Document:

exv10w27

Exhibit 10.27

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this “Amendment”) is made and
entered into as of the 10th_ day of September, 2010, by and between 615 2ND AVENUE SOUTH —
MINNEAPOLIS LLC, a Delaware limited liability company (“Seller”), and GATOR OWNER LLC, a
Delaware limited liability company (“Purchaser”).

R E C I T A L S:

     A. Seller and Purchaser entered into that certain Purchase and Sale Agreement, dated as of May
27, 2010, as amended by that certain letter agreement dated as of June 29, 2010, as further amended
by that certain letter agreement dated as of July 28, 2010, as further amended by that certain
letter agreement dated as of August 17, 2010, as further amended by that certain letter agreement
dated as of August 24, 2010, and as further amended by that certain letter agreement dated as of
August 27, 2010 (as amended from time to time, the “Purchase Agreement”), with respect to
certain real property located in Minneapolis, Minnesota and commonly known as The Grand Hotel, as
more particularly described in the Purchase Agreement (the “Property”). Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in the Purchase
Agreement.

     B. Seller and Purchaser desire to amend the Purchase Agreement as hereinafter provided.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to amend the Purchase Agreement as follows:

A G R E E M E N T:

     1. Purchase Price. Section 1.1.3 of the Purchase Agreement is hereby amended and
restated as follows:

“1.1.3 Purchase Price: $33,000,000 plus the sum of the
Closing Costs described in Section 1.2, subject to any adjustments
and prorations provided for herein.”

     2. Closing Date. The Closing shall occur on the date that is twenty (20) calendar
days after satisfaction of both the Estoppel Condition (as amended hereby) and the Lease Amendments
Condition (the “Closing Date”).

     3. Due Diligence. Purchaser acknowledges that (i) Purchaser has received and reviewed
all of the Property Information and Additional Property Information, and, from and after the date
hereof, Seller shall have no obligations under Sections 4.1 and 4.2 of the Purchase Agreement to
deliver to Purchaser any documents, books, records or other information related to the Property,
except that Seller shall continue to deliver to Purchaser updated STR Reports and financial
statements on a monthly basis promptly upon Seller’s receipt thereof; and (ii) Purchaser

 

 

has completed to Purchaser’s satisfaction its physical due diligence of the Property pursuant
to Section 4.3 of the Purchase Agreement. Accordingly, Purchaser acknowledges that the
Physical/Financial Review Condition set forth in Section 4.5.1(1) of the Purchase Agreement has
been satisfied.

     4. Deposit. Section 3.1.2 of the Purchase Agreement is hereby deleted in its
entirety. Notwithstanding anything in the Purchase Agreement to the contrary, the following
provisions shall apply with respect to the Deposit:

          (a) From and after the date hereof, the Initial Deposit shall be non-refundable to Purchaser
and shall be either (i) applied to the Purchase Price at Closing or (ii) delivered to Seller in the
event of any termination of the Purchase Agreement, except in the event of a termination of the
Purchase Agreement due to:

               (1) a default by Seller that is not cured pursuant to the applicable notice and cure period
under Section 10.2 of the Purchase Agreement;

               (2) a casualty in accordance with the terms of Section 6.1 of the Purchase Agreement;

               (3) a condemnation in accordance with the terms of Section 6.2 of the Purchase Agreement;

               (4) a Material Adverse Change in accordance with the terms of Section 7.2.4 of the Purchase
Agreement;

               (5) the failure of the Title Company to issue the Title Policy in accordance with Section 5.4
of the Purchase Agreement;

               (6) a New Exception and a New Objection which is neither cured nor insured over in accordance
with Section 5(b) below; or

               (7) the failure of one or more of the Closing Conditions to be satisfied in accordance with
the terms of Section 6(a) below or the Purchase Agreement, as applicable,

and, in the event of any such termination, the Deposit shall be returned to Purchaser (termination
on account of any of the events described in items (1), (2), (3), (4), (5), (6) and (7) above is
referred to as a “Deposit Refundability Termination”).

          (b) No later than two (2) Business Days after the date on which both the Estoppel Condition
(as amended hereby) and the Lease Amendments Condition have been satisfied, Purchaser shall deposit
with Escrow Agent the Additional Deposit, which Additional Deposit (together with the Initial
Deposit pursuant to subsection (a) above) shall be non-refundable to Purchaser and shall be either
(i) applied to the Purchase Price at Closing or (ii) delivered to Seller in the event of any
termination of the Purchase Agreement, except in the event of a Deposit Refundability Termination,
and, in the event of any such Deposit Refundability Termination, the Deposit (including the
Additional Deposit) shall be returned to Purchaser.

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          (c) In the event that Closing shall occur, the Deposit shall be applied to the Purchase Price
at Closing. In the event of a termination of the Purchase Agreement by either Seller or Purchaser
in accordance with the Purchase Agreement as amended hereby, Escrow Agent is authorized and is
hereby directed to deliver the Deposit to the party hereto entitled to same pursuant to the terms
hereof on or before the second (2nd) Business Day following written demand from such
party entitled thereto, such written demand to be sent to Escrow Agent and the other party hereto
in accordance with the notice provisions of Section 12.10 of the Purchase Agreement. In the event
that Escrow Agent incurs any attorneys’ fees and costs in connection with a dispute between
Purchaser and Seller hereunder, such costs shall be paid by the non-prevailing party in such
dispute.

     5. Title.

          (a) Purchaser agrees that it has reviewed and approved the state of title and survey with
respect to the Property. Attached hereto as Exhibit A is the pro forma title policy (the
“Pro Forma”) which Purchaser has obtained from the Title Company and approved. The Title
Condition set forth in Section 4.5.1(3) of the Purchase Agreement is hereby satisfied. All of the
exceptions shown on the Pro Forma shall be deemed to be Permitted Exceptions.

          (b) If at any time after the date hereof and prior to Closing there shall arise any material
exception to title that was not identified in the Title Commitment or on the Pro Forma, which
exception is not created by, under or through Purchaser and is not otherwise a Permitted Exception
(a “New Exception”), Purchaser may, within three (3) Business Days after it first obtains
knowledge of the New Exception, notify Seller in writing of its disapproval of any such matter
(“New Objection”). If Purchaser fails to notify Seller of a New Objection within said
three (3) Business Day period, the New Exception in question shall be deemed unconditionally
approved and shall constitute a Permitted Exception. If Purchaser timely makes a New Objection,
Seller shall have the right to eliminate, or cause the Title Company to insure over (subject to
Purchaser’s approval thereof, not to be unreasonably withheld, conditioned or delayed), or
otherwise cure such New Objection (and, if necessary, at Seller’s election the Closing shall be
extended as may be reasonably necessary to allow Seller the opportunity to do so). Seller shall
have no obligation to cure any New Objection, except that Seller shall eliminate, cause the Title
Company to insure over (subject to Purchaser’s approval thereof, not to be unreasonably withheld,
conditioned or delayed), or otherwise cure any New Objection with respect to a lien of an
ascertainable amount that can be cured by payment of a sum not to exceed $200,000. If Seller
fails, prior to Closing (as it may be extended as set forth above), to eliminate or cause the Title
Company to insure over or otherwise cure any New Objection, Purchaser shall, as its sole remedy,
either:

               (i) waive such New Objection, in which event the exception previously objected to shall be
deemed unconditionally approved and shall constitute a Permitted Exception; or

               (ii) terminate the Purchase Agreement and receive a return of the Deposit.

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     6. Closing Conditions.

          (a) Subject to Seller’s right to extend the Closing Date as set forth in Section 6(c) below,
in the event that one or more of the following Closing Conditions has not been satisfied by the
Closing Date, Purchaser shall have the right, upon written notice to Seller, to terminate the
Purchase Agreement and thereupon to receive an immediate refund of the Deposit, and neither party
shall thereafter have any further liability or obligation under the Purchase Agreement except for
such liabilities and obligations that are expressly stated therein to survive termination of the
Purchase Agreement. For purposes hereof, the “Closing Conditions” shall mean the
conditions set forth in Sections 5.4, 7.2.1 through 7.2.4, inclusive, and 7.3 of the Purchase
Agreement and the following:

               (i) Estoppels. Seller shall deliver to Purchaser Estoppels, in the forms attached as
Exhibits J-1 and J-2 to the Purchase Agreement (subject to deviations from such forms which do not
materially adversely alter the information set forth in the Estoppel), executed by Life Time
Fitness, Inc. (or its affiliates, as applicable) (“Tenant”), with respect to (A) that
certain Lease of Athletic Space, dated May 17, 1999 (the “Athletic Space Lease”), and (B)
that certain Lease of Restaurant Space, dated May 17, 1999 (the “Restaurant Space Lease”)
(same being referred to herein as the “Estoppel Condition”, which Estoppel Condition shall
supersede and replace in its entirety the Estoppel Condition set forth in Section 4.5.1(4) of the
Purchase Agreement. In addition, this Section 6(a)(i) shall be deemed to amend and restate Section
7.2.5 of the Purchase Agreement in its entirety.

               (ii) Lease Amendments. Seller shall enter into with Tenant, and deliver to Purchaser
fully-executed copies of, amendments to the Athletic Space Lease and Restaurant Space Lease, each
in the forms of amendments to the Athletic Space Lease and Restaurant Space Lease attached hereto
as Exhibits B-1 and B-2, respectively (the same being referred to herein as the
“Lease Amendments Condition”).

          (b) There are no conditions to Purchaser’s obligation to consummate Closing other than the
Closing Conditions. Purchaser specifically acknowledges that the conditions set forth in Section
4.5 of the Purchase Agreement (other than the condition set forth in Section 4.5.1(4) of the
Purchase Agreement, as stated herein) have been satisfied or waived.

          (c) If the Estoppel Condition (as amended hereby) or the Lease Amendments Condition has not
been satisfied by the Closing Date, Seller shall have the right, upon written notice to Purchaser,
to extend the Closing Date for a period up to sixty (60) days, so long as Seller is continuing to
pursue, in good faith and with due diligence, the satisfaction of the Estoppel Condition (as
amended hereby) or the Lease Amendments Condition, as applicable. Upon satisfaction of all of the
Closing Conditions, the parties shall proceed to Closing on the Closing Date. In the event the
Closing Conditions have not been satisfied on or before the end of such sixty (60) day period,
Purchaser shall have the right to elect to (i) waive in writing such unsatisfied Closing Conditions
and proceed to Closing, or (ii) terminate the Purchase Agreement upon notice thereof to Seller, in
which event Purchaser shall receive a refund of the Deposit within two (2) Business Days
thereafter. If Purchaser has not waived in writing any unsatisfied Closing Conditions in
accordance with clause (i) above within ten (10) days after the expiration

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of such sixty (60) day period, Purchaser shall be deemed to have elected to terminate the
Purchase Agreement in accordance with clause (ii) above.

     7. Amendment to Estoppel Provisions. The first clause of Section 4.4 of the Purchase
Agreement (which reads: “Prior to the expiration of the Inspection Period,”) is hereby deleted.

     8. Board Approval Condition. Notwithstanding any of the terms and conditions to the
contrary set forth in the Purchase Agreement, if, within fourteen (14) days after the date hereof,
Purchaser has not received approval by Purchaser’s board of trustees or investment committee of the
transaction contemplated hereby, then Purchaser shall have the right, upon written notice to Seller
prior to the expiration of such fourteen (14) day period, to terminate the Purchase Agreement and
thereupon to receive an immediate refund of the Deposit (anything herein contained to the contrary
notwithstanding), and neither party shall thereafter have any further liability or obligation under
the Purchase Agreement except for such liabilities and obligations that are expressly stated
therein to survive termination of the Purchase Agreement. If Purchaser fails to deliver written
notice of its election to terminate the Purchase Agreement pursuant to the preceding sentence
within such fourteen (14) day period, Purchaser shall be deemed to have waived such condition and
shall have no further right to terminate the Purchase Agreement pursuant to this Section 8.

     9. Termination. Notwithstanding anything in the Purchase Agreement to the contrary,
Purchaser shall not have any right to terminate the Purchase Agreement except as expressly set
forth in this Amendment and in Sections 10.2, 6.1, 6.2 and 7.2.4 (and, Purchaser shall be deemed to
have delivered a Notice of Satisfaction for purposes of Section 7.2.4 of the Purchase Agreement as
of the date hereof) of the Purchase Agreement. Without limiting the generality of the foregoing,
the parties agree that (i) Purchaser shall not have the right to terminate the Purchase Agreement
by delivering a Due Diligence Termination Notice, and (ii) it shall not be required for the
continued effectiveness of the Purchase Agreement that Purchaser deliver a Notice of Satisfaction.

     10. Assumed Service Contracts. The first sentence of Section 6.4 of the Purchase
Agreement is hereby amended to provide that any Contract Notice shall be delivered by Purchaser to
Seller, if at all, no later than five (5) Business Days after the date hereof.

     11. Schedule of Utility Deposits. The last sentence of Section 8.4 of the Purchase
Agreement is hereby amended and restated as follows:

“A schedule of all utility deposits is to be delivered by Seller to
Purchaser no later than five (5) Business Days prior to the Closing
Date.”

     12. Cap; Holdback.

          (a) Section 9.3 of the Purchase Agreement is hereby amended to provide that (i) the amount of
the “Cap” shall be $250,000, and (ii) the “Survival Period” shall be a period of
four (4) months following the Closing Date.

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          (b) Section 9.4.1 of the Purchase Agreement is hereby amended to provide that the amount of
the “Holdback Funds” shall be $250,000.

          (c) The form of Holdback Agreement attached hereto as Exhibit C is hereby inserted as
Exhibit I to the Purchase Agreement.

     13. Wirth. All references in the Purchase Agreement to the “Wirth Indemnified
Parties” are hereby deleted.

     14. Purchase Price Allocation. Pursuant to Section 3.2 of the Purchase Agreement,
Seller and Purchaser hereby agree that the Purchase Price shall be allocated as follows for
federal, state and local tax purposes:

	 	 	 	 	 

	Real Property:
	 	$	31,600,000	 
	Tangible Personal Property:
	 	$	1,400,000	 
	Intangible Personal Property:
	 	$	0	 

     15. Excess Payments. Notwithstanding anything in the Purchase Agreement to the
contrary, at Closing, Purchaser shall not assume Seller’s obligation pursuant to Section 1 of each
Lease Amendment to pay the Excess Payments (as defined in each Lease Amendment) to Tenant. In
accordance with the Lease Amendment, Seller shall pay the Excess Payments to Tenant prior to
Closing.

     16. Effect. Except as expressly set forth herein, all terms and provisions contained
in the Purchase Agreement shall remain in full force and effect and are hereby ratified and
confirmed.

     17. Counterparts. This Amendment may be executed in one or more counterparts, all of
which taken together shall constitute one and the same instrument.

     18. Electronic Copy. An executed facsimile or PDF of this Amendment or any portion
hereof, including the signature page of any party, shall be deemed an original for all purposes.
At the request of any party hereto, the other parties hereto shall confirm facsimile or PDF
transmission by executing duplicate original documents and delivering the same to the requesting
parties.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the undersigned parties have executed this First Amendment to Purchase and
Sale Agreement as of the date first set forth above.

	 	 	 	 	 
	 	PURCHASER:

GATOR OWNER LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Thomas C. Fisher
 	 
	 	 	Name:  	Thomas C. Fisher 	 
	 	 	Title:  	Vice President 	 
	 
	 	SELLER:

615 2nd Avenue South — Minneapolis LLC, a Delaware

limited liability company

 	 
	 	By:  	/s/ Cynthia Tucker
 	 
	 	 	Name:  	Cynthia Tucker 	 
	 	 	Title:  	Senior Vice President 	 
	 

Escrow Agent has executed this Amendment to confirm that Escrow Agent shall hold and disburse the
Deposit pursuant to the provisions of the Purchase Agreement as amended by this Amendment.

	 	 	 	 	 
	ESCROW AGENT:

CHICAGO TITLE INSURANCE COMPANY,

a Delaware limited liability company

 	 
	By:  	/s/ Linda Tyrrell
 	 
	 	Name:  	Linda Tyrrell 	 
	 	Title:  	AVP / Senior Escrow Officer 	 
	 

 

 

EXHIBIT
A

Pro Forma Title Policy

(see attached)

 

 

EXHIBIT
B-1

Form of Amendment to Athletic Space Lease

(see attached)

 

 

EXHIBIT
B-2

Form of Amendment to Restaurant Space Lease

(see attached)

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EXHIBIT
C

Form
of Holdback Agreement

ESCROW AGREEMENT

          THIS ESCROW AGREEMENT (this “Agreement”) is entered into as of                     , 2010 (the
“Effective Date”) among Gator Owner LLC, a Delaware limited liability company (“Buyer”), 615 2nd
Avenue South — Minneapolis LLC, a Delaware limited liability company (“Seller”), and Chicago Title
Insurance Company, as escrow agent (“Escrow Agent”), with respect to Two Hundred Fifty Thousand and
No/100 Dollars ($250,000.00) (together with any and all interest earned thereon, the “Escrowed
Funds”).

RECITALS

          A. Buyer and Seller are parties to a Purchase and Sale Agreement (the “Purchase Agreement”)
pursuant to which Buyer will purchase certain real property located in Minneapolis, Minnesota, as
more particularly described therein (the “Property”), from Seller for a purchase price in the
amount of $33,000,000.00, as same may be adjusted in accordance with the terms of the Purchase
Agreement. Capitalized terms used and not defined herein shall have the meanings ascribed to such
terms in the Purchase Agreement.

          B. Upon the closing of the transactions contemplated by the Purchase Agreement (the
“Closing”), Escrow Agent shall disburse from the funds deposited by Buyer into the Closing escrow
an amount equal to the Escrowed Funds, and deposit the same into an account held by Escrow Agent
(the “Escrow Account”).

          C. The parties to this Agreement desire to establish the terms and conditions pursuant to
which the Escrowed Funds will be deposited, held in, and disbursed from the Escrow Account.

AGREEMENT

          NOW, THEREFORE, for valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties to this Agreement agree as follows:

	1.	 	Appointment of Escrow Agent. Buyer and Seller hereby constitute and appoint Escrow
Agent as, and Escrow Agent hereby agrees to assume and perform the duties of, escrow agent under
and pursuant to this Agreement.

	2.	 	Escrowed Funds. Escrow Agent agrees to (a) accept delivery of the Escrowed Funds;
and (b) hold such Escrowed Funds in the Escrow Account, which shall be an interest-bearing account
(provided that Buyer provides a W-9 and investment directions), all subject to the terms and
conditions of this Agreement.

	3.	 	Deposit of Escrowed Funds; Release from Escrow.

               (a) Delivery of Escrowed Funds. At Closing, Escrow Agent shall disburse the Escrowed
Funds from the Closing escrow into the Escrow Account. The Escrowed Funds shall be held by Escrow
Agent in the Escrow Account subject to the terms and conditions

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set forth herein. The Escrowed Funds shall not be subject to lien or attachment by any
creditor of any party hereto and shall be used solely for the purpose set forth in this Agreement.
Escrow Agent shall notify Buyer and Seller upon Escrow Agent’s receipt of the Escrowed Funds and
shall deposit all such funds hereunder in a commingled account (unless a W-9 and investment
directions have been provided by Buyer, in which case such funds shall be deposited in segregated,
interest-bearing account) at:

	 	 	 
	Bank:
	 	Bank of America, N.A.
	Address:
	 	275 Valencia Blvd
	 
	 	Brea, CA 92823
	ABA#:
	 	026009593
	Account Name:
	 	Chicago Title and Trust Company, Loop
	Acct #:
	 	5800038704

               (b) Release. The Escrowed Funds will be held and disbursed by Escrow Agent only as
follows:

                    (i) In the event Buyer becomes aware of a claim with respect to a breach by Seller of a
representation or warranty set forth in Section 9.1 of the Purchase Agreement or with respect to an
Indemnified Claim for which Seller has expressly agreed to indemnify Buyer under the Purchase
Agreement (a “Holdback Claim”), Buyer shall promptly (and in any event prior to the date that is
four (4) months after the Effective Date (such four (4) month period following the Effective Date
being the “Survival Period”)) give written notice thereof to Seller and Escrow Agent. Buyer shall
commence litigation in a court of competent jurisdiction with respect to a Holdback Claim, if at
all, prior to the later of (A) the expiration of the Survival Period or (B) twenty-one (21) days
after Buyer’s delivery to Seller and Escrow Agent of written notice of such Holdback Claim in
accordance with the preceding sentence. In the event of the entry of a final, non-appealable
judgment by a court of competent jurisdiction in favor of Buyer with respect to a Holdback Claim of
which Buyer delivered written notice to Seller and Escrow Agent prior to the expiration of the
Survival Period, Buyer and Seller shall jointly direct Escrow Agent in writing to disburse to Buyer
Escrowed Funds from the Escrow Account in the amount of Seller’s liability pursuant to such
judgment.

                    (ii) Subject to disbursements of Escrowed Funds to pay Holdback Claims in accordance with the
preceding subsection, Escrow Agent shall continue to hold the Escrowed Funds in the Escrow Account
until, and such escrow shall terminate upon: (A) if Escrow Agent and Seller have not theretofore
received written notice from Buyer of a Holdback Claim, the expiration of the Survival Period, or
(B) if, prior to the expiration of the Survival Period, Escrow Agent and Seller have received
written notice from Buyer of a Holdback Claim and Buyer commences litigation in a court of
competent jurisdiction with respect to such Holdback Claim within the time period required under
subsection (i) above, the later to occur of (x) the date on which a final judgment has been
entered, and the expiration of all appeal periods, in any such litigation, or (y) the expiration of
the Survival Period. Upon such termination of such escrow, Escrow Agent shall, without the
requirement of receiving additional notice from Seller or Buyer, promptly disburse from the Escrow
Account to Seller all remaining Escrowed Funds, if any.

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               (c) Tax Reporting Matters. Buyer and Seller each agrees, upon request, to provide
Escrow Agent with its tax identification number by furnishing an appropriate form W-9 and other
forms and documents that Escrow Agent may reasonably request.

          4. Escrow Provisions.

               (a) In the event Escrow Agent is required to invest the Escrowed Funds hereunder, Escrow Agent
shall not be held responsible for any loss of principal or interest which may be incurred as a
result of making such investment or redeeming such investment in accordance herewith. Buyer and
Seller authorize Escrow Agent to accept, comply with and obey any writs, orders, judgments or
decrees entered or issued by any court with jurisdiction, and Escrow Agent shall not be liable to
Buyer or Seller or any other person by reason of such compliance, notwithstanding that such writ,
order, judgment or decree be subsequently reversed, modified, annulled, set aside or vacated. If
Escrow Agent is made a party defendant to any suit or proceedings regarding the escrow of the
Escrowed Funds, Buyer and Seller agree to pay Escrow Agent, upon written demand, all reasonable
costs, attorney’s fees, and expenses incurred with respect to such suit or proceeding, except to
the extent arising from Escrow Agent’s gross negligence, willful misconduct or breach of this
Agreement.

               (b) Escrow Agent shall not be bound by any modification, cancellation or rescission of this
Agreement unless in writing and signed by Escrow Agent.

               (c) Subject to Section 7 hereof, if any dispute arises as to whether Escrow Agent is
obligated to deliver the Escrowed Funds or as to whom the Escrowed Funds are to be delivered or the
amount or timing thereof, Escrow Agent shall not be required to make any delivery, but in such
event Escrow Agent may hold the Escrowed Funds until receipt by Escrow Agent of instructions in
writing, signed by all parties which have, or claim to have, an interest in the Escrowed Funds,
directing the disposition of the Escrowed Funds, or in the absence of such authorization, Escrow
Agent may hold the Escrowed Funds until receipt of a certified copy of a final judgment or order of
a court of competent jurisdiction or final arbitrator’s decision, as provided in Section 7
hereof, providing for the disposition of the Escrowed Funds. If such written instructions are not
received, or proceedings for such determination are not commenced, within thirty (30) days after
receipt by Escrow Agent of notice of any such dispute and diligently continued, or if Escrow Agent
is uncertain as to which party or parties are entitled to the Escrowed Funds, Escrow Agent may
either (i) hold the Escrowed Funds until receipt of (A) such written instructions or (B) a
certified copy of a final judgment of a court of competent jurisdiction providing for the
disposition of the Escrowed Funds, or (ii) deposit the Escrowed Funds in the registry of a court of
competent jurisdiction; provided, however, that notwithstanding the foregoing,
Escrow Agent may, but shall not be required to, institute legal proceedings of any kind.

               (d) Each of Buyer and Seller, jointly and severally, shall indemnify and hold harmless Escrow
Agent from and against any and all losses, liabilities, damages, claims, expenses or costs actually
incurred by Escrow Agent in connection with its performance of its duties hereunder, other than
those caused by Escrow Agent’s own breach of this Agreement, misconduct, bad faith or gross
negligence.

          5. Expenses. All fees and expenses of Escrow Agent for performing its
responsibilities hereunder, which shall be capped at Three Hundred and 00/Dollars ($300.00),

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will be shared equally by Buyer and Seller and shall be paid upon execution hereof from the
proceeds of the Closing.

          6. Successor Escrow Agent.

               (a) Escrow Agent may resign as escrow agent thirty (30) calendar days following the giving of
prior written notice thereof to Buyer and Seller. In addition, Escrow Agent may be removed and
replaced on a date designated in a written instrument signed by Buyer and Seller and delivered to
Escrow Agent. Notwithstanding the foregoing, no such resignation or removal shall be effective
until a successor escrow agent has acknowledged its appointment as such. In either event, upon the
effective date of such resignation or removal and upon receipt by Escrow Agent of any fees, costs
and expenses owed or due to it, if any, Escrow Agent shall deliver the Escrowed Funds to such
successor escrow agent, together with such records maintained by Escrow Agent in connection with
its duties hereunder and other information with respect to the Escrowed Funds as such successor may
reasonably request.

               (b) If a successor escrow agent shall not have acknowledged its appointment as such, in the
case of a resignation, prior to the expiration of thirty (30) calendar days following the date of a
notice of resignation or, in the case of a removal, on the date designated for Escrow Agent’s
removal, as the case may be, Buyer and Seller are unable to agree on a successor escrow agent, or
for any other reason, Escrow Agent may petition a court of competent jurisdiction to select a
successor or Escrow Agent may select a successor escrow agent and any such resulting appointment
shall be binding upon all of the parties to this Agreement.

