Document:

exv10w2

Exhibit 10.2

THE SIR FRANCIS DRAKE HOTEL

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS

BETWEEN

SFD UNION SQUARE, LLC,

a Delaware limited liability company,

AS SELLER

AND

HUSKIES OWNER LLC,

a Delaware limited liability company,

AS PURCHASER

As of May 20, 2010

 

 

PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS

     THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this “Agreement”) is
made as of May 20, 2010 (the “Effective Date”), by and between SFD UNION SQUARE, LLC, a
Delaware limited liability company (“Seller”), and HUSKIES OWNER LLC, a Delaware limited
liability company (“Purchaser”).

W I T N E S S E T H:

     A. Seller is the owner of the Property (defined below). The Property is located in San
Francisco, California.

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

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged by the parties, Purchaser and Seller agree as follows:

ARTICLE I

PURCHASE AND SALE

	1.1	 	Agreement of Purchase and Sale. Subject to the terms and conditions hereinafter set
forth, Seller agrees to sell and convey and Purchaser agrees to purchase, all of Seller’s
right, title and interest in and to the following:

(a) Seller’s interest in the real property commonly known as 450 Powell Street, San
Francisco, California, as more particularly described on Schedule 1.1(a) attached
hereto, together with all of the right, title and interest of Seller pertaining to such real
property, including without limitation all appurtenant rights, rights of way, easements,
water or littoral rights, all rights to any minerals, oil, gas and other hydrocarbon
substances, or any portion thereof and Seller’s right, title and interest in and to all
streets, alleys, strips and gores abutting the real property (the property described in this
clause (a) of Section 1.1 being herein referred to collectively as the
“Land”);

(b) the buildings, structures, fixtures and other improvements on the Land, including
specifically, without limitation, that certain hotel commonly known as “The Sir Francis
Drake” (the “Hotel”), including without limitation any and all hotel rooms, meeting
facilities, conference rooms, parking facilities, restaurants, spa and pool facilities (the
property described in this clause (b) of this Section 1.1 being herein referred to
collectively as the “Improvements”);

(c) all tangible personal property owned by Seller and located upon the Land or within the
Improvements and used solely in connection with the operation of the Land and Improvements,
including, without limitation, appliances, furniture, furnishings, equipment, carpeting,
draperies and curtains, tools and supplies, decorations, china,
glassware, linens, silver, utensils, all vehicles (if any), and other items of personal
property (excluding cash and deposit accounts) in all cases subject to (i) depletion,

 

 

resupply, substitution, replacement and disposition in the ordinary course of business and
(ii) the provisions of subparagraph (g) below and the provisions of Section 4.4.7
regarding unopened inventories (the property set forth in this Section 1.1(c) being
herein referred to collectively as the “Personal Property”);

(d) subject to Section 4.4 below, all contracts or reservations for the use of guest
rooms, ballroom and banquet facilities, conference facilities, meeting rooms or other
facilities of the Hotel or located within the Improvements (“Bookings”);

(e) all assignable contracts and agreements (collectively, the “Service Contracts”)
relating to the upkeep, repair, maintenance or operation of the Land, the Improvements or
the Personal Property or other property used in connection with the operation of the Hotel
which are (i) listed on Schedule 1.1(e)-1 attached hereto but excluding the
Management Agreement (defined below) and any Service Contracts that are terminated on or
before Closing pursuant to the terms of this Agreement, (ii) listed on Schedule
1.1(e)-2 (the “Equipment Leases”), and (iii) entered into after the Effective
Date and which Seller is permitted to enter into under the terms of this Agreement.

(f) (i) all assignable existing warranties and guaranties (expressed or implied) issued to
Seller in connection with the Improvements or the Personal Property; (ii) all transferable
names, marks, logos and designs, used in the operation or ownership of the Land, the
Improvements or the Personal Property or any part thereof, if any, including Seller’s right
to the mark SIR FRANCIS DRAKE (Reg. No. 1,067,912) but specifically excluding any name
including “Kimpton” (e.g. “Kimpton Hotels & Restaurants”, “Kimpton Group”, etc.) and the
name “Scala’s Bistro”, and all derivatives and cognates thereof and any logos or other
identification or trade marks relating thereto (and Buyer acknowledges that Seller expressly
disclaims any representation or warranty, express or implied, regarding (A) ownership, right
to use or registration of any names, marks, logos, designs or other intellectual property,
or (B) whether use of any intellectual property violates any ownership or other rights of
any third parties); (iii) all transferable licenses, franchises and permits owned by Seller
and used in or relating to the ownership, occupancy or operation of the Land, the
Improvements or the Personal Property or any part thereof, subject to Purchaser’s compliance
with any limitations or restrictions on transfer or assignment of any computer-related
materials or software which are contained in any license or similar agreement; (iv) all
assignable telephone numbers, TWX numbers, post office boxes, signage rights, utility and
development rights and privileges, general intangibles, business records, site plans,
surveys, environmental and other physical reports, plans and specifications pertaining to
the Land and the Personal Property; and (v) all assignable websites and domains used
exclusively for the Hotel, including access to the FTP files of the websites to obtain
website information and content pertaining to the Hotel (the property described in this
clause (f) of this Section 1.1 being herein referred to collectively as the
“Intangibles”);

(g) subject to Section 4.4.7 below, (i) all food and beverages (subject to any legal
restrictions pertaining to the sale or transfer of alcoholic beverages and excluding all
food and beverage inventory in room minibars which is owned by Club Minibar (defined below)
and shall be retained by Club Minibar if the Club Minibar contract is terminated

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at Closing); (ii) inventory held for sale to Hotel guests and others in the ordinary course of
business including all opened and unopened retail inventory in any area at the Hotel
conducting retail sales (collectively, “Retail Inventory”); (iii) engineering,
maintenance and housekeeping supplies, including soap and cleaning materials, fuel and
materials; stationery and printing items and supplies; and (iv) other supplies of all kinds,
whether used, unused or held in reserve storage for future use in connection with the
maintenance and operation of the Land, the Improvements or the Personal Property, in each
case wherever located, together with any additions thereto prior to Closing (defined below)
and subject to depletion, resupply, substitution, replacement and disposition in the
ordinary course of business (all of the foregoing being referred to herein as the
“Consumable Inventory” and, to the extent contained in unopened boxes, bottles, jars
or containers of any type as of the Closing Date (defined below), shall collectively be
referred to, together with unopened packages of china, glass, silver and linens, as the
“Unopened Inventory”);

(h) all leases for the lease and occupancy of space at the Hotel (collectively, the
“Leases”) listed and described on Schedule 1.1(h) attached hereto and made a
part hereof, including any deposits relating to such Leases held by Seller and not applied
to the tenant’s obligations as of the Closing Date. For purposes of this Agreement,
“Leases” do not include Bookings;

(i) [Intentionally omitted];

(j) subject to Section 4.4.9 hereof, Seller’s interest in the funds contained in
“house banks” for the Hotel as of the Cut-Off Time (defined in Section 4.4.10
below), whether held in the name of Seller, the Hotel or Manager and owned by Seller
(collectively, the “House Bank Funds”). Purchaser expressly acknowledges and agrees
that the Property to be transferred to Purchaser pursuant to this Agreement does not include
any reserve or other accounts created or maintained by Seller or Manager (defined below) in
connection with the ownership or operation of the Hotel; and

(k) files and records (including but not limited to all files and records relating to the
Hotel and the development, operation, management, maintenance, repair, marketing and
promotion thereof, such as financial records and statements, maintenance records, building
plans, specifications and drawings, group and individual guest history records and all
reservation and booking records for rooms and meeting space, regardless of whether such
files and records are stored in paper form, on computer hard drive, computer disk, CD Rom,
DVD or other medium).

	1.2	 	Property Defined.

(a) The Land and the Improvements are sometimes collectively referred to herein as the
“Real Property” and the Real Property, the Personal Property, the Bookings, the
Service Contracts, the Intangibles, the Consumable Inventory, the Leases and the House Bank
Funds are hereinafter sometimes referred to collectively as the “Property”; provided
that, the Purchase Price does not include, and shall be adjusted with respect to, the House

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Bank Funds, the Unopened Inventory, and the other adjustment items described in Section
4.4 below.

(b) Notwithstanding anything to the contrary in Section 1.1 or Section
1.2(a) above, the following items are expressly excluded from the Property:

(i) All cash on hand or on deposit in any operating account or other account or
reserve, except for security deposits held by Seller as landlord with respect to any
Lease and the House Bank Funds which are to be transferred at Closing subject to the
terms of this Agreement;

(ii) Any tangible or intangible property (including, without limitations, fixtures,
personal property or intellectual property) owned by (A) the supplier, vendor,
licensor, lessor or other party under any Service Contracts, (B) the tenants under
any Leases, (C) Manager, (D) any employees, or (E) any guests or customers of the
Hotel; and

(iii) All accounts receivable of the Hotel and related operations which are
outstanding as of the Closing Date (collectively, “Receivables”), provided
that, from and after the Closing Date Purchaser shall cause Manager to continue to
collect Receivables in the ordinary course of business of the operation of the Hotel
in a manner consistent with Manager’s collection of accounts receivable owed to
Purchaser and shall promptly deliver to Seller any funds received by Purchaser or
Manager after the Closing Date in connection with the Receivables. The provisions
of this Section 1.2(b)(iv) shall survive Closing.

	1.3	 	Permitted Exceptions. The Property shall be conveyed subject to all matters which
are, or are deemed to be, Permitted Exceptions pursuant to Article II hereof (collectively,
the “Permitted Exceptions”).
	 
	1.4	 	Purchase Price. Seller is to sell and Purchaser is to purchase the Property for a
total of NINETY MILLION AND NO/100 DOLLARS ($90,000,000.00) (the “Purchase Price”).
	 
	1.5	 	Payment of Purchase Price.

(a) On the Closing Date, Purchaser shall deliver to Escrow Agent (defined below) by wire
transfer an amount equal to the Purchase Price, as increased or decreased by prorations and
adjustments as herein provided, less the Earnest Money (defined below) previously delivered
to Escrow Agent.

(b) The Purchase Price, as increased or decreased by prorations and adjustments as herein
provided, shall be payable in full at Closing by wire transfer of immediately available
federal funds to a bank account designated by Seller in writing to Purchaser and Escrow
Agent prior to the Closing.

	1.6	 	Earnest Money.

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(a) Within one (1) business days following the full execution and delivery of this Agreement
by Seller and Purchaser, Purchaser shall deposit with Chicago Title Insurance Company
(“Escrow Agent”) having its office at 700 South Flower, Suite 3305, Los Angeles, CA
90017, Attention: Marley Harrill, the sum of FIVE MILLION AND NO/100 DOLLARS ($5,000,000)
(together with interest earned thereon, the “Earnest Money”) in good funds, either
by certified bank or cashier’s check or by federal wire transfer. The full amount of the
Earnest Money is deemed earned by Seller when delivered pursuant hereto by Purchaser and is
fully non-refundable to Purchaser except in the event that this Agreement is timely
terminated as a result of Purchaser’s election to terminate strictly in accordance with and
pursuant to Section 2.3(b), Section 4.8, Section 6.3, or Section
7.2 below, in which case the full amount of the Earnest Money shall be refunded to
Purchaser within two (2) business days after receipt of the notice of exercise of such right
or notice of such termination.

(b) Escrow Agent shall hold the Earnest Money in an interest-bearing account in accordance
with the terms and conditions of this Agreement. All interest accruing on such sums shall
become a part of the Earnest Money and shall be distributed as Earnest Money in accordance
with the terms of this Agreement. Notwithstanding any provision of this Agreement to the
contrary, in no event shall Seller have any responsibility or liability to Purchaser in
connection with the accrual or payment of interest on any portion of the Earnest Money.

(c) Time is of the essence for the delivery of Earnest Money under this Agreement and the
failure of Purchaser to timely deliver any portion of the same shall be a material default,
and shall entitle Seller, as Seller’s sole remedy on account thereof, the right to terminate
this Agreement by notice thereof to Purchaser at any time on or before the date on which the
Earnest Money has been delivered, anything herein contained to the contrary notwithstanding.

	1.7	 	Escrow Instructions. The terms and conditions set forth in this Agreement shall
constitute both an agreement between Seller and Purchaser and escrow instructions for Escrow
Agent. Seller and Purchaser shall promptly execute and deliver to Escrow Agent any separate
or additional escrow instructions requested by Escrow Agent that are consistent with the terms
of this Agreement. Any separate or additional instructions shall not modify or amend this
Agreement unless expressly set forth by the mutual consent of Seller and Purchaser and to the
extent of any conflict between this Agreement and any such separate/additional instructions,
the provisions of this Agreement shall control.

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	1.8	 	Management Agreement. Purchaser acknowledges that (a) the Hotel is being operated
and managed by Kimpton Hotel & Restaurant Group, LLC, a Delaware limited liability company (as
successor in interest to Kimco Hotel & Restaurant Management Co.) (“Manager”),
pursuant to that certain Hotel Operating Agreement, dated as of December 2, 1993, together
with that certain Reconciliation Agreement dated as of December 2, 1993, as amended by that
certain (i) letter agreement dated January 3, 1997, and (ii) Amendment to and Assignment of
Hotel Operating Agreement dated as of June 30, 2005 between Manager and Seller (as amended,
the “Management Agreement”), and (b) the Management Agreement will be assigned to, and
assumed by, Purchaser at Closing.

ARTICLE II

TITLE AND SURVEY

	2.1	 	Title Report. Seller has obtained and delivered to Purchaser, a title report dated
March 11, 2010 (Order No. 81000549-56) (the “Title Report”) covering the Land and the
Improvements from Chicago Title Company (the “Title Company”) (to be coordinated with
both Seller and Purchaser’s title representatives) and, promptly following execution of this
Agreement, shall deliver a copy of each document referenced in the Title Report as an
exception to title to the Real Property. Purchaser shall deliver to Seller, within
five (5) days after receipt by Purchaser, a copy of any updates (each a “Title
Update”) to the Title Report issued by the Title Company.

	2.2	 	Survey. Seller has obtained and delivered to Purchaser and the Title Company, at
Purchaser’s expense, an ALTA survey of the Real Property prepared by Martin M. Ron Associates
dated April 12, 2010 (Job No. S-7446) (the “Survey”).
	 
	2.3	 	Title Updates.

(a) Except for Monetary Encumbrances (defined below), Purchaser has approved all matters
disclosed by the Title Report and the Survey and all title exceptions and survey matters so
disclosed shall constitute “Permitted Exceptions”.

(b) Purchaser shall have five (5) days after receipt of a Title Update, if any, to notify
Seller, in writing, of such objections as Purchaser may have to anything contained in such
Title Update. In the event Purchaser shall notify Seller, in writing, of objections to
title or to matters shown on a Title Update, Seller shall have the right, but not the
obligation, to cure such objections. Within five (5) days after receipt of Purchaser’s
notice of objections, Seller shall notify Purchaser in writing whether Seller elects to
attempt to cure any or all of such objections. If Seller elects to attempt to cure, Seller
shall have the right to attempt to remove, satisfy or cure the same and for this purpose
Seller shall, at Seller’s election, be entitled to a reasonable adjournment of the Closing
if additional time is required, but in no event shall the adjournment exceed sixty (60) days
after the Outside Closing Date (any cure to be effected by affirmative title insurance shall
first be subject to the prior consent of Purchaser, same to be granted or denied in its
reasonable discretion). If Seller elects not to cure any objections specified in Purchaser’s notice,
or if Seller is unable to effect a cure of those objections which it elected to cure prior to the

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Closing (or any date to which the Closing has been adjourned) and so notifies
Purchaser in writing, or if Seller fails to respond to Purchaser’s notice within said
five (5) day period, Purchaser shall have the following options: (i) to accept a conveyance
of the Property subject to the Permitted Exceptions and any matter objected to by Purchaser
which Seller is unwilling or unable to cure (each of which shall also be deemed to be
Permitted Exceptions), and without reduction of the Purchase Price; or (ii) only if the
title exception is materially adverse to the ownership or operation of the Real Property, to
terminate this Agreement by sending written notice thereof to Seller, and upon delivery of
such notice of termination, this Agreement shall terminate and the Earnest Money shall be
returned to Purchaser, and thereafter neither party hereto shall have any further rights,
obligations or liabilities hereunder except to the extent that any right, obligation or
liability set forth herein expressly survives termination of this Agreement. If Seller
notifies Purchaser that Seller does not intend to attempt to cure any title objection or
fails to respond to Purchaser’s notice within said five (5) day period; or if, having
commenced attempts to cure any objection, Seller later notifies Purchaser in writing that
Seller will be unable to effect a cure thereof; Purchaser shall, within five (5) days after
such notice has been given, notify Seller in writing whether Purchaser shall elect to accept
the conveyance under clause (i) or to terminate this Agreement under clause (ii).
Purchaser’s failure to notify Seller of termination of this Agreement within such five (5)
day period shall be deemed to be an irrevocable election under clause (i) to accept
conveyance of the Property. Notwithstanding any provision of this Agreement to the
contrary, in no event shall Seller have any obligation to cure any title matter objected to
by Purchaser; provided, however, (A) if any of the objections (1) consist of delinquent
taxes, mortgages, deeds of trust, security agreements, construction or mechanics’ liens, tax
liens or other liens or charges in a fixed sum or capable of computation as a fixed sum and
(2) were caused, assumed or created by Seller (collectively, “Monetary
Encumbrances”), then, to that extent, Seller shall be obligated to pay and discharge (or
cause the Title Company to insure over such objections) any such objections and Escrow Agent
is authorized to pay and discharge at Closing such objections, and (B) Purchaser
acknowledges that Seller’s existing financing for the Property matures on July 8, 2010 and
in the event any Title Update discloses an exception to title arising from such financing,
Seller may cure such title matter by repaying the financing in full at the Closing.
Notwithstanding the foregoing, Seller shall cause the release and discharge of all Monetary
Encumbrances.

	2.4	 	Conveyance of Title. At Closing, Seller shall convey and transfer to Purchaser its
interest in the Land and fee title to the Improvements subject to the Permitted Exceptions.
Notwithstanding anything contained herein to the contrary, the Real Property shall be conveyed
subject to the following matters, all of which shall be deemed to be Permitted Exceptions:

(a) the lien of all ad valorem real estate taxes and assessments not yet due and payable as
of the Closing Date, subject to adjustment as herein provided;

(b) local, state and federal laws, ordinances or governmental regulations, including but not
limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect
relating to the Real Property;

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(c) items appearing of record or shown on the Survey and, in either case, not objected to by
Purchaser or waived or deemed waived by Purchaser in accordance with Section 2.3
hereof; and

(d) the rights of the tenants under the Leases.

	2.5	 	Title Policy. It shall be an express condition precedent hereunder to Purchaser’s
obligations that, at Closing, the Title Company issue an ALTA owner’s title insurance policy
Form B (6/17/06) (“Title Policy”) to Purchaser in accordance with the Title Report, in
the amount of the Purchase Price, without those standard exceptions objected to by Purchaser
which Title Company has expressly agreed in writing to remove, insuring Purchaser’s interest
in and to the Real Property as of the date and time of Closing (with appropriate gap coverage
to date of recordation, if applicable), subject only to the Permitted Exceptions. The Title
Policy shall include an encroachment endorsement (ALTA Form 9.2-06 modified) in the form
delivered to Purchaser on May 19, 2010 without inclusion of a liability limitation of
$54,727,454 (“Encroachment Endorsement”). Purchaser may request issuance of
endorsements to the Title Policy in addition to the Encroachment Endorsement as may required
by Purchaser, at Purchaser’s expense, but issuance of such endorsements (other than the
Encroachment Endorsement) shall not be a condition to Purchaser’s obligation to purchase the
Property under this Agreement. Seller shall, at Closing, deliver an owner’s affidavit in the
form attached hereto as Exhibit H hereto (the “Owner’s Affidavit”).

ARTICLE III

INSPECTION

	3.1	 	Right of Inspection. Purchaser shall, subject to the rights of the Manager under the
Management Agreement, guests of the Hotel and the tenants under the Leases, have the right to
make a physical inspections of the Real Property and to examine at such place or places at the
Hotel or elsewhere as the same may be located, any operating files maintained by or for the
benefit of Seller in connection with the leasing, operation, current maintenance and/or
management of the Property (“Property Information”), including, without limitation,
the Leases, the Service Contracts, insurance policies, bills, invoices, receipts and other
general records relating to the income and expenses of the Hotel, correspondence, surveys,
plans and specifications, warranties for services and materials provided to the Hotel,
environmental audits and similar materials and any other documents relating to the Property in
Seller’s or Manager’s possession or control, but excluding materials not directly related to
the current maintenance and/or management of the Property such as, without limitation,
Seller’s financial projections, forecasts, budgets, appraisals, accounting and tax records,
internal memoranda, correspondence and reports
and similar proprietary, elective or confidential information. Purchaser shall keep all
Property Information strictly confidential, provided that Purchaser may deliver copies of
Property Information to its attorneys, accountants and other advisors in connection with the
acquisition of the Property and to current and prospective lenders and partners provided
that such parties agree to maintain the confidentiality of such Property Information.
Purchaser understands and agrees that any on-site inspections of the

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	 	 	Property shall be conducted upon at least twenty-four (24) hours’ prior notice to Seller (which notice may be
given via telephone or e-mail, anything herein contained to the contrary notwithstanding).
Seller may have its respective representatives attend any such inspections. Such physical
inspection shall not disturb Hotel guests or tenants under the Leases nor unreasonably
interfere with the use of the Property by Seller or Manager. Such physical inspection shall
not be invasive in any respect (unless Purchaser obtains Seller’s prior written consent,
which shall not be unreasonably withheld), and in any event shall be conducted in accordance
with standards customarily employed in the industry and in compliance with all governmental
laws, rules and regulations. Following each entry by Purchaser with respect to inspections
and/or tests on the Real Property, Purchaser shall repair any damage caused to the Property
on account of any such inspections and/or tests, at Purchaser’s sole cost and expense.
Seller shall reasonably cooperate with Purchaser in its due diligence but shall not be
obligated to incur any liability or expense in connection therewith. Purchaser shall not
disrupt Seller’s or Manager’s or any tenant’s or guest’s activities on the Real Property and
shall not contact Manager, any of its employees, or any other employees working at the
Hotel, any guests of the Property, any party to a Service Contract, any tenants under the
Leases, any lender providing financing secured by the Real Property or any governmental
authority without (a) providing reasonable advance notice to Seller (via telephone or e-mail
being acceptable for this purpose, anything herein contained to the contrary
notwithstanding), and (b) irrespective of whether Purchaser delivers such notice, providing
Seller with the option to either attend or participate in any meetings, conversations or
communications between Purchaser and such party or expressly waiving its right to do so in
writing and Purchaser shall not communicate in any manner with any such party without
satisfying the foregoing. Purchaser agrees to indemnify against, defend, protect and hold
Seller harmless from and against any claim for liabilities, losses, costs, expenses
(including reasonable attorneys’ fees actually incurred), damages or injuries arising out of
or resulting from or in connection with the inspection of the Property by Purchaser or its
agents, employees, representatives, consultants or contractors and notwithstanding anything
to the contrary in this Agreement, such obligation to indemnify, defend, protect and hold
harmless Seller shall survive Closing or any termination of this Agreement. All inspections
shall occur at reasonable times agreed upon by Seller and Purchaser. Purchaser agrees (i)
that prior to entering the Property to conduct any inspection, Purchaser shall obtain and
maintain, and shall cause each of its contractors and agents to maintain (and shall deliver
evidence satisfactory to Seller thereof), at no cost or expense to Seller, commercial
general liability insurance from an insurer reasonably acceptable to Seller in the amount of
Three Million Dollars ($3,000,000) with combined single limit for personal injury or
property damage per occurrence, such policies to name Seller as an
additional insured party, which insurance shall provide coverage against any claim for
personal injury or property damage caused by Purchaser or its agents, representatives or
consultants in connection with any such tests and investigations, and (ii) to keep the
Property free from all liens and encumbrances on account of any such inspections and/or
tests. Purchaser’s insurance may not be canceled or amended except upon thirty (30) days’
prior written notice to Seller.
	 
	3.2	 	Seller Due Diligence Materials. PURCHASER ACKNOWLEDGES THAT INFORMATION RELATED TO
THE PROPERTY CONTAINED IN THE SECURE

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	 	 	WEBSITE (THE “E-ROOM”) TO WHICH PURCHASER HAS
PREVIOUSLY BEEN GRANTED ACCESS HAS BEEN MADE AVAILABLE TO PURCHASER IN THE E-ROOM BY SELLER.
BY EXECUTING THIS AGREEMENT, PURCHASER ACKNOWLEDGES ITS RECEIPT THEREOF OR THE AVAILABILITY OF
IT THEREOF AND THAT (1) PURCHASER HAS RECEIVED COPIES OF THE ENVIRONMENTAL, ENGINEERING, SOILS
AND OTHER REPORTS REGARDING THE CONDITION OF THE PROPERTY (COLLECTIVELY, THE
“REPORTS”) LISTED ON SCHEDULE 3.2 ATTACHED HERETO, (2) IF SELLER DELIVERS ANY
ADDITIONAL REPORTS OR OTHER DOCUMENTS TO PURCHASER, PURCHASER WILL ACKNOWLEDGE IN WRITING THAT
IT HAS RECEIVED SUCH REPORTS OR OTHER DOCUMENTS PROMPTLY UPON RECEIPT THEREOF, AND (3) ANY
REPORTS OR OTHER DOCUMENTS DELIVERED OR TO BE DELIVERED BY SELLER OR ITS AGENTS OR CONSULTANTS
TO PURCHASER ARE BEING MADE AVAILABLE SOLELY AS AN ACCOMMODATION TO PURCHASER AND WITHOUT ANY
REPRESENTATION OR WARRANTY OF SELLER AS TO THEIR ACCURACY OR COMPLETENESS OF FACTS OR OPINIONS
SET FORTH THEREIN EXCEPT AS EXPRESSLY SET FORTH IN SECTION 5.1 AND THAT ANY RELIANCE
BY PURCHASER ON SUCH REPORTS OR OTHER DOCUMENTS IN CONNECTION WITH THE PURCHASE OF THE
PROPERTY IS UNDERTAKEN AT PURCHASER’S SOLE RISK. PURCHASER AGREES THAT SELLER SHALL HAVE NO
LIABILITY OR OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION FROM THE OFFERING
MATERIALS PREPARED IN CONNECTION WITH THE SALE OF THE PROPERTY OR ANY REPORT OR OTHER
DOCUMENTS MADE AVAILABLE TO PURCHASER OR ITS REPRESENTATIVES SUBJECT TO SELLER’S
REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 5.1. PURCHASER HAS CONDUCTED ITS
OWN INVESTIGATION OF THE CONDITION OF THE PROPERTY TO THE EXTENT PURCHASER DEEMS SUCH AN
INVESTIGATION TO BE NECESSARY OR APPROPRIATE. Prior to closing the E-Room, Seller shall
supply to Purchaser a disc or discs with all reports and other information posted to the
E-Room as of Closing (this sentence shall survive Closing). For purposes of this Agreement,
the term “Seller Due Diligence Materials” shall mean (i) the Reports, the Property
Information and all other documents and materials provided or otherwise made available by
Seller to Purchaser pursuant to Section 3.1 and the other provisions of this Agreement
or otherwise, together with any copies or reproductions of
such documents or materials, or any summaries, abstracts, compilations, or other analyses
made by Purchaser based on the information in such documents or materials, and (ii) all
information set forth in this Agreement and the exhibits and schedules attached hereto and
hereby made a part hereof.
	 
	3.3	 	No Right of Termination on Account of Inspections. Purchaser acknowledges that prior
to its execution and delivery of this agreement, it conducted such inspections and tests with
respect to the Property as it desired. Purchaser hereby waives its right to terminate this
Agreement on account of its dissatisfaction with any of its inspections and/or tests of the
Property. Purchaser acknowledges that, subject to any express right of Purchaser to terminate
this Agreement set forth elsewhere herein, Purchaser is bound to proceed to

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	 	 	Closing and consummate the transaction contemplated hereby pursuant to the terms of this Agreement.

ARTICLE IV

CLOSING

	4.1	 	Time and Place; Pre-Closing.

     4.1.1 Subject to the provisions of Sections 4.6 and 4.7 below, the
consummation of the transaction contemplated hereby (“Closing”), as evidenced by the
payment and release of the Purchase Price to Seller, shall occur on or before 12:00 Noon
(San Francisco time) on June 21, 2010 (“Outside Closing Date”), provided that the
same is a business day, and if not, then on the immediately next succeeding business day
(with the actual date of Closing being referred to herein as the “Closing Date”).
The Closing shall occur through an escrow administered by Escrow Agent with the Purchase
Price and all documents (unless otherwise mutually agreed) shall be deposited with the
Escrow Agent as escrowee. At Closing, Seller and Purchaser shall perform the obligations
set forth in, respectively, Section 4.2 and Section 4.3, the performance of
which obligations shall be concurrent conditions. Seller and Purchaser acknowledge that, if
a “special” recording is not available, the Closing may occur pursuant to a “gap closing”
whereby the Deed (defined below) is recorded after the Closing Date.

     4.1.2 Notwithstanding anything herein to the contrary, the parties shall “pre-close”
the sale of the Property on the business day before the Closing Date (the “Pre-Closing
Date”). The term “pre-close” shall mean that each of the parties shall deliver to the
Escrow Agent no later than 4:00 p.m. (San Francisco time) on the Pre-Closing Date all of the
documents and other items (other than the closing proceeds) required to be delivered by such
party for Closing (“Closing Deliveries”), including all of the closing documents
required pursuant to Section 4.3 hereof. Further, the Title Company shall have
acknowledged that it has all Closing Deliveries necessary to close and issue the Title
Policy, and that the only remaining tasks to complete the Closing are for Purchaser to fund
the balance of the Purchase Price to escrow on the Closing Date, the Title Company, on the
Closing Date, to record the Closing Deliveries which are to be recorded
(provided that Title Company may record such documents after the Closing Date provided
that the Closing is deemed to occur on the Closing Date and all other conditions to Closing
are satisfied) and to release the remaining Closing Deliveries to the party entitled
thereto, including, without limitation, delivery of the Purchase Price to Seller, which
tasks the parties (and Purchaser’s lender, if necessary) shall authorize the Title Company
to perform no later than 12:00 Noon (San Francisco time) on the Closing Date. With respect
to the closing adjustments to be made between the parties pursuant to Section 4.4
hereof, the adjustments shall continue to be made effective as of the Cutoff Time, but on
the closing statement executed by the parties on the Pre-Closing Date, the parties shall in
good faith estimate those adjustments which are not capable of being finalized prior to the
Cutoff Time, and the parties shall reconcile said estimated adjustments pursuant to
Section 4.4.13 hereof.

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	4.2	 	Seller’s Closing Obligations and Deliveries. At Closing, subject to Section
4.1 above, Seller shall through Escrow Agent make the following deliveries and take the
following actions:

(a) Execute and deliver to Purchaser one (1) original grant deed (“Deed”) in the
form attached hereto as Exhibit A and made part hereof, conveying fee title in and
to the Land and Improvements subject to the Permitted Exceptions, together with any required
real estate transfer tax declarations or any other similar documentation required to
evidence the payment of any tax imposed by the State of California, the County of San
Francisco or the City of San Francisco on the transaction contemplated hereby;

(b) Execute and deliver to Purchaser two (2) original counterparts of a bill of sale in the
form attached hereto as Exhibit B and made a part hereof conveying the Personal
Property and Consumable Inventory without warranty of title or use and without warranty,
expressed or implied, as to merchantability and fitness for any purpose but subject to the
representations and warranties of Seller expressly set forth in Section 5.1 of this
Agreement;

(c) Execute and deliver to Purchaser two (2) original counterparts of an assignment of
Seller’s interest in the Service Contracts, the Bookings and the other Intangibles (in each
case to the extent assignable) (“Assignment of Contracts”) in the form attached
hereto as Exhibit C and made a part hereof;

(d) Execute and deliver to Purchaser two (2) original counterparts of an assignment of
Seller’s interest in the Leases in the form attached hereto as Exhibit D and made a
part hereof;

(e) Deliver to Purchaser a certificate, dated as of the Closing Date and executed on behalf
of Seller by a duly authorized officer thereof, stating that the representations and
warranties of Seller contained in this Agreement are true and correct in all material
respects as of the Closing Date (with appropriate modifications of those representations and
warranties made in Section 5.1 hereof to reflect any changes therein including
without limitation any changes resulting from actions under Section 5.4 hereof) or
identifying any representation or warranty which is not, or no longer is, true and correct
and explaining the state of facts giving rise to the change. In no event shall Seller be
liable to Purchaser for, or be deemed to be in default hereunder by reason of, any breach of
representation or warranty which results from any change that (i) occurs between the
Effective Date and the Closing Date and (ii) is permitted under the terms of this Agreement
or is beyond the reasonable control of Seller to prevent; provided, however, any of the
foregoing (other than those that are permitted under the terms of this Agreement) shall, if
materially adverse, constitute the non-fulfillment of the condition set forth in Section
4.6(a). If, despite changes or other matters described in such certificate, the Closing
occurs, Seller’s representations and warranties set forth in this Agreement shall be deemed
to have been modified by all statements made in such certificate;

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(f) Deliver to Purchaser and the Title Company such evidence as the Title Company may
reasonably require as to the authority of the person or persons executing documents on
behalf of Seller;

(g) Deliver to Purchaser an affidavit duly executed by Seller stating (i) that Seller is not
a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of
1980 and the 1984 Tax Reform Act in the form attached as Exhibit E attached hereto,
and (ii) satisfying the requirements of California Form 590 under California law disclosure
requirements, in the form attached hereto as Exhibit F and made a part hereof;

(h) If not already delivered to Purchaser, deliver to Purchaser, originals of the Leases,
the Service Contracts and the licenses and permits, if any, in the possession of Seller or
Seller’s agents, together with such leasing and property files and records which are
material in connection with the continued operation, leasing and maintenance of the Property
and any keys to security deposit boxes. For a period of seven (7) years after Closing in
case of Seller’s need in response to any legal requirement, a tax audit, tax return
preparation or litigation threatened or brought against Seller, Purchaser shall maintain the
books and records for the Property at Purchaser’s expense and allow Seller and its agents or
representatives access, upon reasonable advance notice (which notice shall identify the
nature of the information sought by Seller), at all reasonable times to examine and make
copies of any and all such books and records, which right shall survive the Closing;

(i) Deliver to the Escrow Agent an executed closing statement consistent with this Agreement
and in a customary form;

(j) Deliver two (2) original copies of the Designation Agreement (defined below);

(k) Deliver such additional documents as shall be reasonably required to consummate the
transaction expressly contemplated by this Agreement;

(l) Deliver an assignment and assumption of the Management Agreement in substantially the
form of Exhibit I attached hereto (or such other form as may be mutually
satisfactory to Seller, Purchaser and Manager);

(m) Deliver to Title Company the Owner’s Affidavit and, if required for the Closing, a
so-called “gap indemnity”; and

(n) Deliver written notice executed by Seller notifying all interested parties, including,
without limitation, all tenants under the Leases, that the Property has been conveyed to
Purchaser and directing all payments, inquiries and the like be forwarded to Purchaser at
the address to be provided by Purchaser.

	4.3	 	Purchaser’s Closing Obligations and Deliveries. At Closing, Purchaser shall through
Escrow Agent make the following deliveries and take the following actions:

(a) Pay the Purchase Price, as increased or decreased by prorations and adjustments as
herein provided, to Seller in immediately available wire transferred funds pursuant to

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Section 1.5 above, it being agreed that at Closing the Earnest Money shall be
applied towards payment of the Purchase Price;

(b) Deliver to Seller original executed counterparts of the instruments described in clauses
(c), (d), (i), (j) and (l) of Sections 4.2 above;

(c) Deliver to Seller a certificate, dated as of the Closing Date and executed on behalf of
Purchaser by a duly authorized officer thereof, stating that the representations and
warranties of Purchaser contained in this Agreement are true and correct in all material
respects as of the Closing Date;

(d) Deliver to Seller and Title Company such evidence as Title Company may reasonably
require as to the authority of the person or persons executing documents on behalf of
Purchaser; and

(e) Deliver such additional documents as shall be reasonably required to consummate the
transaction contemplated by this Agreement.

	4.4	 	Prorations, Credits and Other Adjustments. At Closing, Purchaser and Seller shall
prorate all items of income and expense which are customarily prorated between a purchaser and
seller for hotel properties comparable to the Hotel including, without limitation, the
prorations and other adjustments provided below, and the net amount consequently owing to
Seller or Purchaser shall be added to or subtracted from the proceeds of the Purchase Price
payable to Seller at Closing. Beginning as close to the anticipated Closing Date as
practicable, Seller shall, in consultation with Purchaser and with Purchaser’s reasonable
cooperation, cause to be prepared a prorations and credit statement (the “Preliminary
Statement”) which shall reflect all of the prorations, credits and other adjustments to
the Purchase Price at Closing required under this Section 4.4 or under any other
provision of this Agreement. As soon as Purchaser and Seller have
agreed upon the Preliminary Statement, they shall jointly deliver a mutually signed copy
thereof to Escrow Agent.

