are no defaults or events that with notice or lapse of time or both would constitute a default by any party under such Valet Parking Agreement. Seller has
provided to Purchaser correct and complete copies of such Valet Parking Agreement. To the best of Seller’s knowledge, there are no amendments, modifications, terminations, side letters, guaranties or other 
 

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agreements affecting the duties and obligations of the parties to such Valet Parking Agreement. To the best of Seller’s knowledge, the “Lessee” under the Valet Parking Agreement
has licensed valet parking operations under the Valet Parking Agreement to Standard Parking, which is currently operating the valet parking service for the parking facility. 
  
 3.13    Environmental Matters.    Seller has provided to Purchaser a correct and complete copy of the reports and materials
described on Schedule 3.13 (collectively, “Environmental Reports”). Other than as set forth in the Environmental Reports: 
  
 3.13.1    To the best of Seller’s knowledge, Seller and Existing Manager have received no written notice from any governmental authority of any actual or potential violation of
or failure to comply with any Environmental Laws with respect to the Hotel which remains uncorrected, or of any actual or threatened obligation to undertake or bear the cost of any environmental, health, or safety clean-up, removal, containment, or
other remediation under any Environmental Law with respect to the Hotel which remains unperformed. 
  
 3.13.2    To the best of Seller’s knowledge, there are no pending or threatened Actions arising under or pursuant to any Environmental Laws, with respect to or affecting the Hotel. 
  
 3.13.3    To the best of Seller’s knowledge, other than (i) Hazardous Substances used in the
ordinary course of maintaining and cleaning the Hotel in commercially reasonable amounts, and (ii) Hazardous Substances used as fuels, lubricants or otherwise in connection with vehicles, machinery and equipment located at the Hotel in commercially
reasonable amounts, no Hazardous Substances are present on or in the Hotel. To the best of Seller’s knowledge, the Hazardous Substances described in the foregoing clauses (i) and (ii) are being used and disposed of in compliance with all
Environmental Laws. 
  
 3.13.4    To the best of Seller’s knowledge, there
has been no release or threat of release of Hazardous Substances at or from the Hotel. 
  
 3.14    Employment Matters.    Seller does not employ any natural person at the Hotel. Neither Seller nor, to the best of Seller’s knowledge, Existing Manager has in existence any
collective bargaining agreement or other agreements with any labor union relating to Persons employed in connection with the Hotel. 
  
 3.15    Financial Information.    Seller has provided to Purchaser correct and complete copies of the profit and loss statements for the Hotel prepared by Existing Manager for
(i) the 1999, 2000 and 2001 Fiscal Years, and (ii) the first four (4) Accounting Periods for the 2002 Fiscal Year. To the best of Seller’s knowledge, such statements are correct in all material respects (except with respect to calculation of
the “Basic Incentive Fee,” the “Bonus Incentive Fee,” and Seller’s contribution to the FF&E Reserve under the Existing Management Agreement as described in the Term Sheet and in Section 5.4.3). 
 

 12 

 3.16    Permits.    To the best of Seller’s knowledge, neither Seller
nor Existing Manager has received written notice from any governmental authority that remains uncured regarding (i) any actual or alleged violation of, or failure to comply with, any term or requirement of any of the Permits, or (ii) any actual or
alleged revocation, withdrawal, suspension, cancellation, or termination of, or modification to, any of the Permits. 
  
 3.17    Existing Loan.    The Existing Loan Documents are listed in Schedule 3.17. All Existing Loan Documents are in full force and effect, and, to the best of Seller’s
knowledge, there are no defaults or events that with notice or lapse of time or both would constitute a default by any party under any Existing Loan Document. Seller has provided to Purchaser correct and complete copies of the Existing Loan
Documents. There are no amendments, modifications, terminations, subordinations, side letters or other agreements affecting the duties and obligations of the parties to the Existing Loan Documents, except as listed in Schedule 3.17.

  
 3.18    Lease.    Seller has provided to Purchaser a correct and
complete copy of the Lease. To the best of Seller’s knowledge, the Lease is in full force and effect, and there are no defaults or events that with notice or lapse of time or both would constitute a default by any party under the Lease. There
are no amendments, modifications, terminations, side letters, guaranties or other agreements affecting the duties and obligations of the parties to the Lease. 
  
 3.19    Personal Property.    Seller is the owner of good title to the Furnishings, Consumables, Expendables, Miscellaneous Hotel Assets, Permits and
Intellectual Property (or good leasehold title in the case of property that is subject to an Equipment Lease), free and clear of all Encumbrances other than the lien of the Existing Loan Documents. 
  
 3.20    Budgets.    For purposes of the Existing Management Agreement, (i) the current
“Annual Operating Projection” for the 2002 Fiscal Year is attached as Schedule 3.20A, and (ii) the proposed “2002 Capital Expenditure Budget Summary” is attached as Schedule 3.20B. 
  
 3.21    Renovation.    All Renovation Agreements to which Seller is a party are listed in
Section A of Schedule 3.21A. To the best of Seller’s knowledge, all Renovation Agreements are in full force and effect, and to the best of Seller’s knowledge, there are no defaults or events that with notice or lapse of time or both
would constitute a default by any party under any Renovation Agreement. Seller has provided to Purchaser correct and complete copies of the Renovation Agreements. There are no amendments, modifications, terminations, side letters, guaranties or
other agreements affecting the duties and obligations of the parties to the Renovation Agreements, except as listed in Schedule 3.21A. The budget attached as Schedule 3.21B (the “Renovation Budget”) sets forth all
costs that Seller, as of the Contract Date, anticipates incurring in connection with the Renovation. To the best of Seller’s knowledge, except as disclosed to Purchaser in writing by Seller, neither Seller nor Existing Manager has received
written notice from any Person asserting a right or intention to record a mechanics’ lien or materialmen’s lien 
 

 13 

 
against the Hotel with respect to the Renovation. To the best of Seller’s knowledge, no invoice relating to the Renovation is thirty (30) or more days past due. 
  
 3.22    FF&E Reserve.    As of the commencement of the 2002 Fiscal Year, the amount on
deposit in the FF&E Reserve was $9,061,756.00. 
  
 3.23    Seller’s Tax
Status.    Seller has not elected to be treated as a corporation for federal income tax purposes. 
  
 3.24    Sale of Substantially All Assets.    The consummation of the Closing under this Agreement will constitute the sale of substantially all of Seller’s assets. 

 
 ARTICLE 4.    PURCHASER’S REPRESENTATIONS AND WARRANTIES 
  
 Purchaser hereby represents and warrants to Seller as follows: 
  
 4.1    Good Standing.    Purchaser is a limited liability company, duly organized, validly existing and in good standing
under the laws of the State of Delaware. 
  
 4.2    Due
Authorization.    The execution, delivery and performance of this Agreement by Purchaser and the consummation by Purchaser of the transactions contemplated by this Agreement have been duly and validly authorized by all
requisite actions of Purchaser. Assuming the due execution and delivery of this Agreement by Seller, this Agreement constitutes the valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms. 

 
 4.3    No Violations.    The execution, delivery and performance of this
Agreement by Purchaser and the consummation by Purchaser of the transactions contemplated by this Agreement will not: (i) violate any Legal Requirement or any order of any court or governmental authority that is binding on Purchaser; or (ii) result
in a breach of or default under (A) any contract or other agreement to which Purchaser is a party or (B) any provision of the organizational documents of Purchaser. 
  
 4.4    Bankruptcy.    Purchaser is not the subject debtor under any federal, state or local bankruptcy or insolvency
proceeding, or any other proceeding for dissolution, liquidation or winding up of its assets. 
  
 4.5    Litigation.    There are no Actions pending or, to the knowledge of Purchaser, threatened against Purchaser before any court or governmental authority, an adverse determination of
which would materially adversely affect Purchaser’s ability to enter into or perform this Agreement. 
  
 ARTICLE
5.    ACTIONS PENDING CLOSING AND OTHER COVENANTS 
  
 5.1    Due
Diligence Period. 
  
 5.1.1    Prior to Closing, Purchaser shall have the
right, upon reasonable notice to Seller and Existing Manager, at its own risk, cost and expense, to enter, or cause 
 

 14 

 
its agents or representatives to enter, upon the Hotel for the purpose of making such surveys, tests, inspections, investigations and/or studies of the Hotel, as Purchaser may, in its sole
discretion, deem desirable. In addition, Purchaser may conduct such architectural, environmental, economic, feasibility, and other studies of the Hotel as Purchaser may, in its sole discretion, deem desirable. Prior to any invasive testing of the
Hotel, or any entry onto the Land or the Hotel, Purchaser shall obtain Seller’s approval of the scope of Purchaser’s testing and of the insurance coverage of Purchaser and its agents and contractors, which approval Seller agrees not to
unreasonably withhold. All inspections of the Hotel shall be conducted in a manner not unreasonably disruptive to, or likely to materially interfere with, Existing Manager, tenants, guests, invitees or employees at the Hotel, and Purchaser shall
indemnify and hold Seller harmless from any claims, damages, demands, penalties, causes of action, losses, costs and expenses (including reasonable attorneys’ fees) for personal injury, property damage or loss or lien claims asserted by any
Person to the extent caused by acts or omissions of Purchaser or its representatives or independent contractors in the course of Purchaser’s inspection of the Hotel prior to Closing. Notwithstanding any other provision of this Agreement to the
contrary, the foregoing indemnity shall survive Closing or any termination of this Agreement. 
  
 5.1.2    At any time prior to 6:00 p.m. (local Boston, Massachusetts time) on June 7, 2002 (“Due Diligence Period”), Purchaser, in its sole discretion, shall have the right to give written notice
to Seller that it is terminating this Agreement. Upon any such termination, the Deposit shall be immediately returned to Purchaser and neither party shall have any further liabilities or obligations under this Agreement other than those that
expressly survive termination of this Agreement. Failure of Purchaser to notify Seller of its termination of this Agreement pursuant to this Section 5.1.2 shall be deemed a waiver by Purchaser of such termination right. 
  
 5.1.3    In connection with Purchaser’s review during the Due Diligence Period, Seller shall
promptly deliver to Purchaser, or make available to Purchaser at the Hotel, all documents reasonably requested by Purchaser that are in Seller’s possession and that deal directly or indirectly with the Hotel. In connection with Purchaser’s
review during the Due Diligence Period, Seller shall use commercially reasonable efforts to cause the Existing Manager to deliver promptly to Purchaser, or to make available to Purchaser at the Hotel, all documents reasonably requested by Purchaser
that are in the Existing Manager’s possession and that deal directly or indirectly with the Hotel. 
  
 5.2    Title and Survey. 
  
 5.2.1    Purchaser shall cause the Title Company to deliver to Purchaser and Seller a current commitment for a Leasehold Policy of Title Insurance (“Title Commitment”) with respect to the Hotel,
with copies of all documents referred to in the Title Commitment (the “Title Documents”). 
  
 5.2.2    At its option, Purchaser may obtain a current survey of the Land and Improvements (“Survey”), which Survey shall be in accordance with the Minimum Standard Detail Requirements and
Classifications for ALTA/ACSM Land Title Surveys 
 

 15 

 
published in 1999. If Purchaser elects to obtain a Survey, Purchaser shall provide a copy of the Survey to Seller promptly upon its completion. 
  
 5.2.3    On or before June 7, 2002 (“Title Objection Date”), Purchaser shall notify
Seller of any items (“Objections”) in the Title Commitment or Survey to which Purchaser objects. Except to the extent that Purchaser notifies Seller of any Objections in accordance with the foregoing sentence, and except for any
items that Seller is otherwise obligated to cure at or prior to the Closing in accordance with this Agreement, any item reflected in the Title Commitment or the Survey shall be deemed to have been approved by Purchaser and shall be Permitted
Exceptions for all purposes under this Agreement. Seller shall cure those matters described in Section 5.2.4 and, in addition, Seller may, but except as expressly provided herein shall not be obligated to, cure those matters not described in Section
5.2.4 but as to which Purchaser has timely notified Seller of its Objection, to Purchaser’s and the Title Company’s reasonable satisfaction. Seller shall give notice to Purchaser on or before two (2) business days following Seller’s
receipt of notice of the Objections from Purchaser, stating whether Seller agrees to cure each such Objection prior to the Closing. If Seller fails timely to give such notice, then Seller shall be conclusively deemed to have elected not to cure any
such Objections other than those matters described in Section 5.2.4. If Seller elects (or is deemed to elect) not to agree to cure any such Objections, then Purchaser may either (i) waive such Objections, in which event such waived Objections shall
become Permitted Exceptions for all purposes under this Agreement or (ii) terminate this Agreement by written notice to Seller, whereupon the Deposit shall be promptly returned to Purchaser and the parties shall have no further rights or liabilities
under this Agreement other than those that expressly survive the termination of this Agreement. Purchaser shall make the election described in the preceding sentence by written notice to Seller on or before two (2) business days following receipt of
Seller’s notice (or Seller’s deemed election, if Seller shall fail to provide such notice), and in the event Purchaser does not make such election, Purchaser shall be conclusively deemed to have waived all Objections other than those
described in Section 5.2.4 and those that Seller has agreed to cure in accordance with this Section 5.2.3. Seller shall cure at or before the Closing any Objection that it has agreed to cure in accordance with this Section 5.2.3. 

 
 5.2.4    Whether or not Purchaser shall have notified Seller of any Objection thereto,
Seller shall cure at or before the Closing (i) any mortgage, deed of trust or similar lien affecting the Hotel other than the lien of the Existing Loan Documents, and (ii) any mechanics’ lien (except inchoate liens arising under the Renovation
Agreements), judgment lien or other monetary lien affecting the Hotel, which may be removed by the payment of a liquidated sum of money, and Seller may not refuse to cure the same. Seller may use a portion of the Purchase Price to effect such cure
at Closing. 
  
 5.2.5    On the Closing Date, Seller shall convey to Purchaser
good and marketable leasehold title to the Land, and good and marketable title to all other elements of the Hotel, subject only to the Permitted Exceptions. From and after the Contract Date and prior to Closing, Seller shall not record, or consent
to the recording of, any Encumbrance in the land records affecting title to the Hotel without the prior written consent of Purchaser. 
 

 16 

  
 5.3    Operation of
Hotel.    Prior to Closing, unless Purchaser consents otherwise in writing, which consent may be given or withheld in Purchaser’s reasonable discretion: 
  
 5.3.1    Seller shall not take any action or fail to take any action which would cause Existing Manager to continue to operate the Hotel
other than in the ordinary course consistent with the practices and procedures in effect as of the Contract Date and the Existing Management Agreement, including with respect to the level of Expendables and Consumables and the manner in which the
Hotel is repaired and maintained, except to the extent that this Agreement expressly provides otherwise. Seller shall not commit or knowingly permit to be committed any waste with respect to the Hotel. 
  
 5.3.2    Seller shall continue to maintain the insurance currently carried by Seller (or by Existing
Manager on behalf of Seller) with respect to the Hotel. 
  
 5.3.3    Seller shall
not enter into, terminate, amend or otherwise modify any Contract, Equipment Lease or Space Lease. To the extent Seller has a right of approval under the Existing Management Agreement, Seller shall not approve the entering into, termination,
amendment or other modification of any Operating Agreement without Purchaser’s prior written consent. Prior to Closing, Seller shall (i) comply with all of its obligations under the Contracts, Equipment Leases and Spaces Leases, if any, (ii)
use reasonable efforts to cause the other parties to the Contracts, Equipment Leases and Space Leases to comply with their respective obligations thereunder, and (iii) not waive or release any material liability or obligation under any Contract,
Equipment Lease or Space Lease. 
  
 5.3.4    Seller shall not, and shall not
permit, subject to Existing Manager’s rights under the Existing Management Agreement, Existing Manager to, market, sell, pledge, convey, remove or permit or suffer the removal of or offer to sell any portion of the Hotel, except for items sold
or consumed in the ordinary course of business or rendered obsolete or unnecessary by the Renovation. 
  
 5.3.5    Seller shall, and shall use commercially reasonable efforts to cause Existing Manager to, cooperate with Purchaser in all reasonable respects in connection with the transfer to Purchaser of existing
Permits held by Seller or the issuance of new Permits to Purchaser each to be effective no earlier than Closing. 
  
 5.3.6    Seller shall pay (or cause to be paid by Existing Manager) all personal, real property, sales, use, occupancy, rooms, income, franchise, gross receipts and other taxes (“Taxes”) which
become due and payable by Seller or accrue or relate to any period prior to Closing in connection with the Hotel, provided that upon notice to Purchaser, Seller may contest the imposition of any such taxes in good faith and by appropriate
proceedings. 
  
 5.4    Existing Management Agreement. 
  
 5.4.1    Prior to Closing, Seller shall (i) comply with all of its obligations under the Existing
Management Agreement, (ii) use reasonable efforts to cause Existing 
 

 17 

 
Manager to comply with its obligations tinder the Existing Management Agreement, (iii) except as set forth in Section 5.4.3, not modify the Existing Management Agreement, or waive or release any
material liability or obligation thereunder, and (iv) not terminate the Existing Management Agreement. 
  
 5.4.2    Prior to Closing, Seller shall use commercially reasonable efforts to cause Existing Manager to deliver to Purchaser an estoppel certificate (“Manager’s Estoppel Certificate”) in the
form of Exhibit E, dated on or prior to the Closing Date. If Seller is unable to cause Existing Manager to deliver such Manager’s Estoppel Certificate to Purchaser, then Seller shall deliver to Purchaser at Closing a certificate,
executed by Seller and dated as of the Closing Date, covering the same information as is required under the Manager’s Estoppel Certificate (“Seller’s Management Agreement Estoppel Certificate”). Seller’s Management
Agreement Estoppel Certificate shall provide that Seller indemnifies and holds Purchaser harmless in the event that any information in Seller’s Management Agreement Estoppel Certificate is incorrect in any material respect, such agreement to
indemnify Purchaser to expressly survive Closing. 
  
