Document:

Exhibit 10.5

 

CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE

 

THIS AGREEMENT is made and entered into effective as of May ____, 2005 by and between Banks Enterprises, Inc., an Indiana corporation (“Seller”) and Lippert Components Manufacturing, Inc., or its designee or assign (“Purchaser”) and the obligations and liabilities of Seller under this Agreement are unconditionally guaranteed by Banks Corporation (“Guarantor”).  The parties hereto agree as follows:

1.        The Property.  Seller hereby agrees to sell and Purchaser hereby agrees to purchase, upon the terms and conditions herein set forth the tract of land, improvements thereon, easements used in connection therewith, property under streets and sidewalks owned by Seller, all personal property designated by Purchaser, and appurtenances thereunto belonging, located in Elkhart County, State of Indiana, having the following address:  2009 Middlebury Street, Elkhart, Indiana, consisting of approximately 2.273 acres and more particularly described in Exhibit “A” attached hereto and made a part hereof (the “Elkhart Property”) and the tract of land, improvements thereon, easements used in connection therewith, property under streets and sidewalks owned by Seller, all personal property designated by
Purchaser, and appurtenances thereunto belonging, located in LaGrange County, State of Indiana, having the following address:  3625 N. State Road 9, Howe, Indiana, consisting of approximately 33.172 acres and more particularly described in Exhibit “B” attached hereto and made a part hereof (the “LaGrange Property” the Elkhart Property and the LaGrange Property are collectively referred to as the “Property”).  The Property shall also include any information pertaining primarily to the Property, whether such information is in the form of existing plans, specifications, operating manuals, warranties, permits or any other form, and all lighting fixtures, and all other property attached to the building.

2.        Purchase Price.  Purchaser hereby agrees to pay for the Property the sum of Two Million Fifty Thousand and No/100 Dollars ($2,050,000.00) (which shall be allocated as follows: $450,000.00 to the Elkhart Property and $1,600,000.00 to the La Grange Property) by wire transfer or cashiers check at closing as Seller may elect.  The purchase price, net prorations to Purchaser and any other net credits to Purchaser shall be paid in cash at the Closing.

3.        Date of Closing.  The Closing of this purchase shall take place simultaneously with the closing of the transactions provided for under that certain Asset Purchase Agreement (the “Asset Agreement”) between Guarantor and Purchaser dated May ____, 2005, or at such other time and place as the parties mutually agree.

4.        Obligations of Parties at Closing.  At the Closing, the parties shall satisfy and perform the following:

	
            a.
 	
            Seller shall:
 

i.                Deliver general Warranty Deed and Bills of Sale conveying marketable title to each parcel to Purchaser, free and clear of all tenancies, liens and encumbrances, except Permitted Exceptions.

 

 

 

ii.               Deliver to Purchaser possession of the Property, free and clear of all leases, tenancies, and occupancies and any property of Seller not purchased hereunder in substantially the same condition as when it was inspected by Purchaser.

iii.                Deliver to Purchaser such affidavits or other documents customary for the transfer of property in Indiana, and reasonably necessary for the issuance of Title Insurance.

b.    Purchaser shall make payment to Seller for the Purchase price of the Property according to the terms set forth at paragraph 2.

5.              General Conditions to Closing.  The transactions provided for in this Agreement are conditioned on and subject to the closing of the Asset Agreement.  If the Asset Agreement is terminated, this Contract shall terminate and  neither party shall have any liability to the other except for breaches of this Agreement.

	
            6.
 	
            Risk of Loss.  Risk of loss shall remain on Seller prior to Closing.
 

7.              Conditions Precedent to Purchaser’s Obligations.  The Purchaser’s obligations under this Contract are subject to the following contingencies, which contingencies if not satisfied shall constitute grounds for Purchaser to terminate this Contract:

a.    The commitment for issuance of a policy of title insurance meeting the requirements of paragraph 8 and the survey which complies with paragraph 9 must be provided to Purchaser.

b.    Seller shall not be in default under any of the terms and conditions contained in this Contract.

8.              Title Insurance Policy.  Purchaser shall obtain as soon as reasonably practicable after this Contract is effective, commitments for issuance of policies of title insurance written on an ALTA form B agreeing to insure marketable title in the real estate portion of the Property in Purchaser or its assigns in the amount of the purchase price (as allocated between the Elkhart Property and the LaGrange Property in Paragraph 2 above) subject only to covenants, easements and restrictions and other title conditions of record, or approved by Purchaser (“Permitted Exceptions”), and real estate taxes not due and payable with all standard exceptions waived and with such extended coverage as may be reasonably requested by Purchaser.  All
title insurance company premiums and charges shall be paid by Seller, except that the Purchaser shall pay the cost of any extended coverage or endorsements other than the removal of the standard exceptions.  In the event the commitment contains exceptions other than the Permitted Exceptions, Purchaser shall so inform the Seller in writing and Seller shall have until the Closing or such longer period as Purchaser may agree, to remove those exceptions to Purchaser’s satisfaction, obtain Purchaser’s consent to them.  Seller agrees to use its reasonable best efforts to remove such exceptions, including if necessary incurring expenses up to $100,000 to cause the removal of such exceptions.  In the event such exception(s) are not eliminated to Purchaser’s satisfaction or Purchaser’s written consent to them obtained within that period, then this Contract may, at the option of either party, be canceled  provided however, if  Seller 

 

2

 

 

cancels this Contract, the Seller shall reimburse Purchaser on demand for Purchaser’s costs directly relating to this Contract.

9.              Survey.  Seller shall deliver to Purchaser, at the expense of Seller, as soon as reasonably practicable after the execution of this Contract by both parties, and a reasonable time before the Closing, surveys of the real estate portion of the Property, including but not limited to all easements, utility locations, streets, buildings and improvements, parking lots, prepared by a registered land surveyor licensed in the State of Indiana, accompanied by a Minimum Standard Detail Certificate, which survey must meet the requirements of that Certificate and show no encroachments, overlaps or other problems with the boundaries of the Property.  The Surveyor shall certify the survey to the title insurance company, to Purchaser, Purchaser’s Assignee
and Purchaser’s lender and further certify that the Property is not located within a flood plain according to the municipal flood plain ordinance or the federal flood plain maps.

10.           Zoning.  Seller represents that the Elkhart property is zoned M-1 Limited Manufacturing District, and that the LaGrange Property is zoned B3 Business Interchange, and that there are no petitions pending or proposed to change or revoke either of such zonings.  Seller further represents that all of the operations in the Elkhart Property and the LaGrange Property currently meet all of the requirements of the applicable zoning ordinances and are appropriate for the zoning classifications.  

11.           Prorations at Closing.  Real property taxes shall not be prorated.  The Purchaser shall assume the real property taxes for the Property and agree to pay them.

12.           Environmental Representations and Warranties.  Purchaser has obtained a Phase I Real Estate Environmental Assessment of the Elkhart Property (prepared by Roberts Environmental Services, LLC) and a Phase I Environmental Site Assessment of the LaGrange Property (prepared by Roberts Environmental Services, LLC), collectively the “Environmental Reports.”  The Seller represents and warrants that, except as set forth in the Environmental Reports and/or Section 5.17 of Seller's Disclosure Schedule to the Asset Agreement:

a.    There is no contamination or other presence of Hazardous Substances  which originated upon the Property during Seller's ownership thereof.

b.    The Property, as owned and operated by the Seller, its employees, servants and agents, are in material compliance with all present Environmental Laws.  Further, except as disclosed in the Environmental Reports, the Seller has not received written Notice of non-compliance with any Environmental Laws.

c.    The Property has not been used as a treatment, storage, or disposal facility as these terms are defined in The Federal Resource Conservation and Recovery Act, 42. U.S.C § 6901 et seq during Seller's ownership thereof.

d.    Neither the Seller nor its employees, servants or agents have ever failed to report the occurrence of any release of a Hazardous Substance on the Property where, under any applicable Environmental Law, they are or were required to do so.

 

3

 

 

e.    Neither the Seller nor its employees, servants, or agents have caused or permitted, or have knowledge of the release or, other than normal environmental risks incurred in the normal course of business operations,  threat of release of any Hazardous Substances on or from the Property. To the Seller’s knowledge after due and diligent inquiry, all wastes and other materials and substances  utilized on the Property whether hazardous or non-hazardous, have been disposed of, treated and stored in compliance with all Environmental Laws.

f.    Neither the Seller nor its employees, servants or agents have received any notice, written or otherwise, that the Seller, its employees, servants and agents or their respective predecessors are potentially responsible parties for a federal, state, municipal or local clean-up or corrective action under any environmental law relating to the Property, nor do they know of any pending or threatened investigation  of the Property by the Indiana Department of Environmental Management or the United States Environmental Management or the United States Environmental Protection Agency.

g.    
There are no underground storage tanks on the Property.

	
            13.
 	
            Environmental Indemnification.
 	
             

					

a.  The Seller hereby agrees to indemnify, save, defend, and hold harmless the Purchaser, its directors, officers, shareholders, employees, agents, successors (including, without limitation, its successors in title to the Property) and its secured lenders, from and against, and to reimburse Purchaser, for any and all losses, claims, demands, judgments, liabilities, damages, injunctive relief, injuries to persons, property, or natural resources, costs, expenses (including without limitation, consultant’s fees and expenses, reasonable attorney’s fees and expenses, the fees and expenses of experts), actions or causes of action, or liabilities directly or indirectly arising from or relating to the breach of any of the representations, warranties and covenants contained in paragraph 12 above.

b. The obligations of Seller under this indemnity shall survive the closing on the purchase of the Property and the transfer of title to the Property to the Purchaser and shall be deemed to be a covenant running with the land.

c. Upon obtaining knowledge thereof, Purchaser shall, within thirty (30) days after obtaining such knowledge, notify the Seller, in writing, of any damage, loss or expense for which it expects to be reimbursed under this Agreement, such written notice is hereafter referred to as “Notice of Claim” provided, however, if such damage, loss or expense relates to either litigation or claims by third parties, Purchaser shall give the Seller a Notice of Claim with respect to the litigation or third party claim within five (5) business days of the receipt by Purchaser of any summons, complaint, petition or other legal pleading or within ten (10) business days of its becoming aware of the third party claim.  A Notice of Claim shall specify in reasonable detail the nature and estimated amount of any such Claim giving rise to the right of indemnification.  The Notice
of Claim shall be sent by certified mail, return receipt requested, or receipted overnight delivery service, or personally delivered to the Seller at its principal place of business, or such other location as Seller may from time to time identify in writing.  With respect to 

 

4

 

 

any action, claim or demand set forth in a Notice of Claim relating to litigation or a third party claim, the Seller shall investigate and defend its own interests and Purchaser’s interests in good faith and at its expense, subject to the Seller’s right to contest the validity or applicability of the Notice of Claim.  If the validity of Purchaser’s Notice of Claim is disputed and a determination as to its validity is made by a Court of competent jurisdiction, a mutually acceptable arbitrator, or by the parties, the prevailing party shall be reimbursed by the other party for all reasonable costs and expenses incurred with respect to the validity dispute.  In conducting such investigations and defending any claim, Seller shall employ counsel and consultants reasonably acceptable to Purchaser.  Purchaser shall have the right to participate in the investigation and defense of
any such litigation or third party claim through counsel chosen by Purchaser provided that the fees and expenses of such counsel shall be borne by Purchaser.  As long as the Seller is defending in good faith any such third party claim, as set forth above, Purchaser shall not settle or compromise such third party claim and Seller shall have the right, at its sole cost, to settle or compromise such third party claim with the prior written consent of Purchaser which will not be unreasonably withheld but which shall be conditioned upon obtaining a general release of Purchaser from such third party claim.  Seller and Purchaser shall make available to each other, or their representatives, all records and other materials reasonably required by them for their use in contesting any third party claim and shall cooperate fully with each other in the defense of all such claims.

If the Seller does not elect to defend any litigation or third party claim, Purchaser shall have no obligation to do so; provided, however, if Purchaser does elect to defend such litigation or third party claim, after the Seller fails to elect to defend such third party claim or litigation, it shall be allowed to name the Seller as a third party defendant, enter into settlements, and shall be entitled to additionally recover all of its reasonable attorney’s fees, costs and expenses, including but not limited to consultants and experts fees, in connection with the defense of such claim or litigation to the extent provided in paragraph 13.a. above.

Notwithstanding anything contained herein to the contrary, the Seller’s obligations under this indemnity shall be subject to,  limited by the provisions of Section 9.5 of the Asset Agreement, and included in any limitations described therein.

14.           Environmental Definitions: Recording Disclosure Statement.  For the purposes of this Agreement:

a.    “Hazardous Substance” means any hazardous or toxic substance, material or waste as these terms are defined in the Environmental Laws.

b.    “Environmental Laws” shall mean all applicable federal, state and local environmental, health or safety laws, regulations and rules affecting real estate, including but not limited to, the Comprehensive Environmental Response Compensation and Liability Act (“CERCLA”), the Superfund Amendments and Reauthorization Act, the Resource Conservation Recovery Act, the Federal Water Pollution Control Act, the Federal Insecticide, Fungicide and Rodenticide Act, the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, 

 

5

 

 

any so-called federal, state or local “Superfund” or “Superlien” statutes or any other statutes, laws, ordinances, codes, rules, regulations, orders, or decrees regulating, relating to, or imposing liability (including strict liability) or standards of conduct regarding any hazardous substances and/or the Property.

c.    If required by the Indiana Responsible Property Transfer Law, a final Environmental Disclosure Document will be executed and delivered by the Seller and Purchaser at closing, and the parties will cause a duly signed copy to be recorded with the County Recorder of Elkhart County.  Purchaser waives the thirty-day period between delivery of the Environmental Disclosure Document and closing.

15.           Condemnation or Destruction.  If prior to the Closing of this transaction, all or any substantial part of the Property is condemned, damaged or destroyed, Purchaser shall have the option of either accepting an assignment of the proceeds of any condemnation award or insurance policies to reduce the total purchase price payable by Purchaser herein or terminating this Contract by delivering written notice of termination pursuant to this Section to Seller before the Closing.

16.           No Government Notices.  Seller warrants that Seller has not received, or is aware of, any notification from any City, County, State or other governmental authority requiring any work to be done on or affecting the Property or expressing an intent to condemn or make special improvements for the benefit of the Property.  Seller further warrants that in the event any such notice is received prior to Closing, Seller shall submit such notice to Purchaser for examination and approval.  Should Purchaser fail to consent in writing to the action proposed by any such notice, this Contract may at Purchaser’s option be canceled by Purchaser’s written notice to Seller.

17.           Assignment.  With Seller’s prior written consent, which consent shall not be unreasonably withheld, Purchaser shall have the right to assign this Contract and all rights hereunder, provided the assignee shall assume in writing all the obligations of Purchaser hereunder and Purchaser shall believe in good faith that the assignee has the ability to perform such obligations.

18.           Additional Remedies.  In the event of breach of this Contract by Seller, provided that Purchaser is not also in material breach, Purchaser shall have the right for specific performance and such additional remedies as otherwise are allowed by law or equity.  The non-breaching party shall, in addition to the above remedies, be entitled to recover from the breaching party its attorney fees, expenses and costs arising from such breach and incurred in enforcing this Agreement.

	
            19.
 	
                    Miscellaneous.
 	
             

a.     Time is of the essence of this Contract.

b.    If any term or condition of this contract be invalid or unenforceable, the remainder of the Contract shall not be affected thereby.

c.    This Contract constitutes the entire agreement of the parties hereto and, unless specified otherwise herein, no representation, inducement, promises or prior agreements, oral or written, between the parties or made by any agent on behalf of the parties or otherwise shall be of any force or effect.

 

6

 

 

d.    This Contract shall be construed and interpreted under the laws of the State of Indiana.

e.    Purchaser and Seller shall at the time of Closing execute such other papers and documents as may be legally necessary in order to close this transaction.  Purchaser may waive in writing any condition imposed on Seller in this Contract without waiving any other condition or terminating this Contract.

f.     The provisions of this Contract shall not merge into the documentation from this transaction and shall survive the Closing of this transaction and the execution and delivery of the deed pursuant hereto.

g.    Any notice hereunder must be in writing, and shall be deemed to have been given when deposited in the United States Mail, postage prepaid, certified, return receipt requested, or receipted overnight delivery service, addressed to the parties at the following addresses and shall be deemed to have been received on the earliest of the date of actual receipt or the third business day after being given if by certified mail or the first business day after being given if by overnight delivery service:

	
            If to Purchaser, to:

 

Lippert Components Manufacturing, Inc.

c/o Drew Industries, Inc.