     4.4.1 Proration of Taxes.

     (a) All real estate ad valorem taxes, general assessments and special
assessments and all personal property ad valorem taxes assessed against the
Hotel (generically, “Taxes”) shall be prorated between Purchaser and Seller as of
the Closing Date in accordance with local custom used in connection with the sale of
commercial property located in San Francisco, California between sophisticated purchasers
and sellers (unless otherwise expressly set forth in this Agreement). 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 in accordance with Section 4.4.13 below and pay any
deficiency in the original proration to the other party promptly upon receipt of the actual
bill for the relevant taxable period. Taxes for all subsequent tax years shall be the
responsibility of Purchaser.

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     (b) Seller retains the right to commence, continue and settle any proceeding to contest
any taxes for any taxable period which encompasses any period prior to the date of the
Closing, and shall be entitled to any refunds or abatements of Taxes awarded in such
proceedings.

     (c) Seller shall retain 100% of the benefit of any enterprise zone tax credit afforded
to Seller or any of its affiliates in connection with Seller’s ownership and/or operation of
the Property prior to Closing and no credit or adjustment to the Purchase Price shall be
made in connection with any such tax credit.

     4.4.2 General Proration of Expenses.

(a) The following items of expense with respect to any portion or aspect of the
Hotel shall be prorated between Seller and Purchaser as of the Closing Date:

(i) All charges and expenses under any Service Contracts.

(ii) All utility charges (but excluding any utility deposits). To the
extent reasonably practicable, though, in lieu of prorating the charges for
any metered utility service, Purchaser and Seller shall endeavor to have the
utility read the meter as early as possible on the Closing Date, render a
final bill to Seller based on such reading and bill all subsequent service
to Purchaser.

(iii) Prepaid expenses of the Hotel, excluding insurance but including
without limitation, (1) amounts incurred to pay for natural gas held in
storage pending use at the Hotel and (2) the expense of all licenses and
permits obtained in connection with the operation of the Hotel.

(iv) All other Hotel operating expenses, other than employment expenses
(which are covered by Section 4.4.3 below).

     4.4.3 Employment Expenses. Seller shall pay to all Hotel Employees (as defined
below), upon their termination of employment by Seller at or prior to Closing, all salaries,
bonuses and employment benefits for unused vacation, holiday, sick leave, and personal days
if, and to the extent, that amounts are accrued and vested prior to the Closing Date, and
Purchaser shall have no obligation to such Hotel Employees with respect to such accrued
salaries and benefits, even if such employees are Retained Employees (defined below).
Purchaser and Seller shall split equally all salaries and related benefits that are payable
to any Hotel Employees for work performed at the Hotel on the Closing Date, whether prior to
or following the time of Closing, regardless of whether such persons are employees of Seller
or Purchaser. Notwithstanding the foregoing, Seller shall bear the relocation costs of the
new general manager.

     4.4.4 Hotel Revenues.

(a) At Closing, Seller and Purchaser shall share equally all revenues from the Hotel
guest rooms and facilities occupied on the evening immediately preceding

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the Closing Date, including any sales taxes, room taxes, occupancy taxes and other taxes charged
to guests in such rooms, all parking charges, sales from mini-bars, in-room food and
beverage, telephone, facsimile and data communications, in-room movie, laundry, and
other service charges allocable to such rooms with respect to the evening
immediately preceding the Closing Date. All revenues from restaurants, lounges,
vending machines and other service operations conducted at the Property shall be
allocated based on whether the same accrued before or after the Cut-Off Time, and
Seller shall cause the Manager to separately record sales occurring before and after
the Cut-Off Time at the Property. The foregoing amounts are referred to
collectively as “Guest Revenues”. Notwithstanding the foregoing, all
revenues from any bars and lounges at the Property shall be prorated based on the
actual closing time for such bar or lounge. For example, if such bar or lounge
closes at 2 a.m. on the Closing Date, Seller shall retain the revenues from such
services and operations even though such revenues were generated two (2) hours after
the Cut-Off Time.

(b) 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,
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. The foregoing amounts are referred to
collectively as “Conference Revenues.”

(c) [Intentionally omitted.]

(d) Any operating revenues not otherwise provided for in this Section 4.4,
shall be prorated between Purchaser and Seller as of Closing.

     4.4.5 Rent. Rent and other payments payable by tenants, licensees,
concessionaires, and other persons using or occupying the Real Property or any part thereof
under a Lease or otherwise, if any, for or in connection with such use or occupancy,
including, without limitation, fixed monthly rentals, additional rentals, percentage
rentals, escalation rentals, retroactive rentals, operating cost pass-throughs, common area
maintenance charges, HVAC charges, payments of taxes and insurance expenses,
promotional/marketing charges, construction receivables and other sums and charges payable
by the tenants under the Leases (collectively, “Rent”) shall be prorated as of the
Closing such that Seller will be entitled to Rent attributable to periods prior to the
Closing and Purchaser will be entitled to Rent attributable to periods from and after the
Closing, all as more particularly set forth below:

(a) All Rent collected by Seller under the Leases prior to Closing (“Current
Rent”) shall be prorated as of the Closing Date.

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(b) All Rent other than Current Rent (“Rent Arrears”) shall not be prorated
at Closing. In the event that either Purchaser or Seller receives Rent from a
tenant after the Closing Date, such Rent shall be applied in the following order of
priority (after deduction of actual out-of-pocket costs of collection paid by
Purchaser to third parties): (a) first to current rent due to Purchaser, (b) second
to delinquent rent due to Purchaser, and (c) thereafter to Rent Arrears due to
Seller from such tenant. Any sums owed to Seller pursuant to the foregoing shall be
paid by Purchaser within thirty (30) days following receipt by Purchaser. Purchaser
shall pursue all Rent Arrears in the ordinary course of business and shall have the
right to negotiate settlements with tenants who have Rent Arrears as it may
determine in good faith; provided that, at its sole cost and expense (x) Seller
shall have the unrestricted right to pursue collection from any tenant not in
possession of its space as of the Closing Date in Seller’s sole discretion
including, without limitation, initiating and prosecuting a lawsuit against the
applicable tenant, and (y) in the event that after Closing Purchaser evicts or
otherwise terminates the possession of any tenant with Rent Arrears, if Purchaser
has neither released the tenant nor pursued eviction to judgment, Seller shall have
the unrestricted right to pursue collection from such tenant in Seller’s sole
discretion including, without limitation, initiating and prosecuting a lawsuit
against the applicable tenant. Should Seller take the action permitted in either
item (x) or (y), Purchaser shall be relieved of and shall have no obligation to pursue the applicable
Rent Arrears.

(c) Percentage rent or overage rent (referred to herein as “Percentage
Rent”) collected under the Leases prior to the Closing shall be prorated between
Purchaser and Seller at Closing based on Percentage Rents which were due and payable
for the periods prior to and after the Closing Date. As soon as reasonably possible
after the end of the year in which the Closing occurs, the Percentage Rent shall be
re-prorated on a Lease by Lease basis with Seller entitled to the portion of total
Percentage Rent due under each Lease for the Lease Year (as defined below) in which
the Closing occurs (the “Subject Lease Year”) based on the portion of the
Subject Lease Year occurring prior to the Closing Date and Purchaser entitled to the
portion of total Percentage Rent due under each Lease for the Subject Lease Year
based on the portion of the Subject Lease Year occurring from and after the Closing
Date; provided, however, there shall be no proration of any delinquent rent
Percentage Rent until such Percentage Rent is collected and all such collections
shall be paid to Seller and Purchaser in the order for payment of delinquent Rent
set forth in Section 4.5(b) above. As used herein, the term “Lease
Year” means the twelve (12) month period (or, as to tenants for which the
Closing occurs during a partial Lease Year, such applicable shorter period) as to
which annual Percentage Rent is owed under each Lease.

     4.4.6 Hotel Payables. At Closing, Purchaser shall receive a proration credit
equal to the excess of (a) the aggregate estimated amount of all outstanding accounts
payable for the Hotel as of the Closing Date (“Hotel Payables”) in the Preliminary
Statement over (b) Purchaser’s prorated share of such Hotel Payables under Section
4.4.2, and Purchaser shall assume the obligation to satisfy all Hotel Payables. After

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Closing, before paying any amount invoiced or otherwise claimed by a third party due with
respect to the Hotel operations prior to Closing which is not included on such schedule (or
is claimed in an amount larger than that shown on such schedule), Purchaser shall first
submit such invoice or claim to Seller. Unless Seller, within ten (10) days after receiving
such submission, objects to such invoice or claim (thereby making it a “Seller Disputed
Payable”), Purchaser may pay the same and take a credit for such payment on the Final
Statement. Notwithstanding the foregoing, upon Closing Purchaser shall assume all
obligations of Seller to pay for any (i) consumables or other items ordered by or for the
benefit of Seller in the ordinary course of business but which are not yet received as of
the Closing Date, and (ii) items or services listed on a purchase order log prepared by
Manager, which list shall be updated by Manager immediately prior to Closing; provided that,
there shall not be any adjustment to the Purchase Price in connection with Purchaser’s
assumption of the liabilities described in clauses (i) and (ii) of this sentence.

     4.4.7 Credit for Certain Inventories. As of the date immediately prior to the
Closing Date, Seller and Purchaser shall jointly conduct or cause the Manager to conduct an
inventory of all (a) Unopened Inventory, and (b) all Retail Inventory in the Hotel gift
shop, spa, fitness center or any other area at the Hotel conducting retail sales
(excluding areas operated by third parties under a Lease), and shall deliver a written
report thereon to Seller and Purchaser. Such report shall reflect the cost of the Unopened
Inventory and the Retail Inventory at the acquisition cost thereof. Seller shall receive a
credit at Closing in an amount equal to the total cost of the Unopened Inventory
attributable to beer, wine and other alcoholic beverages, as reflected in such report, but
the remainder of the Unopened Inventory and Retail Inventory shall not result in any
adjustment to the Purchase Price at Closing.

     4.4.8 Credit for Reservation Deposits. Purchaser shall receive a proration
credit equal to the aggregate amount of advance deposits that shall have been received by
Seller prior to the Cut-Off Time on account of reservations for use or occupancy of the
Property after the Cut-Off Time.

     4.4.9 Credit for Cash Banks. Seller shall receive a credit at Closing in an
amount equal to all House Bank Funds.

     4.4.10 Regarding Hotel Prorations Generally. Unless this Section 4.4
expressly provides otherwise: (A) all prorations hereunder with respect to the Hotel
shall be made as of 12:00:01 a.m., local time at the Hotel (“Cut-Off Time”) on the
Closing Date, (B) all prorations shall be made on an actual daily basis, and (C) for
purposes of such prorations, all items of revenue and expense with respect to the Hotel’s
operations shall be classified and determined in accordance with the Uniform System of
Accounts for the Lodging Industry, as reasonably modified by Manager for use at the Hotel
consistent with past practices and otherwise in accordance with generally accepted
accounting principles. Except as otherwise expressly provided herein, in any case in which
Purchaser receives a credit at Closing on account of any obligation of Seller hereunder,
Seller shall have no further liability for such obligation to the extent of the credit so
given, and Purchaser shall pay and discharge the same.

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     4.4.11 Vouchers. Purchaser shall (a) honor all outstanding unexpired gift
certificates, coupons or other writings issued by Seller set forth in Schedule
4.4.11 attached hereto and incorporated herein by this reference that entitles the
holder or bearer thereof to a credit (whether in a specified dollar amount as for a
specified item, such as room night or meals) to be applied against the usual charge for
rooms, meals and/or goods and services at the Hotel (collectively, “Vouchers”) and
shall assume all liability, if any, for all outstanding Vouchers as of the Closing Date
regardless of any purported expiration, (b) receive a credit against the Purchase Price
payable at Closing as set forth in Schedule 4.4.11 attached hereto and incorporated
herein by this reference, as updated as of the Closing Date, but Purchaser shall not receive
a credit for any complimentary or discounted room nights or Hotel or spa goods or services
to the extent issued by either the sale office or the executive office, and (c) 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.

     4.4.12 Utility and Other Deposits.

          (a) At Closing, Seller shall receive a credit for all refundable cash or other deposits
posted with utility companies serving the Property or any governmental agencies or
authorities or posted pursuant to any Service Contract and Seller shall assign to Purchaser
all right, title and interest in and to such refundable cash or other deposits, or, at
Seller’s option, Seller shall be entitled to receive and retain such refundable cash and
deposits.

          (b) Purchaser shall be entitled to a credit for all unapplied and refundable security
and other deposits retained by Seller as of the Closing Date with respect to any Leases at
the Hotel.

     4.4.13 Final Statement; Post-Closing Adjustments. Except for (a) prorations for
real estate taxes and other assessments, which shall be adjusted within fifteen (15)
business days of receipt of the tax bill for the tax year in which the Closing occurs, and
(b) Percentage Rent, which shall be adjusted as provided in Section 4.4.5(c) above,
Seller shall make a one-time post-Closing adjustment of any item of income and expense
subject to adjustment as provided above which was either incomplete or incorrect (whether as
a result of an error in calculation or a lack of complete and accurate information) as of
the Closing. Purchaser will prepare and deliver to Seller for its review and approval a
statement of prorations (the “Final Statement”) within sixty (60) days following the
Closing Date, and the party in whose favor the original incorrect adjustment or error was
made (“Adjusting Party”) shall pay to the other party (“Requesting Party”)
the sum necessary to correct such prior incorrect adjustment or error within ten (10) days
after completion of the Final Statement. Notwithstanding any provision of this Agreement to
the contrary, all items required to be adjusted pursuant to this Section 4.4 shall
be adjusted within seventy-five (75) days of Closing (except real estate taxes, which shall
be re-adjusted within the period set forth above), and such adjustment shall be final and no
further adjustment to the prorations or the Purchase Price shall be made.

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     4.4.14 Resolution of Disputes. In the case of a dispute, the parties shall
attempt to resolve such dispute, but if for any reason such dispute is not resolved by the
date that is thirty (30) days after the delivery of the original notice of the claimed
adjustment by Purchaser or Seller, but not to exceed seventy-five (75) days after Closing,
then the parties shall submit such dispute to PricewaterhouseCoopers, LLC (“Outside
Accountants”), and the determination of the Outside Accountants, which shall be made
within a period of fifteen (15) days after such submittal by the parties, shall be
conclusive. The fees and expenses of the Outside Accountants shall be paid equally by
Purchaser and Seller. At such time as the amount of any adjustment or dispute shall be
determined (either by agreement or by determination of the Outside Accountants), any amount
that shall be payable by the Requesting Party to the Adjusting Party as a result of such
adjustment or determination shall be paid within ten (10) business days after the date on
which such agreement or determination shall have been made.

     4.4.15 Seller Tax Appeal. Purchaser acknowledges that Seller has a pending
appeal of the real property tax assessment for tax years related to the period of Seller’s
ownership of the Real Property, and that Seller may take related action which Seller deems
appropriate in connection therewith. Purchaser shall cooperate with Seller in connection
with such appeal (at Seller’s expense if requested by Seller) and collection of a refund of
real property taxes paid. Seller owns and holds (and shall retain following the Closing)
all right, title and interest in and to such appeal and refund, and all amounts payable in
connection therewith shall be paid directly to Seller by the applicable authorities. If
such refund or any part thereof is received by Purchaser, Purchaser shall promptly pay such
amount to Seller. Any refund received by Seller (or Purchaser in connection with any appeal
initiated by Seller) shall be distributed as follows (subject, however, to any conflicting
provisions of any Lease): first, to reimburse Seller for all costs incurred in connection
with the appeal; second, to Purchaser to the extent such refund is attributable to taxes for
which Seller received a proration credit at Closing pursuant to Section 4.4.1 above;
third, with respect to refunds payable to tenants of the Real Property pursuant to the
Leases, to such tenants in accordance with the terms of such Leases; fourth, to Seller to
the extent such appeal covers the period prior to the Closing Date; and lastly to Purchaser
to the extent such appeal covers the period as of the Closing Date and thereafter.
Purchaser shall have the right to direct any appeal of the real property tax assessment, if
any, for the tax years occurring after the Closing Date.

     4.4.16 Survival. The provisions of this Section 4.4 shall survive
Closing.

	4.5	 	Closing Costs. Seller shall pay (a) the fees of any counsel representing it in
connection with this transaction, (b) 50% of the documentary transfer tax or conveyance tax
payable by reason of the transfer of the Real Property, (c) the $5,000 premium charged by
Title Company to remove the $54,727,454 liability cap in the Encroachment Endorsement, and (d)
50% of any escrow fees charged by the Escrow Agent. Purchaser shall pay (i) the fees of any
counsel representing Purchaser in connection with this transaction, (ii) 50% of the
documentary transfer tax or conveyance tax payable by reason of the transfer of the Real
Property, (iii) 100% of the (A) premium for the Title Policy, (B) cost of any endorsements to
the Title Policy (except for the amount described in (c) above, and (C) the cost of any title
insurance provided to Purchaser’s lender, (iv) the cost of any

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	 	 	modifications or updates to the Survey, (v) 50% of any escrow fees charged by the Escrow Agent, (vi) the cost of the property
condition report prepared by Marx Okubo Associates Inc. dated April 21, 2010, (vii) all sales
tax on the sale of the Personal Property (or any part thereof) and any taxes other than those
required to be paid by Seller as set forth above, and (viii) the fees for recording the Deed
and any other recordable documents. All other costs and expenses incident to this transaction
and the closing thereof shall be paid in a manner consistent with custom for similar
transactions in San Francisco, California. Notwithstanding the foregoing, in the event that
this Agreement is terminated as a result of a party’s default, such defaulting party shall pay
all escrow and title cancellation fees charged in connection with such cancellation.
	 
	4.6	 	Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to
consummate the transaction hereunder shall be subject to the fulfillment on or before the
Closing Date of all of the following conditions, any or all of which may be waived by
Purchaser in its sole discretion:

(a) All of the representations and warranties of Seller contained in this Agreement shall be
true and correct in all material respects as of the Closing Date (with appropriate
modifications permitted under this Agreement or not materially adverse to Purchaser).

(b) Seller shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Seller as of the Closing Date.

(c) Seller shall have delivered to Purchaser executed tenant estoppel certificates (each a
“Tenant Estoppel” and collectively, the “Tenant Estoppels”) from Starbucks
Corporation (“Starbucks”) and from Uomo European Menswear (“Uomo”). The
Tenant Estoppel for (i) Starbucks shall be on Starbucks’ standard form or on such other form
as is acceptable to Starbucks and shall (A) certify that its Lease is unmodified and in full
force and effect (or, if modified, sating the nature of such modification and certifying
that such Lease as modified is in full force and effect); (B) state the date to which base
rent and other charges have been paid and the amount of any security deposit held by
landlord, if any; and (C) acknowledge that there are not, to the actual knowledge of the
person executing the certificate, any uncured defaults on the part of landlord, or
specifying such defaults, if any, which are claimed, and (ii) Uomo shall be substantially in
the form of Exhibit K attached hereto. Purchaser may request that additional
matters be addressed by Starbucks or Uomo but any Tenant Estoppel addressing the matters
described in clauses (i)(A) – (C) and in the form of Exhibit K, respectively, shall
satisfy the condition set forth in this Section 4.6(c).

(d) Title Company shall be irrevocably committed to issue the Title Policy as required in
Section 2.5.

(e) The Closing of the Liquor Escrow or the execution and delivery of the Interim Beverage
Agreement (defined below).

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	4.7	 	Conditions Precedent to Obligation of Seller. The obligation of Seller to consummate
the transaction hereunder shall be subject to the fulfillment on or before the of Closing Date
of all of the following conditions, any or all of which may be waived by Seller in writing in
its sole discretion:

(a) All of the representations and warranties of Purchaser contained in this Agreement shall
be true and correct in all material respects as of the Closing Date.

(b) Purchaser shall have performed and observed, in all material respects, all covenants and
agreements of this Agreement to be performed and observed by Purchaser as of the Closing
Date.

	4.8	 	Failure or Waiver of Conditions Precedent. In the event any of the conditions set
forth in Sections 4.6 or 4.7 are not fulfilled or waived on or before the
Outside Closing Date, the party benefited by such conditions may, by written notice to the
other party, terminate this Agreement, whereupon all rights and obligations hereunder of each
party shall be at an end except those that expressly survive any termination. Either party
benefited by a condition set forth in Sections 4.6 and 4.7 above may, at its
election, at any time or times on or before the date specified for the satisfaction of the
condition, waive in writing the benefit of such condition. Purchaser’s consent to the Closing
pursuant to this Agreement shall waive any remaining unfulfilled conditions, and any liability
on the part of Seller for breaches of representations and warranties of which Purchaser had
knowledge as of the Closing. If Purchaser terminates this Agreement due to the failure of any
condition set forth in Section 4.6 not being satisfied, then the Earnest Money shall
be refunded to Purchaser less Purchaser’s share of any escrow charges.
	 
	4.9	 	Alcoholic Beverage License.

(a) Purchaser acknowledges that Oxford Union Square Beverage Company LLC, a Delaware limited
liability company and affiliate of Seller (“BevCo”), and Club Minibar Inc., a
California corporation (“Club Minibar”), are the current licensees under the
existing alcoholic beverage license(s) for the Hotel (collectively, the “Existing Liquor
License”). The Existing Liquor License and the alcoholic beverages on hand at the
Hotel, whether issued to the food and beverage departments or held in reserve storage (but
excluding the minibar inventory)(“Alcoholic Beverages”), shall be transferred
pursuant to a separate escrow (“Liquor Escrow”) between Seller, BevCo, Club Minibar
and Purchaser and the parties shall execute customary escrow instructions in connection
therewith and consistent with the terms of this Agreement.

(b) The Existing Liquor License shall be included in the Purchase Price, but a value of
Twenty Thousand Dollars ($20,000) (“Liquor License Purchase Price”) shall be
separately allocated to it for the purposes of the Liquor Escrow. The cost of the Alcoholic
Beverages is not included in the Purchase Price. A value shall be separately allocated to
it for the purposes of the Liquor Escrow at Closing and, collectively with the Liquor
License Purchase Price, shall constitute the “Liquor Purchase Price”.

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(c) The Liquor Escrow shall be established at Heritage Bank of Commerce (the “Liquor
Escrow Holder”), attention: Chloe Flowers, unless the parties mutually agree otherwise.
The parties acknowledge that the terms and conditions of the Liquor Escrow shall be
conducted under Sections 24049 and 24070-24082 of the California Business & Professions Code
(“B & P Code”), and the Liquor Escrow Holder shall be authorized and instructed to
publish and record all required notices, handle creditor claims, and to obtain tax releases
in accordance therewith. Liquor Escrow Holder shall further be directed to
handle funds in the Liquor Escrow in accordance with Section 24049 and 24070-24082 of the B
& P Code. The Liquor Escrow shall close and the Liquor License Purchase Price shall be paid
over and released to Seller, without further claim by Purchaser, on the date that the
California Department of Alcoholic Beverage Control (“ABC”) approves the transfer of
the Liquor License to Purchaser. The Closing of the Liquor Escrow is not a condition to
Closing.

(d) Purchaser shall use commercially reasonable efforts to file all necessary applications
and supporting materials with the ABC as may be required to obtain a permanent or temporary
liquor license for the Hotel as soon as possible, but in any event such filing shall occur
on or before June 14, 2010, and following filing shall diligently pursue the issuance of
such liquor license. Seller agrees to (and shall request BevCo and Club Minibar to)
promptly execute and deposit into the Liquor Escrow all other documents and instruments
(including, but not limited to, liquor license applications and transfer agreements) that
may be required by the Liquor Escrow Holder and/or the ABC.

(e) Seller agrees to cause to be prepared a certified schedule of the inventory of Alcoholic
Beverages on hand at the Hotel as of 11:59 p.m. of the day before the Closing Date. Such
schedule shall list all items of Alcoholic Beverages and shall set forth the amount of each
item on hand and the net cost paid by Seller for each item. If the net cost for any item
cannot be established, then the current replacement cost for such item shall be used based
upon the price lists from the Hotel’s suppliers then in effect. The total cost of the
Alcoholic Beverages as established above shall be the portion of the Purchase Price
allocated to the Alcoholic Beverages.

(f) On the Closing Date, the Escrow Agent shall transfer the Liquor Purchase Price to the
Liquor Escrow Holder for deposit into the Liquor Escrow and the Liquor Escrow shall close on
the terms and conditions set forth in the separate Liquor Escrow instructions executed by
Seller and Purchaser. Purchaser shall pay any sales tax attributable to the sale of the
Liquor License and Alcoholic Beverages or any other personal property transferred through
the Liquor Escrow. Liquor Escrow fees charged by Liquor Escrow Holder shall be paid equally
by Seller and Purchaser. Purchaser shall pay all fees and costs payable to the ABC in
connection with transferring the Liquor License and all license and transfer fees, costs of
recordation and publication.

(g) If Purchaser is unable prior to Closing to obtain a temporary liquor license permitting
Purchaser or Manager to continue to sell Alcoholic Beverages at the Hotel, then BevCo and
Club Minibar shall execute and deliver to Purchaser, subject to the indemnification below,
an interim management agreement (the “Interim Beverage Agreement”) in substantially
the form attached as Exhibit J hereto, and shall keep open the bars and

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lounges and liquor facilities of the Hotel between the Closing Date and the time when such existing
alcoholic beverage license transfers or the issuance of new licenses actually become
effective, in the manner in which such bars, lounges and liquor facilities were operated
prior to Closing, by such license holders exercising management and supervision of such
facilities under the Existing Liquor License until such time of transfer
or issuance; provided, however, that Purchaser at Closing shall indemnify and hold Seller,
BevCo and Club Minibar harmless from any liability, damages or claims encountered in
connection with such operations during said period of time and all costs and expenses
(including reasonable attorneys’ fees) arising therefrom. Seller’s obligation under this
Section 4.9(g) to enter into the Interim Beverage Agreement shall be conditioned
upon none of Seller, BevCo or Club Minibar being obligated to assume (except to the extent
provided in the preceding sentence) any liability with respect to any Liquor License or the
serving of alcoholic beverages following Closing unless each of them is satisfied as to the
scope of its or their potential liability and such liability is indemnified and insured
against by Purchaser in an amount, form and from a third party carrier, all reasonably
satisfactory to each of Seller, BevCo and Club Minibar. In no event shall Seller, BevCo nor
Club Minibar be obligated to assume any liability for activities of Purchaser that would
expose any of them to criminal liability.

	4.10	 	Designation Agreement. On or before the Closing Date, Seller and Purchaser shall
each execute an original counterpart of a Designation Agreement, substantially in the form of
Exhibit G attached hereto, which Designation Agreement names the Title Company as the
“Reporting Person” under Section 6045(e) of the Internal Revenue Code (the
“Designation Agreement”).
	 
	4.11	 	Disbursements and Other Actions by Escrow Agent. Upon the Closing, Escrow Agent
shall promptly undertake all of the following, same to be deemed to have been completed
simultaneously:

(a) Cause the Grant Deed and any other documents which the parties hereto may mutually
direct to be recorded in the Official Records of San Francisco County, California in the
order directed by the parties;

(b) Disburse to Seller from funds deposited by Purchaser with Escrow Agent towards payment
of all items (including, without limitation, the Purchase Price) chargeable to the account
of Purchaser;

(c) Deliver to Seller a fully executed original of the instruments described in clauses (c),
(d), (j), (k) and (l) of Section 4.2 above and clauses (c), (d) and (e) of
Section 4.3 above and a conformed copy of the Grant Deed;

(d) Deliver to Purchaser a fully executed original of the instruments described in clauses
(b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), and (n) of Section 4.2 above
and a conformed copy of the Grant Deed;

(e) Direct the Title Company to issue the Title Policy to Purchaser; and

(f) File the Designation Agreement.

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ARTICLE V

REPRESENTATIONS, WARRANTIES AND COVENANTS

	5.1	 	Representations and Warranties of Seller. Seller hereby makes the following
representations and warranties to Purchaser as of the Effective Date, subject to the
qualifications and exceptions set forth below:

(a) Organization and Authority. Seller has been duly organized and is validly
existing and in good standing under the laws of Delaware. Seller has the full right and
authority to enter into this Agreement and to transfer all of the Property to be conveyed by
Seller pursuant hereto and to consummate or cause to be consummated the transactions
contemplated herein to be made by Seller. The person signing this Agreement on behalf of
Seller is authorized to do so.

(b) No Breach. The execution, delivery and performance of this Agreement by Seller
and the consummation of the transaction contemplated herein will not: (i) result in a breach
or acceleration of or constitute a default or event of termination under the provisions of
any agreement or instrument by which the Property is bound or affected which would have a
material adverse impact on the ownership and operation of the Property by Purchaser; (ii)
result in the creation or imposition of any lien, charge or encumbrance, against the
Property or any portion thereof; or (iii) constitute or result in the violation or breach by
Seller of any judgment, order, writ, injunction or decree issued against or imposed upon
Seller or result in the violation of any applicable law, rule or regulation of any
governmental authority which, with respect to any of the foregoing, would have a material
adverse impact on the ownership or operation of the Property by Purchaser.

(c) Litigation/Condemnation. Except as set forth on Schedule 5.1(c)
attached hereto, Seller has not received written notice of any litigation which has been
filed against Seller that arises out of the ownership of the Property and would materially
and adversely affect the Property or use thereof, or Seller’s ability to perform its
obligations hereunder, nor has Seller received written notice of any condemnation
proceedings. To Seller’s knowledge, there is no threatened litigation that arises out of
the ownership of the Property and would materially and adversely affect the Property or use
thereof, or Seller’s ability to perform its obligations hereunder. Seller hereby agrees to
indemnify against, defend, protect and hold Purchaser harmless from and against any claim
for liabilities, losses, costs, expenses (including reasonable attorneys’ fees actually
incurred), damages or injuries arising out of or resulting from or in connection with any
litigation filed against Seller and relating to the ownership of the Property on or before
the Effective Date; provided that, such indemnity (i) is limited to claims covered by
Seller’s insurance, and (ii) does not extend to any claim arising from ownership or
operation of the Property after the Closing.

(d) Leases. To Seller’s knowledge, (i) the list of Leases attached hereto as
Schedule 1.1(h) is accurate and lists all Leases currently affecting the Hotel, and
Seller has delivered (or otherwise made available to Purchaser) a true and correct copy of
such

25

 

	 	 	Leases and no uncured notice of default has been delivered by Seller or received by Seller
with respect to any Leases and (ii) there are no oral or other agreements between Seller and
any tenant of the Property that has not been reduced to a writing and which is not set forth
among the Leases. To Seller’s knowledge, there are no outstanding defenses, counterclaims
or offsets against the payment of rent or any other amount payable or against the
performance of any other obligation under any of the Leases. Any and all brokerage, leasing
and other commissions and tenant improvement credits or contributions due under any such
Leases have been fully performed in all material respects and all amounts due from Seller as
of the Closing Date have been (or will be) paid in full by the Closing Date.

		 	(e) No Violations. Except as set forth on Schedule 5.1(e) attached hereto,
to Seller’s knowledge, Seller has not received prior to the Effective Date any written
notification from any governmental or public authority that the Property is in violation of
any applicable fire, health, building, use, occupancy or zoning laws or other statute,
ordinance, law or code (including without limitation Environmental Laws and the Americans
with Disabilities Act, as amended) bearing on the construction, operation or use of the
Property or any part thereof where such violation remains outstanding and, if unaddressed,
would have a material adverse effect on the use of the Property as currently owned and
operated.

		 	(f) Service Contracts and Equipment Leases. To Seller’s knowledge, there are no
Service Contracts or Equipment Leases which will affect the Property after the Closing Date
except as set forth on the Schedule 1.1(e)-1 and Schedule 1.1(e)-2,
respectively, and no Service Contracts or Equipment Leases have been amended except as set
forth in said Schedules. To Seller’s knowledge, no uncured written notice of material
default has been delivered by Seller or received by Seller with respect to any Service
Contracts or Equipment Leases. To Seller’s Knowledge, the copies of Service Contracts and
Equipment Leases delivered or made available to Purchaser by Seller are true and complete.

		 	(g) Personal Property. To Seller’s knowledge, Seller owns the Personal Property,
other than any leased Personal Property under the Equipment Leases, free of all liens and
encumbrances.

		 	(h) No Consents. No consent, approval or action of, filing with or notice to any
governmental or regulatory authority or any other person or entity on the part of Seller is
required in connection with the execution, delivery and performance of Agreement or the
consummation of the transactions contemplated except those that have already been obtained.

		 	(i) Patriot Act Compliance. Neither Seller nor any individual or entity having an
interest in Seller is a person or entity either (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

26

 

	 	 	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.

		 	(j) Management Agreement. The Management Agreement is the entire agreement between
Seller and Manager regarding the operation and management of the Hotel by Manager. Seller
has delivered (or otherwise made available to Purchaser) a true, correct and complete copy
of the Management Agreement and no uncured notice of default has been delivered by Seller or
received by Seller from Manager.

		 	(k) Sale of Assets. The sale of the Hotel pursuant to this Agreement is the sale of
all or substantially all Seller’s assets and is not one in a series of three or more sales
of assets by Seller within a twelve (12) month period.

	 	 	     Notwithstanding the foregoing, if Purchaser has knowledge of a breach of any
representation or warranty made by Seller in this Agreement prior to Closing and Purchaser
nevertheless proceeds to close the purchase of the Property, such representation or warranty
by Seller shall be deemed to be qualified or modified to reflect Purchaser’s knowledge of
such breach and Seller shall have no liability whatsoever respecting the same.

	5.2	 	Knowledge Defined. For purposes of this Agreement, “knowledge” means (a)
with respect to Seller, the actual knowledge of Robert D. Kline, who is President of Chartres
Lodging Group, LLC and Maxine Taylor, who is the asset manager for Seller (provided that, in
no event shall such persons have any personal liability arising under this Agreement), without
any duty of inquiry or investigation, and expressly excluding the knowledge of any other
shareholder, partner, member, trustee, beneficiary, director, officer, manager, employee,
agent or representative of Seller or any of its affiliates, and (b) with respect to Purchaser,
(i) the actual knowledge of Thomas C. Fisher and Cody Bradshaw, Chief Investment Officer and
Vice President of Acquisitions, respectively, of Purchaser (provided that, in no event shall
such person have any personal liability arising under this Agreement), (ii) any matter
disclosed in any exhibits or schedules to this Agreement, (iii) any matter disclosed in any of
the Seller Due Diligence Materials or any other documents or materials provided or made
available by Seller or its agents to Purchaser prior to Closing, (iv) any matter disclosed by
Purchaser’s inspections or investigations of the Property , and (v) any matter disclosed by a
Tenant Estoppel.

	5.3	 	Survival of Seller’s Representations and Warranties. The representations and
warranties of Seller set forth in Section 5.1 as updated by the certificate of Seller
to be delivered to Purchaser at Closing in accordance with Section 4.2(e) hereof,
shall survive Closing for a period of one hundred eighty (180) days. No claim for a breach of
any representation, warranty or covenant of Seller shall be actionable or payable unless each
of the following conditions is satisfied: (a) the breach in question results from or is based
on a condition, state of facts or other matter which was not known to Purchaser prior to
Closing, (b) the

27

 

	 	 	valid claims for all such breaches, if any, collectively aggregate more than One Hundred
Thousand and No/100 Dollars ($100,000), in which event the amount in excess of such amount
of such claims shall be actionable, and (c) written notice containing a description of the
specific nature of such breach shall have been given by Purchaser to Seller prior to the
expiration of said one hundred eighty (180) day period and an action shall have been
commenced by Purchaser against Seller within sixty (60) days after the termination of the
survival period provided for above in this Section 5.3. To the extent applicable,
Purchaser agrees to first seek recovery under any insurance policies, the Title Policy and
the Service Contracts prior to seeking recovery from Seller, and Seller shall not be liable
to Purchaser if Purchaser’s claim is satisfied from such insurance policies, Title Policy or
Service Contracts. As used herein, the term “Cap” shall mean the total aggregate
amount of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000).
Notwithstanding any provision of this Agreement to the contrary, in no event shall (i)
Seller’s aggregate liability to Purchaser for breach of any representation, warranty or
covenant of Seller in this Agreement or the certificate to be delivered by Seller at Closing
pursuant to Section 4.2(e) hereof, taken in the aggregate with any other claims by
Purchaser against Seller (including any indemnification obligations), exceed the amount of
the Cap, or (ii) Seller be liable for any consequential damages of Purchaser or any punitive
damages.