 5.4.3    Prior to or
concurrently with the Closing, Seller shall settle all claims of Existing Manager for additional “Basic Incentive Fees” and “Bonus Incentive Fees” under the Existing Management Agreement that are based upon treating deposits into
the FF&E Reserve as a “Deduction” (as all such terms are defined in the Existing Management Agreement). Seller shall not, in such settlement or otherwise, waive or release Existing Manager from any claims Seller may have against
Existing Manager other than claims directly relating to the payment of such incentive fees to Existing Manager. 
  
 5.5    Lease. 
  
 5.5.1    Prior to
Closing, Seller shall (i) comply with all of its obligations under the Lease, (ii) use reasonable efforts to cause the Lessor to comply with its obligations under the Lease, (iii) not modify the Lease, or waive or release any material liability or
obligation thereunder, and (iv) not terminate the Lease. 
  
 5.5.2    Prior to
Closing, Seller shall use commercially reasonable efforts to cause the Lessor to deliver to Purchaser an estoppel certificate (“Lessor’s Estoppel Certificate”) in the form of Exhibit F, dated on or prior to the Closing
Date. 
  
 5.6    Parking Agreements. 
  

5.6.1    Prior to Closing, Seller shall (i) comply with all of its obligations under the Parking Agreements, (ii) use reasonable
efforts to cause the parties to the Parking Agreements to comply with their obligations under the Parking Agreements, (iii) not modify the Parking Agreements, or waive or release any material liability or obligation thereunder, (iv) not terminate
the Parking Agreements, and (v) not enter into any other agreements regarding the operation of the parking garage within the Hotel. 
  
 5.6.2    Prior to Closing, Seller shall (i) use commercially reasonable efforts to cause the parties to the Parking Agreement listed on Schedule 3.12 as the

 

 18 

 
“Valet Parking Agreement” to deliver to Purchaser an estoppel certificate (“Valet Parking Estoppel Certificate”) in the form of Exhibit G, dated on or prior to
the Closing Date, and (ii) cause the parties to the Parking Agreement listed on Schedule 3.12 as the “Sublease” to deliver to Purchaser an estoppel certificate (together with the Valet Parking Estoppel Certificate, “Parking
Estoppel Certificates”) in the form of Exhibit H, dated on or prior to the Closing Date. 
  
 5.7    Existing Loan. 
  
 5.7.1    Prior to Closing, Seller shall (i) comply with all of its obligations under the Existing Loan Documents, (ii) use reasonable efforts to cause Existing Lender to comply with its obligations under the
Existing Loan Documents, (iii) not modify the Existing Loan Documents, or waive or release any material liability or obligation thereunder, and (iv) not terminate the Existing Loan Documents. 
  

5.7.2    Prior to Closing, Seller shall use commercially reasonable efforts to cause Existing Lender to deliver to Purchaser an
estoppel certificate (“Lender’s Estoppel Certificate”) in the form of Exhibit I, dated on or prior to the Closing Date. 
  
 5.7.3    Promptly following the Contract Date, Seller and Purchaser shall use commercially reasonable efforts (but without any material
expense to Seller) to cause Existing Lender to approve (i) the transaction contemplated by this Agreement and the continuation of the Existing Loan from and after Closing, (ii) the lease of the Hotel by Purchaser, from and after Closing, to a
taxable REIT subsidiary of Purchaser, (iii) the amendment dated as of February 1, 2002 to the original Chilled Water Agreement, and (iv) the release of Seller and its affiliates from liabilities accruing from and after Closing under the existing
Guaranty and Unsecured Indemnity that are included within the Existing Loan Documents. Such approval shall be on terms and conditions, and pursuant to documentation (the “Loan Continuation Documents”), reasonably acceptable to
Seller and Purchaser. All fees and charges of Existing Lender relating to such approval and the Loan Continuation Documents shall be paid by Purchaser. 
  
 5.8    Chilled Water Agreement. 
  
 5.8.1    Prior to Closing, Seller shall (i) comply with all of its obligations under the Chilled Water Agreement, (ii) use reasonable efforts to cause the “Central Tenant” to comply with its obligations
under the Chilled Water Agreement, (iii) not modify the Chilled Water Agreement, or waive or release any material liability or obligation thereunder, and (iv) not terminate the Chilled Water Agreement. 
  
 5.8.2    Prior to Closing, Seller shall cause the Central Tenant to deliver to Purchaser an estoppel
certificate (“Chilled Water Estoppel Certificate”) in the form of Exhibit J, dated on or prior to the Closing Date. 
  
 5.9    Easement Agreements. 
  
 5.9.1    Prior to Closing, Seller shall (i) comply with all of its obligations under the easement agreements identified on Schedule 5.9 (the “Easement 
 

 19 

 
Agreements”), (ii) use reasonable efforts to cause the parties to the Easement Agreements to comply with their obligations under the Easement Agreements, (iii) not modify the
Easement Agreements, or waive or release any material liability or obligation thereunder, and (iv) not terminate the Easement Agreements. 
  
 5.9.2    Prior to Closing, Seller shall cause the “Central Tenant” (as defined in the Easement Agreements) to deliver to Purchaser an estoppel certificate
(“Easement Estoppel Certificate”) in the form of Exhibit K, dated on or prior to the Closing Date 
  
 5.10    Renovation.    Prior to Closing, Seller shall (i) execute, or cause Existing Manager to execute, all of the Renovation Agreements, (ii) comply with all of its obligations under
the Renovation Agreements, (iii) use reasonable efforts to cause the parties to the Renovation Agreements to comply with their obligations under the Renovation Agreements, (iv) not modify the Renovation Agreements, or waive or release any material
liability or obligation thereunder, (v) not terminate the Renovation Agreements, (vi) continue, or shall cause Existing Manager to continue, the Renovation program, (vii) promptly notify Purchaser of any material change in the Renovation Budget, and
(viii) promptly obtain the consent of all parties to the Renovation Agreements whose consent is required for the assignment of Seller’s interest therein to Purchaser. 
  
 5.11    Notification.    Prior to Closing, Seller and Purchaser shall each promptly notify the other in writing if it becomes
aware of any fact or condition that causes or constitutes a breach of any of Seller’s or Purchaser’s representations or warranties as of the Contract Date, or if it becomes aware of any fact or condition that would (except as expressly
contemplated by this Agreement) cause or constitute a breach of such representation or warranty had such representation or warranty been made as of the time of occurrence or discovery of such fact or condition. Prior to Closing, each of Seller and
Purchaser shall promptly notify the other in writing if it becomes aware of the occurrence of any breach of any covenant in this Article 5 or of the occurrence of any event that makes the satisfaction of the conditions in Article 6 impossible or
unlikely. 
  
 5.12    Satisfaction of Conditions.    Prior to Closing,
Seller and Purchaser shall each use commercially reasonable efforts to satisfy the conditions to Closing set forth in Article 6. 
  
 5.13    Liquor License. 
  
 5.13.1    Promptly following the Contract Date, Purchaser, at its sole cost and expense, shall make all necessary applications for, and shall diligently pursue, issuance of all licenses and approvals required
under any Legal Requirements for the continued sale of alcoholic beverages at the Hotel from and after the Closing Date consistent with the practices and procedures in effect as of the Contract Date (collectively, “New Liquor
License”). Purchaser shall keep Seller informed of the status of such applications, and shall promptly respond to Seller’s inquiries regarding the status of the same. Seller shall use good faith, commercially reasonable efforts,
without cost to 
 

 20 

 
Seller, to assist Purchaser and to obtain the cooperation of Existing Manager in assisting Purchaser in obtaining the New Liquor License. 
  

5.13.2    If the New Liquor License has not been issued with respect to the Hotel as of the date that Closing is otherwise required
to occur under this Agreement, Seller shall, and shall use good faith, commercially reasonable efforts to cause Existing Manager to, enter into an interim liquor management agreement (“Interim Liquor Agreement”) that will permit
Existing Manager to continue the sale of alcoholic beverages at the Hotel from and after the Closing Date consistent with the practices and procedures in effect as of the Contract Date, provided that the Interim Liquor Agreement is, in the judgment
of Seller and Purchaser, each acting reasonably and in good faith, permitted by local custom or practice and Legal Requirements. The Interim Liquor Agreement shall (i) be in form and substance reasonably satisfactory to Seller and Purchaser, (ii) if
Seller is a party, provide for the indemnification by Purchaser of Seller with respect to all liabilities related to the sale or consumption of alcoholic beverages at the Hotel from and after the Closing Date, and (iii) expire on the earlier to
occur of issuance of the New Liquor License or the date that is one hundred eighty (180) days after the Closing Date. 
  
 5.14    Ownership of Mall.    Purchaser acknowledges that Seller has disclosed to Purchaser that as of the Contract Date, (i) an affiliate of Seller is the managing member of Copley
Place Associates, LLC, the owner of the shopping mall adjoining the Hotel, and (ii) such affiliate is in the process of transferring, directly or indirectly, such membership interest to an affiliate of Simon Property Group, Inc. 

 
 ARTICLE 6.    CONDITIONS TO CLOSING 
  
 6.1    Purchaser’s Conditions to Closing.    The obligation of Purchaser to consummate the Closing shall be subject to
the satisfaction of each of the following conditions, any or all of which may be waived in whole or in part by Purchaser: 
  
 6.1.1    Each of Seller’s representations and warranties set forth in this Agreement shall be correct in all material respects as of the Closing Date, and Seller shall have delivered to Purchaser a
certificate to that effect pursuant to Section 7.2.6. 
  
 6.1.2    Seller shall
have performed all of its obligations under this Agreement required at or prior to Closing in all material respects. 
  
 6.1.3    The Title Company shall be unconditionally committed to issue the Title Policy to Purchaser, effective as of the Closing Date, except to the extent that the failure of this condition results from
the failure of Purchaser to obtain the Title Commitment pursuant to Section 5.2. 
  
 6.1.4    If required under any Legal Requirements for the continued sale of alcoholic beverages at the Hotel from and after the Closing Date consistent with the practices and procedures in effect as of the
Contract Date, a New Liquor License shall have been issued with respect to the Hotel, or Seller or Existing Manager shall have entered into an Interim Liquor Agreement in accordance with Section 5.13. 
 

 21 

  
 6.1.5    Purchaser shall have received either
the executed Manager’s Estoppel Certificate or Seller’s Management Agreement Estoppel Certificate. 
  
 6.1.6    Purchaser shall have received the executed Lessor’s Estoppel Certificate. 
  
 6.1.7    Purchaser shall have received the executed Parking Estoppel Certificates, Chilled Water Estoppel Certificate, Easement Estoppel Certificates, and Lender’s Estoppel
Certificate, each dated on or prior to the Closing Date. 
  
 6.1.8    Existing
Lender shall have (i) approved the transaction contemplated by this Agreement and the lease of the Hotel by Purchaser from and after Closing to a taxable REIT subsidiary of Purchaser, (ii) executed and delivered the Loan Continuation Documents,
(iii) approved the amendment dated as of February 1, 2002 to the original Chilled Water Agreement, and (iv) executed and delivered the release of Seller and its affiliates from liabilities accruing from and after Closing under the existing Guaranty
and Unsecured Indemnity that are included within the Existing Loan Documents. 
  
 6.1.9    There are no Actions pending against Seller or affecting the Hotel before any court or governmental authority, an adverse determination of which could reasonably be expected to have a material adverse
effect on the operation of the Hotel or the consummation of the transactions contemplated hereby. 
  
 6.2    Failure of Purchaser’s Condition.    In the event of the failure of any condition precedent set forth in Section 6.1, and such failure has not be cured by June 14, 2002,
Purchaser, at its sole election, may (i) terminate this Agreement and receive a return of the Deposit, in which event neither party to this Agreement shall thereafter have any further rights or liabilities under this Agreement other than those that
expressly survive termination of this Agreement, or (ii) waive the condition and proceed to Closing. If the failure of any condition precedent set forth in Section 6.1 arises from Seller’s breach of this Agreement, Purchaser may also avail
itself of any remedies provided in Section 8.3. 
  
 6.3    Seller’s Conditions to
Closing.    The obligation of Seller to consummate the Closing shall be subject to the satisfaction of each of the following conditions, any or all of which may be waived in whole or in part by Seller: 

 
 6.3.1    Each of Purchaser’s representations and warranties set forth in this
Agreement shall be correct in all material respects as of the Closing Date, and Purchaser shall have delivered to Seller a certificate to that effect pursuant to Section 7.3.5. 
  
 6.3.2    Purchaser shall have performed all of its obligations under this Agreement required at or prior to Closing in all material
respects. 
  
 6.3.3    Existing Lender shall have approved the transaction
contemplated by this Agreement and executed and delivered the Loan Continuation Documents. 
 

 22 

  
 6.4    Failure of Seller’s
Condition.    In the event of the failure of any condition precedent set forth in Section 6.3, and such failure has not been cured by June 14, 2002, Seller, at its sole election, may (i) terminate this Agreement, in which
event neither party to this Agreement shall thereafter have any further rights or liabilities under this Agreement other than those that expressly survive termination of this Agreement, or (ii) waive the condition and proceed to Closing. If such
failure arises from Purchaser’s breach of this Agreement, Seller may also avail itself of any remedies provided in Section 8.2. 
  
 ARTICLE 7.    CLOSING 
  
 7.1    Closing.    Closing shall be held on June 14, 2002. Seller and Purchaser acknowledge that time is of the essence with respect to such date, and that Purchaser shall have no
obligation to proceed to Closing on any date after June 14, 2002. Closing shall be held at the offices of Hill and Barlow, One International Place, Boston, Massachusetts. 
  
 7.2    Seller’s Closing Deliveries.    At or prior to Closing, Seller shall deliver to Escrow Agent the following:

  
 7.2.1    An assignment and assumption in the form of Exhibit A,
transferring to Purchaser all of Seller’s right, title and interest in and under the Lease, duly executed and acknowledged by the Seller and dated as of the Closing Date. 
  
 7.2.2    A bill of sale in the form of Exhibit B, transferring to Purchaser all of Seller’s right, title and interest in and
to the Furnishings, Consumables, Expendables, Miscellaneous Hotel Assets, assignable Permits, and Intellectual Property, duly executed by Seller and dated as of the Closing Date. 
  
 7.2.3    An assignment and assumption in the form of Exhibit C, transferring to Purchaser all of Seller’s right, title and
interest in and to the Contracts, Equipment Leases, Space Leases, Parking Agreements, Renovation Agreements, the Chilled Water Agreement, the Easement Agreements and the Operating Agreements, duly executed by Seller and dated as of the Closing Date.

  
 7.2.4    An assignment and assumption in the form of Exhibit D,
transferring to Purchaser all of Seller’s right, title and interest in and to the Existing Management Agreement (including without limitation Seller’s rights under the Existing Management Agreement to receive any return of working
capital), duly executed by Seller and dated as of the Closing Date. 
  
 7.2.5    The Loan Continuation Documents, duly executed by Seller and dated as of the Closing Date. 
  
 7.2.6    A certificate, duly executed by Seller, confirming that its representations and warranties set forth in this Agreement are correct as if made on the Closing Date (or noting
any exceptions). 
 

 23 

  
 7.2.7    Any Interim Liquor Agreement
required pursuant to Section 5.13, duly executed by Seller or Existing Manager, as applicable. 
  
 7.2.8    An owners title affidavit, in such form as may be reasonably required by the Title Company to eliminate the standard exceptions in the Title Policy (other than the exception for a current survey of the
Land). 
  
 7.2.9    Such evidence of the power and authority of Seller to
consummate the transactions described in this Agreement as may be reasonably required by Purchaser or Title Company. 
  
 7.2.10    An affidavit, in the form required by the Code and the regulations issued pursuant thereto, to the effect that Seller is not a foreign person within the meaning of the Code. 

 
 7.2.11    To the extent in Seller’s possession or control, an original counterpart of
the Lease. 
  
 7.2.12    To the extent within the possession of Seller, original
counterparts of the Chilled Water Agreement, Easement Agreements, Contracts, Equipment Leases, Space Leases, Existing Management Agreement, Existing Loan Documents, assignable Permits, Renovation Agreements, and all other agreements, instruments or
documents relating to the Hotel or the use and operation thereof. Delivery of the foregoing items at the Hotel on the Closing Date shall constitute compliance with this Section 7.2.12. 
  
 7.2.13    To the extent within the possession of Seller, all Miscellaneous Hotel Assets relating to the Hotel or the use and operation
thereof. Delivery of the foregoing items at the Hotel on the Closing Date shall constitute compliance with this Section 7.2.13. 
  
 7.2.14    Such documentation as may be required by Purchaser and the banks or other financial institutions holding the accounts of the Hotel, to effect the transfer of all of such
accounts to Purchaser as of the Closing. 
  
 7.2.15    Such other documents and
instruments as are customary and as may be reasonably requested by Purchaser or the Escrow Agent to effectuate the transactions contemplated by this Agreement. 
  
 7.3    Purchaser’s Closing Deliveries.    At or prior to Closing, Purchaser shall deliver to Escrow Agent the following: 

 
 7.3.1    The assignment and assumption in the form of Exhibit A, duly executed by
Purchaser, and dated as of the Closing Date. 
  
 7.3.2    An assignment and
assumption in the form of Exhibit C, duly executed by Purchaser, and dated as of the Closing Date. 
 