          7. Dispute Resolution.

               (a) Buyer and Seller shall attempt to resolve any dispute arising out of or relating to this
Agreement promptly by negotiation in good faith. Any party shall give the other party written
notice of any dispute not resolved in the ordinary course of business. Within seven (7) days after
delivery of such notice, the party receiving notice shall submit to the other a written response
thereto. The notice and response shall include (i) a statement of each party’s position(s)
regarding the matter(s) in dispute and a summary of arguments in support thereof.

               (b) Within fourteen (14) days after delivery of the notice, representatives of the parties
shall meet at a mutually acceptable time and place, and thereafter, as often as they reasonably
deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by
one party to the other shall be honored in a timely fashion. All negotiations conducted pursuant
to this Section 7 (and any of the parties’ submissions in contemplation hereof) shall be
kept confidential by the parties and shall be treated by the parties and their representatives as
compromise and settlement negotiations under the Federal Rules of Evidence and any similar state
rules.

               (c) If the matter in dispute has not been resolved within thirty (30) days after delivery of
the notice, either party (the “claimant”) may submit the dispute to binding arbitration to the
Chicago, Illinois office of the American Arbitration Association (“AAA”) in accordance with the
procedures set forth in the Commercial Arbitration Rules of the AAA, revised and effective July 1,
1996.

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               (d) The Commercial Arbitration Rules of the AAA, revised and effective July 1, 1996, as
modified or revised by the provisions of this Section 7, shall govern any arbitration
proceeding hereunder. The arbitration shall be conducted by three arbitrators selected pursuant to
Rule 13 of the Commercial Arbitration Rules, and prehearing discovery shall be permitted if and
only to the extent determined by the arbitrator to be necessary in order to effectuate resolution
of the matter in dispute. The arbitrator’s decision shall be rendered within thirty (30) days of
the conclusion of any hearing hereunder and the arbitrator’s judgment and award may be entered and
enforced in any court of competent jurisdiction. The non-prevailing party to an arbitration (as
expressly designated by the arbitrators) shall pay its own expenses, the fees of the arbitrators,
the administrative fee of the AAA and the expenses, including, without limitation, the reasonable
attorneys’ fees and costs, incurred by the prevailing party to the arbitration.

               (e) Resolution of disputes under the procedures of this Section 7 shall be the sole
and exclusive means of resolving disputes arising out of or relating to this Agreement (other than
those involving Escrow Agent); provided, however, that nothing herein shall
preclude the parties from seeking in any court of competent jurisdiction temporary or interim
injunctive relief to the extent necessary to preserve the subject matter of the dispute pending
resolution under this Section 7.

          8. Notices. Any notice provided for or permitted hereunder will be treated as having
been given when (i) delivered personally, (ii) sent by confirmed facsimile, (iii) sent by
commercial overnight courier with written verification of receipt, or (iv) five (5) business days
after being mailed postage prepaid by certified or registered mail, return receipt requested, to
the party to be notified, at the address set forth below, or at such other place of which the other
party has been notified in accordance with the provisions of this Section 8.

	 	Escrow Agent:	 	 Chicago Title Insurance Company

171 N Clark Street

Chicago, IL 60601

Attn: Linda Tyrell

Facsimile No.: (312) 223-3361

Telephone No. (312) 223-4857
	 
	 	Buyer:	 	 Gator Owner LLC

c/o Pebblebrook Hotels Trust

2 Bethesda Metro Center, Suite 1530

Bethesda, Maryland 20184

Attn: Thomas C. Fisher

Fax: 240-396-5763
	 
	 	Seller:	 	 615 2nd Avenue South — Minneapolis LLC

c/o iStar Financial Inc.

180 Glastonbury Blvd., Suite 201

Glastonbury, CT 06033

Attn: Cynthia Tucker

Fax: (860) 815-5901

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          9. General.

               (a) Governing Laws. It is the intention of the parties hereto that the internal laws
of the State of Illinois (irrespective of its choice of law principles) shall govern the validity
of this Agreement, the construction of its terms, and the interpretation and enforcement of the
rights and duties of the parties to this Agreement.

               (b) Binding upon Successors and Assigns. Subject to, and unless otherwise provided
in, this Agreement, each and all of the covenants, terms, provisions, and agreements contained in
this Agreement shall be binding upon, and inure to the benefit of, the permitted successors,
executors, heirs, representatives, administrators and assigns of the parties to this Agreement.

               (c) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original as against any party whose signature appears on such counterpart and
all of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts of this Agreement, individually or taken together, shall bear
the signatures of all of the parties reflected in this Agreement as signatories.

               (d) Entire Agreement. This Agreement, the documents referenced in this Agreement and
the exhibits to such documents, constitute the entire understanding and agreement of the parties to
this Agreement with respect to the subject matter of this Agreement and of such documents and
exhibits and supersede all prior and contemporaneous agreements or understandings, inducements or
conditions, express or implied, written or oral, between the parties with respect to this
Agreement. The express terms of this Agreement control and supersede any course of performance or
usage of the trade inconsistent with any of the terms of this Agreement.

               (e) Waivers. No waiver by any party to this Agreement of any condition or of any
breach of any provision of this Agreement will be effective unless in writing. No waiver by any
party of any such condition or breach, in any one instance, will be deemed to be a further or
continuing waiver of any such condition or breach or a waiver of any other condition or breach of
any other provision contained in this Agreement.

               (f) Amendment. This Agreement may be amended with the written consent of Buyer,
Seller and Escrow Agent, provided that if Escrow Agent does not agree to an amendment
agreed upon by Buyer and Seller, Buyer and Seller will appoint a successor Escrow Agent in
accordance with Section 6.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK.]

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          IN WITNESS WHEREOF, the parties have duly executed this Escrow Agreement as of the day and
year first above written.

	 	 	 	 	 
	 	BUYER:

GATOR OWNER LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SELLER:

615 2ND AVENUE SOUTH — MINNEAPOLIS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ESCROW AGENT:

CHICAGO TITLE INSURANCE COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

8exv10w28

Exhibit
10.28

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as of this 29th day of
November, 2010 (the “Effective Date”), by and between MARITIME HOTEL ASSOCIATES, L.P., a California
limited partnership (“Seller”), and WILDCATS OWNER LLC, a Delaware limited liability company
(“Purchaser”). (Seller and Purchaser are sometimes referred to herein individually as a “Party”,
and collectively as the “Parties”).

Recitals

WHEREAS, Seller is the owner of the Property (as defined herein) relating to the hotel facility
located at 495 Jefferson Street, San Francisco, California and commonly known as the Argonaut Hotel
(the “Hotel”).

WHEREAS, Seller desires to sell the Property to Purchaser, and Purchaser desires to purchase the
Property from Seller, on the terms set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Seller and Purchaser hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1. Definitions. In addition to the terms defined above in the introduction
and recitals to this Agreement, the following terms when used in this Agreement shall have the
meanings set forth in this Section 1.1.

“Accounts Receivable” means all contractual debts which Seller is entitled to receive from the
operation of the Hotel which are not paid as of the Closing which have accrued and become due and
payable in the period prior to Closing, including, without limitation, charges for the use or
occupancy of any guest, conference, meeting or banquet rooms or other facilities at the Hotel, any
restaurant, bar or banquet services, or any other goods or services provided at the Hotel.

“Accrued and Earned Sick Pay” means the amount of salaries and wages which the Employees are
entitled to receive (including all employment taxes with respect thereto) for any sick days accrued
by such Employees as of the time in question (computed at the rate of the salaries and wages earned
by such Employees as of the time in question).

“Accrued and Earned Vacation Pay” means the amount of salaries and wages which the Employees
are entitled to receive (including all employment taxes with respect thereto) for any vacation days
accrued by such Employees as of the time in question (computed at the rate of the salaries and
wages earned by such Employees as of the time in question).

“Additional Deposit” has the meaning set forth in Section 3.1(b).

“Additional Deposit Date” has the meaning set forth in Section 3.1(b).

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“Additional Title Matters” has the meaning set forth in Section 4.2(c).

“Affiliate” means, with respect to the Person in question, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with, such Person. For the
purposes of this definition, the term “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of the Person in
question, whether by the ownership of voting securities, contract or otherwise. Notwithstanding
the foregoing, for all purposes of this Agreement, Manager shall not be considered an Affiliate of
Seller, unless expressly provided otherwise.

“Agreement” has the meaning set forth in the preamble.

“Allocation” has the meaning set forth in Section 3.2.

“Amendment
Notice” has the meaning set forth in Section 5.2.

“Applicable Law” means all statutes, laws, common law, rules, regulations, ordinances, codes or
other legal requirements of any Governmental Authority, Board of Fire Underwriters and similar
quasi-governmental agencies or entities, and any judgment, injunction, order, directive, decree or
other judicial or regulatory requirement of any court or Governmental Authority of competent
jurisdiction affecting or relating to the Person or property in question.

“Beneficiary Statement” has the meaning set forth in Section 4.1(j).

“Bookings” has the meaning set forth in Section 2.1(m).

“Broker” has the meaning set forth in Section 5.1(l).

“Business Day” means any day other than Saturday, Sunday or any federal legal holiday.

“Casualty” has the meaning set forth in Section 13.1(a).

“Closing” has the meaning set forth in Section 9.1.

“Closing Date” has the meaning set forth in Section 9.1.

“Closing Documents” has the meaning set forth in Section 9.2.

“Closing Escrow” has the meaning set forth in Section 9.2.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations,
rulings and guidance issued by the Internal Revenue Service.

“Compensation” means all salaries and wages which the Employees are entitled to receive at the time
in question, together with all employment taxes with respect thereto, including, without
limitation, any withholding or employer contributions under the Federal Insurance Contribution Act
and Federal Unemployment Taxes Act, and all other compensation accrued or payable to the
Employees (other than Accrued and Earned Vacation Pay and Accrued and Earned Sick Pay),

2

 

including, without limitation, (i) the reasonably projected bonus or incentive compensation, which shall be
prorated for the year in which the Closing occurs based on the portion of the year each party owned
the Hotel; and (ii) any health, welfare and other benefits provided to the Employees under the
Employee Plans, and employer contributions to, and amounts paid or accrued under, the Employee
Plans for the benefit of the Employees.

“Condemnation” has the meaning set forth in Section 13.2(a).

“Confidential Information” has the meaning set forth in Section 7.1(a).

“Contracts” means, collectively, the Equipment Leases and Operating Agreements.

“Cut-Off Time” has the meaning set forth in Section 10.1.

“Deed of Trust” has the meaning set forth in Section 4.1(j).

“Due Diligence Contingency” has the meaning set forth in Section 4.1(a).

“Due Diligence Period” has the meaning set forth in Section 4.1(a).

“Earnest Money” has the meaning set forth in Section 3.1(b).

“Earnest Money Escrow” has the meaning set forth in Section 3.3(a).

“Earnest Money Escrow Agreement” has the meaning set forth in Section 3.3(a).

“Effective Date” has the meaning set forth in the preamble.

“Employees” means all employees of Seller or, after the Employment Transition, Manager (or an
Affiliate of Manager), who are employed full-time or part-time at and who are physically located at
or assigned in whole or in part to, the Hotel at the time in question.

“Employee Plans” means all plans and programs maintained by or on behalf of Seller or, after the
Employment Transition, Manager (or an Affiliate of Manager), for the health, welfare or benefit of
any Employees and/or their spouses, dependents or other qualified beneficiaries.

“Employment Agreements” has the meaning set forth in Section 5.1(h).

“Employment Transition” has the meaning set forth in Section 7.8(a).

“Environmental Claims” means all claims for reimbursement or remediation expense, contribution,
personal injury, property damage or damage to natural resources made by any Governmental Authority
or other Person arising from or in connection with the presence or release of any Hazardous
Substances over, on, in or under the Real Property, or the violation of any Environmental Laws with
respect to the Hotel.

“Environmental Laws” means Applicable Laws regulating or relating to any Hazardous Substances
including, without limitation, (i) the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq. (“CERCLA”), (ii) the Resource

3

 

Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (“RCRA”), (iii) the Federal Water Pollution Control Act,
33 U.S.C. § 2601 et seq., (iv) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., (v) the
Clean Water Act, 33 U.S.C. § 1251 et seq., (vi) the Clean Air Act, 42 U.S.C. § 7401 et seq., (vii)
the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq., (viii) the Safe Drinking
Water Act, 42 U.S.C. § 803 et seq., (ix) the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.,
(x) the Emergency Planning and Community Right-To-Know Act of 1986, 42 U.S.C. § 11001 et seq., (xi)
the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq. (to the extent it regulates
exposure to Hazardous Substances), and similar state and local Applicable Law, as amended from time
to time, and all regulations, rules and guidance issued pursuant thereto.

“Environmental Liabilities” means all liabilities or obligations of any kind or nature imposed on
the Person in question pursuant to any Environmental Laws, including, without limitation, any (i)
obligations to manage, control, contain, remove, remedy, respond to, clean up or abate any actual
or potential release of Hazardous Substances or other pollution or contamination of any water,
soil, sediment, air or other environmental media, whether or not located on the Real Property and
whether or not arising from the operations or activities with respect to the Hotel, and (ii)
liabilities or obligations with respect to the manufacture, generation, formulation, processing,
use, treatment, handling, storage, disposal, distribution or transportation of any Hazardous
Substances.

“Environmental Report” means that certain Phase I Environmental Site Assessment prepared by IVI Due
Diligence Services, Inc. (IVI Project No.: 61221240) and dated as of January 5, 2007.

“Equipment Leases” has the meaning set forth in Section 2.1(i).

“Escrow Agent” shall mean the Title Company.

“Excluded Property” has the meaning set forth in Section 2.2.

“Existing Loan” has the meaning set forth in Section 4.1(j).

“Existing Loan Assumption Agreement” has the meaning set forth in Section 4.1(j).

“Existing Loan Assumption Condition” has the meaning set forth in Section 8.1(c).

“Existing Loan Amount” has the meaning set forth in Section 4.1(j).

“Existing Loan Documents” has the meaning set forth in Section 4.1(j).

“Existing Survey” has the meaning set forth in Section 4.2(a).

“Express Representations” has the meaning set forth in Section 5.5.

“F&B” has the meaning set forth in Section 2.1(e).

“FF&E” has the meaning set forth in Section 2.1(c).

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“Governmental Authority” means any federal, state or local government or other political
subdivision thereof, including, without limitation, any agency or entity exercising executive,
legislative, judicial, regulatory or administrative governmental powers or functions, in each case
to the extent the same has jurisdiction over the Person or property in question.

“Ground Lease” means that certain Historic Lease, effective as of October 16, 2000, by and between
Seller and Ground Lessor, as amended effective as of January 16, 2001, January 18, 2001, January
22, 2001, January 24, 2001, January 29, 2001, February 1, 2001, February 6, 2001, August 10, 2001,
May 14, 2004 and September 18, 2008.

“Ground Lease Condition” has the meaning set forth in Section 8.1(d).

“Ground Lessor” means the United States Department of the Interior, National Park Service, acting
through the Regional Director, Pacific West Division, an agency of the United States of America.

“Guaranty” has the meaning set forth in Section 4.1(j).

“Guest Ledger” means all charges accrued to the open accounts of any guests who are resident at the
Hotel as of the Cut-Off Time for the use and occupancy of any guest rooms at the Hotel.

“Hazardous Substances” means any hazardous or toxic substances, materials or waste, whether solid,
semisolid, liquid or gaseous, including, without limitation, asbestos, polychlorinated biphenyls,
petroleum or petroleum by-products (excluding any substances of kinds and amounts ordinarily used
or stored in similar properties for purposes of cleaning or other maintenance or operations and
otherwise in compliance with all Environmental Laws), and any other material or substance which is
defined as a “hazardous substance”, “hazardous waste”, “toxic waste” or “toxic substance” under any
Environmental Laws.

“Hotel” has the meaning set forth in the Recitals.

“Improvements” has the meaning set forth in Section 2.1(b).

“Indemnification Cap” has the meaning set forth in Section 14.3(b).

“Indemnification Claim” has the meaning set forth in Section 14.4(a).

“Indemnification Deductible” has the meaning set forth in Section 14.3(b).

“Indemnification Loss” means, with respect to the Person in question, any actual liability, damage
(but expressly excluding any consequential and punitive damages), loss, cost or expense, including,
without limitation, reasonable attorneys fees and expenses and court costs, incurred by such
Person.

“Indemnitee” has the meaning set forth in Section 14.4(a).

“Indemnitor” has the meaning set forth in Section 14.4(a).

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“Initial Deposit” has the meaning set forth in Section 3.1(a).

“Inspections” has the meaning set forth in Section 4.1(b).

“Intangible Property” has the meaning set forth in Section 2.1(l).

“Inventoried Baggage” has the meaning set forth in Section 11.3.

“Inventoried Safe Deposit Box” has the meaning set forth in Section 11.2.

“Knowledge” means (i) with respect to Seller, the actual knowledge of either Judy Miles or Ben
Rowe, and expressly excluding the knowledge of any other shareholder, trustee, partner, member,
director, officer, manager, employee, agent or representative of Seller, Manager or any of their
respective Affiliates, and (ii) with respect to Purchaser, (A) the actual knowledge of Thomas
Fisher or Jon Bortz, and expressly excluding the knowledge of any other shareholder, trustee,
partner, member, director, officer, manager, employee, agent or representative of Purchaser or any
of its respective Affiliates, (B) any matter disclosed in any exhibits or schedules to this
Agreement, (C) any matter disclosed in any Seller Due Diligence Materials or any other documents or
materials provided by Seller to Purchaser prior to Closing, including any materials posted in the
Virtual Data Room, (D) any matter disclosed in any due diligence reports or inspections obtained by
Purchaser and (E) any matter disclosed by Seller pursuant to an amendment to Seller’s
representations, warranties or schedules in accordance with Section 5.2 of this Agreement.

“Land” has the meaning set forth in Section 2.1(a).

“Leasehold Interest” has the meaning set forth in Section 2.1(a).

“Lender” has the meaning set forth in Section 4.1(j).

“Liabilities” means, with respect to the Person in question, any liability, obligation, damage,
loss, diminution in value, cost or expense of any kind or nature whatsoever, whether known or
unknown, foreseen or unforeseen, actual or contingent, which is incurred by such Person.

“Licenses and Permits” has the meaning set forth in Section 2.1(k).

“Losses” means, with respect to the Person in question, any actual liability, damage (but expressly
excluding any consequential and punitive damages), loss, cost or expense, including, without
limitation, reasonable attorneys fees and expenses and court costs, incurred by such Person.

“Management Agreement” means that certain Hotel Operating Agreement dated as of June 14, 2001 and
amended as of October 7, 2010, between Seller and Manager, as amended as of Closing by the
Management Agreement Amendment..

“Management Agreement Amendment” has the meaning set forth in Section 4.1(l)

6

 

“Manager” means Kimpton Hotel & Restaurant Group, LLC, a Delaware limited liability company.

“Manager Proprietary Materials” has the meaning set forth in Section 2.2(b).

“Material Casualty” has the meaning set forth in Section 13.1(a).

“Material Condemnation” has the meaning set forth in Section 13.2(a).

“Mutual Closing Conditions” has the meaning set forth in Section 8.1.

“Non-Inventoried Safe Deposit Boxes” has the meaning set forth in Section 11.2.

“Notice” has the meaning set forth in Section 15.1(a).

“OFAC” has the meaning set forth in Section 5.1(n).

“Operating Agreements” has the meaning set forth in Section 2.1(j).

“Order” has the meaning set forth in Section 5.1(n).

“Ordinary Course of Business” means the ordinary course of business consistent with recent past
(i.e., most recent three years before Closing) custom and practices for the operation, maintenance
and repair of the Hotel.

“Party(ies)” has the meaning set forth in the preamble.

“Permitted Exceptions” has the meaning set forth in Section 4.2(b).

“Person” means any natural person, corporation, general or limited partnership, limited liability
company, association, joint venture, trust, estate, Governmental Authority or other legal entity,
in each case whether in its own or a representative capacity.

“Personal Property” means the Property other than the Real Property.

“Preliminary Report” means the Preliminary Report dated as of September 17, 2010, issued by Title
Company with respect to the Real Property under its Order No. NCS-458946-SC.

“Promissory Note” has the meaning set forth in Section 4.1(j).

“Property” has the meaning set forth in Section 2.1.

“Prorations” has the meaning set forth in Section 10.1.

“Purchase Price” has the meaning set forth in Section 3.1.

“Purchaser” has the meaning set forth in the preamble.

“Purchaser Closing Conditions” has the meaning set forth in Section 8.2.

7

 

“Purchaser Default” has the meaning set forth in Section 12.2.

“Purchaser Indemnitees” means Purchaser and its Affiliates, and each of their respective
shareholders, members, partners, trustees, beneficiaries, directors, officers, employees,
attorneys, accountants, consultants, and agents, and the successors, assigns, legal
representatives, heirs, devisees and donees of each of the foregoing.

“Purchaser’s Inspectors” has the meaning set forth in Section 4.1(b).

“Real Property” has the meaning set forth in Section 2.1(b).

“Retail Merchandise” has the meaning set forth in Section 2.1(f).

“SEC” has the meaning set forth in Section 8.1(e).

“Seller” has the meaning set forth in the preamble.

“Seller Closing Conditions” has the meaning set forth in Section 8.3.

“Seller Default” has the meaning set forth in Section 12.1.

“Seller Due Diligence Materials” has the meaning set forth in Section 4.1(c).

“Seller Indemnitees” means Seller and its Affiliates, and each of their respective shareholders,
members, partners, trustees, beneficiaries, directors, officers, employees, attorneys, accountants,
consultants and agents, and the successors, assigns, legal representatives, heirs, devisees and
donees of each of the foregoing.

“Seller’s Possession” means in the actual possession of any officer or employee of Seller or its
Affiliates who has direct or supervisory responsibility for or with respect to the operation of the
Hotel; provided, however, that any reference in this Agreement to Seller’s Possession of any
documents or materials expressly excludes the possession of any such documents or materials that
are legally privileged or that constitute attorney work product.

“Seller’s Title Notice” has the meaning set forth in Section 4.2(c).

“Seller’s Title Response Period” has the meaning set forth in Section 4.2(c).

“Settlement Statement” has the meaning set forth in Section 11.1.

“Supplies” has the meaning set forth in Section 2.1(d).

“Survival Period” has the meaning set forth in Section 14.3(a).

“Taxes” means any federal, state, local or foreign, real property, personal property, sales, use,
room, occupancy, severance, stamp, payroll, employment, withholding, social security, unemployment,
disability, vault, ad valorem, assessments, value added or other tax, assessments, levies, charges
or fees of any kind whatsoever imposed on Seller or the Property or any portion thereof by any
Governmental Authority, including, without limitation, any interest, penalty, or

8

 

addition thereto, but expressly excluding any (i) federal, state, local or foreign income, capital
gain, gross receipts, capital stock, franchise, profits, estate, gift or generation skipping tax,
or (ii) excise tax due on the transfer of real property or similar taxes incurred with respect to
the transaction contemplated in this Agreement.

“Termination Costs” has the meaning set forth in Section 12.1.

“Tenant Leases” has the meaning set forth in Section 2.1(h).

“Title Company” means First American Title Company.

“Title Objections” has the meaning set forth in Section 4.2(c).

“Title Policy” has the meaning set forth in Section 8.2(d).

“Trade Payables” has the meaning set forth in Section 10.1(j).

“Virtual Data Room” means that certain virtual data room established by Seller and accessible
through the following link:
https://www.rcm1.com/handler/clientvdr.aspx?pv=eohagmlKYFuw9bUERLuwXQjv2xyZHjqpqlxyb34loKk9elubER1aABk321eXwAc
0HYeEq-cWuR26XVJw3ure2VZ2qDoSpSEOrlZ7l2isli-kD6Y5A4gnDJGUgXcsbQw&rand=740011&sv=1.

“WARN Act” means the Worker’s Adjustment and Retraining Notification Act of 1988, 29 U.S.C. § 2101,
et seq., and any similar state and local Applicable Law, as amended from time to
time, and any regulations, rules and guidance issued pursuant thereto.