	5.4	 	Covenants of Seller. Notwithstanding any other provisions of this Agreement to the
contrary, Purchaser acknowledges and agrees that, pursuant to the Management Agreement,
Manager is vested with decision making authority over the Hotel and therefore Seller’s ability
to control the management and operation of the Hotel is circumscribed by and must be exercised
in accordance with its rights as “Owner” under the Management Agreement; provided, however,
Seller shall enforce its rights under the Management Agreement to the extent such enforcement
would effectuate Manager complying with the covenants contained in this Agreement. Subject to
the foregoing, Seller hereby covenants with Purchaser as follows:

		 	(a) From the Effective Date hereof until the Closing or earlier termination of this
Agreement, Seller shall use reasonable efforts to cause Manager to operate and maintain the
Hotel in a manner generally consistent with the manner in which Seller has operated and
maintained the Hotel prior to the date hereof, in good condition consistent with past
practice, reasonable wear and tear excepted and so as to maintain levels of Retail Inventory
and Consumable Inventory consistent with past practice.

		 	(b) From the Effective Date hereof until Closing or the earlier termination of this
Agreement, Seller shall use commercially reasonable efforts to perform its material
obligations under the Management Agreement, the Service Contracts and other agreements that
may affect the Property.

		 	(c) Seller shall not enter into any new management agreement or Service Contracts or other
agreements or encumbrances with respect to the Property, nor shall Seller enter into any
agreements modifying the Service Contracts, Permitted Exceptions or Leases unless (i) any
such agreement or modification will not bind Purchaser or the Property after the Closing
Date or is subject to termination on not more than thirty (30) days’ notice

28

 

	 	 	without penalty, or (ii) Seller has obtained Purchaser’s prior written consent to such
agreement or modification, same to be granted or denied in Purchaser’s sole discretion.
Seller agrees to cancel and terminate effective as of the Closing Date any Service Contracts
requested in writing by Purchaser to the extent permissible under the terms of such Service
Contracts, provided any fee or penalty for such cancellation shall be paid for by Purchaser.

		 	(d) From the Effective Date until the Closing or earlier termination of this Agreement,
Seller shall conduct the business of the Hotel in the ordinary course, and will not: (i)
transfer or convey the Property or any interest in Seller, or enter into any agreement to do
so; (ii) create or agree to any easements, liens, mortgages, encumbrances or other interests
that would affect the Property or Seller’s ability to comply with this Agreement; (iii) fail
to maintain and repair the Property in a manner consistent with the maintenance standards of
Seller prior to the Effective Date; (iv) change Seller’s existing policies of public
liability and hazard and extended coverage insurance insuring the Property; (v) fail to
comply promptly with any notices of violation of laws or municipal ordinances, regulations,
orders or requirements of departments of housing, building, fire, labor, health, or other
state, city or municipal departments or other governmental authorities having jurisdiction
against or affecting the Property or the use or operation thereof, without the prior written
consent of Purchaser, which consent may be granted or denied in Purchaser’s sole discretion;
and/or (vi) terminate any condemnation awards proceedings, insurance settlement negotiations
or proceedings, zoning changes, public roadway and/or traffic realignment negotiations with
public authorities or the like, and/or storm water management agreements, and the like
benefiting the Property.

		 	(e) Seller shall promptly deliver to Purchaser copies of any written communications
(including e-mails, letters, invoices and the like) sent by Seller to, or received by Seller
from, any tenants of the Property or service or materials providers to the Property sent or
received from and after the Effective Date up through the Closing.

		 	(f) Seller shall, within five (5) business days after the Effective Date, apply to the
California State Board of Equalization for a “tax clearance” letter showing that all sales
and other taxes with respect to the Hotel to be paid by Seller to the State of California
have been paid or that none are owing and Seller shall thereafter diligently pursue
obtaining the same and Seller shall deliver the same to Purchaser promptly upon receipt.
Purchaser acknowledges that delivery of a tax clearance letter is not a condition to
Purchaser’s obligation to close the purchase of the Property.

	 	 	Failure of Seller to deliver an executed Tenant Estoppel from Starbucks and Uomo shall not
be deemed a Seller default, but is a condition precedent to Purchaser’s obligations to
consummate this transaction as specified in Section 4.6(c) above.

29

 

	5.5	 	Representations and Warranties of Purchaser. Purchaser hereby represents and
warrants to Seller:

		 	(a) ERISA. Purchaser is not acquiring the Property with the assets of an employee
benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of
1974.

		 	(b) Organization and Authority. Purchaser has been duly organized and is validly
existing and in good standing under the laws of Delaware and is qualified to do business in
California. Purchaser has the full right, power and authority to purchase the Property as
provided in this Agreement and to carry out Purchaser’s obligations hereunder, and all
requisite action necessary to authorize Purchaser to enter into this Agreement and to carry
out its obligations hereunder have been, or by the Closing will have been, taken. The
person signing this Agreement on behalf of Purchaser is authorized to do so, and this
Agreement is enforceable against Purchaser in accordance with its terms, subject to
bankruptcy, insolvency and similar laws.

		 	(c) No Breach. The execution, delivery and performance of this Agreement by
Purchaser and the consummation of the transaction contemplated herein will not: (i) result
in a breach or acceleration of or constitute a default under any agreement or instrument by
which Purchaser is bound or affected which would have a material adverse impact on the
ability of Purchaser to timely close the acquisition of the Property pursuant to the terms
of this Agreement; or (ii) constitute or result in the violation or breach by Purchaser of
any judgment, order, writ, injunction or decree issued against or imposed upon Purchaser or
result in the violation of any applicable law, rule or regulation of any governmental
authority which, with respect to any of the foregoing, would have a material adverse impact
on the ability of Purchaser to timely complete the acquisition of the Property pursuant to
this Agreement.

		 	(d) No Consents. No consent, approval or action of, filing with or notice to any
governmental or regulatory authority or any other person or entity on the part of Purchaser
is required in connection with the execution, delivery and performance of Agreement or the
consummation of the transactions contemplated.

		 	(e) Pending Actions. There is no action, suit, arbitration, unsatisfied order or
judgment, government investigation or proceeding pending against Purchaser which, if
adversely determined, could individually or in the aggregate materially interfere with the
consummation of the transaction contemplated by this Agreement.

		 	(f) Patriot Act Compliance. Neither Purchaser nor any individual or entity having
an interest in Purchaser is a person or entity either (i) is listed on the Specially
Designated Nationals and Blocked Persons List maintained by the OFAC pursuant to the Order
and/or on any 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.

30

 

		 	(g) Tax Identification Number. Purchaser’s valid tax identification number is
27-2615441.

		 	(h) Bankruptcy. No petition in bankruptcy (voluntary or otherwise), assignment for
the benefit of creditors, or petition seeking reorganization or arrangement or other action
under federal or state bankruptcy laws is pending against or contemplated by Purchaser or
its general partner(s) or controlling shareholders or members.

	5.6	 	Survival of Purchaser’s Representations and Warranties. The representations and
warranties of Purchaser set forth in Sections 5.5(a) and (f) shall survive
Closing and shall be a continuing representation and warranty without limitation. All other
representations and warranties of Purchaser shall survive Closing for a period of one hundred
eighty (180) days.

	5.7	 	Covenants of Purchaser.

		 	(a) Purchaser may at its election (but subject to the limitations of Section 3.1
above), inspect the Property for the presence of Hazardous Substances (as defined below),
and, at Seller’s request, shall furnish to Seller copies of any reports received by
Purchaser in connection with any such inspection. Purchaser hereby assumes full
responsibility for such inspections and irrevocably waives any claim against Seller and
releases Seller from all liability arising from the presence of Hazardous Substances on the
Property. Purchaser shall also furnish to Seller copies of any other reports received by
Purchaser relating to any other inspections of the Property conducted on Purchaser’s behalf,
if any (including, specifically, without limitation, any reports analyzing compliance of the
Property with the provisions of the Americans with Disabilities Act (“ADA”), 42
U.S.C. §12101, et seq., if applicable). As used herein, “Hazardous Substances”
means all hazardous or toxic materials, substances, pollutants, contaminants, or wastes
currently identified as a hazardous substance or waste in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (commonly known as “CERCLA”), as amended,
the Superfund Amendments and Reauthorization Act (commonly known as “SARA”), the Resource
Conservation and Recovery Act (commonly known as “RCRA”), or any other federal, state or
local legislation or ordinances applicable to the Property (collectively, “Environmental
Laws”). The provisions of this Section 5.7(a) shall survive Closing.

		 	(b) Without limiting anything herein to the contrary, Purchaser waives any right of
contribution with respect to Seller relating to any matter arising from, or relating to the
existence of, Hazardous Substances or the violation or enforcement of Environmental Laws in
connection with the Property or operation thereof. Seller makes no representations or
warranties as to whether the Property or any portion thereof contains asbestos, harmful or
toxic substances or other Hazardous Substances or is in compliance with Environmental Laws.
The provisions of this Section 5.7(b) shall survive Closing or any termination of
this Agreement.

		 	(c) Not later than two (2) days prior to the Closing, Seller shall send, or cause the
Manager to send, written notice to guests or other persons who have safe deposit boxes at

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	 	 	the Hotel advising of the sale of the Hotel and requesting verification or removal of the
contents within five (5) days. The safe deposit boxes of guests or other persons not
responding to said written notice shall be opened only in the presence of the Manager or
representatives of both Seller and Purchaser. The contents of all boxes opened as aforesaid
shall be listed at the time such boxes are opened and each such list shall be signed by or
on behalf of the Manager or by or on behalf of Seller and Purchaser, and Purchaser shall not
be liable or responsible for any items claimed to have been in said boxes unless such items
are included in such list. Seller agrees to indemnify, defend and hold Purchaser harmless
from and against any liability or responsibility for any items claimed to have been in said
boxes but not included on such list and Purchaser agrees to indemnify, defend and hold
Seller harmless from and against any liability or responsibility for items claimed to have
been in said boxes and included in such list and all claims, losses and liabilities with
respect thereto arising out of the acts or omissions of Purchaser after the Closing Date.
The provisions of this Section 5.7(c) shall survive Closing.

		 	(d) All baggage or other property of guests of the Hotel which has been checked with or left
in the care of Seller and remains in Seller’s care as of the Cut-Off Time shall be
inventoried and tagged jointly by Seller and Purchaser. Purchaser hereby agrees to defend,
indemnify and hold harmless Seller against any claims, losses or liabilities in connection
with such baggage and property arising out of the acts or omissions of Purchaser from and
after the Closing Date. Seller hereby agrees to defend, indemnify and hold harmless
Purchaser against all claims, losses and liabilities with respect to such baggage and
property arising out of the acts or omissions of Seller prior to the Closing Date. This
Section 5.7(d) shall survive Closing.

		 	(e) Purchaser shall honor (and shall cause its manager to honor) all reservations at the
Hotel (including honoring the rates at which such reservations were made, including
reservations made on a wholesale, reward points redemption, or other basis), or for any
related conference, banquet, or meeting space or any other facilities in connection with the
Hotel made by Seller on or prior to the Cut-Off Time for periods on or after the Closing
Date. The provisions of this Section 5.7(e) shall survive Closing.

	5.8	 	Employees.

		 	(a) Effective at and upon Closing, Seller shall terminate, or cause the termination of,
the employment of all individuals employed at the Hotel by Manager and/or Seller as of
the Closing Date, irrespective of whether such individuals are active or on leaves of
absence or otherwise inactive (“Hotel Employees”).

		 	(b) Purchaser agrees that it or Manager will offer to hire or cause to be hired effective
at and upon Closing, and after Closing will maintain or cause to be maintained the
employment of (directly or indirectly through any designee of Purchaser or Manager used
to employ Hotel personnel), a sufficient number of the Hotel Employees (“Retained
Employees”) with compensation, seniority, health benefits, vacation and other
benefits (i) so that Seller shall not be required to give any layoff, closing or other
termination notices or otherwise incur any liability pursuant to the provisions of the

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	 	 	Federal Worker Adjustment and Retraining Notification Act. 29 U.S.C. 2101-2109 (the
“Federal WARN Act”) and/or the California Worker Notification Law (California
Assembly Bill 2957, effective January 1, 2003) (the “California WARN Act”). If
Purchaser, Manager or their designee used by Purchaser to employ Hotel personnel does not
rehire a particular Hotel Employee at Closing, or if following Closing Purchaser, Manager
or such designee desires to terminate the employment of any Retained Employee, Purchaser
shall be solely responsible for complying or causing compliance with all applicable
provisions of federal, state and municipal laws and regulations relating to such action,
including without limitation any applicable provisions of the Federal WARN Act or the
California WARN Act.

		 	(c) The parties agree to cooperate in scheduling and otherwise handling matters relating
to Hotel Employees pursuant to this Section 5.8, so as to minimize prior to
Closing any potential employee morale problems arising from the sale of the Hotel to
Purchaser and any resulting disruption to Hotel services or the quality thereof. During
the period prior to Closing, the parties shall also consult on a regular basis and
coordinate their activities relating to employee matters so as to facilitate a smooth
transition of Hotel operations and the continued proper performance by the Hotel
Employees of their respective duties up to Closing.

		 	(d) The parties hereto agree that (i) Purchaser will not be subject to any of the debts,
obligations and/or liabilities of Seller which may exist with respect to the employment
or termination of any Hotel Employees prior to Closing, or which are attributable to the
termination of such employees by Seller at or prior to Closing (except to the extent that
such debts, obligations and/or liabilities (A) arise from or under any employee benefit
plan, and (B) are expressly covered by a credit against the Purchase Price specifically
provided in this Agreement) (“Seller’s Employee Obligations”); and (ii) Seller
will not be subject to any of the debts, obligations and/or liabilities of Purchaser,
Manager or their designee used to employ Hotel personnel, which are attributable to any
actions or omissions of Purchaser, Manager or such designee, or any agents or
representatives thereof, in the process of the retaining, hiring or rehiring of any
employees, including, without limitation, any claims arising out of or relating to
whether, and upon which terms and conditions, any such employees are offered employment
by Purchaser, Manager or such designee, or are hired or rehired by Purchaser, Manager or
such designee, or which may otherwise exist regarding the employment of employees at the
Hotel by Purchaser, Manager or such designee from and after Closing (“Purchaser’s
Employee Obligations”).

		 	(e) Purchaser agrees to indemnify, defend and hold harmless the Seller, its officers,
directors, members, owners and affiliates (herein, the “Seller-Related Parties”)
from and against any claim, liability, or judgment asserted against any of the
Seller-Related Parties on account of or with respect to any of Purchaser’s Employee
Obligations, including, without limitation, (i) any causes of action, damages,
complaints, judgments, orders and/or claims, whatsoever, and all costs and expenses
(including, without limitation, reasonable attorneys’ fees and costs) incurred in
connection therewith, which may be asserted against any of the Seller-Related Parties on
account of any violation of the National Labor Relations Act, Title VII of the Civil
Rights Act,

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	 	 	the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Vocational
Rehabilitation Act of 1973, the Federal WARN Act and/or the California WARN Act (other
than as expressly provided in paragraph (c) of this Section 5.8), California
State Wage/Hour laws, the California Fair Employment and Housing Act, the California
Labor Code, and/or any other applicable federal or state employment statutes, rules and
regulations (collectively, “Employment Laws”) by Purchaser, or any designee or
management company engaged by Purchaser to employ Hotel personnel, and (ii) any claims
or liabilities (A) arising under the federal Employee Retirement Income Security Act, as
amended, and/or any other applicable federal or state law or regulation concerning
employee benefit plans with respect to the employment of employees by Purchaser or such
designee or management company from and after the Closing, or (B) arising from or under
any employee benefit plan applicable to any Retained Employee or any other employee hired
by Purchaser or such designee or management company to perform services at or for the
Hotel, to the extent that any such claim or liability relates solely to any period of
employment from and after the Closing.

		 	(f) Seller shall settle, with respect to any Hotel Employees employed by Seller prior to
Closing, any and all claims and obligations which may be due and owing to any such Hotel
Employees which have accrued or are otherwise payable with respect to any period prior to
the Closing or in connection with their termination of employment by Seller prior to
Closing, unless otherwise agreed upon by Seller, Purchaser and/or the Union, including,
without limitation, (i) all wages and/or benefits payable to such Hotel Employees for
periods prior to the Closing, (ii) all accrued but unpaid vacation, holidays or holiday
pay, personal days, sick leave and/or any other benefit entitlement payable with respect
to any period prior to the Closing, (iii) and any charges or other compensation owing by
reason of the termination of such employees by Seller.

		 	(g) Seller agrees to indemnify, defend and hold harmless the Purchaser, its officers,
directors, members, owners and affiliates (herein, the “Purchaser-Related
Parties”) from and against any claim, liability, or judgment asserted against any of
the Purchaser-Related Parties on account of or with respect to any of Seller’s Employee
Obligations, including, without limitation, (i) any causes of action, damages,
complaints, judgments, orders and/or claims, whatsoever, and all costs and expenses
(including, without limitation, reasonable attorneys’ fees and costs) incurred in
connection therewith, which may be asserted against any of the Purchaser-Related Parties
on account of any violation Employment Laws by Seller, or any designee or management
company engaged by Seller to employ Hotel personnel, and (ii) any claims or liabilities
(A) arising under the federal Employee Retirement Income Security Act, as amended, and/or
any other applicable federal or state law or regulation concerning employee benefit plans
with respect to the employment of employees by Seller or such designee or management
company prior to the Closing, or (B) arising from or under any employee benefit plan
applicable to any Hotel personnel employed by Seller or such designee or management
company to perform services at or for the Hotel, to the extent that any such claim or
liability relates solely to any period of employment prior to the Closing.

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		 	(h) Purchaser shall: (i) credit Retained Employees with their original date of hire by
Seller for purposes of any length of service requirements, waiting periods, vesting
periods, or differential benefits based on length of service in any benefit plan
established or maintained by or on behalf of Purchaser for which such Hotel Employees may
be eligible after the Closing, such that Seller shall not have any COBRA obligations for
Retained Employees hired by Purchaser; (ii) ensure that any pre-existing conditions,
restrictions or waiting periods under any benefit plan established by or on behalf of
Purchaser providing medical, dental, vision, or prescription drug coverage or benefits
are waived to the extent necessary to provide immediate coverage for Hotel employees who
are hired for the Hotel following termination of such Hotel Employees’ coverage under the
benefit plans maintained by or on behalf of Seller, such that Seller shall not have COBRA
obligations for any such Hotel Employees who are hired by Purchaser; and (iii)
indemnify, defend and hold Seller harmless from and against all loss, expense (including
reasonable attorneys’ fees and disbursements incurred to enforce this indemnity), damage
and liability resulting from any COBRA claims or obligations arising in respect of
Retained Employees and any claims or disputes with Retained Employees regarding employee
benefits arising from and after the Closing Date.

		 	(i) Without limiting any other provision of this Section 5.8, Purchaser
acknowledges and agrees that (i) Seller is a party to and is bound by the terms of the
collective bargaining agreement, related memorandum of understanding and other related
agreements, as provided by their terms (collectively, the “Collective Bargaining
Agreements”), with Unite Here! Local 2 (the “Union”), (ii) copies of the
Collective Bargaining Agreements have previously been delivered or made available to
Purchaser for its review, and (iii) Purchaser shall recognize and assume all of Seller’s
obligations, arising from and after the Closing Date under the Collective Bargaining
Agreement. Purchaser further agrees to (A) recognize the Union as the exclusive
bargaining representative for the employees covered under the Collective Bargaining
Agreements (the “Union Employees”), (B) execute a copy of the Collective
Bargaining Agreement (without modification or amendment) and such other documents, if
any, as are required to be executed pursuant to the provisions of the Collective
Bargaining Agreement, (C) offer employment to 100% of the Union Employees, which
employment shall be at wages and/or other compensation and with benefits at least
equivalent to the wages and/or other compensation and benefits (including, without
limitation, sick leave, vacation, health insurance and other pension and welfare
benefits) that such Union Employees enjoy as of the Closing Date, and (D) credit those
Union Employees that elect to continue employment with their original dates of hire.

		 	(j) Under the Collective Bargaining Agreement, Seller currently contributes, on a monthly
basis, various amounts under the (A) Health and Welfare Fund, (B) Pension Fund, (B) Group
Legal Service Trust Fund, and (C) Education Trust Fund (collectively, the “Union
Employee Benefit Funds”). Purchaser shall receive at Closing a credit against the
Purchase Price, on a pro rata basis for the month in which the Closing occurs, for any of
the monthly Union Employee Benefit Funds contributions that have accrued to Seller prior
to Closing but for which payment is not yet due under the Collective Bargaining
Agreement.

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	 	(k)	 	Retirement Plan.
	 
	 		 	(i) Seller and Purchaser agree that during the Contribution Period (as defined
below), Purchaser shall make contributions to the San Francisco Culinary, Bartenders
and Service Employees Pension Trust Fund (“Retirement Plan”), in accordance
with the Collective Bargaining Agreement, for substantially the same number of
contribution base units, within the meaning of Section 4001(a)(11) of ERISA, for
which Seller had an obligation to contribute with respect to the Hotel. If, as a
result of Purchaser’s failure to comply with the foregoing requirement or as a
result of any other action by Purchaser, Seller incurs any withdrawal liability
under the Retirement Plan with respect to the Hotel, or Seller incurs any other
liability in connection with the Retirement Plan for any reason, the Purchaser shall
indemnify, defend, and hold Seller and any of its ERISA affiliates harmless from and
against any such liability and all related costs and expenses, including reasonable
attorneys’ fees.
	 
	 		 	(ii) Purchaser agrees to cooperate with Seller and/or Retirement Plan representative
with respect to any inquiry or reasonable request for information and assistance in
order to facilitate the transfer of Retirement Plan from Seller to Purchaser.
	 
	 		 	(iii) Subject to Section 5.8(j)(vi), during the period commencing on the
first day of the plan year following the Closing Date and ending on the expiration
of the fifth such plan year (the “Contribution Period”), Purchaser shall
provide to the Retirement Plan either a bond, letter of credit, or an escrow in an
amount and manner meeting the requirements of Section 4204 of ERISA. The cost of
any bond, letter of credit, or escrow provided under this Section
5.8(j)(iii) shall be paid by Purchaser.
	 
	 		 	(iv) To the extent required pursuant to Section 4204(a)(3) of ERISA, Seller shall
provide to the Retirement Plan a bond or escrow equal to the present value of the
withdrawal liability Seller would have had to the Retirement Plan with respect to
the assets acquired by Purchaser pursuant to this Agreement (but for the provisions
of Section 4204 of ERISA), reduced to the extent provided under Section 4204(a)(3)
of ERISA in the event only a portion of Seller’ assets are distributed during the
Contribution Period.
	 
	 		 	(v) If Purchaser at any time withdraws from the Retirement Plan in a complete or
partial withdrawal with respect to the assets acquired by Purchaser pursuant to this
Agreement during the Contribution Period, Purchaser shall be primarily liable and
pay, and Seller shall be secondarily liable for any withdrawal liability Seller
would have had to the Retirement Plan with respect to the Hotel (but for the
provisions of Section 4204 of ERISA) if the withdrawal liability of Purchaser with
respect to such Retirement Plan is not paid. Purchaser shall indemnify and hold
Seller harmless for any withdrawal liability incurred by Seller pursuant to the
preceding sentence. Purchaser agrees to provide Seller with reasonable advance
notice of any action or event which could result in the imposition of any

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	 	 	 	withdrawal liability contemplated by this Section 5.8(j)(v), and in any
event Purchaser shall immediately furnish Seller with a copy of any notice
including, but not limited to a notice of withdrawal liability, it may receive with
respect to the Retirement Plan, together with all the pertinent details. If any
such withdrawal liability shall be assessed against Purchaser, Purchaser further
agrees to provide Seller with reasonable advance notice of any intention on the part
of Purchaser not to make full payment of any withdrawal liability when the same
shall become due. Any proposed notice or communication to the Retirement Plan
relating to Purchaser’s obligations under this Section shall be provided to Seller
at least ten (10) days before such notice is provided to the Retirement Plan, and
the form of such notice and communication shall be subject to Seller’s written
approval, which approval shall not be unreasonably withheld.
	 
	 		 	(vi) Notwithstanding anything contained in Section 5.8(j)(iii) to the
contrary, Purchaser shall not be obligated to provide any bond, letter of credit, or
escrow in the event and to the extent Purchaser obtains from the Retirement Plan or
the Pension Benefit Guaranty Corporation a proper variance or exemption under
Section 4204(c) of ERISA and the applicable regulations thereunder, provided any and
all requirements of said variance or exemption are met and Purchaser approves such
exception.
	 
	 	(l)	 	Purchaser’s obligations under this Section 5.8 shall survive Closing.

ARTICLE VI

DEFAULT

	6.1	 	Default by Purchaser. If Purchaser defaults under this Agreement prior to Closing,
Seller shall be entitled, as its sole remedy (without limiting Seller’s rights with respect to
any indemnification obligations of Purchaser under this Agreement or under Section
10.19 below), to terminate this Agreement and receive the Earnest Money as liquidated
damages for the breach of this Agreement, it being agreed between the parties hereto that the
actual damages to Seller in the event of such breach are impractical to ascertain and the
amount of the Earnest Money is a reasonable estimate thereof. THEREFORE, BY PLACING THEIR
INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT THE EARNEST MONEY HAS BEEN AGREED UPON, AFTER
NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND AS SELLER’S EXCLUSIVE
REMEDY AGAINST PURCHASER, AT LAW OR IN EQUITY, IN THE EVENT OF A DEFAULT UNDER THIS AGREEMENT
ON THE PART OF PURCHASER. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES
IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES
TO SELLER.

	 	 	 	Initials:            Seller                                 Purchaser                     

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	 	 	Nothing contained in this Section 6.1 shall limit or prevent Seller from (a)
asserting any legal or equitable claims against Purchaser for Purchaser’s obligation to pay
attorneys’ fees and other amounts under Section 10.19, or (b) enforcing any
indemnity obligation of Purchaser under this Agreement or preclude Seller from obtaining a
damage award in connection therewith, or (c) enforcing Purchaser’s other obligations and
liabilities which survive Closing or a termination of this Agreement.

	6.2	 	Purchaser’s Right to Cure Defaults. Notwithstanding anything to the contrary in this
Agreement, Seller shall not have the right to exercise its remedies under Section 6.1
for a Purchaser default unless Seller has provided written notice to Purchaser specifying in
reasonable detail the nature of the Purchaser default, and Purchaser has not cured the same
within five (5) days after Purchaser’s receipt of such notice (the “Purchaser Cure
Period”), in which case the Outside Closing Date shall be extended until the date which is
two (2) business days after the expiration of the Purchaser Cure Period.

	6.3	 	Default by Seller. In the event that Seller fails to consummate this Agreement for
any reason other than Purchaser’s default or the permitted termination of this Agreement by
Seller or Purchaser as herein expressly provided, Purchaser shall be entitled, as its sole
remedy, either (a) to receive the return of the Earnest Money, which return shall operate to
terminate this Agreement and release Seller from any and all liability hereunder, or (b) to
enforce specific performance of Seller’s obligation to execute the documents required to
convey the Property to Purchaser, it being understood and agreed that the remedy of specific
performance shall not be available to enforce any other obligation of Seller hereunder.
Purchaser expressly waives its rights to seek damages in the event of Seller’s default
hereunder. Purchaser shall be deemed to have elected to terminate this Agreement and receive
back the Earnest Money if Purchaser fails to file suit for specific performance against Seller
in a court having jurisdiction in the county and state in which the Property is located, on or
before thirty (30) days following the date upon which Closing was to have occurred.
Notwithstanding the foregoing, (a) nothing contained in this Section 6.3 shall limit
or prevent Purchaser from (i) asserting any legal or equitable claims against Seller for
Purchaser’s obligation to pay attorneys’ fees and other amounts under Section 10.19,
or (ii) enforcing any indemnity obligation of Seller under this Agreement or preclude
Purchaser from obtaining a damage award in connection therewith, or (iii) enforcing Seller’s
other obligations and liabilities which survive Closing or a termination of this Agreement,
and (b) in the event that any such failure by Seller is of such a nature that specific
performance as a remedy is not available as a matter of law, then, Purchaser shall have the
right, anything herein contained to the contrary notwithstanding, to damages against Seller on
account of such failure to compensate Purchaser for all of its third party out of pocket costs
and expenses incurred in connection with the transaction contemplated hereby and this
Agreement, but not in excess of the sum of One Hundred Thousand and No/100 Dollars
($100,000.00) and Purchaser shall have the right to pursue an action for such damages in a
court of competent jurisdiction.

	6.4	 	Seller’s Right to Cure Defaults. Notwithstanding anything to the contrary in this
Agreement, Purchaser shall not have the right to exercise its remedies under Section
6.3 for a Seller default unless Purchaser has provided written notice to Seller specifying
in

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	 	 	reasonable detail the nature of the Seller default, and Seller has not cured the same within
thirty (30) days after Seller’s receipt of such notice (the “Seller Cure Period”),
in which case the Outside Closing Date shall be extended until the date which is five (5)
business days after the expiration of the Seller Cure Period.

ARTICLE VII

RISK OF LOSS

	7.1	 	Minor Damage. In the event of loss or damage to the Real Property or any portion
thereof which is not “major” (as hereinafter defined), this Agreement shall remain in full
force and effect provided Seller performs any necessary repairs or, at Seller’s option,
assigns to Purchaser all of Seller’s right, title and interest to any claims and proceeds
Seller may have with respect to any casualty insurance policies or condemnation awards
relating to the premises in question (other than business interruption proceeds attributable
to the period prior to Closing). In the event that Seller elects to perform repairs upon the
Real Property, Seller shall use reasonable efforts to complete such repairs promptly and the
Outside Closing Date shall be extended a reasonable time in order to allow for the completion
of such repairs. If Seller elects to assign a casualty claim to Purchaser, the Purchase Price
shall be reduced by an amount equal to the deductible amount under Seller’s insurance policy.
Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser.

	7.2	 	Major Damage. In the event of a “major” loss or damage to the Real Property,
Purchaser may terminate this Agreement by written notice to Seller, in which event the Earnest
Money shall be returned to Purchaser. If Purchaser fails for any reason to deliver written
notice of termination to Seller within ten (10) days after Seller sends Purchaser written
notice of the occurrence of major loss or damage, then Purchaser shall be deemed to have
elected to proceed with Closing, in which event Seller shall, at Seller’s option, either
(a) perform any necessary repairs, or (b) assign to Purchaser all of Seller’s right, title and
interest to any claims and proceeds Seller may have with respect to any casualty insurance
policies or condemnation awards relating to the premises in question. In the event that
Seller elects to perform repairs upon the Real Property, Seller shall use reasonable efforts
to complete such repairs promptly and the Outside Closing Date shall be extended a reasonable
time in order to allow for the completion of such repairs. If Seller elects to assign a
casualty claim to Purchaser, the Purchase Price shall be reduced by an amount equal to the
deductible amount under Seller’s insurance policy and Seller shall assign all of its rights to
proceeds under the applicable policy with respect to any claim for the applicable loss (other
than business interruption proceeds attributable to the period prior to Closing). Upon
Closing, full risk of loss with respect to the Property shall pass to Purchaser.

	7.3	 	Definition of “Major” Loss or Damage. For purposes of Sections 7.1 and
7.2, “major” loss or damage refers to the following: (a) loss or damage to the Real
Property or any portion thereof such that the cost of repairing or restoring the premises in
question to a condition substantially identical to that of the premises in question prior to
the event of damage would be, in the opinion of an architect selected by Seller and reasonably

39

 

	 	 	approved by Purchaser, equal to or greater than Two Million Five Hundred Thousand and No/100
Dollars ($2,500,000), and (b) any loss due to a condemnation which permanently and
materially impairs the current use of the Real Property. If Purchaser does not give notice
to Seller of Purchaser’s reasons for disapproving an architect within five (5) business days
after receipt of notice of the proposed architect, Purchaser shall be deemed to have
approved the architect selected by Seller.

ARTICLE VIII

COMMISSIONS

	8.1	 	Brokerage Commissions. In the event the transaction contemplated by this Agreement
is consummated, but not otherwise, Seller agrees to pay to Eastdil Secured (“Broker”)
at Closing a brokerage commission pursuant to a separate written agreement between Seller and
Broker and Seller shall indemnify and hold Purchaser harmless with respect to any payments due
and owing to Broker in connection with this transaction under such agreement. 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 by, through or on account of any acts of said party or its
representatives, said party will indemnify, defend, protect and hold the other party free and
harmless from and against any and all loss, liability, cost, damage and expense in connection
therewith. The provisions of this Section 8.1 shall survive Closing or earlier
termination of this Agreement.

ARTICLE IX

DISCLAIMERS AND WAIVERS

	9.1	 	No Reliance on Documents. Except as expressly set forth in Section 5.1
above, Seller makes no representation or warranty as to the truth, accuracy or completeness of
any materials, data or information delivered by or on behalf of Seller or its brokers to
Purchaser in connection with the transaction contemplated hereby including, without
limitation, the Reports and other Seller Due Diligence Materials. Purchaser acknowledges and
agrees that all materials, data and information delivered by Seller to Purchaser in connection
with the transaction contemplated hereby are provided to Purchaser as a convenience only and
that any reliance on or use of such materials, data or information by Purchaser shall be at
the sole risk of Purchaser, except as otherwise expressly stated herein. Without limiting the
generality of the foregoing provisions, Purchaser acknowledges and agrees that (a) any
environmental or other report with respect to the Property which is delivered by Seller to
Purchaser shall be for general informational purposes only, (b) Purchaser shall not have any
right to rely on any such report delivered by Seller to Purchaser, but rather will rely on its
own inspections and investigations of the Property and any reports commissioned by Purchaser
with respect thereto, and (c) neither Seller nor any affiliate of Seller nor the person or
entity which prepared any such report delivered by Seller to Purchaser shall have any
liability to Purchaser for any inaccuracy in or omission from any such report or other
materials provided to Purchaser in connection with this Agreement.

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	9.2	 	DISCLAIMERS. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 5.1 OF THIS AGREEMENT,
IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY
WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO
THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO
HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ZONING, TAX
CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING
HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH
GOVERNMENTAL LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER
INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING
REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL
AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL
FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN SECTION 5.1 OF THIS
AGREEMENT. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR
BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR
INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT
LIMITATION, PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY AND ANY
ACTUAL OR PROPOSED BUDGETS FOR THE REAL PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF
THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT
SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS
SPECIFICALLY SET FORTH IN THIS AGREEMENT. PURCHASER REPRESENTS TO SELLER THAT PURCHASER IS A
SOPHISTICATED INSTITUTIONAL INVESTOR WITH SUBSTANTIAL EXPERIENCE AND EXPERTISE WITH INVESTMENT
PROPERTIES AND HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE
PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS
PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE
EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR
TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT
UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH
RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE
EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE DOCUMENTS DELIVERED AT CLOSING. UPON CLOSING
AND SUBJECT TO THE REPRESENTATIONS AND WARRANTIES OF SELLER EXPRESSLY SET FORTH

41

 

	 	 	IN SECTION 5.1 AND THE DOCUMENTS DELIVERED AT CLOSING, PURCHASER SHALL ASSUME THE
RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE
PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S
INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED
AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS)
FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION
IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND
COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT
HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT
CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING,
WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS,
CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY EXCEPT FOR FRAUD AND OBLIGATIONS OF SELLER
UNDER THIS AGREEMENT OR ANY AGREEMENTS EXECUTED AND DELIVERED BY SELLER AT CLOSING.
PURCHASER AGREES THAT SHOULD ANY CLEANUP, REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCES OR
OTHER ENVIRONMENTAL CONDITIONS ON THE PROPERTY BE REQUIRED AFTER THE CLOSING DATE, SUCH
CLEAN-UP, REMOVAL OR REMEDIATION SHALL BE THE RESPONSIBILITY OF AND SHALL BE PERFORMED AT
THE SOLE COST AND EXPENSE OF PURCHASER.

	 	 	     The waivers and releases set forth in Sections 5.7(a) and (b) and in
the immediately preceding paragraph include claims of which Purchaser is presently unaware
or which Purchaser does not presently suspect to exist which, if known by Purchaser, would
materially affect Purchaser’s waiver or release of Seller and the other parties referenced
in this Section. Purchaser specifically waives 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 EXPECT
TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN TO HIM MUST HAVE
MATERIALLY AFFECTED THE SETTLEMENT WITH THE DEBTOR.”
	 
	 	 	INITIALS: Purchaser                     

	9.3	 	Repairs, Reserves, and Capital Expenditures. Purchaser acknowledges and agrees that
except as provided in Section 5.4 of this Agreement, (a) Seller shall have no
obligation to make any repairs, replacements, improvements or alterations to the Property or
to expend any funds therefor, including, without limitation, any reserves that may be held for
such purpose, and (b) Purchaser shall not be entitled to a credit to the Purchase Price at

42

 

	 	 	Closing in the event capital expenditures actually made at the Hotel for any year are less
than the budgeted amount as of the date of the Closing.