 24 

  
 7.3.3    An assignment and assumption in the
form of Exhibit D, duly executed by Purchaser, and dated as of the Closing Date. 
  
 7.3.4    The Loan Continuation Documents, duly executed by Purchaser, and dated as of the Closing Date. 
  
 7.3.5    A certificate, duly executed by Purchaser, confirming that its representations and warranties set forth in this Agreement are correct as if made on the Closing Date (or
noting any exceptions). If Purchaser shall have assigned this Agreement pursuant to Section 12.1, such certificate may modify the representations and warranties in Sections 4.1 and 4.2 to the extent necessary to reflect the nature of the legal
entity comprised by the assignee. 
  
 7.3.6    Any Interim Liquor Agreement
required pursuant to Section 5.13, duly executed by Purchaser or Existing Manager. 
  
 7.3.7    Such evidence of the power and authority of Purchaser to consummate the transactions described in this Agreement as may be reasonably required by Seller or the Title Company. 
  
 7.3.8    The portion of the Purchase Price payable in cash pursuant to Section 2.2.2, as adjusted
pursuant to Article 10. 
  
 7.3.9    Such other documents and instruments as are
customary and as may be reasonably requested by Seller or Escrow Agent to effectuate the transactions contemplated by this Agreement. 
  
 7.4    Costs.    Purchaser shall pay (i) the cost of the Survey obtained pursuant to Section 5.2, the premiums for the Title Policy and any title policy issued to Existing
Lender, and the cost of all endorsements to such title insurance policies, (ii) all local transfer and recordation taxes and fees in connection with the transaction, (iii) all costs of Purchaser’s due diligence, (iv) the fees and expenses of
Purchaser’s attorneys, advisors, accountants and consultants, (v) the fees and expenses of Existing Lender in connection with the transaction, (vi) the commission of the Broker pursuant to Section 12.5, and (vii) a fee to L&B in the amount
of $806,250, payable at Closing. Seller shall pay (i) all local transfer and recordation taxes and fees with respect to any document that Seller is required to obtain or provide pursuant to Section 5.2 relating to an Objection, and (ii) the fees and
expenses of Seller’s attorneys, advisors, accountants and consultants. Any other closing costs typically paid by sellers or purchasers of real estate shall be paid by Seller and Purchaser, respectively, in accordance with local custom.

  
 7.5    Indemnification. 
  
 7.5.1    Subject to any express provisions of this Agreement to the contrary, from and after Closing, Seller shall indemnify Purchaser
and hold Purchaser harmless from and against any and all damages, liabilities, losses, claims, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) (collectively, “Damages”) paid or
incurred by Purchaser due to (i) any breach of any 
 

 25 

 
representation or warranty made by Seller in this Agreement or any other Transaction Document, (ii) any breach of any covenant made by Seller in this Agreement or any other Transaction Document,
(iii) liabilities to a third party that are based upon the use, maintenance, operation or construction of the Hotel occurring prior to the Closing (other than those liabilities which are specifically the obligation of Purchaser set forth in this
Agreement or which Purchaser has accepted pursuant to Section 2.4), (iv) liabilities to a third party accruing prior to the Closing under the Contracts, Equipment Leases, Space Leases, the Existing Management Agreement, the Parking Agreements, the
Lease, the Chilled Water Agreement, the Easement Agreements, and the Existing Loan Documents (other than those liabilities which are specifically assumed by Purchaser under this Agreement), (v) liabilities to third parties under the agreements
listed on Schedule 3.21A that are based upon any personal injury, death or property damage occurring prior to Closing, and (vi) Taxes accruing prior to the Closing in connection with the ownership or operation of the Hotel. 

 
 7.5.2    Subject to any express provisions of this Agreement to the contrary, from and
after Closing, Purchaser shall indemnify Seller and hold Seller harmless from and against any and all Damages paid or incurred by Seller due to (i) any breach of any representation or warranty made by Purchaser in this Agreement or any other
Transaction Document, (ii) any breach of any covenant made by Purchaser in this Agreement or any other Transaction Document, (iii) liabilities to a third party that are based upon the use, maintenance, operation or construction of the Hotel
occurring from and after the Closing (other than those liabilities which are specifically the obligation of Seller set forth in this Agreement), (iv) any liability with respect to which Purchaser receives a credit at Closing pursuant to Article 10
of this Agreement, to the extent of such credit, (v) liabilities to a third party accruing from and after Closing under the Contracts, Equipment Leases, Space Leases, the Existing Management Agreement, the Parking Agreements, the Lease, the Chilled
Water Agreement, the Easement Agreements, and the Existing Loan Documents, including fees in the nature of transfer fees or prepayment fees or penalties in connection with the sale of the Hotel to Purchaser (other than those liabilities which are
specifically allocated to Seller under this Agreement), (vi) liabilities under the agreements listed on Schedule 3.21A, whether accrued or incurred before or after Closing, other than those liabilities described in clause (v) of
Section 7.5.1, and (vii) Taxes accruing from and after the Closing in connection with the ownership or operation of the Hotel. 
  
 7.5.3    The obligations of Seller under Section 7.5.1 and of Purchaser under Section 7.5.2 shall not (i) extend to any Damages arising out of the alleged presence at, or release or
disposal from, the Hotel of any Hazardous Substance, or the alleged violation of any Environmental Laws, (ii) impose any obligation to repair, maintain, improve or otherwise alter the physical condition of the Hotel as a result of a violation of any
Legal Requirement (including without limitation zoning and building codes and the Americans with Disabilities Act) which exists on or before the Closing Date and does not otherwise violate a representation or warranty set forth in this Agreement, or
(iii) impose any obligation to repair, maintain, improve or otherwise alter the physical condition of the Hotel in any manner on or before the Closing Date that does not otherwise constitute a breach of any covenant in this Agreement. 

 26 

  
 7.5.4    From and after Closing, the
indemnification provisions in this Section 7.5 shall be the exclusive remedies of Seller and Purchaser in connection with anv of the matters described in this Section 7.5, and each party hereby waives any other rights or remedies it may have under
applicable law or at equity in connection therewith. 
  
 7.5.5    Whenever either
party shall learn through the filing of a claim or the commencement of a proceeding or otherwise of the existence of any liability for which the other party is or may be responsible under this Agreement, the party learning of such liability shall
notify the other party promptly and furnish such copies of documents (and make originals thereof available) and such other information as such party may have that may be used or useful in the defense of such claims and shall afford said other party
full opportunity to defend the same in the name of such party and generally shall cooperate with said other party in the defense of such claim. 
  
 7.5.6    Notwithstanding any other provision of this Agreement, Seller’s liability under Section 7.5.1 shall not exceed in the aggregate $2,500,000.00. 
  
 7.5.7    Seller agrees that until the date that is one hundred and five (105) days after the close of
the 2002 Fiscal Year, Seller shall retain and not distribute to its members not less than $2,500,000 of liquid assets. Seller further agrees that from the date described in the foregoing sentence until one (1) year after the Closing Date, Seller
shall retain and not distribute to its members not less than $1,000,000.00 of liquid assets. Nothing set forth in this Section 7.5.7 shall be deemed a waiver by Purchaser of any provision or protection under applicable law. 
  
 7.6    Delivery of Records and Contracts.    At Closing, Seller shall deliver to Purchaser
copies of all of its files, business records, books, and other data relating to the Hotel (other than documents subject to attorney-client privilege and documents constituting Seller’s internal analysis of any sale of the Hotel), and Seller
shall take all requisite steps to put Purchaser in actual possession and operating control of the Hotel, subject to the Existing Management Agreement and the rights of tenants under Space Leases. 
  

7.7    Tax Clearance.    Promptly following the Contract Date, Seller shall apply for and use reasonable efforts to
obtain a certificate or similar evidence from the Commissioner of Revenue of the Commonwealth of Massachusetts, that no sales or use taxes are owed by Seller or the Hotel. Seller shall promptly provide to Purchaser a copy of such certificate or
evidence, or such other correspondence and materials as Seller shall receive from the Commissioner of Revenue in response to such request of Seller. 
  
 ARTICLE 8.    ESCROW, DEFAULT, REMEDIES 
  
 8.1    Escrow Terms.    The Deposit shall be held and released by Escrow Agent in accordance with the Escrow Agreement. 
  
 8.2    Purchaser’s Default.    If Purchaser defaults in its obligation to proceed to Closing in accordance with this
Agreement, or if any condition set forth in Section 6.3.1 or 6.3.2 is not satisfied and Seller elects not to proceed to Closing, and if such default is 
 

 27 

 
not cured and/or such condition is not satisfied within five (5) days after Seller has given Purchaser notice of the same (but in no event later than June 14, 2002), then the Escrow Agent shall
disburse the Deposit to Seller in accordance with the Escrow Agreement, as full and complete liquidated damages, and as the exclusive and sole right and remedy of Seller. Upon payment of the Deposit to Seller pursuant to this Section 8.2, this
Agreement shall terminate and neither party shall have any further obligations or liabilities to the other party, except for obligations that expressly survive termination of this Agreement. Purchaser acknowledges that Seller’s actual damages
caused by Purchaser’s default in its obligation to proceed to Closing would be difficult to determine precisely and that the Deposit, as liquidated damages, is a fair and reasonable approximation. Seller hereby waives any right to damages
(including actual, consequential, punitive or otherwise) other than receipt of the Deposit, or to any equitable relief, as a result of Purchaser’s default in its obligation to proceed to Closing in accordance with this Agreement. 

 
 8.3    Seller’s Default.    If Seller defaults in its obligation to proceed
to Closing in accordance with this Agreement, or if any condition set forth in Section 6.1.1 or 6.1.2 is not satisfied and Purchaser elects not to proceed to Closing, and if such default is not cured and/or such condition is not satisfied within
five (5) days after Purchaser has given Seller notice of the same (but in no event later than June 14, 2002), then Purchaser shall be entitled to, as its sole remedy, any or all of (i) specific performance of this Agreement, (ii) return of the
Deposit in accordance with the Escrow Agreement, and (iii) in the case of a willful and intentional default of Seller in its obligation to proceed to Closing, or a willful and intentional failure to satisfy any condition set forth in Section 6.1,
recovery of Purchaser’s actual out-of-pocket costs incurred in connection with the transaction described in this Agreement. 
  
 8.4    Survival.    Covenants and agreements contained in this Agreement which by their nature are intended to be performed after the Closing shall survive the Closing for a period of
one (1) year after the Closing Date. The representations, warranties and indemnities of Seller and Purchaser set forth in this Agreement shall survive Closing until the date that is one (1) year after the Closing Date, and any action on any such
representation, warranty or indemnity must be instituted (but not settled or finally adjudicated) on or before such date. Notwithstanding the foregoing, the indemnity obligations of Seller and Purchaser under Section 7.5 shall survive Closing
indefinitely (except for the indemnity obligations in Section 7.5.1(i) and 7.5.2(i) which shall survive Closing until settled or otherwise finally adjudicated, provided that any action on any such indemnity obligations be instituted on or before the
date that is one (1) year after the Closing Date). Nothing set forth in the foregoing sentence (including the word “indefinitely”) shall be deemed or construed to waive or extend any underlying statute of limitation that applies to any
third party claims that are the subject of Section 7.5. 
  
 ARTICLE 9.    CASUALTY AND CONDEMNATION

  
 9.1    Notice to Purchaser.    Seller shall give Purchaser
prompt notice of (i) any pending or threatened condemnation affecting the Hotel of which Seller becomes aware, 
 

 28 

 
and (ii) any fire or other casualty of which Seller becomes aware occurring prior to Closing that affects the Hotel. 
  
 9.2    Minor Casualty or Condemnation.    If prior to Closing, (i) condemnation proceedings are commenced against all or any
portion of the Hotel, and such proceedings do not materially adversely affect the continued operation of the Hotel in substantially the same manner as such Hotel is operated on the Contract Date, or (ii) the Hotel is damaged by fire or other
casualty to the extent that the cost of repairing such damage is reasonably estimated by Seller and Purchaser, each acting reasonably and in good faith, to be $10,000,000 or less, then this Agreement shall continue in full force and effect and the
Purchase Price shall not be reduced except as hereinafter set forth, but Purchaser shall be entitled to an assignment of all of the proceeds payable to the Seller of fire or other casualty insurance (other than those proceeds actually used by Seller
to restore the Hotel prior to the Closing) and business interruption insurance proceeds (if any) payable with respect to the period from and after Closing or of the condemnation award payable to Seller, as the case may be, and Seller shall have no
obligation to repair or restore the Hotel; provided that the Purchase Price shall be reduced by the “deductible” applied by Seller’s insurer with respect to such fire or casualty and not paid by Seller prior to Closing. 

 
 9.3    Major Casualty or Condemnation.    If prior to Closing, (i) condemnation
proceedings are commenced against all or any material portion of the Hotel and such proceedings are not covered by Section 9.2, or (ii) the Hotel is damaged by fire or other casualty and such damage is not covered by Section 9.2, Purchaser shall
have the right, upon notice in writing to the Seller delivered within ten (10) days after Seller gives Purchaser notice of such matter as described in this Section 9.2, to terminate this Agreement, in which event Escrow Agent shall return the
Deposit to Purchaser, and neither party to this Agreement shall thereafter have any further rights or liabilities under this Agreement other than those that expressly survive termination of this Agreement. If Purchaser does not timely elect to
terminate this Agreement, the Purchase Price shall not be reduced except as hereinafter set forth, but Purchaser shall be entitled to an assignment of all of the proceeds payable to Seller of fire or other casualty insurance (other than those
proceeds actually used by Seller to restore the Hotel prior to the Closing) and business interruption insurance proceeds (if any) payable with respect to the period from and after Closing or of the condemnation award payable to Seller, as the case
may be, and Seller shall have no obligation to repair or restore the Hotel; provided that the Purchase Price shall be reduced by the “deductible” applied by Seller’s insurer with respect to such fire or casualty and not paid by Seller
prior to Closing. 
  
 9.4    Risk of Loss.    Subject to the
provisions of this Article 9, the risk of loss or damage to the Hotel shall remain with Seller until Closing. 
  
 ARTICLE
10.    ADJUSTMENTS 
  
 10.1    Adjustments Generally.

 

 29 

  
 10.1.1    The Purchase Price shall be
adjusted pursuant to this Article 10. In the case of any adjustment to be made at Closing, the portion of the Purchase Price payable pursuant to Section 2.2.2 shall be increased or decreased to reflect such adjustment. In the case of any adjustment
to be made after Closing, Purchaser and Seller shall promptly make such adjustment by payment of immediately available funds to the other party. 
  
 10.1.2    Except as otherwise expressly set forth in this Article 10, all items of revenue and expense of the Hotel with respect to the period prior to the Apportionment Time shall
be for the account of Seller, and all items of revenue and expense of the Hotel with respect to the period after the Apportionment Time shall be for the account of Purchaser. 
  
 10.2    Owner’s Distribution. 
  
 10.2.1    Purchaser and Seller acknowledge that the Closing Date will occur during the sixth (6th) Accounting Period during the 2002 Fiscal Year. Following the close of such
Accounting Period, Purchaser shall cause Existing Manager to prepare the interim accounting for such Accounting Period in accordance with the Existing Management Agreement (the “Rent Letter”). Purchaser and Seller shall each have
the right to have their respective accountants review drafts of the Rent Letter prepared by Existing Manager, and discuss such drafts with Existing Manager, such that the Rent Letter accurately reflects the current assets and liabilities, and income
and expenses, of the Hotel. 
  
 10.2.2    Promptly upon Purchaser’s receipt
from Existing Manager of (i) the final Rent Letter for the sixth (6th) Accounting Period, and (ii) payment of the amount of the “Net Distribution to Owner” as shown on such Rent Letter, Seller and Purchaser shall prorate such “Net
Distribution to Owner” based upon the number of days during such Accounting Period that Purchaser and Seller, respectively, have owned the Hotel. Promptly upon receipt from Existing Manager of the final annual accounting for the 2002 Fiscal
Year pursuant to the Existing Management Agreement, if such final accounting shall disclose any inaccuracy in the Rent Letters for the First (1st) through sixth (6th) Accounting Periods (including allocation to such Accounting Periods of an
appropriate share of revenues or expenses that are not specifically allocated to a particular Accounting Period), Seller and Purchaser shall make such adjustments as may be necessary to correct such inaccuracy. 
  
 10.2.3    Seller and Purchaser acknowledge that, except as may be expressly provided in this Article
10, the allocation of the “Net Distribution to Owner” described in this Section 10.2 is in lieu of all other credits or debits for current assets and current liabilities of the Hotel. Without limiting the generality of the foregoing, (1)
Seller shall receive no further credit for any accounts receivable in connection with the Hotel, or accounts, reserves, house banks, petty cash or other cash held by Existing Manager, prepaid expenses, Consumables, Expendables or Miscellaneous
Assets, and (ii) Purchaser shall receive no further credit for any unpaid accounts payable and accrued liabilities in connection with the Hotel. 
 

 30 

  
 10.2.4    Notwithstanding any other provision
of this Agreement that requires the payment by Seller of liabilities and obligations (including Sections 5.3.6, 7.5 and 10.7), Seller shall not be obligated to pay such liabilities or obligations to the extent such liabilities or obligations are
reflected in the Rent Letter for the sixth (6th) Accounting Period or are otherwise accounted for in this Article 10. 
  
 10.3    Working Capital.    At Closing, Seller shall receive a credit in the amount of $1,500,000.00 in reimbursement of all working capital previously contributed by Seller to Existing
Manager pursuant to the Existing Management Agreement. At Closing, Seller shall assign to Purchaser all of its right, title and interest in and to all current assets related to the Hotel, including without limitation all accounts receivable.