200 Mamaroneck Avenue

White Plains, New York 10601

Attention:             Harvey F. Milman

Chief Legal Officer
 	
            With copy to:

 

Barnes & Thornburg, LLP

Suite 200

121 West Franklin Street

Elkhart, Indiana 46516

Attention:          J. Scott Troeger
 
	
            If to Seller, to: 

 

Banks Enterprises, Inc.

426 N. Main Street

Elkhart, IN 46516

Attn: William P. Banks

Phone: (574)
389-5402

Fax: (574) 389-5403
 	
            With copy to:

 

Lane & Waterman LLP

220 N. Main. St., Ste. 600

Davenport, IA 52801

Phone: (563) 333-6608

Fax: (563)
324-1616

Attn: C.D. Waterman III, Esq.
 
	
            If to Guarantor, to:

 

Banks Corporation

426 N. Main Street

Elkhart, IN 46516

Attn: William P. Banks

Phone: (574)
389-5402

Fax: (574) 389-5403
 	
            With copy to:

 

Lane & Waterman LLP

220 N. Main St., Ste 600

Davenport, IA 52801

Phone: (563) 333-6608

Fax: (563)
324-3246

Attn: C.D. Waterman III, Esq.
 

h.    The provisions hereof shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives and assigns.  Each party shall 

 

7

 

 

designate a project coordinator through whom communications shall be made regarding this transaction within seven (7) days of this Contract being signed.

i.     Any addendum attached hereto and signed by the parties shall be deemed a part hereof and shall supersede any conflicting terms or conditions contained in this Contract.

j.     Seller agrees not to sell or agree to sell or transfer any portion of the Property as it exists on the date Purchaser presents this Contract to Seller without Purchaser’s consent, including but not limited to any personal property located on or useful to the Property.

20.           Existing Information.  Seller will turn over all existing plans, specifications, demolition bids, rehabilitation bids and any other data which will assist Purchaser in its review of the Property as soon as practicable of the execution of this Contract, but in any event a reasonable period before the date of Closing.

21.           Multiple Counterparts.  This Contract is executed in multiple counterparts, each of which shall be considered an original with counterparts signed by one party when combined with counterparts signed by other parties to this Agreement constituting an original contract.

22.           Guaranty.  As an inducement to Purchaser’s execution of this Contract, Guarantor will execute and deliver to Purchaser, simultaneously with the execution and delivery of this Contract, the Guaranty in the form attached as Exhibit C.

23.           Representations.  All representations contained in this Agreement are made as of the date of this Agreement and as of the date of Closing.

IN WITNESS WHEREOF, the undersigned executed and delivered this Contract For Sale of Real Estate on the date set forth opposite the name of each.

“PURCHASER”

Lippert Components Manufacturing, Inc.

 

	
            By:
 

 

	
            (Printed Name and Title)
 

 

 

 

“SELLER”

Banks Enterprises, Incorporated

 

	
            By:
 

 

	
            (Printed Name and Title)
 

 

 

 

8

 

 

“GUARANTOR”

Banks Corporation

 

	
            By:
 

 

	
            (Printed Name and Title)
 

 

 

9

 

Exhibit 10.5

 

 

EXHIBIT “A”

ELKHART PROPERTY

A PART OF THE EAST 29 ACRES OF THE NORTHWEST QUARTER (NW1⁄4) OF THE NORTHEAST QUARTER  (NE1⁄4) OF SECTION TEN (10, TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE FIVE (5) EAST, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

COMMENCING AT THE NORTHEAST CORNER OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION; THENCE SOUTH ZERO (0) DEGREES FOUR (4) MINUTES WEST, ALONG THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION, FIFTY (50) FEET FOR THE BEGINNING POINT OF THIS DESCRIPTION; THENCE DUE WEST PARALLEL WITH THE NORTH LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION, THREE HUNDRED THIRTY (330) FEET; THENCE SOUTH ZERO (0) DEGREES FOUR (4) MINUTES WEST, THREE HUNDRED (300) FEET; THENCE  DUE EAST, THREE HUNDRED THIRTY (330) FEET; THENCE NORTH ZERO (0) DEGREES FOUR (4) MINUTES EAST, ALONG THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION, THREE HUNDRED (300) FEET TO THE PLACE OF BEGINNING.

 

 

Exhibit 10.5

 

 

EXHIBIT “B”

LA GRANGE PROPERTY

A TRACT OF LAND LOCATED IN LA GRANGE COUNTY, INDIANA AND MORE PARTICULARLY DESCRIBED AS FOLLOWS: 

 

THE SOUTH HALF (1/2) OF THE SOUTH HALF (1/2) OF THE FRACTIONAL NORTHWEST QUARTER (1/4) OF SECTION SIX (6), TOWNSHIP THIRTY-SEVEN (37) NORTH, RANGE TEN (10) EAST, EXCEPT FIFTY (50) FEET OFF THE EAST END OF THE ABOVE TRACT CONVEYED TO THE GRAND RAPIDS AND INDIANA RAILROAD COMPANY.  

 

 

Exhibit 10.5

 

 

EXHIBIT “C”

GUARANTY

 

THIS GUARANTY is made and entered into by and between Banks Corporation (“Guarantor”), and Lippert Components Manufacturing, Inc. (“Purchaser”).

RECITALS

Guarantor [owns all the outstanding capital stock of] [is under common ownership and control with] Banks Enterprises, Incorporated (“Seller”).  Seller desires to sell to Purchaser certain real property located in Elkhart, Indiana and certain real property located in LaGrange County, Indiana (together the “Property”).  Purchaser is unwilling to purchase the Property from Seller unless Guarantor unconditionally guarantees the performance, payment and satisfaction of all obligations, liabilities, representations, warranties, indemnities and agreements of Seller under the Agreement (as defined in Section 1 below) concerning the Property, including those matters pertaining to environmental matters, obligations and liabilities.  Guarantor expects to benefit if Purchaser purchases the Property from Seller, and Guarantor is accordingly willing to enter into this guaranty
of all obligations of Seller to Purchaser, to induce Purchaser to enter into the Agreement (defined below) to purchase the real estate from Seller.

AGREEMENT

NOW, THEREFORE, in consideration of the execution by Purchaser of the Agreement to purchase the real estate by Purchaser from Seller, the parties agree as follows:

1.              Guarantor absolutely and unconditionally guarantees to the Purchaser the full payment, performance and satisfaction when due of any and all indebtedness, liabilities, undertakings, promises, representations, agreements, covenants, warranties and indemnifications of every kind, character and description (the “Obligations”) of or made by Seller to the Purchaser under the Contract for Purchase and Sale of Real Estate between Purchaser and Seller dated May ___, 2005 (the “Agreement”), plus all indebtedness and obligations of Seller to the Purchaser for costs of collection and reasonable attorney’s fees reasonably incurred in enforcing Purchaser’s rights under the Agreement or this Guaranty, all without relief from
valuation and appraisement laws.  The Purchaser shall not be liable to the Guarantor for any loss Guarantor may sustain which results from the failure of the Purchaser to require Seller to pay, perform or satisfy the Obligations when due or at any time thereafter.

2.              The obligation imposed upon the Guarantor by execution of this Guaranty shall be exactly the same as if the Obligations of Seller to the Purchaser had been the obligation of the Guarantor to the Purchaser, and the Purchaser may resort to the Guarantor for full payment, performance and satisfaction of the Obligations, without resorting to Seller or any other party, or any security or other rights.

 

 

 

 

3.              This Guaranty shall be a continuing guarantee to insure the payment, performance and satisfaction of all the Obligations of Seller in favor of the Purchaser under the Agreement and shall not terminate until all Obligations have been paid, performed and satisfied in full, plus interest, costs of collection, expenses and reasonable attorney’s fees reasonably incurred in enforcing or collecting those Obligations and in enforcing this Guaranty, provided, however, that Guarantor agrees that, to the extent that the Seller makes a payment or payments to the Purchaser, or Purchaser receives any proceeds of collateral, which payment or payments or any part are subsequently invalidated, declared to be fraudulent or preferential, set aside or
otherwise is required to be repaid to Seller, its estate, trustee, receiver or any other party, including, without limitation, under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such payment or repayment actually made to Seller, or its estate, trustee, receiver or any other party, the obligation or part which has been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date such initial payment, reduction or satisfaction occurred.  The Guarantor shall defend and indemnify the Purchaser from any claim or loss under this paragraph including Purchaser’s attorneys’ and paralegals’ fees and expenses in the defense of any such action or suit.

4.              The Purchaser shall give Guarantor written notice at the last address of Guarantor provided by Guarantor or Seller to Purchaser of any default by Seller with respect to the Obligations. This written notice shall not be a condition precedent to the enforcement of this Guaranty.

5.              The Purchaser may, without notice whatsoever to Guarantor or Seller, sell, mortgage, assign or transfer all or any part of the Agreement or the Property which is the subject of the Agreement, and any part or all of this Guaranty and in such event, each and every immediate or successive assignee, mortgagee, transferee or holder of all or any part of the Agreement or the Property which is subject to this Agreement, or this Guaranty shall have the right to enforce this Guaranty (to the extent so sold, mortgaged, assigned or transferred) by suit or otherwise for the benefit of such assignee, mortgagee, transferee or holder, as if such assignee, mortgagee, transferee or holder were by name specifically given such rights, powers and benefits; but the
Purchaser shall continue to have the unimpaired and absolute right to enforce this Guaranty for its benefits as to so much of the Obligations owed it and obligations under this Guaranty that the Purchaser shall not have sold, mortgaged, assigned or transferred.

6.              Guarantor agrees that the Purchaser, by agreement with Seller or Guarantor, may make, alter or renew in any way the terms governing the Obligations, accept partial payment, performance or satisfaction of the Obligations, release security or other guarantors, substitute security or guaranties or take additional security from Seller or obtain other guaranties for the Obligations or otherwise deal in any manner whatsoever with Seller or any other guarantor of the Obligations or other obligation of Seller as the Purchaser sees fit without in any way diminishing or discharging in any way the liability or obligation of the Guarantor.

7.              The Guarantor waives any claim or other right which it might now have or hereafter acquire against the Seller or its successors or assigns that arises from the existence or performance of Guarantor’s obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, any right to participate in any claim or remedy of Purchaser against Seller or any collateral security which Purchaser now has or hereafter 

 

 

 

acquires; whether or not such claim, remedy or right arises in equity, or under contract, statute, or common law.

8.              No waiver by the Purchaser of any default on this Guaranty by the Guarantor shall be effective unless obtained in writing signed by the Purchaser and no effective waiver of a particular default shall operate as a waiver of any other default or the same default on a future occasion.

9.              This Guaranty shall be binding upon the Guarantor and Guarantor’s successors and assigns and shall inure to the benefit of the Purchaser and its successors or assigns.

10.           This Guaranty and all acts and transactions under it and all rights of the parties to it shall be governed as to validity, enforcement, interpretation and construction by the laws and court decisions of the State of Indiana.  Guarantor agrees that any appropriate state or federal court located in Elkhart or St. Joseph Counties, Indiana shall have jurisdiction over any litigation relating to this Guaranty and Guarantor irrevocably consents to the personal jurisdiction of such courts.  Guarantor and Purchaser each waive any rights it may otherwise have to a jury trial in litigation involving this Guaranty.

11.           This instrument is the final, complete and exclusive statement of the agreement between the Purchaser and the Guarantor with respect to Guarantor’s guaranty of the Obligations of Seller to the Purchaser under the Agreement and all prior negotiations, representations, promises and conditions concerning the same subject matter are merged into this instrument.  This Guaranty may not be modified or amended except by a writing signed by the Purchaser and the Guarantor.

12.           Purchaser hereby accepts the terms and conditions of this Guaranty and the Guarantor hereby waives any further notice of acceptance.

This Guaranty is executed as of May ___, 2005.

“GUARANTOR”

Banks Corporation

 

	
            By:
 

 

	
            (Printed Name and Title)
 

ATTEST:

 

                

(Printed Name and Title)

 

 

 

 

 

Accepted by:

 

“PURCHASER”

Lippert Components Manufacturing, Inc.

 

	
            By:
 

 

	
            (Printed Name and Title)Purchase and Sale Agreement

 Exhibit 10.1 
  
 PURCHASE AND SALE AGREEMENT 
  

BETWEEN 
  
 BUCKINGHAM FOUNTAIN HOTEL LLC 
  
 “SELLER” 
  
 AND 
  
 SHC COLUMBUS DRIVE, LLC 

 
 “PURCHASER” 
  
 DATED AS OF: JULY 13, 2005 
  
 PROPERTY: 
  
 THE FAIRMONT CHICAGO 
  
 CHICAGO, ILLINOIS 

 TABLE OF CONTENTS 
  

					
	 ARTICLE 1
	  	 THE PROPERTY; PURCHASE PRICE
	  	1
			
	 SECTION 1.01
	  	 The Property
	  	1
			
	 SECTION 1.02
	  	 Purchase Price
	  	3
			
	 ARTICLE 2
	  	 THE CLOSING
	  	4
			
	 SECTION 2.01
	  	 The Closing
	  	4
			
	 SECTION 2.02
	  	 Due Diligence
	  	4
			
	 ARTICLE 3
	  	 TITLE TO THE PROPERTY
	  	5
			
	 SECTION 3.01
	  	 Title to the Property
	  	5
			
	 ARTICLE 4
	  	 REPRESENTATIONS AND WARRANTIES
	  	7
			
	 SECTION 4.01
	  	 Seller’s Representations and Warranties
	  	7
			
	 SECTION 4.02
	  	 Purchaser’s Representations and Warranties
	  	8
			
	 SECTION 4.03
	  	 Certain Limitations on Seller’s Representations and Warranties
	  	9
			
	 SECTION 4.04
	  	 Survival of Representations and Warranties
	  	9
			
	 SECTION 4.05
	  	 No Other Representations or Warranties
	  	10
			
	 ARTICLE 5
	  	 COVENANTS OF SELLER; MUTUAL COVENANTS
	  	12
			
	 SECTION 5.01
	  	 Covenants of Seller
	  	12
			
	 ARTICLE 6
	  	 COVENANTS OF PURCHASER
	  	13
			
	 SECTION 6.01
	  	 Covenants of Purchaser
	  	13
			
	 SECTION 6.02
	  	 Survival
	  	14
			
	 ARTICLE 7
	  	 CLOSING CONDITIONS AND DELIVERIES
	  	14
			
	 SECTION 7.01
	  	 Conditions to Seller’s Obligations
	  	14
			
	 SECTION 7.02
	  	 Conditions to Purchaser’s Obligations
	  	14
			
	 SECTION 7.03
	  	 Seller’s Closing Documents
	  	15
			
	 SECTION 7.04
	  	 Purchaser’s Closing Documents
	  	16
			
	 SECTION 7.05
	  	 Conditions Generally
	  	16
			
	 ARTICLE 8
	  	 TAXES AND OTHER EXPENSES; EMPLOYEES
	  	17
			
	 SECTION 8.01
	  	 Transfer Taxes
	  	17
			
	 SECTION 8.02
	  	 Title, Escrow and Recording Fees
	  	17
			
	 SECTION 8.03
	  	 Sales Tax
	  	17
			
	 SECTION 8.04
	  	 Employees
	  	17
			
	 SECTION 8.05
	  	 Survival
	  	20

  

 i 

					
			