ARTICLE II

DESCRIPTION OF THE PROPERTY; EXCLUDED PROPERTY;

ASSUMED LIABILITIES; EXCLUDED LIABILITIES

     Section 2.1. Description of the Property. Subject to the terms and provisions set
forth in this Agreement, at the Closing, Seller shall sell, convey, transfer, assign and deliver to
Purchaser, all right, title and interest of Seller in and to the property and assets set forth in
this Section 2.1, but expressly excluding the Excluded Property (collectively, the “Property”):

          (a) Leasehold Interest. Seller’s leasehold interest under the Ground Lease (the
“Leasehold Interest”) in the land described in Schedule 2.1(a) (the “Land”);

          (b) Improvements. All buildings, structures and improvements located on or affixed to
the Land and all fixtures on the Land which constitute real property under Applicable Law (the
“Improvements”; the Leasehold Interest and the Improvements are referred to collectively herein as
the “Real Property”);

          (c) FF&E. All fixtures (other than those which constitute Improvements), furniture,
furnishings, equipment, machinery, building systems, vehicles, appliances, computer hardware, art
work, security systems, key cards (together with all devices for coding and

9

 

monogramming such key cards), vehicles and other items of tangible personal property which are
located at the Hotel and used in the operation of the Hotel, or ordered in the Ordinary Course of
Business for future use at the Hotel as of the Closing, other than such items that are leased by
Seller, the Supplies, F&B and Retail Merchandise (the “FF&E”);

          (d) Supplies. All china, glassware, silverware, linens, uniforms, engineering,
maintenance, cleaning and housekeeping supplies, matches and ashtrays, soap and other toiletries,
stationery, menus and other printed materials, and all other similar materials and supplies, which
are located at the Hotel and used in the operation of the Hotel, or ordered in the Ordinary Course
of Business for future use at the Hotel as of the Closing (the “Supplies”);

          (e) Food and Beverage. All food and beverages (alcoholic and non-alcoholic) which are
located at the Hotel (whether opened or unopened), or ordered in the Ordinary Course of Business
for future use at the Hotel as of the Closing, but expressly excluding any alcoholic beverages to
the extent the sale or transfer of the same is not permitted under applicable Law (the “F&B”);

          (f) Retail Merchandise. All merchandise located at the Hotel, including, without
limitation, any gift shop or newsstand maintained by Seller or Manager, and held for sale to guests
and customers of the Hotel, or ordered in the Ordinary Course of Business for future sale at the
Hotel as of the Closing (the “Retail Merchandise”);

          (g) Management Agreement. The Management Agreement;

          (h) Tenant Leases. Any leases, subleases, licenses, concessions and similar
agreements granting a real property interest to any other Person for the use or occupancy of any
portion of the Real Property (the “Tenant Leases”), together with all security deposits held by
Seller thereunder, to the extent such Tenant Leases and security deposits are transferable;

          (i) Equipment Leases. All leases and purchase money security agreements for any
equipment, machinery, vehicles, furniture or other personal property located at the Hotel and used
in the operation of the Hotel which are held by or on behalf of Seller (the “Equipment Leases”),
together with all deposits made thereunder, to the extent such Equipment Leases and deposits are
transferable;

          (j) Operating Agreements. All maintenance, service and supply contracts, credit card
service agreements, and other contracts and agreements entered into by or on behalf of Seller in
connection with the construction, ownership, occupancy or operation of the Hotel, or which may be
binding upon the Hotel, the Property or Purchaser, other than the Tenant Leases, Equipment Leases
and Licenses and Permits (the “Operating Agreements”), together with all deposits made or held by
Seller thereunder, to the extent such Operating Agreements and deposits are transferable;

          (k) Licenses and Permits. All licenses, permits, consents, authorizations, approvals,
registrations and certificates of any Governmental Authority held by Seller and used in connection
with the construction, ownership, occupancy or operation of the Hotel (the

10

 

“Licenses and Permits”), together with any deposits made by Seller thereunder, to the extent such Licenses and Permits and
deposits are transferable;

          (l) Intangible Property. All of the following owned by, issued to or licensed to
Seller and used in connection with the construction, ownership, occupancy or operation of the
Hotel, to the extent of Seller’s rights and interests therein and to the extent such rights and
interests are transferable: (i) any assignable existing warranties, indemnities, claims against
third parties and guaranties for the benefit of Seller in connection with the Property; (ii) any
transferable names, marks, logos and designs, other than those described in Section 2.2(c) below,
used in the operation or ownership of the Leasehold Interest, Improvements or Personal Property or
any part thereof; (iii) the goodwill associated with the Hotel; (iv) the plans and specifications
for the Improvements; (v) any insurance proceeds and condemnation awards or claims thereto to be
assigned to Purchaser hereunder; (vi) any computer systems, software, data and programs, operating
systems, technology and technical information, copyrights, together with all paper and electronic
copies thereof, other than proprietary property of Manager in which Seller does not have any
ownership right or interest pursuant to the terms of the Management Agreement; (vii) all books and
records relating to the Property; and (vii) direct dial telephone numbers for the Hotel (the
“Intangible Property”);

          (m) Bookings. All bookings and reservations for guest, conference, meeting and
banquet rooms or other facilities at the Hotel that are made before the Closing Date (the
“Bookings”), together with all deposits held by Seller with respect thereto and any and all books,
records and contracts related thereto; and

     Section 2.2. Excluded Property. Notwithstanding anything to the contrary in Section
2.1, the property, assets, rights and interests set forth in this Section 2.2 (the “Excluded
Property”) are excluded from the Property:

          (a) Cash. Except for deposits expressly included in Section 2.1 and cash credited to
Seller at Closing, all cash on hand or on deposit in any house bank, financial institution,
operating account or other account maintained in connection with the ownership or operation of the
Hotel, including, without limitation, any reserve accounts established for the Hotel pursuant to
the Management Agreement.

          (b) Manager Proprietary Property. To the extent of Manager’s (or any third party’s,
other than Seller’s, interest therein): (i) all software from time to time owned by, or leased or
licensed on an exclusive basis to, Manager or Manager’s Affiliates, including, without limitation,
any centralized system, including, without limitation, the reservation system, property management
system and e-mail, internet and internal computer network systems (including, without limitation,
revisions or enhancements to otherwise commercially available software) together with related
source and object codes, (ii) all trademarks, trade names, service marks, symbols, logos, and other
intellectual property rights held by Manager or any of its Affiliates and all depictions thereof,
either graphic or verbal, including, without limitation, the name of the Hotel and all logos and
trademarks associated therewith (the “Manager Proprietary Materials”), (iii) copyrighted materials,
(iv) operating handbooks (including employee manuals, training materials, user manuals, and
maintenance procedures), (v) operating policies and procedures, (vi) reporting and budgeting
formats, (vii) promotional materials, (viii) recipes (ix)

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customer information and customer contact lists for guests, patrons and groups patronizing the Property (other than guest information
necessary to honor Bookings in accordance with the terms of this Agreement), (x) data and
information on potential guests and groups, not otherwise guests
or groups patronizing the Hotel, (xi) Manager’s guest loyalty program records, (xii) financial
records of Manager, Seller and their respective Affiliates and all books and records of Manager,
Seller or their respective Affiliates (excluding (A) operating statements and historical expense
and operating information with respect to the Hotel and (B) records and information necessary to
honor Bookings in accordance with this Agreement, or otherwise relating to liabilities assumed by
Purchaser in accordance with this Agreement), (xiii) information relating to other hotels leased,
managed or operated by Manager, (xiv) information which Seller reasonably determines may not be
disclosed by Seller or its Affiliates under applicable privacy or identity theft laws, (xv) Manager
Proprietary Materials contained in or on signs and other fixtures and personal property ((i)
through (xv) above, hereinafter collectively referred to as the “Proprietary Property”);

          (c) Third-Party Property. Any fixtures or personal property owned by (i) the lessor
under any Equipment Leases, (ii) the supplier or vendor under any Contracts or Licenses and
Permits, (iii) the tenant under any Tenant Leases, (iv) any Employees, (vi) any guests or customers
of the Hotel, (vii) Manager, (viii) Ground Lessor (and not part of the Leasehold Interest) or (ix)
any Person other than Seller or its Affiliates; and

          (d) Management Agreement Payments. All amounts payable by Manager or its Affiliates
to Seller or its Affiliates pursuant to the Management Agreement attributable to the period prior
to Closing.

ARTICLE III

PURCHASE PRICE; EARNEST MONEY

     Section 3.1. Purchase Price. The purchase price for the Property is Eighty-Four
Million Dollars ($84,000,000) (the “Purchase Price”). The Purchase Price shall be paid as follows:

          (a) $1,000,000 of the Purchase Price (the “Initial Deposit”) shall be deposited into the
Earnest Money Escrow within two (2) Business Days after the Effective Date;

          (b) $4,000,000 of the Purchase Price (the “Additional Deposit”) shall be deposited into the
Earnest Money Escrow on or prior to the date on which the Due Diligence Period concludes pursuant
to Section 3.3(a) (the “Additional Deposit Date”; the term “Earnest Money” shall refer to the
Initial Deposit from the date of this Agreement until the Additional Deposit Date and shall refer
to the Initial Deposit and Additional Deposit collectively from and after the Additional Deposit
Date);

          (c) the Existing Loan Amount shall be deemed paid upon the full execution, deposit and release
of the Existing Loan Assumption Agreement, as provided in Section 4.1(j); and

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          (d) the balance of the Purchase Price, as adjusted for the Prorations and the Accounts
Receivable, shall be paid in cash at Closing, pursuant to Section 3.4.

     Section 3.2. Allocation of Purchase Price. Seller and Purchaser shall cooperate with
each other in good faith to arrive, prior to the expiration of the Due Diligence Period, at a
mutually acceptable allocation of the Purchase Price (the “Allocation”) among the Land, the
Improvements, and the Personal Property, with the amount allocable to Personal Property being
further allocated between tangible Personal Property and Intangible Property (with specific amounts
allocated to the values of kitchen equipment and any other Personal Property which is subject to
Taxes by virtue of the Closing). Seller and Purchaser agree to (i) be bound by the Allocation,
(ii) act in accordance with the Allocation in the preparation of financial statements and filing of
all tax returns and in the course of any tax audit, tax review or tax litigation relating thereto,
and (iii) refrain from, and cause their Affiliates to refrain from, taking a position inconsistent
with the Allocation for all tax purposes.

     Section 3.3. Earnest Money.

          (a) Earnest Money. The Earnest Money shall be deposited with Escrow Agent in
accordance with Section 3.1 above and that certain Earnest Money Escrow Agreement, dated of the
date hereof, among Seller, Purchaser and Escrow Agent, in the form attached hereto as Exhibit
E (the “Earnest Money Escrow Agreement”). The Earnest Money shall be non-refundable to
Purchaser, except as otherwise provided in this Agreement. The Earnest Money shall be held by
Escrow Agent in escrow (the “Earnest Money Escrow”) pursuant to the terms of the Earnest Money
Escrow Agreement, and any interest earned on the Earnest Money shall be added to the Earnest Money.
This provision shall survive the termination of this Agreement.

          (b) Disbursement of Earnest Money; Termination of Agreement. At Closing, Purchaser
shall cause Escrow Agent to disburse the Earnest Money to Seller as a part of the cash portion of
the Purchase Price payable hereunder, and Purchaser shall receive a credit against the Purchase
Price in the amount of the Earnest Money disbursed to Seller. In the event this Agreement is
terminated pursuant to the express right of either Party, the Earnest Money shall be delivered to
Purchaser or Seller (as expressly provided herein), and all obligations and liabilities of the
parties to each other shall terminate, except for those obligations hereunder which expressly
survive termination of this Agreement.

     Section 3.4. Payment of Purchase Price. At Closing, Purchaser shall cause Escrow
Agent to pay to Seller by wire transfer of immediately available funds an amount equal to the sum
of: (v) the Purchase Price, minus (w) the Existing Loan Amount, plus or
minus (x) the Prorations pursuant to Sections 10.1 and 10.2, and less (y) the
Earnest Money disbursed to Seller. Purchaser shall cause the wire transfer of such funds to be
received by Seller no later than 11:00 a.m. (Pacific Time) on the Closing Date.

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ARTICLE IV

DUE DILIGENCE; TITLE AND SURVEY

     Section 4.1. Due Diligence

          (a) Due Diligence Contingency. Purchaser shall have a period from the Effective Date until 5:00 p.m.
(Pacific Time) on December 15, 2010 (the “Due Diligence Period”), to
perform its due diligence review of the Property and all matters related thereto which Purchaser deems advisable, including, without
limitation, with respect to
engineering, environmental, title, survey, financial, operational and legal compliance matters.
If Purchaser, in its sole and absolute discretion, is not satisfied with the results
of its due diligence review of the Property, Purchaser shall have the right to terminate this
Agreement by delivering written notice to Seller prior to the expiration of the
Due Diligence Period (the “Due Diligence Contingency”). If Purchaser terminates this Agreement
pursuant to the Due Diligence Contingency prior to the expiration of the
Due Diligence Period, Seller and Purchaser shall have no further rights or obligations under
this Agreement, except those which expressly survive such termination. If Purchaser
does not terminate this Agreement pursuant to the Due Diligence Contingency in accordance
with this Section 4.1(a), Purchaser shall be deemed to have waived its rights to
terminate this Agreement pursuant to the Due Diligence Contingency and Purchaser shall
deposit the Additional Deposit with Escrow Agent on or prior to the date on which the Due
Diligence Period concludes, in accordance with Section 3.1(b), in which case the Earnest
Money shall be non-refundable to Purchaser, except as otherwise provided in this Agreement.

          (b) Due Diligence Inspections. Purchaser, through its employees, agents and
representatives (“Purchaser’s Inspectors”), shall have the right to perform such examinations,
tests, investigations and studies of the Property (the “Inspections”) as Purchaser deems advisable,
in accordance with this Section 4.1, and Seller shall provide reasonable access to the Property for
Purchaser’s Inspectors to perform the Inspections; provided, however, that (i) Purchaser shall
provide Seller with at least forty-eight (48) hours prior notice of each of the Inspections (which
notice may be oral and provided telephonically); (ii) Purchaser’s right to perform the Inspections
shall be subject to the rights of Manager and its Affiliates pursuant to the Management Agreement,
as well as tenants, guests and customers at the Property; and (iii) the Inspections shall not
unreasonably interfere with the operations of the Property. Seller shall have the right to have a
representative present during any such inspections. If Purchaser desires to do any invasive
testing at the Property, Purchaser shall do so only after notifying Seller and obtaining Seller’s
prior written consent thereto. Purchaser shall not permit any liens to attach to the Property by
reason of such inspections. Purchaser shall be responsible for and pay any and all liens by
contractors, subcontractors, materialmen, or laborers performing the inspections or any other work
for Purchaser on or related to the Property. All contractors and others performing any tests and
studies on the Property shall first present to Seller reasonably satisfactory evidence that such
Person is insured in accordance with subsection (h) below in order to reasonably protect Seller
from any loss, liability, or damage arising out of the performance of such tests or studies.

          (c) Seller’s Due Diligence Materials. Within five (5) Business Days after the
Effective Date, and to the extent not previously made available by Seller to Purchaser, Seller
shall make available, to the extent in Seller’s Possession, or cause Manager to make available, to
Purchaser true, correct and complete copies of all of the items enumerated in numbers (i) through
(vi) below, inclusive. Seller shall be deemed to have “made available” materials to Purchaser
which Seller shall have posted in Seller’s Virtual Data Room. All documents and materials provided
by Seller to Purchaser pursuant to this Agreement are referred to collectively herein as the
“Seller Due Diligence Materials”.

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	 	(i)	 	Copies of the certificate of occupancy,
permits, authorizations, approvals and licenses issued by Governmental
Authorities having jurisdiction over the Property that are in effect as
of the date hereof and copies of all certificates issued by the local
board of fire underwriters (or other body exercising similar functions)
relating to the Property that are in effect as of the date hereof.
	 
	 	(ii)	 	Advance reservations and room bookings for the
Property.
	 
	 	(iii)	 	Copies of the Ground Lease, the Management
Agreement, all Employment Agreements, Operating Agreements (except to
the extent such Operating Agreements are Manager Proprietary
Materials), Tenant Leases and Equipment Leases.
	 
	 	(iv)	 	Financial and operating statements for the
Property for the previous two (2) calendar years and the most recently
prepared year to date.
	 
	 	(v)	 	The operating and capital expenditure budget
for the Property for the current calendar year.
	 
	 	(vi)	 	Copies of the Existing Loan Documents.

          (d) During the Due Diligence Period and thereafter until the Closing, upon two (2) Business
Days’ prior written notice and upon conditions reasonably established by Seller, Seller shall also
use commercially reasonable efforts to make available at the Hotel or, to the extent such items can
be delivered vial email, then send vial email to Purchaser, for inspection and/or copying at
Purchaser’s expense, books, records, and correspondence of Seller and of the Hotel and other
reasonable information as specifically requested by Purchaser and relating to the Property which
are in Seller’s Possession, or Manager’s possession at the Hotel, excluding any correspondence or
materials subject to the attorney-client privilege or which Seller is contractually or legally not
permitted to disclose, or which Seller determines, in its sole discretion, to be confidential or
proprietary.

          (e) In the event Seller fails to make available any of Seller’s Due Diligence Materials or
fails to make available any of the items specified in Section 4.1(c) above as provided therein,
Purchaser shall give Seller notice thereof so that Seller shall have an opportunity to cure such
failure by making available such items. In the event Seller does not make available such Seller’s
Due Diligence Materials or items specified in Section 4.1(c) prior to the expiration of the Due
Diligence Period, Purchaser’s sole remedy shall be to terminate this Agreement on or before the
expiration of the Due Diligence Period. In the event Purchaser does not so terminate this
Agreement prior to the expiration of the Due Diligence Period, Purchaser shall be deemed to have
waived such failure, however, such waiver shall in no event be deemed to waive any right of
Purchaser with respect to a breach by Seller of any express representation or warranty made herein.

15

 

          (f) Release and Indemnification. Purchaser shall, at its cost and expense, repair any
damage to the Property or any other property owned by a Person other than Purchaser
arising from or in connection with the Inspections, and restore the Property or such other
third-party property to the same condition as existed in all material respects prior to such
Inspections, or replace the Property or such third-party property with property of the same
quality. Purchaser hereby releases the Seller Indemnitees from any Losses incurred by any Purchaser
Indemnitees arising from or in connection with the Inspections, except to the extent resulting from
Seller’s negligence or intentional misconduct. Purchaser shall defend, indemnify and hold harmless
the Seller Indemnitees in accordance with Article XIV from and against any Losses incurred by any
Seller Indemnitees arising from or in connection with the Inspections. This Section 4.1(f) shall
survive the termination of this Agreement and the Closing.

          (g) Compliance with Laws. Purchaser, at its own expense, shall comply (and shall
cause each of Purchaser’s Inspectors to comply) with all Applicable Laws with respect to
Purchaser’s inspections of the Property and with respect to their activities on or about the Real
Property including, without limitation, those relating to health, safety, noise, environmental
protection, waste disposal, water and air quality, and worker occupational health and safety and
shall furnish to Seller reasonable evidence of such compliance upon request.

          (h) Insurance.

	 	(i)	 	With respect to any activities on or about the
Real Property, Purchaser shall, at its expense, maintain and furnish or
cause Purchaser’s Inspectors to maintain and furnish evidence of
insurance naming Seller and Manager as additional insureds thereunder,
written through an insurance company licensed to do business in the
State of California having a rating of at least “A” by A.M. Best
Company, evidencing current worker’s compensation insurance meeting the
legally mandated limits of coverage as well as commercial general
liability insurance on an occurrence basis with coverage limits of not
less than Two Million Dollars ($2,000,000) combined single limit per
occurrence for personal liability (including bodily injury and death)
and not less than One Million Dollars ($1,000,000) per occurrence, and
Two Million Dollars ($2,000,000) general aggregate for property damage
and with endorsements (copies to be provided to Seller) providing that
such coverages are primary and evidencing contractual liability
insurance that covers Purchaser’s indemnity obligations under this
Agreement.
	 
	 	(ii)	 	A properly completed certificate of insurance
executed by an authorized representative of the insurer or insurers or
a certified copy of the policy or policies, evidencing compliance with
the above requirements and providing that not less than thirty (30)
days prior written notice will be provided to Seller before any
cancellation of coverage, shall be delivered to Seller prior to entry
upon the Real Property by Purchaser or any of Purchaser’s

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	 	 	 	Inspectors.
In any event, Purchaser shall cause Seller and Manager to be named as
additional insureds under all insurance coverages
afforded Purchaser by any and all of Purchaser’s Inspectors with
respect to the performance of any inspections.

          (i) Natural Hazard Disclosure. Purchaser hereby acknowledges that, prior to the date
of this Agreement, Seller has provided Purchaser with a Natural Hazard Disclosure Report (the
“California Natural Hazard Report”) prepared by LGS Reports, Inc. Purchaser acknowledges and
agrees that nothing contained in the California Natural Hazard Report releases Purchaser from its
obligation to fully investigate and satisfy itself with the condition of the Property during the
Due Diligence Period, including, without limitation, whether the Property is located in any
California Natural Hazard Area. Purchaser further acknowledges and agrees that the matters set
forth in the California Natural Hazard Report may change on or prior to the Closing and that Seller
has no obligation to update, modify or supplement the California Natural Hazard Report.

          (j) Existing Loan Assumption.

	 	(i)	 	Purchaser and Seller shall cooperate with each
other and with Lender in good faith and will otherwise use commercially
reasonable efforts to obtain, execute and deposit with Escrow Agent
prior to Closing an assumption agreement (the “Existing Loan Assumption
Agreement”), upon commercially reasonable terms and conditions and
acceptable to Seller and Purchaser in their reasonable discretion
(provided, however, that the release described in clause (B) of the
next sentence shall not be subject to Purchaser’s approval, as long as
such release does not impose any obligations on Purchaser). The
Existing Loan Assumption Agreement shall provide (A) for the assumption
by Purchaser of that certain Promissory Note (the “Promissory Note”) in
the original aggregate principal amount of Forty-Two Million Dollars
($42,000,000) in favor of Wachovia Bank, National Association
(“Lender”), secured by that certain Deed of Trust, Security Agreement,
Assignment of Rents and Fixture Filing in favor of First American Title
Insurance Company, as trustee for the benefit of Lender, dated February
23, 2007, and recorded on February 27, 2007, as Instrument No.
2007-I344231-00 in Reel J336, Image 0144 in the Official Records of the
City and County of San Francisco (the “Deed of Trust” and together with
the Promissory Note and all related loan documents, the “Existing Loan
Documents”) and (B) for the release of all obligations of Seller and
its Affiliates accruing on and after the Closing Date under the loan
evidenced thereby (the “Existing Loan”) (including, without limitation,
the release of all of the obligations of Kimpton Development
Opportunity Fund, L.P., accruing on and after the Closing Date under
that Guaranty in favor of Lender dated February 23, 2007 (the
“Guaranty”)).

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	 	(ii)	 	Purchaser shall comply with all reasonable
requirements of Lender with respect to such the Existing Loan
Assumption Agreement, including, without limitation, the provision of
financial information for Purchaser and its Affiliates and the
provision of a guaranty to replace the Guaranty by an entity acceptable
to Lender. Purchaser and Seller shall each be responsible for the
payment of one-half of any and all costs and fees required by the
Lender or incurred by either Party (including the legal expenses of
each Party) related to such application for assumption including,
without limitation, any loan assumption fees; provided that neither
Party shall be required to contribute more than $50,000 in respect of
such costs and fees incurred by the other Party.
	 
	 	(iii)	 	Prior to Closing, Seller shall use
commercially reasonable efforts to cause Lender to deposit with Escrow
Agent a beneficiary statement or other evidence satisfactory to
Purchaser in its reasonable discretion confirming the remaining term of
the Promissory Note to be assumed by Purchaser and the aggregate
principal indebtedness encumbering the Property outstanding as of the
first day of the month in which the Closing shall occur (the
“Beneficiary Statement”), which amount (the “Existing Loan Amount”)
shall be credited against the Purchase Price at Closing.

          (k) Ground Lease Condition. Promptly following the date of this Agreement, Seller
shall use diligent, good faith efforts to expeditiously obtain, with Purchaser’s cooperation, (i)
the written consent of the Ground Lessor to Purchaser’s assumption of the Ground Lease, and (ii) an
estoppel certificate from the Ground Lessor indicating that the Ground Lease is in full force and
effect and neither party is in default thereunder.

          (l) Management Agreement Amendment. Prior to Closing, Purchaser or Purchaser’s
designee (which shall be an entity with a leasehold interest in the Hotel) and Manager shall, and
Seller shall cause Manager to, execute an amendment to the Management Agreement containing the
terms set forth in Exhibit F attached hereto and such other terms as may be agreed by the
parties in a form agreed by the parties prior to the end of the Due Diligence Period (the
“Management Agreement Amendment”), which shall be effective upon Closing.

     Section 4.2. Title and Survey.

          (a) Preliminary Report and Existing Survey. Purchaser has received a copy of the
Preliminary Report, together with a copy of all documents referenced therein obtained from the
Title Company. In addition, Purchaser has received a copy of the ALTA survey of the Real Property
prepared by Tronoff Associates and dated January 23, 2007 (the “Existing Survey”).

          (b) Permitted Exceptions. Purchaser shall accept title to the Property at Closing
subject to (1) all real estate taxes and assessments not due and payable as of the Closing Date,
(2) the matters disclosed as exception nos. 1 through 14 in the Preliminary Report and any other
matters disclosed by the Existing Survey, (3) all Tenant Leases, (4) any and all liens and

18

 

encumbrances created by Purchaser, (5) any Additional Title Matters not objected to by
Purchaser pursuant to Section 4.2(c) and (6) the Ground Lease. The foregoing items (1) through (6)
are referred to collectively in this Agreement as the “Permitted Exceptions”.

          (c) Additional Title Matters. If any updated preliminary title report, title
commitment or survey from time to time disclose any additional exceptions to title or survey
defects or other matters (“Additional Title Matters”) not previously disclosed on the Preliminary
Report or the Existing Survey, which Additional Title Matters are not acceptable to Purchaser, then
Purchaser shall have the right to make objections to such Additional Title Matters (“Title
Objections”) within five (5) Business Days after receipt of such updated preliminary title report,
title commitment or survey (as the case may be). The absence of a timely notice by Purchaser of
Title Objections with respect to any Additional Title Matters in accordance with the preceding
sentence shall be deemed to constitute Purchaser’s acceptance of such Additional Title Matters.
Within three (3) Business Days after receipt of any Title Objections (“Seller’s Title Response
Period”), Seller shall give Purchaser written notice (“Seller’s Title Notice”) of whether it agrees
to cure the Title Objections; provided that, except as expressly set forth below, Seller shall have
no obligation to cure any Title Objections. Any Title Objections that Seller expressly agrees in
writing to cure shall be cured by Seller prior to Closing, and the cure of such Title Objections
shall be a condition precedent to Purchaser’s obligation to consummate the Closing hereunder.
Seller may cure any Title Objection by causing the Title Company to waive or commit to insure over
such Title Objection at any time prior to Closing. If Seller does not agree in writing during
Seller’s Title Response Period to cure every Title Objection identified by Purchaser at or prior to
Closing, Seller shall not be obligated to cure such Title Objections, and Purchaser’s sole recourse
shall be to terminate this Agreement at or prior to the later of (x) the expiration of the Due
Diligence Period, or (y) two (2) Business Days following the end of Seller’s Title Response Period
(and if Purchaser does not elect to terminate this Agreement within such period, Purchaser shall be
deemed to have withdrawn its Title Objections). Notwithstanding the foregoing, Seller shall
release or cause to be released (and for purposes of clause (ii) below the term “release” shall
also include bonding off) (i) any mortgages, deeds of trust or other security interests (other than
documents evidencing or securing the Existing Loan), provided, however, such liens may continue to
encumber the Property at Closing if the Title Company is willing to insure over such liens in a
manner acceptable to Purchaser and such liens are released promptly following the Closing; and (ii)
any encumbrances voluntarily created after the date hereof by Seller without Purchaser’s prior
consent in breach of this Agreement. Seller’s obligation to cause the release or bonding-off of
any such liens and encumbrances pursuant to the immediately preceding sentence shall survive
Closing.

          (d) Extension of Closing Date. If Seller is unable to cure any Title Objection(s)
prior to Closing, Seller shall have the right to postpone the Closing and extend the Closing Date
for up to thirty (30) days by providing written notice to Purchaser no later than three (3)
Business Days prior to the originally scheduled Closing Date.

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ARTICLE V

SELLER’S REPRESENTATIONS AND WARRANTIES

     Section 5.1. Representations and Warranties. To induce Purchaser to enter into this
Agreement and to consummate the transaction contemplated herein, Seller hereby makes the
representations and warranties in this Section 5.1, subject to the limitations set forth in
Sections 5.2, 5.4 and 5.5.