  
 10.4    FF&E Reserve. 
  
 10.4.1    At Closing, Purchaser shall receive a credit in the amount of the balance of the FF&E Reserve as of the Closing Date.
Seller shall be entitled to retain the actual account or accounts that hold funds comprising the FF&E Reserve. 
  
 10.4.2    If as of the Closing Date, Seller shall have contributed to the FF&E Reserve less than an amount equal to four percent (4%) of all “Gross Revenues” (as defined in the Existing
Management Agreement) for the 2002 Fiscal Year through the fifth (5th) Accounting Period, then Purchaser shall receive a credit at Closing against the Purchase Price at Closing in the amount of such shortfall. 
  
 10.4.3    Upon Purchaser’s receipt from Existing Manager of the Rent Letter for the sixth (6th)
Accounting Period as described in Section 10.2.2, Purchaser shall have the right to retain from the amounts otherwise payable to Seller pursuant to Section 10.2.2 an amount equal to four percent (4%) of the actual Gross Revenues for the sixth (6th)
Accounting Period (less one twenty-eighth of such amount for each day prior to June 15, 2002 that Closing shall occur). If the amounts otherwise payable to Seller pursuant to Section 10.2.2 are for any reason insufficient for such purpose, Seller
shall pay to Purchaser the amount of such shortfall. 
  
 10.4.4    Attached as
Schedule 10.4A is a Capex Cash Flow Forecast—FY 2002 (“Capex Forecast”) prepared by Existing Manager as of the Contract Date. If as of the Closing Date, Seller shall have expended (without replenishing) from the FF&E
Reserve during the 2002 Fiscal Year amounts other than to pay capital expenditures on the Hotel (provided that such capital expenditures shall not be for work performed in the 2001 Fiscal Year other than 2001 carryforward items described on the
Capex Forecast) (collectively, “Capex Expenditures”), then Purchaser shall receive a credit against the Purchase Price in the amount of such expenditures. 
  
 10.4.5    Upon Purchaser’s receipt from Existing Manager of the Rent Letter for the sixth (6th) Accounting Period as described in
Section 10.2.2, if such Rent Letter shall reflect Capex Expenditures during such sixth (6th) Accounting Period (other than Capex Expenditures in connection with the Renovation), Purchaser shall pay to Seller the amount of such Capex Expenditures.

 

 31 

  
 10.5    Incentive Fees to Existing Manager.

  
 10.5.1    Seller and Purchase acknowledge that a “Basic Incentive
Fee” and a “Bonus Incentive Fee” may accrue under the Existing Management Agreement for the portion of Fiscal Year 2002 prior to the Apportionment Time, but may not be payable until after Closing. Purchaser shall receive the credits
set forth in this Section 10.5, and shall be responsible for paying the Basic Incentive Fee and Bonus Incentive Fee for Fiscal Year 2002. 
  
 10.5.2    At Closing, Purchaser shall receive a credit equal to the amount of twenty percent (20%) of the Operating Profit (as defined in the Existing Management Agreement) that has
accrued with respect to the 2002 Fiscal Year through the fifth (5th) Accounting Period. 
  
 10.5.3    Upon Purchaser’s receipt from Existing Manager of the Rent Letter for the sixth (6th) Accounting Period as described in Section 10.2.2, Purchaser shall receive an additional credit in the amount of
the product obtained by multiplying (i) twenty percent (20% of the Operating Profit (as defined in the Management Agreement) that has accrued with respect to such sixth (6th) Accounting Period by (ii) a fraction, the numerator of which is the number
of days in such Accounting Period prior to the Apportionment Time, and the denominator of which is twenty-eight (28). Such credit shall offset the amount to be paid by Purchaser to Seller pursuant to Section 10.2.2, and if such amount is less than
the amount of such credit Seller shall promptly pay the shortfall to Purchaser. 
  
 10.5.4    Promptly upon receipt from Existing Manager of the final annual accounting for the 2002 Fiscal Year pursuant to the Existing Management Agreement, Seller and Purchaser shall make such adjustments to the
credits described in this Section 10.5 as may be necessary based upon the information set forth in such final annual accounting. In addition, promptly upon receipt from Existing Manager of such final annual accounting, Seller shall pay to Purchaser
an amount equal to the product obtained by multiplying any Bonus Incentive Fee that is payable under the Existing Management Agreement for Fiscal Year 2002 by a fraction, the numerator of which is the Operating Profit for Fiscal Year 2002 that
accrues through the sixth (6th) Accounting Period (less one twenty-eighth of the Operating Profit that accrues during the sixth (6th) Accounting Period for each day prior to June 15, 2002 that Closing shall occur) and the denominator of which the
Operating Profit for the entire Fiscal Year 2002. 
  
 10.6    Tax
Appeals.    Where an appeal of any taxes that are subsumed within the Rent Letter is pending at Closing by Seller, a subsequent adjustment will be made between Seller and Purchaser based upon a re-proration of such taxes as
of the Apportionment Time in accordance with the results of such appeal and all costs and fees incurred in connection with such appeal, including the costs and fees of any Person retained by Seller or Purchaser to appeal such taxes, shall also be
prorated between Purchaser and Seller in the same proportion as the re-prorated taxes. Seller and Purchaser acknowledge that Seller has appealed the real property taxes for the 1999 and 2001 tax years (“Pending Appeals”). Seller
shall pay all costs of the Pending Appeals, 
 

 32 

 
shall have the right to retain any rebate of taxes that results from the Pending Appeals, and shall pay the Existing Manager any portion of such rebate that may be payable to Existing Manager
under the Existing Management Agreement. 
  
 10.7    Taxes.    Seller
shall be responsible for any of Seller’s federal or local income and franchise taxes (if any), but not sales tax (if any) applicable to the transaction contemplated by this Agreement, which sales tax (if any) shall be the responsibility of
Purchaser. Notwithstanding the foregoing, Seller shall be responsible for sales and all other taxes for the Hotel relating to periods before the Closing Date. 
  
 10.8    Existing Mortgage.    All interest payable with respect to the Existing Loan shall be prorated at Closing as of the Apportionment Time. Seller
shall be obligated to pay at Closing any and all late fees, penalties, charges, and default rate interest that have accrued prior to the Apportionment Time. 
  
 10.9    Space Leases.    Rent and all other amounts received from tenants under the Marriott vacation sales Space Lease shall be apportioned between
Seller and Purchaser as of the Apportionment Time. 
  
 10.10    Transfer of
Accounts.    In connection with any bank or other account to be transferred by Seller to Purchaser pursuant to this Agreement (including without limitation any operating accounts held by Existing Manager, but not including
accounts holding the FF&E Reserve which shall be retained by Seller pursuant to Section 10.4.1), Seller shall take such action as Purchaser may reasonably require to provide Purchaser (or Existing Manager on behalf of Purchaser in the case of
operating accounts held by Existing Manager) with dominion and control over such accounts as of Closing. 
  
 10.11    Disputes with Respect to Adjustments.    If Seller and Purchaser, each acting reasonably and in good faith, cannot resolve any issue with respect to the adjustments described in
this Article 10, they shall submit the issue for binding arbitration and resolution by a nationally recognized accounting firm mutually agreeable to both parties. In the event of such an arbitration, the parties shall share equally in all fees or
expenses imposed by the arbitrators, and the finding of the arbitrators shall be binding on the parties. Each party shall share equally in the cost of such arbitration, but each party shall bear its own legal, accounting and other similar fees
incurred in connection with such arbitration. Such arbitration and determination shall be final and binding on the parties and judgment may be entered upon such determination in any court having jurisdiction thereof. Seller and Purchaser agree that
any such arbitration shall be conducted in Boston, Massachusetts. The arbitrator may enter a default decision against any party who fails to participate in the arbitration proceedings. 
  
 ARTICLE 11.    [RESERVED] 
 

 33 

  
 ARTICLE 12.    MISCELLANEOUS 
  
 12.1    Assignment.    Neither Seller nor Purchaser shall assign this Agreement without the
consent of the other. Notwithstanding the foregoing, without Seller’s consent, Purchaser shall have the right to assign this Agreement to any Person that directly or indirectly is owned by Host Marriott, L.P Upon any such assignment and the
assumption by the assignee of all liabilities and obligations of Purchaser under this Agreement, the Purchaser named herein shall automatically be released from all such liabilities and obligations. 
  
 12.2    Notices.    Notices and other communications required or permitted under this
Agreement shall be in writing and delivered by hand against receipt or sent by recognized overnight delivery service, or by facsimile or telecopy. All notices shall be addressed as follows: 
  
 If to Seller: 
  
 Copley One LLC

 c/o Overseas Partners Capital Corporation 
 2050 Marconi
Drive, Suite 300 
 Alpharetta, Georgia 30005 
 Attention:
David C. Gorst 
 Tel. No.: 770/777-8344 
 Fax No.:
770/777-8346 
  
 with a copy to: 
  
 Overseas Partners Ltd. 
 Cumberland House 
 One Victoria Street 
 Hamilton HM 11 
 Bermuda 
 Attention: Mark R. Bridges 
 Tel. No: 441/298-2421 
 Fax No.: 441/292-9142 
  
 with a copy to: 
  
 L & B Realty Advisors, Inc. 
 8750 North Central Expressway, Suite 800 
 Dallas, Texas 75231-6437 
 Attention: Daniel L. Plumlee 
 Tel. No.: 214/989-0888 
 Fax No.: 214/989-0700 
 

 34 

  
 with a copy to: 
  
 Hill & Barlow 
 One International Place 
 Boston, Massachusetts 02110-2600 
 Attention: Elliot Surkin 
 Tel. No.: 617/428-3399 
 Fax No.: 617/428-3500 
  
 If to Purchaser: 
  
 HMC Copley LLC 
 c/o Host Marriott Corporation 
 10400 Fernwood Road 
 Bethesda, Maryland 20817 
 Attention: James F. Risoleo 
 Tel. No.: 301/380-2282 
 Fax No.: 301/380-6338 
  
 with a copy to: 
  
 Host Marriott Corporation 
 10400 Fernwood Road 
 Bethesda, Maryland 20817 
 Attention: David L. Buckley 
 Tel. No.: 301/380-2221 
 Fax No.: 301/380-6332 
  
 with a copy to: 
  
 Arnold & Porter 
 555 Twelfth Street, N.W. 
 Washington, D.C. 20004 
 Attention: Michael D. Goodwin 
 Tel. No.: 202/942-5558 
 Fax No.: 202/942-5999 
  
 or to such other addresses as may be designated by a proper notice. Notices shall be deemed to be effective upon receipt (or refusal thereof) if personally delivered or sent by recognized overnight delivery service, or upon
electronically verified transmission, if such delivery is by facsimile or telecopy. 
  
 12.3    Waiver of Jury Trial; Jurisdiction.    Seller and Purchaser each hereby waives any right to jury trial in the event any party files an action relating to this Agreement or to the
transactions or obligations contemplated by this Agreement. Any action, suit or proceeding arising out of this Agreement or the transactions contemplated by this Agreement shall be brought exclusively in the federal and state courts sitting in

 

 35 

 
Boston, Massachusetts, and Seller and Purchaser agree that such courts are the most convenient forum for resolution of any such action and further agree to submit to the jurisdiction of such
courts and waive any right to object to venue in such courts. 
  
 12.4    Counterparts and
Effectiveness.    This Agreement may be executed in any number of counterparts which, when taken together, shall constitute a single binding instrument. Execution and delivery of this Agreement by facsimile shall be
sufficient for all purposes and shall be binding on any Person who so executes. 
  
 12.5    Brokerage.    Purchaser and Seller each represents to each other that no broker, finder or similar consultant has acted on its behalf in connection with this Agreement or the
transaction contemplated by this Agreement, except for Broker. Purchaser agrees to pay Broker at Closing a commission in an amount equal to $806,250. Purchaser and Seller each shall indemnify and hold the other harmless from claims made against the
other by any broker, finder or similar consultant claiming through it for a commission, fee or compensation in connection with this Agreement or the transaction contemplated by this Agreement. The indemnification obligations set forth in this
Section 12.5 shall survive Closing or any termination of this Agreement. 
  
 12.6    Confidentiality.    Purchaser and Seller shall each maintain as confidential the terms of this Agreement and any and all information and material obtained about the other which
is furnished to it by the other in connection with this Agreement, and such obligation shall survive any termination of this Agreement and shall survive Closing. Purchaser shall maintain as confidential any and all information and material about the
Hotel which is furnished to it by or on behalf of Seller, and such obligation shall survive any termination of this Agreement but shall terminate at Closing. Confidential information shall not include information and material which (i) becomes
generally available to the public other than as a result of a disclosure prohibited by this Section 12.6, (ii) is known to Purchaser or Seller, as the case may be, prior to its receipt of such information and material from the other, or (iii)
becomes available to Purchaser or Seller, as the case may be, on a nonconfidential basis from a source other than the other which is not prohibited from disclosing the same. Notwithstanding the foregoing, (i) each of Purchaser and Seller may
disclose confidential information to its employees, agents or advisors, and Purchaser may disclose such information to potential investors, lenders, insurers and consultants, in each case on a need-to-know basis after the recipients of the
information have been informed of the confidential nature of such information and directed not to disclose such information except in accordance with this Section 12.6, (ii) each of Purchaser and Seller may disclose confidential information to the
extent legally compelled, provided that it shall provide the other with prompt written notice so that the other may seek a protective order or other appropriate remedy, and (iii) Purchaser and Seller, following prior notice to and consultation with
the other, may disclose the transaction contemplated by this Agreement to the extent necessary to obtain consents or approvals contemplated by this Agreement. At Closing, Seller shall assign to Purchaser any existing confidentiality agreements with
respect to the Hotel to which Seller is a party. 
 

 36 

  
 12.7    Public
Announcements.    Neither Seller nor Purchaser shall make any public statement, issue any press release or make any comments to the press prior to the Closing with respect to this Agreement or the transactions contemplated by
this Agreement without the prior written consent of the other party, except as otherwise required by law. 
  
 12.8    Recordation.    Neither Seller nor Purchaser shall record this Agreement or any notice of this Agreement in any public records. 
  
 12.9    Replacement Property.    Purchaser and Seller acknowledge that, pursuant to Section
1033 of the Code, Purchaser is acquiring the Hotel for the purpose of replacing Purchaser’s World Trade Center Hotel that was destroyed in the terrorist attacks of September 11, 2001. Purchaser shall have the absolute right to structure the
acquisition as such replacement property, provided that Purchaser shall indemnify Seller from any and all additional costs, liabilities or expenses as a result of such replacement. Upon request of Purchaser, Seller shall cooperate with Purchaser, at
Purchaser’s sole cost and expense, as Purchaser may reasonably request to enable Purchaser to consummate such replacement. 
  
 12.10    Exclusivity.    Until such time as this Agreement is terminated, Seller shall not directly or indirectly solicit, initiate or encourage any inquiries or proposals from, discuss
or negotiate with, provide any non-public information to, or consider the merits of any inquiries or proposals from, any third party relating to any transaction involving the sale of the Hotel or any material portion of the Hotel. 

 
 12.11    Financial Statements.    Upon request by Purchaser, Seller shall either
(i) provide the latest financial statements of the Hotel which have been prepared in accordance with generally accepted accounting principles and the rules and regulations of the Securities and Exchange Commission (to the extent such statements were
prepared in accordance with such rules and regulations or can be revised, at no cost to Seller, to comply with such rules and regulations), or (ii) cooperate with, and direct Existing Manager to cooperate with, Purchaser and its accountants in
preparing and auditing such financial statements, at Purchaser’s sole cost and expense. Upon request by Purchaser, Seller shall cause Seller’s accountants and counsel to cooperate, as reasonably necessary, with Purchaser and its
accountants, at no cost or expense to Seller, in the process of providing or preparing such financial statements. 
  
 12.12    Further Assurances.    From time to time after Closing, at the request of Purchaser, Seller shall, without further consideration, execute and deliver such further instruments of
transfer and assignment and take such other actions as Purchaser may reasonably request to transfer and assign to, and vest in Purchaser, the Hotel as contemplated by this Agreement, provided that such documents or actions shall not subject Seller
to any obligation or liability not expressly imposed on Seller pursuant to this Agreement. 
 

 37 

  
 12.13    Bulk Sales
Laws.    Seller and Purchaser each waives compliance with any bulk sales filings otherwise required by applicable law as a result of the transactions contemplated by this Agreement. 
  
 12.14    Host Marriott Guaranty.    From and after Closing, Host Marriott, L.P. hereby
guaranties the prompt payment and performance by Purchaser of all of its obligations under this Agreement and under all other documents executed by Purchaser in favor of Seller at Closing. Liability of Host Marriott, L.P. shall be primary and joint
and several with Purchaser as though Host Marriott, L.P. were a party hereto and to all such other documents. Such guaranty shall automatically terminate and expire on the one (1) year anniversary of the Closing Date, but shall survive with respect
to any action on such guaranty that has been instituted (whether or not settled or finally adjudicated) on or before such date. 
  