	9.4	 	Effect and Survival of Disclaimers. Seller and Purchaser acknowledge that the
compensation to be paid to Seller for the Property has been decreased to take into account
that the Property is being sold subject to the provisions of this Article IX. Seller
and Purchaser agree that the provisions of this Article IX shall survive Closing.

ARTICLE X

MISCELLANEOUS

	10.1	 	Confidentiality. Subject to Section 10.2 below, this Agreement, the terms
hereof and the Property Information shall be treated in accordance with that certain
Confidentiality Agreement date March 24, 2010 executed by Pebblebrook Hospitality Trust in
favor of Seller (the “Confidentiality Agreement”). The provisions of this Section
10.1 shall survive the Closing.

	10.2	 	Public Disclosure. Any release to the public, at any time prior to or after Closing,
of information with respect to the sale contemplated herein or any matters set forth in this
Agreement will be made only in the form approved by Purchaser and Seller and their respective
counsel. The provisions of this Section 10.2 shall survive the Closing.
Notwithstanding the foregoing, at any time following the Effective Date, Purchaser may file
with the United States Securities Exchange Commission (“SEC”) information regarding
the transaction contemplated by this Agreement (including a copy of this Agreement) to the
extent required by law, and make a press release reasonably acceptable to Seller in connection
therewith.

	10.3	 	Discharge of Obligations. The acceptance of the Deed by Purchaser shall be deemed to
be a full performance and discharge of every representation and warranty made by Seller herein
and every agreement and obligation on the part of Seller to be performed pursuant to the
provisions of this Agreement, except those which are herein specifically stated to survive
Closing.

	10.4	 	Assignment. Purchaser may not assign its rights under this Agreement without first
obtaining Seller’s written approval which may be given or withheld in Seller’s sole
discretion; provided that, Purchaser may assign all or any portion of this Agreement to one or
more entities which are directly or indirectly controlled by, or under common control with,
Purchaser. Any assignment by Purchaser of this Agreement shall not relieve Purchaser of its
obligations under this Agreement and any permitted assignee must expressly assume the
obligations of Purchaser in writing. Without limiting the foregoing, in no event shall
Purchaser assign this Agreement to any assignee which, in the reasonable judgment of Seller,
will cause the transaction contemplated hereby or any party thereto to violate the
requirements of ERISA.

	10.5	 	Notices. Any notice pursuant to this Agreement shall be given in writing by (a)
personal delivery, or (b) reputable overnight delivery service with proof of delivery, or (c)
United

43

 

	 	 	States Mail, postage prepaid, registered or certified mail, return receipt requested, or (d)
legible facsimile or e-mail transmission completed before 5:00 p.m. (San Francisco time) on
a business day sent to the intended addressee at the address set forth below, or to such
other address or to the attention of such other person as the addressee shall have
designated by written notice sent in accordance herewith, and shall be deemed to have been
given either at the time of personal delivery, or, in the case of expedited delivery service
or mail, as of the date of first attempted delivery at the address and in the manner
provided herein, or, in the case of facsimile or e-mail transmission, as of the date of the
facsimile or e-mail transmission provided that an original of such facsimile or e-mail is
also sent to the intended addressee by means described in clauses (a), (b) or (c) above.
Unless changed in accordance with the preceding sentence, the addresses for notices given
pursuant to this Agreement shall be as follows:

If to Seller:

c/o Chartres Lodging Group, LLC

50 California Street, Suite 3300

San Francisco, California 94111

Attention: Mr. Robert D. Kline

Facsimile no. (415) 946-2322

E-mail: rob.kline@chartreslodging.com

With a copy to:

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street, 25th Floor

Los Angeles, California 90071

Attention: Alan Weakland, Esq.

Facsimile no. (213) 996-3241

E-mail: alanweakland@paulhastings.com

If to Purchaser:

Pebblebrook Hotel Trust

2 Bethesda Metro Center, Suite 1530

Bethesda, Maryland 20814

Attention: Thomas C. Fisher

Facsimile no. (240) 396-5763

E-mail: tfisher@pebblebrookhotels.com

With a copy to:

Honigman Miller Schwartz and Cohn LLP

38500 Woodward Avenue, Suite 100

Bloomfield Hills, Michigan

Attention: J. Adam Rothstein, Esq.

Facsimile no. (248) 566-8479

E-mail:arothstein@honigman.com

44

 

	10.6	 	Modifications. This Agreement cannot be changed orally, and no executory agreement
shall be effective to waive, change, modify or discharge it in whole or in part unless such
executory agreement is in writing and is signed by the parties against whom enforcement of any
waiver, change, modification or discharge is sought.
	 
	10.7	 	Calculation of Time Periods; Time is of the Essence. Unless otherwise specified, in
computing any period of time described in this Agreement, the day of the act or event after
which the designated period of time begins to run is not to be included and the last day of
the period so computed is to be included, unless such last day is a Saturday, Sunday or legal
holiday under the laws of the State in which the Real Property is located, in which event the
period shall run until the end of the next day which is neither a Saturday, Sunday or legal
holiday. The final day of any such period shall be deemed to end at 5:00 p.m., local time
where the Real Property is located. Time is of the essence with respect to each and every
term and provision of this Agreement.
	 
	10.8	 	Successors and Assigns. Subject to the limitations on assignment set forth in
Section 10.4 above, the terms and provisions of this Agreement are to apply to and
bind the permitted successors and assigns of the parties hereto.
	 
	10.9	 	Entire Agreement. This Agreement, including the Exhibits, the Schedules and the
Confidentiality Agreement contain the entire agreement between the parties pertaining to the
subject matter hereof and fully supersedes all prior written or oral agreements and
understandings between the parties pertaining to such subject matter.
	 
	10.10	 	Further Assurances. Each party agrees that it will without further consideration
execute and deliver such other documents and take such other action, whether prior or
subsequent to Closing, as may be reasonably requested by the other party to consummate more
effectively the purposes or subject matter of this Agreement. Without limiting the generality
of the foregoing, Purchaser shall, if requested by Seller, (a) execute acknowledgments of
receipt with respect to any materials delivered by Seller to Purchaser with respect to the
Property, and (b) obtain sellers’ permits for any sales activities conducted at the Property
prior to Closing and/or obtain “sale for resale certificates” for any Personal Property that
may be sold after the Closing. The provisions of this Section 10.10 shall survive
Closing.
	 
	10.11	 	Counterparts; Facsimile or e-mail Signatures. This Agreement may be executed in
counterparts, and all such executed counterparts shall constitute the same agreement. It
shall be necessary to account for only one such counterpart in proving this Agreement. In
order to expedite the transaction contemplated herein, telecopied or facsimile or e-mail
signatures may be used in place of original signatures on this Agreement. Seller and
Purchaser intend to be bound by the signatures on the telecopied or e-mailed document, are
aware that the other party will rely on the telecopied or e-mailed signatures, and hereby
waive any defenses to the enforcement of the terms of this Agreement based on the form of
delivery of the signature.

45

 

	10.12	 	Severability. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall
nonetheless remain in full force and effect.
	 
	10.13	 	Applicable Law. THIS AGREEMENT IS PERFORMABLE IN THE STATE IN WHICH THE LAND IS
LOCATED AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF SUCH STATE. SELLER AND
PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING
IN THE STATE IN WHICH THE LAND IS LOCATED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH
ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE
STATE IN WHICH THE LAND IS LOCATED. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS
SECTION 10.13 SHALL SURVIVE THE CLOSING OF THE TRANSACTION CONTEMPLATED BY THIS
AGREEMENT.
	 
	10.14	 	No Third Party Beneficiary. The provisions of this Agreement and of the documents
to be executed and delivered at Closing are and will be for the benefit of Seller and
Purchaser only and are not for the benefit of any third party, and accordingly, no third party
shall have the right to enforce the provisions of this Agreement or of the documents to be
executed and delivered at Closing.
	 
	10.15	 	Exhibits and Schedules. The following schedules or exhibits attached hereto shall
be deemed to be an integral part of this Agreement:

	 	 	 	 	 	 

	 	Schedule 1.1(a)

	 	-
	 	Legal Description of the Land
	 	 	 	 	 	 
	 	Schedule 1.1(e)-1

	 	-
	 	Service Contracts
	 	 	 	 	 	 
	 	Schedule 1.1(e)-2

	 	-
	 	Equipment Leases
	 	 	 	 	 	 
	 	Schedule 1.1(h)

	 	-
	 	List of Leases
	 	 	 	 	 	 
	 	Schedule 3.2

	 	-
	 	Reports
	 	 	 	 	 	 
	 	Schedule 4.4.11

	 	-
	 	Vouchers
	 	 	 	 	 	 
	 	Schedule 5.1(c)

	 	-
	 	Litigation
	 	 	 	 	 	 
	 	Schedule 5.1(e)

	 	-
	 	Violations
	 	 	 	 	 	 
	 	 
	 	 	 	 
	 	Exhibit A

	 	-
	 	Grant Deed
	 	 	 	 	 	 
	 	Exhibit B

	 	-
	 	Bill of Sale
	 	 	 	 	 	 
	 	Exhibit C

	 	-
	 	Assignment and Assumption of Contracts
	 	 	 	 	 	 
	 	Exhibit D

	 	-
	 	Assignment and Assumption of Leases
	 	 	 	 	 	 
	 	Exhibit E

	 	-
	 	FIRPTA Certificate
	 	 	 	 	 	 
	 	Exhibit F

	 	-
	 	CA Form 590
	 	 	 	 	 	 
	 	Exhibit G

	 	-
	 	Designation Agreement
	 	 	 	 	 	 
	 	Exhibit H

	 	-
	 	Form of Owner’s Affidavit
	 	 	 	 	 	 
	 	Exhibit I

	 	-
	 	Assignment and Assumption of Management Agreement
	 	 	 	 	 	 
	 	Exhibit J

	 	-
	 	Form of Interim Beverage Agreement
	 	 	 	 	 	 

	 	 	 	 

	 	Exhibit K

	-
	Form of Uomo Estoppel

46

 

	10.16	 	Captions. The section headings appearing in this Agreement are for convenience of
reference only and are not intended, to any extent and for any purpose, to limit or define the
text of any section or any subsection hereof.
	 
	10.17	 	Construction. The parties acknowledge that the parties and their counsel have
reviewed and revised this Agreement and that the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement or any exhibits, schedules or amendments hereto.
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, as the context may require.
	 
	10.18	 	Termination of Agreement. It is understood and agreed that if either Purchaser or
Seller terminates this Agreement pursuant to a right of termination granted hereunder, such
termination shall operate to relieve Seller and Purchaser from all obligations under this
Agreement, except for such obligations as are specifically stated herein to survive the
termination of this Agreement.
	 
	10.19	 	Attorneys Fees. If any action or proceeding is commenced by either party to enforce
their rights under this Agreement or to collect damages as a result of the breach of any of
the provisions of this Agreement, the prevailing party in such action or proceeding, including
any bankruptcy, insolvency or appellate proceedings, shall be entitled to recover all
reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and
court costs, in addition to any other relief awarded by the court.
	 
	10.20	 	Arbitration of Disputes. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING
TO HAVE ANY DISPUTE ARISING OUT OF THIS AGREEMENT DECIDED BY NEUTRAL ARBITRATION AS PROVIDED
BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE
LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR
JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THE
“ARBITRATION OF DISPUTES” PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO
THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE
OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.

(a) Any dispute, controversy or claim expressly required pursuant to the terms of this
Agreement to be submitted to arbitration shall be submitted to and settled by binding
arbitration in the City of San Francisco, California, pursuant to the rules of the Judicial
Arbitration and Mediation Services, Inc., then in effect (or at any other place or under any
other form of arbitration mutually acceptable to the parties). Notwithstanding the

47

 

foregoing, the parties hereto agree that any such arbitration shall be governed by the
following requirements:

(b) A single neutral arbitrator (with at least five (5) years experience in real property
transactions in the location of the Property) mutually selected by the parties shall conduct
the arbitration proceedings. If the parties are unable to agree upon a single neutral
arbitrator within fifteen (15) days from the date of any notice of demand for arbitration,
the parties shall each select a neutral arbitrator within ten (10) days. The two (2)
arbitrators so selected shall then choose a third neutral arbitrator within five (5) days.
The three neutral arbitrators (“Arbitrators”) so selected shall conduct the
arbitration proceeding and render the arbitration decision.

(c) Any arbitration decision shall be in writing, with the bases of such decision specified
in reasonable detail.

(d) Each party shall submit to the other party, not less than five (5) business days (or
such longer period as the Arbitrators may specify) prior to the commencement of the
arbitration hearing, (i) a list of the persons whose testimony the other party intends to
elicit at the arbitration hearing, (ii) copies of any and all documents to be offered into
evidence, and (iii) a description in reasonable detail of any other evidence such party
intends to offer into evidence. The foregoing shall not limit the parties’ rights to such
other discovery as may be permitted pursuant to the rules of the arbitrating entity.

(e) If the Parties elect arbitration, any award rendered shall be final and conclusive upon
the parties and a judgment thereon may be entered in the highest court of the state forum
having jurisdiction over the subject matter of such arbitration. The expenses of the
arbitration shall be borne equally by the parties to the arbitration, provided that each
party shall pay for and bear the cost of its own experts, evidence and counsel’s fees; and
provided, further, that the Arbitrators may award all or any portion of the costs of either
party to be borne by the other party where the Arbitrators find that such other party’s
claim or defense was manifestly unreasonably maintained.

WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE
MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION TO NEUTRAL ARBITRATION.

	 	 	 

	 

	 	 
	SELLER’S INITIALS

	 	BUYER’S INITIALS

The foregoing shall not apply to or limit the right of Purchaser to bring suit for specific
performance in an appropriate court of law in accordance with the terms of this Agreement.

	10.21	 	No Waiver. Failure of either party at any time to require performance of any
provision of this Agreement shall not limit the party’s right to enforce the provision.
Waiver of any breach of any provision shall not be a waiver of any succeeding breach of the
provision or a waiver of the provision itself or any other provision.

48

 

	10.22	 	No Reservation of Property. The preparation and/or delivery of unsigned drafts of
this Agreement shall not create any legally binding rights in the Property and/or obligations
of the parties, and Purchaser and Seller acknowledge that this Agreement shall be of no effect
until it is duly executed by both Purchaser and Seller.

	10.23	 	No Recordation. Subject to Section 10.2 above and any filings required to
be made by Purchaser with the SEC, Purchaser shall not record this Agreement, nor any
memorandum or other notice of this Agreement, in any public records.

	10.24	 	Like-Kind Exchange. Notwithstanding anything to the contrary in this Agreement,
Purchaser or Seller may elect to exchange the Property for other real estate of a like kind in
accordance with Section 1031 of the Internal Revenue Code of 1986, as amended (the
“Code”. To the extent possible, the provisions of this Section shall be interpreted
consistently with this intent. To exercise any rights under this Section, the party electing
to exchange the Property shall provide the other with a written statement stating its intent
to enter into an exchange at least five (5) days prior to Closing. Either party’s election to
exchange, rather than sell or buy, the Property for other real estate of a like kind shall be
at no cost or liability to the other. Should this Agreement become part of a 1031 transaction,
the party electing to exchange the Property (the “Exchanger”) hereby agrees that the
other party may enforce any and all representations, warranties, covenants and other
obligations of the Exchanger under this Agreement directly against Exchanger, and the other
party agrees that Exchanger may enforce any and all representations, warranties, covenants and
other obligations of the other party under this Agreement directly against the other party.

	10.25	 	Continuing Access to Books and Records. Throughout the period expiring on the date
two (2) years from and after Closing, Seller shall make all of all books and records of Seller
and the Property for the years ended December 31, 2007, 2008 and 2009 and interim periods as
required by the rules and regulations of the SEC available to Purchaser and Purchaser’s
independent accountants for inspection, copying and audit at the expense of the Purchaser.
Upon reasonable prior written notice, Seller shall provide Purchaser and/or its independent
accountant with copies of, or reasonable 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.
Seller shall also, upon request, supply to Purchaser letters of representation to such
accountants, in form and substance reasonably satisfactory to Purchaser. This Section
10.25 shall survive the Closing.

[SIGNATURE PAGE FOLLOWS]

49

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective
Date.

SELLER:

SFD UNION SQUARE, LLC,

a Delaware limited liability company

	 	 	 	 	 	 	 	 	 

	By: 	 	SFD Mezz, LLC,	 	 	 
	 	 	a Delaware limited liability company,
	 	 	its sole member	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:  	SFD Partners, LLC,	 
	 	 	 	a Delaware limited liability company,
	 	 	 	its sole member	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:  	Oxford Lodging Union Square, LLC,
	 	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	 	its managing member
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	By:  	The Chartres Lodging Group, LLC,
	 
	 	 	 	 	 	 	a Delaware limited liability company,
	 
	 	 	 	 	 	 	its manager

	 	 	 	 	 
	 	 	 
	 	By:  	                    /s/ Robert Kline
 	 
	 	 	Name:  	Robert Kline 	 
	 	 	Title:  	President 	 

50

 

	 	 	 	 	 

	 	 	 	 	 
	PURCHASER:

HUSKIES OWNER LLC,

a Delaware limited liability company

 	 	 
	By:  	/s/ Thomas C. Fisher
 	 	 
	 	Its: Vice President 	 	 
	 	 	 	 

-51-

 

	 	 	 	 	 

	 	 	 	 	 
	AGREED TO THIS 20 DAY OF MAY, 2010, AS TO

PROVISIONS RELATING TO ESCROW AGENT:

CHICAGO TITLE INSURANCE COMPANY

 	 	 
	By:  	/s/ Scott M. Green
 	 	 
	 	Its Authorized Signatory 	 	 
	 	 	 	 
	 

-52-exv10w3

Exhibit 10.3

PURCHASE AND SALE AGREEMENT

by and between

IHC BUCKHEAD, LLC

a Georgia limited liability company

as Seller,

and

ORANGEMEN OWNER LLC

a Delaware limited liability company

as Buyer

May 25, 2010

Property: InterContinental Buckhead, Atlanta, Fulton County, Georgia

Table of Contents

Property: IC Buckhead, Atlanta GA

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 

	1.	 	Deadlines and Definitions	 	 	1	 
	 

	 	 	1.1	 	 	Deadlines
	 	 	1	 
	 

	 	 	1.2	 	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	2.	 	Purchase and Sale	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 
	3.	 	Purchase Price	 	 	2	 
	 

	 	 	3.1	 	 	Deposit
	 	 	2	 
	 

	 	 	3.2	 	 	Remainder of Purchase Price
	 	 	2	 
	 

	 	 	3.3	 	 	Purchase Price Allocation
	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 
	4.	 	Buyer’s Due Diligence and Inspection Rights; Termination Right	 	 	2	 
	 

	 	 	4.1	 	 	Review of Property and Property Documents
	 	 	2	 
	 

	 	 	4.2	 	 	Guidelines for Inspection Rights
	 	 	3	 
	 

	 	 	4.3	 	 	Title and Survey Objections
	 	 	4	 
	 

	 	 	 	 	 	A. Title and Survey Objections
	 	 	4	 
	 

	 	 	 	 	 	B. Cure of Title Matters
	 	 	4	 
	 

	 	 	4.4	 	 	Termination Right
	 	 	4	 
	 

	 	 	4.5	 	 	As-Is, Where-Is, With All Faults Sale
	 	 	5	 
	 
	 	 	 	 	 	 	 	 	 	 
	5.	 	Seller’s Covenants	 	 	5	 
	 

	 	 	5.1	 	 	No Alteration of Title
	 	 	5	 
	 

	 	 	5.2	 	 	New Leases and Modifications to Existing Leases
	 	 	5	 
	 

	 	 	5.3	 	 	Contracts
	 	 	6	 
	 

	 	 	5.4	 	 	Status of Property
	 	 	6	 
	 

	 	 	5.5	 	 	Tax Appeals
	 	 	6	 
	 

	 	 	5.6	 	 	Personal Property
	 	 	7	 
	 

	 	 	5.7	 	 	Intellectual Property
	 	 	7	 
	 

	 	 	5.8	 	 	Liquor License
	 	 	7	 
	 

	 	 	5.9	 	 	Continued Marketing of the Hotel for Sale
	 	 	8	 
	 

	 	 	5.10	 	 	Operation of Property
	 	 	8	 
	 
	 	 	 	 	 	 	 	 	 	 
	6.	 	Closing	 	 	8	 
	 

	 	 	6.1	 	 	Closing Mechanics
	 	 	8	 
	 

	 	 	6.2	 	 	Seller’s Deliveries
	 	 	8	 
	 

	 	 	 	 	 	A. Deed/Assignment of Master Lease
	 	 	8	 
	 

	 	 	 	 	 	B. Bill of Sale
	 	 	8	 
	 

	 	 	 	 	 	C. Assignment of Leases
	 	 	8	 
	 

	 	 	 	 	 	D. Assignment of Contracts, Warranties and Other
Interests
	 	 	9	 
	 

	 	 	 	 	 	E. Notices of Assignment and Assumption
	 	 	9	 
	 

	 	 	 	 	 	F. Withholding and Tax Certificates
	 	 	9	 
	 

	 	 	 	 	 	G. Affidavit of Title/Gap Indemnity
	 	 	9	 
	 

	 	 	 	 	 	H. Closing Statement
	 	 	9	 
	 

	 	 	 	 	 	I. Evidence of Authority
	 	 	9	 
	 

	 	 	 	 	 	J. Reaffirmation
	 	 	9	 

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Property: IC Buckhead, Atlanta GA

 

 

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	K. Transfer Tax Declaration
	 	 	9	 
	 

	 	 	 	 	 	L. Delivery of Keys and Property Documents
	 	 	9	 
	 

	 	 	 	 	 	M. Tenant Estoppels
	 	 	9	 
	 

	 	 	 	 	 	N. Management Agreement
	 	 	10	 
	 

	 	 	 	 	 	O. Transfer of Bonds
	 	 	10	 
	 

	 	 	 	 	 	P. Assignment and Assumption and Release Agreement
	 	 	10	 
	 

	 	 	 	 	 	Q. Georgia Withholding Certificate
	 	 	10	 
	 

	 	 	 	 	 	R. Affidavit Regarding Brokers
	 	 	10	 
	 

	 	 	 	 	 	S. Broker Lien Waiver
	 	 	10	 
	 

	 	 	 	 	 	T. Other Instruments
	 	 	10	 
	 

	 	 	6.3	 	 	Buyer’s Deliveries
	 	 	10	 
	 

	 	 	 	 	 	A. Net Purchase Price
	 	 	10	 
	 

	 	 	 	 	 	B. As Is Agreement
	 	 	10	 
	 

	 	 	 	 	 	C. Closing Document Counterparts
	 	 	10	 
	 

	 	 	 	 	 	D. Investment Letter
	 	 	10	 
	 

	 	 	 	 	 	E. Certificate Designating Authorized Lessee
Representatives
	 	 	10	 
	 

	 	 	 	 	 	F. Affidavit Regarding Brokers
	 	 	11	 
	 

	 	 	 	 	 	G. Broker Lien Waiver
	 	 	11	 
	 

	 	 	 	 	 	H. Initial Working Capital Deposit & Management
Agreement Conditions
	 	 	11	 
	 

	 	 	 	 	 	I. Other Instruments
	 	 	11	 
	 

	 	 	6.4	 	 	Tax-Deferred Exchange of Property
	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	7.	 	Prorations, Credits and Closing Costs	 	 	11	 
	 

	 	 	7.1	 	 	Proration Items
	 	 	11	 
	 

	 	 	 	 	 	A. Real Estate Taxes and Assessments
	 	 	12	 
	 

	 	 	 	 	 	B. Hotel Revenues
	 	 	12	 
	 

	 	 	 	 	 	     (i) Guest Ledger Receivables
	 	 	12	 
	 

	 	 	 	 	 	     (ii) Booking Deposits
	 	 	12	 
	 

	 	 	 	 	 	     (iii) Vending Machines
	 	 	12	 
	 

	 	 	 	 	 	     (iv) Working Capital, Hotel Accounts & Petty Cash
	 	 	13	 
	 

	 	 	 	 	 	     (v) Accounts Receivable
	 	 	13	 
	 

	 	 	 	 	 	C. Rental Payments
	 	 	13	 
	 

	 	 	 	 	 	     (i) Percentage Rents
	 	 	13	 
	 

	 	 	 	 	 	D. Security Deposits/Advance Rent
	 	 	13	 
	 

	 	 	 	 	 	E. Utility Expenses and Deposits
	 	 	14	 
	 

	 	 	 	 	 	F. Inventories and Hotel Consumables
	 	 	14	 
	 

	 	 	 	 	 	G. Other Operating Expenses
	 	 	14	 
	 

	 	 	 	 	 	H. Reimbursable Lease Expenses
	 	 	14	 
	 

	 	 	7.2	 	 	Closing Statement and Schedules
	 	 	15	 
	 

	 	 	7.3	 	 	Reprorations after Closing
	 	 	15	 
	 

	 	 	7.4	 	 	Seller’s Closing Costs
	 	 	15	 
	 

	 	 	7.5	 	 	Buyer’s Closing Costs
	 	 	15	 
	 
	 	 	 	 	 	 	 	 	 	 
	8.	 	Representations and Warranties	 	 	15	 
	 

	 	 	8.1	 	 	Seller’s Representations and Warranties
	 	 	15	 
	 

	 	 	 	 	 	A. Organization, Power and Authority
	 	 	16	 

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Property: IC Buckhead, Atlanta GA

- ii -

 

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	B. Title to Real and Personal Property
	 	 	16	 
	 

	 	 	 	 	 	C. Leases
	 	 	16	 
	 

	 	 	 	 	 	     (i) Tenants
	 	 	16	 
	 

	 	 	 	 	 	     (ii) Lease Defaults
	 	 	16	 
	 

	 	 	 	 	 	     (iii) Title
	 	 	16	 
	 

	 	 	 	 	 	     (iv) Leases
	 	 	16	 
	 

	 	 	 	 	 	D. Contracts
	 	 	17	 
	 

	 	 	 	 	 	E. Litigation Proceedings
	 	 	17	 
	 

	 	 	 	 	 	F. Tax Incentive Documents
	 	 	17	 
	 

	 	 	 	 	 	G. Other Property Conditions
	 	 	17	 
	 

	 	 	 	 	 	     (i) Land Use Regulations
	 	 	17	 
	 

	 	 	 	 	 	     (ii) Insurance Compliance
	 	 	17	 
	 

	 	 	 	 	 	     (iii) Taxes and Assessments
	 	 	18	 
	 

	 	 	 	 	 	     (iv) Special Assessments and Exactions
	 	 	18	 
	 

	 	 	 	 	 	H. Condemnation.
	 	 	18	 
	 

	 	 	 	 	 	I. Compliance
	 	 	18	 
	 

	 	 	 	 	 	     (i) No Violations
	 	 	18	 
	 

	 	 	 	 	 	     (ii) Hazardous Materials
	 	 	18	 
	 

	 	 	 	 	 	     (iii) No Transport
	 	 	18	 
	 

	 	 	 	 	 	     (iv) No Release
	 	 	18	 
	 

	 	 	 	 	 	     (v) No Underground Storage Tanks
	 	 	18	 
	 

	 	 	 	 	 	     (vi) No Asbestos
	 	 	18	 
	 

	 	 	 	 	 	J. Hotel Employee Matters
	 	 	18	 
	 

	 	 	 	 	 	K. Financial Information
	 	 	19	 
	 

	 	 	 	 	 	L Independent Audit
	 	 	19	 
	 

	 	 	 	 	 	M. Liquor License
	 	 	19	 
	 

	 	 	 	 	 	N. Foreign Person
	 	 	19	 
	 

	 	 	 	 	 	O. Patriot Act
	 	 	19	 
	 

	 	 	8.2	 	 	Seller’s Warranties Deemed Modified
	 	 	20	 
	 

	 	 	8.3	 	 	Claims of Breach of Warranty Prior To Closing
	 	 	20	 
	 

	 	 	8.4	 	 	Survival and Limits On Buyer’s Claims
	 	 	20	 
	 

	 	 	8.5	 	 	Buyer’s Representations and Warranties
	 	 	21	 
	 

	 	 	 	 	 	A. Organization, Power and Authority
	 	 	21	 
	 

	 	 	 	 	 	B. No Bankruptcy
	 	 	21	 
	 

	 	 	 	 	 	C. Sophisticated Buyer
	 	 	21	 
	 

	 	 	 	 	 	D. Reimbursement of Rebates
	 	 	22	 
	 

	 	 	8.6	 	 	Buyer’s Assumption of Seller Obligations.
	 	 	22	 
	 

	 	 	 	 	 	A. Wages and Salaries
	 	 	22	 
	 

	 	 	 	 	 	B. Contracts and Leases
	 	 	22	 
	 

	 	 	 	 	 	C. Guest Baggage
	 	 	23	 
	 

	 	 	 	 	 	D. Safe Deposit Boxes
	 	 	23	 
	 

	 	 	 	 	 	E. Bond Documents
	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 
	9.	 	Casualty and Condemnation	 	 	24	 
	 

	 	 	9.1	 	 	Major Event
	 	 	24	 
	 

	 	 	9.2	 	 	Closing Despite Casualty/Condemnation
	 	 	24	 

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Property: IC Buckhead, Atlanta GA

- iii -

 

	 	 	 	 	 	 	 	 	 	 	 

	10.	 	Other Conditions to Closing	 	 	24	 
	 

	 	 	10.1	 	 	Conditions to Buyer’s Obligations
	 	 	25	 
	 

	 	 	 	 	 	A. Representations
	 	 	25	 
	 

	 	 	 	 	 	B. Representations
	 	 	25	 
	 

	 	 	 	 	 	C. ROFO Compliance
	 	 	25	 
	 

	 	 	 	 	 	D. Liquor License
	 	 	25	 
	 

	 	 	 	 	 	E. Tax Abatement Transfer or Termination
	 	 	25	 
	 

	 	 	10.2	 	 	Conditions to Seller’s Obligations
	 	 	25	 
	 

	 	 	 	 	 	A. Representations
	 	 	25	 
	 

	 	 	 	 	 	B. Buyer Compliance
	 	 	26	 
	 

	 	 	 	 	 	C. ROFO Compliance
	 	 	26	 
	 

	 	 	 	 	 	D. Tax Abatement Transfer or Termination
	 	 	26	 
	 

	 	 	10.3	 	 	Waiver of Conditions
	 	 	26	 
	 
	 	 	 	 	 	 	 	 	 	 
	11.	 	Transaction Issues: Brokers, Confidentiality and Indemnity	 	 	26	 
	 

	 	 	11.1	 	 	Brokers
	 	 	26	 
	 

	 	 	11.2	 	 	Confidentiality
	 	 	26	 
	 

	 	 	11.3	 	 	Indemnity
	 	 	28	 
	 
	 	 	 	 	 	 	 	 	 	 
	12.	 	Default At or Prior to Closing	 	 	28	 
	 

	 	 	12.1	 	 	Buyer Default
	 	 	28	 
	 

	 	 	12.2	 	 	Seller Default
	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	13.	 	Notices	 	 	29	 
	 
	 	 	 	 	 	 	 	 	 	 
	14.	 	General Provisions	 	 	30	 
	 

	 	 	14.1	 	 	Execution Necessary
	 	 	30	 
	 

	 	 	14.2	 	 	Counterparts
	 	 	31	 
	 

	 	 	14.3	 	 	Successors and Assigns
	 	 	31	 
	 

	 	 	14.4	 	 	Governing Law
	 	 	31	 
	 

	 	 	14.5	 	 	Entire Agreement
	 	 	31	 
	 

	 	 	14.6	 	 	Time is of the Essence
	 	 	31	 
	 

	 	 	14.7	 	 	Interpretation
	 	 	31	 
	 

	 	 	14.8	 	 	Survival
	 	 	32	 
	 

	 	 	14.9	 	 	Further Assurances
	 	 	32	 
	 

	 	 	14.10	 	 	Exclusive Application
	 	 	32	 
	 

	 	 	14.11	 	 	Partial Invalidity
	 	 	32	 
	 

	 	 	14.12	 	 	Waiver Rights
	 	 	32	 
	 

	 	 	14.13	 	 	No Implied Waiver
	 	 	32	 
	 

	 	 	14.14	 	 	Rights Cumulative
	 	 	33	 
	 

	 	 	14.15	 	 	Attorney’s Fees
	 	 	33	 
	 

	 	 	14.16	 	 	Waiver of Jury Trial
	 	 	33	 
	 

	 	 	14.17	 	 	Facsimile Signatures
	 	 	33	 
	 

	 	 	14.18	 	 	No Recordation
	 	 	33	 
	 

	 	 	14.19	 	 	Maximum Aggregate Liability
	 	 	33	 
	 

	 	 	14.20	 	 	Exhibits and Schedules
	 	 	34	 
	 

	 	 	14.21	 	 	Jurisdiction
	 	 	34	 

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Property: IC Buckhead, Atlanta GA

- iv -

 

	 	 	 	 	 	 	 

	15.

	 	Retention of Hotel Employees
	 	 	34	 
	 
	 	 	 	 	 	 
	16.

	 	On-Going Management of Hotel
	 	 	34	 
	 
	 	 	 	 	 	 
	17.

	 	Drainage
	 	 	34	 
	 
	 	 	 	 	 	 
	18.

	 	Buyer’s Successor Payment Obligations
	 	 	35	 
	 
	 	 	 	 	 	 
	19.

	 	Au Pied De Cochon License
	 	 	36	 

SCHEDULE OF EXHIBITS

	 	 	 	 	 	 	 
	 	 	 	 	REFERENCE
	EXHIBIT	 	TITLE	 	PARAGRAPH
	A.

	 	Legal Description of Land
	 	Recitals

	 
	 	 	 	 	 	 
	A-1

	 	Purchase Price Allocation
	 	 	3.3	 
	 
	 	 	 	 	 	 
	B.

	 	Deed
	 	 	6.2	 
	 
	 	 	 	 	 	 
	B-1

	 	Assignment and Assumption of Lease
	 	 	6.2	 
	 
	 	 	 	 	 	 
	B-2

	 	Certificate Designating Authorized Lessee
Representatives	 	 	 	 
	 
	 	 	 	 	 	 
	C.

	 	Bill of Sale
	 	 	6.2	 
	 
	 	 	 	 	 	 
	D.

	 	Assignment and Assumption of Leases
	 	 	6.2	 
	 
	 	 	 	 	 	 
	E.

	 	Assignment and Assumption of Contracts, Warranties
and Other Interests
	 	 	6.2	 
	 
	 	 	 	 	 	 
	F.

	 	Notices:
	 	 	6.2	 
	 

	 	-1: To Tenants	 	 	 	 
	 

	 	-2: To Contract Parties	 	 	 	 
	 
	 	 	 	 	 	 
	G.

	 	Non-Foreign Affidavit
	 	 	6.2	 
	 
	 	 	 	 	 	 
	H.

	 	Affidavit of Title
	 	 	6.2	 
	 
	 	 	 	 	 	 
	I.

	 	Closing Statement
	 	 	6.2	 
	 
	 	 	 	 	 	 
	J.

	 	Litigation
	 	 	8.1	 
	 
	 	 	 	 	 	 
	K.

	 	Reaffirmation of Representations
	 	 	6.2	 
	 
	 	 	 	 	 	 
	L.

	 	As Is Agreement
	 	 	6.3	 
	 
	 	 	 	 	 	 
	L-1

	 	Assignment and Assumption and Release Agreement
	 	 	6.2	 
	 
	 	 	 	 	 	 
	M.

	 	List of Tenants (Rent Roll)
	 	 	8.1	 

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Property: IC Buckhead, Atlanta GA

- v -

 

	 	 	 	 	 	 	 
	 	 	 	 	REFERENCE
	EXHIBIT	 	TITLE	 	PARAGRAPH
	N.

	 	List of Contracts
	 	 	8.1	 
	 
	 	 	 	 	 	 
	O.

	 	Management Representation Letter
	 	 	8.1	(L)
	 
	 	 	 	 	 	 
	P.

	 	Management Agreement
	 	 	16	 
	 
	 	 	 	 	 	 
	Q.

	 	Licensed Intellectual Property
	 	 	5.7	 
	 
	 	 	 	 	 	 
	R.

	 	Seller Estoppel Certificate
	 	Schedule A

	 
	 	 	 	 	 	 
	S.

	 	Tenant Estoppel Certificate Form
	 	Schedule A

	 
	 	 	 	 	 	 
	U.

	 	Transfer of Bonds
	 	 	6.2	 
	 
	 	 	 	 	 	 
	U-1

	 	Form of Bond
	 	 	6.2	 
	 
	 	 	 	 	 	 
	V.