	 ARTICLE 9
	  	CLOSING PAYMENTS AND APPORTIONMENTS	  	21
			
	 SECTION 9.01
	  	 Payments and Apportionments
	  	21
			
	 SECTION 9.02
	  	 Hotel Records
	  	26
			
	 SECTION 9.03
	  	 Survival
	  	26
			
	 ARTICLE 10
	  	CONDEMNATION AND DESTRUCTION; INSURANCE	  	27
			
	 SECTION 10.01
	  	 Condemnation
	  	27
			
	 SECTION 10.02
	  	 Destruction
	  	27
			
	 SECTION 10.03
	  	 Insurance
	  	27
			
	 ARTICLE 11
	  	BROKER	  	28
			
	 SECTION 11.01
	  	 Broker
	  	28
			
	 ARTICLE 12
	  	REMEDIES	  	28
			
	 SECTION 12.01
	  	 Remedies
	  	28
			
	 ARTICLE 13
	  	NOTICES	  	29
			
	 SECTION 13.01
	  	 Notices
	  	29
			
	 ARTICLE 14
	  	MISCELLANEOUS PROVISIONS	  	30
			
	 SECTION 14.01
	  	 Acceptance of the Property
	  	30
			
	 SECTION 14.02
	  	 Press Releases
	  	30
			
	 SECTION 14.03
	  	 Assignment
	  	31
			
	 SECTION 14.04
	  	 Binding Effect
	  	31
			
	 SECTION 14.05
	  	 Partial Invalidity
	  	31
			
	 SECTION 14.06
	  	 Recordation of Agreement
	  	31
			
	 SECTION 14.07
	  	 Entire Agreement
	  	31
			
	 SECTION 14.08
	  	 Enforcement
	  	31
			
	 SECTION 14.09
	  	 Amendment
	  	32
			
	 SECTION 14.10
	  	 Governing Law
	  	32
			
	 SECTION 14.11
	  	 Exhibits
	  	32
			
	 SECTION 14.12
	  	 No Waiver
	  	32
			
	 SECTION 14.13
	  	 Headings; Article, Section and Exhibit References
	  	32
			
	 SECTION 14.14
	  	 No Other Parties
	  	32
			
	 SECTION 14.15
	  	 Counterparts
	  	32
			
	 SECTION 14.16
	  	 Waiver of Trial by Jury
	  	32
			
	 SECTION 14.17
	  	 Time
	  	33

  

 ii 

					
	 SECTION 14.18
	  	 Limitation on Liability
	  	33
			
	 SECTION 14.19
	  	 Confidentiality
	  	33
			
	 SECTION 14.20
	  	 Exchange Transaction
	  	33
			
	 ARTICLE 15
	  	INDEMNIFICATION	  	34
			
	 SECTION 15.01
	  	 Agreement to Indemnify
	  	34
			
	 SECTION 15.02
	  	 Indemnification Regarding Assumed Obligations
	  	34
			
	 SECTION 15.03
	  	 Notice and Cooperation on Indemnification
	  	34
			
	 SECTION 15.04
	  	 Survival of Indemnities
	  	34

  

 iii 

 EXHIBITS: 
  

			
	 EXHIBIT A
	  	Description of Land
	 EXHIBIT B
	  	Escrow Agreement
	 EXHIBIT C
	  	Service Contracts
	 EXHIBIT D
	  	Equipment Leases
	 EXHIBIT E
	  	Leases
	 EXHIBIT E-1
	  	Permits
	 EXHIBIT F
	  	Assignment of Leases
	 EXHIBIT G
	  	Assignment of Service Contracts, Equipment Leases, Permits and Intellectual Property
	 EXHIBIT H
	  	Documents
	 EXHIBIT I
	  	Bill of Sale
	 EXHIBIT J
	  	Disclosure Schedule
	 EXHIBIT K
	  	Plans and Union Contracts
	 EXHIBIT L
	  	Assignment of Management Agreement
	 EXHIBIT M
	  	Assignment of Easement Agreement
	 EXHIBIT M-1
	  	Notice of Assignment of Easement Agreement

  

 iv 

 INDEX OF DEFINED TERMS 
  

			
	 Access Agreement
	  	4
	 Acquired Accounts Receivable
	  	21
	 Agreement
	  	1
	 Agreements
	  	2
	 Assignment of Easement Agreement
	  	16
	 Assignment of Leases
	  	15
	 Assignment of Management Agreement
	  	16
	 Bulk Sales Taxes
	  	17
	 Business Day
	  	3
	 Cash Balance
	  	3
	 Closing
	  	4
	 Closing Date
	  	4
	 Closing Documents
	  	16
	 COBRA
	  	18
	 Contract Liabilities
	  	33
	 Cut-Off Time
	  	21
	 Deposit
	  	3
	 Documents
	  	4
	 Easement Agreement
	  	16
	 Employees
	  	17
	 Employer Entity
	  	17
	 Equipment Leases
	  	7
	 ERISA
	  	18
	 Escrow Agent
	  	3
	 Escrow Agreement
	  	3
	 Final Closing Statement
	  	24
	 General Assignment
	  	15
	 Hotel
	  	1
	 Hotel Records
	  	2
	 Improvements
	  	1
	 Intellectual Property
	  	2
	 JLLH
	  	28
	 Land
	  	1
	 Leases
	  	7
	 Management Agreement
	  	4
	 Manager
	  	4
	 Permits
	  	2
	 Permitted Exceptions
	  	5
	 Personal Property
	  	2
	 Plans
	  	18
	 Pre-Closing Disclosure
	  	9
	 Preliminary Closing Statement
	  	24

  

 v 

			
	 Prolific
	  	23
	 Property
	  	1
	 Purchase Price
	  	3
	 Purchaser
	  	1
	 Purchaser’s Accounts Receivable
	  	22
	 Purchaser’s Closing Documents
	  	16
	 Purchaser’s Representatives
	  	33
	 Removable Exceptions
	  	5
	 Retained Accounts Receivable
	  	22
	 Seller
	  	1
	 Seller’s Closing Documents
	  	15
	 Service Contracts
	  	7
	 Tangible Personal Property
	  	2
	 Title Company
	  	5
	 Title Policy
	  	6
	 Title Report
	  	5
	 Union Contracts
	  	19
	 Union Pension Plan
	  	19

  

 vi 

 PURCHASE AND SALE AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), made as of the 13th day of July, 2005 by and between BUCKINGHAM FOUNTAIN HOTEL, LLC, a Delaware limited liability company
(“Seller”), and SHC COLUMBUS DRIVE, LLC, a Delaware limited liability company (“Purchaser”).  
  
 W I T N E S S E T H: 
  
 WHEREAS, Seller is the owner of the Property (as hereinafter defined); 
  
 WHEREAS, Seller desires to sell the Property to Purchaser, and Purchaser desires to purchase the Property from Seller, on
the terms and conditions hereinafter set forth. 
  
 NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, and subject to the terms and conditions hereof, Seller and Purchaser hereby covenant and agree as follows: 
  
 ARTICLE 1 
  
 THE PROPERTY; PURCHASE PRICE 
  
 SECTION 1.01 The Property. 
  
 Seller shall sell, assign, transfer and convey to Purchaser, and Purchaser shall purchase from Seller, at the price and upon and subject to the terms and
conditions hereof, Seller’s right, title and interest in the following described property (all of which is hereinafter collectively referred to as the “Property”): 
  
 (a) that certain real property commonly known as 200 North Columbus Drive,
Chicago, Illinois and more particularly described in Exhibit A attached hereto and made a part hereof (the “Land”); 
  
 (b) the hotel located on the Land and commonly known as the “The Fairmont Chicago” (the “Hotel”), and all other
improvements located on the Land, including, without limitation, any and all plumbing, air conditioning, heating, ventilating, mechanical, electrical and other utility systems, parking lots and facilities, landscaping, roadways, sidewalks,
recreational facilities, security devices, signs and light fixtures (collectively, the “Improvements”); 
  
 (c) all appliances, machinery, devices, fixtures, appurtenances, equipment, furniture, and furnishings and articles of tangible personal property of every
kind and nature whatsoever of Seller located in or at, or used in connection with the ownership, operation, management or maintenance of all or any part of the Land or the Improvements, including, without limitation: pumps, tanks, hot water and
other heaters, refrigerators, dishwashers, furniture and furnishings; radio and television sets, telephone and other communications equipment, including antennas, and all public address systems; video cassette recording and cable television
equipment; linens, silverware, glassware, cutlery and china; rugs, mats, carpets, 

 
paintings, sculptures, awnings, shades, screens and blinds, vinyl composition and other floor, wall and ceiling coverings; partitions, doors and hardware;
electrical wiring and equipment; elevators and escalators; light poles, lighting equipment and fixtures; protection equipment; recreational facilities and equipment; heating, plumbing, washroom, toilet and lavatory fixtures and equipment; washing
machines, laundry apparatus, kitchen, dining room, restaurant, and workshop tools, utensils and equipment; lifting, ventilating, incinerating and compacting apparatus; sprinkler and other fire extinguishing and fire protection apparatus or systems
and alarms, detectors and other security equipment; hoists, fittings, radiators, chutes, ducts, machinery, landscaping, gardening, grounds keeping, sweeping, vacuuming and other cleaning, service and maintenance equipment; fences, gates, trees,
shrubs, plants and other landscaping; all fuel; all office furniture, equipment (including safes, cash registers and accounting and duplicating equipment) and machinery; all blankets, bedspreads, towels, washcloths, pillows, draperies, curtains and
uniforms; consumables (to the extent permitted by law); office, cleaning, housekeeping, engineering, laundry and valet supplies; all banquet and food service supplies and decorations, guest supplies (including stationery, soap, matches, light bulbs
and toilet and facial tissues); supplies and food and beverage inventory (to the extent permitted by law); and all items included within “Property and Equipment” and, to the extent permitted by law, “Inventories” pursuant to the
Uniform System of Accounts for Hotels and Motels (Ninth Revised Edition, 1996) (the “Tangible Personal Property”); 
  
 (d) the Management Agreement, Leases, Equipment Leases and Service Contracts (collectively, the “Agreements”); 
  
 (e) to the extent permitted by law, licenses, franchises and permits,
certificates of occupancy, authorizations and approvals used in or relating to the ownership, occupancy or operation of any part of the Hotel (collectively “Permits”); 
  
 (f) to the extent not the property of Manager, the customer lists, guest room
and facility reservations, records, statements, invoices, files, books and other data used by Seller and associated primarily with the ownership, use and operation of the Hotel, including the plans, specifications, sales tax returns and sales tax
clearance letters, to the extent such are in the possession of Seller (collectively, the “Hotel Records”); 
  
 (g) to the extent not the property of Manager, all trademarks, service marks, trade dress, logos, trade names, brand names and corporate names used in any
way in connection with the property, together with all translations, adaptations, derivations, and combinations thereof and including all goodwill associated therewith, and all applications, registrations, and renewals in connection therewith and
including, but not limited to, all of Seller’s right, title and interest, if any, in and to the name “The Fairmont Chicago”, and all trademarks, service marks, trade dress, logos and symbols used in connection with such name to the
extent Seller has exclusive rights thereto; and all additions to any of the foregoing, replacements thereof and substitutions therefore (collectively, the “Intellectual Property”) (the Tangible Personal Property, Agreements,
Permits, Hotel Records and Intellectual Property shall be referred to collectively as the “Personal Property”). 
  
 Notwithstanding anything to the contrary set forth above or otherwise contained herein, the Property expressly excludes all items of personal property owned by Manager,
utility companies, guests of the Hotel, tenants under Leases and independent contractors or subject to Equipment Leases. 
  

 2 

 SECTION 1.02 Purchase Price. The total consideration to be paid by Purchaser to Seller for the
Property is One Hundred Fifty-Four Million Six Hundred Fifty Thousand Dollars ($154,650,000) (the “Purchase Price”). The Purchase Price shall be payable by Purchaser as follows: 
  
 (a) Within two (2) business days following the execution hereof, Purchaser
shall deliver the sum of Nine Million Dollars ($9,000,000) (the “Deposit”) to the Title Company, as escrow agent (“Escrow Agent”), by wire transfer of immediately available federal funds to Escrow
Agent’s account, which shall be non-refundable, except as otherwise expressly provided in this Agreement. For purposes of this Agreement, “business day” shall mean any day except for Saturday, Sunday and legal holidays
in the states of Illinois and California. In the event that Purchaser fails to deposit the Initial Deposit with Escrow Agent within such two (2) business day period, such failure shall constitute a material breach of this Agreement and Seller may
elect to terminate this Agreement and receive the portion of the Deposit deposited with Escrow Agent, if any, as of the date of termination. The Deposit shall be held and paid by Escrow Agent in accordance with that certain escrow agreement to be
executed contemporaneously herewith among Seller, Purchaser and Escrow Agent in the form attached hereto as Exhibit B (the “Escrow Agreement”). Any and all interest earned on the Deposit shall be included as part of
the “Deposit” and shall be reported to Purchaser’s federal tax identification number. If the Closing contemplated by this Agreement is completed, at Closing the Deposit shall be credited against the Purchase Price. 
  
 (b) Seller and Purchaser hereby agree that in connection with the allocation
of property in accordance with the residual method set forth in Treasury Regulations promulgated under Section 338(b)(5) of the Internal Revenue Code of 1986, as amended, the portion of the Purchase Price allocated to the Personal Property will be
Thirteen Million Nine Hundred Eighteen Thousand Five Hundred Dollars ($13,918,500), the portion of the Purchase Price allocated to the Land will be Fifteen Million Four Hundred Sixty-Five Thousand Dollars ($15,465,000) and the portion of the
Purchase Price allocated to the Improvements will be One Hundred Twenty-Five Million Two Hundred Sixty-Six Thousand Five Hundred Dollars ($125,266,500). Seller and Purchaser hereby agree that each will consistently reflect the allocation on their
respective federal, state and local tax returns and that this allocation will be used in connection with state, county and city transfer tax returns filed in connection with the transaction contemplated in this Agreement. 
  
 (c) At Closing, Purchaser shall pay to Seller the Purchase Price by
immediately available federal funds wire transferred to Escrow Agent, subject, however, to such adjustments as are required by this Agreement and less any Deposit previously released to Seller (such amount, as adjusted, being referred to as the
“Cash Balance”). Purchaser shall deliver the Cash Balance to Escrow Agent in sufficient time and manner so that Title Company will be able to record the necessary documents and disburse funds to Seller on the Closing Date.

  
 (d) If as a result of the transaction contemplated by this
Agreement, Seller incurs a complete or partial withdrawal in connection with the Union Pension Plan, despite Seller and 

  

 3 

 
Purchaser’s intent to avoid such a complete or partial withdrawal in compliance with Section 4204 of ERISA pursuant to Section 8.04(f) of this
Agreement, Purchaser shall pay to Seller the amount of One Million One Hundred Seventy-Five Thousand Dollars ($1,175,000) within ten (10) days after notice from Seller, which notice shall include reasonable evidence that Seller has incurred such a
complete or partial withdrawal. The provisions of this Section 1.02(d) shall survive the Closing. 
  
 ARTICLE 2 
  
 THE CLOSING 
  
 SECTION 2.01 The Closing.

  
 The “Closing” of the transaction
contemplated by this Agreement (that is, the payment of the Purchase Price, the transfer of title to the Property, and the satisfaction of all other terms and conditions of this Agreement, unless waived by the party to whose benefit any condition
runs) shall occur no later than August 31, 2005 (the “Closing Date”), at the office of the Escrow Agent. 
  
 SECTION 2.02 Due Diligence. 
  
 (a) Purchaser hereby acknowledges that Seller has previously provided or made available to Purchaser copies or originals of the documents listed on
Exhibit H attached hereto (the “Documents”). Purchaser acknowledges that many of the Documents were prepared by third parties other than Seller, and in many instances, may have been prepared prior to the time that the
persons who now control Seller had any active involvement in the Property. Purchaser further acknowledges and agrees that, except as expressly set forth in Section 4.01, neither Seller nor any of Seller’s agents, employees, advisors,
consultants or contractors has made any warranty or representation, or undertaken any independent investigation, regarding the truth, accuracy or completeness of any of the Documents or the source(s) thereof. 
  
 (b) Purchaser acknowledges that pursuant to that certain Access Agreement by
and between Seller and Purchaser dated as of May 23, 2005, as amended by that certain First Amendment to Access Agreement dated as of May 26, 2005 and that certain Second Amendment to Access Agreement dated as of June7, 2005 (as amended, the
“Access Agreement”) from May 23, 2005 to June 29, 2005, Purchaser had the right, at reasonable times, (i) to enter upon the Property to make reasonable engineering tests and physical inspections and Seller shall reasonably
cooperate with Purchaser, or its agents, in arranging such tests and inspections, (ii) to inspect all books and records pertaining to the operation of the Property (and Seller shall supply such documentation, to the extent such documentation is
available, as Purchaser or Purchaser’s accountants or other representatives may reasonably request to facilitate such review), and (iii) to inspect all Documents, zoning or other governmental use restrictions. 
  
 (c) Seller has advised Purchaser that the Hotel is currently managed by
Fairmont Hotels & Resorts (U.S.) Inc., a Delaware corporation (the “Manager”), pursuant to that certain Hotel Management Agreement dated as of July 1, 2004 (the “Management Agreement”). Purchaser
shall be required to assume the Management Agreement at Closing. Purchaser 

  

 4 

 
acknowledges that under the Management Agreement, Manager has the sole and exclusive right to operate the Hotel subject to certain approval rights of Owner
and that, therefore, Owner has limited knowledge of, and ability to direct or influence, the operation of the Hotel. 
  