 [signatures on following page] 
 

 38 

  
 IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be
executed as of the Contract Date: 
  
 
	 SELLER:
 
	 
	 COPLEY ONE LLC, a Massachusetts
 limited
liability company
 

 
  
 
	 
	 By:
 	 	 Overseas Capital Co., its sole
 
	  	 	 manager
 

 
  
 
	 
	 By:
 	 	 /s/    DAVID C. GORST        
 

	  	 	 Name:    David C. Gorst
 
	  	 	 Title:    Asst. V.P. Real Estate
 

 
  
 
	 
	 By:
 	 	 /s/    MARK R. BRIDGES        
 

	  	 	 Name:    Mark R. Bridges
 
	  	 	 Title:    President and Treasurer
 

 
  
 
	 PURCHASER:
 
	 
	 HMC COPLEY LLC, a Delaware limited liability company
 

 
  
 
	 
	 By:
 	 	 /s/    DOUGLAS W. HENRY        
 

	  	 	 Name:    Douglas W. Henry
 
	  	 	 Title:    Authorized Officer
 

 
  
 
	 HOST:
 
	 
	 The undersigned is executing this Agreement for purposes of agreeing to the provisions of Section 12.14.
 

 
  
 
	 HOST MARRIOTT, L.P., a Delaware limited partnership
 
	 
	 By:
 	 	 Host Marriott Corporation, general partner 
 

 
 
	 
	 By:
 	 	 /s/    DOUGLAS W. HENRY        
 

	  	 	 Name:    Douglas W. Henry
 
	  	 	 Title:    Authorized Officer
 

 
 

 39Prepared by R.R. Donnelley Financial -- Purchase and Sale Agreement For Copley Place

  
 EXHIBIT 10(b) 
  
 AGREEMENT 
  
 This Agreement (this
“Agreement”), dated as of July 19, 2002, is made by and among Overseas Capital Co., a Delaware corporation, having an address at 2050 Marconi Drive, Suite 300, Alpharetta, Georgia 30005 (“Overseas”) and Copley Place Corp., Inc.,
a Delaware corporation, having an address at 2050 Marconi Drive, Suite 300, Alpharetta, Georgia 30005 (“Copley”, collectively with Overseas, hereinafter referred to as “Seller”), and Simon Property Group, L.P. a Delaware limited
partnership, having an address at National City Center, P. O. Box 7033, Indianapolis, Indiana 46207 (“Purchaser”). 
  
 ARTICLE I 
 RECITALS 
  
 1.1    The LLC.    Copley Place Associates, LLC (the “LLC”) is a Delaware limited liability company created pursuant to that certain “Second Amended and Restated
Limited Liability Company Agreement of Copley Associates, LLC, dated July 30, 1997 (as amended by that certain First Amendment to Second Amended and Restated Limited Liability Company Agreement dated August 1, 1997, and as further amended by that
certain letter agreement dated November 28, 2001; as so amended, the “LLC Agreement”), among Overseas, Copley and Urban Shopping Centers, L.P., an Illinois limited partnership (“Urban”). 
  
 1.2    Real Property and Personal Property.    The LLC (i) owns and holds a leasehold
interest to certain land (the “Land”) pursuant to a ground lease, together with title to all improvements, buildings and structures located thereon and all fixtures and equipment (including, without limitation, all of the following (other
than the property of tenants under Leases (as hereinafter defined) or of public or private utilities): plumbing, electrical, mechanical, elevator, communication, heating, air conditioning and ventilating components, lines and systems and boilers and
each and every other type of physical improvement located at, on or affixed to such land to the full extent such items constitute realty under the laws of the Commonwealth of Massachusetts (collectively, the “Improvements”), commonly known
as Copley Place, Boston, Massachusetts (collectively, the “Real Property”); provided, however, that the Real Property does not include the Copley Marriott Hotel or the Copley Westin Hotel but does include the Dartmouth Street Garage and
(ii) (a) obtained certain governmental permits and approvals, (b) obtained certain contractual rights and other intangible assets, (c) is landlord under each of the Leases, and (iii) acquired certain other items of tangible personal property
(collectively, the “Personal Property”). The Real Property and the Personal Property together with all appurtenances, rights and privileges pertaining thereto including, without limitation, all of the LLC’s right, title and interest
in and to the rights of way, streets, alleys, easements, strips or gores of land adjacent thereto are collectively referred to as the “Property”. 
  
 1.3    Seller’s LLC Interest.    Overseas is the owner of a 65 2/3% “Percentage Interest” (as defined in the LLC Agreement) in the LLC and Copley is the owner of a 1% “Percentage Interest” in the LLC. Overseas’
Percentage Interest, Copley’s Percentage Interest, Overseas’ Capital Account (as defined in the LLC Agreement), Copley’s Capital Account, together with all of Seller’s right, title and interest in, to and under the LLC Agreement
is hereinafter collectively referred to as the “Seller’s LLC Interest”. 

  
 1.4    Purchaser’s LLC
Interest.    Purchaser and/or its Affiliate own and/or control the remaining 33 1/3%
Percentage Interest in the LLC and, as of the Closing Date, will become the Property Manager (as defined in the LLC Agreement) of the Property. 
  
 1.5    Purchase and Sale.    Seller desires to sell and Purchaser desires to purchase Seller’s LLC Interest upon the terms and covenants and subject
to the conditions set forth herein. 
  
 ARTICLE II 
 PURCHASE AND SALE/ PURCHASE PRICE 
  
 2.1    Purchase
Price.    In consideration of the covenants herein contained, Seller hereby agrees to sell and Purchaser hereby agrees to purchase Seller’s LLC Interest for a total purchase price (subject to apportionments) (the
“Purchase Price”); equal to two-thirds of the net proceeds that would be received by the LLC if the Property were sold for Three Hundred Sixty Two Million and 00/100 Dollars ($362,000,000.00) after deducting the principal balance of the
existing mortgage loan on the Property evidenced by the Loan Documents (as hereinafter defined) and any accrued interest on such loan and after effecting adjustments and prorations under Article IX hereof; provided, however, that whether or not the
current loan from Metropolitan Life Insurance Company evidenced by the Loan Documents and secured by the Property is prepaid, the Purchase Price shall not be adjusted in any way due to any prepayment penalty or other fee, if any, due in connection
with such prepayment or in connection with this transaction. The Purchase Price shall be delivered to Seller on the Closing Date as follows: Purchaser shall deliver or cause to be delivered to Seller the Purchase Price by bank wire transfer of
immediately available funds to an account previously designated by Seller. The Purchase Price received by Seller at the Closing shall be adjusted to reflect prorations and other adjustments made pursuant to Article IX hereof. 

 
 2.2    No Unintended Assumption of Liabilities.    Except as expressly provided
in this Agreement or in any document to be executed and delivered on the Closing Date, the Purchaser is not assuming any of the debts, liabilities or tax obligations of, or claims against, Seller of any kind or character, whether direct or
contingent and whether known or unknown except to the extent arising and accruing in connection with the Property from and after the Closing Date. The only transactions contemplated by this Agreement are the sale and purchase of Seller’s LLC
Interest. The parties hereto intend that the Purchaser shall not be deemed to be a successor of the Seller with respect to any of the Seller’s liabilities or obligations to third parties arising or accruing before the Closing Date. Nothing in
this Section 2.2 is deemed to release Purchaser or the LLC from any of the LLC’s liabilities or obligations with respect to the Property arising or accruing prior to the Closing Date. The provisions of this Section 2.2 shall not increase or
diminish Seller’s and Purchaser’s respective indemnification obligations under Article 11. 

  
 ARTICLE III 
 INTENTIONALLY OMITTED 
  
 ARTICLE IV 
 INTENTIONALLY OMITTED 
  
 ARTICLE V 
 PURCHASER’S DELIVERIES TO SELLER 
  
 5.1    Deliveries.    Purchaser shall, at or before the Closing, deliver or cause to be delivered to Seller each of the following: 
  

5.1.1    Purchase Price.    The Purchase Price. 
  

5.1.2    Assignment of Seller’s LLC Interest.    Four executed counterparts of the Assignment and
Assumption of Limited Liability Company Interest (the “Assignment of Seller’s LLC Interest”) in the form of Exhibit A. Purchaser shall also deliver or cause to be delivered to Seller four executed counterparts of the Management
Assignment. 
  
 5.1.3    Organizational Documents,
Etc.    Copies of Purchaser’s organizational documents and operating agreement, partnership agreement or bylaws (as applicable) and all amendments thereto, together with Purchaser’s resolutions authorizing the
transactions contemplated hereby and any other documents reasonably requested by Purchaser. 
  
 5.1.4    Required Items.    All other items or amounts required by the terms of this Agreement to be delivered at or prior to Closing by Purchaser or as may be reasonably required from
Purchaser to consummate the purchase of the Seller’s LLC Interest as contemplated by this Agreement. 
  
 5.1.5    Opinion.    A favorable opinion of Purchaser’s counsel addressed to Seller confirming the matters set forth in Sections 13.2.1 and 13.2.2 
  
 ARTICLE VI 
 SELLER’S DELIVERIES TO PURCHASER

  
 6.1    Delivery of Instruments and Documents.    Seller shall,
at or before the Closing, deliver or cause to be delivered to Purchaser or Purchaser’s designee the following instruments and documents: 
  
 6.1.1    Assignment of Seller’s LLC Interest.    Four executed counterparts of the Assignment of Seller’s LLC Interest. Seller shall also
deliver or cause to be delivered to Purchaser or Purchaser’s designee four executed counterparts of an assignment in the form of Exhibit B (the “Management Assignment”) of all of the right, title and interest of Seller and its
affiliates in and to all management agreements with respect to the Property,
 

 
and the right to all fees with respect to the period accruing from and after the Closing Date, which fees based on rent under the Leases shall be apportioned in a manner consistent with Article
IX hereof. 
  
 6.1.2    Organizational Documents,
Etc.    Copies of Seller’s organizational documents and operating agreement and all amendments thereto, together with Seller’s resolutions authorizing the transactions contemplated hereby. 
  
 6.1.3    Closing Certificate.    A certificate of Seller certifying that
except as would not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Seller’s LLC Interest, the LLC and/or the use, operation or value of the Property, the representations and warranties by Seller
set forth in Section 13.1 are true and correct in all material respects as of the Closing Date except as modified by notice (in accordance with Section 13.1) due to an act permitted to be taken pursuant to this Agreement. 
  
 6.1.4    Opinion.    A favorable opinion from each of Seller’s
in-house counsel and Hill & Barlow, each addressed to Purchaser (and its successors and assigns) confirming the matters set forth in Sections 13.1.1 through 13.1.5. 
  
 6.1.5    Property Specific Documents.    Except for the documents Purchaser has received as of the date
hereof (which documents are more particularly set forth on the schedule of received documents delivered by Purchaser to Seller on May 10, 2002), all material documentation, correspondence and files related to the Property (including, without
limitation, management rights), the LLC and/or Seller’s LLC Interest, as reasonably determined by David C. Gorst, in Seller’s possession or control and located in Atlanta, Georgia as of July 1, 2002; provided, however, that,
notwithstanding the foregoing but subject to the immediately following sentence, Seller shall not be required to deliver any of the foregoing documents to the extent the same are proprietary to Seller. Seller acknowledges and agrees that any notices
delivered by Seller to any third parties, other than Seller’s attorneys, consultants, accountants, and brokers, or any notices received by Seller from any such third parties, in each case, with respect to the Property (including, without
limitation, management rights), the LLC and/or Seller’s LLC Interest shall not be deemed proprietary to Seller. 
  
 6.1.6    Required Items.    All other items or amounts required by the terms of this Agreement to be delivered at or prior to Closing by Seller or as may be reasonably required
from Seller to consummate the sale of the Seller’s LLC Interest as contemplated by this Agreement. 
  
 ARTICLE VII

 BROKERS AND ADVISORS 
  
 7.1    Brokers and Advisors.    Purchaser and Seller acknowledge and represent to one another that no investment banker, advisor or brokers have been involved in this transaction on
behalf of either of them other than Goldman Sachs (“GS”). Seller shall pay all advisory fees or
 

 
brokerage commissions due to GS. Seller agrees to indemnify and hold Purchaser harmless from and against all loss, liability or expense (including, without limitation, reasonable attorneys’
fees and disbursements) arising out of any claim or claims by GS and any other investment banker, advisor, broker, finder or similar agent for commissions, fees or other compensation in connection with this transaction, which claims are based on
dealings between Seller and such other investment banker, advisor, broker, finder or similar agent. Purchaser agrees to indemnify and hold Seller harmless from and against all loss, liability or expenses (including, without limitation, reasonable
attorneys fees and disbursements) arising out of any claim or claims by any investment banker, advisor, broker, finder or similar agent (excluding GS) for commissions, fees or other compensation in connection with this transaction, which claims are
based on dealings between Purchaser and such other investment banker, advisor, broker, finder or similar agent. This Section shall survive the Closing or any termination of this Agreement. 
  
 ARTICLE VIII 
 THE CLOSING 
  

8.1    Date and Manner of Closing.    The closing of the transactions contemplated herein (the “Closing”)
shall occur at the offices of Willkie Farr & Gallagher, 787 Seventh Avenue, New York, New York on July 19, 2002 (the “Closing Date”). At the Closing all funds and instruments required to be delivered pursuant to Articles V and VI shall
be or shall have been so delivered. 
  
 ARTICLE IX 
 PRORATION, FEES, COSTS AND ADJUSTMENTS 
  
 9.1    Prorations.    Subject to the terms of this Section 9.1, at or prior to the Closing, the parties shall prorate, as of 11:59 p.m. on the date immediately preceding the Closing Date
(the “Prorations Time”), all income and expenses with respect to the Property and payable to or by the LLC, including, without limitation: (i) all real property taxes on the basis of the fiscal period for which assessed (if the Closing
shall occur before the tax rate is fixed, the apportionment of taxes shall be based on the tax rate for the preceding period applied to the latest assessed valuation); (ii) rents and other tenant payments and tenant reimbursement, if any, received
under the Leases; (iii) charges for water, sewer, electricity, gas, fuel, steam, vault taxes and other utility charges (other than those charges required to be paid directly to the utility company by Tenant) all of which shall be read promptly
before the Closing; (iv) periodic fees for licenses, permits or other authorizations with respect to the Property; and (v) all other items customarily prorated in connection with transactions of the type contemplated by this Agreement. A further
proration shall be made between the parties when the tax bill for the tax year in which the Closing occurs becomes available. In conjunction with such prorations, Seller will assign to Purchaser its share of all utility deposits which are assignable
(and Seller shall be credited with such amounts). In connection with the calculation of the Purchase Price under Section 2.1 hereof, it is anticipated that the items prorated hereunder will be adjusted on an aggregate basis against the net proceeds
of the hypothetical sale of the Property for $362,000,000. Accordingly, for purposes of adjusting the Purchase Price between Purchaser, in its capacity as purchaser of Seller’s LLC Interest, and Seller, in its capacity as seller of
Seller’s LLC Interest, the Seller shall bear 66 2/3% of the amounts debited hereunder, and shall receive
66 2/3% of the amounts credited hereunder, for the
 

 
items of income and expenses prorated or adjusted hereunder for periods on or before the Proration Time, and Purchaser shall bear 66 2/3% of the amount debited hereunder, and shall receive 66 2/3% of the amounts credited hereunder for the items of income and expense prorated or adjusted hereunder for periods after the Prorations Time. 
  
 9.1.1    Leasing Costs.    Purchaser shall receive a credit against the
Purchase Price in the amount of 66 2/3% of any unpaid tenant inducements (including, but not limited to, tenant
allowances, free rent, rent concessions and landlord construction costs) due in the 2002 calendar year which were contracted for prior to April 15, 2002 but which remain unpaid as of the Closing Date. 
  
 9.1.2    Net Equity Adjustment.    “Net Equity Amount” means the
sum, as of the Prorations Time, of all LLC cash, short-term investments, other cash equivalents (including deposits), prepaid expenses with respect to the items customarily prorated in sales of shopping centers, other items comprising working
capital and any other assets and property which are not included in the Property and which are customarily prorated in sales of shopping centers, minus amounts accrued but unpaid on existing contracts which are customarily prorated in sales of
shopping centers. An amount equal to 66 2/3% of the Net Equity Amount shall be added to the Purchase Price as a
Net Equity Adjustment if the Net Equity Amount is a positive number or deducted from the Purchaser Price as a Net Equity Adjustment if the Net Equity Amount is a negative number. 
  