	 	Investment Letter
	 	 	6.3	 
	 
	 	 	 	 	 	 
	W-1

	 	Seller’s Affidavit Regarding Brokers
	 	 	6.2	 
	 
	 	 	 	 	 	 
	W-2

	 	Buyer’s Affidavit Regarding Brokers
	 	 	6.3	 
	 
	 	 	 	 	 	 
	W-3

	 	Broker’s Lien Waiver
	 	 	6.2	 
	 
	 	 	 	 	 	 
	X.

	 	Seller’s Affidavit of Residence
	 	 	6.2	 

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Property: IC Buckhead, Atlanta GA

- vi -

 

HOTEL PURCHASE AND SALE AGREEMENT

     THIS HOTEL PURCHASE AND SALE AGREEMENT (this “Agreement”) is made and entered into as
of May 25, 2010 (the “Effective Date”), by and between IHC BUCKHEAD, LLC, a Georgia
limited liability company (“Seller”), ORANGEMEN OWNER LLC, a Delaware limited liability
company (“Buyer”).

R E C I T A L S:

     WHEREAS, Seller is the owner of that certain hotel and ground leases the parcel of land the
hotel is located on, in Atlanta, Fulton County, Georgia, and more particularly described on
Exhibit A (the “Land”), and the Property (as hereinafter defined), and known as the
InterContinental Buckhead Hotel located at 3315 Peachtree Road, NE, Atlanta, Georgia 30326; and,

     WHEREAS, Buyer desires to acquire the Property from Seller for the purchase price of One
Hundred Five Million and No/100 Dollars ($105,000,000.00) (“Purchase Price”) and Seller
desires to convey the Property to Buyer all upon the terms and conditions hereinafter set forth.

          NOW, THEREFORE, for and in consideration of the promises, covenants, representations and
warranties hereinafter set forth, the sum of One Hundred Dollars ($100.00) and other good and
valuable consideration in hand paid by Seller to Buyer and by Buyer to Seller upon the execution of
this Agreement, the receipt and sufficiency of which are hereby acknowledged by each of the parties
hereto, the parties hereto hereby agree as follows:

     1. Deadlines and Definitions.

          1.1 Deadlines. Wherever used in this Agreement, the following terms shall have the
meanings set forth below:

     “Closing Deadline” shall mean the date ten (10) days after the expiration of the Due
Diligence Deadline. Except as set forth in Section 8.6E, in no event will the Closing Date
be after June 30, 2010.

     “Due Diligence Deadline” shall mean 6:00 P.M. local Atlanta, Georgia time on the date
thirty (30) calendar days after the Effective Date.

          1.2 Definitions. In addition, wherever used in this Agreement, the terms set forth on
Schedule A shall have the meanings set forth on Schedule A.

     2. Purchase and Sale. Seller agrees to convey, transfer and assign, and Buyer agrees
to acquire, accept and assume, Seller’s interest in the Property, on the terms, conditions and
provisions set forth in this Agreement. Buyer hereby acknowledges that fee simple title to the
Real Property is currently held by the Development Authority of Fulton County (the “Development
Authority”) and that Seller is conveying to Buyer
only its rights and obligations as lessee under that certain Lease Agreement by and between the
Development Authority and

Purchase Agreement

Property: IC Buckhead, Atlanta GA

 

 

Seller, dated December 1, 2002 (the “Master Lease”). For purposes of this Agreement,
whenever the words “purchase” and “sale” or words of similar import are used in connection with the
Real Property, they shall be deemed to be mean the assignment of Seller’s interest as lessee under
the Master Lease and shall not be deemed to suggest that any fee simple interest in the Real
Property is being transferred. Seller acknowledges and agrees that Seller has no right to the
Excluded Property by virtue of the Transaction.

     3. Purchase Price. The Purchase Price, subject to the prorations and credits set
forth herein, shall be due and payable as follows:

          3.1 Deposit. Within one (1) Business Day after the full and final execution of this
Agreement, Buyer shall make the Initial Deposit, in immediately available funds to the Title
Company. Notwithstanding any provision in this Agreement to the contrary, if Buyer fails to timely
make the Initial Deposit as provided herein, then Seller, at Seller’s option, may Terminate this
Agreement and, if Seller elects such option, the parties shall have no further rights or
obligations hereunder except for obligations which expressly survive the termination of this
Agreement. The Initial Deposit shall be fully refundable to Buyer if, on or before the Due
Diligence Deadline, Buyer terminates this Agreement in accordance with Paragraph 4.4. In addition,
no later than the Due Diligence Deadline (provided that this Agreement is not sooner Terminated in
accordance with the terms hereof), Buyer shall make the Secondary Deposit. Except for a Seller
default of this Agreement after expiration of any applicable cure period and the subsequent
termination of this Agreement by Buyer all in accordance with Section 12.2 hereof, the Deposit
shall be non-refundable to Buyer after the Due Diligence Deadline, but shall be applied against the
Purchase Price on the Closing Date.

          3.2 Remainder of Purchase Price. At Closing, Buyer shall pay to Seller an amount
equal to the difference between (a) the Purchase Price, and (b) the Deposit, subject to the
credits, prorations and adjustments set forth herein, in cash by federal reserve bank wire transfer
to such account and bank as Seller shall designate in writing to Buyer at or prior to Closing to be
confirmed received in Seller’s account on or before 2:00 p.m. Atlanta, Georgia time on the Closing
Date.

          3.3 Purchase Price Allocation. The Purchase Price and other relevant items shall be
allocated among the Real Property (which shall be further broken out between the cost for Land,
excluding improvements, and the cost for the Hotel building and other improvements) and Personal
Property for tax and financial accounting purposes in accordance with Exhibit A-1. Buyer
and Seller shall file, and shall cause their respective affiliates to file, all tax returns
(including amended returns and claims for refunds) and information reports in a manner consistent
with such Exhibit A-1.

     4. Buyer’s Due Diligence, Financing and Inspection Rights; Termination Right.

          4.1 Review of Property and Property Documents. Until Closing, and subject to the
terms of Paragraph 4.2, Seller shall provide Buyer and Buyer’s Representatives with access to the
Property and the Property Documents, wherever located, upon reasonable prior notice at reasonable
times during business hours, with the right and license to conduct Due

Purchase Agreement

Property: IC Buckhead, Atlanta GA

- 2 -

 

Diligence with respect to the Property. Buyer covenants and agrees that it will inspect the Hotels
at its sole cost and expense and will not allow any liens to attach against the Hotel as a result
of its Due Diligence. On written request from Seller, Buyer shall deliver promptly to Seller
copies of all Buyer’s Diligence Reports, but with no liability for the accuracy thereof and no
representation that Seller or any other party may rely thereon. Buyer acknowledges that the
Property Documents may not be complete in all respects and that Seller may not have complete
information concerning the Hotel and Buyer acknowledges that such information should not be relied
upon and should be verified to Buyer’s satisfaction during Due Diligence.

          4.2 Guidelines for Inspection Rights. Buyer’s rights to conduct Due Diligence shall
be subject to the following further requirements: (a) Due Diligence may only be preformed from 8:00
a.m. through 6:00 p.m. and must not interfere with the operation or management of the Hotel or
disturb the rights of guests or Tenants; (b) Buyer must provide Seller with at least twenty-four
(24) hours prior written notice of its intent to perform Due Diligence on the Property and Seller
shall have the right to have a representative of Seller present during any such entry upon the
Property by Buyer or Buyer’s Representatives; (c) Buyer shall not contact any Tenant, Hotel
contractor, Hotel guest, or Hotel Employee without Seller’s prior written consent, which shall not
be unreasonably withheld, conditional or delayed; (d) Seller or its designated representative shall
have the right to pre-approve, and be present during, any physical testing of the Property; (e)
Buyer shall immediately return the Property to the condition existing prior to any tests and
inspections in all material respects; (f) Due Diligence activities may not materially adversely
affect the appearance of the Hotel in any way; and (g) Buyer may not perform any activity which
bores, penetrates or damages the Property and may not conduct any invasive sampling, boring,
testing, or analysis of soils, surface water or groundwater at the Property without first having
obtained prior written approval of Seller, which may not be unreasonably withheld, conditioned or
delayed. Prior to such time as Buyer or any of Buyer’s Representatives enter the Property for any
purpose other than traditional business meetings or observational “walk throughs” of public areas
and rooms not involving testing or inspection, Buyer shall (i) obtain policies of general liability
insurance which insure Buyer and Buyer’s Representatives with liability insurance limits of not
less than $1,000,000 combined single limit for personal injury and property damage and name Seller,
and its affiliates, as additional insureds and which are with such insurance companies, provide
such coverages and carry such other limits as Seller shall reasonably require, and (ii) provide
Seller with certificates of insurance evidencing that Buyer has obtained the aforementioned
policies of insurance. Notwithstanding any provision in this Agreement to the contrary, except in
connection with the preparation of a so-called “Phase I” environmental report with respect to the
Property or the issuance of a standard “zoning and building code compliance letter”, to the extent
available, with respect to the Property, Buyer shall not contact any governmental official or
representative regarding hazardous materials on, or the environmental condition of, the Property,
or the status of compliance of the Property with zoning, building code or similar Laws, without
Seller’s prior written consent thereto, which consent shall not be unreasonably withheld or
delayed. In addition, if Seller’s consent is obtained by Buyer, Seller shall be entitled to
receive at least two (2) Business Days prior written notice of the intended contact and to have a
representative present when Buyer has any such contact with any governmental official or
representative.

Purchase Agreement

Property: IC Buckhead, Atlanta GA

- 3 -

 

          4.3 Title and Survey Objections. Seller shall deliver to Buyer a copy of Seller’s
most recent survey of the Property, if any, in Seller’s possession, and either (i) Seller’s title
insurance policy in Seller’s possession, or (ii) a Title Commitment dated within 90 days of the
Effective Date.

          A. Title and Survey Objections. Buyer shall have until ten (10) days prior to the Due
Diligence Deadline to notify Seller in writing of any Title Objections; any such notice shall be
accompanied by the Title Commitment and Survey and any other materials which evidence or disclose
such objections to title. If Buyer fails to notify Seller of any Title Objections on or before
such date, then, notwithstanding any other provisions set forth herein, such failure to notify
Seller shall constitute a waiver of such right to object to such matters existing as of the
Effective Date. Seller shall notify Buyer within five (5) days of its receipt of such notice if
Seller has elected to Remove any such Title Objections. If Seller fails to respond within such
timeframe, Seller shall be deemed to have declined to remove such Title Objections (other than
Required Removal Items). If Seller does not covenant to Buyer that Seller will Remove the Title
Objections prior to Closing, Buyer shall have until the Due Diligence Deadline to elect in writing,
either to (a) terminate this Agreement, in which case the Deposit shall be returned to Buyer, and
the parties shall have no further rights or obligations hereunder, except for those which expressly
survive any such termination, or (b) waive its Title Objections (other than Required Removal Items)
and proceed with the transaction pursuant to the remaining terms and conditions of this Agreement.
If Buyer fails to give Seller notice of its election by such time, it shall be deemed to have
elected the option contained in clause (b) above. Any such Title Objection so waived (or deemed
waived) by Buyer shall be deemed to constitute a Permitted Title Exception and the Closing shall
occur as herein provided without any reduction of or credit against the Purchase Price.

          B. Cure of Title Matters. At Closing, if this Agreement is not Terminated as
permitted herein, Seller shall Remove or cause to be Removed any Title Objections to the extent
(and only to the extent) that the same constitute Required Removal Items or Seller has agreed to
Remove a Title Objection pursuant to subsection (A) above.

          4.4 Termination Right. If Buyer, in its sole and absolute discretion, determines not
to proceed with the Transaction or is not satisfied with any matters relating to the Property,
Buyer may Terminate this Agreement by written notice to Seller at any time prior to the Due
Diligence Deadline and Buyer shall be entitled to the return of the Deposit. If, at or prior to
the Due Diligence Deadline, Buyer has not delivered to Seller a termination notice as aforesaid,
then Buyer shall be deemed to have accepted the condition of the Property (subject to Seller’s
compliance with the representations, warranties and covenants of this Agreement, and the conditions
set forth in Paragraph 10) and shall thereafter have no right to Terminate this Agreement on
account of such Due Diligence termination right under this Paragraph 4.4. If, after the Due
Diligence Deadline, Buyer conducts further Due Diligence, Buyer acknowledges and agrees that Buyer
shall have no further right to terminate this Agreement with respect to such further Due Diligence
or otherwise in accordance with this
Paragraph 4.4 after the Due Diligence Deadline. Buyer acknowledges that, except as
specifically set forth herein to the contrary, after the Due Diligence Deadline, the Deposit shall
be non-refundable to Buyer.

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          4.5 As-Is, Where-Is, With All Faults Sale. Because Buyer is to conduct such Due
Diligence as Buyer deems necessary or appropriate prior to the Due Diligence Deadline, Buyer
acknowledges that it shall independently confirm to its satisfaction all information that it
considers material to its purchase of the Property or the Transaction, and the Property shall be
sold, and Buyer shall accept possession of the Property on the Closing Date, “AS IS, WHERE IS, WITH
ALL FAULTS”, with no right of setoff or reduction in the Purchase Price. Without limiting the
foregoing, except for Seller’s Warranties, none of the Seller Parties have or shall be deemed to
have made any verbal or written representations, warranties, promises or guarantees (whether
express, implied, statutory or otherwise) to Buyer with respect to the Property, any matter set
forth, contained or addressed in the Documents (including, but not limited to, the accuracy and
completeness thereof) or the results of Buyer’s Due Diligence. Notwithstanding the foregoing, such
acknowledgment is not intended to, and shall not be construed to affect or impair any rights or
remedies that Buyer may have against Seller as a result of a breach of any of Seller’s Warranties.
To evidence the foregoing, Buyer shall deliver to Seller at the Closing, an As Is Agreement as
required by Paragraph 6.3.

     5. Seller’s Covenants. Seller agrees that between the Effective Date and the Closing
Date:

          5.1 No Alteration of Title. Seller shall not transfer or further alter or encumber in
any way Seller’s title to the Real Property as it exists as of the Effective Date without written
notice to, and the prior written consent of, Buyer. If Buyer fails to object in writing to any
such proposed instrument within three (3) Business Days after receipt of the aforementioned notice,
Buyer shall be deemed to have approved the proposed instrument. Buyer’s consent shall not be
unreasonably withheld or delayed with respect to any such instrument.

          5.2 New Leases and Modifications to Existing Leases. If Seller desires to (i) enter
into any new Lease, (ii) cancel, modify, amend, extend or renew any existing Lease, (iii) consent
to any assignment or sublease in connection with any Lease, or (iv) accept any prepayment of rent
thereunder (more than thirty (30) days in advance), Seller shall deliver to Buyer written notice of
such action, which notice shall contain information regarding the proposed action that Seller
believes is reasonably necessary to enable Buyer to make informed decisions with respect to the
advisability of the proposed action. Seller shall not be entitled to take such action without
Buyer’s prior written consent, which consent will not be unreasonably withheld, conditioned or
delayed (and if no response by Buyer is made within three (3) Business Days after Buyer’s receipt
of such request and all documents related thereto, such consent shall be deemed to have been
granted). If Buyer refuses to consent to the proposed action, Seller nevertheless shall be
entitled to execute a short-term Lease that may be terminated, without penalty, upon thirty (30)
days (or less) written notice from the owner of the Property. Seller shall promptly provide Buyer
with true, correct and complete copies of any Lease, modification, or amendment entered into by
Seller. Notwithstanding any provision of this Agreement to the contrary, without any
requirement for notice or consent from Buyer, Seller may, but shall not be obligated to, pursue any
of its legal rights for contract enforcement (including, but not limited to, commencing a
dispossessory action) against any Tenant.

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          5.3 Contracts. If Seller desires to (i) enter into any new Contracts, (ii) cancel,
modify, amend, extend or renew any existing Contracts, or (iii) waive any default under, accept any
surrender of, any Contracts, Seller shall deliver to Buyer written notice of such action, which
notice shall contain information regarding the proposed action that Seller believes is reasonably
necessary to enable Buyer to make informed decisions with respect to the advisability of the
proposed action. Except for Contracts that can be terminated, without penalty, upon thirty (30)
days (or less) written notice from the owner of the Property, Seller shall not be entitled to take
such action without Buyer’s prior written consent, which consent will not be unreasonably withheld,
conditioned or delayed (and if no response by Buyer is made within three (3) Business Days after
Buyer’s receipt of such request and all documents related thereto, such consent shall be deemed to
have been granted); upon delivery of such written consent, such Contract or modification thereof
shall thereupon be included within the definition of “Contracts” set forth herein. Seller shall
promptly provide Buyer with true, correct and complete copies of any Contract, modification, or
amendment entered into by Seller. Notwithstanding any provision of this Agreement to the contrary,
without any requirement for notice or consent from Buyer, Seller may, but shall not be obligated
to, pursue any of its legal rights to enforce any Contract.

          5.4 Status of Property. Between the Effective Date and Closing, Seller shall maintain
and keep the Property in a manner consistent with Seller’s past practices with respect to the
Property. Buyer hereby agrees that Buyer shall accept the Property subject to, and Seller shall
have no obligation to cure, (a) any violations of Laws, or (b) any physical conditions that would
give rise to violations of Laws, whether the same now exist or arise prior to Closing.

          5.5 Tax Appeals. Buyer acknowledges that it has been informed that Seller is in the
process of contesting its 2009 real estate taxes for the Property and may contest its 2010 taxes as
well. If Seller is successful in obtaining a lower tax assessment for the Property, all credits,
refunds or other compensation related to (a) the prorated portion of the 2010 tax year ending on
the Closing Date, and (b) the 2009 and prior tax years (collectively, the “Seller Tax
Period”) shall belong to Seller. Buyer shall promptly pay Seller for (i) the amount of any
refund Buyer receives related to the Seller Tax Period and (ii) the cash equivalent of any
non-monetary benefit or other compensation Buyer receives related to the Seller Tax Period,
including, but not limited to, tax credits applied to subsequent tax years, whereupon Buyer will be
entitled to receive the benefit of such tax credits. Seller shall not be entitled to any
compensation related to a lower tax assessment for the 2011 and subsequent tax years. Buyer agrees
to take such other actions as may be required to fulfill the intent of the parties hereunder.
Seller shall have the right to continue and to control the progress of and to make all decisions
with respect to any contest of the real estate taxes and personal property taxes for the Property
due and payable during the Closing Tax Year and all prior Tax Years. Seller shall keep Buyer
apprised of any contest of the real estate taxes and personal property taxes for the Property due
and payable during the Closing Tax Year and all prior Tax Years. Buyer shall have the right to
control the progress of and to make all decisions with respect to any tax contest of the real
estate taxes and personal property taxes for the Property due and payable during all
Tax Years subsequent to the Closing Tax Year. All real estate and personal property tax refunds
and credits received after Closing with respect to the Property shall be applied in the following
order of priority: first, to pay the costs and expenses (including reasonable attorneys’ fees,
expenses and disbursements and fees contingent on the amount of recovery) incurred in connection
with obtaining such tax refund or credit;

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second, to pay any amounts due to any past or present tenant of the Property as a result of such
tax refund or credit to the extent required pursuant to the terms of the Leases; and third,
apportioned between Buyer and Seller as follows: (a) any refunds or credits attributable to the
Closing Tax Year shall be apportioned between Buyer and Seller in the manner provided in Paragraph
7.1; (b) any refunds or credits attributable to any period prior to the Closing Tax Year, shall be
paid to Seller; and (c) any refunds or credits attributable to any period after the Closing Tax
Year shall be paid to Buyer. Buyer and Seller agree to cooperate with each other and to execute
any and all documents reasonably requested in furtherance of the foregoing. The provisions of
Section shall survive the Closing.

          5.6 Personal Property. Seller shall not remove any of the Property, including
Personal Property, from the Real Property nor use any of the Personal Property prior to the Closing
Date except such use thereof as is normal and customary in the operation and maintenance of the
Property. Seller covenants that items of Personal Property which consist of common area furniture
and furnishings, common area artwork and supplies and maintenance items shall be maintained at
Seller’s customary level of quality and will be available and conveyed to Buyer on the Closing
Date.

          5.7 Intellectual Property. On or before the Closing, Buyer shall be responsible for
obtaining authorization or consent from third party lessors or licensors for the assignment or
other transfer to Buyer of such computer hardware, software or system(s) leases or licenses as are
integral to the operation of the Property as of the Effective Date. Upon Buyer’s reasonable
request, Seller shall in good faith, but without cost or obligation to itself, exercise reasonable
efforts to assist Buyer in Buyer’s efforts to obtain such authorization or consent from third party
lessors or licensors. Seller will not be required to pay any sums or otherwise incur any
obligation in connection with any such requested assignment or transfer. Buyer shall be solely
responsible for any early termination, transfer, re-licensing or other fees of any nature payable
in connection any such assignment or transfer. Buyer shall indemnify and hold harmless Seller from
and against any loss, liability, damage, cost or expense, including reasonable attorneys’ fees,
arising from or related to the early termination or breach of any such leases or licenses. In the
absence of an express assignment of any such lease or license, the Buyer acknowledges that no such
lease or license shall be transferred to Buyer at Closing. Buyer also acknowledges that Seller and
the Seller Parties are retaining all right, title and interest in and to all their respective
intellectual property rights that may be used within or comprise any part of the Property except as
may be specifically licensed to Buyer pursuant to Exhibit Q.

          5.8 Liquor License. The Manager, or an affiliate, will continue to maintain the
liquor license for the Hotel after Closing and/or will apply for a new liquor license while
maintaining the current liquor license. Buyer agrees to reasonably cooperate with Seller and
Manager in any filings or other requirements necessary to maintain the liquor license after the
change of ownership of the Hotel. Buyer acknowledges that Buyer shall be liable for, and shall
conduct in accordance with applicable law, all liquor operations at the Property on and after the
Closing Date in accordance with the Management Agreement.

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          5.9 Continued Marketing of the Hotel for Sale. Seller shall not solicit, negotiate,
execute or otherwise pursue offers for the purchase and sale of the Property with any party, other
than Buyer, during the term of this agreement.

          5.10 Operation of Property. Seller covenants, that between the Effective Date hereof
and Closing, it will (a) operate the Hotel only in the usual, regular and ordinary manner
consistent with the Seller’s prior practice, (b) maintain its books of account and records in the
usual, regular and ordinary manner, in accordance with sound accounting principles applied on a
basis consistent with the basis used in keeping its books in prior years and (c) use all reasonable
efforts to preserve intact its present business organization, keep available the services of its
present officers, partners and employees and preserve its relationships with suppliers and others
having business dealings. Seller shall continue to use its reasonable efforts to take guest room
reservations and to book functions and meetings and otherwise to promote the business of the Hotel
in generally the same manner as Seller did prior to the execution of this Agreement. All advance
room bookings and reservations and all meetings and function bookings shall continue to be booked
in accordance with Seller’s current and customary practices. Except as otherwise permitted hereby,
from the Effective Date until Closing, Seller shall not take any action or fail to take action the
result of which (i) would have a material adverse effect on the Hotel or the Purchaser’s ability to
continue the operation thereof after Closing in substantially the same manner as presently
conducted, or (ii) would cause any of the representations and warranties contained in Section 8 to
be untrue as of Closing.

     6. Closing. The time and place of Closing shall be held at 9:00 a.m. local Atlanta,
Georgia time on the Closing Deadline at or through the offices of Seller’s attorneys.

          6.1 Closing Mechanics. If agreed to by both parties, Buyer and Seller shall conduct
an escrow-style closing through the Closing Agent so that it will not be necessary for any party to
attend the Closing (Buyer and Seller shall have pre-Closings to finalize and sign all documents not
later than the day prior to Closing, and deliver such items to the Closing Agent). Upon Closing,
Buyer shall deliver to Seller the Purchase Price and the other items required of Buyer as elsewhere
set forth herein, and Seller shall deliver to Buyer possession of the Property, subject only to the
Permitted Title Exceptions, and the other items required of Seller as elsewhere set forth herein.

          6.2 Seller’s Deliveries. At Closing, Seller shall deliver or cause to be delivered to
Buyer the following:

          A. Deed/Assignment of Master Lease. A Limited Warranty Deed in the form of
Exhibit B or an Assignment and Assumption of Lease in the form of Exhibit B-1, if
applicable.

          B. Bill of Sale. A Bill of Sale in the form of Exhibit C.

          C. Assignment of Leases. An Assignment and Assumption of Leases in the form of
Exhibit D.

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          D. Assignment of Contracts, Warranties and Other Interests. An Assignment and
Assumption of Contracts, Warranties and Other Interests in the form of Exhibit E.

          E. Notices of Assignment and Assumption. If applicable, a written notice in the form
of Exhibit F-1, a copy of which shall be sent to each Tenant under a Lease (the “Tenant
Notice”), and a written notice in the form of Exhibit F-2 to each party to a Contract
(the “Contract Notice”).

          F. Withholding and Tax Certificates. A certificate in the form of Exhibit G
with respect to Section 1445 of the Internal Revenue Code stating whether or not Seller is a
foreign person as defined in said Section 1445 and applicable regulations thereunder.

          G. Affidavit of Title/Gap Indemnity. An Affidavit of Title with respect to liens and
title matters in substantially the form of Exhibit H.

          H. Closing Statement. A Closing Statement Agreement in the form of Exhibit I
attached hereto and incorporated herein by this reference. Seller and Buyer shall authorize and
instruct the Closing Agent to file, as the “reporting person,” Internal Revenue Service Form 1099-B
(“Proceeds from Real Estate, Broker, and Barter Exchange Transactions”), if and as required by
Section 6045(d) of the Code.

          I. Evidence of Authority. Evidence that Seller has the requisite power and authority
to execute and deliver, and perform under, this Agreement and all Closing Documents.

          J. Reaffirmation. A reaffirmation of the representations, warranties and covenants
set forth in Paragraph 8 hereof in the form of Exhibit K and made a part hereof.

          K. Transfer Tax Declaration. If applicable, a duly completed real estate transfer tax
declaration or return.

          L. Delivery of Keys and Property Documents. The Property Documents; all keys to the
Property or any portion thereof will be retained by the Manager on behalf of Buyer, pursuant to the
Management Agreement.

          M. Tenant Estoppels. Seller shall request that each Tenant deliver to Seller a Tenant
Estoppel. As a condition precedent to Buyer’s obligation to consummate the Transaction, at or
prior to Closing Buyer must receive Tenant Estoppels or Seller Estoppels for all Leases.
Notwithstanding the foregoing, Seller shall
not have any obligation to incur expenditures in order to obtain such Tenant Estoppels other than
expenditures required in order to comply with the terms of the Leases. To the extent that any such
estoppel certificate is received by Buyer after the Due Diligence Deadline, such estoppel
certificate shall not disclose any information or facts that differ in any material respect from
the information or facts that Buyer knows about or is deemed to know about prior to the Due
Diligence Deadline. Seller shall deliver to Buyer at Closing, Seller Estoppels with respect to all
Leases for which it does not deliver a Tenant Estoppel.

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          N. Management Agreement. The Management Agreement attached hereto as
Exhibit P.

          O. Transfer of Bonds. Four (4) duly executed counterparts of the Transfer of Bonds
in the form attached hereto as Exhibit U (the “Transfer of Bonds”), whereby Six Continents
Hotels, Inc. shall transfer the Bond to Buyer. The newly issued bond shall be in the form attached
hereto as Exhibit U-1.

          P. Assignment and Assumption and Release Agreement. In the event an Assignment and
Assumption of Lease is delivered, four (4) duly executed counterparts of the Assignment and
Assumption and Release Agreement in the form attached hereto as Exhibit L-1.

          Q. Georgia Withholding Certificate. A Seller’s Affidavit of Residence in the form of
Exhibit X attached hereto and incorporated herein by this reference.

          R. Affidavit Regarding Brokers. An Affidavit Regarding Brokers in the form of
Exhibit W-1 attached hereto and incorporated herein by this reference.

          S. Broker Lien Waiver. A Broker Lien Waiver in the form of Exhibit W-3
attached hereto and incorporated herein by this reference signed by Seller’s Broker.

          T. Other Instruments. Such other instruments or documents as may be reasonably
requested by Buyer or the Title Company, or reasonably necessary, to effect or carry out the
purposes of this Agreement, subject to Seller’s prior approval thereof, which approval shall not be
unreasonably withheld or delayed.

          6.3 Buyer’s Deliveries. At the Closing, Buyer shall deliver or cause to be delivered
to Seller the following:

          A. Net Purchase Price. The net Purchase Price due at Closing under this Agreement.

          B. As Is Agreement. The As Is Agreement of Buyer in the form of Exhibit L
attached hereto and incorporated herein by this reference.

          C. Closing Document Counterparts. Executed counterparts of any of the Closing
Documents described in Paragraph 6.2 which are to be signed by Buyer.

          D. Investment Letter. Four (4) duly executed counterparts of the Investment Letter in
the form and substance attached hereto as Exhibit V.

          E. Certificate Designating Authorized Lessee Representatives. In the event an
Assignment and Assumption of Lease is delivered, a duly authorized Certificate Designating
Authorized Lessee Representatives in the form attached hereto as Exhibit B-2.

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          F. Affidavit Regarding Brokers. An Affidavit Regarding Brokers in the form of
Exhibit W-2 attached hereto and incorporated herein by this reference.

          G. Broker Lien Waiver. A Broker Lien Waiver in the form of Exhibit W-3
attached hereto and incorporated herein by this reference signed by Buyer’s Broker.

          H. Initial Working Capital Deposit & Management Agreement Conditions. On the
Closing Date, Buyer shall deposit $422,000.00 of Initial Working Capital (as defined in the
Management Agreement) into the Hotel accounts and shall comply with all other conditions and
requirements of the Management Agreement (including without limitation, all insurance
requirements).

          I. Other Instruments. Such other funds, instruments or documents as may be reasonably
requested by Seller or the Title Company, or reasonably necessary, to effect or carry out the
purposes of this Agreement, subject to Buyer’s prior approval thereof, which approval shall not be
unreasonably withheld or delayed.

          6.4 Tax-Deferred Exchange of Property. Seller desires, and Buyer is willing, to
effectuate the sale of the Real Property by means of an exchange of “like-kind” property which will
qualify as such under § 1031 of the Internal Revenue Code and all regulations issued thereunder,
provided Buyer incurs no additional expenses or liability. In such event, notwithstanding any
provisions hereof to the contrary, Seller shall have the right to elect to assign all of Seller’s
rights and obligations under this Agreement to a third party intermediary as part of and in
furtherance of such a tax deferred exchange of properties, which assignment may reserve the right
of Seller to directly transfer title to the Real Property to Buyer in order to eliminate
duplicative documentation expenses and transfer taxes. Buyer further agrees to assist and
cooperate in such exchange and to execute any and all documents as are reasonably necessary in
connection with such exchange, provided that such assistance and cooperation is at no cost, expense
or liability to Buyer. It is understood and agreed that as part of such exchange, Buyer shall not
be obligated to acquire title to or convey any property (other than the Real Property) as part of
such exchange. This Agreement is neither subject to nor contingent upon Seller’s ability to
effectuate a like-kind exchange. In the event any exchange contemplated by Seller should fail to
occur, for whatever reason, the sale of the Property shall none the less be consummated as provided
herein.

     7. Prorations, Credits and Closing Costs.

          7.1 Proration Items. Except as otherwise noted, in each such proration set forth
below, the portion thereof allocable to periods beginning as of the Closing Proration Time shall be
credited to Buyer, or charged to Buyer, as
applicable, and the portion thereof allocable to periods ending as of the Closing Proration Time
shall be credited to Seller, or charged to Seller, as applicable, all of which prorations shall be
made at Closing or, in the case of allocations to be made after Closing, upon receipt of such
payments or payment of such expenses. The following items shall be prorated between Buyer and
Seller or credited to Buyer or Seller:

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          A. Real Estate Taxes and Assessments. All ad valorem real estate and personal
property taxes, and any sales taxes with respect to Rental Payments, with respect to the Property
for the Closing Tax Year (regardless of the year for which such taxes are assessed) shall be
prorated as of the Closing Proration Time. Seller shall pay all installments of special
assessments due and payable prior to the Closing Date and Buyer shall pay all installments of
special assessments due and payable on and after the Closing Date; provided,
however, that Seller shall not be required by the foregoing to pay any installments of
special assessments which have not been confirmed or which relate to projects that have not been
completed on the Effective Date. If tax bills for the Closing Tax Year are not available on the
Closing Date, taxes shall be prorated at Closing based upon the tax bills for the previous Tax
Year, or, if available, based upon the current assessed valuation and current millage rates, and in
such event Seller and Buyer shall reprorate the taxes as actual or final tax bills for the current
year are available.

          B. Hotel Revenues.

     (i) Guest Ledger Receivables. Seller shall retain all rights to all Guest
Ledger Receivables for all room nights up to and including the room night immediately prior
to the night when the Closing Proration Time occurs, and Buyer shall be entitled to the
amounts of Guest Ledger Receivables for the room nights after the Closing Proration Time.
Seller and Buyer shall each receive a credit of fifty percent (50%) of Guest Ledger
Receivables for the room night when the Closing Proration Time occurs. Seller shall receive
the income from all restaurant and bar facilities located on the Real Property through the
Closing Proration Time and Buyer shall receive such income thereafter. Notwithstanding the
foregoing, after Closing, Manager shall be entitled to continue to collect all Guest Ledger
Receivables owed to Seller hereunder and immediately disburse such funds to Seller. Any
Guest Ledger Receivables amounts received by Manager, that are not designated as payment for
any specific time period shall be evenly divided between Buyer and Seller with one half of
such amount deemed to apply to pay the Guest Ledger Receivables that accrued after the
Closing Proration Time for the benefit of Buyer and one half of such amount deemed to apply
to pay Guest Ledger Receivables that accrued prior to the Closing Proration Time for the
benefit of Seller. After Buyer or Seller, as applicable, has received full credit for the
Accounts Receivables owed to such party, the remaining portion of such Accounts Receivable
shall be credited to the other party.

     (ii) Booking Deposits. Seller shall retain all advanced payments and deposits
for all Bookings, and Buyer shall receive a credit at Closing for advance payments and
deposits, if any, under Bookings to the extent the Bookings relate to a period after the
Closing Proration Time. Buyer shall assume and honor for its account all Bookings relating
to dates after the Closing Proration Time provided that Seller provides a written account to
Buyer of all such Bookings at the Closing.

     (iii) Vending Machines. Vending machine and coin-operated amusement game
monies will be removed by Seller as of the Closing Proration Time for the benefit of Seller.

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     (iv) Working Capital, Hotel Accounts & Petty Cash. Seller shall receive a
credit at Closing for all working capital and petty cash funds as well as any amounts in the
Hotel accounts (if not otherwise distributed by Seller prior to Closing) and cash in the
Hotel’s house banks at 100% of face value at the Closing Proration Time.

     (v) Accounts Receivable. Seller shall retain all rights to all Accounts
Receivable accrued through the Closing Proration Time and Buyer will be entitled to all
Accounts Receivables that accrue after the Closing Proration Time. Notwithstanding anything
herein to the contrary, Manager shall be entitled to continue to collect all Accounts
Receivables owed to Seller hereunder and immediately disburse such funds to Seller. Any
Accounts Receivable amounts received by Manager that are not designated as payment for any
specific time period shall be evenly divided between Buyer and Seller with one half of such
amount deemed to apply to pay the Accounts Receivables that accrued after the Closing
Proration Time for the benefit Buyer and one half of such amount deemed to apply to pay the
Accounts Receivables that accrued prior to the Closing Proration Time for the benefit of
Seller. After Buyer or Seller, as applicable, has received full credit for the Accounts
Receivables owed to such party, the remaining portion of such Accounts Receivable shall be
credited to the other party.

          C. Rental Payments. All Rental Payments received by Seller prior to Closing shall be
prorated as of the Closing Proration Time. All rent and other charges payable pursuant to any
ground lease affecting the Property shall be prorated as of the Closing Proration Time. Any Rental
Payments received after Closing by Seller or its agents shall be promptly endorsed to Buyer by the
payee thereof and delivered to Buyer; if any of such Rental Payments belong also in part to Seller,
upon such endorsement, deposit and receipt of collected funds, the part thereof belonging to Seller
shall be promptly paid to Seller and the balance shall be retained by Buyer.

     (i) Percentage Rents. To the extent percentage rents apply to any of the
Leases, with respect to percentage rent due from any Tenant, notwithstanding the foregoing,
Buyer and Seller agree that at Closing estimated percentage rent shall be prorated for the
calendar year in which the Closing occurs (even though the same may not have been collected
as of the Closing) based upon the amount of percentage rent due from such Tenant for the
calendar year immediately prior to the calendar year in which the Closing occurs. For
proration of percentage rents, the amount attributable to the period prior to the Closing
Proration Time shall be equal to (a) the aggregate amount of such percentage rents actually
collected for the calendar year in which the Closing occurs multiplied by (b) a fraction,
the numerator of which shall be the number of days prior to the Closing Proration Time that
the applicable Tenant leases space at the Property during the calendar year in which the
Closing occurs and the denominator of which shall be 365.