 ARTICLE 3 
  
 TITLE TO THE PROPERTY 
  
 SECTION 3.01 Title to the
Property. At Closing, Seller shall convey the Property to Purchaser, subject to the matters which are, or are deemed to be, Permitted Exceptions pursuant to this Article 3 (the “Permitted Exceptions”). 
  
 (a) Purchaser acknowledges that it has received from Chicago Title Insurance
Company, 388 Market Street, Suite 1300, San Francisco, California 94111, Attention: Patsy West (the “Title Company”) a preliminary title report for the Property dated May 20, 2005 (Order No. 008285150) (the “Title
Report”) for the issuance of an ALTA owner’s policy of title insurance with respect to the Property, and copies of all exceptions referred to therein. 
  
 (b) Seller agrees to cause exceptions 4, 7, 8, 13, 15 and 18 of Schedule B to the Title Report, as well as any consensual
liens or encumbrances agreed to by Seller on or after the date of this Agreement without Purchaser’s consent (collectively, the “Removable Exceptions”), to be removed. All other exceptions contained in the Title Report
shall be deemed Permitted Exceptions. Seller shall have until the Closing Date to attempt to remove, satisfy or cure the Removable Exceptions and for this purpose Seller shall be entitled to a reasonable adjournment of the Closing if additional time
is required, but in no event shall the adjournment exceed sixty (60) days after the date specified for the Closing Date in Section 2.01 hereof. If the Closing is delayed by Seller beyond the specified Closing Date, then the rescheduled Closing Date
shall occur no sooner than five (5) business days after the date of Seller’s notice to Purchaser stating that Seller has removed, satisfied or cured the Removable Exceptions. If having commenced attempts to cure any Removable Exception, Seller
later notifies Purchaser that Seller will be unable or unwilling to effect a cure thereof, Purchaser shall, within five (5) business days after such notice has been given, notify Seller in writing whether Purchaser shall elect (i) to accept the
conveyance of the Property subject to the Permitted Exceptions, specifically including any Removable Exception which Seller is unable or unwilling to cure, and without reduction of the Purchase Price, in which case the Closing shall occur no later
than ten (10) business days after Seller’s notice (unless such date is before the scheduled Closing Date), or (ii) to terminate this Agreement by sending written notice thereof to Seller, and upon delivery of such notice of termination, this
Agreement shall terminate and the Deposit shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except those that expressly survive the termination of this Agreement,
in which event Seller shall reimburse Purchaser for its actual out-of-pocket expenses (up to a maximum of $200,000) in connection with the Property incurred from the date of this Agreement through the date on which Seller so notifies Purchaser that
Seller is unable or unwilling to effect a cure of such objections as to which Seller has elected to attempt to cure. 
  
 (c) At Closing, Seller shall assign to Purchaser such title to the Property as will enable the Title Company to issue to Purchaser, a standard ALTA
(1992)Owner’s Policy of Title 

  

 5 

 
Insurance (the “Title Policy”) covering the Property subject only to the Permitted Exceptions, in the amount of the Purchase Price
allocated to the Land and Improvements pursuant to Section 1.02(b). Notwithstanding anything contained herein to the contrary, the Property shall be conveyed subject to the following matters, which shall be deemed to be Permitted Exceptions:

  
 (i) the Leases; 
  
 (ii) the lien of all ad valorem real estate taxes and assessments not yet
due and payable as of the Closing Date, subject to adjustment as herein provided; 
  
 (iii) local, state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect relating to the Property;

  
 (iv) items shown on any survey obtained by Purchaser; and

  
 (v) all matters directly or indirectly caused by or arising
through Purchaser. 
  
 (d) Purchaser may, at or prior to Closing,
notify Seller in writing of any objections to title first arising between (a) the effective date of the Title Report referred to above, and (b) the date on which the transaction contemplated herein is scheduled to close. With respect to any
objections to title set forth in such notice, Seller shall have the right, but not the obligation, to cure such objections. If Seller elects not to cure any objections specified in Purchaser’s notice, Purchaser shall have the following options:
(i) to accept a conveyance of the Property subject to the Permitted Exceptions, specifically including any matter objected to by Purchaser which Seller is unwilling to cure, and without reduction of the Purchase Price; or (ii) to terminate this
Agreement by sending written notice thereof to Seller, and upon delivery of such notice of termination, this Agreement shall terminate and the Deposit shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights,
obligations or liabilities hereunder except those that expressly survive the termination of this Agreement. If Seller elects to attempt to cure any such matters, the date for Closing shall be automatically extended by a reasonable additional time to
effect such a cure, but in no event shall the extension exceed sixty (60) days after the date specified for the Closing Date in Section 2.01 hereof. 
  
 (e) Purchaser shall reasonably cooperate with the Title Company and Seller in connection with obtaining title insurance insuring title to the Property
subject only to the Permitted Exceptions, including, without limitation, delivering to the Title Company such affidavits, certificates and other instruments as are reasonably requested by the Title Company and customarily furnished by purchasers of
real property who are seeking to obtain a policy of owner’s title insurance. 
  

 6 

 ARTICLE 4 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 4.01 Seller’s Representations and Warranties. Except as set forth in Exhibit J attached hereto, Seller hereby represents and
warrants to Purchaser, subject to Sections 4.03 through 4.05, that: 
  
 (a) Seller is a limited liability company in good standing under the laws of the States of Delaware and authorized to transact business in the State of Illinois and has full power and authority to enter into this
Agreement and consummate the transactions contemplated hereby; 
  
 (b) This Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Seller, and do not, and at the time of Closing will not, violate any provisions of any
agreement to which Seller is a party or to which it is subject or any law, judgment or order applicable to Seller; 
  
 (c) As of the date of this Agreement there are no actions, suits or proceedings pending or, to Seller’s knowledge, threatened against Seller or the
Property which materially adversely affect the Property or the ability of Seller to consummate the transaction contemplated by this Agreement. As used in this Agreement, “to Seller’s knowledge” means to the actual current knowledge of
Jeanne Myerson and Ken Perry without any duty of inquiry; 
  
 (d)
As of the date of this Agreement, Seller has not received any written notice of any pending or, to Seller’s knowledge, threatened taking or condemnation of all or any portion of the Property; 
  
 (e) To Seller’s knowledge, attached hereto as Exhibit C is a list
of all material service, maintenance, supply, parking and management contracts affecting the Property in effect on the date hereof (the “Service Contracts”); 
  
 (f) To Seller’s knowledge, attached hereto as Exhibit D is a list of all material equipment leases, equipment
conditional sales agreements and other equipment financing agreements (the “Equipment Leases”); 
  
 (g) Attached hereto as Exhibit E is a list of all leases, licenses and other occupancy agreements affecting the Property in effect as of the date
hereof (the “Leases”); 
  
 (h) Seller has
not filed a petition seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any law relating to bankruptcy or insolvency, nor has any such petition been filed against
Seller. Seller is not insolvent, nor would the consummation of the transactions contemplated by this Agreement render the Seller insolvent. No general assignment of either Seller’s property has been made for the benefit of creditors, and no
receiver, master, liquidator or trustee has been appointed for Seller or Seller’s property; 
  

 7 

 (i) To Seller’s knowledge, it has not received from any governmental authority written notice of any
currently existing material violation of any material statute, ordinance, rule, regulation or order applicable to the Property, or any part thereof, that will not have been corrected prior to Closing. The term violation as used in the foregoing
sentence shall include only matters for which there is an actual current obligation to correct pursuant to any applicable laws and regulations, and shall not include noncompliance matters that do not need to be corrected (for example, non-conforming
matters that are “grandfathered” and non-compliance matters that do not need to be corrected until certain events occur). 
  
 (j) To Seller’s knowledge, attached hereto as Exhibit E-1 is a list of Permits affecting the Property as of the date hereof. 
  
 (k) None of the Tangible Personal Property is stored anywhere other than at
the Hotel. 
  
 (l) To Seller’s knowledge, the audited 2004
financial statements and 2005 year to date operating statements for the Property delivered to Purchaser are true, complete and accurate and fairly present the results of the operation of the Property for the periods indicated. 
  
 (m) Seller is not a “foreign person” within the meaning of Internal
Revenue Code Section 1445(f)(3). 
  
 SECTION 4.02
Purchaser’s Representations and Warranties. Purchaser hereby represents and warrants to the Seller: 
  
 (a) Purchaser is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Delaware and
authorized to transact business in the State of Illinois and has full power and authority to enter into this Agreement and consummate the transactions contemplated hereby; 
  
 (b) This Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of Purchaser, and do not, and at the time of Closing will not, violate any provisions of any agreement to which Purchaser is a party or to which it is subject or any law, judgment or order applicable to Purchaser; 
  
 (c) As of the date of this Agreement there are no actions, suits or
proceedings pending or, to Purchaser’s knowledge, threatened against Purchaser which materially adversely affect the ability of Purchaser to consummate the transaction contemplated by this Agreement. As used in this Agreement, “to
Purchaser’s knowledge” means to the actual current knowledge of Laurence Geller without any duty of inquiry; and 
  
 (d) Purchaser has not filed any petition seeking or acquiescing in any reorganization, arrangement, composition, readjustment, liquidation, dissolution or
similar relief under any law relating to bankruptcy or insolvency, nor has any such petition been filed against Purchaser. No general assignment of Purchaser’s property has been made for the benefit of creditors, and no receiver, master,
liquidator or trustee has been appointed for Purchaser or any of its property. Purchaser is not insolvent and the consummation of the transactions contemplated by this Agreement shall not render Purchaser insolvent. 
  

 8 

 SECTION 4.03 Certain Limitations on Seller’s Representations and Warranties. The
representations and warranties of Seller set forth in Section 4.01 are subject to the following express limitations: 
  
 (a) If, prior to Closing, Purchaser shall obtain actual knowledge that any of the representations or warranties of Seller contained in this Agreement are
false or inaccurate in any material respect, or that Seller is in breach or default of any of its material obligations under this Agreement, and Purchaser nonetheless closes the transaction hereunder and purchases the Property, then Seller shall not
have any liability or obligation to Purchaser with respect to a cause of action that is attributable to such false or inaccurate representation or warranty or breach or default. 
  
 (b) Notwithstanding Section 4.04, Seller may update its representations and warranties by delivering written notice to
Purchaser in order to reflect any fact, matter or circumstance that would make any of Seller’s representations or warranties contained herein materially untrue, incomplete or incorrect (any such disclosure being referred to as a
“Pre-Closing Disclosure”). Purchaser acknowledges that Seller shall have no liability, obligation or responsibility with respect to any representation or warranty which was true and accurate when made by Seller upon the
execution and delivery of this Agreement and which subsequently becomes untrue or inaccurate for any reason which is not a breach or default by Seller (e.g., an untruth or inaccuracy due to the passage of time, litigation initiated against Seller by
a third party, events occurring or knowledge acquired by Seller after the date of this Agreement, etc.). Purchaser’s sole remedy for any Pre-Closing Disclosure and for any breach of which it has knowledge (except in connection with a breach by
Seller of its obligations under this Agreement) shall be to terminate this Agreement prior to Closing, whereupon the Deposit shall be returned to Purchaser and the parties shall have no further obligation or liability hereunder, except for those
that expressly survive termination of this Agreement, failing which, Purchaser shall be deemed to have accepted all Pre-Closing Disclosures and waived any breach of Seller’s representations and warranties of which Purchaser has knowledge.
Notwithstanding anything to the contrary contained herein, Purchaser shall have no right to terminate this Agreement by reason of any untruth or inaccuracy in Seller’s representations and warranties which is caused by an action which Seller is
authorized or permitted to take under this Agreement. The provisions of this Section 4.03(c) shall survive the Closing or termination of this Agreement for any cause. 
  
 SECTION 4.04 Survival of Representations and Warranties. All representations and warranties of Seller and Purchaser
shall be true and correct in all material respects as of the Closing Date as if made on such date except for those representations and warranties which speak as to a specific date and except as otherwise expressly permitted pursuant to this
Agreement. The only representations, warranties and agreements of Seller or Purchaser hereunder that will survive the Closing or such other earlier survival period as is set forth herein are those that are specifically stated herein to survive.
Unless otherwise stated, the representations and warranties of Seller contained in Section 4.01, and the representations and warranties of Purchaser contained in Section 4.02, will survive the Closing for a period of one (1) year, provided that (i)
any claim based upon any alleged breach thereof must be noticed in 

  

 9 

 
writing, specifying the scope and nature of such claim in reasonable detail, on or before the first (1st) anniversary of Closing, and (ii) no party may make any claim hereunder against the other party for breach of representation or warranty unless the amount of
damages reasonably claimed by the party seeking remedy exceeds One Hundred Thousand Dollars ($100,000). 
  
 SECTION 4.05 No Other Representations or Warranties. 
  
 (a) Purchaser acknowledges that (i) pursuant to the Access Agreement, Seller granted Purchaser the opportunity to examine the Property to become familiar
with the physical condition thereof and Purchaser had the opportunity to conduct such investigation of the affairs of the Property as Purchaser considered appropriate, (ii) except as contained in this Agreement or in any of the Closing Documents
neither Seller nor any of the employees, agents or attorneys of Seller have made any verbal or written representations, warranties, promises or guaranties whatsoever to Purchaser (other than those contained herein or in any of the Closing
Documents), whether express or implied, (iii) in particular, that no such other representations, warranties, promises or guaranties have been made with respect to the physical condition (including, without limitation the environmental condition) or
operation of the Property, the actual or projected revenue and expenses of the Property, the zoning and other laws, regulations and rules applicable to the Property or the compliance of the Property therewith (including, without limitation,
compliance with any applicable environmental or hazardous wastes law), the quantity, quality or condition of the articles of Personal Property and fixtures included in the transactions contemplated hereby, the use or occupancy of the Property or any
part thereof or any other matter or thing affecting or related to the Property or the transactions contemplated hereby, except as, and solely to the extent, herein specifically set forth, and (iv) except for the representation, warranties, covenants
and guaranties set forth in the Agreement or in any of the Closing Documents, Purchaser has not relied on any statements, representations, warranties, promises or guaranties or upon any statements made in any informational brochure with respect to
the Property. Further, to the extent that Seller has provided to Purchaser information or reports regarding any inspection, engineering, environmental or other matters regarding any aspect of the Property, Seller makes no representations or
warranties with respect to the accuracy, completeness, methodology of preparation or otherwise concerning the contents of such reports. 
  
 (b) Subject to the express representations, warranties and covenants of Seller contained herein or in the Closing Documents, Purchaser agrees to accept
the Property “AS IS”, “WHERE IS” and “WITH ALL FAULTS” in their present condition (including any latent or patent defects), subject to ordinary use, wear, tear and natural deterioration of the Property between the date
hereof and the Closing Date. 
  