          (a) Organization and Power. Seller is duly formed and validly existing in the State
of California and duly qualified to do business in the State of California and has all requisite
power and authority to own and operate the Property and the Hotel as currently owned and operated.

          (b) Authority and Binding Obligation. (i) Seller has full power and authority to
execute and deliver this Agreement and all documents now or hereafter to be executed and delivered
by Seller under this Agreement, and to perform all obligations arising under this Agreement and
such other documents, (ii) the execution by the undersigned on behalf of Seller, and the delivery
and performance of this Agreement by Seller has been duly and validly authorized by all necessary
action on the part of Seller, and (iii) this Agreement, the Seller Closing Documents and such other
documents now or hereafter to be executed and delivered by Seller under this Agreement, when
executed and delivered, will each constitute the legal, valid and binding obligations of Seller
enforceable against Seller in accordance with their respective terms, except to the extent
Purchaser itself is in default hereunder.

          (c) Consents and Approvals; No Conflicts. Subject to the recordation of any Closing
Documents as appropriate, and except as disclosed in Schedule 5.1(c), (i) no filing with,
and no permit, authorization, consent or approval of, any Governmental Authority or other Person is
necessary for the consummation by Seller of the transaction contemplated by this Agreement, and
(ii) neither the execution and delivery of this Agreement by Seller, nor the consummation by Seller
of the transaction contemplated under this Agreement, nor compliance by Seller with any of the
terms of this Agreement will: (A) violate any provision of Seller’s organizational or governing
documents; (B) violate any Applicable Law to which Seller is subject; (C) result in a violation or
breach of, or constitute a default under any of the Contracts, except to the extent such violation,
breach or default would not have a material adverse effect on the ownership or operation of the
Hotel or (D) result in the creation or imposition of any lien or encumbrance on the Property or any
portion thereof.

          (d) Title to Personal Property. Except as set forth in Schedule 5.1(d),
Seller has good and valid title to all tangible Personal Property (other than the Excluded
Property), which in each case shall be free and clear of all liens and encumbrances as of the
Closing.

          (e) Condemnation. Seller has not received any written notice of any pending
condemnation or other proceedings in eminent domain.

          (f) Compliance with Applicable Law and Environmental Laws. Except as set forth in
Schedule 5.1(f), Seller has not received any written notice of any claims, complaints,

20

 

notices, correspondence or written notice of any violation of any Applicable Law with respect
to the Hotel or the Property which has not been cured or dismissed. Except as set forth in
Schedule 5.1(f) or disclosed by any of Purchaser’s Inspections, any of Seller’s Due
Diligence Materials or the Environmental Report, (i) to Seller’s Knowledge the Hotel and Property
have been and continue to be owned and operated in compliance with all Environmental Laws; (ii)
Seller has not received any claims, complaints, notices, correspondence or requests for information
from any governmental authority with respect to any violation or alleged violation of any
Environmental Laws, any releases of Hazardous Substances or with respect to any corrective or
remedial action for or cleanup of the Hotel or the Property any portion thereof; (iii) to Seller’s
Knowledge, Seller has not transported, disposed of or treated, or arranged for the transportation,
disposal or treatment of, any Hazardous Substances to or from the Hotel or the Property in
violation of Environmental Laws; (iv) no written notification of a release or discharge of a
Hazardous Substance has been field by or on behalf of, or received by, Seller with respect to the
Hotel or the Property; (v) to Seller’s Knowledge, there are no underground storage tanks, at, in,
under or about the Hotel or Property and seller has not removed or installed any underground
storage from the Hotel or the Property; and (vi) to Seller’s Knowledge, no asbestos,
polychlorinated biphenyls or urea formaldehyde is or has been present at the Hotel or the Property
in violation of Environmental Laws.

          (g) Litigation. (i) To Seller’s Knowledge, except as set forth in Schedule
5.1(g), there are no legal suits or arbitrations pending against Seller, and (ii) Seller has
not (a) been served with any filing in any litigation, arbitration or administrative proceeding
with respect to the Property or the Hotel in which Seller is a named party, or (b) received written
notice of any charge or complaint from any Governmental Authority or other Person pursuant to any
administrative, arbitration or similar proceeding with respect to the Hotel which has not been
settled or dismissed.

          (h) Employees. Except as set forth in Schedule 5.1(h), there are no (i)
collective bargaining agreements with any labor union with respect to the Employees or the Property
or the Hotel, (ii) written employment or compensation agreements with any of the Employees (other
than written employment offers made by Seller, Manager or an Affiliate of Manager that (x) provide
for at-will employment with no more than two weeks’ notice of termination required and (y) do not
include any other binding terms or conditions of employment except for starting compensation terms)
(“Employment Agreements”), or (iii) Employee Plans.

          (i) Tenant Leases. Schedule 5.1(i) sets forth a correct and complete list of
the Tenant Leases for the Hotel, and Seller has made available to Purchaser a true and complete
copy of the Tenant Leases (including all amendments, modifications and other agreements with
respect thereto). Except as set forth in Schedule 5.1(i), Seller has neither given nor
received any written notice of any breach or default under any of the Tenant Leases which has not
been cured.

          (j) Contracts. Schedule 5.1(j) sets forth a correct and complete list of all
material (i.e., for an amount in excess of $10,000 in any year) Contracts (other than purchase
orders), and Seller has made available to Purchaser a true and complete copy of each of such
Contracts (including all amendments, modifications and other agreements with respect thereto).
Except as set forth on Schedule 5.1(j), Seller has neither given nor received any written
notice of any breach or default under any such Contracts which has not been cured.

21

 

          (k) Management Agreement. Seller has made available to Purchaser a true and complete
copy of the Management Agreement (including all amendments, modifications and other agreements with
respect thereto). The Management Agreement is in full force and effect, and Seller has neither
given nor received any notice of any breach or default under the Management Agreement which has not
been cured. To Seller’s knowledge, neither Seller nor Manager has asserted any right of
rescission, set-off, counterclaim or defense with respect to the Management Agreement.

          (l) Finders and Purchase/Sale Brokers. Except with respect to Jones Lang LaSalle
(“Broker”), which will be compensated solely by Seller pursuant to a separate agreement between
them, Seller has not dealt with any Person who has acted, directly or indirectly, as a broker,
finder, financial adviser or in such other capacity for or on behalf of Seller in connection with
the transaction contemplated by this Agreement in a manner which would entitle such Person to any
fee or commission in connection with this Agreement or the transaction contemplated in this
Agreement.

          (m) Foreign Person. Seller is a “United States person” (as defined in Section
7701(a)(30)(B) or (C) of the Code) for the purposes of the provisions of Section 1445(a) of the
Code.

          (n) Patriot Act. Neither Seller nor any controlling beneficial owner of Seller: (i)
is listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office
of Foreign Assets Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No.
133224, 66 Fed. Reg. 49079 (September 25, 2001) (the “Order”) and/or on any other list of
terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of
OFAC or pursuant to any other applicable orders (such lists are collectively referred to as the
“Lists”); (ii) is a person or entity who has been determined by competent authority to be subject
to the prohibitions contained in the Orders; or (iii) is owned or controlled by, or acts for or on
behalf of, any person or entity on the Lists or any other person or entity who has been determined
by competent authority to be subject to the prohibitions contained in the Order.

          (o) Ground Lease. Seller has made available to Purchaser a true and complete copy of
the Ground Lease (including all amendments, modifications and other agreements with respect
thereto). The Ground Lease is in full force and effect, and Seller has neither given nor received
any notice of any breach or default under the Ground Lease which has not been cured. To Seller’s
knowledge, neither Seller nor Ground Lessor has asserted any right of rescission, set-off,
counterclaim or defense with respect to the Ground Lease.

          (p) Existing Loan Documents. Schedule 5.1(p) contains a complete list of the
Existing Loan Documents. Seller has made available to Purchaser a true and complete copy of the
Existing Loan Documents (including all amendments, modifications and other agreements with respect
thereto). The Existing Loan Documents are in full force and effect, and Seller has neither given
nor received any notice of any breach or default under the Existing Loan Documents which has not
been cured.

          (q) Hotel Operating Statements. To Seller’s Knowledge, the operating statements of
the Hotel provided to Purchaser: (i) fairly present in all material respects the

22

 

financial condition of the Hotel as of the date thereof and the results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout the period covered
thereby and are free of material error or omission, except as otherwise expressly noted therein;
and (ii) show all material indebtedness and other liabilities, direct or contingent, of the Hotel
as of the date thereof that are required by GAAP to be reflected thereon, including liabilities for
taxes, material commitments and indebtedness.

     Section 5.2. Amendment to Schedules. Notwithstanding anything to the contrary in this
Agreement, promptly upon Seller obtaining Knowledge that a representation made in this Agreement by
Seller is untrue or inaccurate in any material respect, Seller shall have the right to amend and
supplement the foregoing representations and the related schedules to this Agreement from time to
time by providing a written copy of such amendment or supplement to Purchaser not later than two
(2) Business Days before the Closing Date (any such amendment or supplement provided to Purchase
not later than two (2) Business Days before the expiration of the Due Diligence Period shall be
deemed an “Amendment Notice”); provided, however, that it will remain a condition of Purchaser’s
obligations hereunder that Seller’s representations and warranties as stated herein (as amended or
modified by any Amendment Notice shall remain true and correct in all material respects as of the
date of the Closing and any amendment or supplement to the schedules to this Agreement not made
pursuant to an Amendment Notice shall not be considered for the purposes of determining whether the
Purchaser Closing Conditions have been satisfied under Section 8.2 or Purchaser’s remedies under
Section 12.1 of this Agreement, but shall have effect only for the purposes of limiting the defense
and indemnification obligations of Seller for the inaccuracy or untruth of the representation or
warranty qualified by such amendment or supplement, if Purchaser proceeds to Closing.

     Section 5.3. Limitation of Seller’s Representations and Warranties. The
representations and warranties of Seller in this Agreement and in any document to be delivered at
Closing to Purchaser pursuant to this Agreement are the sole representations and warranties of
Seller with respect to the transaction contemplated by this Agreement. Seller makes no
representation or warranty other than those set forth herein and therein, and, except for the
warranties and representations set forth herein and therein, the sale of the Property is made on an
“as-is, where-is” basis, without warranty.

     Section 5.4. Effect of Purchaser’s Knowledge. If Purchaser has Knowledge prior to
Closing of the inaccuracy of any representation or warranty made by Seller in this Agreement and
Purchaser nevertheless elects to close this transaction, such representation or warranty by Seller
with respect to such matter shall be deemed to be modified to reflect such Purchaser’s Knowledge.

     Section 5.5. Property Condition.

          (a) Disclaimer. Except for Seller’s express representations and warranties under this
Agreement (or any document, affidavit or certificate executed or delivered in connection herewith)
(collectively, the “Express Representations”), Seller hereby specifically disclaims any warranty,
guaranty, or representation, oral or written; past, present or future, of, as to, or concerning (i)
the nature and condition of the Property, including but not by way of limitation, the water, soil,
geology and the suitability thereof, for any and all activities and uses

23

 

which Purchaser may elect to conduct thereon, income to be derived therefrom or expenses to be
incurred with respect thereto, or any obligations or any other matter or thing relating to or
affecting the same; (ii) the manner of construction and condition and state of repair or lack of
repair of any improvements located thereon; (iii) the nature and extent of any easement,
right-of-way, lien, encumbrance or license reservation; and (iv) the compliance of the Property or
the operation of the Property with any laws, rules, ordinances, or regulations of any government or
other body. EXCEPT FOR THE EXPRESS REPRESENTATIONS, IN CONNECTION WITH THE CONVEYANCE OF THE
PROPERTY AS PROVIDED FOR HEREIN, SELLER HAS NOT MADE AND DOES NOT MAKE, ANY REPRESENTATIONS,
WARRANTIES OR COVENANTS OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, WITH
RESPECT TO THE QUALITY OR CONDITION OF THE PROPERTY, THE SUITABILITY OF THE PROPERTY FOR ANY AND
ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, COMPLIANCE BY THE PROPERTY WITH ANY
LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR HABITABILITY,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SPECIFICALLY, SELLER DOES NOT MAKE ANY
REPRESENTATIONS REGARDING HAZARDOUS WASTE, AS DEFINED BY THE LAWS OF THE STATE IN WHICH THE HOTEL
IS LOCATED AND ANY REGULATIONS ADOPTED PURSUANT THERETO OR THE U. S. ENVIRONMENTAL PROTECTION
AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR THE DISPOSAL OF ANY HAZARDOUS WASTE OR ANY OTHER
HAZARDOUS OR TOXIC SUBSTANCES IN OR ON THE PROPERTY. Except for the Express Representations,
Purchaser agrees to accept the Property at closing with the Property being in its present AS IS
condition WITH ALL FAULTS.

          (b) Property Condition. PURCHASER ACKNOWLEDGES AND AGREES THAT EITHER PURCHASER IS,
OR HAS ENGAGED AND IS RELYING ON PERSONS WHO ARE, EXPERIENCED IN THE OWNERSHIP, DEVELOPMENT AND/OR
OPERATION OF PROPERTIES SIMILAR TO THE PROPERTY AND THAT PURCHASER PRIOR TO THE CLOSING WILL HAVE
INSPECTED THE PROPERTY OR CAUSED THE PROPERTY TO BE INSPECTED TO ITS SATISFACTION AND IS QUALIFIED
TO MAKE SUCH INSPECTION. PURCHASER ACKNOWLEDGES THAT IT IS FULLY RELYING ON PURCHASER’S (OR
PURCHASER’S REPRESENTATIVES’) INSPECTIONS OF THE PROPERTY AND EXCEPT FOR THE EXPRESS
REPRESENTATIONS, NOT UPON ANY STATEMENT (ORAL OR WRITTEN) WHICH MAY HAVE BEEN MADE OR MAY BE MADE
(OR PURPORTEDLY MADE) BY SELLER OR ANY OF ITS REPRESENTATIVES. PURCHASER ACKNOWLEDGES THAT
PURCHASER HAS (OR PURCHASER’S REPRESENTATIVES HAD), OR PRIOR TO THE CLOSING WILL HAVE, THOROUGHLY
INSPECTED AND EXAMINED THE PROPERTY TO THE EXTENT DEEMED NECESSARY BY PURCHASER IN ORDER TO ENABLE
PURCHASER TO EVALUATE THE CONDITION OF THE PROPERTY AND ALL OTHER ASPECTS OF THE PROPERTY
(INCLUDING, BUT NOT LIMITED TO, THE ENVIRONMENTAL CONDITION OF THE PROPERTY); AND PURCHASER
ACKNOWLEDGES THAT PURCHASER IS RELYING SOLELY UPON ITS OWN (OR ITS REPRESENTATIVES’) INSPECTION,
EXAMINATION AND EVALUATION OF THE PROPERTY, EXCEPT FOR THE EXPRESS REPRESENTATIONS. EXCEPT FOR THE
EXPRESS REPRESENTATIONS, PURCHASER HEREBY EXPRESSLY ASSUMES ALL RISKS, LIABILITIES, CLAIMS, DAMAGES
AND

24

 

COSTS (AND AGREES THAT SELLER SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT,
CONSEQUENTIAL OR OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATED TO THE OWNERSHIP, USE,
CONDITION, LOCATION, MAINTENANCE, REPAIR OR OPERATION OF THE PROPERTY ARISING OR ACCRUING FROM AND
AFTER THE DATE OF CLOSING. PURCHASER EXPRESSLY WAIVES (TO THE EXTENT ALLOWED BY APPLICABLE LAW)
ANY CLAIMS UNDER FEDERAL, STATE OR OTHER LAW THAT PURCHASER MIGHT OTHERWISE HAVE AGAINST SELLER
RELATING TO THE USE, CHARACTERISTICS OR CONDITION OF THE PROPERTY EXCEPT AS OTHERWISE EXPRESSLY
PROVIDED BY THIS AGREEMENT. ANY REPAIRS PAID FOR BY SELLER PURSUANT TO THIS AGREEMENT, IF ANY,
SHALL BE DONE WITHOUT ANY WARRANTY OR REPRESENTATION BY SELLER, AND SELLER HEREBY EXPRESSLY
DISCLAIMS ANY WARRANTY OR REPRESENTATION OF ANY KIND IN CONNECTION WITH SUCH REPAIRS.

          (c) Environmental Status. Without limiting the foregoing, Purchaser acknowledges that
it has had or will have an opportunity to become familiar with the environmental status of the Real
Property and that Purchaser shall make its own evaluation of and business decision regarding the
foregoing, without any representation or warranty by Seller or any of its Affiliates.
Notwithstanding any indemnification obligation of Seller under this Agreement, Purchaser does
hereby forever release and discharge the Seller Indemnitees from any and all Environmental Claims
and Environmental Liabilities, whether now known or unknown to Purchaser; provided, however, that
such release and discharge shall not apply to any indemnification obligation of Seller under this
Agreement, to the extent resulting from a breach of Seller’s representation or warranty set forth
in Section 5.1(f).

          (d) Purchaser further agrees and acknowledges that, in giving the foregoing waivers and
releases, it has with its legal counsel, considered any statute or other law that might apply to
and limit the effect of Purchaser’s waiver and release herein and hereby knowingly waives the
benefits of any such law and intends that it not be applicable here, including, but not limited to
the provisions of California Civil Code Section 1542, which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

	 	 	 	 	 
	 	 	 
	 	                                                      /s/ TCF
 	 
	 	Purchaser’s Initials 	 
	 	 	 
	 

          (e) This Section 5.5 shall survive the Closing.

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ARTICLE VI

PURCHASER’S REPRESENTATIONS AND WARRANTIES

     Section 6.1. Representations and Warranties. To induce Seller to enter into this
Agreement and to consummate the transaction contemplated hereby, Purchaser hereby makes the
representations and warranties in this Section 6.1.

          (a) Organization and Power. Purchaser is duly incorporated or formed (as the case may
be), validly existing and in good standing in the jurisdiction of its formation or organization,
and has all requisite power and authority to own, lease and operate its properties and to carry on
its business as now being conducted.

          (b) Authority and Binding Obligation. (i) Purchaser has full power and authority to
execute and deliver this Agreement and all documents now or hereafter to be executed and delivered
by Purchaser under this Agreement, and to perform all obligations arising under this Agreement and
such other documents, (ii) the execution by the undersigned on behalf of Purchaser, and the
delivery and performance of this Agreement by Purchaser has been duly and validly authorized by all
necessary action on the part of Purchaser, and (iii) this Agreement, the Purchaser Closing
Documents and such other documents now or hereafter to be executed and delivered by Purchaser under
this Agreement, when executed and delivered, will each constitute the legal, valid and binding
obligations of Purchaser enforceable against Purchaser in accordance with its terms, except to the
extent Seller itself is in default hereunder.

          (c) Consents and Approvals; No Conflicts. (i) Except in connection with the transfer
of the Licenses and Permits, no filing with, and no permit, authorization, consent or approval of,
any Governmental Authority or other Person is necessary for the consummation by Purchaser of its
obligations under this Agreement, and (ii) neither the execution and delivery of this Agreement by
Purchaser, nor the consummation by Purchaser of the transaction contemplated under this Agreement,
nor compliance by Purchaser with any of the terms of this Agreement will: (A) violate any provision
of the organizational or governing documents of Purchaser; (B) violate any Applicable Law to which
Purchaser is subject; or (C) result in a violation or breach of or constitute a default under any
contract, agreement or other instrument or obligation to which Purchaser is a party or by which
Purchaser is bound, except to the extent such violation, breach or default would not have a
material adverse effect on the Purchaser’s ability to consummate the transactions contemplated
hereby or Purchaser’s ownership or operation of the Hotel from and after the Closing.

          (d) Finders and Investment Brokers. Except with respect to Broker in connection with
the purchase transaction, neither Purchaser nor any of its Affiliates has dealt with any Person who
has acted, directly or indirectly, as a broker, finder, financial adviser or in such other capacity
for or on behalf of Purchaser or its Affiliates in connection with the transaction contemplated by
this Agreement in any manner which would entitle such Person to any fee or commission by, through
or under Purchaser or any of its Affiliates in connection with this Agreement or the transaction
contemplated in this Agreement.

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          (e) Patriot Act. Neither Purchaser nor any controlling beneficial owner of Purchaser:
(i) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC
pursuant to the Order and/or on any other Lists; (ii) is a person or entity who has been determined
by competent authority to be subject to the prohibitions contained in the Orders; or (iii) is owned
or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other
person or entity who has been determined by competent authority to be subject to the prohibitions
contained in the Order.

     Section 6.2. Effect of Seller’s Knowledge. If Seller has Knowledge prior to Closing
of the inaccuracy of any representation or warranty made by Purchaser in this Agreement and Seller
nevertheless elects to close this transaction, such representation or warranty by Purchaser with
respect to such matter shall be deemed to be modified to reflect such Seller’s Knowledge.

ARTICLE VII

COVENANTS

     Section 7.1. Confidentiality; Exclusivity.

          (a) Disclosure of Confidential Information; Public Announcements. Seller and
Purchaser shall keep confidential and not make any public announcement or disclose to any Person
the existence or any terms of this Agreement, any information disclosed by the Inspections or in
the Seller Due Diligence Materials or any other documents, materials, data or other information
with respect to the Hotel which is not generally known to the public (the “Confidential
Information”). Notwithstanding the foregoing, Seller and Purchaser shall be permitted to (i)
disclose any Confidential Information to the extent required by court order or under Applicable
Law, or (ii) disclose any Confidential Information to any Person on a “need-to-know” basis, such as
their respective shareholders, partners, members, trustees, beneficiaries, directors, officers,
employees, attorneys, consultants, engineers, surveyors, lenders, investors, managers, franchisors
and such other Persons whose assistance is required to consummate the transactions contemplated in
this Agreement or to whom notice of this transaction may be required pursuant to the Contracts or
Applicable Law, or with whom communication may be required to accomplish the assignment of the
Licenses and Permits, the Contracts, the Ground Lease, the Existing Loan or the Leases; provided,
however, that Purchaser or Seller (as applicable) shall, to the extent consistent with Applicable
Law, (a) advise such Person of the confidential nature of such Confidential Information, and (b)
use commercially reasonable efforts to cause such Person to maintain the confidentiality of such
information. However, after Closing, either Party may, with the other Party’s consent (not to be
unreasonably withheld, conditioned or delayed), release a press notice relating to, or otherwise
announce or disclose the acquisition of, the Property. Notwithstanding the foregoing, if Purchaser
determines, after consultation with counsel, that it is required by Federal or state securities
laws or regulations to publicly disclose the existence or terms of this Agreement, before or after
Closing occurs, Purchaser shall allow Seller a reasonable period of time, not to exceed two (2)
Business Days, to review Purchaser’s proposed disclosure in advance of Purchaser making such
disclosure but, for the avoidance of doubt, Purchaser shall be permitted to make such disclosure
and shall not be required to obtain the consent of Seller prior to making such disclosure. This
Section 7.1(a) shall survive Closing and the termination of this Agreement.

27

 

          (b) Return of Seller Due Diligence Materials. If this Agreement is terminated, (i)
Purchaser promptly shall destroy or return all Seller Due Diligence Materials provided by Seller to
Purchaser, and all copies and other reproductions of the Seller Due Diligence Materials made by
Purchaser and/or any of its agents, and shall certify to Seller in writing that Purchaser has
destroyed or returned all such materials, and (ii) upon Seller’s request, Purchaser shall promptly
deliver to Seller copies of all third-party reports prepared by or for Purchaser in connection with
Purchaser’s inspections of the Property if contractually permitted to do so and upon reimbursement
by Seller of Purchaser’s costs for such reports. This Section 7.1(b) shall survive the termination
of this Agreement.

          (c) Communication with Employees. Purchaser shall not, through its employees,
managers, agents, representatives investors, or any other Person, directly or indirectly, initiate
or pursue any communication with any Employees or any Person representing any Employees involving
any matter with respect to the Hotel, the Employees, or this Agreement, or the transaction
contemplated hereunder, without the prior consent of Seller, which consent may be withheld in
Seller’s sole discretion, unless such communication is arranged by Seller. Notwithstanding the
foregoing, Purchaser shall have the right to interview each of the General Manager, the Director of
Sales and Marketing or such person in charge of sales and marketing for the Hotel, the most senior
F&B manager, the revenue manager and the controller of the Hotel during the Due Diligence Period in
connection with the Inspections and thereafter, provided that Purchaser shall have coordinated such
communication through Seller and Seller has the right and opportunity to be present during any such
communication with the General Manager, the Director of Sales and Marketing or such person in
charge of sales and marketing for the Hotel, the most senior F&B manager, the revenue manager or
controller of the Hotel or any other Employee.

     Section 7.2. Operation of the Hotel Prior to Closing.

          (a) Operation in Ordinary Course of Business. From the Effective Date until the
Closing or earlier termination of this Agreement, Seller shall use commercially reasonable efforts
to cause Manager to operate the Property and Hotel in the Ordinary Course of Business, including,
without limitation, (i) maintaining all existing insurance coverages for the Hotel, (ii)
maintaining the inventories of Supplies, F&B and Retail Merchandise in the Ordinary Course of
Business, (iii) performing maintenance and repairs for the Property and Hotel in the Ordinary
Course of Business, and (iv) maintain all Licenses and Permits in full force and effect; provided,
however, that Seller shall be permitted to inform vendors of the impending sale of the Hotel.

          (b) Contracts. From the Effective Date until the Closing or earlier termination of
this Agreement, Seller shall not (i) amend, modify, extend, renew or terminate any existing Tenant
Leases, material Contracts (i.e., for an amount in excess of $10,000 in any year, and excluding
purchase orders), Licenses and Permits, the Ground Lease or the Management Agreement (except for
the Management Agreement Amendment to be agreed upon pursuant to Section 4.1(l)), in each case
without prior written notice to Purchaser, and further, after the expiration of the Due Diligence
Period, without Purchaser’s prior written consent which shall not be unreasonably withheld,
conditioned or delayed, except in the Ordinary Course of Business, nor (ii) enter into any new
Tenant Leases or Contracts (other than purchase orders), unless such

28

 

new Tenant Leases or Contracts are terminable by Purchaser, without any termination fee, upon
not more than thirty (30) days notice.