 9.1.3    Rent.    Basic rents, percentage rents, parking revenue, license fees and any and all other revenues
of the LLC and payments or reimbursements for taxes, utilities and operating expenses and all other charges or reimbursables and so-called CAM charges as and when collected under the Leases including without limitation charges for any special
services provided to any Tenant, overtime HVAC or special cleaning (collectively, the “Rents”) shall be prorated. All Rents collected after the Closing under the Leases shall be applied, on a Lease by Lease basis, first, to satisfy
obligations attributable to the payment period in which the Closing occurs, second, for Rent up to one (1) month in arrears, third, in payment of all current Rents due and payable for the period after the Closing, fourth, after Rents for all current
periods have been satisfied in full, to payment of all other Rents in arrears for the periods prior to the month of and month before the month in which the Closing occurs. If at the time of Closing (as reflected in a Schedule to be delivered or
caused to be delivered by Purchaser at Closing of all amounts due and payable by any Tenant for the period prior to Closing but uncollected as of Closing, whether or not past due) or thereafter there are Rents owed by Tenants for arrears, then
Purchaser will make commercially reasonable efforts, without suit, to collect (or cause the LLC to collect) the same 66 2/3% of which, net of 66 2/3% of reasonable collection expenses, shall be for the account of Seller)
and Seller’s share of any such Rents, if received, will be remitted by Purchaser (or Purchaser will cause the LLC to remit) to Seller within 15 days of receipt. Seller expressly agrees that if Seller receives any Rents directly from Tenants
after the Closing Date, Seller shall remit same to the LLC within 15 days after receipt thereof and Purchaser shall deliver to Seller (or shall cause the LLC to deliver to Seller) the amount thereof, if any, to which Seller is entitled pursuant to
the terms hereof within 15 days after receipt thereof. An amount equal to 66 2/3% of all

 
prepaid Rents and charges as of the Closing for the period following the Closing shall be deducted from the Purchase Price. Rents in the nature of percentage rents for all Leases for the current
lease year under each Lease shall be apportioned between Seller and Purchaser as follows: The Schedule of Rents (which shall be delivered by Purchaser to Seller with the closing statement) shall include budgeted percentage rents for all Leases for
the current lease year under each Lease, which budgeted amounts shall be apportioned between Seller and Purchaser at the Closing in accordance herewith. Seller shall receive as an addition to the Purchaser Price, calculated on a Lease by Lease
basis, 66 2/3% of a fraction of the percentage rent for the current lease year for each Lease which includes the
Prorations Time under the particular Lease, the numerator of which fraction equals the number of Lease year days through the Prorations Time and the denominator of which fraction equals 365. If and to the extent payments on account of percentage
rent under any Lease have been paid prior to the Prorations Time and/or have been the subject of apportionments based on budgeted amounts in the Schedule of Rents, then Seller shall be entitled to an addition to the Purchase Price equal to 66 2/3% of the amount by which such fractions of the percentage rent finally ascertained exceeds such prepaid and/or
budgeted amount or Purchaser shall be entitled to a rebate or reduction in the Purchase Price equal to 66 2/3% of
the amount by which such fraction of the percentage rent finally ascertained is less than such prepaid and/or budgeted amount, all to the end that when percentage rents are finally ascertained under the Leases the correct amounts shall be credited
to each of the parties hereunder. 
  
 9.1.4    Closing
Statement.    The prorations statement prepared by Purchaser and approved by Seller is attached hereto as Exhibit C. Any errors in the calculation of apportionments shall be corrected or adjusted as soon as practicable
(but not more often than monthly) after the Closing Date. If it is impracticable to apportion certain items hereunder on the Closing Date, such items shall be apportioned and paid as soon as practicable thereafter. Purchaser agrees to take all
commercially reasonable actions after Closing in a timely manner in order to make the adjustments and prorations provided for hereunder, including, without limitation, billings to Tenants. The provisions of this Section 9.1 shall survive Closing
until July 31, 2003 (the “Outside Prorations Date”) and the parties hereto acknowledge and agree that, notwithstanding anything to the contrary contained in this Agreement, neither party shall have any rights or obligations with respect to
Section 9.1 from and after the Outside Prorations Date. 
  
 9.2    Seller’s Closing
Costs.    Seller shall pay (i) one-half ( 1/2) of any transfer taxes required in
connection with the sale of Seller’s LLC Interest, if any, in the amount required by Massachusetts law, (ii) one-half ( 1/2) of all recording fees, (iii) one-half ( 1/2) of (a) any title insurance premiums required to be
paid in order to obtain an owner’s policy of title insurance with respect to Seller’s LLC Interest, (b) costs associated with any endorsements to such title policy and (c) all other title charges with respect to Seller’s LLC Interest,
(iv) one-half ( 1/2) of any fees for searches done with respect to Seller’s LLC Interests, (v) Seller’s
own attorneys’ fees and (vi) any brokerage or investment banking fee payable to GS; provided, however, that, with respect to items (i) through (iv) above, Seller’s costs shall in no event exceed Seventy Five Thousand and 00/100 Dollars
($75,000.00). 

  
 9.3    Purchaser’s Closing
Costs.    Purchaser shall pay (i) one-half ( 1/2) of any transfer taxes required in
connection with the sale of Seller’s LLC Interest, if any, in the amount required by Massachusetts law (ii) one-half ( 1/2) of all recording fees, (iii) one-half ( 1/2) of (a) any title insurance premiums required to be
paid in order to obtain an owner’s policy of title insurance with respect to Seller’s LLC Interest, (b) costs associated with any endorsements to such title policy and (c) all other title charges with respect to Seller’s LLC Interest,
(iv) one-half ( 1/2) of any fees for searches done with respect to Seller’s LLC Interests, (v)
Purchaser’s due diligence expenses, including all professional fees, and (vi) Purchaser’s own attorneys’ fees; provided, however, that, with respect to items (i) through (iv) above, Purchaser agrees that it shall also be responsible
for any and all of Seller’s costs therefor in excess of Seventy Five Thousand and 00/100 Dollars ($75,000.00).   
  
 9.4    Treatment of Transaction for Tax Purposes.    Purchaser and Seller agree not to report the transactions contemplated by this Agreement as being
subject to any real estate transfer or similar tax. Purchaser shall indemnify Seller against any Massachusetts transfer or similar tax which is imposed on the sale of real property or interest therein by the Commonwealth of Massachusetts in
connection with the transactions contemplated by this Agreement in excess of the difference between $75,000 and all amounts paid by Seller pursuant to clauses (i) through (iv) of Section 9.2, and Seller shall indemnify the Purchaser for the
difference between the first $75,000 of any such tax and all amounts paid by Seller pursuant to clauses (i) through (iv) of Section 9.2. Purchaser and Seller shall give prompt notice to the other of all communications regarding such transfer tax
with any taxing authority. Purchaser shall have the sole authority to resolve any and all disputes regarding the obligations as to such tax. 
  
 ARTICLE X 
 INTENTIONALLY OMITTED 
  
 ARTICLE XI 
 INDEMNITY 
  
 11.1    Indemnification by Seller.    Seller agrees to indemnify, hold harmless and defend Purchaser from and against:

  
 11.1.1    subject to Articles 12 and 13, any loss, liabilities, costs or
expenses suffered or incurred by Purchaser because any representation or warranty made by Seller in this Agreement, or in any documents furnished by Seller to the Purchaser in connection with the transactions contemplated in this Agreement, shall be
materially false or untrue; provided, however, only to the extent the same is discovered by Purchaser after the Closing; 
  
 11.1.2    any loss, liabilities, costs or expenses suffered or incurred by Purchaser or any of its Affiliates in respect of that certain Guaranty Agreement, dated as of July 30, 1997 (the “Recourse
Carve-Out Guaranty”), entered into by Overseas Partners Capital 

 
Corp. in favor of Metropolitan Life Insurance Company with respect to the loan secured by a mortgage on the Property, in each case, only to the extent the same (a) resulted from any act or
omission of Seller or its Affiliates and (b) arose or accrued prior to the Closing Date; 
  
 11.1.3    any claims, liabilities, costs and expenses arising on account of any items which are prorated or credited hereunder and which claims, liabilities, costs or expenses accrue or which are based on events
which occurred prior to the Prorations Time; and 
  
 11.1.4    all reasonable
costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements) incurred by the Purchaser in connection with any action, suit, proceeding, demand, assessment or judgment instituted by a third party or by the
Purchaser against Seller or a third party incident to any of the matters indemnified against in this subsection. 
  
 11.2    Indemnification by Purchaser.    Purchaser agrees to indemnify, hold harmless and defend Seller from and against: 
  
 11.2.1    subject to Articles 12 and 13, any loss, liabilities, costs or expenses suffered or incurred by Seller because any
representation or warranty made by the Purchaser in this Agreement or in any document furnished by Purchaser to the Seller in connection with the transactions contemplated in this Agreement, shall be materially false or untrue; provided, however,
only to the extent the same is discovered by Seller after the Closing; 
  
 11.2.2    any loss, liabilities, costs or expenses suffered or incurred by Seller or any of its Affiliates in respect of the Recourse Carve-Out Guaranty, in each case, only to the extent the same arises and
accrues from and after the Closing Date; 
  
 11.2.3    any claims, liabilities,
costs or expenses arising on account of any items which are prorated or credited hereunder and which claims, liabilities accrue or which are based on events which occurred on or after the Prorations Time; and 
  
 11.2.4    all reasonable costs and expenses (including, without limitation, reasonable attorneys’
fees and disbursements) incurred by the Seller in connection with any action, suit, proceeding, demand, assessment or judgment instituted by a third party or by the Seller against a third party incident to any of the matter indemnified against in
this subsection 
  
 11.3    Procedure for obtaining
Indemnification.    If any action, suit or proceeding is commenced, or if any claim, demand or assessment is asserted in respect of which a party is indemnified hereunder or under any agreement or document delivered pursuant
hereto, the indemnified party shall give notice thereof to the indemnifying party and the indemnifying party shall be entitled to control the defense, compromise or settlement thereof, at its own cost and expense, with counsel reasonably
satisfactory to the indemnified party, and the indemnified party shall cooperate fully and make available to the indemnifying party such information under its control or in its possession relating thereto and may, at its own cost and expense,
participate in such defense. 

  
 11.4    Survival.    The
provisions of this Article 11 shall survive the Closing. 
  
 ARTICLE XII 
 INTENTIONALLY DELETED 
  
 ARTICLE XIII  
 REPRESENTATIONS AND WARRANTIES 
  
 13.1    Seller’s Warranties and Representations.    The matters set forth in this Section 13.1 constitute representations and warranties by Seller which are now and shall, in all
material respects, at the Closing be true and correct. As used in this Section 13.1, the phrase “to the extent of Seller’s actual knowledge” or “actually known to Seller” shall mean the actual knowledge of David C. Gorst.
There shall be no duty imposed or implied to investigate, inspect, or audit any such matters, and there shall be no personal liability on the part of such individual. 
  
 13.1.1    Power and Authority.    Overseas is duly formed, validly existing and in good standing under the
Laws of the State of Delaware and Copley is duly formed, validly existing and in good standing under the Laws of the State of Delaware and each has the requisite power and authority to carry on its business in the Commonwealth of Massachusetts as it
is now being conducted. This Agreement constitutes the legal, valid and binding obligation of Seller and is enforceable in accordance with its terms and Seller has the legal power, right and authority to enter into this Agreement and to consummate
the transactions contemplated hereby. Each of the persons signing this Agreement on behalf of Seller is authorized to do so. 
  
 13.1.2    No Conflict With Agreements.    The execution, delivery and performance of this Agreement, in accordance with its terms, does not violate any
terms, conditions or provision of (i) Seller’s by-laws or articles of incorporation/organization, (ii) any judgment, order, injunction, decree, regulation or ruling of any court or other governmental authority to which Seller is subject, or
(iii) to the extent that such agreement does not relate to the Property, any agreement to which Seller is a party, nor shall such execution, delivery, performance or compliance constitute a material default thereunder. 
  
 13.1.3    Consents.    Seller has obtained all non-Property related
required consents, covenants, releases and permissions and has given all required notifications and has complied with all applicable non-Property related Legal Requirements of any kind or nature in order to perform its covenants and obligations
herein and to accomplish the transactions provided herein or in any of the documents required to be delivered pursuant hereto. 
  
 13.1.4    Contravention.    Seller is not prohibited from consummating the transactions contemplated by this Agreement or from executing or delivering
this Agreement by any Law, or any non-Property related agreement to which Seller is a party or by which it is bound. 

  
 13.1.5    Non-Foreign
Person.    Each Seller is a “United States Person” within the meaning of Section 1445(f)(3) and 7701(a)(30) of the Internal Revenue Code of 1986, as amended. 
  

13.1.6    LLC Taxes.    To Seller’s knowledge, the LLC has filed all tax returns which are required
to be filed by it and has paid or made provisions for the payment of all taxes due on or before the date hereof. To Seller’s knowledge, no taxing authority has asserted any deficiency with respect to any such return, nor, to Seller’s
knowledge, has the LLC been notified as to any claim for taxes which have not been paid, nor, to Seller’s knowledge, has the LLC been the subject of or notified of any governmental audit proceeding with respect to the payment of taxes which
remains outstanding. To Seller’s knowledge, no waiver or extension is in effect, or has been requested, with respect to the filing of any tax return or the payment of any tax by the LLC other than the extension in effect with respect to the
filing of LLC’s 2001 tax returns. All references in this Section 13.1.6 to any tax, tax return, or taxing authority, shall mean all federal and state income taxes. Purchaser and Seller agree that Seller at the expense of the LLC (to be paid
66.67% by Seller and 33.33% by Purchaser) shall prepare and timely file (i) the final income tax returns of the LLC for the period commencing on January 1, 2002 and ending on the Closing Date and which are required to be filed solely by reason of a
termination of the taxable year of the LLC (the “Final Return”) and (ii) all extensions of the time for filing any Final Return. The Final Return shall, in any event, be filed by Seller no later than October 31, 2002. Notwithstanding the
foregoing, Seller shall deliver, not less than 30 days prior to the date for the filing thereof, a copy of Seller’s proposed Final Return, together with copies of all work papers, analyses and memoranda relating thereto, to Purchaser for
Purchaser’s review, comment and approval at Purchaser’s expense, and the Final Return shall not be filed by Seller unless and until Purchaser has consented thereto. Failure by Purchaser to respond to Seller’s request for approval
within twenty (20) days after receipt thereof shall be deemed to be an approval of the Final Return. In addition to the foregoing, Purchaser shall have the sole right to make, or cause Seller to make on behalf of LLC a 754 election in the Final
Return if one has not been made by the LLC. 
  
 13.1.7    Pending
Actions.    To Seller’s knowledge, There are no pending actions, suits, arbitration, claims, proceedings at law or in equity or other matters affecting Seller which would have a materially adverse affect on the LLC,
Seller or Seller’s ability to consummate the transactions contemplated by this Agreement and, to Seller’s knowledge, Seller has not received and, to Seller’s actual knowledge, the LLC or the Manager have not received any written
notices of any such threatened or contemplated actions, suits, arbitration, claims or proceedings at law or in equity. 
  
 13.1.8    Seller LLC Interest.    Each of Seller’s LLC Interest is free and clear of all liens, encumbrances, liabilities, claims, rights, agreements, covenants and
restrictions of any kind or character, including, but not limited to, any security interest or any restriction on sale or assignment or granting of any option, right or agreement for the purchase or acquisition of the same or any interest in the
same. 
  
 13.1.9    Preferred Returns.    There are no
outstanding default loans, accrued preferred returns or internal rate of return look-backs contained in the LLC Agreement or 

 
otherwise and/or affecting the LLC or Seller’s interest therein or the amount of the Purchase Price payable to Seller hereunder. 
  
 13.1.10    LLC Defaults.    Except as described on Exhibit D attached hereto (the “Alleged
Defaults”), to Seller’s knowledge, neither party constituting Seller has made any claim of default against the other, against Urban under the LLC Agreement or against Urban Retail under the Copley Place management agreement, and no event
or circumstances has occurred which, with the passage of time, the giving of notice or both, could constitute a default by the other, by Urban under the LLC Agreement or by Urban Retail under the Copley Place management agreement. As of the date
hereof Seller (i) agrees to take no further action with respect to the Alleged Defaults and (ii) acknowledges that, to Seller’s actual knowledge, no event or circumstances has occurred which, with the passage of time, the giving of notice or
both, could constitute a default by Urban Retail Properties Co. (“Urban Retail”) under or with respect to the Copley Place management agreement, and agrees not to make any other claims or raise any other defaults against Purchaser, Urban
Retail or any of their respective Affiliates under or with respect to the Copley Place management agreement or the LLC Agreement or otherwise with respect to management matters based upon any action or event that occurred, arose or accrued prior to
the date hereof. On the Closing Date, Seller shall automatically be deemed to have waived the Alleged Defaults and shall take all actions necessary to dismiss, with prejudice, that certain civil action 02-2912 filed against Urban Retail Properties
Co. in the Superior court of the Commonwealth of Massachusetts on July 2, 2002, and all other actions, if any, against Purchaser or any of its affiliates with respect to Copley Place. 
  
 13.1.11    Transfer of all of Seller’s Interest.    After giving effect to the closing of the
transactions contemplated hereby, Seller shall have transferred to Purchaser any and all interest owned by Seller, directly or indirectly, in the Property and, Seller shall no longer own, directly or indirectly, any property and/or interest in the
development commonly known as Copley Place. 
  
 13.1.12    Bankruptcy Search
Results.    Seller is not, directly or indirectly, related to, controlled by or under common control with (or has an interest in) Overseas Capital Corporation d/b/a American’s Harvest Restaurant and Lounge and/or
Overseas Capital Corp. d/b/a America’s Harvest Restaurant and Lounge and none of such entities has an interest in Seller. In addition, none of bankruptcy petitions (i) numbered 92-42089 by Overseas Capital Corporation d/b/a American’s
Harvest Restaurant and Lounge, as debtor, (ii) numbered 93-17611 by Overseas Capital Corporation d/b/a American’s Harvest Restaurant and Lounge, as debtor and/or (iii) numbered 93-2034 by Overseas Capital Corp. d/b/a America’s Harvest
Restaurant and Lounge are in any way related to or effect Seller. 
  
 13.2    Purchaser’s
Warranties and Representations.    The matters set forth in this Section 13.2 constitute representations and warranties by Purchaser which are now and shall, at the Closing, be true and correct. 

  
 13.2.1    Power and
Authority.    Purchaser is a limited partnership, duly organized and validly existing and in good standing under the Laws of the State of Delaware. This Agreement constitutes the legal, valid and binding obligation of
Purchaser enforceable in accordance with its terms; Purchaser has the legal power, right and authority to enter into this Agreement and to consummate the transactions contemplated hereby. 
  
 13.2.2    Execution and Delivery.    The execution and delivery of this Agreement and the performance by
Purchaser of its obligations hereunder are not and will not violate any law, rule, judgment, regulation, order, writ, injunction or decree of any court or the United States of America or the Commonwealth of Massachusetts or any political subdivision
of either of the foregoing, to the extent any of the foregoing have jurisdiction over the Purchaser or the Property, or any decision or ruling of any arbitrator to which Purchaser is a party or by which Purchaser or the Property is bound or
affected, such that Purchaser’s performance hereunder would be materially and adversely impacted on account of such violation. 
  