 (c) NOTWITHSTANDING ANYTHING
CONTAINED HEREIN TO THE CONTRARY, EXCEPT AS PROVIDED IN SECTION 4.02 HEREOF, IT IS UNDERSTOOD AND AGREED THAT SELLER AND ITS REPRESENTATIVES AND/OR AGENTS HAVE NOT MADE AND ARE NOT NOW MAKING, AND THEY SPECIFICALLY DISCLAIM, ALL WARRANTIES,
REPRESENTATIONS OR GUARANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, WARRANTIES, REPRESENTATIONS OR GUARANTIES AS TO (I) MATTERS OF TITLE

  

 10 

 
(OTHER THAN SELLER’S LIMITED WARRANTY OF TITLE SET FORTH IN THE DEED TO BE DELIVERED AT CLOSING), (II) ENVIRONMENTAL MATTERS RELATING TO THE PROPERTY OR
ANY PORTION THEREOF, (III) GEOLOGICAL CONDITIONS, INCLUDING, WITHOUT LIMITATION, SUBSIDENCE, SUBSURFACE CONDITIONS, WATER TABLE, UNDERGROUND WATER RESERVOIRS, LIMITATIONS REGARDING THE WITHDRAWAL OF WATER, AND EARTHQUAKE FAULTS AND THE RESULTING
DAMAGE OF PAST AND/OR FUTURE EARTHQUAKES, (IV) WHETHER, AND THE EXTENT TO WHICH, THE PROPERTY OR ANY PORTION THEREOF IS AFFECTED BY ANY STREAM (SURFACE OR UNDERGROUND), BODY OF WATER, FLOOD PRONE AREA, FLOOD PLAIN, FLOODWAY OR SPECIAL FLOOD HAZARD,
(V) DRAINAGE, (VI) SOIL CONDITIONS, INCLUDING THE EXISTENCE OF INSTABILITY, PAST SOIL REPAIRS, SOIL ADDITIONS OR CONDITIONS OF SOIL FILL, OR SUSCEPTIBILITY TO LANDSLIDES, OR THE SUFFICIENCY OF ANY UNDERSHORING, (VII) ZONING TO WHICH THE PROPERTY OR
ANY PORTION THEREOF MAY BE SUBJECT, (VIII) THE AVAILABILITY OF ANY UTILITIES TO THE PROPERTY OR ANY PORTION THEREOF INCLUDING, WITHOUT LIMITATION, WATER, SEWAGE, GAS AND ELECTRIC, (IX) USAGES OF ADJOINING PROPERTY, (X) ACCESS TO THE PROPERTY OR ANY
PORTION THEREOF, (XI) THE VALUE, COMPLIANCE WITH THE PLANS AND SPECIFICATIONS, SIZE, LOCATION, AGE, USE, DESIGN, QUALITY, DESCRIPTION, SUITABILITY, STRUCTURAL INTEGRITY, OPERATION, TITLE TO, OR PHYSICAL OR FINANCIAL CONDITION OF THE PROPERTY OR ANY
PORTION THEREOF, OR ANY INCOME, EXPENSES, CHARGES, LIENS, ENCUMBRANCES, RIGHTS OR CLAIMS ON OR AFFECTING OR PERTAINING TO THE PROPERTY OR ANY PART THEREOF, (XII) THE PRESENCE OF HAZARDOUS MATERIALS IN OR ON, UNDER OR IN THE VICINITY OF THE PROPERTY,
(XIII) THE CONDITION OR USE OF THE PROPERTY OR COMPLIANCE OF THE PROPERTY WITH ANY OR ALL PAST, PRESENT OR FUTURE FEDERAL, STATE OR LOCAL ORDINANCES, CODES OR OTHER SIMILAR LAWS, (XIV) THE EXISTENCE OR NON-EXISTENCE OF UNDERGROUND STORAGE TANKS,
(XV) ANY OTHER MATTER AFFECTING THE STABILITY OR INTEGRITY OF THE PROPERTY, (XVI) THE EXISTENCE OF VESTED LAND USE, ZONING OR BUILDING ENTITLEMENTS AFFECTING THE PROPERTY, (XVII) THE MERCHANTABILITY OF THE PROPERTY OR FITNESS OF THE PROPERTY FOR ANY
PARTICULAR PURPOSE (PURCHASER AFFIRMING THAT PURCHASER HAS NOT RELIED ON SELLER’S SKILL OR JUDGMENT TO SELECT OR FURNISH THE PROPERTY FOR ANY PARTICULAR PURPOSE, AND THAT SELLER MAKES NO WARRANTY THAT THE PROPERTY IS FIT FOR ANY PARTICULAR
PURPOSE), OR (XVIII) TAX CONSEQUENCES. 
  
 PURCHASER HAS NOT
RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ITS REPRESENTATIVES OR ANY OF THEIR RESPECTIVE AGENTS, AND ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS HAVE BEEN MADE, EXCEPT AS SET FORTH
IN SECTION 4.02 HEREOF. PURCHASER WILL CONDUCT SUCH INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY AS PURCHASER DEEMS NECESSARY, INCLUDING, BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND SHALL RELY UPON SAME. UPON
CLOSING, PURCHASER SHALL ASSUME THE RISK OF ADVERSE MATTERS, 

  

 11 

 
INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, WHICH MAY NOT HAVE BEEN REVEALED BY PURCHASER’S INSPECTIONS AND
INVESTIGATIONS. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING, SELLER SHALL SELL AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS”, WITH ALL FAULTS AND DEFECTS. PURCHASER FURTHER ACKNOWLEDGES AND
AGREES THAT THERE ARE NO ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS, COLLATERAL TO OR AFFECTING THE PROPERTY BY SELLER, ANY AGENT OF SELLER OR ANY THIRD PARTY. PURCHASER AND ANYONE CLAIMING BY, THROUGH OR UNDER PURCHASER, EACH HEREBY FULLY
RELEASES SELLER, ITS SUBSIDIARIES, AFFILIATES, MEMBERS, EMPLOYEES, OFFICERS, DIRECTORS, REPRESENTATIVES, ATTORNEYS, PARTNERS, AND AGENTS FROM ANY AND ALL CLAIMS THAT IT MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST SELLER AND ITS SUBSIDIARIES,
AFFILIATES, EMPLOYEES, OFFICERS, DIRECTORS, REPRESENTATIVES, ATTORNEYS, PARTNERS, AND AGENTS FOR ANY COSTS, LOSS, LIABILITY, DAMAGE, EXPENSE, DEMAND, ACTION OR CAUSE OF ACTION ARISING FROM OR RELATED TO ANY CONSTRUCTION DEFECTS, ERRORS, OMISSIONS,
OR OTHER CONDITIONS AFFECTING THE PROPERTY. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT THIS RELEASE SHALL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO EACH OF ITS EXPRESSED TERMS AND PROVISIONS, INCLUDING, BUT NOT LIMITED TO, THOSE RELATING TO
UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES, AND CAUSES OF ACTION. PURCHASER RELEASES SELLER OF ALL RIGHTS, EXPRESS OR IMPLIED, PURCHASER MAY HAVE AGAINST SELLER ARISING OUT OF OR RESULTING FROM ANY ERRORS, OMISSIONS OR DEFECTS IN THE PROPERTY.
PURCHASER FURTHER UNDERSTANDS THAT SOME OF SELLER’S PREDECESSORS IN INTEREST MAY BE OR BECOME INSOLVENT, BANKRUPT, JUDGMENT PROOF OR OTHERWISE INCAPABLE OF RESPONDING IN DAMAGES, AND PURCHASER MAY HAVE NO REMEDY AGAINST SUCH PREDECESSORS,
CONTRACTORS OR CONSULTANTS. THIS WAIVER AND RELEASE OF CLAIMS SHALL SURVIVE THE CLOSING. 
  
 ARTICLE 5 
  
 COVENANTS OF SELLER;
MUTUAL COVENANTS 
  
 SECTION 5.01 Covenants of Seller. From
and after the date of this Agreement until the Closing Date (or during such other period specified below): 
  
 (a) Seller shall use commercially reasonable efforts to cause Manager to operate the Property substantially in the manner in which it has heretofore been
and presently is operating the Property. 
  
 (b) Seller shall use
commercially reasonable efforts to cause Manager to maintain in effect insurance policies presently in effect with respect to the Hotel, or reasonable renewals of expiring policies. 
  

 12 

 (c) Seller shall use commercially reasonable efforts to cause Manager to pay before delinquency all ad
valorem, occupancy sales and other similar taxes due and payable for the Property or the operation of the Hotel. 
  
 (d) Seller shall not remove or cause or permit to be removed any part or portion of the Tangible Personal Property unless the same is replaced, before
Closing, with similar items of at least equal suitability, quality and value; provided, however, that inventory shall be used and replenished in accordance with Manager’s normal business practices. 
  
 (e) Without the consent of Purchaser, which consent shall not be unreasonably
withheld or delayed, Seller (i) shall not enter into any new employment agreements that would be binding on Purchaser or the Property, and (ii) shall not change, modify, extend or renew or terminate any employment agreement or the Union Contracts in
effect as of the date hereof that would be binding on Purchaser or the Property. 
  
 (f) Seller shall promptly advise Purchaser of any litigation, arbitration or administrative hearing concerning or affecting the Property of which Seller obtains knowledge. 
  
 (g) Seller shall use commercially reasonable efforts to cause Manager to
preserve in force all existing Permits and to cause all those expiring to be renewed (if renewable) prior to the Closing Date. 
  
 (h) Seller shall use commercially reasonable efforts to cause the Manager to continue, to use commercially reasonable efforts to take guest room
reservations and to book functions and meetings and otherwise to promote the business of the Property in generally the same manner as Manager did before the execution of this Agreement. 
  
 (i) Seller may not enter into any new Lease, Equipment Lease or Service Contract without the consent of Purchaser which
consent shall not be unreasonably withheld or delayed. 
  
 Notwithstanding the foregoing, to the extent that Manager is permitted to take certain actions or enter into agreements under the Management Agreement without Seller’s approval or consent, the taking of such actions or entering into
such agreements by Manager shall in no way constitute a breach of Seller’s obligations under this Section 5.01. 
  
 ARTICLE 6 
  
 COVENANTS OF PURCHASER 
  
 SECTION 6.01 Covenants of
Purchaser. Purchaser acknowledges that all information in respect of the Property furnished or to be furnished to Purchaser is and has been so furnished on the condition that Purchaser (a) shall use the information solely for purposes of
evaluating the Property and consummating the transaction contemplated in this Agreement and (b) Purchaser shall maintain the confidentiality of such information. Accordingly, Purchaser shall, and shall cause its directors, officers and other
personnel and representatives to, hold in strict confidence, and not disclose to any other party without the prior written consent of Seller, 

  

 13 

 
any of the information in respect of the Property delivered to Purchaser by Seller or any of Seller’s agents, representatives or employees.
Notwithstanding anything to the contrary hereinabove set forth, Purchaser may disclose such information (i) on a need-to-know basis to its employees, members of professional firms serving it in connection with this transaction and potential
financing sources (so long as Purchaser instructs such parties to keep the information confidential pursuant to the terms of this section), (ii) as any governmental agency may require in order to comply with applicable laws or regulations, (iii) if
such information became generally available to the public other than as a result of an unauthorized disclosure by Purchaser, (iv) if such information were known to Purchaser or its representatives on a non-confidential basis prior to their
disclosure to Purchaser by Seller or its representatives or (v) if such information became available to Purchaser or its representatives on a non-confidential basis from a source other than Seller, which was not known by Purchaser to be prohibited
from disclosing the same. In the event the Closing does not occur and this Agreement is terminated, Purchaser shall promptly return to Seller all copies of all such information without retaining any copy thereof, except such as must be retained by
any professionals to whom such information has been disclosed in accordance with this Section 6.01 in order to comply with their professional obligations. 
  
 SECTION 6.02 Survival. The provisions of this Article 6 shall survive the termination of this Agreement but shall be extinguished upon the Closing
of the transactions contemplated by this Agreement. 
  
 ARTICLE 7

  
 CLOSING CONDITIONS AND DELIVERIES 
  
 SECTION 7.01 Conditions to Seller’s Obligations. The obligation
of Seller to transfer the Property to Purchaser and to otherwise consummate the transaction contemplated hereby shall be subject to the satisfaction of the following conditions precedent on and as of the Closing Date: 
  
 (a) the representations and warranties of Purchaser contained in this
Agreement shall have been true in material respects when made and shall be true in material respects at and as of the Closing Date as if such representations and warranties were made at and as of the Closing Date, and Purchaser shall have performed
and complied in material respects with the covenants, agreements and conditions required by this Agreement to be performed or complied with by Purchaser prior to or at the Closing; 
  
 (b) Seller shall have received Purchaser’s Closing Documents; and 
  
 (c) Purchaser shall have paid the Cash Balance of the Purchase Price with
respect to the Property, in accordance with Section 1.02(c) and such other amounts as are due to the Seller hereunder and payable at Closing. 
  
 SECTION 7.02 Conditions to Purchaser’s Obligations. Purchaser’s obligation to pay the Purchase Price, to purchase the Property and
otherwise consummate the transaction contemplated hereby shall be subject to the satisfaction of the following conditions precedent on and as of the Closing Date: 
  

 14 

 (a) The representations and warranties of the Seller contained in this Agreement shall have been true in
material respects when made and shall be true in material respects at and as of the Closing Date as if such representations and warranties were made at and as of the Closing Date except for those representations and warranties which speak to a
specific date and except as otherwise expressly permitted pursuant to this Agreement, and the Seller shall have performed and complied in material respects with the covenants, agreements and conditions required by this Agreement to be performed or
complied with by Seller prior to or on the Closing Date subject to Seller’s rights to extend the Closing Date as expressly provided in the Agreement; 
  
 (b) Purchaser shall have received Seller’s Closing Documents; 
  
 (c) the Title Company shall be prepared to issue to Purchaser the Title Policy; 
  
 (d) Seller shall have delivered any notice required under the Union Contracts
due to the transfer of the Property to Purchaser; and 
  
 (e)
Seller shall have delivered to Purchaser an estoppel certificate dated not more than twenty (20) days prior to the Closing Date and duly executed by the Manager containing the statements required by Section 20.16 of the Management Agreement.

  
 SECTION 7.03 Seller’s Closing Documents. At the
Closing, Seller shall deliver to Purchaser the following documents and other items duly executed and, where applicable, acknowledged by Seller (the documents and other items described in this Section 7.03 being collectively referred to herein as the
“Seller’s Closing Documents”): 
  
 (a) A special warranty deed conveying to Purchaser title to the Land and Improvements, subject only to the Permitted Exceptions; 
  
 (b) with respect to the Tangible Personal Property, a Bill of Sale in the form attached hereto as Exhibit I; 
  
 (c) with respect to the Leases, an Assignment of Leases in the form attached
hereto as Exhibit F (the “Assignment of Leases”); 
  
 (d) with respect to the Service Contracts, Equipment Leases, Permits and Intellectual Property, an Assignment of Service Contracts, Equipment Leases, Permits and Intellectual Property in the form attached hereto as
Exhibit G (the “General Assignment”); 
  
 (e) with respect to the Management Agreement, an Assignment of Management Agreement in the form attached hereto as Exhibit L (the “Assignment of Management Agreement”); 
  
 (f) to the extent the same are in Seller’s possession, original executed
counterparts of the Union Contracts; 
  
 (g) to the extent the
same are in Seller’s possession, original, executed counterparts of the Leases; 
  

 15 

 (h) to the extent the same are in Seller’s possession, original, executed counterparts of the
Service Contracts; 
  
 (i) to the extent the same are in
Seller’s possession, original, executed counterparts of the Equipment Leases; 
  
 (j) affidavit of Seller pursuant to Section 1445(b)(2) of the Internal Revenue Code of 1986, as amended, stating that Seller is not a foreign person within the meaning of such Section; 
  
 (k) owner’s affidavit for the benefit of the Title Company in a form
that allows the Title Company to issue the Title Policy; 
  
 (l)
an Assignment and Assumption of Hotel Easement Agreement in the form attached hereto as Exhibit M (the “Assignment of Easement Agreement”), pursuant to which Seller shall assign all of its right, title and interest in
and to, and Purchaser shall assume the obligations of Seller under, that certain Hotel Easement Agreement dated September 30, 1985 and originally between American National Bank and Trust Company of Chicago as Trustee under Trust No. 64971, and Amoco
Properties Incorporated, an Indiana corporation (the “Easement Agreement”); 
  
 (m) a notice of the assignment to and assumption by Purchaser of the rights and obligations under the Easement Agreement in the form attached hereto as
Exhibit M-1. 
  
 SECTION 7.04 Purchaser’s Closing
Documents. At the Closing, Purchaser shall deliver to Seller the following documents duly executed by Purchaser (or Purchaser’s designee) (the documents described in this Section 7.04 being collectively referred to herein as the
“Purchaser’s Closing Documents” and together with the Seller’s Closing Documents, the “Closing Documents”): 
  
 (a) a counterpart of the Assignment of Leases; 
  
 (b) a counterpart of the General Assignment 
  
 (c) a counterpart of the Assignment of Management Agreement 
  
 (d) a counterpart of the Assignment of Easement Agreement; and 
  
 (e) any documents Purchaser is required to deliver under Section 3.01(f). 
  
 SECTION 7.05 Conditions Generally. The foregoing conditions are for
the benefit only of the party for whom they are specified to be conditions precedent and such party may, in its sole discretion, waive any or all of such conditions and close title under this Agreement without any increase in, abatement of or credit
against the Purchase Price. 
  

 16 

 ARTICLE 8 
  
 TAXES AND OTHER EXPENSES; EMPLOYEES 
  
 SECTION 8.01 Transfer Taxes. Except as set forth in Section 8.03, at the Closing, Seller and Purchaser shall each pay one-half of all state, county
and City of Chicago transfer, documentary, stamp and other similar taxes and charges payable in connection with the transfer of the Property to Purchaser and the consummation of the transactions contemplated hereby. 
  
 SECTION 8.02 Title, Escrow and Recording Fees. Seller and Purchaser
shall each pay one-half of all escrow fees. Seller shall pay the premium for a standard ALTA owner’s policy of title insurance. Purchaser shall pay any additional premiums and fees for the Title Policy (including for any endorsements requested
by Purchaser), any lender’s policy of title insurance, the cost of the Survey and all recording fees. 
  