     Section 7.3. Licenses and Permits. Purchaser shall be responsible for obtaining the
transfer of all Licenses and Permits (to the extent transferable) or the issuance of new Licenses
and Permits. Purchaser, at its cost and expense, shall submit all necessary applications and other
materials to the appropriate Governmental Authority and take such other actions required on the
part of Purchaser to effect the transfer of Licenses and Permits or issuance of new licenses and
permits as of the Closing. Seller shall use commercially reasonable efforts (at no cost or expense
to Seller, other than any de minimis cost or expense or any cost or expense which Purchaser agrees
in writing to reimburse) to cooperate with Purchaser to cause the Licenses and Permits to be
transferred at Closing or new licenses and permits to be issued to Purchaser at Closing.
Notwithstanding anything to the contrary in this Section 7.3, Purchaser shall not post any notices
at the Hotel or publish any notices required for the transfer of the Licenses and Permits or
issuance of new licenses and permits prior to the expiration of the Due Diligence Period.

     Section 7.4. Bookings. Purchaser shall honor all Bookings made prior to the Closing
Date for any period on or after the Closing Date; provided, however, that from the Effective Date
until the Closing or earlier termination of this Agreement, Seller shall not make any Bookings for
any period on or after the Closing Date which are not in the Ordinary Course of Business without
Purchaser’s prior approval.

     Section 7.5. Tax Contests.

          (a) Taxable Period Terminating Prior to Closing Date. Seller shall retain the right
to commence, continue and settle any proceeding to contest any Taxes for any taxable period which
terminates prior to the Closing Date, and shall be entitled to any refunds or abatements of Taxes
awarded in such proceedings for periods prior to the Closing Date.

          (b) Taxable Period Including the Closing Date. With Purchaser’s consent, which shall
not be unreasonably withheld, Seller shall have the right to commence, continue and settle any
proceeding to contest any Taxes for any taxable period which includes the Closing Date.
Notwithstanding the foregoing, if Purchaser desires to contest any Taxes for such taxable period
and Seller has not then commenced any proceeding to contest any such Taxes for such taxable period,
Purchaser shall provide written notice requesting that Seller contest such Taxes. If Seller
desires to contest such Taxes, Seller shall provide written notice to Purchaser within thirty (30)
days after receipt of Purchaser’s request confirming that Seller will contest such Taxes, in which
case Seller shall proceed to contest such Taxes, and Purchaser shall not have the right to contest
such Taxes. If Seller fails to provide such written notice confirming that Seller will contest
such Taxes within such thirty (30) day period, Purchaser shall have the right to contest such
Taxes. Any refunds or abatements awarded in such proceedings shall be used first to reimburse the
Party contesting such Taxes for the reasonable costs and expenses incurred by such Party in
contesting such Taxes, and the remainder of such refunds or abatements shall be prorated between
Seller and Purchaser as of the Cut-Off Time, and the Party receiving such refunds or abatements
promptly shall pay such prorated amount due to the other Party.

29

 

          (c) Taxable Period Commencing On or After Closing Date. Purchaser shall have the
right to commence, continue and settle any proceedings to contest Taxes for any taxable period
which commences on or after the Closing Date, and shall be entitled to any refunds or abatements of
Taxes awarded in such proceedings.

          (d) Cooperation. Seller and Purchaser shall use commercially reasonable efforts to
cooperate with the Party contesting the Taxes (at no out-of-pocket cost or expense to the Party not
contesting the Taxes other than any de minimis cost or expense or any cost or expense which the
requesting Party agrees in writing to reimburse) and to execute and deliver any documents and
instruments reasonably requested by the Party contesting the Taxes in furtherance of the contest of
such Taxes.

     Section 7.6. Notices and Filings. Seller and Purchaser shall use commercially
reasonable efforts to cooperate with each other (at no out-of-pocket cost or expense to the Party
whose cooperation is requested, other than any de minimis cost or expense or any cost or expense
which the requesting Party agrees in writing to reimburse) to provide any required written notice
to any Person under any Tenant Leases, Contracts, Licenses and Permits, and to effect any
registrations or filings with any Governmental Authority or other Person, regarding the change in
ownership or operation of the Hotel.

     Section 7.7. Further Assurances. From the date of this Agreement until the Closing or
termination of this Agreement, Seller and Purchaser shall use commercially reasonable efforts to
take, or cause to be taken, all actions and to do, or cause to be done, all things necessary,
proper or advisable to consummate the transaction contemplated in this Agreement, including,
without limitation, (i) obtaining all necessary consents, approvals and authorizations required to
be obtained from any Governmental Authority or other Person under this Agreement or Applicable Law,
and (ii) effecting all registrations and filings required under this Agreement or Applicable Law.
After the Closing, Seller and Purchaser shall use commercially reasonable efforts (at no cost or
expense to such Party, other than any de minimis cost or expense or any cost or expense which the
requesting Party agrees in writing to reimburse) to further effect the transaction contemplated in
this Agreement.

     Section 7.8. Employee Matters.

          (a) As of the date hereof, Seller is the employer of the Employees, provided, however, prior
to the Closing Date, Seller and Manager intend to transition the employment of the Employees from
Seller to Manager (or an Affiliate of Manager) (“Employment Transition”). Commencing on the date
on which the Employment Transition occurs and continuing thereafter (including from and after the
Closing), Manager (or an Affiliate) as agent for Seller or Purchaser (as applicable) will be the
employer of the Employees. The pre-existing Employee Plans will continue in effect with respect to
the Employees after the Employment Transition, and the Employees’ employment with Manager (or its
Affiliate) shall be at salaries, wages and/or other compensation and with benefits 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 date of the Employment Transition.

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          (b) Subject to this Section 7.8 and Section 10.1, (i) Seller shall retain all liabilities and
obligations in connection with (A) any employment claims, charges or grievances by any Employees to
the extent resulting from events or occurrences prior to the Closing Date, and (B) Employee Plans,
to the extent of liabilities and obligations accruing prior to the Closing Date; and (ii) Purchaser
shall assume all liabilities and obligations in connection with (A) any employment claims, charges
or grievances by any Employees to the extent resulting from events or occurrences on or after the
Closing Date, and (B) Employee Plans, to the extent of liabilities and obligations accruing on or
after the Closing Date.

     Section 7.9. Brokerage Commissions. Each Party agrees that should any claim be made
for brokerage commissions or finder’s fees by any broker or finder other than the Broker (it being
acknowledged and agreed that Seller is responsible for any brokerage commission payable to Broker)
by, through or on account of any acts of said Party or its representatives, said Party will
indemnify and hold the other Party free and harmless from and against any and all loss, liability,
cost, damage and expense in connection therewith.

     Section 7.10. Re-Sale Number. At or prior to the Closing, Purchaser shall have
obtained a Seller’s Permit for the sale of goods held for resale from the California State Board of
Equalization. Commencing upon the expiration of the Due Diligence Period, Purchaser shall
diligently pursue issuance of the Seller’s Permit. Seller shall cooperate with Purchaser’s efforts
to obtain the Seller’s Permit and shall not take actions which will likely delay or inhibit
Purchaser from obtaining the Seller’s Permit.

     Section 7.11. Independent Audit. From and after the date hereof until two (2) years
after the closing, Seller shall make the books and records for the years ended December 31, 2009,
2008 and 2007 and interim periods as require by the rules and regulations of the Securities and
Exchange Commission (“SEC”) of the Property/Seller available to Purchaser and Purchaser’s
independent accountants for inspection, copying and audit by Purchaser’s designated accountants at
the expense of the purchaser. Seller will provide the Purchaser’s independent accountants with a
management representation letter with respect to the audited historical financial statements of the
Property/Seller for the years ended December 31, 2009, 2008, and 2007 and any unaudited interim
period required by the rules and regulations of the SEC. Seller shall provide Purchaser with
copies of, or access to, such factual information, accounting records and financial information as
may be reasonably requested by Purchaser or its auditors, and in the possession or control of
Seller, to enable Purchaser or its affiliates to file reports or registration statements in
compliance with the rules and regulations of the SEC. This Section 8.1(e) shall survive the
closing for two (2) years.

     Section 7.12. Repairs. Seller shall use diligent efforts to complete the repairs
described in Schedule 5.1(f) to Purchaser’s reasonable satisfaction at Seller’s expense prior to
Closing; provided that if, despite the exercise of diligent efforts, Seller is unable to complete
such repairs by Closing (for example, due to delays in the issuance of the necessary permits),
Seller shall enter into an escrow agreement at Closing with Purchaser and Escrow Agent in a form
reasonably agreed by Seller and Purchaser that provides for the Escrow Agent to retain out of the
Purchase Price following Closing the amount mutually agreed by Purchaser and Seller as of the
Closing Date to be required to complete such repairs, which amount shall be disbursed to Purchaser
as provided therein to pay for the costs of completing such repairs (with any balance

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remaining after such repairs are completed and paid for returned to Seller). This Section
7.12 shall survive the Closing.

     Section 7.13. Survival. The provisions of this Article VII survive the Closing.

ARTICLE VIII

CONDITIONS PRECEDENT

     Section 8.1. Conditions Precedent to the Obligations of Both Seller and Purchaser.
Subject to Section 8.4, the respective obligations of Seller and Purchaser to close the transaction
contemplated under this Agreement are subject to the satisfaction at or prior to the Closing Date
of the following conditions precedent (the “Mutual Closing Conditions”):

          (a) No preliminary or permanent injunction or other order, decree or ruling shall have been
issued by a court of competent jurisdiction or by any Governmental Authority which would make
illegal or invalid or otherwise prevent the consummation of the transaction contemplated under this
Agreement.

          (b) No Applicable Law shall have been enacted (or passed which upon enactment) which would
make illegal or invalid or otherwise prevent the consummation of the transaction contemplated under
this Agreement.

          (c) Lender, Purchaser and Seller shall have executed and delivered the Existing Loan
Assumption Agreement, which shall meet all requirements set forth for the same in Section 4.1(j)
(the “Existing Loan Assumption Condition”).

          (d) Ground Lease Condition. Ground Lessor shall have consented in writing to the
assumption of the Ground Lease, and provided an estoppel certificate with respect to the Ground
Lease, which shall meet all requirements set forth for the same in Section 4.1(k) (the “Ground
Lease Condition”).

     Section 8.2. Additional Conditions to Purchaser’s Obligations. Purchaser’s
obligations to close the transactions contemplated under this Agreement also are subject to the
satisfaction at or prior to Closing of the following conditions precedent (together with any other
Purchaser closing conditions expressly set forth elsewhere in this Agreement, the “Purchaser
Closing Conditions”):

          (a) Seller’s Deliveries. Seller shall have delivered to Purchaser or deposited with
Escrow Agent in the Closing Escrow for the benefit of Purchaser, Seller’s or, where applicable,
Manager’s signature to all of the Closing Documents and other items set forth in Section 9.3 to
which Seller or Manager, as applicable, is a party.

          (b) Representations and Warranties. The representations and warranties made by Seller
in this Agreement (as the same may be updated pursuant to Section 5.2 prior to the expiration of
the Due Diligence Period) shall be true and correct in all material respects as of the Closing as
if first made on and as of the Closing Date (except to the extent such representation or warranty
is made expressly as of another date).

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          (c) Covenants and Obligations. Seller shall have performed its covenants and
obligations under this Agreement in all material respects.

          (d) Title Policy. The Title Company shall have committed to issue an owner’s title
insurance policy to Purchaser (which may be in the form of a mark-up of the Preliminary Report) in
accordance with the Preliminary Report, insuring Purchaser’s leasehold interest in the Real
Property as of the Closing Date, subject only to the Permitted Exceptions (the “Title Policy”).

The Purchaser Closing Conditions are for the benefit of Purchaser, and Purchaser shall have the
right to waive any of the Purchaser Closing Conditions at or prior to Closing.

     Section 8.3. Additional Conditions to Seller’s Obligations. Seller’s obligations to
close the transactions contemplated under this Agreement are subject to the satisfaction at or
prior to Closing of the following conditions precedent (together with any other Seller closing
conditions expressly set forth elsewhere in this Agreement, the “Seller Closing Conditions”):

          (a) Receipt of the Purchase Price. Purchaser shall have deposited with the Escrow
Agent the Purchase Price (as adjusted pursuant to Section 3.4) and the Earnest Money and Seller has
received from Escrow Agent confirmation that Escrow Agent is prepared to release and pay the
Purchase Price (as adjusted pursuant to Section 3.4) and the Earnest Money to Seller in accordance
with Seller’s written instructions to Escrow Agent (provided that Seller may not terminate this
Agreement as a result of the failure of this closing condition if Seller is in default under this
Agreement pursuant to the terms of Section 12.1).

          (b) Purchaser’s Deliveries. Purchaser shall have delivered to Seller or deposited
with Escrow Agent in the Closing Escrow for the benefit of Seller, Purchaser’s signature to all of
the Closing Documents and other items set forth in Section 9.4 to which Purchaser is a party.

          (c) Representations and Warranties. The representations and warranties made by
Purchaser in this Agreement shall be true and correct in all material respects as of the Closing as
if first made on and as of the Closing Date (except to the extent such representation or warranty
is made expressly as of another date).

          (d) Covenants and Obligations. Purchaser shall have performed its covenants and
obligations under this Agreement in all material respects.

          (e) Release from Existing Loan. Seller and its applicable Affiliates shall have
received from Lender a written release of such parties, the form and substance of which shall be
acceptable to Seller in its sole discretion, from any and all further liability under or in
connection with the Existing Loan and the Existing Loan Documents on and after the earlier of the
Closing Date and the effective date of the Existing Loan Assumption Agreement, including, without
limitation, any and all further liability under or in connection with the Guaranty.

The Seller Closing Conditions are for the benefit of Seller, and Seller shall have the right to
waive any of the Seller Closing Conditions at or prior to Closing.

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     Section 8.4. Failure of Existing Loan Assumption Condition or Ground Lease Condition.
If either of the Existing Loan Assumption Condition or the Ground Lease Condition has not been
satisfied by the Closing Date, then either of Purchaser or Seller shall have the right to extend
the Closing Date for a period of up to one hundred twenty (120) days to provide Seller and
Purchaser the opportunity to satisfy the Existing Loan Assumption Condition or the Ground Lease
Condition, as applicable. The parties hereby agree to use good faith efforts to satisfy the
Existing Loan Assumption Condition or the Ground Lease Condition, as applicable, and to comply with
all reasonable requests of the Lender or Ground Lessor, as applicable, in connection therewith. If
the Existing Loan Assumption Condition or the Ground Lease Condition, as applicable, has not been
satisfied by the end of such one hundred twenty (120) day period, then the provisions of Section
12.3 shall apply.

ARTICLE IX

CLOSING

     Section 9.1. Closing Date. The closing of the transaction contemplated under this
Agreement (the “Closing”) shall occur no later than 10:00 a.m. Pacific time on January 12, 2011 (as
such date may be postponed pursuant to a specific provision of this Agreement, including without
limitation, Section 8.4), or such other date as agreed to in writing between Seller and Purchaser
(the date on which the Closing occurs is referred to herein as the “Closing Date”). The Closing
shall take place by exchange with the Escrow Agent of the Closing Documents by overnight mail and
other Closing deliveries by electronic media, provided that if a mail Closing is impracticable, the
Closing shall occur at the offices of Seller’s counsel or such other place as agreed to in writing
between Seller and Purchaser.

     Section 9.2. Closing Escrow. The Closing shall take place by means of a title company
escrow (the “Closing Escrow”). On or prior to the Closing Date, (i) each of Seller and Purchaser
shall cause its counterpart to all of the documents required to be delivered pursuant to this
Agreement (the “Closing Documents”) to be deposited with Escrow Agent; and (ii) Purchaser shall
cause the Purchase Price to be paid by Purchaser pursuant to Section 3.4 (as adjusted pursuant to
Section 3.4) to be deposited with Escrow Agent. At Closing, Escrow Agent shall deliver the Closing
Documents to Seller and Purchaser (as the case may be), and the Purchase Price (as adjusted
pursuant to Section 3.4) and the Earnest Money shall be disbursed to Seller in accordance with the
parties’ respective written instructions to Escrow Agent.

     Section 9.3. Seller’s Deliveries. At the Closing, Seller shall deliver or cause to be
delivered to Purchaser or deposited with the Title Company in the Closing Escrow for the benefit of
Purchaser all of the (i) documents, each of which shall have been duly executed by Seller (and
Ground Lessor, if applicable) and acknowledged (if required), and (ii) other items, set forth in
this Section 9.3, as follows:

          (a) A certificate confirming that the condition in Section 8.2(b) is satisfied as of the
Closing;

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          (b) A Management Agreement Assignment and Assumption Agreement, in the form of Exhibit
A, assigning the Management Agreement to Purchaser, with the assumption by Purchaser of the
liabilities and obligations thereunder from and after the Closing Date;

          (c) An assignment agreement or novation agreement satisfying the Ground Lease Condition, duly
executed by Ground Lessor and, if applicable, Seller;

          (d) A Bill of Sale in the form of Exhibit B, transferring the FF&E, Supplies, F&B and
Retail Merchandise to Purchaser;

          (e) An Assignment and Assumption of Leases and Contracts in the form of Exhibit C,
assigning the Tenant Leases, Equipment Leases and Operating Agreements to Purchaser, with the
assumption by Purchaser of the liabilities and obligations thereunder from and after the Closing
Date;

          (f) A General Assignment and Assumption Agreement in the form of Exhibit D, assigning
the Bookings, Licenses and Permits and Intangible Property, with the assumption by Purchaser of the
liabilities and obligations accruing thereunder from and after the Closing Date;

          (g) The Management Agreement Amendment duly executed by Manager;

          (h) The Existing Loan Assumption Agreement duly executed by Seller and Lender;

          (i) The Beneficiary Statement duly executed by Lender;

          (j) Such agreements, affidavits, evidence of Seller’s organization, authorization, power and
authority, and other documents as may be reasonably required by the Title Company from the Seller
to issue the Title Policy;

          (k) A Preliminary Change of Ownership Report and any other required real estate transfer tax
declaration or similar documents required in connection with any tax imposed by any Governmental
Authority in connection with the transaction contemplated hereunder;

          (l) A FIRPTA affidavit in the form set forth in the regulations under Section 1445 of the Code
and California Form 593, or any other corresponding state form required;

          (m) To the extent the Personal Property includes any vehicles owned by Seller, title to such
vehicle, executed by Seller in such manner as is required to convey ownership to Purchaser, and
registration materials;

          (n) All security deposits, if any, together with interest accrued or due thereon as may be
required by law or agreement or otherwise, to the extent not theretofore applied by Seller in
accordance with the terms of the Leases;

          (o) To the extent not previously delivered to Purchaser, all originals (or copies if originals
are not available) of the Contracts, Licenses and Permits, keys and lock combinations

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in Seller’s Possession, which shall be located at the Hotel on the Closing Date and deemed to
be delivered to Purchaser upon delivery of possession of the Hotel; and

          (p) Such other documents and instruments as may be reasonably requested by Purchaser in order
to consummate or better effectuate the transaction contemplated in this Agreement.

     Section 9.4. Purchaser’s Deliveries. At the Closing, Purchaser shall deliver or cause
to be delivered to Seller or deposited with Escrow Agent in the Closing Escrow for the benefit of
Seller all of the (i) documents, each of which shall have been duly executed by Purchaser and
acknowledged (if required), and (ii) other items, set forth in this Section 9.4, as follows:

          (a) A certificate confirming that the condition in Section 8.3(c) is satisfied as of the
Closing;

          (b) The Purchase Price to be paid by Purchaser pursuant to Section 3.4 (as adjusted pursuant
to such Section 3.4);

          (c) A counterpart of each of the documents and instruments to be delivered by Seller, Manager
(or Lender) under Section 9.3 which requires execution by Purchaser, including but not limited to,
the Management Agreement Amendment, the Existing Loan Assumption Agreement and the assignment and
assumption of the Ground Lease or the novation agreement relating to the Ground Lease (as
applicable);

          (d) Any additional documents required to be executed by Purchaser and/or any of its Affiliates
in connection with the assumption of the Existing Loan, including, without limitation, any
guaranties; and

          (e) Such other documents and instruments as may be reasonably requested by Seller or the Title
Company in order to consummate or better effectuate the transaction contemplated in this Agreement,
including, but not limited to, the “Seller’s Permit” described in Section 7.10.

     Section 9.5. Possession. Seller shall deliver the Property and possession of the
Hotel to Purchaser upon the Closing, subject to the Permitted Exceptions.

ARTICLE X

PRORATIONS; ACCOUNTS RECEIVABLE; TRANSACTION COSTS

     Section 10.1. Prorations. The items of revenue and expense with respect to the Hotel
set forth in this Section 10.1 shall be prorated between Seller and Purchaser (the “Prorations”) as
of 12:01 a.m. local time in the region in which the Hotel is located on the Closing Date, or such
other time expressly provided in this Section 10.1 (the “Cut-Off Time”), so that the Closing Date
is a day of income and expense for Purchaser. Purchaser shall receive a credit for any items of
expense in this Section 10.1 to the extent the same are accrued or due and payable but unpaid as of
the Cut-Off Time in which case Purchaser shall be obligated to pay such expense, and Seller shall
receive a credit for any of the items of expense in this Section 10.1 which have been

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paid prior to or at the Closing or will be paid by Seller after the Closing to the extent such
payment relates to any period of time after the Cut-Off Time. Except as set forth below, all items
of revenue and expense shall be determined in accordance with GAAP and with the Tenth Revised
Edition of the Uniform Systems of Accounts for the Lodging Industry, as published by the American
Hotel and Motel Association.

          (a) Taxes. All Taxes, except as set forth in Section 10.3(b) below, shall be prorated
as of the Cut-Off Time between Purchaser and Seller. If the amount of any such Taxes is not
ascertainable on the Closing Date, the proration for such Taxes shall be based on the tax rates set
forth in the most recent available bill and the latest assessed valuation of the Property;
provided, however, that after the Closing, Seller and Purchaser shall reprorate the Taxes and pay
any deficiency in the original proration to the other Party promptly upon receipt of the actual
bill for the relevant taxable period. Seller shall be responsible for all delinquent Taxes and
interest and penalties associated therewith relating to Taxes due and payable for its period of
ownership of the Hotel.

          (b) Tenant Leases. Any rents and other amounts paid under the Tenant Leases shall be
prorated as of the Cut-Off Time between Purchaser and Seller. Purchaser shall receive a credit for
all security deposits held by Seller under the Tenant Leases which are not transferred to
Purchaser, and Purchaser thereafter shall be obligated to refund or apply such deposits in
accordance with the terms of such Tenant Leases.

          (c) Contracts. Any amounts prepaid, accrued or due and payable under the Management
Agreement, the Ground Lease and the Contracts (other than for utilities which proration is
addressed separately in Section 10.1(e)), shall be prorated as of the Cut-Off Time between Seller
and Purchaser. Purchaser shall receive a credit for all deposits held by Seller under the
Contracts (together with all interest required by Applicable Law or the Contract in question) which
are not transferred to Purchaser, and Purchaser thereafter shall be obligated to refund or apply
such deposits in accordance with the terms of such Contracts. Seller shall receive a credit for
all deposits made by Seller under the Contracts (together with all interest thereon to the extent
required by Applicable Law or the Contract in question) which are transferred to Purchaser or
remain on deposit for the benefit of Purchaser.

          (d) Licenses and Permits. All amounts prepaid, accrued or due and payable under any
Licenses and Permits (other than for utilities which proration is addressed separately in Section
10.1(e)) transferred to Purchaser shall be prorated as of the Cut-Off Time between Seller and
Purchaser. Seller shall receive a credit for all deposits made by Seller under the Licenses and
Permits which are transferred to Purchaser or which remain on deposit for the benefit of Purchaser.

          (e) Utilities. All utility services (including, without limitation, electricity, gas,
water and sewer) shall be prorated as of the Cut-Off Time between Purchaser and Seller. To the
extent practicable, readings shall be obtained for all utilities as of the Cut-Off Time. If not
practicable, the cost of such utilities shall be prorated between Seller and Purchaser by
estimating such cost on the basis of the most recent bill for such service; provided, however, that
after the Closing, Seller and Purchaser shall reprorate the amount for such utilities and pay any
deficiency in the original proration to the other Party promptly upon receipt of the actual bill
for

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the relevant billing period. Seller shall receive a credit for all fuel stored at the Hotel
based on Seller’s cost for such fuel. Seller shall receive a credit for all deposits transferred
to Purchaser or which remain on deposit for the benefit of Purchaser with respect to such utility
contracts.

          (f) Compensation. All Compensation due to Employees shall be prorated as of the
Cut-Off Time, other than Accrued and Earned Vacation Pay and Earned and Accrued Sick Pay, which
shall be addressed in accordance with Section 10.1(g) below.

          (g) Accrued and Earned Vacation and Sick Leave. Purchaser shall receive a credit in
an amount equal to (i) one hundred percent (100%) of the Accrued and Earned Vacation Pay and (ii)
fifty percent (50%) of the Accrued and Earned Sick Pay as of the Cut-Off Time of all Employees.
Purchaser shall be responsible for the payment of such Accrued and Earned Vacation Pay and Accrued
and Earned Sick Pay to such Employees when payable in accordance with applicable laws.

          (h) Deposits for Bookings. Purchaser shall receive a credit for all prepaid deposits
for Bookings scheduled for accommodations or events on or after the Closing Date which Purchaser is
obligated to honor pursuant to this Agreement, except to the extent such deposits are transferred
to Purchaser.

          (i) Restaurants and Bars. Seller shall close out the transactions in the Hotel’s
restaurants and bars and any banquets therein as of the regular closing time for such restaurants
and bars during the night in which the Cut-Off Time occurs. All revenues and expenses of such
restaurants and bars shall be prorated as though the Cut-Off Time were as of the regular closing
time. Mini-bar revenues shall be divided equally between Seller and Purchaser for the night during
which the Cut-Off Time occurs.

          (j) Banquet and Meeting Room Revenues. Revenues from conferences, receptions,
meetings, and other functions occurring in any conference, banquet or meeting rooms in the Hotel,
or in any adjacent facilities owned or operated by Seller, including usage charges and related
taxes, cancellation charges, food and beverage sales, valet parking charges, equipment rentals, and
telecommunications charges, shall be allocated between Seller and Purchaser, based on when the
function therein commenced, with (i) one-day functions commencing prior to the Cut-Off Time being
allocable to Seller, (ii) functions commencing after the Cut-Off Time being allocable to Purchaser,
and (iii) multi-day functions being allocated between Seller and Purchaser according to when the
event commences and is scheduled to end, provided that multi-day functions that are charged on a
per diem basis shall be apportioned as one-day functions in accordance with (i) above.