          D. Security Deposits/Advance Rent. Buyer shall receive a credit against the Purchase
Price at Closing for all cash Tenant Deposits then outstanding under the Leases. To the extent
applicable, with respect to any Tenant Deposits which are letters of credit, Seller shall, if the
same may be assigned or quitclaimed by Seller, deliver to Buyer at the Closing such original

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letters of credit, properly endorsed and acknowledged by the issuer thereof in the name of Buyer as
the named beneficiary thereunder; to the extent such is not available at Closing, Seller shall: (i)
deliver to Buyer at the Closing such original letters of credit, (ii) execute and deliver such
other instruments as the issuers of such letters of credit shall reasonably require, including, as
applicable, pending acceptance of the transfer of such letter of credit, acting as the indemnified
agent of Buyer in connection with any draws thereunder, and (iii) cooperate with Buyer to change
the named beneficiary under such letters of credit to Buyer so long as Seller does not incur any
additional liability or expense in connection therewith.

          E. Utility Expenses and Deposits. Water, sewer, gas, waste fee, fire protection,
electric and all other utility expenses and payments due or made with respect to the Property shall
be prorated as of the Closing Proration Time (except for those utility charges and operating
expenses payable by tenants in accordance with the Leases), based upon the utility bills for the
preceding period, or, at Seller’s option, the meters with respect thereto read as of Closing.
Seller shall assign and/or transfer all utility deposits, bonds, letters of credit or other
security to Buyer and receive a credit therefor at Closing; Buyer shall notify all utilities,
governmental agencies, suppliers and others providing services to the Real Property of the
prospective change in ownership and operation of the Hotel. Notwithstanding the foregoing, at
Seller’s election, any utility deposit, bond, letter of credit or other security may be released
directly to Seller.

          F. Inventories and Hotel Consumables. Seller shall sell to Buyer, and Buyer shall
purchase from Seller (the amounts of which are included in the Purchase Price for the Property),
all of the food and beverages (including alcoholic and non-alcoholic to the extent permitted by
Law), engineering, maintenance, and housekeeping supplies (including soap and matches), stationery,
printing and other supplies of all kinds (collectively, the “Consumables”) as well as all
other Hotel Inventories owned by Seller, located on the Property and used in connection with the
ownership, use, operation and maintenance of the Hotel as of the Closing Date.

          G. Other Operating Expenses. All other operating expenses of the Property, including
payments due or owing under any Contracts assumed by Buyer at Closing and any fees as to which
periodic payments are made for applicable licenses and permits, if any, shall be prorated as of the
Closing Proration Time, except that no insurance policies shall be assumed as Contracts and no
insurance premiums shall be prorated, and Seller shall be entitled to any refunds of any premiums
for such policies. Seller shall receive a credit at Closing for all pre-paid operating expenses
applicable to periods after the Closing Proration Time. Seller shall assign and/or transfer all
Contract deposits or other security, if any, to Buyer and receive a credit therefor at Closing;
Buyer shall notify all such Contract parties of the prospective change in ownership and operation
of the Hotel.

          H. Reimbursable Lease Expenses. At Closing, Buyer shall reimburse Seller for any and
all Reimbursable Lease Expenses to the extent that the same have been paid by Seller prior to
Closing. In addition, at Closing, Buyer shall assume Seller’s obligations to pay, when due
(whether on a stated due date
or accelerated) any Reimbursable Lease Expenses unpaid as of the Closing, and Buyer hereby agrees
to indemnify and hold Seller harmless from

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and against any and all Liabilities (including reasonable attorneys’ fees, expenses and
disbursements) with respect to such Reimbursable Lease Expenses which remain unpaid for any reason
at the time of Closing, which obligations of Buyer shall survive the Closing and shall not be
merged therein. Each party shall make available to the other all records, bills, vouchers and
other data in such party’s control verifying Reimbursable Lease Expenses and the payment thereof.

          7.2 Closing Statement and Schedules. On or before five (5) days prior to the Closing
Date, Seller shall deliver to Buyer a current schedule of the items and amounts to be prorated or
credited as set forth in this Paragraph 7, and a draft closing statement for the Transaction.

          7.3 Reproration after Closing. The provisions of Paragraph 7 shall survive the
Closing. If the actual amounts of any of the aforesaid proration items are unavailable as of the
Closing Date, then such proration shall be made on the basis of an amount reasonably estimated by
Buyer and Seller at Closing and Buyer and Seller shall thereupon reprorate such items at such times
as the exact amounts for such proration items become available (but such prorations will be made
within forty-five (45) days after the Closing Date or upon such later date as the exact amounts for
such proration become available); provided however, that no reproration adjustment shall be made if
the net amount due is $1,000 or less, and provided that any request is delivered to the party from
whom payment is requested on or before one (1) year after Closing. In order to enable Seller to
determine whether any such delayed adjustment is necessary, Buyer shall authorize Manager to
provide to Seller current operating and financial statements for the Property no later than one (1)
month after Closing.

          7.4 Seller’s Closing Costs. Seller shall pay the following: (a) the fees and expenses
of Seller’s attorneys, (b) the commission due any Broker retained by Seller, (c) the Georgia real
estate transfer taxes imposed by virtue of the Transaction, and (d) one-half of all escrow agent
fees (if any are charged in connection with this Transaction).

          7.5 Buyer’s Closing Costs. Buyer shall pay the following: (a) the costs of Buyer’s
Due Diligence, (b) the fees and expenses of Buyer’s attorneys, (c) all lenders’ fees related to
any financing to be obtained by Buyer; (d) one-half of all escrow agent fees (if any are charged in
connection with this Transaction), (e) the costs, expenses and premiums for the Title Commitment
and Title Policy (including all examinations and reports in connection therewith, and all
endorsements and reinsurance required by Buyer), (f) the costs of the Survey, and (g) all recording
charges due on recordation of any Closing Documents and (h) all costs incurred in connection with
the transfer and/or assignment of the Bonds, Master Lease, and Guaranty.

     8. Representations and Warranties.

          8.1 Seller’s Representations and Warranties. Seller, as of the date of the execution
of this Agreement by Seller, represents and warrants to Buyer, and covenants with Buyer, subject to
the matters on the Representation Exception Schedule, as follows:

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          A. Organization, Power and Authority. Seller is duly organized, validly existing and
in good standing under the Laws of the State of its organization or incorporation; is, to the
extent required by Law, duly qualified to do business in the State in which the Property is
located; and has all necessary power to execute and deliver this Agreement and perform all its
obligations hereunder. Seller has the full power and authority to enter into and perform this
Agreement and the execution, delivery and performance of this Agreement by such parties (i) has
been duly and validly authorized by all necessary action on the part of such parties, (ii) does not
conflict with or result in a violation of the organizational documents of such parties (including,
as applicable, its articles of incorporation, charter or by-laws, its partnership agreement or its
operating agreement), or any judgment, order or decree of any court or arbiter in any proceeding to
which any such party is a party, and (iii) except as to the ROFO Agreement and the Bond Documents,
does not conflict with or constitute a material breach of, or constitute a material default under,
any contract, agreement or other instrument by which any such party is bound or to which it is a
party.

          B. Title to Real and Personal Property. Seller has not entered into any currently
effective agreement to sell or dispose of all or any portion of its interest in and to the Real
Property. Except as to Personal Property leased to Seller pursuant to equipment leases or similar
agreements, Seller has legal title to the Personal Property to be transferred to Buyer and the
Personal Property to be transferred to Buyer is free and clear of liens, security interests and
other encumbrances.

          C. Leases.

     (i) Tenants. As of the Effective Date, the only tenants under leases at the
Property are the tenants listed in Exhibit M attached hereto and incorporated herein
by this reference; provided however, Seller does not represent or warrant that any
particular Lease or Leases will be in force or effect on the Closing Date or that the
Tenants will have performed their obligations thereunder.

     (ii) Lease Defaults. Except for defaults cured on or before the date hereof,
Seller has neither (1) received any written notice from any tenant of the Property asserting
or alleging that Seller is in default under such tenant’s Lease, nor (2) sent to any tenant
of the Property any written notice alleging or asserting that such tenant is in default
under such tenant’s Lease.

     (iii) Title. No Rents or Leases have been assigned, transferred or
hypothecated by Seller, except by virtue of mortgage loan instruments which shall be paid in
full by Seller at or prior to Closing, and except as set forth in the list of Contracts
attached hereto with respect to any surviving leasing commission agreements with respect to
the Property.

     (iv) Leases. Seller has made available to Buyer true and correct copies of all
of the Leases.

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          D. Contracts. Subject to the assignment provisions in Section 8.6(B), except for (i)
the Contracts listed in Exhibit N attached hereto, (ii) the Leases, and (iii) the Permitted
Title Exceptions, there are no contracts, subcontracts or agreements affecting the Property that
will be binding upon Buyer after the Closing. Seller has not received any written notice of
default from any parties to the Contracts that has not been cured by Seller on or before the date
hereof. Seller has made available to Buyer true and correct copies of all of the Contracts.

          E. Litigation Proceedings. Except as disclosed on Exhibit J, there is no
current or pending litigation against Seller (including, but not limited to, condemnation
proceedings against the Property) of which Seller has received written notice which may affect the
Property in any manner. No petition has been filed by Seller, nor has Seller received written
notice of any petition filed against Seller, under the Federal Bankruptcy Code or any similar state
or federal Law.

          F. Bond Documents. Except for defaults cured on or before the date hereof, Seller has
not received any written notice under any of the following documents asserting or alleging that
Seller is in default under such document: (i) the Master Lease, (ii) that certain Deed to Secure
Debt and Security Agreement dated December 1, 2002 (the “Security Deed”), by the
Development Authority in favor of U.S. Bank national association (as successor to SunTrust Bank),
as trustee (the “Trustee”), (iii) that certain Bond Purchase Agreement dated December 1,
2002, by and between the Development Authority and Six Continents Hotels, Inc., a Delaware
corporation (the “Bond Agreement”), (iv) that certain Guaranty Agreement dated December 1,
2002, by Seller in favor of the Trustee (the “Guaranty”), (v) that certain Taxable Economic
Development Revenue Bond (IHC Buckhead, LLC Project), Series 2002 issued by the Development
Authority in the principal amount of $105,000,000.00 (the “Bond”), (vi) that certain
Documents Escrow Agreement dated December 1, 2002, by and between Development Authority, Seller and
Trustee (the “Documents Escrow Agreement”), and (vii) that certain Bond Resolution adopted
by the Development Authority on December 19, 2002 (the “Bond Resolution”, and together with
the Master Lease, Security Deed, Bond Agreement, Guaranty, the Bond, and the Documents Escrow
Agreement, collectively, the “Bond Documents”). Seller has made available to Buyer true
and correct copies of all of the Bond Documents. Seller has paid the Development Authority any and
all fees and expenses that are currently due and payable under the Bond Documents and there are no
claims subject to the indemnification provisions of the Master Lease.

          G. Other Property Conditions.

     (i) Land Use Regulations. Except for violations that have been cured, Seller
has not received any written notice from any governmental authority with respect to the
violation of any zoning law or ordinance applicable to the Property.

     (ii) Insurance Compliance. Except for violations that have been cured, Seller
has not received any written notice from any insurance company that carries any of Seller’s
insurance with respect to the
Property that any portion of the Property violates any building, fire, or health code,
statute, ordinance, rule or regulation applicable to the Property.

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     (iii) Taxes and Assessments. Except as disclosed in the Title Commitment,
Seller has not received any written notice of any proposed reassessments of the Property
from the local taxing agencies that would, in the reasonable judgment of Seller, increase
real property taxes or assessments against the Property.

     (iv) Special Assessments and Exactions. Except as disclosed in the Title
Commitment, Seller has not received any written notice from any governmental agency that any
special assessments are pending, noted or levied against the Property.

          H. Condemnation. Seller has not received any written notice advising it of any
pending or threatened Condemnation Proceeding or other governmental taking proceedings affecting
all or any part of the Property.

          I. Compliance.

          (i) No Violations . Seller has not received any written notice of any claims,
complaints, notices, correspondence or written notice of any violation of any Law with respect to
the Property or the Land which has not been cured or dismissed.

          (ii) Hazardous Materials . Seller has not received any written notice of any claims,
complaints, notices, correspondence or requests for information from any governmental authority
with respect to any violation or alleged violation of any Laws, any releases of Hazardous Materials
or with respect to any corrective or remedial action for or cleanup of the Property or the Land any
portion thereof.

          (iii) No Transport . To Seller’s Knowledge, Seller has not transported, disposed of
or treated, or arranged for the transportation, disposal or treatment of, any Hazardous Materials
to or from the Property or the Land in violation of Laws.

          (iv) No Release . To Seller’s Knowledge, no written notification of a release or
discharge of a Hazardous Materials in violation of any Laws has been filed by or on behalf of, or
received by, Seller with respect to the Property or the Land.

          (v) No Underground Storage Tanks . To Seller’s Knowledge, there are no underground
storage tanks at, in, under or about the Property or Land and Seller has not removed or installed
any underground storage from the Property or the Land.

          (vi) No Asbestos . To Seller’s Knowledge, no asbestos, polychlorinated biphenyls or
urea formaldehyde is or has been present at the Property
or the Land in amounts that violate any Laws, nor have any of the foregoing been removed by Seller
from the Property or the Land in violation of any Laws.

          J. Hotel Employee Matters. As of the Effective Date, Seller’s affiliate,
Intercontinental Hotels Group Resources, Inc. (“IHG Management”), is the employer of the
Hotel Employees. Seller shall retain all liabilities and obligations in connection with (A) any

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employment claims, charges or grievances by any Employees to the extent resulting from events or
occurrences prior to the Closing Date. There are no (i) collective bargaining agreements with any
labor union with respect to the Hotel 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, IHG Management 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”).

          K. Financial Information. To Seller’s Knowledge, all of Seller’s financial
information provided to Buyer is correct and complete in all material respects and presents
accurately the results of the operations of the Property for the periods indicated.

          L Independent Audit. From and after the Effective Date until two (2) years after the
Closing, Seller shall make the books and records for the years ended December 31, 2009, 2008 and
2007 of the Property/Seller available to Buyer and a nationally-recognized, independent accountant,
mutually acceptable to both Buyer and Seller (the “Independent Auditor”) for inspection,
copying and audit by the Independent Auditor at the expense of the Buyer. Buyer shall reimburse
Seller, and Seller’s affiliates for all costs and expenses reasonably associated with complying
with this Paragraph. From and after the Effective Date until two (2) years after the Closing, upon
request, but not more frequently than annually, Seller will provide the Independent Auditor with a
management representation letter substantially in the form attached hereto as Exhibit O for
the years ending December 31, 2007, 2008 and 2009. Seller shall provide Buyer with copies of, or
access to, such factual information, accounting records and financial information as may be
reasonably requested by Buyer or its auditors, and in the possession or control of Seller, to
enable Buyer or its affiliates to file reports or registration statements in compliance with the
rules and regulations of the SEC. This Section 8.1(L) shall survive the Closing for two (2) years.

          M. Liquor License. To Seller’s Knowledge, the existing liquor licenses for the Hotel
is in full force and effect.

          N. 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.

          O. Patriot Act. Neither Seller nor any 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.

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Notwithstanding the foregoing, this representation does not apply to, or address, any shareholders
of the publicly traded parent of Seller.

          8.2 Seller’s Warranties Deemed Modified. Because Buyer’s primary reliance on the
status of the matters addressed by Seller’s Warranties is Buyer’s own Due Diligence, to the extent
that Buyer (i) has actual knowledge of, or (ii) has received information in writing or in Buyer’s
Diligence Reports (whether such information is actually know to the Buyer or not) prior to the Due
Diligence Deadline indicating that Seller’s Warranties are inaccurate, untrue or incorrect in any
way, such Seller’s Warranties shall be deemed modified to reflect Buyer’s knowledge or deemed
knowledge, as the case may be.

          8.3 Claims of Breach of Warranty Prior To Closing. If, at or prior to the Closing,
Seller obtains actual knowledge that any Seller’s Warranty is untrue, inaccurate or incorrect in
any material respect, Seller shall give Buyer written notice thereof within five (5) Business Days
of obtaining such knowledge (but, in any event, prior to the Closing). After the Due Diligence
Deadline but prior to the Closing, if Buyer or any Buyer’s Representative obtains actual knowledge
that any Seller’s Warranty is untrue, inaccurate or incorrect in any material respect, Buyer shall
give Seller written notice thereof within five (5) Business Days of obtaining such knowledge (but,
in any event, prior to the Closing). In either such event, Seller shall have the right to cure
such misrepresentation or breach and shall be entitled to a reasonable adjournment of the Closing
(not to exceed fifteen (15) days) to attempt such cure. If Buyer fails to notify Seller within
five (5) Business Days of obtaining knowledge that any Seller’s Warranty is untrue, inaccurate or
incorrect, then Buyer shall be deemed to waive such misrepresentation or breach of warranty. If
any Seller’s Warranty is untrue, inaccurate or incorrect in any material respect as of the date
made, and Seller is unable to so cure such misrepresentation or breach, then Buyer, as its sole
remedy shall elect either (a) to waive such misrepresentation or breach and consummate the
Transaction without any reduction of or credit against the Purchase Price, or (b) to Terminate this
Agreement by written notice given to Seller on the Closing Date, in which event any Deposit shall
be returned to Buyer. If any of Seller’s Warranties are untrue, inaccurate or incorrect but are
not, in the aggregate, untrue, inaccurate or incorrect in any material respect, Buyer shall be
deemed to waive such misrepresentation or breach of warranty, and Buyer shall be required to
consummate the Transaction without any reduction of or credit against the Purchase Price. The
untruth, inaccuracy or incorrectness of Seller’s Warranties shall be deemed material only if
Buyer’s aggregate damages resulting from the untruth, inaccuracy or incorrectness of Seller’s
Warranties are reasonably estimated to exceed $100,000.00.

          8.4 Survival and Limits On Buyer’s Claims. Seller’s Warranties shall survive the
Closing and not be merged therein for a period of three hundred sixty-five (365) days and Seller
shall only be liable to Buyer hereunder for a breach of Seller’s Warranties made herein or in any
of the documents executed by Seller at the Closing with respect to which a claim is made by Buyer
against Seller in writing on or before three hundred sixty-five (365) days after the date of the
Closing. Anything in this Agreement to the contrary notwithstanding, the maximum aggregate
liability of Seller for breaches of Seller’s Warranties shall be subject to Seller’s Liability
Limit. Notwithstanding the
foregoing, however, if the Closing occurs, Buyer hereby expressly waives, relinquishes and releases
any right or remedy available to it at law, in equity, under this Agreement or otherwise to make a
claim against Seller for damages that Buyer

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may incur, or to rescind this Agreement and the Transaction, as the result of any of Seller’s
Warranties being untrue, inaccurate or incorrect if (a) Buyer knew or is deemed to know that such
representation or warranty was untrue, inaccurate or incorrect at the time of the Closing (Buyer’s
remedy being as set forth in Paragraph 8.3), or (b) Buyer’s damages as a result of such
representations or warranties being untrue, inaccurate or incorrect are reasonably estimated to
aggregate less than $100,000.00.

          8.5 Buyer’s Representations and Warranties. Buyer, as of the date of the execution of
this Agreement by Buyer, represents and warrants to Seller as follows, and as a condition precedent
to Seller’s obligation to consummate the Transaction at Closing pursuant to the terms of this
Agreement, the following representations of Buyer shall be true and correct in all material
respects as of the Closing Date:

          A. Organization, Power and Authority. Buyer is a Delaware limited liability company
duly organized, validly existing and in good standing under the Laws of the state of its
organization, is, or will by the Closing Date be, to the extent required by Law, duly qualified to
do business in the State in which the Property is located and has all necessary power to execute
and deliver this Agreement and perform all its obligations hereunder. Buyer has the full power and
authority to enter into this Agreement and the execution and delivery of this Agreement by Buyer
(i) has been duly and validly authorized by all necessary action on the part of Buyer, (ii) to the
knowledge of the officer of Buyer signing this Agreement, does not conflict with or result in a
violation of Buyer’s Articles of Incorporation or By-Laws or any judgment, order or decree of any
court or arbiter in any proceeding to which Buyer is a party, and (iii) to the knowledge of the
officer of Buyer signing this Agreement, does not conflict with or constitute a material breach of,
or constitute a material default under, any contract, agreement or other instrument by which Buyer
is bound or to which it is a party. There are no lawsuits filed or served against Buyer or, to
Buyer’s knowledge, otherwise pending or threatened the outcome of which could adversely affect
Buyer’s ability to purchase the Hotel or otherwise perform its obligations under this Agreement.

          B. No Bankruptcy. Buyer has not (A) commenced a voluntary case, or had entered
against it a petition, for relief under any federal bankruptcy act or any similar petition, order
or decree under any federal or state Law relative to bankruptcy, insolvency or other relief for
debtors, (B) caused, suffered or consented to the appointment of a receiver, trustee,
administrator, conservator, liquidator or similar official in any federal, state or foreign
judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all
of its assets, or (C) made an assignment for the benefit of creditors.

          C. Sophisticated Buyer. Buyer is an experienced investor that specializes in the
investment in and ownership and operation of hotel properties in geographically diverse markets.
As such, it is a sophisticated real estate owner, investor and manager with particular experience
in the acquisition, ownership and operation of hotels similar to the Hotel. Buyer warrants and
represents that it has the ability through its own employees, or through agents, independent
contractors, consultants or other experts with whom it has a relationship, to evaluate fully the
investment characteristics of the Hotel and to assess fully
all issues pertaining to title to the Real Property, the value of the Property, the rights and
liabilities of Buyer as the successor to

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Seller under any management agreements, the past performance of the Hotel, the projected
performance of the Hotel, the structural integrity and soundness of all improvements and structures
located on the Real Property, the environmental condition of the Real Property, and the compliance
of the Hotel and the operation and management thereof with all Laws. Accordingly, Buyer warrants
and represents that, except for the representations and warranties expressly made by Seller in this
Agreement, Buyer has not and will not rely upon any warranty, representation, statement of fact, or
other information made by or furnished by or on behalf of Seller or any of their affiliates, but,
except for the representation, and warranties contained herein, is relying solely on its own
investigations, assessment, evaluations, and those of its own employees, agents, independent
contractors, consultants, and other experts with whom it is dealing in connection with this
Transaction.

          D. Reimbursement of Rebates. Buyer acknowledges that Seller may participate in
various incentive programs with various suppliers for the Property whereby rebates are earned by
Seller for Seller’s purchase of designated goods and services from such suppliers. Buyer
acknowledges that Seller may have earned substantial credits toward a rebate prior to Closing and
that after Closing, Buyer may benefit from credits earned by Seller prior to Closing. Buyer
therefore agrees to notify Seller of any rebate related to the Property received by, or credited
to, Buyer within one (1) year of the Closing Date and to cooperate with Seller’s inquires into the
status of any such rebates. Buyer and Seller shall cooperate in good faith to determine which, if
any, portion of such rebate is attributable to Seller’s activities prior to the Closing Date,
whereupon Buyer shall promptly reimburse Seller for Seller’s share of each rebate. If the parties
are unable to determine Seller’s precise share of a rebate, they shall work in good faith to
equitably prorate the rebate into Buyer’s and Seller’s shares. Buyer shall make available to
Seller all records and other data verifying each rebate and the payment thereof. The provisions of
Section shall survive the Closing.

          8.6 Buyer’s Assumption of Seller Obligations.

          A. Wages and Salaries. IHG Management (as defined in Section 8.1 J)
will continue to employ all Hotel Employees at the Hotel with Buyer having the responsibilities
relative to the employment of and services of these employees as set forth in the Management
Agreement. Notwithstanding the foregoing, nothing herein shall be deemed to limit Manager’s right
to terminate or reassign any Hotel Employee pursuant to its authority under the Management
Agreement.

          B. Contracts and Leases.  At the Closing, Seller shall assign to Buyer, pursuant to
the terms of the Assignment and Assumption of Contracts, Warranties and Other Interests (attached
hereto as Exhibit E) and Assignment and Assumption of Leases (attached hereto as
Exhibit D), all right, title and interest of Seller in and to the Contracts and Leases
which, by their terms, are assignable without consent. If a Contract or Lease requires the consent
of the other contracting party before such Contract or Lease may be assigned, Buyer authorizes
Seller to request such consent and shall reasonably cooperate with Seller in obtaining such
consent. If such consent is granted, the
applicable Contract or Lease shall be assigned to Buyer in the manner set forth above. Buyer shall
assume all of the obligations of Seller under the Contracts and Leases arising from and after the
Closing Date. Buyer shall be responsible to pay

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all assignment, termination and other fees required to effectuate the provisions of this
Paragraph. If any Contract or Lease cannot, by its terms or otherwise (including Seller’s
inability to obtain a consent to the assignment), be assigned to Buyer, then Buyer authorizes
Seller to facilitate negotiations of a new direct Contract or Lease between Buyer and the
counter-party of the necessary non-assignable Contract or Lease on equivalent terms with the
original Contract or Lease and Buyer agrees to execute the new Contract or Lease and otherwise
cooperate with Seller to carry out the intent of this Paragraph. Notwithstanding the foregoing,
nothing herein shall be deemed to limit Buyer’s right to object to any Contract or Lease as part of
its review and termination rights in Section 4.4. The provisions of this Section shall survive the
Closing.

          C. Guest Baggage. Buyer assumes all liability for all baggage of Hotel guests,
subject to the Management Agreement, immediately after the Closing Date. Buyer hereby indemnifies
Seller against all claims, losses or liabilities with respect to such baggage arising out of the
acts or omissions of Buyer after the Closing Date. Seller hereby indemnifies Buyer against all
claims, losses or liabilities with respect to such baggage arising out of the acts or omissions of
Seller prior to the Closing Date. The provisions of this Section shall survive the Closing.

          D. Safe Deposit Boxes. Manager shall retain and control all keys to any safe deposit
boxes at the Hotel in accordance with the Management Agreement. Any property in safe deposit boxes
as of the Closing Date (whether or not so recorded) shall be the responsibility of Buyer. The
obligations of Buyer and Seller under this Section shall survive the Closing.

          E. Bond Documents. Buyer shall (i) be responsible, at its sole cost and expense, to
obtain all necessary consents, authorizations and approvals required in order to assign and/or
transfer the tax abatement benefits and burdens to Buyer, including, but not limited to assignment
of the Guaranty, Master Lease and other Bond Documents from Seller or Six Continents Hotels, Inc.,
as applicable, to Buyer (ii) execute any documents at Closing required to assign and/or transfer
the Bond Documents benefits and burdens to Buyer and cause Seller to be released from all liability
to the Development Authority and Buyer pursuant to the Bond Documents, including without
limitation, the Guaranty; and (iii) have all such consents, authorizations and approvals required
for such assignment to be obtained, with evidence thereof delivered to Seller at least three (3)
Business Days prior to the Closing Deadline (the “Bond Assignment Deadline”). Seller and
Six Continents Hotels, Inc. agree to reasonably cooperate with Buyer, at no cost to Seller, and to
execute any and all documents reasonably requested in furtherance of the foregoing. If Buyer fails
to achieve the following on or before the Bond Assignment Deadline (a) obtain any necessary
consents, authorizations or approvals required in order to assign the Bond Documents from Seller or
Six Continents Hotels, Inc., as applicable, to Buyer, (b) execute any documents required to assign
and/or transfer the Bond Documents benefits and burdens to Buyer, (c) cause the Development
Authority to release Seller from all liability under the Bond Documents, including, but not limited
to the Guaranty, or (d) deliver evidence of the foregoing (a) through (b) to Seller, then, Seller
shall have the right, in its discretion, to (i) unwind the tax abatement structure by causing the
Development Authority to convey the fee simple title to the Real Property directly to Seller and
terminating all Bond
Documents and the related tax abatement, (ii) extend the Closing Date by the amount of time
necessary to accomplish the foregoing (but such extension shall not exceed thirty (30) calendar

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days), (iii) require Buyer to acquire Seller’s fee simple interest in the Real Property,
and (iv) require Buyer to pay any additional transfer taxes or other costs associated with the
conveyance of the restructured sale of the Real Property.

     9. Casualty and Condemnation. Seller shall maintain the property insurance coverage
currently in effect for the Property, or comparable coverage, through the Closing Date. If after
the Effective Date and prior to the Closing Date, any portion of the improvements is materially
damaged or destroyed by fire or other casualty, or there shall be commenced or instituted against
the Property any Condemnation Proceeding, Seller shall promptly give written notice of such event
to Buyer, and the following provisions shall apply notwithstanding the contrary terms of any
applicable Laws with respect to the subject matter of Paragraph 9:

          9.1 Major Event. If such damage or destruction results in a casualty loss in excess
of Five Million and No/100 Dollars ($5,000,000.00), as reasonably determined by Seller, or if such
Condemnation Proceeding would result in the taking of a portion of the Property worth in excess of
Five Million and No/100 Dollars ($5,000,000.00), then Buyer shall have the right to Terminate this
Agreement by written notice to Seller given no later than ten (10) Business Days after the giving
of Seller’s notice of such event, in which event any Deposit shall be returned to Buyer, and the
Closing Date shall be extended, if necessary, to provide sufficient time for Buyer to make such
election. The failure by Buyer to so elect in writing to terminate this Agreement within such
period shall be deemed an election not to terminate this Agreement.

          9.2 Closing Despite Casualty/Condemnation. If a casualty or Condemnation Proceeding
occurs and Buyer shall not, or has no right to, Terminate this Agreement on account thereof, then
at Closing (a) the conveyance of the Property shall be less such portion of the Property so taken
by (or, as applicable, shall be subject to) said Condemnation Proceeding, without adjustment of the
Purchase Price, (b) Seller shall assign to Buyer (without recourse to Seller) all the rights to all
awards or insurance proceeds with respect to such casualty or Condemnation Proceeding (except for
business interruption coverage with respect to Rental Payments prior to Closing); (c) Seller shall
provide a credit at Closing equal to (i) Seller’s deductible under Seller’s insurance policy, plus
all proceeds or awards previously paid to Seller with respect to such casualty or Condemnation
Proceeding, less (ii) an amount equal to the sum of (A) the costs, expenses and fees, including
reasonable attorneys’ fees, expenses and disbursements, incurred by Seller in connection with such
casualty or Condemnation Proceeding, (B) any portion of any Condemnation Proceeding award that is
allocable to loss of use of the Property prior to Closing, and the proceeds of any rental loss,
business interruption or similar insurance to the extent allocable to the period prior to the
Closing Date, and (C) the reasonable and actual costs incurred by Seller in stabilizing and/or
repairing the Property following a casualty (and to the extent the sum of the items in (ii) is
greater than the items in (i), Buyer shall pay such excess to Seller within five (5) Business Days
after receipt of such awards or proceeds after Closing).

     10. Other Conditions to Closing. The obligation of Buyer and Seller to close the
Transaction shall be further subject to the satisfaction at or prior to Closing of the conditions
precedent set forth in this Paragraph.

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          10.1 Conditions to Buyer’s Obligations. The conditions precedent to Buyer’s
obligations at Closing referenced above are as follows, any or all of which may be expressly waived
by Buyer in writing, at its sole option:

          A. Representations. Seller’s Warranties, subject to Paragraphs 8.2 and 8.3, shall be
true and correct in all material respects on and as of the Closing Date, except as modified in a
manner permitted by the Agreement, as if made on and as of such date except to the extent that they
expressly relate to an earlier date;

          B. Seller Compliance. Seller shall have performed all of the covenants, undertakings
and obligations to be performed or complied with by Seller at or prior to the Closing.

          C. ROFO Compliance. Buyer shall have received satisfactory evidence that Seller has
received notice from Hospitality Properties Trust that Hospitality Properties Trust waives its
rights under the ROFO Agreement, or Hospitality Properties Trust shall have deemed to have waived
such rights.

          D. Liquor License. Alcohol shall be lawfully available in the bars, lounges and other
facilities of the Hotel which require a liquor license provided that the Buyer does not prejudice
any existing license and satisfies all the requirements of Law necessary to obtain such liquor
license and cooperates with Seller and its affiliates in the application for the liquor license.

          E. Tax Abatement Transfer or Termination. Either (i) the tax abatement benefits and
burdens as described in Section 8.6(E) shall be assigned and/or transfered to Buyer, or (ii) such
tax abatement structure shall be unwound by causing the Development Authority to convey the fee
simple title to the Real Property directly to Seller and terminating all Bond Documents and the
related tax abatement.

          F. No Change to Title. There shall be no material adverse change affecting title
to the Real Property not caused by Buyer between the date of the Title Commitment and the
Closing Date. Notwithstanding the foregoing, in the event that this condition is not satisfied at
Closing, Seller shall have the right to extend the Closing Date by the amount of time necessary to
cure or satisfy this condition (but such extension shall not exceed ninety (90) calendar days).

          10.2 Conditions to Seller’s Obligations. The conditions precedent to Seller’s
obligations at Closing referenced above are as follows, any or all of which may be expressly waived
by Seller in writing, at its sole option:

          A. Representations. Buyer’s warranties set forth in Paragraph 8.3, shall be true and
correct in all material respects on and as of the Closing Date, except as modified in a manner
permitted by the Agreement, as if made on and as of such date except to the extent that they
expressly relate to an earlier date;

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          B. Buyer Compliance. Buyer shall have performed all of the covenants,
undertakings and obligations to be performed or complied with by Buyer at or prior to the Closing.

          C. ROFO Compliance. Seller shall have received notice from Hospitality Properties
Trust that Hospitality Properties Trust waives its rights under the ROFO Agreement, or Hospitality
Properties Trust shall have deemed to have waived such rights.

          D. Tax Abatement Transfer or Termination. Either (i) the tax abatement benefits and
burdens as described in Section 8.6(E) shall be assigned and/or transfered to Buyer, or (ii) such
tax abatement structure shall be unwound by causing the Development Authority to convey the fee
simple title to the Real Property directly to Seller and terminating all Bond Documents and the
related tax abatement.

          10.3 Waiver of Conditions. By closing the Transaction, Seller and Buyer shall be
conclusively deemed to have waived the benefit of any remaining unfulfilled conditions set forth in
Paragraph 10.1 and 10.2, respectively.

     11. Transaction Issues: Brokers, Confidentiality and Indemnity.

          11.1 Brokers. Each party represents to the other that such party has not incurred any
obligation to any broker or real estate agent with respect to the purchase or sale of the Property
except for the Broker defined herein, which obligation has been incurred by Seller pursuant to a
separate agreement with Broker executed in connection with the Transaction. Seller shall, upon the
Closing of this Transaction and receipt by Seller of the Purchase Price, pay to Broker the
appropriate sales commission pursuant to the terms of the brokerage agreement with Broker. Except
for Broker and such commission payable as set forth above, Seller and Buyer each hereby (a)
represent and warrant to the other that it has not employed, retained or consulted any broker,
agent, or finder in carrying on a negotiation in connection with this Agreement or the Transaction,
and (b) indemnify and agree to hold the other harmless from and against any and all claims,
demands, causes of action, debts, liabilities, judgments and damages (including costs and
reasonable attorneys’ fees actually incurred in connection with the enforcement of this indemnity)
which may be asserted or recovered against the indemnified party on account of any brokerage fee,
commission or other compensation arising by reason of the indemnitor’s breach of this
representation and warranty. This Paragraph shall survive the Closing or any termination of this
Agreement.