 SECTION 8.03 Sales Tax. Other than taxes due and owing by Seller in connection with Section 9.02(d) of the Illinois Income Tax Act
(“Bulk Sales Taxes”), which shall be paid by Seller, any sales tax payable as a result of the transfer of the Personal Property and other assets contemplated in this Agreement shall be paid by Purchaser. Purchaser hereby
indemnifies, defends and saves harmless Seller from any such sales tax liability, and from any and all costs, claims, liabilities, losses and expenses, including, without limitation, attorneys’ fees and disbursements, incurred in contesting the
existence or amount of any such sales tax liability or in respect of any such sales tax liability, including, without limitation, penalties, interest and other charges in respect of the same. Purchaser and Seller each shall indemnify, defend and
hold the other party harmless with respect to any failure by the indemnifying party to comply with its obligations under this Section 8.03. 
  
 SECTION 8.04 Employees. 
  
 (a) Seller will request that Manager make available to Purchaser at the Hotel, to the extent permitted by law, a list of all employees employed at the
Hotel (the “Employees”) and of each Employee’s then current rate of pay, accrued vacation benefits, job classification, date of employment, positions held and other pertinent compensation and benefits information.

  
 (b) Purchaser shall receive a credit at Closing for the
following items to the extent not paid by Seller: any accrued or earned but unused vacation, sick days, personal days, and paid time off (PTO) as of the Closing Date; compensation accrued or earned through the Closing Date; and bonus and benefit
plan and union contributions with respect to the Employees, apportioned as of the Cut-Off Time. From and after the Closing, Purchaser shall assume and be liable for or cause an affiliate of Manager (the “Employer Entity”) to
assume and be liable for the payment of all such items to the extent Purchaser received a credit at Closing for such items. Without limitation on the foregoing, bonuses shall be deemed accrued through the Closing Date based on best estimates of
performance through the Cut-Off Time and apportioned as of the Cut-Off Time. In addition, the Purchaser shall receive at Closing (i) a credit for the accrued liability under the salary continuation plan, determined in good faith by Purchaser and
Seller and (ii) a credit to the extent the deferred compensation plan liability exceeds the life insurance assets or 

  

 17 

 
other assets transferred to Purchaser or the Employer Entity in connection with such deferred compensation plan. Purchaser shall also receive a credit at
Closing for the estimated incurred but not reported claims as of the Cut-Off Time under the Seller’s self-funded health benefit plan as agreed by Purchaser and Seller. Except for the self-funded health benefit plan claims, the proration of all
such items shall be subject to reconciliation pursuant to the Final Closing Statement. The Seller’s self-funded health benefit claim costs shall be reconciled as of January 31, 2006 based on services rendered or supplies or medications provided
to Employees prior to the Cut-Off Time. 
  
 (c) Seller and
Purchaser agree that Purchaser shall cause the Employer Entity to assume the sponsorship, assets (including, without limitation, benefit insurance policies (including, without limitation, the life insurance policies intended to mirror all or part of
the deferred compensation plan obligations) and stop loss policies) and benefit liabilities and obligations under Seller’s employee benefit plans, programs, policies, or agreements (whether written or unwritten) sponsored, maintained, or
contributed to by or on behalf of Seller as of the Closing Date and covering any of the Employees or their dependents (but not including any “multiemployer plans” as defined in Section 3(37) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”), which topic is addressed separately in this Section 8.04) to the extent, and only to the extent, such plans, programs, policies or agreements (including any underlying trusts, insurance
contracts, or other funding vehicles) are specifically identified in Exhibit K hereto (the “Plans”), including, without limitation, any continuing obligations under the Consolidated Omnibus Budget Reconciliation Act of
1986 (“COBRA”). Notwithstanding the preceding sentence, neither Purchaser nor Employer Entity has assumed or shall be responsible for nor shall assume or be responsible for any unfunded obligations or liabilities arising out
of any employment relationship of Seller and not credited to Purchaser at Closing or pursuant to the Final Closing Statement or pursuant to the last sentence of Section 8.04(b). Without limiting the foregoing, Purchaser shall have no liability or
obligation in connection with former or current Employees or agents of Seller, or any dependent or beneficiary of any of them by reason of their relationship to Seller, for the following which shall be paid by the Seller to the extent accrued or
arising from events occurring on or prior to the Closing except to the extent (i) credited to Purchaser at Closing or pursuant to the Final Closing Statement or pursuant to the last sentence of Section 8.04(b), or (ii) that assets of Seller or the
corresponding plan have been transferred to Purchaser or Employer Entity with respect to such liability or obligation pursuant to this Agreement: (1) unpaid wages, salaries, bonus or other compensation promised by Seller or required by law; (2)
contributions to employee benefit plans, programs, policies, arrangements or understandings ; (3) severance pay, if any; (4) liabilities or obligations under any collective bargaining relationship or the Union Contracts ; or (5) claims, demands,
administrative proceedings or suits arising out of, or in connection with, alleged unlawful employment practices of Seller or the operation or administration of the Plans on or prior to the Closing Date. On or prior to the Closing Date, Seller and
Purchaser shall execute (or Purchaser shall cause Employer Entity to execute with Seller) such amendments of the Plans as are necessary to implement such assumption by Employer Entity and to prevent the Employees’ transfer of employment to
Employer Entity as contemplated by this Agreement from being treated as a termination or interruption of employment or a distributable event for purposes of the Plans, provided such amendments do not increase benefits obligations of the Purchaser or
Employer Entity and, further, provided such Plans are amendable or terminable without cost to the Purchaser or Employer Entity. 
  

 18 

 (d) Purchaser shall cause the Employer Entity to offer employment to all of the Employees upon Closing,
including any Employee on an approved leave of absence at Closing, which employment initially shall be at salaries, wages and/or other compensation and with benefits at least equivalent to the salaries, wages and/or other compensation and benefits
(including, without limitation, sick leave, vacation, health insurance and other pension and welfare benefits) that such Employees enjoy as of the day prior to the Closing Date. Purchaser agrees that, notwithstanding any provisions to the contrary
under this Section 8.04, to the extent the term of a Employee’s service is relevant for eligibility, vesting, or benefit accruals under any benefit plan or program maintained by Purchaser or the Employer Entity, such benefit plan or program
shall credit each such Hired Employee for services rendered to Seller or Manager prior to the Closing Date. This Section 8.04(d) shall not limit Purchaser or Employer Entity from changing or terminating employment of any Employee or changing
salaries or wages or changing or terminating any other compensation or benefits and creates no third-party beneficiary rights in any Employee or other person or entity. 
  
 (e) Purchaser acknowledges that Seller is a party to the union contracts set forth in Exhibit K hereto (the
“Union Contracts”). Purchaser agrees to cause the Employer Entity to adopt the Union Contracts and assume the obligations of an employer thereunder (including any obligations to contribute to multiemployer plans maintained by
the relevant union), and to offer employment to 100% of the union Employees at the Property covered by the Union Contracts on the terms set forth above. 
  
 (f) Purchaser and Seller intend by this Agreement to comply with Section 4204 of ERISA, so as to prevent Seller from incurring at the Closing Date a
complete or partial withdrawal in respect of the Hotel Employees and Restaurant Employees International Union Pension Plan (“Union Pension Plan”), which is a multiemployer plan, in which certain of the Employees currently
participate. Accordingly, prior to the Union Pension Plan’s first plan year beginning after the Closing Date, Purchaser shall apply, or shall cause Employer Entity to apply, to such plan for a variance from the requirement of Section
4204(a)(1)(b) of ERISA, that a bond be obtained or an amount be held in escrow as provided in said Section. In the event the Union Pension Plan determines that the request does not qualify for a variance, Purchaser shall obtain, or shall cause
Employer Entity to obtain, any required bond or establish any required escrow within 30 days after the date on which it receives notice of the Union Pension Plan’s decision, and shall maintain such bond or escrow until the earliest of:

  
 (i) the date a variance is obtained from the Union Pension
Plan; 
  
 (ii) the date a variance or exemption is obtained from
the Pension Benefit Guaranty Corporation; or 
  
 (iii) the last
day of the fifth plan year commencing after the Closing Date, 
  

 19 

 which bond or escrow shall be paid to such Union Pension Plan if Purchaser or Employer Entity, as applicable, withdraws
therefrom or fails to make a contribution to such Union Pension Plan when due, at any time during the first five plan years of such Union Pension Plan beginning after the Closing Date. Seller shall be responsible for the cost of applying and
obtaining any variance as set forth above and to the extent Purchaser or Employer Entity is unable to obtain any variance as set forth above, Seller shall be responsible for the cost of any bond or escrow or other security required of Purchaser or
Employer Entity under Section 4204 of ERISA and such bond or escrow or other security shall be arranged in such manner as to not affect Purchaser’s or Employer Entity’s credit facility or borrowing ability or be reflected as a liability
(without an offsetting asset or agreed credit at Closing) of Purchaser or Employer Entity. In order to comply with subsection (a)(1)(C) of such Section 4204, if Purchaser or Employer Entity, as applicable, withdraws in a complete withdrawal or a
partial withdrawal from the Union Pension Plan and such withdrawal or partial withdrawal occurs during the five plan years commencing with the first plan year beginning after the Closing Date, Seller shall be secondarily liable for any withdrawal
liability it would have had to such Union Pension Plan on the Closing Date under Title IV of ERISA. If Seller’s assets are distributed, or if Seller is liquidated before the end of such five plan year period, Seller shall provide a bond or
escrow as required under Section 4204 of ERISA. Purchaser agrees to provide Seller with reasonable advance notice of its, or Employer Entity’s, anticipated failure to pay any withdrawal liability and to furnish Seller promptly with a copy of
any notice of withdrawal liability it may receive with respect to such plans. 
  
 (g) Without limiting the generality of Section 15.01(a), Seller agrees to indemnify, defend and hold harmless the Purchaser and its manager (and their respective partners, employees and affiliates) from and against
any and all losses, liabilities, claims and damages arising out of or otherwise in respect of Seller’s failure to comply with any of the covenants in this Section 8.04 (including Seller’s or Manager’s inability or failure to satisfy
the compensation or benefit-related obligations not assumed by Purchaser or Employer Entity in Section 8.04(c)). Purchaser agrees to indemnify, defend and hold harmless the Seller and the Manager (and their respective partners, members, employees
and affiliates) from and against any and all losses, liabilities, claims and damages arising out of or otherwise in respect of Purchaser’s failure to comply with any of the covenants in this Section 8.04 (including Purchaser’s and
Manager’s inability or other failure to meet their responsibilities specifically set forth in Section 8.04(f) above but not including any failure to comply with Section 4204 of ERISA for any reason other than the obligations specifically
assumed by Purchaser in Section 8.04(f) following the first sentence of such Section). 
  
 (h) Notwithstanding anything to the contrary contained in this Agreement which purports to limit the remedies available upon a breach of obligations under this Agreement, the parties to this Agreement agree and
acknowledge that the obligations under this Section 8.04 shall be specifically enforceable and neither party shall be required to demonstrate immediate or irreparable harm to the other by reason of any breach or threatened breach of this Section
8.04. 
  
 SECTION 8.05 Survival. The provisions of this
Article 8 shall survive the Closing. 
  

 20 

 ARTICLE 9 
  
 CLOSING PAYMENTS AND APPORTIONMENTS 
  
 SECTION 9.01 Payments and Apportionments. The following matters and items shall be apportioned between the parties hereto, or otherwise reflected
as credits or adjustments to the Purchase Price, as of 12:01 a.m. on the Closing Date (the “Cut-Off Time”). Credits in favor of Purchaser shall be deducted from the balance of the Purchase Price payable at the Closing, and
credits in favor of the Seller shall be added to the balance of the Purchase Price payable at the Closing. 
  
 (a) Hotel’s Accounts; Cash in Till. Seller shall receive a credit for all funds held in any accounts or reserves (including, without
limitation, reserves for working capital and furniture, fixtures, and equipment) held by or on behalf of the Hotel as of the Cut-Off Time. All cash on hand, including till money and house banks, shall be counted by representatives of Seller and
Purchaser at the Cut-Off Time and may be removed and retained by Seller (except that, at Purchaser’s request, all till money and house banks shall be transferred to Purchaser to the extent Seller receives a credit therefor). 
  
 (b) Income; Accounts Receivable; Accounts Payable. 
  
 (i) Except as provided below, all amounts of income earned and accrued as
of the Cut-Off Time shall belong to Seller, and all amounts of income earned and accrued after the Cut-Off Time shall belong to Purchaser. 
  
 (ii) All vending machine income, and telephone, washroom and checkroom income, shall be counted as of the Cut-Off Time, and Seller shall receive such
income until the Cut-Off Time. 
  
 (iii) Purchaser and Seller
shall each be credited one half of all room revenues related to accommodations for the evening prior to the Cut-Off Time. In connection with the sale of the Property, Purchaser shall assume any obligations to provide hotel accommodations and
services pursuant to confirmed reservations made for periods subsequent to the Closing Date, disclosed to Purchaser in writing and made in accordance with, and as permitted by, the terms of this Agreement. Seller shall provide Purchaser with reports
of reservations made at the Hotel up to the Closing Date. All deposits paid in advance, and relative to rooms reserved or services to be provided for the period after the Closing Date, shall be credited to Purchaser. 
  
 (iv) Purchaser shall purchase all accounts receivable of the Hotel which
have remained outstanding for a period less than or equal to sixty (60) days (including the guest ledger, the city ledger and room charges for the night commencing prior to the Closing Date) (the “Acquired Accounts
Receivable”), and Purchaser shall pay Seller therefor (or Seller shall receive a credit therefor) in an amount equal to all such Acquired Accounts Receivable, less any credit card and travel agent fees and commissions attributable to
such Acquired Accounts Receivable. All such amounts shall be determined as of the Cut-Off Time. Purchaser may retain for its own accounts any funds received in payment of such Acquired Accounts Receivable, one 

  

 21 

 
half of room charges for the night commencing prior to the Closing Date or any other accounts receivable generated by Purchaser’s operation of the Hotel
after the Closing (all such accounts being collectively referred to herein as “Purchaser’s Accounts Receivable”). Purchaser shall use its commercially reasonable efforts to collect any accounts receivable outstanding as
of the Closing Date for a period in excess of sixty (60) days (the “Retained Accounts Receivable”) and shall pay on a monthly basis to Seller any such Retained Accounts Receivable so collected minus a five percent (5%)
collection fee to be retained by Purchaser. Any Retained Accounts Receivable that remain uncollected by Purchaser for a period in excess of one hundred twenty (120) days after the Closing Date shall automatically revert to Seller for collection by
Seller and Purchaser shall have no further rights or obligations with respect to such Retained Accounts Receivable. 
  
 (v) At Closing, Purchaser shall expressly assume all of the payables and trade payables (accrued or otherwise) relating to the operation of the Hotel,
including, without limitation, credit card and travel agent fees and commissions relating to Hotel guests in occupancy as of the Cut-Off Time, and Purchaser shall receive a credit for their portion of such payables which accrue prior to the Cut-Off
Time except in respect of any of the same relating to room charges for the night commencing prior to the Closing Date. Purchaser agrees to timely pay all such payables and trade payables, and shall indemnify the Seller with respect thereto. Without
limiting the generality of the foregoing, any and all bills received from and after the Closing Date which relate to expenses incurred, services performed, and/or any and all amounts allocable to the period prior to Closing, shall be paid by
Purchaser when due. In the event liabilities were not accounted for at Closing, at the time of the Final Closing Statement (as hereinafter defined), the parties will apportion such liabilities so that Purchaser shall pay the amount accruing after
the Cut-Off Time and Seller shall pay the amount accruing on and before the Cut-Off Time except as aforementioned. 
  
 (c) Taxes and Assessments. 
  
 (i) All real estate taxes and special or other assessments in respect of the Property, sales taxes (relating to Hotel operations), hotel occupancy and
entertainment taxes, water and sewer rents, rates and charges and vault charges, other municipal permit fees and all assessments and other costs and expenses payable shall be apportioned as of the Cut-Off Time at the Closing. If the amount of any
such item is unascertainable on the Closing Date, the credit therefor at the Closing shall be based on the most recently available bill therefor or, if unavailable, Seller’s good faith estimate thereof, approved by Purchaser (which approval
shall not be unreasonably withheld or delayed). If the actual amount of any such item, when later determined and prorated for the applicable period, differs from the credit given therefor at the Closing, the parties shall within ten (10) days of the
determination of the actual amount, make the appropriate adjustment, and the party owing sums by reason of such adjustment shall promptly remit such sums to the other party within five (5) business days of the determination of the appropriate
adjustment. 
  