          (k) Vending Machines. Seller shall remove all monies from all vending machines,
laundry machines, pay telephones and other coin-operated equipment as of the Cut-Off Time and shall
retain all monies collected therefrom as of the Cut-Off Time (and shall be responsible for and
settle with the vendor as to all commissions or royalties allocable thereto), and Purchaser shall
be entitled to any monies collected therefrom after the Cut-Off Time.

          (l) Trade Payables. Except to the extent an adjustment or proration is made under
another subsection of this Section 10.1, (i) Seller shall pay in full prior to the Closing all

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amounts payable to vendors or other suppliers of goods or services to the Hotel (the “Trade
Payables”) which are due and payable as of the Closing Date for which goods or services have been
delivered to the Hotel prior to Closing, and (ii) Purchaser shall receive a credit for the amount
of such Trade Payables which have accrued, but are not yet due and payable as of the Closing Date,
and Purchaser shall pay all such Trade Payables accrued as of the Closing Date when such Trade
Payables become due and payable up to the amount of such credit; provided, however, Seller and
Purchaser shall reprorate the amount of credit for any Trade Payables and pay any deficiency in the
original proration to the other Party promptly upon receipt of the actual bill for such goods or
services in accordance with the provisions of Section 11.1 below. Seller shall receive a credit
for all advance payments or deposits made with respect to FF&E, Supplies, F&B and Retail
Merchandise that have been ordered, but not delivered to the Hotel prior to the Closing Date, and
Purchaser shall pay the amounts which become due and payable for such FF&E, Supplies, F&B and
Retail Merchandise which were ordered prior to Closing.

          (m) Cash. Seller shall receive a credit for all cash on hand or on deposit in any
house bank at the Hotel which cash shall be transferred to Purchaser at Closing.

          (n) Vouchers. Purchaser shall receive a credit for all valid outstanding
certificates, coupons, vouchers or other writings entitling the holder or bearer thereof to a
credit (whether in a specified dollar amount or for a specified item, such as a room night or meal)
to be applied against the usual charge for rooms, meals and/or other goods or services at the Hotel
issued by Manager or Seller specifically with respect to the Hotel (collectively,
“Vouchers”), in an amount set forth in the following sentence; provided, however, that
Purchaser shall not receive a credit for any outstanding Voucher issued by Manager (i) that may be
redeemed at the Hotel or another hotel owned, operated or managed by Manager or any of its
Affiliates and (ii) for which Purchaser is entitled to reimbursement from Manager under the
Management Agreement. Each Voucher shall be valued and credited at an amount equal to (a) in the
case of Vouchers reflected on the balance sheet of Seller, one hundred percent (100%) of the amount
reflected on the balance sheet with respect to such Vouchers and (b) in the case of Vouchers not
reflected on the balance sheet of Seller, eighty percent (80%) of (i) face value, if issued in a
specified dollar amount, (ii) with respect to Vouchers issued for a free or discounted room, fifty
dollars ($50.00) per room night (or, if any payment is required to be made with such Voucher, the
amount (but not less than zero) by which fifty dollars ($50.00) exceeds such required payment), and
(iii) the estimated cost of the applicable goods or services, if issued for food, beverages, other
merchandise or service, including any sales and other excise taxes that Purchaser will be obligated
to pay upon honoring such Vouchers. After the Closing, Purchaser shall (a) honor all outstanding
Vouchers and (b) indemnify, defend and hold Seller harmless from and against all claims,
liabilities, costs and expenses arising out of the Vouchers from and after the Closing Date.

          (o) Other Adjustments and Prorations. To the extent not inconsistent with any of the
foregoing, all other items of income and expense as are customarily adjusted or prorated upon the
sale and purchase of a hotel property similar to the Hotel shall be adjusted and prorated between
Seller and Purchaser accordingly.

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     Section 10.2. Accounts Receivable.

          (a) Guest Ledger. At Closing, Seller shall receive a credit in an amount equal to:
(i) all amounts charged to the Guest Ledger for all room nights up to (but not including) the night
during which the Cut-Off Time occurs, and (ii) one-half (1/2) of all amounts charged to the Guest
Ledger for the room night which includes the Cut-Off Time (other than any restaurant or bar charges
for such room night, which are otherwise prorated under Section 10.1(i)), and Purchaser shall be
entitled to retain all deposits made and amounts collected for such Guest Ledger.

          (b) Accounts Receivable (Other than Guest Ledger and Other Amounts). At Closing,
Seller shall retain all Accounts Receivable (other than the Guest Ledger and other amounts the
proration of which is expressly addressed elsewhere in this Article X) and Seller shall be entitled
to continue to collect all such Accounts Receivable.

          Section 10.3. Transaction Costs.

          (a) Seller’s Transaction Costs. In addition to the other costs and expenses to be
paid by Seller set forth elsewhere in this Agreement, Seller shall pay for the following costs in
connection with this transaction: (i) the fees and expenses of its own attorneys and accountants;
(ii) one-half of the transfer taxes due and payable in connection with the assignment of the
Leasehold Interest; (iii) the fees and expenses of removing any Title Objections that Seller elects
to remove pursuant to Section 4.2(c); (iv) one-half of the fees and expenses for the Escrow Agent;
(v) one-half of any loan assumption fees and costs pursuant to Section 4.1(j)(ii) herein; and (vi)
one-half of any and all costs and fees required by the Ground Lessor (except for Purchaser’s and
Seller’s legal expenses) related to the application for assignment and estoppel certificate
described in Section 4.1(k).

          (b) Purchaser’s Transaction Costs. In addition to the other costs and expenses to be
paid by Purchaser set forth elsewhere in this Agreement, Purchaser shall pay for the following
costs in connection with this transaction: (i) the fees and expenses of its own attorneys and
accountants; (ii) one-half of the transfer taxes due and payable in connection with the conveyance
of the Real Property from Seller to Purchaser; (iii) the fees and expenses incurred by Purchaser
for Purchaser’s Inspectors or otherwise in connection with any inspections; (iv) all costs and
premiums for the Title Policy (including the premium or cost of the “extended-ALTA” coverage (over
the general exceptions) portion and/or the cost of any endorsements to the Title Policy), (v) the
cost of any updated title report, title commitment or survey that Purchaser may elect to obtain;
(vi) any recording charges payable in connection with the assignment of the Leasehold Interest;
(vii) one-half of the fees and expenses for the Escrow Agent; (viii) any sales taxes due and
payable in connection with the transfer of the Personal Property; (ix) one-half of any loan
assumption fees and costs pursuant to Section 4.1(j)(ii) herein; and (x) one-half of any and all
costs and fees required by the Ground Lessor (except for Purchaser’s and Seller’s legal expenses)
related to the application for assignment and estoppel certificate described in Section 4.1(k).

          (c) Other Transaction Costs. All other transaction fees, costs and expenses not
expressly addressed in this Section 10.3 or elsewhere in this Agreement shall be allocated

40

 

between Seller and Purchaser in accordance with applicable local custom for similar
transactions.

          (d) Seller and Purchaser shall cooperate in good faith to obtain bulk sales treatment of the
transfer of the Personal Property contemplated by this Agreement, to the greatest extent possible
under the law applicable in the jurisdiction in which the Property is located.

          (e) Seller and Purchaser specifically waive compliance with any applicable provisions of the
Uniform Commercial Code of California with respect to bulk transfers, with any similar provision
under any law applicable in the jurisdiction in which the Property is located. Seller shall
indemnify Purchaser for any claims made by creditors under the applicable bulk sales laws relating
solely to any pre-Closing payment obligations of Seller to such creditors and only in the amount of
the payments due such creditors.

The provisions of this Article X shall survive the Closing.

ARTICLE XI

TRANSITION PROCEDURES

     Section 11.1. Settlement Statement. No later than three (3) Business Days prior to
Closing, Seller shall prepare a first draft proration worksheet setting forth its determination of
the adjustments and Prorations to the Purchase Price, and promptly thereafter, Seller and Purchaser
through their respective employees, agents or representatives, jointly shall refine and revise such
proration worksheet and shall make such examinations, audits and inventories of the Hotel as may be
necessary to finalize the adjustments and Prorations to the Purchase Price as set forth in Sections
10.1 and 10.2 or any other provisions of this Agreement (including provisions related to the
Existing Loan Amount). Based upon such examinations, audits and inventories, Seller and Purchaser
jointly shall prepare prior to Closing a settlement statement (the “Settlement Statement”), which
shall set forth Seller’s and Purchaser’s best estimate of the amounts of the items to be adjusted
and prorated under this Agreement. The Settlement Statement shall be approved and executed by
Seller and Purchaser, and shall be binding and conclusive on Seller and Purchaser with respect to
the items set forth in the Settlement Statement, provided that, if, at any time within ninety (90)
days after the Closing Date, either Seller or Purchaser discovers any items which should have been
included in the Settlement Statement but were omitted therefrom or items which were incorrectly
adjusted or prorated therein, or has obtained accurate amounts for items that were prorated,
allocated or adjusted based upon estimates, such items shall be adjusted and prorated in the same
manner as if their existence or such error or accurate amount had been known at the time of the
preparation of the Settlement Statement, and the Party in whose favor such original error or
omission was made shall refund such difference to the other Party promptly after the original error
or omission is discovered. To the extent permitted under Applicable Law, Purchaser shall give
Seller access to Purchaser’s books and records from and after the Closing Date for the purpose of
making the adjustments contemplated by this Section 11.1. This Section 11.1 shall survive the
Closing.

     Section 11.2. Safe Deposit Boxes. Prior to the Closing, Seller shall notify all
guests or customers who are then using a safe deposit box at the Hotel advising them of the pending

41

 

change in ownership and operation of the Hotel and requesting them to conduct an inventory and
verify the contents of such safe deposit box. All inventories by such guests or customers shall be
conducted under the joint supervision of representatives of Seller and Purchaser. Upon such
inventory and verification, Seller shall deliver to Purchaser all keys, receipts and agreements for
such safe deposit box (and thereafter such safe deposit box shall deemed an “Inventoried Safe
Deposit Box”). If the Closing does not occur on the Closing Date for any reason whatsoever,
Purchaser immediately shall return all keys, receipts and agreements to Seller for such Inventoried
Safe Deposit Boxes. Upon Closing, Seller shall deliver to Purchaser all keys in Seller’s
Possession for all safe deposit boxes not then in use, and a list of all safe deposit boxes which
are then in use, but not yet inventoried by the depositor (the “Non-Inventoried Safe Deposit
Boxes”), with the name and room number of such depositor. After the Closing, Seller and Purchaser
shall make appropriate arrangements for guests and customers at the Hotel to inventory and verify
the contests of the Non-Inventoried Safe Deposit Boxes, and upon such inventory and verification,
Seller shall deliver to Purchaser all keys, receipt and agreements for such safe deposit box (and
such safe deposit box thereafter shall constitute an Inventoried Safe Deposit Box). Purchaser
shall be responsible for, and shall indemnify the Seller Indemnitees from and against any Losses
incurred with respect to, any theft, loss or damage to the contents of any safe deposit box from
and after the time such safe deposit box is deemed an Inventoried Safe Deposit Box pursuant to this
Section 11.2. Seller shall be responsible for, and shall indemnify the Purchaser Indemnitees from
and against any Losses incurred, with respect to, any theft, loss or damage to the contents of any
safe deposit box prior to the time such safe deposit box is deemed an Inventoried Safe Deposit Box.
This Section 11.2 shall survive the Closing.

     Section 11.3. Baggage. On the Closing Date, representatives of Seller and Purchaser
jointly shall make a written inventory of all baggage, boxes and similar items checked in or left
in the care of Seller at the Hotel, and Seller shall deliver to Purchaser the keys to any secured
area which such baggage and other items are stored (the “Inventoried Baggage”). Purchaser shall be
responsible for, and shall indemnify the Seller Indemnitees from and against any Losses incurred,
with respect to any theft, loss or damage to any Inventoried Baggage from and after the time of
such inventory, and any other baggage, boxes or similar items left in the care of Purchaser.
Seller shall be responsible for, and shall indemnify the Purchaser Indemnitees from and against any
Losses incurred, with respect to any theft, loss or damage to any Inventoried Baggage prior to the
time of such inventory, and any other baggage, boxes or similar items left in the care of Seller.
This Section 11.3 shall survive the Closing.

ARTICLE XII

DEFAULT; FAILURE OF CLOSING CONDITIONS

     Section 12.1. Seller’s Default. If (i) at any time prior to Closing, Seller is in
material default of any of its covenants or obligations under this Agreement, which default is not
caused by a Purchaser Default, or (ii) at Closing, Seller has not satisfied the Purchaser Closing
Conditions set forth in Sections 8.2(a), (b) or (c) (each, a “Seller Default”), and Seller has not
cured such Seller Default within three (3) Business Days after Seller’s receipt of written notice
of such Seller Default from Purchaser, then Purchaser, as its sole and exclusive remedies for such
Seller Default, may elect to (A) terminate this Agreement by written notice to Seller delivered
prior to Closing, in which case Escrow Agent shall promptly refund the Earnest Money

42

 

to Purchaser upon Purchaser’s satisfaction of its obligations under Section 7.1(b) and Seller
shall pay Purchaser its Termination Costs (as hereinafter defined) upon Purchaser’s written notice
to Escrow Agent and Seller that the same have become due, and the parties shall have no further
rights or liabilities under this Agreement except for those provisions which specifically provide
that they survive the termination of this Agreement; (B) waive the default and proceed to Closing
without any reduction in or setoff against the Purchase Price; or (C) bring an action for specific
performance. “Termination Costs” shall mean those reasonable costs actually incurred by Purchaser
in connection with its investigation and efforts to purchase the Property, including, without
limitation, actual reasonable fees and costs of counsel and consultants, all of which Termination
Costs shall be evidenced by written documentation reasonably acceptable to Seller, but in no event
shall the Termination Costs payable by Seller to Purchaser in connection with clause (A) of this
Section exceed $250,000. The provisions of this Section 12.1 shall survive the termination of this
Agreement.

     Section 12.2. Purchaser’s Default. If (i) Purchaser has not deposited the Earnest
Money within the time period provided in Section 3.3(a), (ii) at any time prior to Closing,
Purchaser is in material default of its covenants or obligations under this Agreement, which
default is not caused by a Seller Default, or (iii) at Closing, Purchaser has not satisfied any one
or more Seller Closing Conditions to be satisfied by Purchaser at or prior to Closing (each, a
“Purchaser Default”), and Purchaser has not cured such Purchaser Default within three (3) Business
Days after Purchaser’s receipt of written notice of such Purchaser Default from Seller, then
Seller, as its sole and exclusive remedy, may elect to terminate this Agreement by providing
written notice to Purchaser, in which case Purchaser shall cause Escrow Agent to disburse the
Earnest Money to Seller within two (2) Business Days after such termination, and Seller and
Purchaser shall have no further rights or obligations under this Agreement, except those which
expressly survive such termination. Purchaser’s obligation to cause Escrow Agent to disburse the
Earnest Money to Seller shall survive such termination. The provisions of this Section 12.2 shall
survive the termination of this Agreement.

     SELLER AND PURCHASER AGREE THAT IF THIS AGREEMENT IS TERMINATED PURSUANT TO THIS SECTION 12.2,
THE DAMAGES THAT SELLER WOULD SUSTAIN AS A RESULT OF SUCH TERMINATION WOULD BE DIFFICULT IF NOT
IMPOSSIBLE TO ASCERTAIN. ACCORDINGLY, SELLER AND PURCHASER AGREE THAT SELLER SHALL RETAIN THE
EARNEST MONEY AS FULL AND COMPLETE LIQUIDATED DAMAGES AND AS SELLER’S SOLE AND EXCLUSIVE REMEDY FOR
SUCH TERMINATION; PROVIDED, HOWEVER, THAT SELLER SHALL RETAIN ALL RIGHTS AND REMEDIES UNDER THIS
AGREEMENT WITH RESPECT TO THOSE OBLIGATIONS WHICH EXPRESSLY SURVIVE SUCH TERMINATION. THE PAYMENT
OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING
OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO
SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677.

	 	 	 	 	 	 	 	 	 	 	 

	Seller’s Initials:

	 	/s/ JCM
 

	 	 	 	Purchaser’s Initials:
	 	/s/ TCF
 

	 	 

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     Section 12.3. Failure to Satisfy Certain Closing Conditions. Notwithstanding the
foregoing, but subject to the provision of Section 12.5, if (i) the Mutual Closing Conditions set
forth in Sections 8.1(a) and (b) have not been satisfied or waived prior to Closing or (ii) the
Existing Loan Assumption Condition or the Ground Lease Condition has not been satisfied prior to
the end of the one hundred twenty (120) day period provided for in Section 8.4, then Seller and
Purchaser each shall have the right to terminate this Agreement by providing written notice to the
other Party (with a copy to Escrow Agent), in which case Escrow Agent promptly shall refund the
Earnest Money to Purchaser following Purchaser’s satisfaction of its obligations under Section
7.1(b), and Seller and Purchaser shall have no further rights or obligations under this Agreement,
except those which expressly survive such termination.

     Section 12.4. Waiver of Damages. In no event shall either Party be liable to the
other for consequential, punitive or exemplary damages, whatever the nature of a breach by such
breaching Party of its obligations under this Agreement, and each Party hereby waives all claims
for consequential, punitive or exemplary damages it may have against the other Party (other than in
connection with an action or proceeding concerning the fraud or intentional misconduct by the other
Party).

     Section 12.5. Frustration of Closing Conditions.Neither Party may rely on the failure of the
conditions to their respective obligations to consummate the purchase and sale contemplated hereby
if such failure was caused by such Party’s failure to act in good faith or to use its commercially
reasonable efforts to cause the Closing to occur.

ARTICLE XIII

CASUALTY; CONDEMNATION

     Section 13.1. Casualty.

          (a) Material Casualty. If the Property or any portion thereof is damaged or destroyed
by fire or any other casualty prior to Closing (a “Casualty”), Seller shall give written notice of
such Casualty to Purchaser promptly after the occurrence of such Casualty. If the amount of the
repair, restoration or replacement required by a Casualty equals or exceeds Four Million Dollars
($4,000,000) (a “Material Casualty”) and the Casualty was not caused by Purchaser or Purchaser’s
Inspectors, or their respective employees or agents, then Purchaser shall have the right, in its
sole discretion, to (i) terminate this Agreement, in which case Escrow Agent shall refund the
Earnest Money to Purchaser upon Purchaser’s satisfaction of its obligations under Section 7.1(b),
and Seller and Purchaser shall have no further rights or obligations under this Agreement, except
those which expressly survive such termination, or (ii) proceed to Closing, without terminating
this Agreement, in which case Seller shall (A) credit the amount of the applicable insurance
deductible against the Purchase Price, and (B) transfer and assign to Purchaser all of Seller’s
right, title and interest in and to all proceeds from all casualty and lost profits insurance
policies maintained by Seller with respect to the Hotel, except those proceeds allocable to costs
incurred by, and lost profits of, Seller for the period prior to the Closing. Purchaser shall make
an election under this Section 13.1(a) by giving written notice to Seller on or before ten (10)
Business Days after Seller’s delivery to Purchaser of written notice of such

44

 

Casualty. If Purchaser fails to make an election under Section 13.1(a) within such time
period, Purchaser shall be conclusively deemed to have elected to proceed to Closing pursuant to
clause (ii) of this Section 13.1(a). If the Closing is scheduled to occur within Purchaser’s ten
(10) Business Day election period, the Closing Date shall be extended until the date which is five
(5) Business Days after the expiration of such ten (10) Business Day election period.

          (b) Non-Material Casualty. In the event of any (i) Casualty which is not a Material
Casualty, or (ii) Material Casualty which is caused by Purchaser or Purchaser’s Inspectors, or
their respective employees or agents, then Purchaser shall not have the right to terminate this
Agreement, but shall proceed to Closing, in which case Seller shall (A) credit the amount of the
applicable insurance deductible against the Purchase Price (except if such Casualty is caused by
Purchaser or Purchaser’s Inspectors), and (B) transfer and assign to Purchaser all of Seller’s
right, title and interest in and to all proceeds from all casualty and lost profits insurance
policies maintained by Seller with respect to the Hotel, except those proceeds allocable to costs
incurred by, and lost profits of, Seller for the period prior to the Closing. Except if such
Casualty is caused by Purchaser, Purchaser’s Inspectors, or their respective employers or agents,
if Seller does not maintain insurance covering such Casualty, Purchaser shall receive a credit
against the Purchase Price in the amount of the repair, restoration or replacement required by such
Casualty as reasonably determined by Seller.

     Section 13.2. Condemnation.

          (a) Material Condemnation. If the event of any actual or threatened condemnation or taking
pursuant to the power of eminent domain of all or any portion of the Real Property, or any proposed
sale in lieu thereof (a “Condemnation”), Seller shall give written notice of such Condemnation to
Purchaser as soon as possible after Seller receives notice of such Condemnation. If the
Condemnation (i) would result in the loss of more than five percent (5%) of the Land or
Improvements (computed on a square foot basis) or (ii) would result in any material reduction or
restriction in access to the Land or Improvements or (iii) results in the termination of the
Management Agreement (a “Material Condemnation”), then Purchaser shall have the right, in its sole
discretion, to (A) terminate this Agreement, in which case Escrow Agent shall refund the Earnest
Money to Purchaser upon Purchaser’s satisfaction of its obligations under Section 7.1(b) and Seller
and Purchaser shall have no further rights or obligations under this Agreement, except those which
expressly survive such termination, or (B) proceed to Closing, without terminating this Agreement,
in which case Seller shall assign to Purchaser all of Seller’s right, title and interest in all
proceeds and awards from such Condemnation. Purchaser shall make an election under this Section
13.2(a) by giving written notice to Seller within ten (10) Business Days after Seller’s delivery to
Purchaser of written notice of such Condemnation. If Purchaser fails to make an election under
Section 13.2(a) within such time period, Purchaser shall be conclusively deemed to have elected to
proceed to Closing pursuant to clause (B) of Section 13.2(a). If the Closing Date is scheduled to
occur within Purchaser’s ten (10) Business Day election period, the Closing Date shall be extended
until the tenth (10th) day after the expiration of such ten (10) day election period.

          (b) Non-Material Condemnation. In the event of any Condemnation of any Real Property
other than a Material Condemnation, Purchaser shall not have the right to terminate this Agreement,
but shall proceed to Closing, in which case Seller shall assign to

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Purchaser all of Seller’s right, title and interest in all proceeds and awards from such
Condemnation.

ARTICLE XIV

INDEMNIFICATION

     Section 14.1. Indemnification by Seller. Subject to the limitations set forth in
Sections 5.2, 5.3, 5.4, 14.3, 14.4, 14.5 and 14.6, Seller shall indemnify the Purchaser Indemnitees
from and against any Losses incurred (i) after the Closing to the extent resulting from (a) any
inaccuracy or untruth of any representations or warranties made by Seller in this Agreement (as may
be updated as hereinabove provided), and (b) the breach by Seller of any of its covenants or
obligations under this Agreement which expressly survive the Closing, (ii) after the termination of
this Agreement to the extent resulting from the breach by Seller of any of its covenants or
obligations under this Agreement which expressly survive such termination, (iii) events,
contractual obligations, acts or omissions of Seller that occur or accrue prior to Closing in
connection with the ownership of the Property, or (iv) damage to property or injury to or death of
any person or any claims for any debt or obligations occurring on or about or in connection with
the Property or any portion thereof or with respect to the Property’s operations at any time or
times prior to Closing, but specifically excluding (w) any Losses caused by breaches of covenants
of Purchaser which, by the terms of this Agreement, survive Closing, (x) any Losses consisting of
liabilities or obligations for which Purchaser received a credit at Closing, (y) any Losses
consisting of contractual liabilities or obligations which Purchaser expressly assumed at Closing
and (z) any Losses incurred in relation to the physical condition of the Property (including
without limitation, the environmental condition of the Real Property).

     Section 14.2. Indemnification by Purchaser. In addition to the Purchaser indemnities
set forth elsewhere in this Agreement and subject to the limitations set forth in Sections 6.2 and
14.3, 14.4 and 14.5, Purchaser shall indemnify the Seller Indemnitees from and against any Losses
incurred (i) after the Closing to the extent resulting from (a) any inaccuracy or breach of any
representations or warranties made by Purchaser in this Agreement, or (b) the breach by Purchaser
of any of its covenants or obligations under this Agreement which expressly survive the Closing,
(ii) after the termination of this Agreement to the extent resulting from the breach by Purchaser
of any of its covenants or obligations under this Agreement which expressly survive such
termination, (iii) events, contractual obligations, acts or omissions of Purchaser that occur or
accrue after Closing in connection with the ownership of the Property, or (iv) damage to property
or injury to or death of any person or any claims for any debt or obligations occurring on or about
or in connection with the Property or any portion thereof or with respect to the Property’s
operations at any time or times after Closing.

     Section 14.3. Limitations on Indemnification Obligations.

          (a) Survival of Representations and Warranties. All indemnities, covenants, representations
and warranties of Seller and Purchaser under this Agreement which expressly survive Closing shall
survive the Closing for a period commencing on the Closing Date and expiring at 5:00 p.m. (Pacific
time) on the date which is two hundred seventy (270) days after the Closing Date (the “Survival
Period”), except to the extent a notice of a claim thereunder is

46

 

delivered within the Survival Period and the party asserting such claim commences legal
proceedings within one hundred eighty (180) days following the delivery of such a notice, in which
event the Survival Period shall be extended pending the resolution of such legal proceeding.

          (b) Indemnification Deductible and Cap. Notwithstanding anything to the contrary in
this Agreement, Seller shall not be required to provide indemnification to the Purchaser
Indemnitees pursuant to Section 14.1 to the extent that the aggregate amount of all Losses incurred
by the Purchaser Indemnitees for which Purchaser otherwise would be entitled to indemnification (i)
does not exceed an amount equal to Seventy Five Thousand and No/100 Dollars ($75,000.00) (the
“Indemnification Deductible”), or if such Losses in the aggregate exceed the Indemnification
Deductible, Purchaser shall not be entitled to defense or indemnification for any amount up to the
Indemnification Deductible, or (ii) exceeds Two Million and No/100 Dollars ($2,000,000.00) (the
”Indemnification Cap”).