          11.2 Confidentiality. A. Buyer hereby agrees that prior to Closing it and the Buyer’s
representatives will not release or cause or permit to be released, any press notices, publicity
(oral or written) or advertising promotion relating to, or otherwise announce or disclose or cause
or permit to be announced or disclosed, in any manner whatsoever, the terms, conditions or
substance of this Agreement or the Transaction,
without first obtaining the written consent of the Seller. The foregoing shall not preclude Buyer
from (a) discussing the substance or any relevant details of the transactions contemplated in this
Agreement with any of its representatives as described above, or (b) from complying with any Laws
applicable to such party, including, without limitation, governmental regulatory, disclosure, tax
and reporting requirements, or, at or

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about the Closing Date, issuing or causing the issuance of a press or media release or other
information in the nature of a press release relating to this Agreement or the Transaction (the
“Transaction Closing Disclosure”), provided, however, that the Transaction Closing
Disclosure has received the prior written approval of Seller as to the exact text of such press
release, or any other public disclosure of this Agreement or this Transaction, and of the extent of
distribution thereof. Notwithstanding the foregoing, if Buyer reasonably determines, after
consultation with counsel, that it is required by Law to publicly disclose the existence or terms
of this Agreement, before, at or within five (5) Business Days after Closing occurs, Buyer shall
allow Seller a reasonable period of time, not to exceed five (5) Business Days, to review any
proposed disclosure made by Buyer before, at or immediately after Closing, including, without
limitation, the Transaction Closing Disclosure, in advance of Buyer making such disclosure (the
“Publicity Notice Requirement”) but, for the avoidance of doubt, Buyer shall be permitted
to make such disclosure and shall not be required to obtain the consent of Seller prior to making
such disclosure. Buyer represents that, to the best of its knowledge, the Law only requires Buyer
to make the following statement in an 8K disclosure prior to Closing: “On May 25, 2010, a
subsidiary of Pebblebrook Hotel Trust (the “Company”) entered into an agreement to acquire an
upscale full-service hotel in the Atlanta region for $105.0 million from an unaffiliated third
party. The Company expects to fund the purchase price with proceeds from the Company’s initial
public offering. The closing is expected to occur within 45 days, however, because the acquisition
is subject to customary closing requirements and conditions, the Company can give no assurance that
the transaction will be consummated during that time period, or at all” (the foregoing statement
being referred to herein as the “Pre-Approved Statement”). Buyer shall be permitted to
release the Pre-Approved Statement as part of (i) its 8K disclosure obligations pursuant to
Securities and Exchange Commission legal requirements and (ii) a routine press release and, subject
to the foregoing limitation, Buyer shall be permitted to the release of the Pre-Approved Statement
within five (5) Business Days after the Effective Date without having to comply with the Publicity
Notice Requirement. For all public disclosures different from the foregoing made by Buyer before,
at or within five (5) Business Days after Closing, including without limitation the Transaction
Closing Disclosure, Buyer must comply with the Publicity Notice Requirement. For the avoidance of
doubt, except for the Transaction Closing Disclosure, Buyer shall not need to comply with the
Publicity Notice Requirement for any public disclosures made five (5) or more Business Days after
Closing. Buyer agrees that it any public communications, including, but not limited to, press
notices, publicity (oral or written) or other promotions, this Transaction shall be characterized
as a “strategic relationship” with Seller and its affiliates and shall not be characterized, or
referred to, as a “distressed” or “discounted” sale or transaction. For clarification, discount
shall not mean the concept of Discount to Replacement Cost which Owner will be allowed to discuss.
Buyer shall indemnify and hold Seller harmless from and against any and all Liabilities suffered or
incurred by Seller and arising out of or in connection with a breach by Buyer of the provisions of
this Paragraph. The indemnification obligations contained in this Paragraph shall survive the
Closing or the earlier termination of this Agreement.

          B. Seller hereby agrees that prior to Closing it will not release or cause or permit to be
released, and will use best efforts to prevent the Seller’s Representatives from releasing or
causing or permitting the release of, any press notices, publicity (oral or written) or advertising
promotion relating to, or otherwise announce or disclose or cause or permit to be

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announced or disclosed, in any manner whatsoever, the terms, conditions or substance of
this Agreement or the Transaction, without first obtaining the written consent of the Buyer. The
foregoing shall not preclude Seller from (a) discussing the substance or any relevant details of
the transactions contemplated in this Agreement with any of its representatives as described above,
or (b) from complying with any Laws applicable to such party, including, without limitation,
governmental regulatory, disclosure, tax and reporting requirements, or, at and after Closing,
issuing or causing the issuance of a press or media release or other information in the nature of a
press release relating to this Agreement or the Transaction, provided, however, that such release
has received the prior written approval of Buyer as to the exact text of such press release and of
the extent of distribution thereof. Seller shall indemnify and hold Buyer harmless from and
against any and all Liabilities suffered or incurred by Buyer and arising out of or in connection
with a breach by Seller of the provisions of this Paragraph. The indemnification obligations
contained in this Paragraph shall survive the Closing or the earlier termination of this Agreement.

          11.3 Indemnity. Buyer hereby agrees to indemnify, defend, and hold Seller and each of
the other Seller Parties free and harmless from and against any and all Liabilities (including
reasonable attorneys’ fees, expenses and disbursements) arising out of or resulting from the entry
on the Property and/or the conduct of any Due Diligence by Buyer or any of Buyer’s Representatives
at any time prior to the Closing; provided, however, that Buyer’s obligations under this clause
shall not apply to the mere discovery of an pre-existing environmental, financial, legal or
physical condition at the Property. The foregoing indemnity shall survive the Closing (and not be
merged therein) or any earlier termination of this Agreement.

     12. Default At or Prior to Closing.

          12.1 Buyer Default. If Buyer defaults in the observance or performance of its
covenants and obligations hereunder, and such default continues for five (5) Business Days after
the date of receipt of written notice from Seller demanding cure of such default, Seller shall be
entitled, as its sole and exclusive remedy hereunder, to Terminate this Agreement by written notice
to Buyer of such termination and to receive payment of the Deposit as full liquidated damages
pursuant to Official Code of Georgia Annotated §13-6-7 for such default of Buyer, the parties
hereto acknowledging the difficulty of ascertaining the actual damages in the event of such a
default, that it is impossible more precisely to estimate the damages to be suffered by Seller upon
Buyer’s default, that such forfeiture of the Deposit is intended not as a penalty, but as full
liquidated damages and that such amount constitutes a reasonable good faith estimate of the
potential damages arising therefrom, it being otherwise difficult or impossible to estimate
Seller’s actual damages which would be suffered by Seller in the event of default by Buyer.
Notwithstanding the foregoing, a Buyer default for failure to perform all of the covenants,
undertakings and obligations to be performed by Buyer at or prior to the Closing Deadline shall not
entitle Buyer to any notice or cure period that would require an extension of the Closing Date.
Except with respect to any right, obligation or liability
which survives Closing or termination of this Agreement, including any indemnification provisions
set forth in this Agreement, Seller’s right to Terminate this Agreement and receive payment of the
Deposit as full liquidated damages, are Seller’s sole and exclusive remedies in the event of
default

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hereunder by Buyer, and Seller hereby waives, relinquishes and releases any and all other
rights and remedies (except any that survive Closing or termination pursuant to the express
provisions of this Agreement), including, but not limited to: (1) any right to sue Buyer for
damages or to prove that Seller’s actual damages exceed the Deposit which is hereby provided Seller
as full liquidated damages, (2) any right to sue Buyer for specific performance, or (3) any other
right or remedy which Seller may otherwise have against Buyer, either at law, or equity or
otherwise.

          12.2 Seller Default. If Seller defaults in the observance or performance of its
covenants and obligations hereunder, or if Seller breaches any of its representations and
warranties under this Agreement, and such default continues for the greater of five (5) Business
Days after the date of receipt of written notice from Buyer demanding cure of such default, or the
expiration of other applicable cure periods set forth in this Agreement, then Buyer shall be
entitled either, at Buyer’s option, (i) without waiving the right to elect the option to Terminate
this Agreement, to sue Seller for specific performance of this Agreement, but only if such suit is
filed within ninety (90) days after the occurrence of Seller’s alleged default, or (ii) to
Terminate this Agreement by the delivery to Seller of notice of such termination and Buyer shall be
entitled to the return of the Deposit and Seller shall pay Buyer the reasonable costs actually
incurred by Buyer in connection with its investigation and efforts to purchase the Property,
including, without limitation, actual reasonable fees and costs of counsel and consultants but in
no event shall such costs payable by Seller to Buyer exceed $200,000. Except with respect to any
right, obligation or liability which survives Closing or termination of this Agreement, including
any indemnification provisions set forth in this Agreement, Buyer’s rights to so Terminate this
Agreement or sue for specific performance, are Buyer’s sole and exclusive remedies hereunder in the
event of default hereunder by Seller, and Buyer hereby waives, relinquishes and releases any and
all other rights and remedies (except any that survive Closing or termination pursuant to the
express provisions of this Agreement), including, but not limited to: (1) any right to sue for
damages, or (2) any other right or remedy which Buyer may otherwise have against Seller either at
law, in equity or otherwise. Buyer agrees that its failure to timely commence an action for
specific performance within such the period noted above shall be deemed a waiver by it of its right
to commence an action for specific performance as well as a waiver by it of any right it may have
to file or record a notice of lis pendens or notice of pendency of action or similar notice against
any portion of the Property.

     13. Notices. All notices, consents, approvals and other communications which may be
or are required to be given by either Seller or Buyer under this Agreement shall be properly given
only if made in writing and sent by (a) hand delivery, or (b) certified mail, return receipt
requested, or (c) a nationally recognized overnight delivery service (such as Federal Express, UPS
Next Day Air or Airborne Express), or (d) by telecopying to the telecopy number listed below
(provided that a copy of such notice is also delivered within 24 hours to the party by one of the
other methods listed herein), with all postage and delivery charges paid by the sender and
addressed to the Buyer or Seller, as applicable as set forth below, or at such other address (or
telecopy number) as each may request in writing. Such notices delivered by hand, by telecopy, or
overnight delivery service shall be deemed received on the date of delivery and, if mailed, shall
be deemed received upon the earlier of actual receipt or two days after mailing. Said notice
addresses are as follows (and Seller and Buyer shall have the
right to designate changes to their respective notice addresses, effective five (5) days after the
delivery of written notice thereof):

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	If to
Seller:
	 	InterContinental Hotels Group
	 
	 	Three Ravinia Drive
	 
	 	Suite 100
	 
	 	Atlanta, Georgia 30346-2149
	 
	 	Attention: Robert Chitty
	 
	 	Telephone No.: (770) 604-5321
	 
	 	Telecopy No.: (770) 604-5075
	 
	 	 
	With a
copy to:
	 	InterContinental Hotels Group
	 
	 	Three Ravinia Drive
	 
	 	Suite 100
	 
	 	Atlanta, Georgia 30346-2149
	 
	 	Attention: Legal Dept. - Paul Huang
	 
	 	Telephone No.: (770) 604-2644
	 
	 	Telecopy No.: (770) 604-5075
	 
	 	 
	 
	 	Alston & Bird LLP
	 
	 	One Atlantic Center
	 
	 	1201 West Peachtree Street
	 
	 	Atlanta, Georgia 30309-3424
	 
	 	Attention: Daniel Weede
	 
	 	Telephone No.: (404) 881-7529
	 
	 	Telecopy No.: (404) 253-8885
	 
	 	 
	If to
Buyer:
	 	Orangemen Owner LLC
	 
	 	c/o Pebblebrook Hotel Trust
	 
	 	2 Bethesda Metro Center, Suite 1530
	 
	 	Bethesda, Maryland 20814
	 
	 	Attention: Thomas C. Fisher, Executive VP
	 
	 	Telephone No.:  (240) 507-1340
	 
	 	Telecopy No.: (240) 396-5763
	 
	 	 
	With a
copy to:
	 	John M. Ratino, Esquire
	 
	 	Hunton & Williams LLP
	 
	 	1900 K Street, N.W.
	 
	 	Washington, DC 20006
	 
	 	Telephone No.: (202) 778-2221
	 
	 	Telecopy No.:  (202) 778-2201

     14. General Provisions.

          14.1 Execution Necessary. This Agreement shall not be binding upon Seller until fully
executed and delivered by a proper official of Seller, and no action taken by Seller’s

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representatives shall be deemed an acceptance of this Agreement until this Agreement has been
so executed by Seller and delivered to Buyer.

          14.2 Counterparts. This Agreement may be executed in separate counterparts. It shall
be fully executed when each party whose signature is required has signed at least one counterpart
even though no one counterpart contains the signatures of all of the parties to this Agreement.

          14.3 Successors and Assigns. This Agreement shall be binding upon the parties hereto
and their respective successors and assigns and inure to the benefit of the parties hereto and
their respective permitted successors and assigns. Buyer shall not have the right to assign or
delegate any right, duty or obligation of Buyer under this Agreement to any other party without the
prior written consent of Seller, which consent Seller may grant or withhold in its sole and
absolute discretion, and any such assignment shall be null and void ab initio.

          14.4 Governing Law. This Agreement shall be governed by the Laws of the state in
which the Land is located.

          14.5 Entire Agreement. This Agreement and all the exhibits referenced herein and
annexed hereto contain the entire agreement of the parties hereto with respect to the matters
contained herein, and no prior agreement or understanding (including without limitation the Letter
of Intent between Buyer and Seller dated April 16, 2010) pertaining to any of the matters connected
with this Transaction shall be effective for any purpose. Neither this Agreement nor any provision
hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by
the party against whom the enforcement of such waiver, modification, amendment, discharge or
termination is sought, and then only to the extent set forth in such instrument.

          14.6 Time is of the Essence. TIME IS OF THE ESSENCE of the Transaction and this
Agreement. If the time period by which any right, option or election provided under this Agreement
must be exercised, or by which any act required hereunder must be performed, or by which the
Closing must be held, expires on a Saturday, Sunday or legal or bank holiday, then such time period
shall be automatically extended through the close of business on the next regularly scheduled
business day.

          14.7 Interpretation. The titles, captions and paragraph headings are inserted for
convenience only and are in no way intended to interpret, define, limit or expand the scope or
content of this Agreement or any provision hereof. If any party to this Agreement is made up of
more than one person or entity, then all such persons and entities shall be included jointly and
severally, even though the defined term for such party is used in the singular in this Agreement.
If any time period under this Agreement ends on a day other than a Business Day, then the time
period shall be extended until the next Business Day. This Agreement shall be construed without
regard to any presumption or other rule requiring construction against the party causing this
Agreement to be drafted. If any words
or phrases in this Agreement shall have been stricken out or otherwise eliminated, whether or not
any other words or phrases have been added, this Agreement shall be construed as if the words or
phrases so stricken out or otherwise eliminated

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were never included in this Agreement and no implication or inference shall be drawn from the
fact that said words or phrases were so stricken out or otherwise eliminated.

          14.8 Survival. Except as set forth herein, the covenants, agreements, indemnities,
representations and warranties contained herein shall not survive the Closing Date for more than
one (1) year or any termination of this Agreement, except as otherwise set forth in this Agreement
(limited, as applicable, as the term of survival may be otherwise specifically provided therein).

          14.9 Further Assurances. Each party agrees to execute and deliver to the other such
further documents or instruments as may be reasonable and necessary in furtherance of the
performance of the terms, covenants and conditions of this Agreement; provided, however, that the
execution and delivery of such documents by such party shall not result in any additional liability
or cost to such party.

          14.10 Exclusive Application. Nothing in this Agreement is intended or shall be
construed to confer upon or to give to any person, firm or corporation other than Buyer and Seller
hereto any right, remedy or claim under or by reason of this Agreement. All terms and conditions
of this Agreement shall be for the sole and exclusive benefit of the parties hereto and may not be
assigned.

          14.11 Partial Invalidity. If all or any portion of any of the provisions of this
Agreement shall be declared invalid by Laws applicable thereto, then the performance of said
offending provision shall be excused by the parties hereto; provided, however, that, if the
performance of such excused provision materially affects any material aspect of this Transaction
and the other party does not upon demand enter into a modification or separate agreement which sets
forth in valid fashion the covenants of such offending provision in a manner which counsel to both
parties determine is valid, then the party hereto for whose benefit such excused provision was
inserted in this Agreement shall have the right, exercisable by written notice given to the other
party within ten (10) days after such provision is so declared invalid, to Terminate this
Agreement.

          14.12 Waiver Rights. Buyer reserves the right to waive, in whole or in part, any
provision hereof which is for the benefit of Buyer. Seller reserves the right to waive, in whole
or in part, any provision hereof that is for the benefit of Seller.

          14.13 No Implied Waiver. Unless otherwise expressly provided herein, no waiver by
Seller or Buyer of any provision hereof shall be deemed to have been made unless expressed in
writing and signed by such party. No delay or omission in the exercise of any right or remedy
accruing to Seller or Buyer upon any breach under this Agreement shall impair such right or remedy
or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by
Seller or Buyer of any breach of any term, covenant or condition herein stated shall not be deemed
to be a waiver of any other breach, or of a subsequent breach of the same or any other term,
covenant or condition herein contained.

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          14.14 Rights Cumulative. All rights, powers, options or remedies afforded to
Seller or Buyer either hereunder or by Law shall be cumulative and not alternative, and the
exercise of one right, power, option or remedy shall not bar other rights, powers, options or
remedies allowed herein or by Law, unless expressly provided to the contrary herein.

          14.15 Attorney’s Fees. Should either party employ an attorney or attorneys to enforce
any of the provisions hereof or to protect its interest in any manner arising under this Agreement,
or to recover damages for breach of this Agreement, the non-prevailing party in any action pursued
in a court of competent jurisdiction (the finality of which is not legally contested) agrees to pay
to the prevailing party all reasonable costs, damages and expenses, including attorney’s fees,
expended or incurred in connection therewith.

          14.16 Waiver of Jury Trial. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY PROCEEDINGS
BROUGHT BY THE OTHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED
WITH THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND SELLER
HEREUNDER. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING (AND NOT BE MERGED THEREIN) OR
ANY EARLIER TERMINATION OF THIS AGREEMENT.

          14.17 Facsimile Signatures. Signatures to this Agreement transmitted by telecopy
shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver
an execution original to this Agreement with its actual signature to the other party, but a failure
to do so shall not affect the enforceability of this Agreement, it being expressly agreed that each
party to this Agreement shall be bound by its own telecopied signature and shall accept the
telecopied signature of the other party to this Agreement.

          14.18 No Recordation. Seller and Buyer each agrees that neither this Agreement nor
any memorandum or notice hereof shall be recorded and Buyer agrees (a) not to file any notice of
pendency or other instrument (other than a judgment) against the Property or any portion thereof in
connection herewith and (b) to indemnify Seller against all Liabilities (including reasonable
attorneys’ fees, expenses and disbursements) incurred by Seller by reason of the filing by Buyer of
such notice of pendency or other instrument. Notwithstanding the foregoing, if the same is
permitted pursuant to applicable Laws, Buyer shall be entitled to record a notice of lis pendens if
Buyer is entitled to seek (and is actually seeking) specific performance of this Agreement by
Seller in accordance with the terms of Paragraph 12.2 hereof.

          14.19 Maximum Aggregate Liability. Notwithstanding any provision to the contrary
contained in this Agreement or any documents executed by Seller pursuant hereto or in connection
herewith, the maximum aggregate liability of Seller and the Seller Parties, and the maximum
aggregate amount which
may be awarded to and collected by Buyer, in connection with the Transaction, the Property, under
this Agreement and under any and all documents executed pursuant hereto or in connection herewith
(including, without limitation, in connection with the breach of any of Seller’s Warranties for
which a claim is timely made by Buyer) shall not exceed Seller’s Liability Limit. The provisions
of this section shall survive the Closing (and not be merged therein) or any earlier termination of
this Agreement.

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          14.20 Exhibits and Schedules. All exhibits and schedules referred to in, and
attached to, this Agreement are hereby incorporated herein in full by this reference.

          14.21 Jurisdiction. With respect to any suit, action or proceedings relating to the
Transaction, this Agreement, the Property or the relationship of Buyer and Seller hereunder
(“Proceedings”) each party irrevocably (a) submits to the exclusive jurisdiction of the Courts of
the County of Fulton, State of Georgia and the United States District Court for the Northern
District of Georgia, and (b) waives any objection which it may have at any time to the laying of
venue of any proceedings brought in any such court, waives any claim that such proceedings have
been brought in an inconvenient forum and further waives the right to object, with respect to such
proceedings, that such court does not have jurisdiction over such party. The provisions of this
section shall survive the Closing (and not be merged therein) or any earlier termination of this
Agreement.

     15. Retention of Hotel Employees. Buyer acknowledges that an affiliate of Seller
will manage the Hotel in accordance with the Management Agreement attached as Exhibit P and
that Seller will continue to employ all Hotel Employees at the Hotel with Buyer having the
responsibilities relative to the employment of and services of these employees as set forth in the
Management Agreement.

     16. On-Going Management of Hotel. Buyer acknowledges that Seller is unwilling to
sell the Hotel unless Buyer and Seller’s designated affiliate enter into a long term, hotel
management agreement for the Property. Buyer and Seller, each in their respective discretion,
shall try to agree on the specific form of the hotel management agreement on or before June 4, 2010
and, if the parties reach an agreement, shall manifest such agreement by signing an amendment to
this Agreement attaching such hotel management agreement as Exhibit P to this Agreement.
If the parties have not executed an amendment to this Agreement incorporating the agreed upon form
of hotel management agreement into this Agreement by June 4, 2010, then, subject to the HMA
Extension Option, either party may terminate this agreement upon notice to the other party, in
which case the Deposit shall be returned to Buyer, and the parties shall have no further rights or
obligations hereunder, except for those which expressly survive any such termination.
Notwithstanding the foregoing, if the parties have not executed an amendment to this Agreement
incorporating the agreed upon form of hotel management agreement into this Agreement by June 4,
2010, but the parties are actively engaged in good faith negotiations and progressing toward
resolution of the remaining issues of the hotel management agreement, then, either party may extend
the June 4, 2010 deadline to June 11, 2010 by written notice to the other party (the “HMA Extension
Option”). At Closing, Seller’s designated affiliate and Buyer shall execute the Management
Agreement in the form to be attached hereto as Exhibit P.

     17. Drainage. Buyer acknowledges and agrees that: (a) Buyer has been informed about
a lawsuit which began in 2004, Charles J. Lynch, III; and Mary Ann Lynch v., IHC Buckhead, LLC
et. al., in the Superior Court of Fulton County, State of Georgia, Civil Action File No:
2004-cv-89108) (the “Lawsuit”), which lawsuit related to
drainage from the Property and was resolved, in part through the installation of a new
drainage system; (b) Buyer has had the opportunity to familiarize itself with the Lawsuit and the
obligations that the owner of the

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Real Property is obligated to perform pursuant to all matters in the public land record
related to the Lawsuit and/or any water drainage obligations that the owner of the Real Property
owes adjoining real property owners (the “Owner Drainage Obligations”); and (c) at Closing,
Buyer shall assume all responsibility related to the Owner Drainage Obligations. In the event the
Closing occurs, Buyer shall be deemed to waive, abandon, release and renounce any claims against
Seller, its affiliates, officers, directors, employees, agents, including, without limitation,
claims for indemnification and contribution, related to water run-off and drainage issues, the
construction of the Hotel and related improvements on the Real Property. If the Closing of the
Transaction occurs, Buyer shall indemnify, defend and hold harmless Seller, Seller’s affiliated
companies, their respective directors, officers, employees, representatives, agents, in their
individual capacities or otherwise, and their respective successors and assigns (collectively,
“Seller Indemnitees”), from and against any and all liabilities, losses, costs, damages,
judgments and expenses (including, without limitation, attorneys’ fees) (“Losses”) arising
out of any claim, damages, demand, lawsuit or cause of action (“Claims”) related to Buyer’s
failure to comply with the Owner Drainage Obligations from and after the Closing Date. If the
Closing of the Transaction occurs, Seller shall indemnify, defend and hold harmless Buyer, Buyer’s
affiliated companies, their respective directors, officers, employees, representatives, agents, in
their individual capacities or otherwise, and their respective successors and assigns
(collectively, “Buyer Indemnitees”), from and against any and all Losses arising out of any
Claims related to Seller’s failure to comply with the Owner Drainage Obligations prior to the
Closing Date. In addition, at Closing, Buyer and Seller agree to execute an appropriate document
to memorialize the foregoing indemnifications of Seller Indemnitees and Buyer Indemnitees for
Losses arising out of the Claims as part of the As Is Agreement attached as Exhibit L.

     18. Buyer’s Successor Payment Obligation. In the event the Closing occurs, and Buyer
thereafter directly or indirectly sells a partial or full interest in the Hotel through one or more
transactions on or before the thirtieth (30th) month anniversary of the Closing Date
(such sale being a “Successor Sale”), Buyer shall be obligated pay to Seller or its
designated affiliate on or before the date of the closing of the Second Sale, an amount (the
“Successor Payment”) equal to fifty percent (50%) of the “Net Sale Proceeds”
(hereafter defined) above the “Sale Hurdle” (hereafter defined), which Successor Payment
shall be subject to a maximum amount equal to the “Proceeds Cap” (hereafter defined). For
the foregoing purposes, Net Sale Proceeds shall mean all sales proceeds from the Successor Sale,
after deducing reasonable and actually incurred transaction costs, but would not deduct any other
amounts, including without limitation satisfaction of outstanding debt or capital contributions.
Sale Hurdle shall mean $105 Million plus capital expenditures made by Buyer in excess of the FF&E
Reserve, which amount shall increase monthly from the date of the Closing through the date 30
months thereafter by an amount equal to five percent (5%) per annum. Proceeds Cap shall mean $5.0
million for the first twelve full calendar months following the Closing Date, $8.0 million for the
thirteenth through twenty-fourth full calendar months following the Closing Date and $10.0 million
for the twenty-fifth through thirtieth full calendar months following the Closing Date. This
Section 18 shall survive the Closing and not be subject to any offset. Buyer and its affiliates
shall notify Seller at least thirty (30) days prior to the closing of a Successor Sale and
cooperate to provide information necessary for Buyer or its affiliate to confirm the Successor
Payment.

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     19. Au Pied De Cochon License. Buyer acknowledges that it has received and
reviewed that certain Exclusive Trademark and Know-How License and Technical Assistance Agreement
by and between Au Pied De Cochon and PJB Holding (collectively, the “Licensor”) and Seller
dated June 21, 2004 (the “Au Pied De Cochon License Agreement”) and acknowledges that
Article 7 of the Au Pied De Cochon License Agreement requires that the Seller, as the licensee,
continue to own and operate the restaurant. Buyer and Seller hereby agree that Seller shall have
the option, prior to or subsequent to Closing, to amend or otherwise modify the Au Pied De Cochon
License Agreement to either (i) permit the Manager to operate the restaurant without an equity
interest in the Hotel, or (ii) permit Seller to assign its interest in the Au Pied De Cochon
License Agreement to Buyer. If Seller proceeds with option (ii) above, Buyer must execute an
assignment and assumption agreement in the form attached as Exhibit E. If Licensor
terminates the Au Pied De Cochon License Agreement as a result of the Transaction, Seller shall pay
all termination fees associated with such termination. However, if (a) Licensor amends the Au Pied
De Cochon License Agreement pursuant to either option (i) or (ii) above, and (b) Buyer terminates
(or directs Manager to terminate) the Au Pied De Cochon License Agreement, then Buyer shall be
solely responsible to pay all termination fees associated with such termination. The provisions of
Section shall survive the Closing.

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     IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement under seal as of the
day and year first above written.

	 	 	 	 	 
	 	SELLER:

IHC BUCKHEAD, LLC a Georgia

limited liability company

 	 
	 	By:  	/s/ Travis D. Ray
 	 
	 	 	Name:  	Travis D. Ray 	 
	 	 	Title:  	Vice President 	 
	 
	 	BUYER:

ORANGEMEN OWNER LLC, a

Delaware limited liability company

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

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SCHEDULE A

(attached to and made a part of that certain Purchase and Sale

Agreement by and between IHC BUCKHEAD, LLC as Seller,

and ORANGEMEN OWNER LLC, as Buyer, dated as of May

25, 2010)

     “Accounts Receivable” shall mean any and all rents, deposits and other sums and charges
(including Guest Ledger Receivables) owing to Seller that are in any way attributable to the
operation of the business at the Hotel, including, without limitation: (a) amounts receivable in
connection with the letting of rooms, use of banquet services and facilities, use of conference
facilities or meeting rooms or the provision of any other service by or on behalf of Seller on the
Real Property; (b) credit card charges, whether or not they have been submitted to the applicable
credit card company; and (c) rents and/or license fees due from Tenants under Leases.

     “Agreement” shall mean this Purchase and Sale Agreement between Seller and Buyer including all
schedules, exhibits and other attachments hereto, and documents incorporated herein by reference.

     “Bond Documents” is defined in Paragraph 8.1F of this Agreement.

     “Bonds” is defined in Paragraph 8.1F of this Agreement.

     “Bookings” shall mean all contracts or reservations for the use of guest rooms, banquet
facilities, meeting rooms, and/or conference or convention facilities at the Hotel.

     “Broker” shall mean Jones Lang LaSalle Americas, Inc., which Broker has been retained by
Seller; Buyer has not retained any broker or finder in this Transaction.

     “Business Day” shall mean Monday through Friday excluding holidays recognized by the state
government of the State in which the Property is located.

     “Buyer” shall mean the buyer referenced in the first paragraph of this Agreement.

     “Buyer’s Diligence Reports” shall mean the results of any examinations, inspections,
investigations, tests, studies, analyses, appraisals, evaluations and/or investigations prepared by
or for or otherwise obtained by Buyer, Buyer’s attorneys or Buyer’s officers John Bortz, Tom Fisher
or Ray Martz in connection with Buyer’s Due Diligence.

     “Buyer’s Representatives” shall mean Buyer’s officers, employees, agents, advisors,
representatives, attorneys, accountants, consultants, lenders, investors, contractors, architects
and engineers.

     “Cause” shall mean (i) commission of a felony or crime involving moral turpitude, (ii)
misappropriation or intentional destruction of company property, (iii) continuing failure or

Purchase Agreement

Property: IC Buckhead, Atlanta GA

 

 

refusal to obey a reasonable and lawful company directive after receiving a written warning,
(iv) causing physical harm, or threatening to cause physical harm to another employee or a hotel
guest, (v) violation of any Law or company policy prohibiting employment discrimination or
harassment with respect to another employee or an applicant for employment, or (vi) violation of
any Law applicable to the operation of the hotel at which the employee in question is employed.

     “Closing” shall mean the consummation and closing of the Transaction.

     “Closing Agent” shall mean the Title Company or such other party as is selected by Buyer and
Seller to fund the Closing in escrow.

     “Closing Date” shall mean the date on which the Closing occurs, which shall be on or before
the Closing Deadline as defined in Paragraph 1.1 of this Agreement.

     “Closing Deadline” is defined in Paragraph 1.1 of this Agreement.

     “Closing Documents” shall mean the documents and instruments delivered by Buyer and Seller, in
order to consummate the Transaction.

     “Closing Notice” is defined in Paragraph 1.1 of this Agreement.

     “Closing Proration Time” shall mean (a) if the Purchase Price is received by Seller (or by the
Closing Agent, along with authorization from Buyer to release such proceeds) prior to 1:00 P.M.
local Atlanta, Georgia time on the Closing Date, as of 11:59 P.M. local Atlanta, Georgia time on
the day prior to the Closing Date, in which event the day of Closing shall belong to Buyer, and (b)
if the Purchase Price is received by Seller (or by the Closing Agent) at or after 1:00 P.M. local
Atlanta, Georgia time on the Closing Date, 11:59 P.M. local Atlanta, Georgia time on the Closing
Date, in which event the day of Closing shall belong to Seller, and, either at Closing or upon
reproration after Closing, Buyer and Seller shall reprorate as of such new Closing Proration Time.

     “Closing Tax Year” shall mean the Tax Year in which the Closing Date occurs.

     “Condemnation Proceeding” shall mean any proceeding in condemnation, eminent domain or any
written request for a conveyance in lieu thereof, or any notice that such proceedings have been or
will be commenced against any portion of the Property.

     “Confidential Materials” shall mean any books, computer software, databases, records or files
(whether in a electronic or printed format) that consist of or contain any of the following:
appraisals; budgets; strategic plans for the Property; internal analyses; information regarding the
marketing of the Property for sale; submissions relating to obtaining internal authorization for
the sale of the Property by Seller or any direct or indirect owner of any beneficial interest in
Seller; attorney and accountant work product; attorney-client privileged documents; internal
correspondence of Seller, any direct or indirect owner of any beneficial interest in Seller, or any
of their respective affiliates and correspondence between or among such parties; or other
information or materials in the possession or control of Seller, Seller’s property manager or any

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

direct or indirect owner of any beneficial interest in Seller which such party deems
proprietary or confidential.

     “Consumables” is defined in Paragraph 7.1F of this Agreement.

     “Contracts” shall mean all contracts respecting leasing, management, maintenance or operation
of the Real Property, including, but not limited to, equipment leases, agreements with respect to
building systems, service, construction, and maintenance contracts, but specifically excluding
Bookings and any license to Seller of computer hardware, software, or system(s). A summary list of
the Contracts (including identity of contract parties and type of service) is shown on Exhibit
N and made a part hereof.

     “deemed to know” (or “deemed knowledge” or words of similar import) shall have the following
meaning: Buyer shall be “deemed to know” of the existence of a fact or circumstance to the extent
that: (i) Buyer’s attorneys or its officers John Bortz, Tom Fisher or Ray Martz knows of such fact
or circumstance, or (ii) such fact or circumstance is disclosed by this Agreement, any documents
executed by Seller for the benefit of Buyer in connection with the Closing, the Documents, any
estoppel certificate executed by any tenant of the Property and delivered to Buyer, or any Buyer’s
Diligence Reports. Without limiting the foregoing, Buyer shall be “deemed to know” that any
Seller’s Warranty is untrue, inaccurate or incorrect to the extent that any of the aforesaid items
contains information, or Buyer’s officers John Bortz, Tom Fisher or Ray Martz have knowledge of
information, which is inconsistent with such Seller’s Warranty.

     “Deposit” shall mean the sum of Two Million and No/100 Dollars ($2,000,000.00), consisting of,
collectively, the Initial Deposit of Five Hundred Thousand and No/100 Dollars ($500,000.00), and
the Secondary Deposit of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00), and
any interest thereon.

     “Development Authority” is defined in Paragraph 2 of this Agreement.

     “Documents” shall mean the documents and instruments applicable to the Property or any portion
thereof that Seller or any of the other Seller Parties deliver or make available to Buyer or Buyer’
Representatives prior to Closing or which are otherwise obtained by Buyer or Buyer’s
Representatives prior to Closing, including, but not limited to, the Title Commitment, the Survey,
the Title Documents, the Bond Documents and the Property Documents.

     “Due Diligence” shall mean the investigation by Buyer and Buyer’s Representatives of the
feasibility and desirability of purchasing the Property, including all audits, surveys,
examinations, inspections, investigations, tests, studies, analyses, appraisals, evaluations,
investigations and verifications with respect to the Property, the Documents, title matters,
applicable land use and zoning Laws and other Laws applicable to the Property, the physical
condition of the Property, the economic status of the Property, and other information and documents
regarding the Property, including, but not limited to, investigations of the legal and physical
status of the Property by such consultants, engineers, architects and/or entomologists as Buyer
requires, tests and assessments with respect to Environmental Matters, soil tests, asbestos
analysis, mold

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Property: IC Buckhead, Atlanta GA

 

 

analysis, structural review, examination of title to the Property, preparation of a Survey of
the Land, and verification of all information made or to be made available to Buyer with respect to
Property.

     “Due Diligence Deadline” is defined in Paragraph 1.1 of this Agreement.

     “Effective Date” shall mean the date of this Agreement referenced in the first paragraph of
this Agreement.

     “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 Hotel Employees and/or their spouses, dependents or other qualified beneficiaries.

     “Escrow Deposits” shall mean the Deposit, and any other sums (including, without limitation,
any interest earned thereon) which the parties agree shall be held in escrow hereunder.

     “Excluded Property” shall mean (i) any right or interest to any liquor license rights and
intellectual property rights referenced in Section 5 hereto, (ii) any tax refunds for any period
prior to Closing, (iii) any corporate minute books and records or files and records associated with
the Seller entity, (iv) insurance claims for any casualty or Condemnation Proceeding that occurred
prior to Closing, except as otherwise set forth in this Agreement, (v) Accounts Receivable; (vi)
all cash, cash equivalents, working capital, reserve and other hotel accounts, accounts payable;
(vii) any right to link to or utilize Seller’s affiliates’ reservation system; (viii) any
employment files; (ix) any proprietary information or systems or intellectual property of Seller or
any affiliate of Seller generally used by Seller to operate hotels, including without limitation,
operational models and systems, the right to use of the “InterContinental” mark and marks
controlled by Seller’s affiliates; (x) the rights to the “XO Bar” name,; (xi) any intellectual
property, computer hardware, software, or system that is licensed to Seller and not freely
assignable to Buyer without additional consent of a third party or cost; and (xii) any property
owned by third parties, such as tenants, guests or equipment lessors.

     “Guaranty” shall mean that certain Guaranty Agreement between Seller and SunTrust Bank, as
Trustee, dated as of December 1, 2002.

     “Guest Ledger Receivables” shall mean amounts, including, without limitation, room and service
charges, accrued to (i) the accounts of guests occupying rooms at the Hotel as of the Closing
Proration Time or (ii) group, conference or banquet customers of Seller at the Hotel as of the
Closing Proration Time.

     “Hazardous Materials” shall mean any substance, chemical, waste or material that is or becomes
regulated by any federal, state or local governmental authority because of its toxicity,
infectiousness, radioactivity, explosiveness, ignitability, corrosiveness or reactivity,
including, without limitation, asbestos or any substance containing more than 0.1 percent asbestos,
the group of compounds known as polychlorinated biphenyls, flammable explosives, oil, petroleum or
any refined petroleum product.

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Property: IC Buckhead, Atlanta GA

 

 

     “Hotel” shall mean the hotel located on the Land and commonly known as the
InterContinental Buckhead Hotel located at 3315 Peachtree Road, NE, Atlanta, Georgia 30326.