 13.2.3    Independent Investigation.    The consummation of this transaction shall constitute Purchaser’s acknowledgment that it has independently
inspected and investigated Seller’s LLC Interest and the Property and has made and entered into this Agreement based upon such inspection and investigation and its own examination of the condition of the Property and the representations and
warranties of Seller set forth herein. 
  
 13.3    No Other Warranties and
Representations.    Except as specifically set forth in this Agreement, neither Seller nor Purchaser has made or authorized anyone to make, any warranty or representation as to any written materials delivered to Purchaser,
the present or future physical condition, development potential, zoning, building or land use law or compliance therewith (including, without limitation, the Americans with Disabilities Act), operation, income generated by, or any other matter or
thing affecting or relating to the LLC, the Property or any matter or thing pertaining to this Agreement. Purchaser expressly acknowledges that, except as specifically set forth in this Agreement, (i) it is relying on its own knowledge and due
diligence with respect to the Property and all matters related thereto, (ii) at the time of Closing the Property will be in an “as-is/where-is” condition, and (iii) no warranty or representation as to the present or future physical
condition of the Property or any other matter pertaining to this Agreement has been made and that Purchaser is not relying on any warranty or representation, express or implied, whatsoever. 

  
 ARTICLE XIV 
 INTENTIONALLY DELETED 
  
 ARTICLE XV 
 INTENTIONALLY DELETED 
  
 ARTICLE XVI 
 NOTICES 
  
 All notices, demands or other
communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon the receipt by facsimile transmission as evidenced by receipt transmission report, or upon the delivery by overnight express delivery service or
by hand or three (3) business days after mailing by certified mail postage prepaid, return receipt requested, addressed as follows: 
  
 If to Purchaser, to: 
  
 Simon Property Group, L.P. 
 National City Center 
 P. O. Box 7033 
 Indianapolis, IN 46207 
 Attention: James M. Barkley 
 Phone: (317) 263-7083 
 Fax: (317) 685-7377 
  
 with a copy to: 
  
 Willkie Farr & Gallagher 
 787 Seventh Avenue 
 New York, New York 10019 
 Attention: Steven D. Klein 
 Phone: 212-728-8221 
 Fax: 212-728-8111 
  
 If to Seller, to: 
  
 Overseas Capital Co. 
 2050 Marconi Drive, Suite 300 
 Alpharetta, Georgia 30005 
 Attention: David C. Gorst 
 Phone: (770) 777-8344 
 Fax: (770) 777-8346 

  
 and 
  
 Copley Place Corp., Inc. 
 2050 Marconi Drive, Suite 300 
 Alpharetta, Georgia 30005 
 Attention: David C. Gorst 
 Phone: (770) 777-8344 
 Fax: (770) 777-8346 
  
 with a copy to: 
  
 Overseas Partners Ltd. 
 Cumberland House 
 One Victoria Street 
 Hamilton HM 11 
 Bermuda 
 Attention: Mark R. Bridges 
 Phone:
(441) 298-2421 
 Fax: (441) 292-9142 
  
 and: 
  
 Hill & Barlow, a Professional Corporation 
 One International Place 
 Boston, Massachusetts 02110-2600 
 Attention: Elliot M. Surkin, Esq. 
 Phone: (617) 428-3399 
 Fax: (617) 428-3500 
  
 or to such other address or to such
other person as any party shall designate to the others for such purpose in the manner hereinabove set forth. 
  
 ARTICLE
XVII 
 GENERAL PROVISIONS 
  
 17.1    Captions.    Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of
the terms hereof. 
  
 17.2    Exhibits.    All Exhibits referred to
herein and attached hereto are a part hereof. 
  
 17.3    Entire
Agreement.    This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral
or written, are merged herein. 

  
 17.4    Modification.    No
modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be
sought. 
  
 17.5    Attorneys’ Fees.    Should any party hereto
employ an attorney for the purpose of enforcing or construing this Agreement, or any judgment based on this Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy, arbitration, declaratory relief or other litigation, the
prevailing party shall be entitled to receive from the other party or parties thereto reimbursement for all reasonable attorneys’ fees and all costs, including but not limited to service of process, filing fees, court and court reporter costs,
investigative costs, expert witness fees and the cost of any bonds, whether taxable or not, and such reimbursement shall be included in any judgment, decree or final order issued in that proceeding. The “prevailing party” means the party
in whose favor a judgment, decree or final order is rendered. This provision shall survive Closing. 
  
 17.6    Governing Law.    This Agreement shall be construed and enforced in accordance with the laws of the State of New York. 
  
 17.7    Time of Essence.    Time is of the essence to this Agreement and to all dates and time periods set forth herein.

  
 17.8    Survival of Warranties.    Except as otherwise
specifically set forth in this Agreement, (i) the warranties and representations contained in Sections 13.1.1 through 13.1.5, 13.1.6, 13.1.8, 13.1.9, 13.1.11, 13.12 and 13.2 shall survive for a period of three (3) years after the Closing and (ii)
the warranties and representations contained in Section 13.1.7 and 13.1.10 shall survive the Closing and the payment of the Purchase Price for a period of three (3) months after the Closing, except to the extent that Purchaser or Seller, as the case
may be, shall have commenced, on or before such three (3) month anniversary, a legal proceeding based on the breach thereof as of the date of the Closing. The maximum total liability for which Seller shall be responsible with respect to the
representations and warranties contained in Sections 13.1.6, 13.1.7 and 13.1.10 only shall not exceed Seventy-Five Thousand and 00/100 Dollars ($75,000.00) in the aggregate. Unless otherwise expressly herein stated to survive, all other
representations, covenants, conditions and agreements contained herein shall merge into and be superseded by the various documents executed and delivered at the Closing and shall not survive the Closing. 
  
 17.9    Assignment by Purchaser.    Purchaser may not assign its rights under this
Agreement except (i) to an Affiliate (as herein defined), (ii) to the LLC or (iii) to any Person in order to effectuate the transactions contemplated hereby in a manner reasonably acceptable to Purchaser, provided, that no such assignment shall
release Purchaser from, or affect Purchaser’s liability for, any of its covenants, undertakings, warranties and representations under this Agreement, whether before or after Closing. Without intending to be released of its obligations
hereunder, Purchaser hereby notifies Seller of its intent to assign its rights under this Agreement to its Affiliates, SPG Copley Place Associates, LLC, a Delaware limited liability company, and Simon Copley Place, Inc., a Delaware corporation.
Purchaser agrees to deliver written notice to Seller prior to any assignment of its rights under this Agreement. 

  
 17.10    Intentionally Omitted. 

 
 17.11    Severability.    If any term, covenant, condition, provision or
agreement herein contained is held to be invalid, void or otherwise unenforceable by any court of competent jurisdiction, the fact that such term, covenant, condition, provision or agreement is invalid, void or otherwise unenforceable shall in no
way affect the validity or enforceability of any other term, covenant, condition, provision or agreement herein contained. 
  
 17.12    Successors and Assigns.    All terms of this Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and their respective legal
representatives, successors and assigns. 
  
 17.13    Interpretation.    Seller and Purchaser acknowledge each to the other that both they and their counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or Exhibits hereto. 
  

17.14    Counterparts.    This Agreement may be executed in any number of counterparts, each of which so executed shall
be deemed original; such counterparts shall together constitute but one agreement. Faxed signature pages shall have the same legal effect as an original signature page. 
  
 17.15    Recordation.    This Agreement may not be recorded and any attempt to do so shall be of no effect whatsoever.

  
 17.16    Intentionally Omitted. 
  

17.17    WAIVER OF JURY TRIAL.    THE PARTIES HERETO HEREBY EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR THE OTHER AGREEMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE MODIFICATION THEREOF OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR THE OTHER AGREEMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR
THERETO, IN EACH CASE WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND THE PARTIES HEREBY AGREE AND CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF
ANY RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY. THIS SECTION SHALL SURVIVE CLOSING OR TERMINATION OF THIS AGREEMENT. 

  
 17.18    Further
Assurances.    Seller and Purchaser each agree to do such further acts and things and to execute and deliver such additional agreements and instruments as the other may reasonably require to consummate, evidence or confirm
the sale or any other agreement contained herein in the manner contemplated hereby. The provisions of this Section 17.18 shall survive the Closing. 
  
 17.19    Non-Waiver of Rights.    No failure or delay of either party in the exercise of any right given to such party hereunder shall constitute a waiver
thereof unless the time specified herein for exercise of such right has expired, nor shall any single or partial exercise of any right preclude other or further exercise thereof or of any other right. The waiver of any breach hereunder shall not be
deemed to be a waiver of any other or any subsequent breach hereof. 
  
 17.20    Confidentiality.    Seller and Purchaser shall maintain the confidentiality of this sale and purchase and shall not, except as required by law or governmental regulation
applicable to Seller or Purchaser, disclose the terms of this Agreement or of such sale and purchase to any third parties whomsoever other than (i) the principals of GS and L & B Realty Advisors, Inc., (ii) any prospective purchaser of
Purchaser’s interest in all or any portion of the Property, (iii) such other persons whose assistance or consent is required in carrying out the terms of this Agreement including, without limitation, any partners of Purchaser and (iv) only to
the extent required thereby, Rating Agencies. Except as required by law, neither Seller nor Purchaser shall at any time issue a press release or otherwise communicate with media representatives regarding this sale and purchase unless such release or
communication has received the prior approval of the other party hereto. Purchaser agrees that all documents and information regarding the Property or the LLC of whatsoever nature made available to it by Seller or Seller’s agents and the
results of all tests and studies of the Property (collectively, the “Proprietary Information”) are confidential and Purchaser shall not disclose any Proprietary Information to any other person except those assisting it with the analysis of
the Property and any partners of Purchaser, and only after procuring such person’s agreement to abide by these confidentiality restrictions. This Section 17.20 shall survive the Closing or termination of the Agreement. 
  
 17.21    Certain Definitions.    The following terms used but not otherwise defined herein
shall have the following meanings: 
  
 “Affiliate” as used with respect to Seller or any other Person
(other than Purchaser), shall mean any Person controlled, controlled by or under common control with Seller. The term “control” and the correlative terms controlled, controlled by and under common control with shall mean the power to
direct the management and policies of such Person. 
  
 “Affiliate” as used with respect to Purchaser, shall
mean any Person or entity directly or indirectly controlling, controlled by or under common control with Purchaser. 
  
 “business day” shall mean any day other than a Saturday, Sunday or other day on which commercial banks are permitted or required to be closed in the Commonwealth of Massachusetts. 
  
 “Closing Date” shall mean the date on which the Closing occurs as provided in Section 8.1. 

  
 “Governmental Authority” means any agency, bureau, commission, court,
department, official political subdivision, tribunal or other instrumentality of any government whether federal, state, local, domestic or foreign. 
  
 “Leases” shall mean any lease, subleases or occupancy agreements affecting the Property 
  
 “Laws” shall mean any applicable law, rule, regulation (including, without limitation, the Americans with Disabilities Act) or municipal ordinances, orders or requirements that have been
noted in or issued by any federal, state or municipal department with competent jurisdiction. 
  
 “Person”
shall mean an association, corporation, stock company, estate, general partnership (including any Registered Limited Liability Partnership or Foreign Limited Liability Partnership), limited association, limited liability company, foreign limited
liability company, joint venture, limited partnership, natural person, real estate investment trust, business trust or other trust, custodian, nominee or other individual in its own or any representative capacity. In addition, the term means the
heirs, executors, administrators, legal representatives, successors and assigns of that “Person” where the context so permits. 
  
 “Tenant” shall mean any tenant pursuant to a Lease. 
  
 [Signature pages follow.]

  
 IN WITNESS WHEREOF, this Agreement has been executed as of the date first set
forth above. 
  
 SELLERS: 
  
 
	 OVERSEAS CAPITAL CO.
 
	 
	 By:
 	 	 /S/ MARK R BRIDGES
 

	  	 	 Name: Mark R. Bridges
 Title: Director
 

 
  
 
	  
	 
	 By:
 	 	 /S/ DAVID C. GORST
 

	  	 	 Name: David C. Gorst
 Title: Vice President, Real Estate

 
  
 
	 COPLEY PLACE CORP., INC.
 
	 
	 By:
 	 	 /S/ MARK R. BRIDGES        
 

	  	 	 Name: Mark R. Bridges
 Title: Director
 

 
  
 
	 
	 By:
 	 	 /S/ DAVID C. GORST        
 

	  	 	 Name: David C. Gorst
 Title: Vice President, Real Estate

 
  
 [Signatures continued on next page.] 

  
 PURCHASER: 
  
 
	 SIMON PROPERTY GROUP, L.P.
 
	 
	 By:
 	 	 Simon Property Group, Inc. its
 general
partner        
 
	  	 	  

 
  
 
	 
	 By:
 	 	 /S/ RICHARD S. SOKOLOV        
 

	  	 	 Name: Richard S. Sokolov
 Title: President
 

 

  
 AGREEMENT 
  
 AMONG 
  
 OVERSEAS CAPITAL CO.

 and 
 COPLEY PLACE CORP., INC. 
 (COLLECTIVELY, SELLER) 
  
 AND

  
 SIMON PROPERTY GROUP, L.P. 
 (PURCHASER) 

  
 TABLE OF CONTENTS 
  
 
	 Section
 
	  	 Page
 

	 ARTICLE I
 	  	  
	 RECITALS
 	  	  
	 1.1       The LLC
 	  	 1
 
	 1.2       Real Property and Personal Property
 	  	 1
 
	 1.3       Seller’s LLC Interest
 	  	 1
 
	 1.4       Purchaser’s LLC Interest
 	  	 2
 
	 1.5       Purchase and Sale
 	  	 2
 
	 
	 ARTICLE II
 	  	  
	 PURCHASE AND SALE/ PURCHASE PRICE
 	  	  
	 2.1       Purchase Price
 	  	 2
 
	 2.2       No Unintended Assumption of Liabilities
 	  	 2
 
	 
	 ARTICLE III
 	  	  
	 INTENTIONALLY OMITTED
 	  	  
	 
	 ARTICLE IV
 	  	  
	 INTENTIONALLY OMITTED
 	  	  
	 
	 ARTICLE V
 	  	  
	 PURCHASER’S DELIVERIES TO SELLER
 	  	  
	 5.1       Deliveries
 	  	 3
 
	 5.1.1    Purchase Price
 	  	 3
 
	 5.1.2    Assignment of Seller’s LLC Interest
 	  	 3
 
	 5.1.3    Organizational Documents, Etc.
 	  	 3
 
	 5.1.4    Required Items
 	  	 3
 
	 5.1.5    Opinion
 	  	 3
 
	 
	 ARTICLE VI
 	  	  
	 SELLER’S DELIVERIES TO PURCHASER
 	  	  
	 6.1       Delivery of Instruments and Documents
 	  	 3
 
	 6.1.1    Assignment of Seller’s LLC Interest
 	  	 3
 
	 6.1.2    Organizational Documents, Etc.
 	  	 4
 
	 6.1.3    Closing Certificate
 	  	 4
 

 

 
	 6.1.4    Opinion
 	  	 4
 
	 6.1.5    Property Specific Documents
 	  	 4
 
	 6.1.6    Required Items
 	  	 4
 
	 
	 ARTICLE VII
 	  	  
	 BROKERS AND ADVISORS
 	  	  
	 7.1       Brokers and Advisors
 	  	 4
 
	 ARTICLE VIII
 	  	  
	 THE CLOSING
 	  	  
	 8.1       Date and Manner of Closing
 	  	 5
 
	 
	 ARTICLE IX
 	  	  
	 PRORATION, FEES, COSTS AND ADJUSTMENTS
 	  	  
	 9.1       Prorations
 	  	 5
 
	 9.1.1    Leasing Costs
 	  	 6
 
	 9.1.2    Net Equity Adjustment
 	  	 6
 
	 9.1.3    Rent
 	  	 6
 
	 9.1.4    Closing Statement
 	  	 7
 
	 9.2       Seller’s Closing Costs
 	  	 7
 
	 9.3       Purchaser’s Closing Costs
 	  	 8
 
	 9.4       Treatment of Transaction for Tax Purposes
 	  	 8
 
	 
	 ARTICLE X
 	  	  
	 INTENTIONALLY OMITTED
 	  	  
	 
	 ARTICLE XI
 	  	  
	 INDEMNITY
 	  	  
	 11.1     Indemnification by Seller
 	  	 8
 
	 11.2     Indemnification by Purchaser
 	  	 9
 
	 11.3     Procedure for obtaining Indemnification
 	  	 9
 
	 11.4     Survival
 	  	 10
 

 

  
 