 (ii) If subsequent to the date hereof, the
Property or any part thereof shall become affected by an assessment or assessments, the Seller shall pay all assessments due prior to the Closing Date and Purchaser shall be liable for all assessments due after the Closing Date. 
  

 22 

 (iii) If any proceeding for certiorari or other proceeding to determine the assessed value of the
Property or the real property taxes payable with respect to the Property for any period prior to the Closing Date shall have been commenced prior to the date hereof and be continuing as of the Closing Date, (i) Purchaser shall be entitled to control
the prosecution of such proceeding or proceedings to completion and to settle or compromise any claim therein with respect to the tax year in which the Closing occurs, and (ii) the Seller shall be entitled to continue to control the prosecution of
such proceeding or proceedings to completion and to settle or compromise any claim therein with respect to any tax years prior to the tax year in which the Closing occurs. Each of the parties hereto agrees, at no expense to such party, to cooperate
with the other party and to execute any and all documents reasonably requested by such other party in furtherance of the foregoing. In the event that Purchaser shall receive any refund or credit as a result of such proceedings which relate to the
period prior to the Closing Date, then Purchaser shall remit to the Seller such portion of such refund or credit less a pro-rata share of any costs incurred by Purchaser in obtaining such refund or credit. In the event that Seller receives any
refunds or credits for such periods, it shall be entitled to retain such amounts. Seller acknowledges that Seller and Prolific Property Consultants LLC (“Prolific”) have entered into an engagement letter dated December 2,
2004, pursuant to which Prolific agreed to prepare a property tax valuation analysis for the Property for the 2004 tax year. Pursuant to such engagement letter, Seller agreed to pay a professional fee to Prolific in the amount of $26,000, which fee
is in addition to any related attorneys’ fees and appraisal costs. Seller agrees that Seller is solely responsible for the payment of all such fees and costs and that Purchaser shall have no liability therefor. Seller has not engaged Prolific
to perform any services in connection with the 2005 tax year. 
  
 (d) Utilities; Utilities Deposits. Amounts paid or payable under telephone and telex contracts and contracts for the supply of heat, steam, water, electric power, gas, lighting and other utilities services shall be apportioned at
Closing, with the Seller receiving a credit for the deposits, if any, made by Seller as security under any such public service contract(s), provided such deposit is transferable and remains on deposit for the benefit of Purchaser. Deposits in the
form of letters of credit in Seller’s name, if any, shall be released to the Seller upon Closing as provided in such letters of credit. Where possible, cutoff readings will be secured for all utilities as of the Cut-Off Time. To the extent they
are not available, the cost of such utilities shall be apportioned between the parties as of the Cut-Off Time on the basis of the most recent actual (not estimated) bill for such service. Seller shall obtain and provide the necessary City of Chicago
water certification as a condition of the Closing. Purchaser shall be responsible for causing such utilities and services to be changed to its name, and shall be liable for and shall pay all utility bills for services rendered after the Cut-Off
Time. 
  
 (e) Pre-Paid Fees and Expenses. All pre-paid fees
and expenses shall be apportioned at the Closing and Seller shall receive a credit therefor. 
  
 (f) Service Contracts and Equipment Leases. All amounts paid or payable under any Service Contracts or Equipment Leases shall be apportioned at the Closing. If any security deposit has been made in respect of
Service Contracts or Equipment Leases, the Seller shall receive a credit therefor at the Closing provided such deposit is transferable and remains on deposit for the benefit of Purchaser. 
  

 23 

 (g) Food and Beverage Inventory. Seller shall receive a credit at Closing for the amount of all
unopened inventory of food and beverage. For purposes of this Section 9.1(g), an individual container shall not be considered opened if the container itself is not opened but the crate, case, box or pallet including such container and other similar
containers shall have been opened. 
  
 (h) Rents Under
Leases. 
  
 (i) Subject to the terms of this Section 9.01,
all collected rents and other payments from tenants under Leases shall be prorated between Purchaser and Seller as of the Cut-Off Time. Seller shall be entitled to all rents (including any percentage rent, additional rent and any accrued tax,
insurance and operating expense reimbursements and escalations), charges, and other revenue of any kind under the Leases affecting the Property, attributable to any period prior to, but not including, the date of Closing. Rents or other
reimbursements due landlord under the Leases not collected as of Closing shall be prorated at the time of Closing, but Purchaser shall make a good faith effort to collect the same on Seller’s behalf and tender the same to Seller upon receipt,
less a five percent (5%) collection fee (which obligation shall survive Closing). All rents, escalations and other reimbursements due landlord under the Leases collected by Purchaser after the Closing Date shall first be applied to all amounts due
under the Leases at the time of Closing (i.e., sums due to Seller as of Cut-Off Time). 
  
 (ii) The amount of all security deposits (if any) of tenants under the Leases held by Seller and not previously applied in accordance with the terms of the Leases, shall be credited at Closing to the account of
Purchaser. 
  
 (i) Other Apportionments. The parties shall
apportion such other items as are provided for in this Agreement or as are normally prorated and adjusted in the sale of a hotel. 
  
 (j) Closing Statements. The parties hereto authorize each other’s agents and employees to enter the Hotel, during normal business hours and
otherwise under reasonable circumstances, upon two (2) business days’ prior written notice, both before and after the Closing Date (for a period of up to ninety (90) days after the Closing Date, for the purpose of making (except as otherwise
provided herein at such party’s sole expense) such inventories, examinations and audits of the Hotel and the Hotel books and records as they reasonable deem necessary in order to make the adjustments and prorations required under Article 9.
Based upon preliminary examinations and audits, at or before the Closing, Seller and Purchaser and/or their respective agents or designees will jointly prepare a preliminary closing statement in respect of the Property reasonably satisfactory to
Seller and Purchaser in form and substance (the “Preliminary Closing Statement”) which shows the adjustments and prorations required under this Article 9. Within ninety (90) days following the Closing Date, Seller and
Purchaser and/or their respective agents or designees will jointly prepare a final closing statement in respect of the Property (the “Final Closing Statement”) setting forth the final determination (and the manner in which
such items shall be determined and paid) of all items which were not determined as of the Cut-Off Time, including, without limitation, dollar-for-dollar adjustments in the price paid by Purchaser for Accounts Receivable described in Section
9.01(b)(iv) if any Acquired Accounts Receivable so purchased remain uncollected as of the end of such 90-day period. The net amount due to Seller or Purchaser, if any, by reason of adjustments to the Preliminary Closing 

  

 24 

 
Statement as shown in the Final Closing Statement, shall be paid in cash or good check by the party obligated therefor within fifteen (15) days following
that party’s receipt of the Final Closing Statement. The adjustments, prorations and determinations agreed to by Seller and Purchaser shall be conclusive and binding on the parties hereto. 
  
 (k) Representatives. Subject to prior notice to the other party,
Purchaser and Seller have the right to have their representatives present (A) before the Closing Date for the purpose of observing the taking of any inventories by the other party (including the counting of house funds), the review of receivables,
or any other matters to be performed pursuant to this Article 9, and (B) after the Closing Date (for a period of up to ninety (90) days) for the purpose of performing any post-Closing adjustments provided for in this Agreement, and such
representatives shall be given reasonable access during normal business hours to the books and records of the Hotel which are relevant to the preparation of the Preliminary Closing Statement or Final Closing Statement, as applicable. Purchaser and
Seller shall each be liable for the charges of their own respective representatives in conducting and supervising such audits and inventories. Purchaser will furnish Seller with copies of any information which is contained in Purchaser’s
accounting computer system and is requested by Seller for a period of up to one hundred eighty (180) days after the Closing Date to allow Seller to make any post-Closing accounting necessary, and Purchaser shall cooperate in causing on-site
personnel to be available to comply with the foregoing without cost to Seller. 
  
 (l) Inability to Agree. In the event that Seller and Purchaser are unable to agree on (A) the Preliminary Closing Statement on or before the Closing Date or (B) the Final Closing Statements within ninety (90)
days following the Closing Date, then, in either such event, the issues relating to the Preliminary Closing Statement or the Final Closing Statement, as the case may be, shall be submitted to an independent certified public accountant reasonably
acceptable to Seller and Purchaser, for final resolution, and Seller and Purchaser agree to be bound by the determination of such accountant. The costs and expenses incurred in connection with the services of such accountant shall be divided equally
between Purchaser and Seller. 
  
 (m) Calculations; Closing
Statements. All prorations shall be made on the basis of the actual number of days in the year and month in which the Closing occurs or in the period of computation. Except as otherwise expressly provided herein, all apportionments and
adjustments shall be made on an accrual basis in accordance with generally accepted accounting principles. 
  
 (n) Inventory of Baggage, etc. The representatives of Seller and Purchaser shall prepare the inventory as of 12:00 noon on the Closing Date (which
inventory shall be binding on all parties thereto) of (A) all luggage, valises and trunks checked or left in the care of the Hotel by guests then or formerly in the Hotel, (B) parcels, laundry, valet packages and other property of guests checked or
left in the care of the Hotel by guests then or formerly in the Hotel (excluding, however, property in Hotel safe deposit boxes), (C) all luggage or other property of guests retained by Seller as security for any unpaid accounts receivable, and (D)
all items contained in the Hotel’s lost and found. Seller shall be responsible for all baggage and other items prior to Closing or that is not on the inventory, and hereby indemnifies and agrees to hold Purchaser harmless from any liability
with respect thereto. Purchaser shall be responsible from and after the Closing Date for all baggage and other items listed in such inventory, and hereby indemnifies and agrees to hold Seller harmless from any liability with respect thereto.

  

 25 

 (o) Safe Deposit Boxes. On the Closing Date, Seller shall request that the Manager deliver to
Purchaser copies of all receipts and agreements in Manager’s possession relating to all safe deposit boxes and complete lists of safe deposit boxes in use at the Hotel, which list shall contain the name and room number of each depositor. Seller
shall be responsible for all claims regarding the contents thereof prior to Closing or that is not on the inventory, and hereby agrees to indemnify and hold Purchaser harmless from any liability with respect thereto. Except as provided above, from
and after the Closing, Seller shall be relieved of any and all responsibility in connection with each said box, and Purchaser shall indemnify Seller and hold it harmless from and against any liability with respect thereto. 
  
 SECTION 9.02 Hotel Records. 
  
 (a) Seller has advised Purchaser and Purchaser hereby agrees, that,
notwithstanding anything to the contrary contained in this Agreement, Seller is not delivering (and shall have no obligation to deliver) to Purchaser (A) certain records which relate to internal matters of Seller (such as income tax returns,
financial statements, loan documents which shall not affect the Property after Closing, corporate and partnership governance, investment advisory services and other professional relationships), (B) the work papers, memoranda, analysis,
correspondence and similar materials prepared by or for Seller in connection with the negotiation and documentation of the transaction contemplated hereby, (C) originals of all bills, invoices and receipts relating to the period prior to Closing
(Purchaser shall have the right to inspect and retain copies of the same) and (D) originals of all checks issued by or on behalf of Seller in payment of such pre-Closing bills and invoices (Purchaser shall have the right to inspect and retain copies
of the same). The items described in clauses (A) and (B) of the immediately preceding sentence shall not be included in the definition of Hotel Records. 
  
 (b) Seller has advised Purchaser that it may be necessary after the Closing for Seller to audit the Hotel Records with respect to the period prior to the
Closing Date. In addition, Seller may require access to the Hotel Records in connection with any tax audit, examination or challenge or similar proceeding. Purchaser agrees (A) to maintain the Hotel Records at the Hotel for a period of two (2) years
after the Closing Date, (B) to grant Seller and the Manager and their representatives access to the relevant Hotel Records after the Closing, at reasonable times upon reasonable prior notice, for such purposes and (C) to cooperate with Seller and
the Manager and their representatives in connection therewith. Seller shall maintain the confidentiality of such information. Accordingly, Seller shall, and shall cause their trustees, directors, officers, partners, members and other personnel and
representatives to, hold in strict confidence, and not disclose to any other party without the prior written consent of Purchaser, any of the information in respect of the Property delivered to Seller by Purchaser or any of its agents,
representatives or employees, provided that, Seller may disclose such confidential information in accordance with a judicial, administrative, regulatory or other government order upon notice to Purchaser. 
  
 SECTION 9.03 Survival. The obligations of the parties under this
Article 9 shall survive the Closing. 
  

 26 

 ARTICLE 10 
  
 CONDEMNATION AND DESTRUCTION; INSURANCE 
  
 SECTION 10.01 Condemnation. If, prior to the Closing Date, all or any portion of the Property is taken by eminent domain (or is the subject of a
pending taking which has not yet been consummated), Seller shall notify Purchaser of such fact promptly after obtaining knowledge thereof and if such taking (i) shall have a material adverse effect upon the present or anticipated use and operation
of the Hotel or the profitability thereof, or (ii) results in the elimination of necessary legal ingress and/or egress from the Property to public roads, Purchaser shall have the right to terminate this Agreement with respect to the Hotel, by giving
notice to the Seller not later than twenty (20) days after receipt of Seller’s notice. If Purchaser elects to terminate this Agreement as aforesaid with respect to the Property, the provisions of Section 2.02(e) shall apply. If Purchaser does
not elect to terminate this Agreement as aforesaid, there shall be no abatement of the Purchase Price and the Seller shall assign to Purchaser (without recourse) at the Closing the rights of such Seller to the awards, if any, for the taking, and
Purchaser shall be entitled to receive and keep all awards for the taking of the Property or such portion thereof. 
  
 SECTION 10.02 Destruction. If, prior to the Closing Date, a material part (as defined in this Section 10.02) of the Property is destroyed or
damaged by fire or other casualty, the Seller shall promptly notify Purchaser of such fact and Purchaser shall have the right to terminate this Agreement by giving notice to Seller not later than twenty (20) days after receipt of Seller’s
notice. For the purposes hereof, a “material part” of the Property shall mean a part of any Property for which the cost to repair the damage thereto or destruction thereof shall exceed Seven Million Dollars ($7,000,000). If Purchaser
elects to terminate this Agreement as aforesaid, the provisions of Section 2.02(e) shall apply. If Purchaser does not elect to terminate this Agreement as aforesaid, or if there is damage to or destruction of an “immaterial part” (i.e.,
anything other than a material part) of Property by fire or other casualty, there shall be no abatement of the Purchase Price and the Seller shall assign to Purchaser (without recourse) at the Closing the rights of Seller to the proceeds, if any,
under Seller’s insurance policies covering the Property with respect to such damage or destruction, the Seller shall credit Purchaser with the amount of any deductible under any of Seller’s applicable insurance policies, the Seller shall
cooperate with Purchaser in filing and otherwise pursuing any relevant claim under such insurance policies and Purchaser shall be entitled to receive and keep any monies received from such insurance policies except (i) to the extent Seller has
applied the proceeds to restore the Property or has expended sums to restore the Property for which it shall be entitled to receive reimbursement from the proceeds, and (ii) to the extent of the proceeds of any business interruption insurance
applicable to the period prior to Closing. 
  
 SECTION 10.03
Insurance. Purchaser acknowledges that the Property is currently insured under Manager’s blanket policies of insurance. 
  

 27 

 ARTICLE 11 
  
 BROKER 
  
 SECTION 11.01 Broker. 
  
 (a) Seller represents and warrants to Purchaser that it has not hired, retained or dealt with any broker, finder, consultant or intermediary in connection
with the negotiation, execution or delivery of this Agreement or the transaction contemplated hereby, other than Jones Lang LaSalle Hotels (“JLLH”). Seller will indemnify Purchaser and its affiliates, officers, trustees,
directors, employees, shareholders and agents with respect to any claim that the aforesaid representation and warranty is untrue. In the event the Closing occurs, Seller shall pay a commission to JLLH pursuant to a separate agreement between Seller
and JLLH. 
  
 (b) Purchaser represents and warrants to Seller that
it has not hired, retained or dealt with any broker, finder, consultant or intermediary in connection with the negotiation, execution or delivery of this Agreement or the transactions contemplated hereby. Purchaser will indemnify Seller and
Seller’s affiliates, officers, trustees, directors, partners, members, employees, shareholders and agents with respect to any claim that the aforesaid representation and warranty is untrue. 
  
 (c) The provisions of this Article 11 shall survive the Closing and any
termination of this Agreement. 
  
 ARTICLE 12 
  
 REMEDIES 
  
 SECTION 12.01 Remedies. 
  