     “Hotel Employees” shall mean all employees who are employed by Seller at or solely in
connection with the Hotel immediately before the Effective Date (whether such employees are
actively employed or on a leave of absence due to disability or any other reason).

     “Hotel Inventories” shall mean all inventory and operating supplies used in the use, operation
or maintenance of the Hotel as commonly accepted in the hospitality industry, including, without
limitation, all linens, bedding, tableware, glassware and silver.

     “Initial Deposit” shall mean the sum of Five Hundred Thousand and No/100 Dollars
($500,000.00), to the extent the same is deposited by Buyer in accordance with the terms of
Paragraph 3.1 hereof, together with any interest earned thereon.

     “Land” shall mean that certain tract or parcel of land, more particularly described on
Exhibit A.

     “Law” shall mean any federal, state or local law, statute, ordinance, code, order, decrees, or
other governmental rule, regulation or requirement, including common law.

     “Leases” shall mean all leases, rental agreements and other occupancy agreements for the use
or occupancy of any portion of the Property, if any, together with all amendments to, modifications
of, renewals and extensions thereof, and all Tenant Deposits.

     “Lien” shall mean any mortgage, deed of trust, security deed, lien, judgment, pledge,
conditional sales contract, security interest, past-due taxes, past-due assessments, contractor’s
lien, materialmen’s lien, judgment or similar encumbrance against the Property of a monetary
nature.

     “Liabilities” shall mean any and all direct or indirect damages, demands, claims, payments,
problems, conditions, obligations, actions or causes of action, assessments, losses, liabilities,
costs and expenses of any kind or nature whatsoever, including, without limitation, penalties,
interest on any amount payable to a third party, lost income and profits, and any legal or other
expenses (including, without limitation, reasonable attorneys’ fees and expenses) reasonably
incurred in connection with investigating or defending any claims or actions, whether or not
resulting in any liability.

     “Loan Commitment” is defined in Paragraph 4.4 of this Agreement.

     “Management Agreement” shall mean that certain agreement for management services between Buyer
and Seller’s affiliate, the exact form of which shall be executed in accordance with the terms of
Paragraph 16 hereof.

     “Manager” shall have the meaning set forth in the Management Agreement.

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Property: IC Buckhead, Atlanta GA

 

 

     “Master Lease” is defined in Paragraph 2 of this Agreement.

     “Other Interests” shall mean the following other interests of Seller in and to the Real
Property, Leases, Contracts, or Personal Property, or pertaining thereto: (a) to the extent that
the same are in effect as of the Closing Date, any licenses (but excluding any franchise license
rights), permits and other written authorizations necessary for the use, operation or ownership of
the Real Property, (b) any guaranties and warranties in effect with respect to any portion of the
Real Property or the Personal Property as of the Closing Date; and (c) any sales and marketing
materials benefiting the Property, provided that they are not Confidential Materials and Excluded
Property.

     “Permitted Title Exceptions” shall mean, subject to Buyer’s rights to review and make
objection to the status of title and survey as set forth in this Agreement, and the right of Buyer
to Terminate this Agreement pursuant to Paragraph 4.4 if the Due Diligence is not satisfactory, the
following: (a) the Leases and any new Leases entered into between the Effective Date and the
Closing Date in accordance with the terms of this Agreement; (b) all real estate taxes and
assessments not yet due and payable as of the Closing Date; (c) local, state and federal (if
applicable) zoning and building Laws; (d) the Record Exceptions disclosed by the Title Commitment;
(e) the state of facts disclosed by a current Survey of the Land obtained by Buyer; and (f) any
other matters approved as Permitted Title Exceptions in writing by Buyer prior to Closing or deemed
approved as Permitted Title Exceptions pursuant to this Agreement.

     “Personal Property” shall mean all tangible personal property owned by Seller and used in the
operation of the Property, including (a) all Property Documents; (b) all keys and combinations to
all doors, cabinets, safes, enclosures and other locking items or areas on or about the
Improvements; (c) the food and beverage inventory of the Hotel; and (d) “Inventories”, as such term
is defined in the Uniform System of Accounts, at normal operating levels, which Inventories include
all china, glassware, linens, uniforms, works of art, materials and supplies, all fuel stored on
site, an all inventory (at par levels), if any, held for sale in the Property’s gift shops or other
retail outlets to the extent the retail outlets are not operated by third-party tenants, all
merchandise, foot and beverages held for sale in connection with the operation of the Property at
normal operating levels to the extent such food and beverage outlets are not operated by
third-party tenants under a lease agreement; (e) all computers, computer equipment and manuals, and
computer software, programs and databases; but with regard to all of the foregoing specifically
excluding any Confidential Materials and Excluded Property.

     “Project Name” shall mean InterContinental Hotel Buckhead.

     “Property” shall mean the Real Property, the Leases, the Contracts, the Personal Property and
the Other Interests, but specifically excluding the Confidential Materials and the Excluded
Property.

     “Property Documents” shall mean all books, records and files of Seller and of the management
agent for the Property related to the Property, other than those books, records or files containing
Confidential Materials or which constitute Excluded Property.

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     “Purchase Price” is defined in the Recitals to this Agreement. The Purchase Price shall
exclude all Hotel cash, cash equivalents, working capital, reserve and other hotel accounts,
accounts payable and Accounts Receivable.

     “Real Property” shall mean Seller’s interest in the Land, including, without limitation,
(a) the Hotel and any other buildings located on the Land and all other improvements, (b) all
easements appurtenant to the Land and other easements, grants of right, licenses, privileges or
other agreements for the benefit of, belonging to or appurtenant to the Land whether or not situate
upon the Land, including, without limitation, signage rights and parking rights or agreements, all
whether or not specifically referenced on Exhibit A, (c) all mineral, oil and gas rights,
riparian rights, water rights, sewer rights and other utility rights allocated to the Land, (d) all
right, title and interest, if any, of the owner of the Land in and to any and all strips and gores
of land located on or adjacent to the Land, and (e) all right, title and interest of the owner of
the Land in and to any roads, streets and ways, public or private, open or proposed, in front of or
adjoining all or any part of the Land and serving the Land.

     “Record Exceptions” shall mean all instruments recorded in the real estate records of the
County in which the Land is located which affect the status of title to the Real Property.

     “Reimbursable Lease Expenses” shall mean, collectively, any and all costs, expenses and fees
paid by Seller prior to Closing or costs, expenses and fees incurred by Seller prior to Closing
arising out of or in connection with (a) any extensions, renewals or expansions under any Lease
exercised or granted between the Effective Date and the Closing Date, and (b) any Lease entered
into between the Effective Date and the Closing Date. Reimbursable Lease Expenses shall include,
without limitation, (i) brokerage commissions and fees to effect any such leasing transaction,
(ii) expenses incurred for repairs, improvements, equipment, painting, decorating, partitioning and
other items to satisfy the tenant’s requirements with regard to such leasing transaction,
(iii) legal fees for services in connection with the preparation of documents and other services
rendered in connection with the effectuation of the leasing transaction, (iv) if there are any rent
concessions covering any period that the tenant has the right to be in possession of the demised
space, the rents that would have accrued during the period of such concession prior to the Closing
Date as if such concession were amortized over (A) with respect to any extension or renewal, the
term of such extension or renewal, (B) with respect to any expansion, that portion of the term
remaining under the subject Lease after the date of any expansion, or (C) with respect to any new
Lease, the entire initial term of any such new Lease, and (v) expenses incurred for the purpose of
satisfying or terminating the obligations of a tenant under a new Lease to the landlord under
another lease (whether or not such other lease covers space in the Property).

     “Remove” with respect to any exception to title shall mean that Seller causes the Title
Company to remove or affirmatively insure over the same as an exception to the Title Policy,
without any additional cost to Buyer, whether such removal or insurance is made available in
consideration of payment, bonding, indemnity of Seller or otherwise.

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Property: IC Buckhead, Atlanta GA

 

 

     “Rent Roll” shall mean the rent roll set forth on Exhibit M, and any future rent rolls
delivered by Seller pursuant to this Agreement, each of which shall show the categories of
information described on Exhibit M.

     “Rental Payments” shall mean all payments received by on or behalf of Seller from Tenants or
with respect to the Leases or with respect to any other use or occupancy of the Property for items
such as minimum or base rent, additional rent, percentage rent, termination or cancellation
charges, reimbursement for real estate taxes, utilities, parking fees, operating and maintenance
expenses and insurance, as well as any other reimbursements or charges received thereunder.

     “Representation Exception Schedule” shall mean the exceptions to the representations and
warranties of Seller, if any, as disclosed to Buyer in accordance with Section 6.2(J) hereto.

     “Required Removal Items” shall mean, collectively, any Title Objections to the extent (and
only to the extent) that the same (a) have not been caused by Buyer or any Buyer’s Representatives,
and (b) are either: (i) Liens evidencing monetary encumbrances (other than liens for non-delinquent
general real estate taxes or assessments) which can be Removed by payment of liquidated amounts,
but only if such Liens have been created by written instrument signed by Seller or assumed by
written instrument signed by Seller and provided that in no event shall Seller be required to
Remove any such Lien which is not related to the operation of the Property by any method other than
indemnity of Seller in favor of the Title Company (for example, unrelated items would include a
judgment against such party in connection with its other operations; whereas a mechanic’s lien for
work on the Property pursuant to a contract entered into by Seller would be related to Property
operations), or (ii) liens or encumbrances (including, but not limited to, Monetary Liens) created
by Seller after the Effective Date in violation of this Agreement.

     “ROFO Agreement” shall mean that certain Right of First Offer affecting the Real Property
dated January 20, 2006 by and between IHC Buckhead LLC and Hospitality Properties Trust a copy of
which Buyer is deemed to have received.

     “Secondary Deposit” shall mean the sum of One Million Five Hundred Thousand and No/100 Dollars
($1,500,000.00), to the extent the same is deposited by Buyer in accordance with the terms of
Paragraph 3.1 hereof, together with any interest earned thereon.

     “Seller” shall mean the seller referenced in the first paragraph of this Agreement.

     “Seller Indemnitees” is defined is Paragraph 18.3 of this Agreement.

     “Seller Parties” shall mean and include, collectively, (a) Seller; (b) its counsel; (c) any
Broker retained by Seller; (d) Seller’s property manager; (e) any direct or indirect owner of any
beneficial interest in Seller; (f) any officer, director, employee, shareholder or agent of Seller,
its counsel, any Broker retained by Seller, Seller’s property manager or any direct or indirect
owner of any beneficial interest in Seller; (g) Seller’s lenders, consultants, architects,
attorneys,

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

accountants, engineers and other professionals, and (h) any other entity or individual affiliated
or related in any way to any of the foregoing.

     “Seller Estoppels” shall mean lease estoppel certificates in the form of Exhibit R,
executed by Seller. Upon receipt by Buyer of a post-closing Tenant Estoppel from a Seller Estoppel
Tenant, any corresponding Seller Estoppel with respect to the Seller Estoppel Tenant referenced in
the post-closing Tenant Estoppel shall thereupon and without further act of either party hereto
become of no further force or effect to the to the extent that the Tenant Estoppel confirms in all
material respects the information contained in the applicable Seller Estoppel. Except as
aforesaid, the statements contained in the Seller Estoppel with respect to the respective Leases
referenced therein shall survive the Closing for the benefit of Buyer for the remainder of the term
(including renewals or extensions at the option of the Tenant) of the Lease, but in no event beyond
the date of any subsequent voluntary modification entered into by Buyer or its successors or
assigns with respect to such Lease.

     “Seller’s Knowledge” or words of similar import shall refer only to the actual knowledge of
Robert J. Chitty, and shall not be construed to refer to the knowledge of any other Seller Party,
or to impose or have imposed upon such parties any duty to investigate the matters to which such
knowledge, or the absence thereof, pertains, including, but not limited to, the contents of the
files, documents and materials made available to or disclosed to Buyer or the contents of files
maintained by such parties. There shall be no personal liability on the part of such parties
arising out of any of the Seller’s Warranties.

     “Seller’s Liability Limit” shall mean Five Million and no/100 Dollars ($5,000,000.00).

     “Seller’s possession”, “in the Seller’s possession” or words of similar import shall be deemed
to mean to the extent the material or other item referred to by such phrase is located at the Hotel
or in Seller’s corporate headquarters.

     “Seller’s Representatives” shall mean Seller’s officers, employees, agents, advisors,
representatives, attorneys, accountants, consultants, investors, contractors, architects and
engineers.

     “Seller’s Warranties” shall mean Seller’s representations and warranties set forth in
Section 8.1 and if applicable, the limited warranty of title set forth in the deed executed by
Seller in connection with Closing, as the same may be deemed modified or waived by Buyer pursuant
to this Agreement.

     “Survey” shall mean a survey of the Land obtained by Buyer.

     “Tax Year” shall mean the year period commencing on January 1 of each calendar year and ending
on December 31 of each calendar year.

     “Tenant” shall mean a tenant under a Lease; collectively, all tenants under the Leases are
referred to as the “Tenants”.

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

     “Tenant Deposits” shall mean all prepaid rents, advance rentals, security deposits and other
deposits made with respect to the Leases.

     “Tenant Estoppel” shall mean each estoppel certificate executed by a Tenant, which estoppel
certificates shall be substantially in the form set forth on Exhibit S.

     “Terminate” shall mean the termination of this Agreement, by Buyer or Seller as applicable as
set forth in this Agreement, in which event thereafter neither party hereto shall have any further
rights, obligations or liabilities hereunder except to the extent that any right, obligation or
liability set forth herein expressly survives termination of this Agreement.

     “Title Commitment” shall mean the Commitment of the Title Company to issue the Title Policy.

     “Title Company” shall mean the Baltimore office of Chicago Title Insurance Company, which will
coordinate the Title Commitment through the Atlanta office of Fidelity National Title Insurance
Company, located at, 200 Galleria Parkway, SE, Suite 2060, Atlanta, GA 30339; Attention Shawn
Tidwell — https://www.fntic.com/ntsatlanta].

     “Title Objections” shall mean any defects in title (including any Record Exceptions which are
not acceptable to Buyer) or survey (including the description of the Land) which may be revealed by
Buyer’s examinations thereof to which Buyer timely objects in accordance with the terms of
Paragraph 4.3.

     “Title Policy” shall mean the ALTA Owner’s Policy of Title Insurance (or such other comparable
form of title insurance policy as is available in the jurisdiction in which the Property is
located) issued by the Title Company in the amount of the Purchase Price and in the form of the
Title Commitment, and containing, unless prohibited by applicable statutes or regulations, such
endorsements as Buyer may obtain from the Title Company in the Title Commitment prior to the Due
Diligence Deadline. Buyer shall be entitled to request that the Title Company provide such
endorsements (or amendments) to the Title Policy as Buyer may reasonably require, provided that
(a) such endorsements (or amendments) shall be at no cost to, and shall impose no additional
liability on, Seller, (b) Buyer’s obligations under this Agreement shall not be conditioned upon
Buyer’s ability to obtain such endorsements and, if Buyer is unable to obtain such endorsements,
Buyer shall nevertheless be obligated to proceed to close the Transaction without reduction of or
set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of Buyer’s
request.

     “Transaction” shall mean the purchase and sale transaction contemplated by this Agreement.

     “Uniform System of Accounts” shall mean the Uniform System of Accounts for the Lodging
Industry, prepared by The Hotel Association of New York City, Inc., in effect as of the date
hereof.

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

EXHIBIT A

Legal description of Land

All that tract or parcel of land lying and being in Land Lots 45, 46, 61 and 62 of the
17th District, Fulton County, Georgia, and being more particularly described as follows:

Beginning at a T-bar found at the southeast intersection of Highland Drive and Peachtree Road;
thence along the right of way of Peachtree Road along a curve to the left, an arc distance of
333.31 feet, said curve having a radius of 643.91 feet and being subtended by a chord of 329.60
feet, at North 31 degrees 30 minutes 42 seconds East to a 5/8” rebar set; thence North 16 degrees
25 minutes 07 seconds East, a distance of 31.87 feet to a 3/4” open top pipe found; thence South 74
degrees 57 minutes 58 seconds East, a distance of 356.81 feet to a nail set; thence South 07
degrees 05 minutes 55 seconds East, a distance of 37.53 feet to a nail set; thence South 08 degrees
47 minutes 56 seconds East, a distance of 91.13 feet to a 5/8” rebar set; thence South 48 degrees
35 minutes 11 seconds West, a distance of 6.26 feet to a 5/8” rebar set; thence North 85 degrees 20
minutes 49 seconds West, a distance of 51.29 feet to a 5/8” rebar set; thence South 21 degrees 20
minutes 08 seconds West, a distance of 5.39 feet to a 3/4” open top pipe found; thence South 21
degrees 39 minutes 31 seconds West, a distance of 329.32 feet to a point on the northern right of
way of Highland Drive; thence along said right of way along a curve to the right, an arc distance
of 119.98 feet, said curve having a radius of 272.38 feet and being subtended by a chord of 119.01
feet, at North 69 degrees 22 minutes 39 seconds West to a 3/4” to a point; thence South 59 degrees
53 minutes 59 seconds West, a distance of 27.39 feet to a point; thence North 54 degrees 58 minutes
23 seconds West, a distance of 294.63 feet to a point; thence North 26 degrees 55 minutes 03
seconds East, a distance of 24.76 feet to a T-bar found; said T-bar being the POINT OF BEGINNING.

TOGETHER WITH:

TRACT 2 (SOUTHWEST HALF OF HIGHLAND DRIVE)

ALL THAT TRACT OR PARCEL OF LAND lying and being in Land Lots 46 and 61 of the 17th
District, City of Atlanta, Fulton County, Georgia and being more particularly described as follows:

TO FIND THE POINT OF BEGINNING, COMMENCE at a T-bar found at the intersection of the southeasterly
right-of-way of Peachtree Road (variable right-of-way) with the northeasterly right-of-way of
Highland Drive; thence southwesterly along the southeasterly right-of-way of Peachtree Road South
26 degrees 55 minutes 03 seconds West a distance of 24.76 feet to a point, said point being the
POINT OF BEGINNING. From the POINT OF BEGINNING as thus established, thence South 54 degrees 58
minutes 23 seconds East a distance of 294.63 feet to a point, thence southwesterly across said
Highland Drive South 59 degrees 53 minutes 59 seconds West a distance of 27.24 feet to a point;
thence South 46 degrees 19 minutes 01 seconds West a distance of 10.21 feet to a point located at
the intersection of the southwesterly right-of-way line of Highland Drive and the northerly side of
a 10-foot alley; thence northwesterly along the southwesterly right-of-way line of Highland Drive
North 54 degrees 55 minutes 52 seconds West a distance of 281.71 feet to a point located on the
southeasterly right-of-way line of Peachtree

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

Road; thence northeasterly along the southeasterly right-of-way line of Peachtree Road North 56
degrees 57 minutes 47 seconds East a distance of 10.78 feet to a point; thence continuing along
said right-of-way line North 26 degrees 55 minutes 03 seconds East a distance of 24.76 feet to a
point, said point being the POINT OF BEGINNING. Said property containing 9,876 square feet (0.23
acres).

TOGETHER WITH:

All that tract or parcel of land being and lying in Land Lot 46 of the 17th District,
City of Atlanta of Fulton County, Georgia. Said tract being part of Lot 4 as shown on plat titled
“Re-Subdivision McKenzie Trust Co. Property” recorded at Plat Book 6, page 150, Fulton County
public records and being more particularly described as follows:

Commencing at the intersection of the east right of way of Peachtree Road with the northeast right
of way of Highland Drive; thence South 55 degrees 00 minutes 45 seconds East along the right of way
of Highland Drive a distance of 299.21 feet to a point; thence continuing along said right of way
along a curve to the left an arc distance of 70.42 feet, said curve having a radius of 272.38 feet
and being subtended by a chord of 70.23 feet at South 61 degrees 58 minutes 12 seconds East to a
point, said point being the POINT OF BEGINNING; thence North 25 degrees 23 minutes 15 seconds East,
leaving said right of way a distance of 198.74 feet to a point; thence South 68 degrees 20 minutes
29 seconds East a distance of 46.45 feet to a point; thence South 21 degrees 39 minutes 31 seconds
West a distance of 190.67 feet to a point on the north right of way of Highland Drive; thence along
said right of way along a curve to the right an arc distance of 59.99 feet, said curve having a
radius of 272.38 feet and being subtended by a chord of 59.87 feet at North 75 degrees 41 minutes
12 seconds West to a point and the POINT OF BEGINNING.

Said tract containing approximately 10,333 square feet or 0.24 acres.

LESS AND EXCEPT:

All that tract or parcel of land being and lying in Land Lots 46 and 61 of the 17th
District, City of Atlanta of Fulton County, Georgia. Said tract being part of Lot 3 and a portion
of a 10 foot alley as shown on plat titled “Re-Subdivision McKenzie Trust Co. Property” recorded at
Plat Book 6, page 150, Fulton County public records and being more particularly described as
follows:

Commencing at the intersection of the east right of way of Peachtree Road with the northeast right
of way of Highland Drive; thence South 55 degrees 00 minutes 45 seconds East along the northeast
right of way of Highland Drive a distance of 299.21 feet to a point; thence continuing along said
right of way along a curve to the left an arc distance of 5.42 feet, said curve having a radius of
272.8 feet and subtended by a chord of 5.42 feet at South 55 degrees 10 minutes 29 seconds East to
a point, said point being the POINT OF BEGINNING; thence North 29 degrees 30 minutes 00 seconds
East, leaving said right of way a distance of 103.32 feet to a point; thence South 36 degrees 36
minutes 45 seconds East a distance of 57.62 feet to a point; thence South 25 degrees 23 minutes 15
seconds West a distance of 110.42 feet to a point on the north right of way

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

of Highland Drive; thence along a curve to the right an arc distance of 65.00 feet, said curve
having a radius of 272.38 feet and being subtended by a chord of 64.85 feet at North 62 degrees 32
minutes 25 seconds West to a point and the POINT OF BEGINNING.

Said tract containing approximately 6,601 square feet or 0.15 acres.

FURTHER LESS AND EXCEPT:

	 	 	 

	PROJECT NO.:
	 	MSL-0004-00(689) Fulton
	P.I. NO.:
	 	0004689
	PARCEL NO.:
	 	22A
	REQUIRED R/W:
	 	0.066 acres
	DATE OF R/W PLANS:
	 	April 12, 2004
	REVISION DATE:
	 	August 31, 2004

All that tract or parcel of land lying and being in Land Lot 62 of the 17th Land
District of Fulton County, Georgia, being more particularly described as follows:

BEGINNING at a point 93.46 feet right of and opposite Station 121+82.01 on the construction
centerline of Peachtree Road on Georgia Highway Project No. MSL-0004-00(689), Running

Thence S 30-30-44 W for a distance of 54.02 feet to a point.

Thence N 59-25-17 W for a distance of 30.00 feet to a point.

Thence N 59-25-17 W for a distance of 31.92 feet to a point.

Thence N 52-28-22 E for a distance of 19.74 feet to a point.

Thence N 43-35-49 E for a distance of 36.82 feet to a point.

Thence S 59-13-15 E for a distance of 46.20 feet back to the point of BEGINNING.

FURTHER LESS AND EXCEPT:

	 	 	 

	PROJECT NO.:
	 	MSL-0004-00(689) Fulton
	P.I. NO.:
	 	0004689
	REQUIRED R/W:
	 	0.054 acres
	PARCEL NO.:
	 	22
	DATE OF R/W PLANS:
	 	April 12, 2004
	REVISION DATE:
	 	August 31, 2004

All that tract or parcel of land lying and being in Land Lot 62 of the 17th Land
District of Fulton County, Georgia, being more particularly described as follows:

BEGINNING at a point 93.46 feet right of and opposite Station 121+82.01 on the construction
centerline of Peachtree Road on Georgia Highway Project No. MSL-0004-00(689), Running
Thence N 59-13-15 W for a distance of 46.20 feet to a point.

Thence northeasterly 265.149 feet along the arc of a curve to the left (said curve having a radius
of 650.000 feet and a chord distance of 263.314 feet on a bearing of N 30-19-06 E) to a point

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

51.88 feet right of and opposite Station 124+19.56 on said construction centerline of Peachtree
Road.

Thence S 88-55-23 E for a distance of 5.34 feet to a point.

Thence southwesterly 241.951 feet along the arc of a curve to the right (said curve having a radius
of 657.000 feet and a chord distance of 240.586 feet on a bearing of S 28-12-52 W) to a point 57.00
feet right of and opposite Station 122+00.00 on said construction centerline of Peachtree Road.

Thence S 21-20-13 E for a distance of 41.70 feet back to the point of BEGINNING.

FURTHER LESS AND EXCEPT:

	 	 	 

	PROJECT NO.:
	 	MSL-0004-00(689) Fulton
	P.I. NO.:
	 	0004689
	REQUIRED R/W:
	 	0.011 acres
	PARCEL NO.:
	 	24
	DATE OF R/W PLANS:
	 	April 12, 2004
	REVISION DATE:
	 	August 31, 2004

All that tract or parcel of land lying and being in Land Lot 62 of the 17th Land
District of Fulton County, Georgia, being more particularly described as follows:

BEGINNING at a point 51.26 feet right of and opposite Station 125+15.79 on the construction
centerline of Peachtree Road on Georgia Highway Project No. MSL-0004-00(689). Running
Thence S 79-11-22 E for a distance of 5.74 feet to a point.

Thence S 13-57-36 W for a distance of 56.36 feet to a point.

Thence southwesterly 42.478 feet along the arc of a curve to the right (said curve having a radius
of 657.00 feet and a chord distance of 42.471 feet on a bearing of S 15-48-44 W) to a point 57.00
feet right of and opposite Station 124+20.96 on said construction centerline of Peachtree Road.

Thence N 88-55-23 W for a distance of 5.34 feet to a point.

Thence northeasterly 68.131 feet along the arc of a curve to the left (said curve having a radius
of 650.000 feet and a chord distance of 68.100 feet on a beating of N 15-29-13 E) to a point 52.23
feet right of and opposite Station 124+84.19 on said construction centerline of Peachtree Road.

Thence N 12-12-06 E for a distance of 31.62 feet back to the point of BEGINNING.

TOGETHER WITH rights and benefits pursuant to and created by the following instruments:

	(A)	 	Grant of Easements and Indemnity Agreement by and between Ferra Sabooni and IHC Buckhead,
LLC, dated January 5, 2004, filed February 3, 2004 and recorded in Deed Book 36986, Page 508,
records of the Superior Court of Fulton County, Georgia; as amended and restated by Amended
and Restated Grant of Easements and Indemnity Agreement by and between Ferra Sabooni,
Development Authority of Fulton County and IHC Buckhead LLC, a Georgia limited liability
company, dated September 20, 2004, filed October 4, 2004 and recorded in Deed Book 38546, Page
109, aforesaid records.

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

	(B)	 	Stormwater Drainage Easement Agreement by and between Atlanta Financial Center, LLC, a
Delaware LLC, Development Authority of Fulton County and IHC Buckhead LLC, dated October 1,
2004, filed October 4, 2004 and recorded in Deed Book 38546, Page 122, aforesaid records.

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

Exhibit A-1

General Property Descriptions and Allocation of Purchase Price

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Allocation of	 	 	 	 	 	 	 
	 	 	Purchase Price to	 	 	Allocation of	 	 	Allocation of	 
	 	 	Land (excluding	 	 	Purchase Price to	 	 	Purchase Price to	 
	 	 	improvements)	 	 	Hotel building	 	 	Personal Property	 
	InterContinental
Buckhead Hotel
located at 3315
Peachtree Road, NE,
Atlanta, Georgia
30326
	 	$	25,000,000.00	 	 	$	69,000,000.00	 	 	$	11,000,000.00	 

Affidavit of Seller’s Residence

Property: IC Buckhead, Atlanta GA

 

 

FIRST AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     This First Amendment to Purchase and Sale Agreement (this “First Amendment”) is made
and entered into as of June 11, 2010 by and between IHC Buckhead, LLC, a Georgia limited liability
company (“Seller”), and Orangemen Owner LLC, a Delaware limited liability company
(“Purchaser”) with reference to the following facts:

RECITALS:

     A. Purchaser and Seller have entered into that certain Purchase and Sale Agreement dated as of
May 25, 2010 (the “Agreement”); and

     B. Purchaser and Seller desire to amend and modify the Agreement as set forth below.

     NOW, THEREFORE, for and in consideration of the agreements and obligations hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, Purchaser and Seller agree as follows:

AGREEMENT

1. Capitalized Terms. All capitalized terms not defined in this First Amendment shall have
the meanings ascribed to them in the Agreement.

2. Title and Survey Objections. The first sentence of Section 4.3.A. is hereby
deleted in its entirety and replaced with the following:

“Buyer shall have until 5:00 p.m. Eastern Time on June 18, 2010 to notify Seller in writing
of any Title Objections; any such notice shall be accompanied by the Title Commitment and
Survey and any other materials which evidence or disclose such objections to title.”

3. On-Going Management of Hotel.

     A. The second and third sentences of Section 16 are hereby deleted in their entirety
and replaced with the following:

“Buyer and Seller, each in their respective discretion, shall try to agree on the specific
form of the hotel management agreement on or before June 16, 2010 and, if the parties reach
an agreement, shall manifest such agreement by signing an amendment to this Agreement
attaching such hotel management agreement as Exhibit P to this Agreement. If the
parties have not executed an amendment to this Agreement incorporating the agreed upon form
of hotel management agreement into this Agreement by June 16, 2010, then either party may
terminate this Agreement upon notice to the other party, in which case the Deposit shall be
returned to Buyer, and the parties shall have no further rights or obligations hereunder,
except for those which expressly survive any such termination.”

 

 

     B. The penultimate sentence of Section 16 is hereby deleted in its entirety.

4. Ratification. Except as modified by this First Amendment, the Agreement remains in full
force and effect.

5. Counterparts. This First Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which, taken together, shall constitute one and the
same instrument.

6. Successors and Assigns. This First Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

7. Governing Law. This First Amendment shall be governed by the laws of the State of
Georgia, without regard to its conflict of laws principles.

[Signatures appear on the following page.]

 

 

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

	 	 	 	 	 
	 	SELLER:

IHC BUCKHEAD LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/ Travis D. Ray
 	 
	 	 	Name:  	Travis D. Ray 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

ORANGEMEN OWNER LLC,

Delaware limited liability company

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

 

 

SECOND AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     This Second Amendment to Purchase and Sale Agreement (this “Second Amendment”) is made
and entered into as of June 16, 2010 by and between IHC Buckhead, LLC, a Georgia limited liability
company (“Seller”), and Orangemen Owner LLC, a Delaware limited liability company
(“Purchaser”) with reference to the following facts:

RECITALS:

     A. Purchaser and Seller have entered into that certain Purchase and Sale Agreement dated as of
May 25, 2010 (the “Agreement”); and

     B. Purchaser and Seller desire to amend and modify the Agreement as set forth below.

     NOW, THEREFORE, for and in consideration of the agreements and obligations hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, Purchaser and Seller agree as follows:

AGREEMENT

1. Capitalized Terms. All capitalized terms not defined in this Second Amendment shall
have the meanings ascribed to them in the Agreement.

2. On-Going Management of Hotel.

     The second and third sentences of Section 16 are hereby deleted in their entirety and
replaced with the following:

“Buyer and Seller, each in their respective discretion, shall try to agree on the specific
form of the hotel management agreement on or before June 18, 2010 and, if the parties reach
an agreement, shall manifest such agreement by signing an amendment to this Agreement
attaching such hotel management agreement as Exhibit P to this Agreement. If the
parties have not executed an amendment to this Agreement incorporating the agreed upon form
of hotel management agreement into this Agreement by June 18, 2010, then either party may
terminate this Agreement upon notice to the other party, in which case the Deposit shall be
returned to Buyer, and the parties shall have no further rights or obligations hereunder,
except for those which expressly survive any such termination.”

3. Ratification. Except as modified by this Second Amendment, the Agreement remains in
full force and effect.

4. Counterparts. This Second Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which, taken together, shall constitute one and the
same instrument.

 

 

5. Successors and Assigns. This Second Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

6. Governing Law. This Second Amendment shall be governed by the laws of the State of
Georgia, without regard to its conflict of laws principles.

[Signatures appear on the following page.]

 

 

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

	 	 	 	 	 
	 	SELLER:

IHC BUCKHEAD LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/ Travis D. Ray
 	 
	 	 	Name:  	Travis D. Ray 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

ORANGEMEN OWNER LLC,

Delaware limited liability company

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

 

 

	 	 	 	 	 

THIRD AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     This Third Amendment to Purchase and Sale Agreement (this “Third Amendment”) is made
and entered into as of June 18, 2010 by and between IHC Buckhead, LLC, a Georgia limited liability
company (“Seller”), and Orangemen Owner LLC, a Delaware limited liability company
(“Purchaser”) with reference to the following facts:

RECITALS:

     A. Purchaser and Seller have entered into that certain Purchase and Sale Agreement dated as of
May 25, 2010 (the “Agreement”); and

     B. Purchaser and Seller desire to amend and modify the Agreement as set forth below.

     NOW, THEREFORE, for and in consideration of the agreements and obligations hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, Purchaser and Seller agree as follows:

AGREEMENT

1. Capitalized Terms. All capitalized terms not defined in this Third Amendment shall have
the meanings ascribed to them in the Agreement.

2. On-Going Management of Hotel.

     The second and third sentences of Section 16 are hereby deleted in their entirety and
replaced with the following:

“Buyer and Seller, each in their respective discretion, shall try to agree on the specific
form of the hotel management agreement on or before June 22, 2010 and, if the parties reach
an agreement, shall manifest such agreement by signing an amendment to this Agreement
attaching such hotel management agreement as Exhibit P to this Agreement. If the
parties have not executed an amendment to this Agreement incorporating the agreed upon form
of hotel management agreement into this Agreement by June 22, 2010, then either party may
terminate this Agreement upon notice to the other party, in which case the Deposit shall be
returned to Buyer, and the parties shall have no further rights or obligations hereunder,
except for those which expressly survive any such termination.”

3. Ratification. Except as modified by this Third Amendment, the Agreement remains in full
force and effect.

4. Counterparts. This Third Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which, taken together, shall constitute one and the
same instrument.

 

 

5. Successors and Assigns. This Third Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

6. Governing Law. This Third Amendment shall be governed by the laws of the State of
Georgia, without regard to its conflict of laws principles.

[Signatures appear on the following page.]

 

 

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

	 	 	 	 	 
	 	SELLER:

IHC BUCKHEAD LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/ Travis D. Ray
 	 
	 	 	Name:  	Travis D. Ray 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

ORANGEMEN OWNER LLC,

Delaware limited liability company

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

 

 

	 	 	 	 	 

FOURTH AMENDMENT TO

PURCHASE AND SALE AGREEMENT

     This Fourth Amendment to Purchase and Sale Agreement (this “Fourth Amendment”) is made
and entered into as of June 22, 2010 by and between IHC Buckhead, LLC, a Georgia limited liability
company (“Seller”), and Orangemen Owner LLC, a Delaware limited liability company
(“Purchaser”) with reference to the following facts:

RECITALS:

     A. Purchaser and Seller have entered into that certain Purchase and Sale Agreement dated as of
May 25, 2010, as amended (the “Agreement”); and

     B. Purchaser and Seller desire to amend and modify the Agreement as set forth below.

     NOW, THEREFORE, for and in consideration of the agreements and obligations hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, Purchaser and Seller agree as follows:

AGREEMENT

1. Capitalized Terms. All capitalized terms not defined in this Fourth Amendment shall
have the meanings ascribed to them in the Agreement.

2. Management Agreement. Exhibit P attached hereto is hereby appended as
Exhibit P to the Agreement.

3. Closing Deliveries. At Closing, counterparts of the documents attached as Exhibit
P shall be executed and delivered as part of Buyer’s and Seller’s obligations under
Sections 6.2 and 6.3 of the Agreement. Additionally, Buyer shall provide
incumbency certificates evidencing that the Owner (as defined in the Management Agreement) and
Guarantor (as defined in the Management Agreement) are each authorized to execute the applicable
documentation attached as Exhibit P.

4. Ratification. Except as modified by this Fourth Amendment, the Agreement remains in
full force and effect.

5. Counterparts. This Fourth Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, and all of which, taken together, shall constitute one and the
same instrument.

6. Successors and Assigns. This Fourth Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

7. Governing Law. This Fourth Amendment shall be governed by the laws of the State of
Georgia, without regard to its conflict of laws principles.

 

 

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

	 	 	 	 	 
	 	SELLER:

IHC BUCKHEAD LLC,

a Georgia limited liability company

 	 
	 	By:  	/s/ Travis D. Ray
 	 
	 	 	Name:  	Travis D. Ray 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	PURCHASER:

ORANGEMEN OWNER LLC,

Delaware limited liability company

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

 

 

	 	 	 	 	 

EXHIBIT P

Form of Hotel Management Agreement

(attached)

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