          (c) Effect of Taxes and Insurance. The amount of any Losses for which indemnification
is provided to any Indemnitee under this Article XIV shall be net of any tax benefits realized or
insurance proceeds received by such Indemnitee in connection with the Indemnification Claim.

     Section 14.4. Indemnification Procedures.

          (a) Notice of Indemnification Claim. If any of the Seller Indemnitees or Purchaser
Indemnitees (as the case may be) (each, an “Indemnitee”) is entitled to indemnification under any
provision in this Agreement (each, an “Indemnification Claim”), the Party required to provide
indemnification to such Indemnitee (the “Indemnitor”) shall not be obligated to indemnify
Indemnitee unless and until such Indemnitee provides written notice to such Indemnitor promptly
after such Indemnitee has actual knowledge of any facts or circumstances on which such
Indemnification Claim is based or a Third-Party Claim is made on which such Indemnification Claim
is based, describing in reasonable detail such facts and circumstances or Third-Party Claim with
respect to such Indemnification Claim. Notwithstanding the foregoing, to the extent any Indemnitee
is seeking indemnification for a breach of any representations or warranties, the Indemnitee shall
be entitled to indemnification only for those matters as to which the Indemnitee has given written
notice to the Indemnitor prior to the expiration of the applicable Survival Period.

          (b) Resolution of Indemnification Claim Not Involving Third-Party Claim. If the
Indemnification Claim does not involve a Third-Party Claim and is disputed by the Indemnitor, the
dispute shall be resolved by litigation or other means as the Parties otherwise may agree.

          (c) Resolution of Indemnification Claim Involving Third-Party Claim. If the
Indemnification Claim involves a Third-Party Claim, the Indemnitor shall have the right (but not
the obligation) to assume the defense of such Third-Party Claim, at its cost and expense, and shall
use good faith efforts consistent with prudent business judgment to defend such Third-Party Claim,
provided that (i) the counsel for the Indemnitor who shall conduct the defense of the Third-Party
Claim shall be reasonably satisfactory to the Indemnitee (unless selected by

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Indemnitor’s insurance company), (ii) the Indemnitee, at its cost and expense, may participate
in, but shall not control, the defense of such Third-Party Claim, and (iii) the Indemnitor shall
not enter into any settlement or other agreement which requires any performance by the Indemnitee,
other than the payment of money which shall be paid by the Indemnitor. The Indemnitee shall not
enter into any settlement agreement with respect to the Indemnification Claim, without the
Indemnitor’s prior written consent, which consent may be withheld in Indemnitor’s sole discretion.
If the Indemnitor elects not to assume the defense of such Third-Party Claim, the Indemnitee shall
have the right to retain the defense of such Third-Party Claim and shall use good faith efforts
consistent with prudent business judgment to defend such Third-Party Claim in an effective and
cost-efficient manner.

          (d) Accrual of Indemnification Obligation. Notwithstanding anything to the contrary
in this Agreement, the Indemnitee shall have no right to indemnification (other than recovery of
defense costs) against the Indemnitor for any Indemnification Claim which (i) does not involve a
Third-Party Claim, but is disputed by Indemnitor, or (ii) which involves a Third-Party Claim, until
such time as such dispute or Third-Party Claim is concluded, including any appeals with respect
thereto.

     Section 14.5. Exclusive Remedy. Except for claims based on fraud the indemnification
provisions in this Agreement shall be the sole and exclusive remedy of any Indemnitee with respect
to any claim for Losses arising from or in connection with this Agreement.

     Section 14.6. Survival. The provisions of this Article XIV shall survive the Closing.

ARTICLE XV

MISCELLANEOUS PROVISIONS

     Section 15.1. Notices.

          (a) Method of Delivery. All notices, requests, demands and other communications (each, a
“Notice”) required to be provided to the other Party pursuant to this Agreement shall be in writing
and shall be delivered (i) in person, (ii) by electronic mail, provided that a copy is also
delivered by another method of delivery approved hereunder, (iii) by nationally recognized
overnight courier service, or (iv) by facsimile transmittal, with a verification copy sent on the
same day by any of the methods set forth in clauses (i) and (iii), to the other Party to this
Agreement at the following address or facsimile number (or to such other address or facsimile
number as Seller or Purchaser may designate from time to time pursuant to Section 15.1(c)):

If to Seller:

Maritime Hotel Associates, L.P.

c/o Kimpton Group Holding LLC

222 Kearny Street, Suite 200

San Francisco, California 94108

Facsimile: (415) 955-5438

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Email: judy.miles@kimptongroup.com

Attention: Executive Vice President, General Counsel

With a copy to:

Kimpton Hotel & Restaurant Group, LLC

222 Kearny Street, Suite 200

San Francisco, California 94108

Facsimile: (415) 955-5438

Email: ben.rowe@kimptongroup.com

Attention: Chief Financial Officer

with a further copy to:

Goodwin Procter LLP

3 Embarcadero Center, 24th Floor

San Francisco, CA 94111

Facsimile: (415) 677-9041

Email: tgoebel@goodwinprocter.com

Attention: Teresa K. Goebel, Esq.

If to Purchaser:

Wildcats Owner LLC

c/o Pebblebrook Hotel Trust

2 Bethesda Metro Center

Suite 1530

Bethesda, Maryland 20814

With a copy to:

John M. Ratino, Esquire

Hunton & Williams LLP

1900 K Street, NW

Washington, DC 20006

          (b) Receipt of Notices. All Notices sent by Seller or Purchaser (or their respective
counsel pursuant to Section 15.1(d)) under this Agreement shall be deemed to have been received by
the Party to whom such Notice is sent upon (i) delivery to the mailing address, email address or
facsimile number of the recipient Party, provided that such delivery is made prior to 5:00 p.m.
(local time for the recipient Party) on a Business Day, otherwise the following Business Day, or
(ii) the attempted delivery of such Notice if (A) such recipient Party refuses

49

 

delivery of such Notice, or (B) such recipient Party is no longer at such address or facsimile
number, and such recipient Party failed to provide the sending Party with its current address or
facsimile number pursuant to this Section 15.1(b).

          (c) Change of Address. Seller and Purchaser and their respective counsel shall have
the right to change their respective address and/or email address or facsimile number for the
purposes of this Section 15.1 by providing a Notice of such change in address and/or facsimile as
required under this Section 15.1(c).

          (d) Delivery by Party’s Counsel. Seller and Purchaser agree that the attorney for
such Party shall have the authority to deliver Notices on such Party’s behalf to the other Party
hereto.

     Section 15.2. No Recordation. Neither this Agreement, nor any memorandum or other
notice of this Agreement, shall be recorded in any public records prior to the Closing without
Seller’s and Purchaser’s prior written consent, which consent may be withheld in such Party’s sole
discretion; provided that no consent shall be required if such recordation is incident to an action
for specific performance.

     Section 15.3. Time is of the Essence. Time is of the essence of this Agreement;
provided, however, that notwithstanding anything to the contrary in this Agreement, if the time
period for the performance of any covenant or obligation, satisfaction of any condition or delivery
of any notice or item required under this Agreement shall expire on a day other than a Business
Day, such time period shall be extended automatically to the next Business Day.

     Section 15.4. Assignment. Purchaser shall not assign this Agreement or any interest
therein to any Person, without the prior written consent of Seller, which consent may be withheld
in Seller’s sole discretion; provided, however, that if Seller does provide its consent to an
assignment, Purchaser shall not be released from any of its liabilities and obligations under this
Agreement by reason of such assignment. Notwithstanding the foregoing, Purchaser may assign this
Agreement to an Affiliate controlled by Pebblebrook Hotel Trust, without Seller’s consent, provided
that Purchaser delivers to Seller a written agreement evidencing such assignment by Purchaser at
least five (5) Business Days prior to the Closing Date. For purposes hereof, the terms “controlled
by” shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of any such entity.

     Section 15.5. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of Seller and Purchaser, and their respective successors and permitted assigns
pursuant to Section 15.4.

     Section 15.6. Third Party Beneficiaries. This Agreement shall not confer any rights
or remedies on any Person other than (i) the Parties and their respective successors and permitted
assigns pursuant to Section 15.4, and (ii) any Indemnitee to the extent such Indemnitee is
expressly granted certain rights of defense and indemnification in this Agreement.

     Section 15.7. Governing Law; Jurisdiction. This Agreement shall be governed by the
laws of the jurisdiction in which the Hotel is located, without giving effect to any principles

50

 

regarding conflict of laws. Any action or proceeding brought by either Party in connection
with this Agreement or the transaction contemplated hereby shall be brought in the City and County
of San Francisco.

     Section 15.8. Rules of Construction. The following rules shall apply to the
construction and interpretation of this Agreement:

          (a) Singular words shall connote the plural as well as the singular, and plural words shall
connote the singular as well as the plural, and the masculine shall include the feminine and the
neuter.

          (b) All references in this Agreement to particular articles, sections, subsections or clauses
(whether in upper or lower case) are references to articles, sections, subsections or clauses of
this Agreement. All references in this Agreement to particular exhibits or schedules (whether in
upper or lower case) are references to the exhibits and schedules attached to this Agreement,
unless otherwise expressly stated or clearly apparent from the context of such reference.

          (c) The headings contained herein are solely for convenience of reference and shall not
constitute a part of this Agreement nor shall they affect its meaning, construction or effect.

          (d) Each Party hereto and its counsel have reviewed and revised (or requested revisions of)
this Agreement and have participated in the preparation of this Agreement, and therefore any usual
rules of construction requiring that ambiguities are to be resolved against any Party shall not be
applicable in the construction and interpretation of this Agreement or any exhibits hereto.

          (e) The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms shall
refer to this Agreement, and not solely to the provision in which such term is used.

          (f) The terms “include,” “including” and similar terms shall be construed as if followed by
the phrase “without limitation.”

          (g) The term “sole discretion” with respect to any determination to be made a Party under this
Agreement shall mean the sole and absolute discretion of such Party, without regard to any standard
by which the determination of such Party must be made.

     Section 15.9. Severability. If any term or provision of this Agreement is held to be
or rendered invalid or unenforceable at any time in any jurisdiction, such term or provision shall
not affect the validity or enforceability of any other terms or provisions of this Agreement, or
the validity or enforceability of such affected terms or provisions at any other time or in any
other jurisdiction.

     Section 15.10. WAIVER OF TRIAL BY JURY. TO THE EXTENT PERMITTED BY APPLICABLE LAW
FROM TIME TO TIME, SELLER AND PURCHASER HEREBY WAIVE THEIR RIGHT TO A TRIAL BY JURY IN ANY
LITIGATION OR OTHER COURT

51

 

PROCEEDING BY EITHER PARTY AGAINST THE OTHER PARTY WITH RESPECT TO ANY MATTER ARISING FROM OR
IN CONNECTION WITH THIS AGREEMENT.

     Section 15.11. Prevailing Party. If any litigation or other court action, arbitration
or similar adjudicatory proceeding is sought, taken, instituted or brought by Seller or Purchaser
to enforce its rights under this Agreement, all fees, costs and expenses, including, without
limitation, reasonable attorneys fees and court costs, of the substantially prevailing Party in
such action, suit or proceeding shall be borne by the Party against whose interest the judgment or
decision is rendered. This Section 15.11 shall survive the termination of this Agreement and the
Closing.

     Section 15.12. Recitals, Exhibits and Schedules. The recitals to this Agreement, and
all exhibits and schedules (as amended and supplemented from time to time pursuant to Section 5.2)
referred to in this Agreement are incorporated herein by such reference and made a part of this
Agreement. Any matter disclosed in any schedule to this Agreement shall be deemed to be
incorporated in all other schedules to this Agreement.

     Section 15.13. Entire Agreement. This Agreement sets forth the entire understanding
and agreement of the Parties hereto, and shall supersede any other agreements and understandings
(written or oral) between Seller and Purchaser on or prior to the date of this Agreement with
respect to the transaction contemplated in this Agreement.

     Section 15.14. Amendments to Agreement. No amendment, supplement or other modification
to any terms of this Agreement (other than amendments, supplements and other modifications to the
representations and warranties and schedules made by Seller pursuant to Section 5.2), or
termination of this Agreement (other than as expressly provided in this Agreement), shall be valid
unless in writing and executed and delivered by Seller and Purchaser.

     Section 15.15. Facsimile; Counterparts. Seller and Purchaser may deliver executed
signature pages to this Agreement by facsimile transmission or pdf file to the other Party, which
facsimile copy or pdf file shall be deemed to be an original executed signature page; provided,
however, that such Party shall deliver an original signature page to the other Party promptly
thereafter. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of which counterparts together shall constitute one agreement with the
same effect as if the Parties had signed the same signature page.

[Remainder of page intentionally left blank;

Signatures on following pages]

52

 

IN WITNESS WHEREOF, Seller and Purchaser each have caused this Agreement to be executed and
delivered in their names by their respective duly authorized officers or representatives.

SELLER:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	 	By:  	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	 	Its: 	              General Partner 	 
	 
	 	By:  	               /s/ Judith C. Miles
 	 
	 	 	Name:  	Judith C. Miles 	 
	 	 	Title:  	Secretary 	 

PURCHASER:

WILDCATS OWNER LLC,

a Delaware limited liability company

	 	 	 	 	 
	 	By:  	/s/ Thomas C. Fisher
 	 
	 	 	Name:  	Thomas C. Fisher 	 
	 	 	Title:  	Vice President 	 
	 

 

Exhibit A

Form of Management Agreement Assignment and Assumption Agreement

     This Management Agreement Assignment and Assumption Agreement (this “Agreement”) is made as of
___________________, 2010 by and between MARITIME HOTEL ASSOCIATES, L.P., a California limited
partnership (“Assignor”), and [_____________________], a [_____________________] Delaware limited
liability company (“Assignee”).

W I T N E S S E T H:

     WHEREAS, Assignor and Kimpton Hotel & Restaurant Group, LLC, a California limited liability
company (“Manager”) previously entered into that certain Management Agreement relating to a Hotel
facility located at 495 Jefferson Street, San Francisco, California and commonly known as the
Argonaut Hotel (the “Hotel”);

     WHEREAS, Assignor and Assignee are parties to a certain Purchase and Sale Agreement dated as
of [___ __], 2010 (the
“P&S”) with respect to, inter alia, the sale and purchase of Assignor’s
interest in the Hotel by Assignee;

     WHEREAS, under the P&S, Assignor agreed to assign to Assignee, all of its right, title and
interest in the Management Agreement, and Assignee agreed to assume prospectively all of Assignor’s
obligations and liabilities with respect to the Management Agreement; and

     WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings
given them in the P&S;

     NOW THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the mutual
receipt and legal sufficiency of which are hereby acknowledged, Assignor and Assignee agree as
follows:

1. Assignment to Assignee. Effective as of the date hereof (the “Effective Date”),
Assignor does hereby sell, assign, transfer, grant, convey and set over unto Assignee all of its
right, title, and interest in, to and under the Management Agreement accruing from and after the
date hereof to have and to hold the same unto Assignee, its legal representatives, successors and
assigns, forever.

2. Assumption by Assignee. Assignee does hereby accept the sale, assignment, transfer,
grant and conveyance of the Management Agreement and hereby assumes and agrees to observe and
perform all of the obligations, terms, covenants and conditions of the Management Agreement
accruing from and after the date hereof.

3. Disclaimer. Assignee acknowledges that Assignor has not made and does not make any
representations or warranties of any kind whatsoever, oral or written, express or implied, with
respect to any of the Management Agreement, except as set forth in the P&S. In addition, and
notwithstanding anything contained in this Agreement to the contrary, this Agreement is subject

 

 

to all disclaimers and qualifications by Assignor and all encumbrances set forth in the P&S with
respect to the Management Agreement, including, without limitation, those set forth in Sections
5.5 and 14.3 of the P&S, and all such disclaimers, qualifications, and encumbrances are
hereby incorporated into this Agreement by reference and made a part of this Agreement.

4. Miscellaneous. This Agreement shall be binding upon and enforceable against, and shall
inure to the benefit of, Assignor and Assignee and their respective successors and assigns. This
Agreement shall be governed by, construed under, and interpreted and enforced in accordance with,
the laws of the State of California. This Agreement may be executed in several counterparts, each
of which will be deemed an original, and all of such counterparts together shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as a sealed instrument,
as of the date first above written.

ASSIGNOR:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	By: 	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	Its: 	General Partner	 

	 	 	 	 	 
	By:  	
 	 
	 	Name:  	 	 
	 	Title:  	 	 

ASSIGNEE:

[_____________________],

a [_____________________]

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit B

Form of Bill of Sale

     THIS BILL OF SALE (“Bill of Sale”) is made as of ____________________, 2010 by and between
MARITIME HOTEL ASSOCIATES, L.P., a California limited partnership (“Seller”), and
[_______________________], a [__________________________] (“Purchaser”).

W I T N E S S E T H:

     WHEREAS, Seller and Purchaser are parties to a certain Purchase and Sale Agreement dated as of
[___ __], 2010 (the
“P&S”) with respect to, inter alia, the sale and purchase of Seller’s interest
in the FF&E, Supplies, F&B and Retail Merchandise of the Hotel, but expressly excluding all
Excluded Property and subject in each case to the Permitted Exceptions (the “Personal Property”);

     WHEREAS, under the P&S, Seller agreed to sell all of its right, title and interest in and to
the Personal Property to Purchaser; and

     WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings
given them in the P&S;

     NOW THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the mutual
receipt and legal sufficiency of which are hereby acknowledged, Seller and Purchaser agree as
follows:

1. Sale to Assignee. Seller does hereby sell, assign, transfer, grant, convey and set over
unto Purchaser all of its right, title, and interest in, to, and under the Personal Property to
have and to hold the same unto Purchaser, its legal representatives, successors and assigns,
forever.

2. Disclaimer. Except as otherwise expressly provided in the P&S, Seller makes no warranty
(express or implied) as to the condition of the Personal Property or its merchantability or fitness
for a particular purpose. In addition, and notwithstanding anything contained in this Bill of Sale
to the contrary, this Bill of Sale is subject to all disclaimers and qualifications by Seller and
all encumbrances set forth in the P&S with respect to said Personal Property, including, without
limitation, those set forth in Section 5.5 and Section 14.3 and all such
disclaimers, qualifications, and encumbrances are hereby incorporated in this Bill of Sale by
reference and made a part of this Bill of Sale. Except as aforesaid, by its acceptance of this
Bill of Sale, Purchaser acknowledges that it has fully inspected the Personal Property and accepts
the same in its present use and “AS-IS” condition.

3. Miscellaneous. This Bill of Sale shall be binding upon and enforceable against, and
shall inure to the benefit of, Seller and Purchaser and their respective successors and assigns.
This Bill of Sale shall be governed by, construed under, and interpreted and enforced in accordance
with the laws of the State of California. This Bill of Sale may be executed in several

 

 

counterparts, each of which will be deemed an original, and all of such counterparts together shall
constitute one and the same instrument.

     IN WITNESS WHEREOF, Seller has executed this Bill of Sale, as a sealed instrument, as of the
date first above written.

SELLER:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	By:  	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	Its:   	General Partner 	 

	 	 	 	 	 
	By: 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit C

Form of Assignment and Assumption of Leases and Contracts

     This Assignment and Assumption of Leases and Contracts (this “Agreement”) is made as of
___________________, 2010 by and between MARITIME HOTEL ASSOCIATES, L.P., a California limited
partnership (“Assignor”), and [_____________________], a [_____________________] (“Assignee”).

W I T N E S S E T H:

     WHEREAS, Assignor and Assignee are parties to a certain Purchase and Sale Agreement dated as
of [_________ __,
2010] (the “P&S”) with respect to,
inter alia, the sale and purchase of
Assignor’s interest in, to the extent assignable, the Contracts and the Tenant Leases, but not the
Excluded Property (collectively, the “Assigned Assets”);

     WHEREAS, under the P&S, Assignor agreed to sell all of its right, title and interest in and to
the Assigned Assets to Assignee, and Assignee agreed to assume prospectively all of Assignor’s
obligations and liabilities with respect to the Assigned Assets; and

     WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings
given them in the P&S;

     NOW THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the mutual
receipt and legal sufficiency of which are hereby acknowledged, Assignor and Assignee agree as
follows:

1. Assignment to Assignee. Effective as of the date hereof (the “Effective Date”),
Assignor does hereby sell, assign, transfer, grant, convey and set over unto Assignee all of its
right, title, and interest in, to and under the Assigned Assets to have and to hold the same unto
Assignee, its legal representatives, successors and assigns, forever.

2. Assumption by Assignee. Assignee does hereby accept the sale, assignment, transfer,
grant and conveyance of the Assigned Assets and hereby assumes and agrees to observe and perform
all of the obligations, terms, covenants and conditions of the Assigned Assets accruing after the
date hereof.

3. Disclaimer. Assignee acknowledges that Assignor has not made and does not make any
representations or warranties of any kind whatsoever, oral or written, express or implied, with
respect to any of the Assigned Assets, except as set forth in the P&S. In addition, and
notwithstanding anything contained in this Assignment to the contrary, this Assignment is subject
to all disclaimers and qualifications by Assignor and all encumbrances set forth in the P&S with
respect to the Assigned Assets, including, without limitation, those set forth in Sections
5.5 and 14.3 of the P&S, and all such disclaimers, qualifications, and encumbrances are
hereby incorporated into this Agreement by reference and made a part of this Assignment.

 

 

4. Miscellaneous. This Agreement shall be binding upon and enforceable against, and shall
inure to the benefit of, Assignor and Assignee and their respective successors and assigns. This
Agreement shall be governed by, construed under, and interpreted and enforced in accordance with,
the laws of the State of California. This Agreement may be executed in several counterparts, each
of which will be deemed an original, and all of such counterparts together shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as a sealed instrument,
as of the date first above written.

ASSIGNOR:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	By:  	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	Its:   	General Partner 	 

	 	 	 	 	 
	By: 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 

ASSIGNEE:

[_____________________],

a [_____________________]

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit D

Form of Assignment and Assumption Agreement

     This Assignment and Assumption Agreement (this “Agreement”) is made as of ___________________,
2010 by and between MARITIME HOTEL ASSOCIATES, L.P., a California limited partnership (“Assignor”),
and [_____________________], a [_____________________] (“Assignee”).

W I T N E S S E T H:

     WHEREAS, Assignor and Assignee are parties to a certain Purchase and Sale Agreement dated as
of [_________ __, 2010] (the “P&S”) with respect to, inter alia, the sale and purchase of
Assignor’s interest in, to the extent assignable, the Bookings, Licenses and Permits and Intangible
Property, but not the Excluded Property (collectively, the “Assigned Assets”);

     WHEREAS, under the P&S, Assignor agreed to sell all of its right, title and interest in and to
the Assigned Assets to Assignee, and Assignee agreed to assume prospectively all of Assignor’s
obligations and liabilities with respect to the Assigned Assets; and

     WHEREAS, all capitalized terms used herein but not defined herein shall have the meanings
given them in the P&S;

     NOW THEREFORE, for Ten Dollars ($10.00) and other good and valuable consideration, the mutual
receipt and legal sufficiency of which are hereby acknowledged, Assignor and Assignee agree as
follows:

1. Assignment to Assignee. Effective as of the date hereof (the “Effective Date”),
Assignor does hereby sell, assign, transfer, grant, convey and set over unto Assignee all of its
right, title, and interest in, to and under the Assigned Assets to have and to hold the same unto
Assignee, its legal representatives, successors and assigns, forever.

2. Assumption by Assignee. Assignee does hereby accept the sale, assignment, transfer,
grant and conveyance of the Assigned Assets and hereby assumes and agrees to observe and perform
all of the obligations, terms, covenants and conditions of the Assigned Assets accruing after the
date hereof.

3. Disclaimer. Assignee acknowledges that Assignor has not made and does not make any
representations or warranties of any kind whatsoever, oral or written, express or implied, with
respect to any of the Assigned Assets, except as set forth in the P&S. In addition, and
notwithstanding anything contained in this Assignment to the contrary, this Assignment is subject
to all disclaimers and qualifications by Assignor and all encumbrances set forth in the P&S with
respect to the Assigned Assets, including, without limitation, those set forth in Sections
5.5 and 14.3 of the P&S, and all such disclaimers, qualifications, and encumbrances are
hereby incorporated into this Agreement by reference and made a part of this Assignment.

 

 

4. Miscellaneous. This Agreement shall be binding upon and enforceable against, and shall
inure to the benefit of, Assignor and Assignee and their respective successors and assigns. This
Agreement shall be governed by, construed under, and interpreted and enforced in accordance with,
the laws of the State of California. This Agreement may be executed in several counterparts, each
of which will be deemed an original, and all of such counterparts together shall constitute one and
the same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement, as a sealed instrument,
as of the date first above written.

ASSIGNOR:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	By:  	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	Its:   	General Partner 	 

	 	 	 	 	 
	By: 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 

ASSIGNEE:

[_____________________],

a [_____________________]

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit E

Form of Earnest Money Escrow Agreement

EARNEST MONEY ESCROW AGREEMENT

     THIS EARNEST MONEY ESCROW AGREEMENT (this “Agreement”) is made as of [____________],
2010 (the “Effective Date”), by and among Maritime Hotel Associates, L.P., a California
limited partnership (“Seller”), [_____________], a [_____________] (“Purchaser”)
and [________________] (“Escrow Agent”).

PRELIMINARY STATEMENT

     A. Seller and Purchaser entered into that certain Purchase and Sale Agreement dated as of
[____________], 2010 (the “Purchase Agreement”). All terms not otherwise defined herein
shall have the meaning assigned to them in the Purchase Agreement.

     B. Seller has agreed to sell and Purchaser has agreed to purchase the Property, on the terms
and conditions stated in the Purchase Agreement. Pursuant to Section 3.1(a) of the Purchase
Agreement, Purchaser is required to deposit cash in the amount of [_____________] ($[__________])
(the “Initial Deposit”) in escrow with Escrow Agent within two (2) Business Days after the
Effective Date. Pursuant to Section 3.1(b) of the Purchase Agreement, Purchaser is required to
deposit an additional amount of cash in the amount of [_____________] ($[__________]) (the
“Additional Deposit, and, together with the Initial Deposit, the “Earnest Money”)
in escrow with Escrow Agent on or prior to the date on which the Due Diligence Period concludes.
Purchaser and Seller now desire to enter into an agreement with Escrow Agent with respect to said
Earnest Money.

     NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

     1. Creation of Escrow. In accordance with the obligation to do so contained in the
Purchase Agreement, Purchaser has delivered or will deliver to Escrow Agent in one or more wire
transfers the Earnest Money to hold same in escrow pursuant to the terms and conditions set forth
herein. Upon receipt of any portion of the Earnest Money, Escrow Agent shall provide written notice
to both Seller and Purchaser acknowledging such receipt. Escrow Agent hereby agrees and
acknowledges that it has received and reviewed a copy of the Purchase Agreement.

     2. Disbursement of Earnest Money. Upon not less than 5 Business Days’ prior written
notice to Escrow Agent and the other Party, and provided that Escrow Agent shall have confirmed
that the non-requesting Party shall have received the requesting Party’s notice, Escrow Agent shall
deliver the Earnest Money to the Party to the Purchase Agreement requesting the same; provided,
however, that if the other Party shall, within said 5 Business Day period, deliver to the
requesting Party and Escrow Agent a written notice that it disputes the claim to the Earnest Money,
Escrow Agent shall retain the Earnest Money until it receives written instructions executed by both
Seller and Purchaser as to the disposition and disbursement of the

 

 

Earnest Money, or until ordered by final court order, decree or judgment, which is not subject to
appeal, to deliver the Earnest Money to a particular Party, in which event the Earnest Money shall
be delivered in accordance with such notice, instruction, order, decree or judgment.

     3. Investment of Earnest Money. The Earnest Money shall be invested in accordance
with the terms of this Agreement, and all interest and other amounts earned on the Earnest Money
shall constitute additional Earnest Money for all purposes in this Agreement. The Earnest Money
shall be invested by Escrow Agent in a commercial bank or banks acceptable to Seller and Purchaser
in a money market fund, or in such other investments as shall be selected by Purchaser and approved
in writing by Seller.

     4. Interpleader. Seller and Purchaser mutually agree that in the event of any
controversy regarding the Earnest Money, unless mutual written instructions are received by Escrow
Agent directing the Earnest Money’s disposition, Escrow Agent shall not take any action, but
instead shall await the disposition of any proceeding relating to the Earnest Money or, at Escrow
Agent’s option, Escrow Agent may interplead all parties and deposit the Earnest Money with a court
of competent jurisdiction in which event Escrow Agent may recover all of its court costs and
reasonable attorneys’ fees. Seller or Purchaser, whichever loses in any such interpleader action,
shall be solely obligated to pay such costs and fees of Escrow Agent, as well as the reasonable
attorneys’ fees of the prevailing party in accordance with the provisions of the Purchase
Agreement.

     5. Notices. Section 15.1 of the Purchase Agreement is hereby incorporated by
reference. Notwithstanding the foregoing, any notices, requests or other communication to Escrow
Agent shall be addressed as follows:

Escrow Agent: [____________]

Any and all notices, requests or other communications to Escrow Agent shall be subject to the terms
and conditions of Section 15.1 of the Purchase Agreement.

     6. Liability of Escrow Agent. Seller and Purchaser acknowledge that Escrow Agent is
acting solely as a stakeholder at their request and for their convenience, that Escrow Agent shall
not be deemed to be the agent of either of the parties, and that Escrow Agent shall not be liable
to either of the parties for any action or omission on its part taken or made in good faith, and
not in disregard of this Agreement, but shall be liable for its negligent acts and for any loss,
cost or expense incurred by Seller or Purchaser resulting from Escrow Agent’s mistake of law
respecting Escrow Agent’s scope or nature of its duties. Seller and Purchaser shall jointly and
severally indemnify and hold Escrow Agent harmless from and against all costs, claims and expenses,
including reasonable attorneys’ fees, incurred in connection with the performance of Escrow Agent’s
duties hereunder, except with respect to actions or omissions taken or made by Escrow Agent in bad
faith, in disregard of this Agreement or the Purchase Agreement or involving negligence on the part
of Escrow Agent.

     7. Reliance. Escrow Agent shall not incur any liability with respect to (a) any
action taken or omitted in good faith upon advice of its legal counsel given with respect to any
questions relating to the duties and responsibilities of Escrow Agent under this Agreement, or (b)

 

 

any action taken or omitted in reliance on any instrument, including any written notice or
instruction provided for in the Purchase Agreement or this Agreement, not only as to its due
execution and the validity and effectiveness of its provisions, but also as to the truth and
accuracy of any information contained therein, which Escrow Agent shall in good faith believe to be
genuine, to have been signed or presented by a person or persons having authority to sign or
present such instrument.

     8. Entire Agreement. This Agreement constitutes the entire agreement between Escrow
Agent, on the one hand, and Seller and Purchaser, on the other hand, relating to the Earnest Money
and supersedes all other prior and contemporaneous agreements, whether oral or written, express or
implied; provided, however, that as between Purchaser and Seller the terms and provisions of this
Agreement shall in no event amend, or in any other respect modify, any of the rights and
obligations of Purchaser and Seller as set forth in the Purchase Agreement.

     9. Miscellaneous. This Agreement may not be modified or amended except by a writing
executed by all parties. Every consent, excuse, delay, deviation or waiver from the specific terms
of this Agreement must be in writing and signed by the party adversely affected and shall only
apply to the action described in the writing. The parties agree to execute such other documents
and perform such other acts as may be necessary or desirable to carry out the purposes of this
Agreement. If any term, covenant or condition of the Agreement or its application to any person or
circumstances shall be held to be invalid or unenforceable, the remainder of the Agreement and the
application of such term or provision to other persons or circumstances shall not be affected, and
each term hereof shall be valid and enforceable to the fullest extent permitted by law. This
Agreement shall be governed by the laws of the State of California. Time is of the essence for the
payment and performance of all obligations under this Agreement. Each of the individuals executing
this Agreement on behalf of a party individually represents and warrants that he or she has been
authorized to do so and has the power to bind the party for whom he or she is signing.

     10. Binding Effect. This Escrow Agreement shall be binding upon, and inure to the
benefit of, the parties hereto, and their respective heirs, legal representatives, successors and
assigns.

     11. Counterparts. Section 15.15 of the Purchase Agreement is hereby incorporated by
reference.

     12. Costs. All fees, costs and expenses of the Earnest Money Escrow shall be shared
equally between Seller and Purchaser, except that Purchaser shall pay any fees, costs or expenses
with respect to the investment of the Earnest Money and Purchaser shall bear the risk of loss of
the Earnest Money.

[Signature pages follow]

 

 

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first
above written.

SELLER:

MARITIME HOTEL ASSOCIATES, L.P.,

a California limited partnership

	 	 	 	 	 
	By:  	Hyde Street Hospitality, LLC, a Delaware limited liability company
 
	Its:   	General Partner 	 

	 	 	 	 	 
	By: 	
 	 
	 	Name:  	 	 
	 	Title:  	 	 

PURCHASER:

[_____________________],

a [_____________________]

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

ESCROW AGENT:

[______________________]

	 	 	 	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

 

 

Exhibit F

Form of Management Agreement Amendment

The Management Agreement Amendment will contain the substantive amendment terms of that certain
Assignment of and First Amendment to Hotel Operating Agreement, dated September 9, 2010, by and
among Kimpton Hotel & Restaurant Group, LLC, Tariff Building Associates, L.P. and Jayhawk Lessee,
LLC, except to the extent such terms already have been incorporated into the Management Agreement
by the first amendment thereto. This Management Agreement Amendment can be combined with the
Management Agreement Assignment and Assumption Agreement if Seller prefers.

 

 

Schedule 2.1(a)

Land

Real property in the City of San Francisco, County of San Francisco, State of California,

described as follows:

PARCEL ONE:

BEGINNING AT THE POINT OF INTERSECTION OF THE SOUTHERLY LINE OF JEFFERSON
STREET WITH THE EASTERLY LINE OF HYDE STREET; RUNNING THENCE EASTERLY ALONG
SAID LINE OF JEFFERSON STREET 202.834 FEET TO A POINT DISTANT THEREON 209.666 FEET
WESTERLY FROM THE WESTERLY LINE OF LEAVENWORTH STREET; THENCE DEFLECTING 89°
55’ 30” TO THE RIGHT AND RUNNING SOUTHERLY 141.370 FEET; THENCE SOUTHERLY AND
SOUTHEASTERLY ALONG A CURVE TO THE LEFT TANGENT TO THE PRECEDING COURSE,
WHICH CURVE HAS A RADIUS OF 301.90 FEET, A CENTRAL ANGLE OF 26° 16’ 49.43”, AN ARC
DISTANCE OF 138.475 FEET TO A POINT ON THE NORTHERLY LINE OF BEACH STREET;
THENCE DEFLECTING 116° 21’ 19.43” TO THE RIGHT FROM THE TANGENT OF THE PRECEDING
CURVE AT LAST SAID POINT AND RUNNING WESTERLY ALONG SAID LINE OF BEACH STREET
234.400 FEET TO THE EASTERLY LINE OF HYDE STREET; THENCE NORTHERLY ALONG SAID
LINE OF HYDE STREET 275.00 FEET TO THE POINT OF BEGINNING.

BEING A PORTION OF 50 VARA BLOCK NO. 259.

EXCEPTING THEREFROM: THE RETAINED SPACE AS DEFINED AND SET FORTH IN THAT
CERTAIN MEMORANDUM OF LEASE RECORDED JULY 25, 2001 AS DOCUMENT NO. 2001-
G986437-00 OF OFFICIAL RECORDS OF THE CITY AND COUNTY OF SAN FRANCISCO,
CALIFORNIA.

FURTHER EXCEPTING THEREFROM: THE PREMISES EXTENDING BELOW (A) THE BOTTOM
SURFACE OF THE CONCRETE SLAB ON THE LOWEST LEVEL OF THE HASLETT WAREHOUSE,
EXCEPT FOR THE SPECIFIC BUILDING FOUNDATION STRUCTURES, (B) OR THE BOTTOM
SURFACE OF THE HARDSCAPE OR ANY IMPROVEMENTS INSTALLED BY THE LESSEE
SUPPORTING SUCH HARDSCAPE ON THE ABOVE-DESCRIBED LAND THAT IS NOT SITUATED
UNDER THE HASLETT WAREHOUSE.

FURTHER EXCEPTING THEREFROM: ALL MINERAL DEPOSITS AS DEFINED IN SECTION 6407 OF
THE PUBLIC RESOURCES CODE, TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND
REMOVE SUCH DEPOSITS, AS RESERVED IN THE “QUITCLAIM DEED” RECORDED APRIL 9, 1998
BOOK H108 PAGE 319, OFFICIAL RECORDS.

PARCEL TWO:

A PERPETUAL EASEMENT APPURTENANT TO THE ABOVE DESCRIBED PROPERTY OVER A STRIP
OF LAND 3.50 FEET IN WIDTH LYING CONTIGUOUS TO AND EASTERLY OF THE EASTERLY
BOUNDARY LINE OF THE ABOVE DESCRIBED PREMISES AND EXTENDING FROM THE
NORTHERLY LINE OF BEACH STREET TO A POINT 27 FEET AND 1-1/8 INCHES SOUTHERLY
FROM THE SAID SOUTHERLY LINE OF JEFFERSON STREET, THIS EASEMENT BEING THE
PURPOSES OF PERPETUALLY MAINTAINING SUITABLE CLEARANCE FOR SPUR TRACT
PURPOSES; AND NO STRUCTURE SHALL BE CONSTRUCTED IN, OVER OR UPON SAID 3.50 FOOT
STRIP OF LAND EXCEPT SUCH STRUCTURES AS MAY BE REQUIRED TO DRAIN, MAINTAIN,
SUPPORT OR CONSTRUCT A SPUR TRACK AT ANY ELEVATION REQUIRED BY GOOD RAILROAD
PRACTICE, AS CREATED AND RESERVED IN THE DEED FROM CALIFORNIA PACKING
CORPORATION, A NEW YORK CORPORATION, TO SECURITY LITHOGRAPH COMPANY, A
CALIFORNIA CORPORATION, DATED FEBRUARY 12, 1948, AND RECORDED FEBRUARY 16, 1948
IN BOOK/REEL 4815 AT PAGE/IMAGE 487 OF OFFICIAL RECORDS OF THE CITY AND COUNTY
OF SAN FRANCISCO, CALIFORNIA.

PARCEL THREE:

-1-

 

A NON-EXCLUSIVE EASEMENT AS AN APPURTENANCE TO PARCEL ONE ABOVE, FOR
REASONABLE ACCESS THROUGH THE RETAINED SPACE AS DEFINED AND SET FORTH IN THAT
CERTAIN MEMORANDUM OF LEASE RECORDED JULY 25, 2001 AS DOCUMENT NO. 2001-
G986437-00 OF OFFICIAL RECORDS OF THE CITY AND COUNTY OF SAN FRANCISCO,
CALIFORNIA AND DESCRIBED IN SECTION 2.1.2 OF THE LEASE DATED OCTOBER 16, 2000.

Assessor’s Lot 002; Block 0010

-2-

 

Schedule 5.1(c)

Third Party Consents

	•	 	Consent of National Park Service

	•	 	Consent of Wachovia Bank National Association

	•	 	Such consents or other approvals as may be required by the applicable Governmental
Authority to assign or transfer any of the Licenses and Permits (to the extent assignable
and assigned) to Purchaser

	•	 	Such consents or other approvals as may be required under any of the Contracts for
assignment thereof

 

 

Schedule 5.1(d)

Personal Property Encumbrances

	 	 	 	 	 
	Quantity	 	Equipment Description	 	Owner
	1

	 	Postage Machine
	 	Pitney Bowes
	2

	 	Photocopier
	 	IKON
	1

	 	Fetco CBS 52H 1.5 Gallon Dual Coffee Brewer
	 	Mr. Espresso
	3

	 	Luxus 1.5 Gallon Coffee Dispensers
	 	Mr. Espresso
	3

	 	Payphones
	 	Pacific Telemanagement Services
	1

	 	Hard drive, screen, keyboard and connector
	 	Opentable
	1

	 	Water filtration unit
	 	Natura, Inc.
	Various

	 	Audio-visual equipment
	 	Swank
	2

	 	Mac desktops
	 	Eleven Wireless/LEAF Financial
	2

	 	Printers
	 	Eleven Wireless/LEAF Financial
	Various

	 	Set top boxes; power supplies; TV remotes; servers; computers
	 	LodgeNet
	2

	 	Desktop computers
	 	Global Business Center, Inc.
	1

	 	Printer
	 	Global Business Center, Inc.

 

 

Schedule 5.1(f)

 Compliance with Laws

 

 

Schedule 5.1(g)

Litigation

 

 

Schedule 5.1(h)

Employment Agreement / Plans

	•	 	Employment Plans

	 	•	 	Health and Welfare Plan — Summary Description, Benefits at a Glance and
Rate Sheet Provided
	 
	 	•	 	Multiple Employer Savings Plan (401K) — Summary Description Provided
	 
	 	•	 	Health Reimbursement Account Plan (Healthy SF Ordinance) — Summary
Description Provided
	 
	 	•	 	California Handbook Addendums for Hotel and Restaurant Employees
Provided (describes our benefits programs including medical, dental, vision, life
and disability insurance, vacation, leave, tuition reimbursement, holiday pay,
hotel and restaurant discounts,)

	•	 	Employment Agreements: Not Applicable

 

 

Schedule 5.1(i)

Tenant Leases

Retail Sublease with Winery Collective LLC

Retail Sublease with Starbucks Corporation

Retail Sublease with NYSF Partners, L.P.

Sublease Agreement between NYSF Partners, L.P. and American Scooter & Cycle
Rental, Inc.

 

 

Schedule 5.1(j)

Contracts

	 	 	 	 	 
	Vendor Name	 	Services Provided	 	Type
	AAA FIRE PROTECTION SERVICES

	 	Hood cleaning services
	 	Agreement
	ACCOUNTEMPS, OFFICETEAM, THE CREATIVE GR

	 	Temporary accounting services
	 	Agreement
	ADP SCREENING AND SELECTION SERVICES

	 	Payroll services
	 	KHRG Agreement
	ADP, INC.

	 	Payroll services
	 	KHRG Agreement
	ADVANCED RESERVATION SYSTEMS, INC., (ARES)

	 	Third party room distribution services
	 	Agreement (vendor locating agreement)
	ADVANTAGE FITNESS PRODUCTS, LLC

	 	Fitness equipment maintenance provider
	 	Agreement
	AETNA — LIFE INSURANCE COMPANY

	 	Health insurance provider
	 	KHRG Agreement
	AL UNIVERSAL CLEANING

	 	Kitchen cleaning provider
	 	Agreement
	ALSCO-AMERICAN LINEN DIVISION

	 	Linen laundering services
	 	Agreement
	AMERICAN EXPRESS

	 	Credit card processing services
	 	KHRG Agreement
	ANDREW FREEMAN & CO

	 	Marketing services
	 	KHRG Agreement
	AQUAPRIX INC.

	 	Water cooler provider
	 	Agreement
	ASSA ABLOY HOSPITALITY, INC.

	 	Key card support services
	 	Agreement
	AT&T

	 	Telephone/IT services
	 	Agreement (neither vendor or property can locate agreement)
	AVERO, LLC

	 	POS software provider
	 	Agreement
	BAY ALARM COMPANY

	 	Alarm monitoring services
	 	Agreement
	BLUE SHIELD OF CALIFORNIA

	 	Health insurance provider
	 	KHRG Agreement
	BON AIR SERVICES INC.

	 	Kitchen equipment maintenance services
	 	Agreement
	BOOKING.COM BV

	 	Third party room distribution services
	 	Agreement
	BROADCAST MUSIC, INC.

	 	Music licensing services
	 	Agreement
	BUY EFFICIENT LLC

	 	OS&E
	 	Agreement
	CLEAN HOUSE CLEANING, INC.

	 	Restaurant cleaning provider
	 	Agreement
	CONFERENCE DIRECT

	 	Third party room distribution services
	 	Agreement
	CVENT, INC.

	 	Meeting planner services
	 	Agreement
	DISCOVER

	 	Credit card processing services
	 	KHRG Agreement
	DIVERSIFIED COMPUTER CORP.

	 	CRM software provider
	 	Agreement
	DMX MUSIC

	 	Music provider
	 	Agreement
	DUNBAR ARMORED INC.

	 	Armored car services
	 	Agreement
	EDGEWOOD PARTNERS INSURANCE CENTER

	 	Insurance services provider
	 	KHRG Agreement
	ELEVEN WIRELESS INC.

	 	Telephone/IT services
	 	Agreement
	ENTERPRISE ROOFING SERVICE INC.

	 	Roof repair services
	 	Agreement
	EXPEDIA INCORPORATED

	 	Third party room distribution services
	 	Agreement

 

 

	 	 	 	 	 
	Vendor Name	 	Services Provided	 	Type
	EZELL’S TELEPHONE CO E-Z TEL INC

	 	Telephone/IT services
	 	Agreement
	FULL HOUSE MARKETING SOLUTIONS

	 	SEO provider
	 	Agreement
	GARDENERS’ GUILD, INC.

	 	Landscape services provider
	 	Agreement
	GBCBLUE

	 	Business center computer rental and service provider
	 	Agreement
	GILT TRAVEL INC. (JETSETTER)

	 	Third party room distribution services
	 	KHRG Agreement
	GRANITE TELECOMMUNICATIONS

	 	Telephone/IT services
	 	Agreement (neither vendor or property can locate agreement)
	GRAY V

	 	Music provider
	 	Agreement
	GREEN SEAL INC

	 	Environmental certification provider
	 	Agreement
	GROOPLE

	 	Meeting planner services
	 	KHRG Agreement
	HARTFORD LIFE GROUP INSURANCE COMPANY

	 	Health insurance provider
	 	KHRG Agreement
	HELMS BRISCOE

	 	Third party room distribution services
	 	KHRG Agreement
	HOSPITALITY SERVICES INC.

	 	Coyle secret shopper services
	 	KHRG Agreement
	HOTEL CREDIT ASSOCIATION L L C

	 	Credit check provider
	 	Agreement
	HOTWIRE

	 	Third party room distribution services
	 	KHRG Agreement (neither vendor or KHRG can locate agreement)
	ID90.COM

	 	Third party room distribution services
	 	Agreement
	IFC CREDIT CORPORATION

	 	Business center computer lease
	 	Agreement
	IKON FINANCIAL SERVICES

	 	Photocopier lease
	 	Agreement
	INNERWORKINGS, INC.

	 	Printed marketing collateral provider
	 	KHRG Agreement
	INTEGRATED DECISIONS AND SYSTEMS INC.

	 	Revenue management software license
	 	Agreement
	INTERCITY METRO CLEANERS

	 	Uniform and guest laundry services
	 	Agreement
	INTERNATIONAL AIR TRANSPORT ASSOCIATION

	 	Global Systems Solutions License Provider
	 	KHRG Agreement
	KAISER HEALTH PLAN

	 	Health insurance provider
	 	KHRG Agreement
	KAYAK SOFTWARE CORPORATION

	 	Third party room distribution services
	 	KHRG Agreement
	KROLL BACKGROUND AMERICA, INC.

	 	Background check provider
	 	Agreement
	LANYON, INC.

	 	GDS connectivity subscription provider
	 	Agreement
	LEAF FINANCIAL CORPORATION

	 	Business center computer lease
	 	Agreement
	LIGHT SODA ON TAP

	 	Food/Beverage Distributor
	 	Agreement
	LODGENET ENTERTAINMENT CORPORATION

	 	Cable and on-demand television provider
	 	Agreement
	MAI SYSTEMS CORP

	 	PMS license provider
	 	Agreement
	MR. ESPRESSO

	 	Food/Beverage Distributor
	 	Agreement
	NATURA WATER, INC.

	 	Food/Beverage Distributor
	 	Agreement
	NEWMARKET INTERNATIONAL, INC

	 	Sales software license provider
	 	Agreement

 

 

	 	 	 	 	 
	Vendor Name	 	Services Provided	 	Type
	NOR 1, INC.

	 	Reservation upgrade provider
	 	KHRG Agreement
	NU PR

	 	Public relations services provider
	 	Agreement
	NUS CONSULTING GROUP

	 	Energy consutling services
	 	KHRG Agreement
	OPEN TABLE

	 	Restaurant reservation provider
	 	Agreement
	ORBITZ

	 	Third party room distribution services
	 	KHRG Agreement
	OTIS ELEVATOR COMPANY

	 	Elevator maintenance provider
	 	Agreement
	P&A ADMINSITRATIVE SERVICES, INC.

	 	Health insurance provider
	 	Agreement
	PACIFIC TELEMANAGEMENT SERVICES

	 	Public pay phone provider
	 	Agreement
	PEGASUS SOLUTIONS COMPANIES

	 	Reservation provider
	 	KHRG Agreement (former)
	PITNEY BOWES GLOBAL FINANC. SERVICES LLC

	 	Postage machine lease
	 	Agreement
	PLANT DOMAIN

	 	Landscape services provider
	 	Agreement
	PRICELINE

	 	Third party room distribution services
	 	KHRG Agreement
	PROPARK AMERICA WEST, LLC

	 	Valet parking services
	 	Agreement
	RADIANT SYSTEMS, INC.

	 	POS software license provider
	 	Agreement
	RANGE ONLINE MEDIA INC.

	 	Restaurant search engine marketing provider
	 	Agreement
	RELAX & REJUVENATE

	 	In-room massage provider
	 	Agreement
	SABRE, INC.

	 	Reservation provider
	 	KHRG Agreement
	SAN FRANCISCO MUNICIPAL TRANSPORTATION

	 	Transportation services
	 	Agreement
	SESAC

	 	Music licensing services
	 	Agreement
	SOFTBRANDS INC

	 	PMS license provider
	 	Agreement
	STARCITE, INC.

	 	Third party room distribution services
	 	Agreement
	SUNGARD AVAILABILITY SERVICES

	 	Telephone/IT services
	 	KHRG Agreement
	SUPERCLICK NETWORKS, INC.

	 	Telephone/IT services
	 	Agreement
	SWANK AUDIO VISUALS, LLC

	 	Audio visual services provider
	 	Agreement
	THE CANNERY PROPERTIES

	 	Courtyard Use
	 	Agreement
	THE DESTINATION CENTER

	 	Concierge services
	 	Agreement
	THE MARK TRAVEL CORPORATION

	 	Third party room distribution services
	 	KHRG Agreement
	TOUR LINKS LLC

	 	Concierge services
	 	Agreement (former)
	TRAVELOCITY.COM L.P.

	 	Third party room distribution services
	 	Agreement
	TRAVELZOO

	 	Online advertising services
	 	KHRG Agreement
	VAS HOLDINGS, INC.

	 	Reservation call center provider
	 	KHRG Agreement
	VERIZON WIRELESS

	 	Telephone/IT services
	 	KHRG Agreement
	VFM LEONARDO, INC.

	 	Virtual Tours
	 	Agreement
	VISION SERVICE PLAN

	 	Health insurance provider
	 	KHRG Agreement
	WELLS FARGO

	 	Credit card processing services
	 	KHRG Agreement
	WHITEBOARD LABS

	 	Reservation connectivity services
	 	Agreement
	WILINE NETWORKS, INC.

	 	Telephone/IT services
	 	Agreement
	WORKTOPIA

	 	Meeting planner services
	 	KHRG Agreement
	XETA TECHNOLOGIES

	 	Telephone/IT services
	 	Agreement
	XO COMMUNICATIONS

	 	Telephone/IT services
	 	Agreement
	YOJIMBO PROTECTION SERVICES

	 	Security services provider
	 	Agreement

 

 

Schedule 5.1(p)

Existing Loan Documents

All of the following documents are dated as of February 23, 2007 unless otherwise noted:

	 	•	 	Promissory note by Seller in favor of Wachovia Bank National Association (“Lender”) in
the amount of Forty Two Million Dollars
	 
	 	•	 	Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing by Seller to
First American Title Insurance Company, as trustee, for the benefit of Lender
	 
	 	•	 	Assignment of Leases and Rents and Security Deposits by Seller in favor of Lender
	 
	 	•	 	The Guaranty
	 
	 	•	 	Central Account Agreement among Seller, Lender as lender and Lender as bank
	 
	 	•	 	Rent Account Agreement among Seller, Lender and Bank of America, N.A.
	 
	 	•	 	Consent and Agreement from Manager to Lender
	 
	 	•	 	UCC-1 Financing Statement covering certain assets of Seller
	 
	 	•	 	Letter Agreement regarding Credit Card Processing Services between Wells Fargo Merchant
Services, Seller and Manager dated February 22, 2007

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