 (a) Notwithstanding anything to the contrary contained in this Agreement, if Seller fails to perform in accordance with the terms of this Agreement, then
Purchaser may, as its sole and exclusive remedy hereunder and at Purchaser’s option, either (a) terminate this Agreement, in which event the Deposit shall be returned to Purchaser together with an amount equal to Purchaser’s actual, out of
pocket expenses incurred in respect of its negotiations with Seller and investigation of the Property, not to exceed $200,000, this Agreement shall be null and void, and neither party shall have any rights or obligations under this Agreement, except
under those provisions that expressly survive termination of this Agreement, or (b) provided an action is filed within thirty (30) days after the scheduled Closing Date, seek specific performance of this Agreement, but not any damages (whether
actual, direct, indirect, consequential, compensatory, punitive or otherwise). Purchaser’s failure to seek specific performance as aforesaid shall constitute its election to proceed under clause (a) above. If specific performance is not
available to Purchaser due to an intentional act of Seller (i.e., Seller has sold the Property to another party), then in such case, in addition to terminating this Agreement, Purchaser may seek actual damages incurred by Purchaser and directly
caused by Seller’s intentional default, the measure of which shall be the difference between the Purchase Price and the gross purchase price received by Seller in connection with the transfer of the Property. In no event shall Seller be liable
to Purchaser for consequential damages, and Purchaser hereby waives all claims for consequential damages. 
  

 28 

 (b) NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IF PURCHASER DOES NOT ELECT
TO TERMINATE THIS AGREEMENT PURSUANT AN EXPLICIT RIGHT AVAILABLE TO PURCHASER HEREIN, BUT PURCHASER FAILS TO CONSUMMATE THE TRANSACTION ON THE SCHEDULED CLOSING DATE (AS DEFINED IN SECTION 2.01), THE DEPOSIT SHALL BE FORFEITED TO SELLER AS
LIQUIDATED DAMAGES AS SELLER’S SOLE AND EXCLUSIVE REMEDY FOR SUCH FAILURE, AT WHICH TIME THIS AGREEMENT SHALL BE NULL AND VOID AND NEITHER PARTY SHALL HAVE ANY RIGHTS OR OBLIGATIONS UNDER THIS AGREEMENT EXCEPT UNDER THOSE PROVISIONS WHICH
EXPRESSLY SURVIVE TERMINATION OF THIS AGREEMENT. SELLER ACKNOWLEDGES AND AGREES THAT (1) THE AMOUNT OF THE DEPOSIT IS A REASONABLE ESTIMATE OF AND BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES THAT WOULD BE SUFFERED AND COSTS INCURRED BY SELLER AS
A RESULT OF HAVING WITHDRAWN THE PROPERTY FROM SALE AND THE FAILURE OF CLOSING TO HAVE OCCURRED DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT; (2) THE ACTUAL DAMAGES SUFFERED AND COSTS INCURRED BY SELLER AS A RESULT OF SUCH WITHDRAWAL AND
FAILURE TO CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT WOULD BE EXTREMELY DIFFICULT AND IMPRACTICAL TO DETERMINE; (3) PURCHASER SEEKS TO LIMIT ITS LIABILITY UNDER THIS AGREEMENT TO THE AMOUNT OF THE DEPOSIT IN THE EVENT THIS AGREEMENT
IS TERMINATED AND THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT DOES NOT CLOSE DUE TO A DEFAULT OF PURCHASER UNDER THIS AGREEMENT; AND (4) THE AMOUNT OF THE DEPOSIT SHALL BE AND CONSTITUTE REASONABLE AND VALID LIQUIDATED DAMAGES. 
  

							
	 Initials of Seller:
	  	  

	  	Initials of Purchaser:	  	  

  
 (c) The provisions of
this Article 12 shall survive the Closing or termination of this Agreement for any cause. 
  
 ARTICLE 13 
  
 NOTICES 

 
 SECTION 13.01 Notices. All notices, elections and other
communications hereunder shall be in writing and shall be deemed to have been duly given if personally delivered with proof of delivery thereof to the individual or individuals specified below (any notice or communications so delivered being deemed
to have been given, served and received at the time delivered), or sent by Federal Express or similar overnight or next business day courier (any notice or communication so delivered being deemed to have been given, served and received on the next
business day) or by United States registered or certified mail, postage prepaid, return receipt requested (any notice or communication so sent being deemed to have been given, served and received when delivered), addressed to the respective parties
as follows: 
  

 29 

 if to Seller: 
  

Buckingham Fountain Hotel LLC 
 c/o The
Swig Investment Company 
 220 Montgomery Street, 20th Floor 
 San Francisco, CA 94104 
 Attention: Kennard P. Perry and Jeanne R. Myerson 
  
 with a copy to: 
  
 Farella Braun + Martel LLP 
 Russ Building,
30th Floor 
 235 Montgomery Street 
 San Francisco, CA 94104 
 Attention: Gregory B. Shean 
  
 if
to Purchaser: 
  
 c/o Strategic Hotel Capital, Inc. 

77 West Wacker Drive, Suite 4600 
 Chicago,
IL 60601 Attention: General Counsel 
  
 with a copy to:

  
 Perkins Coie LLP 
 131 South Dearborn Street, Suite 1700 
 Chicago, IL 60603 
 Attention: Phillip Gordon 
  
 or to such other address or party as either party may have furnished to the other in writing in accordance herewith, except that notices of
change of address or addresses shall only be effective upon receipt. 
  
 ARTICLE 14 
  
 MISCELLANEOUS PROVISIONS 
  
 SECTION 14.01 Acceptance of the Property. The acceptance of the grant
deed by Purchaser shall be deemed an acknowledgment by Purchaser that Seller has fully complied with all of its obligations hereunder and are discharged therefrom and shall have no further obligation or liability with respect to any of the
agreements made by Seller in this Agreement, except for those provisions of this Agreement which expressly provide that any obligation of Seller shall survive the Closing. 
  
 SECTION 14.02 Press Releases. Purchaser agrees that prior to Closing it will not issue any press release,
advertisement or other public communication with respect to this Agreement or the transactions contemplated hereby without the prior written consent of Seller, which consent may be granted or withheld at Seller’s sole discretion. If Purchaser
is required by 

  

 30 

 
law to issue such a press release or other public communication, at least two (2) business days prior to the issuance of the same Purchaser shall deliver a
copy of the proposed press release or other public communication to Seller for its review and approval, which approval shall not be unreasonably withheld or delayed. 
  
 SECTION 14.03 Assignment. Purchaser may not assign its rights and obligations hereunder, in whole or in part, without
the prior written consent of Seller and any assignment without such prior written consent shall be deemed null and void, except that Purchaser may assign this Agreement to its Affiliate, provided that (x) prior to such assignment, Manager approves
in writing of such Affiliate as the purchaser of the Hotel pursuant to its approval rights under the Management Agreement, and (ii) Purchaser remains primarily liable for all obligations of Purchaser hereunder assigned to such Affiliate by
Purchaser. As used herein, “Affiliate” means with respect to a party or other entity (i) any entity controlling, controlled by or under common control with such party or other entity or an owner of such party or other entity; (ii) any
entity resulting from the merger, consolidation or reorganization of such party or other entity or an owner of such party or other entity into or with any other entity; or (iii) any entity acquiring all or substantially all of the ownership of such
party or other entity or all or substantially all of such party’s or other entity’s assets. This Agreement shall bind and inure to the benefit of the legal representatives, successors and permitted assigns of the parties hereto.

  
 SECTION 14.04 Binding Effect. This Agreement does not
constitute an offer to sell and shall not bind Seller or Purchaser unless and until both parties shall have executed and delivered to each other an executed original counterpart hereof. 
  
 SECTION 14.05 Partial Invalidity. If any term or provision of this Agreement or the application thereof to any
persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable
shall not be affected thereby and each remaining term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 
  
 SECTION 14.06 Recordation of Agreement. Neither Seller nor Purchaser may record this Agreement. The provisions of this Section 14.06 shall survive
the closing or termination of this Agreement for any cause. 
  
 SECTION 14.07 Entire Agreement. This Agreement, together with the exhibits hereto and the Closing Documents, constitutes the entire agreement of the parties regarding the subject matter of this Agreement and all prior or
contemporaneous agreements, understandings, representations and statements, oral or written, are hereby merged herein. 
  
 SECTION 14.08 Enforcement. In the event of any litigation or binding arbitration between the parties, whether based on contract, tort or other
cause of action or involving bankruptcy or similar proceedings, in any way related to this Agreement or the Property, the non-prevailing party shall pay to the prevailing party all reasonable attorneys’ fees and costs and expenses of any type,
without restriction by statute, court rule or otherwise, incurred by the prevailing party in connection with any action or proceeding (including arbitration proceedings, any appeals and the enforcement of any judgment or award), whether or 

  

 31 

 
not the dispute is litigated or prosecuted to final judgment. The “prevailing party” shall be determined based upon an assessment of which
party’s major arguments or positions taken in the action or proceeding could fairly be said to have prevailed (whether by compromise, settlement, abandonment by the other party of its claim or defense, final decision, after any appeals, or
otherwise) over the other party’s major arguments or positions on major disputed issues. Any fees and costs incurred in enforcing a judgment shall be recoverable separately from any other amount included in the judgment and shall survive and
not be merged in the judgment. The provisions of this Section 14.08 shall survive the Closing. 
  
 SECTION 14.09 Amendment. This Agreement may not be modified, amended, altered or supplemented except by written agreement executed and delivered by Purchaser and Seller. 
  
 SECTION 14.10 Governing Law. This Agreement is entered into and shall
be governed by and construed in accordance with the laws of the State of Illinois (without giving effect to its choice of law principles). The parties agree that all suits or actions of any kind brought to interpret or enforce the terms of, or
otherwise arising out of or relating to, this Agreement shall be filed and litigated solely in the state or federal courts in Chicago, Illinois. Each party hereby consents to the personal and subject matter jurisdiction of said courts. 

 
 SECTION 14.11 Exhibits. All Exhibits referred to in this Agreement
are incorporated herein and made a part hereof as fully as if set forth herein. 
  
 SECTION 14.12 No Waiver. The failure of any party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed as a waiver of any of such provisions, or the right of any
party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to be a waiver of any other or subsequent breach. 
  
 SECTION 14.13 Headings; Article, Section and Exhibit References. The Article and Section headings used herein are for
reference purposes only and do not control or affect the meaning or interpretation of any term or provision hereof. All references in this Agreement to Articles, Sections and Exhibits are to the Articles and Sections hereof and the Exhibits annexed
hereto. 
  
 SECTION 14.14 No Other Parties. The
representations, warranties and agreements of the parties contained herein are intended solely for the benefit of the parties to whom such representation, warranties or agreements are made (and their permitted assigns), shall confer no rights
hereunder, whether legal or equitable, in any other party, and no other party shall be entitled to rely thereon. 
  
 SECTION 14.15 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original, and all of which
taken together shall constitute but one agreement. 
  
 SECTION
14.16 Waiver of Trial by Jury. SELLER AND PURCHASER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER AGAINST THE OTHER OR ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT. 

 

 32 

 SECTION 14.17 Time. Time is of the essence of this Agreement. In the computation of any period of
time provided for in this Agreement or by law, the day of the act or event from which the period of time runs shall be excluded, and the last day of such period shall be included, unless it is a Saturday, Sunday, or legal holiday, in which case the
period shall be deemed to run until the end of the next day which is not a Saturday, Sunday, or legal holiday. 
  
 SECTION 14.18 Limitation on Liability. Notwithstanding anything to the contrary contained herein, if Closing shall have occurred, the aggregate
liability of Seller arising pursuant to or in connection with the representations, warranties, indemnifications, covenants or other obligations (whether express or implied) of Seller under this Agreement (or any document executed or delivered in
connection herewith) (collectively, the “Contract Liabilities”) shall not exceed Two Million One Hundred Forty-Two Thousand Nine Hundred Dollars ($2,142,900). No constituent partner or member in Seller, nor any person, trust
or entity that becomes a constituent partner or member in Seller, nor any partner, member, manager, shareholder, director, officer, employee, beneficiary, trustee or agent of any of the foregoing, shall have any personal liability, directly or
indirectly, under or in connection with this Agreement or any agreement made or entered into under or pursuant to the provisions of this Agreement, or any amendment to any of the foregoing made at any time or times, heretofore or hereafter, and
Purchaser and its successors and assigns and, without limitation, all other persons and entities, shall look solely to the assets of Seller for the payment of any claim or for any performance, and Purchaser, on behalf of itself and its successors
and assigns, hereby waives any and all such personal liability. Except for the rights and remedies of Purchaser expressly set forth above in Section 12.01(a), it is expressly understood and agreed that notwithstanding any applicable law to the
contrary, Seller shall not have any liability for any claim, cause of action or other liability arising out of or relating to this Agreement or the Property whether based on contract, common law, statute, equity or otherwise (subject, however, to
Purchaser’s right to recover Purchaser’s reasonable attorneys’ fees and court costs pursuant to Section 14.08). 
  
 SECTION 14.19 Confidentiality. Purchaser shall not disclose, and shall ensure that Purchaser’s directors, officers, employees, affiliates,
partners, members, brokers, agents, or other representatives, including, without limitation, attorneys, accountants, contractors, consultants, engineers and financial advisors (collectively, “Purchaser’s
Representatives”) do not disclose, the existence or terms of this Agreement to any person or entity other than Purchaser’s Representatives on a “need to know” basis. Before any such disclosure to Purchaser’s
Representatives, Purchaser shall notify such Purchaser’s Representatives of the confidential nature of the existence and terms of this Agreement and prohibit further disclosure of same by such Purchaser’s Representatives. 
  
 SECTION 14.20 Exchange Transaction. Purchaser agrees upon the request
of Seller to cooperate with Seller in closing all or part of this transaction as an exchange pursuant to Internal Revenue Code Section 1031, provided that: 
  
 (a) Purchaser shall incur no additional expense or liability in connection therewith and shall not be required to hold title to any property other than
the Property; and 
  

 33 

 (b) Seller shall indemnify, protect, defend and hold Purchaser harmless from any claims, demands, causes
of action, judgments, expenses, costs and attorneys’ fees which result from Purchaser’s compliance with this paragraph, which obligation shall survive the Closing or termination of this Agreement. 
  
 ARTICLE 15 
  
 INDEMNIFICATION 
  
 SECTION 15.01 Agreement to Indemnify. Subject to any express limitations or other provisions of this Agreement to the contrary: 
  
 (a) Seller shall hold harmless, indemnify and defend Purchaser against any
and all obligations, claims, losses, damages, liabilities and expenses (including reasonable attorney’s fees and disbursements) (“Claims”) arising out of (i) the injury to or death of any person occurring on or about or in
connection with the Property or any portion thereof at any time or times prior to the Closing; (ii) a breach by Seller of any of its representations or warranties hereunder or in the Closing Documents; and (iii) any breach by Seller of any covenant
or obligation of Seller set forth in this Agreement or any of the Closing Documents. 
  
 (b) Purchaser shall hold harmless, indemnify and defend Seller against any and all Claims arising out of (i) the ownership, tenancy and operation of the Property after Closing, (ii) injury to or death of any person
occurring on or about the Property or any portion thereof at any time or times after the Closing, (iii) a breach by Purchaser of any of its representations or warranties hereunder, and (iv) any breach by Purchaser of any covenant or obligation of
Purchaser set forth in this Agreement or any of the Closing Documents. 
  
 SECTION 15.02 Indemnification Regarding Assumed Obligations. Whenever it is provided in this Agreement that an obligation of one party will be assumed by the other party after the Closing, the party so assuming such liability also
shall be deemed to have agreed to indemnify, defend and hold harmless the other party and its successors and assigns from all claims, losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and disbursements)
arising from such failure of the assuming party to perform the obligation so assumed after Closing. 
  
 SECTION 15.03 Notice and Cooperation on Indemnification. 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 copies of such 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 any such claims. 
  
 SECTION 15.04 Survival of Indemnities. The indemnities in this Article 15 shall survive the Closing or termination of this Agreement for a period not to exceed six (6) months. 
  
 [Signatures Begin Next Page] 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.

  

					
	SELLER:
	
	 BUCKINGHAM FOUNTAIN HOTEL LLC,

	 a Delaware limited liability company

		
	 By:
	 	 The Swig Company,

	 	 	 a California corporation,

	 	 	 Its Manager

			
	 	 	 By:
	 	 /s/ Jeanne R. Myerson

	 	 	 	 	 Jeanne R. Myerson

	 	 	 	 	 President

  

			
	PURCHASER:
	
	 SHC COLUMBUS DRIVE, LLC,

	 a Delaware limited liability company

		
	 By:
	 	 /s/ Laurence S. Geller

	 	 	 Laurence S. Geller

	 	 	 President and Chief Executive Officer

  

 35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]