	 ARTICLE XII
 	  	  
	 INTENTIONALLY DELETED
 	  	  
	 
	 ARTICLE XIII
 	  	  
	 REPRESENTATIONS AND WARRANTIES
 	  	  
	 13.1         Seller’s Warranties and Representations

	  	 10
 
	 13.1.1      Power and Authority
 	  	 10
 
	 13.1.2      No Conflict With Agreements
 	  	 10
 
	 13.1.3      Consents
 	  	 10
 
	 13.1.4      Contravention
 	  	 10
 
	 13.1.5      Non-Foreign Person
 	  	 11
 
	 13.1.6      LLC Taxes
 	  	 11
 
	 13.1.7      Pending Actions
 	  	 11
 
	 13.1.8      Seller LLC Interest
 	  	 11
 
	 13.1.9      Preferred Returns
 	  	 11
 
	 13.1.10    LLC Defaults
 	  	 12
 
	 13.1.11    Transfer of all of Seller’s Interest
 	  	 12
 
	 13.1.12    Bankruptcy Search Results
 	  	 12
 
	 13.2         Purchaser’s Warranties and Representations

	  	 12
 
	 13.2.1      Power and Authority
 	  	 13
 
	 13.2.2      Execution and Delivery
 	  	 13
 
	 13.2.3      Independent Investigation
 	  	 13
 
	 13.3         No Other Warranties and Representations
 	  	 13
 
	 
	 ARTICLE XIV
 	  	  
	 INTENTIONALLY DELETED
 	  	  
	 
	 ARTICLE XV
 	  	  
	 INTENTIONALLY DELETED
 	  	  
	 
	 ARTICLE XVI
 	  	  
	 NOTICES
 	  	  
	 
	 ARTICLE XVII
 	  	  
	 GENERAL PROVISIONS
 	  	  
	 17.1         Captions
 	  	 15
 
	 17.2         Exhibits
 	  	 15
 
	 17.3         Entire Agreement
 	  	 15
 
	 17.4         Modification
 	  	 16
 

 

  
 
	 17.5       Attorneys’ Fees
 	  	 16
 
	 17.6       Governing Law
 	  	 16
 
	 17.7       Time of Essence
 	  	 16
 
	 17.8       Survival of Warranties
 	  	 16
 
	 17.9       Assignment by Purchaser
 	  	 16
 
	 17.10     Intentionally Omitted
 	  	 17
 
	 17.11     Severability
 	  	 17
 
	 17.12     Successors and Assigns
 	  	 17
 
	 17.13     Interpretation
 	  	 17
 
	 17.14     Counterparts
 	  	 17
 
	 17.15     Recordation
 	  	 17
 
	 17.16     Intentionally Omitted
 	  	 17
 
	 17.17     WAIVER OF JURY TRIAL
 	  	 17
 
	 17.18     Further Assurances
 	  	 18
 
	 17.19     Non-Waiver of Rights
 	  	 18
 
	 17.20     Confidentiality
 	  	 18
 
	 17.21     Certain Definitions
 	  	 18
 

 

  
 EXHIBITS 
  

	EXHIBIT
	 
	A    Assignment and Assumption of Limited Liability Company Interest 
 

	EXHIBIT
	 
	B    Assignment and Assumption of Management Agreements 
 

	EXHIBIT
	 
	C    Prorations Statement 
 

	EXHIBIT
	 
	D    LLC Defaults 
 

  
 EXHIBIT A 
  
 Assignment And Assumption Of Limited Liability Company Interest 

  
 ASSIGNMENT AND ASSUMPTION OF LIMITED LIABILITY COMPANY INTEREST 

 
 This Assignment and Assumption of Limited Liability Company Interest, dated as of July 19, 2002 (this
“Assignment”), is entered into by and among Overseas Capital Co., a Delaware corporation, having an address at 2050 Marconi Drive, Suite 31, Alpharetta, Georgia 30005 (“Overseas”) and Copley Place Corp., Inc., a
Delaware corporation, having an address at 2050 Marconi Drive, Suite 31, Alpharetta, Georgia 30005, (“Copley”, collectively with Overseas, hereinafter referred to as “Assignor”), as assignor, and SPG Copley
Associates, LLC, a Delaware limited liability company (“SPG Copley”), having an address at National City Center, P.O. Box 7033, Indianapolis, Indiana 46207 and Simon Copley Place, Inc., a Delaware corporation (“Simon
Copley”, collectively with SPG Copley, “Assignee”), having an address at National City Center, P.O. Box 7033, Indianapolis, Indiana 46207, as assignee. 
  
 RECITALS: 
  
 A.    Overseas
holds a 65 2/3% managing member interest (the “Overseas Interest”) in Copley Place Associates, LLC, a limited liability company (the “Company”) organized under the laws of the State of Delaware and existing pursuant
to the Second Amended and Restated Limited Liability Company Agreement of Copley Place Associates, LLC dated July 30, 1997 (as amended by that certain First Amendment to Second Amended and Restated Limited Liability Company Agreement dated August 1,
1997, the “LLC Agreement”); 
  
 B.    Copley holds a 1% member interest (the
“Copley Interest”, together with the Overseas Interest, the “Interest”) in the Company; 
  
 C.    Pursuant to that certain Agreement, dated as of July 19, 2002 (the “Agreement”) by and among Overseas, Copley and each Assignee (by assignment from Simon Property Group, L.P.), Overseas will
assign, transfer and convey all of its right, title and interest in and to the Company, including, without limitation, the Overseas Interest, to SPG Copley, Copley will assign, transfer and convey all of its right, title and interest in and to the
Company, including, without limitation, the Copley Interest, to Simon Copley and each Assignee will assume each Assignor’s right, title and interest in and to the Company being so assigned, including, without limitation, the Overseas Interest
and the Copley Interest, respectively; and 
  
 D.    Capitalized terms used but not defined in
this Assignment shall have the meanings ascribed thereto in the Agreement. 
  
 NOW, THEREFORE, the undersigned hereby
agree as follows: 
  

	 	1.
	 
	Assignment and Assumption.    Overseas hereby assigns, transfers and conveys all of its’ interest in the Company, including,
without limitation, the Overseas Interest, and all of its right in its capital account in the Company, to SPG Copley and SPG Copley hereby accepts and assumes all of Overseas’ interest in the Company, including, without limitation, the Overseas
Interest, and will be bound by and hereby accepts and adopts all of the terms, provisions and conditions of the LLC Agreement as the managing member from and after the date of this 
 

	 	
Assignment. Copley hereby assigns, transfers and conveys all of its’ interest in the Company, including, without limitation, the Copley Interest, and all of its right in its capital account
in the Company, to Simon Copley and Simon Copley hereby accepts and assumes all of Copley’s interest in the Company, including, without limitation, the Copley Interest, and will be bound by and hereby accepts and adopts all of the terms,
provisions and conditions of the LLC Agreement as the member from and after the date of this Assignment. 
 

  

	 	2.
	 
	Admission.    Each of the signatories hereto acknowledges and agrees that contemporaneously with the assignment described in
paragraph 1 above, each Assignee shall be admitted to the Company as the managing member and member, as applicable. 
 

  

	 	3.
	 
	Withdrawal.    Immediately following the admission of each Assignee to the Company in respect of its Interest, each Assignor hereby
withdraws from the Company as a managing member and/or member, as a applicable. 
 

  

	 	4.
	 
	Continuation of the Company.    The parties hereto agree that the assignment of the Interests, the admission of each Assignee to the
Company and the withdrawal of each Assignor from the Company shall not dissolve the Company, and that the business of the Company shall continue. 
 

  

	 	5.
	 
	Binding Effect.    This Assignment shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective
permitted successors and assigns. 
 

  

	 	6.
	 
	Execution in Counterparts.    This Assignment may be executed in counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same instrument. 
 

  

	 	7.
	 
	Governing Law.    This Assignment shall be governed by, and interpreted in accordance with, the laws of the Commonwealth of
Massachusetts. 
 

  

	 	8.
	 
	Estoppel and Release.    Each of Urban Shopping Centers, L.P. and each Assignor hereby agrees with each other as follows: (a) there
are no pending claims against the other under the LLC Agreement, (b) to its knowledge, there are no defaults by the other under the LLC Agreement and (c) each member of the Company is hereby released by the other from any and all claims and
liabilities except for those matters which, by the express terms of the LLC Agreement, survive a transfer of an interest in the Company by a member. 
 

  

	 	9.
	 
	Reciprocal Indemnity.    (a) Assignor agrees to indemnify, hold harmless and defend Assignee from and against any loss, liabilities,
costs or expenses suffered or incurred by Assignee or any of its Affiliates in respect of that certain Guaranty Agreement, dated as of July 30, 1997 (the “Recourse Carve-Out Guaranty”), entered into by Overseas Partners Capital
Corp. in favor of Metropolitan Life Insurance Company with respect to the loan secured by a mortgage on the Property, in each case, only to the extent the same (a) resulted from any act or 
 

 

 2 

	 	
omission of Assignor or its Affiliates and (b) arose or accrued prior to the Closing Date. 
 

  
 (b) Assignee agrees to indemnify, hold harmless and defend Assignor from and against any loss, liabilities, costs or expenses suffered or incurred by Assignor or any of
its Affiliates in respect of the Recourse Carve-Out Guaranty, in each case, only to the extent the same arises and accrues from and after the Closing Date. 
  

	 	10.
	 
	Counterparts.    This Assignment may be executed in any number of counterparts, each of which so executed shall be deemed original;
such counterparts shall together constitute but one assignment. Faxed signature pages shall have the same legal effect as an original signature page. 
 

  
 [The remainder of this page is intentionally left blank.] 
 

 3 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be duly
executed as of the day and year first above written. 
  
 ASSIGNOR: 
  
 
	 OVERSEAS CAPITAL CO.
 
	 
	 By:
 	 	 /s/    MARK R. BRIDGES        
 

	  	 	 Name:    Mark R. Bridges
 
	  	 	 Title:    Director
 

 
  
 
	 
	 By:
 	 	 /s/    DAVID C. GORST        
 

	  	 	 Name:    David C. Gorst
 
	  	 	 Title:    Vice-President, Real Estate
 

 
  
  
 
	 COPLEY PLACE CORP., INC. 
 
	 
	 By:
 	 	 /s/    MARK R. BRIDGES        
 

	  	 	 Name:    Mark R. Bridges
 
	  	 	 Title:    Director
 

 
  
 
	 
	 By:
 	 	 /s/    DAVID C. GORST        
 

	  	 	 Name:    David C. Gorst
 
	  	 	 Title:    Vice-President, Real Estate
 

 
  
 ASSIGNEE: 
  
 
	 SPG COPLEY ASSOCIATES, LLC
 
	 
	 By:
 

 	 	 Simon Property Group, L.P., its sole
member
  
 
	 By:
 	 	 Simon Property Group, Inc., its general
 partner
 

 
  
 
	 
	 By:
 	 	 /s/    RICHARD S. SOKOLOV        
 

	  	 	 Name:    Richard S. Sokolov
 
	  	 	 Title:    President
 

 
  
 
	 SIMON COPLEY PLACE, INC.
 
	 
	 By:
 	 	 /s/    Richard S. Sokolov         
 

	  	 	 Name:    Richard S. Sokolov
 
	  	 	 Title:    President
 

 
 

 4 

  
 Urban Shopping Centers, L.P., as a member of the Company, hereby executes this
Assignment for the purpose of (i) consenting to the transaction set forth herein, the admission of Assignee to the Company, and the withdrawal of each Assignor from the Company, and (ii) agreeing to the provisions of Paragraph 8 hereof.

  
 
	 URBAN SHOPPING CENTERS, L.P. 
 
	 
	 By:
 	 	 Urban Shopping Centers, Inc., its
general partner
 

 
  
 
	 
	 By:
 	 	 /s/    RICHARD S. SOKOLOV        
 

	  	 	 Name:    Richard S. Sokolov
 
	  	 	 Title:    President
 

 
 

 5 

 EXHIBIT B 
  
 Assignment And Assumption Of Management Agreements 

  
 ASSIGNMENT AND ASSUMPTION OF MANAGEMENT AGREEMENTS 
  
 1.    For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Overseas
Management, Inc. (“Assignor”) hereby irrevocably assigns, transfers and sets over to Simon Management Associates, LLC, a Delaware limited liability Company (“Assignee”) all of Assignor’s right, title and
interest in and to: 
  

	 	(i)
	 
	(a) that certain Management Agreement dated January 23, 1997 between Copley Place Associates, LLC and Assignor, (b) that certain First Amendment to Management
Agreement dated May 1, 1998, (c) that certain Letter Agreement dated November 28, 2001 among Assignor, Copley Place Associates, LLC, Copley Place Corp., Inc., Urban Retail Properties Co. and Overseas Partners Capital Corp. (the “Letter
Agreement”) and (d) any and all other modifications, amendments, extensions or supplements thereto ((a) through (d) collectively, the “Management Agreement”); 
 

  

	 	(ii)
	 
	(a) that certain Agreement for Purchase of Consulting and Other Services dated January 23, 1997 between Assignor and Urban Retail Properties Co., (b) the Letter
Agreement and (c) any and all modifications, amendments, extensions or supplements thereto ((a) through (c) collectively, the “Consulting Agreement”); 
 

  

	 	(iii)
	 
	(a) that certain Parking Management Agreement dated May 1, 1998 between Standard Parking Corporation and Assignor and (b) any and all modifications, amendments,
extensions or supplements thereto ((a) and (b) collectively, the “Parking Management Agreement”); and 
 

  

	 	(iv)
	 
	(a) that certain Agreement for Purchase of Consulting and Other Services with respect to the Parking Management Agreement dated May 1, 1998 between Assignor and
Urban Retail Properties Co. and (b) any and all modifications, amendments, extensions or supplements thereto ((a) and (b) collectively, the “Parking Consulting Agreement”, the Management Agreement, Consulting Agreement, Parking
Management Agreement and Parking Consulting Agreement collectively, the “Agreements”).  
 

  
 2.    Assignee hereby assumes all of Assignor’s obligations in connection with the Agreements arising or first becoming due and payable after the date hereof and hereby being assigned by Assignor.

  
 3.    Assignor hereby represents and warrants only that it has not previously transferred or
encumbered any of the Agreements assigned hereby or any of the rights thereunder. Assignor makes no other representation or warranty in connection with this Assignment except as set forth in the Agreement dated as of July 19, 2002 by and among
Overseas Capital Co. and Copley Place Corp., Inc., as seller, and SPG Copley Associates, LLC and Simon Copley Place, Inc. (by assignment from Simon Property Group, L.P.), as buyer, and, except for the foregoing, this Assignment is made without
recourse to Assignor. 
  
 4.    Each of Copley Place Associates, LLC, Urban Retail Properties Co.
and Assignor hereby agrees with each other as follows: (i) there are no pending claims against the 

 
other with respect to the Agreements to which it is a party or by which it is bound, (ii) to its knowledge, there are no defaults by the other under the Agreements to which it is a party or by
which it is bound and (iii) each is hereby released by the other from any and all claims and liabilities except for (a) the adjustment of fees with respect to the foregoing Agreements to which it is a party or by which it is bound and (b) those
matters which, by the express terms of the Agreement to which it is a party or by which it is bound, survive an assignment thereof. 
  
 5.    All terms of this Assignment shall be binding upon, inure to the benefit of and be enforceable by the parties hereto and their respective legal representatives, successors and assigns. 

 
 6.    No modification, waiver, amendment, discharge or change of this Assignment shall be valid unless the
same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. 
  
 7.    This Assignment shall be construed and enforced in accordance with the laws of the Commonwealth of Massachusetts. 
  
 8.    This Assignment may be executed in any number of counterparts, each of which so executed shall be deemed original; such counterparts shall
together constitute but one assignment. Faxed signature pages shall have the same legal effect as an original signature page. 
  
 [The remainder of this page is intentionally left blank.] 
 

 2 

  
 IN WITNESS WHEREOF, Assignor and Assignee have each executed this Assignment as
of this 19th day of July, 2002. 
  
 ASSIGNOR: 
  

	 OVERSEAS MANAGEMENT, INC.
 
	 
	 By:
 	 	 /s/    MARK R. BRIDGES        
 

	  	 	 Name:  Mark R. Bridges
 Title:  Director
 

 
 
	 
	 By:
 	 	 /s/    DAVID C. GORST        
 

	  	 	 Name:  David C. Gorst
 Title:  Vice-President, Real
Estate
 

 
  
 ASSIGNEE: 
  
 
	 SIMON MANAGEMENT ASSOCIATES, LLC
 
	 
	 By:
 	 	 /s/    RICHARD S. SOKOLOV        
 

	  	 	 Name:  Richard S. Sokolov
 Title:  President
 

 
  
 Copley Place Associates, LLC and Urban Retail Properties Co. each
hereby executes this Assignment for the purpose of agreeing to the provisions of Paragraph 4 hereof. 
  
 
	 COPLEY PLACE ASSOCIATES, LLC
  
 By:    Overseas Capital Co.
 
	 
	 By:
 	 	 /s/    MARK R. BRIDGES        
 

	  	 	 Name:  Mark R. Bridges
 Title:  Director
 

 
 
	 
	 By:
 	 	 /s/    DAVID C. GORST        
 

	  	 	 Name:  David C. Gorst
 Title:  Vice-President, Real
Estate
 

 
  
 
	 URBAN RETAIL PROPERTIES CO.
 
	 
	 By:
 	 	 /s/    RICHARD S. SOKOLOV        
 

	  	 	 Name:  Richard S. Sokolov
 Title:  Authorized
Signatory
 

 
 

 3 

  
 EXHIBIT C 
  
 Prorations Statement 

  
 EXHIBIT D 
  
 LLC Defaults 
  
 As set forth in the
letter dated January 30, 2002 from Overseas Capital Co. to Urban Retail Properties Co. requesting certification of the Number of Adjusted Shares owned by the JMB Group and evidence of such ownership. 
  
 As set forth in the letter dated April 25, 2002 from Overseas Management, Inc. to Urban Retail Properties Co. regarding the termination of
Urban Retail Properties Co. pursuant to Section 2.2.4 of the Agreement for Purchase of Consulting and Other Services dated 1/23/97. 
  
 As set forth in that certain action filed in the Superior Court of the Commonwealth of Massachusetts on July 2, 2002.

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